FSI
International (ticker: FSII,
exchange: NASDAQ) News Release
- 10/21/03
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FSI International, Inc. Announces Fourth Quarter
and Fiscal Year 2003 Financial Results
The Company Began Fiscal 2004 with $44 Million in Cash and No Debt After Generating $1.4 Million of Positive Cash Flow in the Fourth Quarter
MINNEAPOLIS (Oct. 21, 2003) -- FSI International, Inc. (Nasdaq:
FSII), a manufacturer of capital equipment for the microelectronics
industry, today reported financial results for the fiscal 2003
fourth quarter and the year ended August 30, 2003.
Fiscal 2003 Results
Fiscal year 2003 sales were $88.8 million, compared to $143.4 million for fiscal
2002. The Company’s 2003 fiscal year net loss was $78.6 million or $2.66
per share (diluted), compared to a net loss of $34.7 million or $1.26 per share
(diluted) for fiscal year 2002.
The Company reported significant non-cash charges during fiscal 2003 and 2002,
including:
Fiscal 2003 Charges
- A $26.0 million or $0.88 per share asset write-down charge associated with winding down the Microlithography Division.
- A $2.8 million or $0.09 per share early termination fee charge as the Company
transitioned from using Metron Technology for distribution of its products in
Europe and the Asia-Pacific region to a direct model in these regions.
- A $10.2 million or $0.35 per share impairment charge related to the Company’s investment in Metron Technology.
Fiscal 2002 Charges
- A $5.4 million or $0.18 per share charge associated with the write-off of goodwill relating to the 1999 acquisition of YieldUP.
Fourth Quarter Fiscal 2003 Results
Sales for the fiscal 2003 fourth quarter were $22.2 million, compared to $30.0
million for the same period of fiscal 2002. The Company’s net
loss for the fourth quarter of fiscal 2003 was $1.8 million
or $0.06 per share (diluted), as compared to a net loss of $14.5
million or $0.50 per share (diluted) in the fourth quarter of
fiscal 2002, including the $5.4 million or $0.18 per share non-cash
write-off of goodwill associated with the YieldUP acquisition.
“Our substantial restructuring efforts of this past year positively
impacted our financial performance during the quarter,” stated
Don Mitchell, FSI’s chairman and chief executive officer. “There
are signs that industry conditions are improving. Our customers
are generally reporting increased factory utilization rates
and device inventories remain low while device selling prices
have stabilized. These trends are being driven by improving
global economic conditions and the impact that this is having
on consumer and corporate microelectronics spending.”
Backlog and Deferred Revenue
The Company began fiscal 2004 with $25.6 million in backlog. Deferred revenue
was $10.7 million at the end of fiscal 2003 and represented $4.5 million of
deferred profit. Customers can cancel or delay orders; therefore backlog is
not necessarily indicative of shipments or revenues in future periods.
Balance Sheet Strength
Cash, cash equivalents and marketable securities at year end were $43.8 million,
including $8.2 million of marketable securities associated with the Company’s
investment in Metron Technology. As of August 30, 2003, the Company had $61.3
million in working capital, a current ratio of 3.5 to 1 and a book value of
$3.68 per share.
Outlook
Considering the backlog and deferred revenue levels at the end of fiscal 2003,
the Company expects first quarter fiscal 2004 revenues to range from $20 to
$23 million.* A portion of the expected revenue is subject to obtaining timely
acceptance from the Company’s customers.
Based upon the gross profit margin associated with deferred revenue, the expected
manufacturing capacity utilization rate, the product sales mix and the current
quarterly operating expense run rate, the Company expects a loss in the $4.0
to $5.0 million range for the first quarter of fiscal 2004.*
Fiscal 2004 first quarter capital expenditures are expected to be less than
$500,000, with depreciation and amortization expected to be between $2.3
and $2.6 million.* If the Company achieves its expectations, it anticipates
burning less than $2.0 million of cash during the first quarter of fiscal
2004.*
Conference Call Details
Investors will have the opportunity to listen to the conference call at 3:30
p.m. CT today over the Internet. The web cast is being distributed over CCBN’s
Investor Distribution Network to both institutional and individual investors.
Individual investors can listen to the call through CCBN’s individual
investor center at www.companyboardroom.com or by visiting any of the investor
sites in CCBN’s Individual Investor Network such as America Online’s
Personal Finance Channel, Fidelity Investments® (Fidelity.com) and others.
Institutional investors can access the call via CCBN’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, vapor 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, the expected revenues, net
losses, capital expenditures, depreciation and amortization and
cash burn rate for the first quarter of fiscal 2004. 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, results of the Company’s discussions with POLARIS®
Systems and Services business customers; the length and extent
of the current industry recovery; order delays or cancellations;
the Company may incur unexpected additional costs as part of its
cost cutting measures; 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 transition to
300mm products; the level of new orders; the timing and success
of current and future product and process development programs;
the success of the Company’s affiliated distributors; the
success of the Company’s direct distribution organization;
legal proceedings; 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 2002 fiscal
year and the Company’s quarterly report on Form 10-Q for
the third quarter of fiscal 2003. The Company assumes no duty
to update the information in this press release.
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