MINNEAPOLIS (June 19, 2007)--FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the third quarter of fiscal 2007 and for the first nine months ended May 26, 2007.
Fiscal 2007 Third Quarter and First Nine Months
Sales for the third quarter of fiscal 2007 were $25.2 million, compared to $32.0 million for the same period in fiscal 2006. The Company’s net loss for the third quarter of fiscal 2007 was $5.6 million, or $0.19 per share, compared to a net loss of $2.4 million, or $0.08 per share, for the third quarter of fiscal 2006.
Sales for the first nine months of fiscal 2007 were $96.3 million, compared to $72.9 million for the same period of fiscal 2006. The Company’s net loss for the first nine months of fiscal 2007 was $8.0 million, or $0.26 per share, as compared to a net loss of $10.4 million, or $0.35 per share for the first nine months of fiscal 2006.
In the first nine months of fiscal 2007, the Company recorded a $4.1 million, or $0.13 per share, asset impairment charge associated with the Company’s investment in m•FSI LTD, a Japanese joint venture. The Company recorded a $500,000, or $0.02 per share, impairment charge related to an investment, for the first nine months of fiscal 2006.
Backlog and deferred revenue was $20.1 million at the end of the third quarter of fiscal 2007, as compared to $48.5 million at the end of the third quarter last year. Orders for the third quarter of fiscal 2007 were $18.7 million, compared to $43.7 million in the third quarter of fiscal 2006.
“Industry conditions, coupled with the timing of FSI customer-specific purchases, continued to impact our financial performance in the third quarter,” said Don Mitchell, FSI chairman and CEO. “We anticipate that these factors will impact FSI for several more quarters; therefore, we are conducting a comprehensive program and cost structure review and expect to take actions in the fourth quarter, focused on lowering our breakeven revenue level and improving our margins,” continued Mitchell.
Balance Sheet
As of the end of the fiscal 2007 third quarter, the Company had approximately $109 million in assets, including $25 million in cash, restricted cash, cash equivalents and marketable securities. The Company had a current ratio of 3.9 to 1.0 and a book value of $2.85 per share at the end of the fiscal 2007 third quarter.
Outlook
The Company expects fourth quarter orders of $18 to $22 million as compared to $18.7 million in the third quarter of fiscal 2007.* Based on backlog and deferred revenue levels at the end of the third quarter and expected fourth quarter orders, the Company expects fourth quarter fiscal 2007 revenues to be approximately $20 to $24 million.* Based upon anticipated gross profit margins and operating expense run rate, the Company expects a net loss of approximately $3.5 to $4.5 million for the fourth quarter.*
Conference Call Details
Investors will have the opportunity to listen to the conference call today at 3:30 p.m. CDT over the Internet. The webcast is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com or by visiting any of the investor sites in CCBN's individual investor portal. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About FSI
FSI International, Inc. is a global supplier of surface conditioning equipment technology and support services for microelectronics manufacturing. Using the Company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray and CryoKinetic technologies, customers are able to achieve their process performance, flexibility and productivity goals. The Company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. FSI maintains a web site at http://www.fsi-intl.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain “forward-looking” statements (*), including, but not limited to: expected orders, revenues, gross margins, operating expense run rate, and net loss for the fourth quarter of fiscal 2007; and expected fourth quarter actions to lower the Company’s breakeven revenue level and to improve margins. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to: the length and extent of industry slowdowns and recoveries; order delays or cancellations; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for the Company’s products and its ability to meet demand; global trade policies; worldwide economic and political stability; the Company’s successful execution of internal performance plans; the cyclical nature of the Company’s business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the level of new orders; timely achievement of product acceptances; the timing and success of current and future product and process development programs; the success of the Company’s distributor in Japan; the success of the Company’s direct distribution organization; and the potential impairment of long-lived assets; as well as other factors listed from time to time in the Company’s SEC reports including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal 2006 and the Company’s quarterly report on Form 10-Q for second quarter of fiscal 2007. The Company assumes no duty to update the information in this press release.