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 Press Release
Asyst Reports Results for Third Quarter of Fiscal 2007
FREMONT, Calif., Febrary 01, 2007 – Asyst Technologies, Inc. (Nasdaq: ASYT), a leading provider of integrated automation solutions that enhance semiconductor and flat panel display manufacturing productivity, today reported financial results for its fiscal third quarter ended Dec. 31, 2006. Net sales for the quarter were $126 million, up 3% from $123 million in the prior sequential quarter. Net sales of tool and fab automation products at ATI were $48 million, which compares with $50 million in the prior sequential quarter. Net sales of Automated Material Handling Systems (AMHS) at Asyst Shinko, Inc. (ASI) were $78 million, which compares with $72 million in the prior sequential quarter. For the fiscal third quarter, net loss according to GAAP was $0.2 million, or less than $0.01 per share, which compares with a net loss of $2.7 million, or $(0.06) per share, in the prior sequential quarter. GAAP net income for the quarter included the impact of $1.0 million in legal and accounting fees and expenses related to the company's previously announced inquiry into past stock option grants and practices, which was completed in the quarter. GAAP net income also includes the impact of approximately $1.0 million in legal fees and costs associated with our pending patent infringement lawsuit against Jenoptik AG (discussed further below). Non-GAAP net income, which excludes the stock option inquiry costs, the net impact of intangibles amortization, and stock-based compensation expense, was $6.0 million, or $0.12 per share, which compares with non-GAAP net income of $8.2 million, or $0.17 per share, in the prior sequential quarter. Total bookings for the quarter were $112 million, which compares with $119 million in the prior sequential quarter. Bookings at ATI were $42 million, which compares with $50 million in the fiscal second quarter. Bookings at ASI were $70 million, essentially flat with $69 million in the prior sequential quarter. The company's overall book-to-bill ratio was 0.88:1 and backlog as of the end of the quarter, adjusted for the impact of a weaker Japanese Yen, was approximately $188 million. Steve Schwartz, chairman and chief executive officer of Asyst, said, "The business generally performed to our expectations in the fiscal third quarter, although ATI bookings reflected recent business trends at our OEM customers. Looking into calendar 2007, we currently anticipate that our semiconductor customers will invest in fab automation at approximately the same level as in calendar 2006. In this stable environment, we are continuing to focus on gaining market share by converting equipment makers to our highly value-added SpartanT equipment front-end, further penetrating the successful Spartan Sorter into Japan and Asia, and leveraging our broad portfolio of products to assume more responsibility for customers' fab automation requirements. In addition, we are increasing our investment in new product development and redoubling our efforts in product cost reduction, with the objectives of increasing our technical lead and achieving a level of profitability that will allow us to continue to invest in the next generation of fab automation technology." The company provided the following guidance for the fiscal fourth quarter ending Mar. 31, 2007:
Asyst separately announced that a federal jury in the United States District Court for the Northern District of California, returned yesterday a verdict in Asyst's favor in the company's long-pending patent lawsuit against Emtrak, Inc., Jenoptik AG, and others. The verdict validated Asyst's patent relating to its innovative Smart Traveler technology, and awarded Asyst damages of approximately $75 million. The verdict is subject to several post-trial motions, which could take several months to resolve. Those motions and other factors, including legal fees, could significantly reduce Asyst's recovery in the lawsuit. Asyst also announced that it recently received a letter from the Securities and Exchange Commission, San Francisco District Office, notifying the company that its previously disclosed investigation of the company's past stock option grants and practices has been terminated with a recommendation that no enforcement action be taken. In addition, the U.S. Attorney's office also recently informed the company that it has suspended the compliance date until further notice for the subpoena issued by the U.S. Attorney's office in its related investigation. About Asyst Asyst Technologies, Inc. is a leading provider of integrated automation solutions that enable semiconductor and flat panel display (FPD) manufacturers to increase their manufacturing productivity and protect their investment in materials during the manufacturing process. Encompassing isolation systems, work-in-process materials management, substrate-handling robotics, automated transport and loading systems, and connectivity automation software, Asyst's modular, interoperable solutions allow chip and FPD manufacturers, as well as original equipment manufacturers, to select and employ the value-assured, hands-off manufacturing capabilities that best suit their needs. Asyst's homepage is http://www.asyst.com Conference Call DetailsA live webcast of the conference call to discuss the quarter’s results will take place today at 5:00 pm Eastern Time. The webcast will be publicly available on Asyst’s website at http://www.asyst.com and accessible by going to the investor relations page and clicking on the “webcast” link. For more information, including this press release, any non-GAAP financial measures that may be discussed on the webcast as well as the most directly comparable GAAP financial measures and a reconciliation of the difference between those GAAP and non-GAAP financial measures, as well as any other material financial and other statistical information contained in the webcast, please visit Asyst’s website at www.asyst.com. A replay of the Webcast may be accessed via the same procedure. In addition, a standard telephone instant replay of the conference call is available by dialing (303) 590-3000, followed by the passcode 11082905 #. The audio instant replay is available from Feb. 1 at 7:00 pm Eastern Time through Feb 15 at 2:59 a.m. Eastern Time. About Our Non-GAAP Operating Results and Adjustments To supplement our consolidated financial results prepared under generally accepted accounting principles ("GAAP"), we use a non-GAAP measure of operating results that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Our non-GAAP net income (loss) gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. This measure is not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income (loss) by adjusting GAAP net income (loss) for the impact of amortization of acquisition-related intangibles, restructuring and impairment charges, costs related to events outside the normal course of business, and other non-cash charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with GAAP. Forward Looking Statements Except for statements of historical fact, the statements in this release are forward-looking. The forward-looking statements include statements regarding future financial results; and other factors more fully detailed in the company's annual report on Form 10-K for the year ended March 31, 2006, as amended on Form 10-K/A, and other reports filed with the Securities and Exchange Commission. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to: uncertainties whether the expected range of results discussed above will change as Asyst finalizes and files its financial statements; uncertainties relating to the time needed to complete the financial review and preparation of financial statements by Asyst, and the time needed by our independent registered public accounting firm to complete its audit, review and other procedures relating to the financial statements; distraction of management's attention from our operations as a result of past or future issues relating to past option grants; uncertainties arising from our inability to maintain effective internal control over financial reporting; the likelihood that fees and expenses associated with the governmental inquiries, accounting review, pending and potential lawsuits, or other matters arising from the company's prior stock option practices are or will be material in any reporting period; requests by current or former officers and directors of the company for indemnification or advancement or reimbursement of fees and expenses; the impact of lawsuits or other proceedings initiated in relation to the company's prior stock option grant practices; uncertainty that these or other matters could comprise a material weakness in the Company’s internal control over financial reporting, which could prevent the company from timely meeting its future reporting requirements or obligations to maintain effective internal control; volatility in our stock price pending resolution of or resulting from the matters discussed above; the volatility of semiconductor industry cycles; our ability to achieve forecasted revenues, margins and profits; failure to respond to rapid demand shifts; dependence on a few significant customers; the timing and scope of decisions by customers to transition and expand fabrication facilities and investment in fab automation equipment; our ability to maintain or expand market share in our product segments; our ability to improve gross margins through product cost reduction; continued risks associated with the acceptance of new products and product capabilities; the risk that customers will delay, reduce or cancel planned projects or bookings and thus delay recognition or the amount of our anticipated revenue; competition in the semiconductor equipment industry and specifically in AMHS; failure to retain and attract key employees; and other factors more fully detailed in the company's annual report on Form 10-K for the year ended March 31, 2006, and other reports filed with the Securities and Exchange Commission. “Asyst” is a registered trademark and Sparta is a trademark of Asyst Technologies, Inc. “Asyst Shinko” is a trademark of Asyst Shinko, Inc. All Rights Reserved.
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)
December 31, March 31,
2006 2006
------------- -------------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $98,284 $109,926
Accounts receivable, net 128,933 141,453
Inventories 60,528 33,219
Prepaid expenses and other 29,234 26,831
------------- -------------
Total current assets 316,979 311,429
------------- -------------
LONG-TERM ASSETS:
Property and equipment, net 23,839 23,108
Goodwill 82,925 58,840
Intangible assets, net 47,519 19,334
Other assets 6,317 2,583
------------- -------------
Total long-term assets 160,600 103,865
------------- -------------
Total assets $477,579 $415,294
============= =============
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and notes payable $1,540 $1,443
Current portion of long-term debt and
capital leases 8,232 1,368
Accounts payable 111,928 88,785
Accrued and other liabilities 94,203 62,902
Deferred margin 8,403 5,335
------------- -------------
Total current liabilities 224,306 159,833
------------- -------------
LONG-TERM LIABILITIES:
Convertible notes 86,250 86,250
Long-term debt and capital leases, net
of current portion 51,864 918
Deferred tax and other long-term
liabilities 24,728 14,093
------------- -------------
Total long-term liabilities 162,842 101,261
------------- -------------
MINORITY INTEREST 130 66,521
------------- -------------
SHAREHOLDERS' EQUITY: 90,301 87,679
------------- -------------
Total liabilities, minority interest and
shareholders' equity $477,579 $415,294
============= =============
ASYST TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share data)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2005 2006 2005
---------- ---------- ---------- ----------
(as (as
restated) restated)
NET SALES $126,135 $106,824 $365,765 $348,870
COST OF SALES 88,019 64,848 252,082 229,736
---------- ---------- ---------- ----------
Gross profit 38,116 41,976 113,683 119,134
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Research and development 7,690 6,342 25,679 20,562
Selling, general and
administrative 21,831 21,296 63,669 62,747
Amortization of acquired
intangible assets 5,912 3,494 14,461 13,126
Restructuring charges
(credits) - (139) 1,784 (46)
---------- ---------- ---------- ----------
Total operating expenses 35,433 30,993 105,593 96,389
---------- ---------- ---------- ----------
Operating income 2,683 10,983 8,090 22,745
Other income
(expense), net (1,326) 2,409 (2,200) 939
---------- ---------- ---------- ----------
Income before provision for
income taxes and minority
interest 1,357 13,392 5,890 23,684
PROVISION FOR INCOME TAXES (1,569) (6,426) (7,661) (16,110)
MINORITY INTEREST (11) (4,178) (1,760) (10,115)
---------- ---------- ---------- ----------
NET INCOME (LOSS) PRIOR TO
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE (223) 2,788 (3,531) (2,541)
Cumulative effect of change
in accounting principle - - 103 -
---------- ---------- ---------- ----------
NET INCOME (LOSS) $(223) $2,788 $(3,428) $(2,541)
========== ========== ========== ==========
Basic net income (loss) per
share prior to cumulative
effect of change in
accounting principle $(0.00) $0.06 $(0.07) $(0.05)
Cumulative effect of change
in accounting principle - - 0.00 -
---------- ---------- ---------- ----------
BASIC NET INCOME (LOSS) PER
SHARE $(0.00) $0.06 $(0.07) $(0.05)
========== ========== ========== ==========
DILUTED NET INCOME (LOSS)
PER SHARE $(0.00) $0.06 $(0.07) $(0.05)
========== ========== ========== ==========
SHARES USED IN THE PER
SHARE CALCULATION - BASIC 49,028 48,019 48,829 47,918
========== ========== ========== ==========
SHARES USED IN THE PER
SHARE CALCULATION -
DILUTED 49,028 48,789 48,829 47,918
========== ========== ========== ==========
ASYST TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(Unaudited; in thousands, except per share data)
Three Months Ended
December 31, 2006
-----------------------------------
GAAP Adjustments Non-GAAP
NET SALES $126,135 $- $126,135
COST OF SALES 88,019 (326) 1 87,693
---------- ----------- ----------
Gross profit 38,116 326 38,442
---------- ----------- ----------
OPERATING EXPENSES:
Research and development 7,690 (344) 2 7,346
Selling, general and administrative 21,831 (1,816) 3 20,015
Amortization of acquired intangible
assets 5,912 (5,912) -
---------- ----------- ----------
Total operating expenses 35,433 (8,072) 27,361
---------- ----------- ----------
Operating income 2,683 8,398 11,081
Other expense, net (1,326) - (1,326)
---------- ----------- ----------
Income before provision for income
taxes and minority interest 1,357 8,398 9,755
PROVISION FOR INCOME TAXES (1,569) (2,177) 4 (3,746)
MINORITY INTEREST (11) - (11)
---------- ----------- ----------
NET INCOME (LOSS) $(223) $6,221 $5,998
========== =========== ==========
BASIC NET INCOME (LOSS) PER SHARE $(0.00) $0.13 $0.12
========== =========== ==========
DILUTED NET INCOME (LOSS) PER SHARE $(0.00) $0.12 $0.12
========== =========== ==========
SHARES USED IN THE PER SHARE
CALCULATION - BASIC 49,028 49,028 49,028
========== =========== ==========
SHARES USED IN THE PER SHARE
CALCULATION - DILUTED 49,028 49,815 49,815
========== =========== ==========
Adjustments
1) Stock-based compensation expense of $326
2) Stock-based compensation expense of $344
3) Stock-based compensation expense of $865; stock option
investigation fees and expenses of $951
4) Reversal of income tax benefit of $2,177 related to amortization of
intangibles
ASYST TECHNOLOGIES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited; in thousands, except per share data)
Three Months Ended Dec. 31, 2006
-----------------------------------
ATI ASI Consolidated
Under GAAP
----------- ---------- ------------
SUPPLEMENTAL STATEMENTS OF
OPERATIONS
NET SALES $48,288 $77,847 $126,135
COST OF SALES 29,399 58,620 88,019
----------- ---------- ------------
Gross profit 18,889 19,227 38,116
----------- ---------- ------------
OPERATING EXPENSES:
Research and development 5,384 2,306 7,690
Selling, general and
administrative 15,049 6,782 21,831
Amortization of acquired
intangible assets 183 5,729 5,912
----------- ---------- ------------
Total operating expenses 20,616 14,817 35,433
----------- ---------- ------------
Operating income (loss) (1,727) 4,410 2,683
Other income (expense), net (1,441) 115 (1,326)
Income (loss) before provision for
income taxes and minority interest (3,168) 4,525 1,357
PROVISION FOR INCOME TAXES 149 (1,718) (1,569)
MINORITY INTEREST (11) - (11)
----------- ---------- ------------
NET INCOME (LOSS) $(3,030) $2,807 $(223)
=========== ========== ============
BASIC NET INCOME (LOSS) PER SHARE $(0.06) $0.06 $(0.00)
=========== ========== ============
DILUTED NET INCOME (LOSS) PER SHARE $(0.06) $0.06 $(0.00)
=========== ========== ============
SHARES USED IN THE PER SHARE
CALCULATION - BASIC 49,028 49,028 49,028
=========== ========== ============
SHARES USED IN THE PER SHARE
CALCULATION - DILUTED 49,028 49,815 49,028
=========== ========== ============
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