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FSI International (ticker:
FSII, exchange: NASDAQ) News Release - 6/20/06
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FSI International, Inc. Announces Third Quarter and First Nine Months Fiscal 2006 Financial Results
Third Quarter Fiscal 2006 Orders Increased 66 Percent to $44 Million as Compared to the Second Quarter Level
MINNEAPOLIS (June 20, 2006)--FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the third quarter of fiscal 2006 and for the first nine months ended May 27, 2006.
Fiscal 2006 Third Quarter and First Nine Months
Sales for the third quarter of fiscal 2006 were $32.0 million, compared to $19.1 million for the same period in fiscal 2005. The Company’s net loss for the third quarter of fiscal 2006 was $2.4 million, or $0.08 per share, compared to a net loss of $2.0 million, or $0.07 per share, for the third quarter of fiscal 2005. The fiscal 2005 net loss included a $4.2 million, or $0.14 per share, gain on the initial distribution associated with Applied Materials' acquisition of Metron Technology, N.V.
Sales for the first nine months of fiscal 2006 were $72.9 million, compared to $62.7 million for the same period of fiscal 2005. The Company’s net loss for the first nine months of fiscal 2006 was $10.4 million, or $0.35 per share, including a $500,000 impairment charge related to an investment. This compares to a net loss of $1.4 million, or $0.05 per share, for the first nine months of fiscal 2005. In the first nine months of fiscal 2005, the Company accrued $250,000, or $0.01 per share, of litigation judgment loss; recorded a $7.0 million, or $0.23 per share, gain on the sale of its Allen, Texas facility; and recorded a $4.2 million, or $0.14 per share, gain on the initial distribution associated with Applied Materials' acquisition of Metron Technology, N.V.
Backlog and deferred revenue nearly doubled to $48.5 million at the end of the third quarter of fiscal 2006, as compared to $25.2 million at the end of the third quarter last year. Orders for the third quarter of fiscal 2006 were $43.7 million, compared to $24.6 million in the third quarter of fiscal 2005 and $26.3 million last quarter. Increased demand for our 300mm ZETA® batch spray processing system and for products that are used to process 200mm diameter and smaller silicon wafers contributed to the third quarter year-over-year order increase.
“The improved industry conditions contributed to the significant third quarter increase in orders. In addition, we continue to make progress on our key strategies,” said Don Mitchell, FSI chairman and CEO, “including:
- Expanding the process applications for which our flagship products can be used, including the introduction and initial acceptance of multiple ZETA® Spray Cleaning Systems with new ViPR™ “ashless” photoresist strip technology;
- Gaining acceptance of additional flagship products that were under evaluation by customers for specific applications;
- Adding several names to the growing list of customers using one or more of our flagship products; and,
- Qualifying an initial MAGELLAN® Immersion Cleaning System at another major U.S.-based semiconductor manufacturer, which resulted in a follow-on multi-unit order early in the fourth quarter of fiscal 2006.”
Also, we recently completed our FSI Knowledge Services™ Seminar Series at five locations in the U.S. market. Our customers had the opportunity to learn about surface conditioning productivity and performance drivers for 65nm and beyond. Given the excellent participation and feedback, I believe customers continue to recognize FSI as a strong partner and technology leader in the surface conditioning market,” concluded Mitchell.
Balance Sheet
As of the end of the fiscal 2006 third quarter, the Company had approximately $118.4 million in assets, including $24.2 million in cash, restricted cash, cash equivalents and marketable securities. The Company had a current ratio of 3.0 to 1.0, no debt and a book value of $2.97 per share at the end of the fiscal 2006 third quarter.
Outlook
Given the quarter-to-date orders, the Company expects fourth quarter orders of $40 to $45 million as compared to $43.7 million in the third quarter of fiscal 2006.* 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 2006 revenues to be approximately $35 to $40 million.* Based upon anticipated gross profit margins and the operating expense run rate, the Company expects a net income of approximately $1.0 to $2.0 million for the fourth quarter.*
Conference Call Details
Investors will have the opportunity to listen to the conference call at 3:30 p.m. CDT over the Internet. The webcast 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.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. 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 fourth quarter orders, revenue and net income. 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 change in industry conditions; 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 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 distributor; 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 Securities and Exchange Commission reports including, but not limited to, the Company’s Annual Report on Form 10-K for the 2005 fiscal year and the Company’s quarterly report on Form 10-Q. The Company assumes no duty to update the information in this press release.
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