Exhibit 99.1
| | | | |
| | Nanometrics Incorporated | | Tel: 408.545.6000 |
| | 1550 Buckeye Drive | | Fax: 408.232.5910 |
| | Milpitas, CA 95035 | | www.nanometrics.com |
News Release
| | |
| Investor Relations Contact: | | Company Contact: |
| Claire McAdams | | James Moniz, CFO |
| Headgate Partners LLC | | Nanometrics Incorporated |
| 530.265.9899, 530.265.9699 fax | | 408.545.6145, 408.521.9370 fax |
| email: claire@headgatepartners.com | | email: jmoniz@nanometrics.com |
Nanometrics Reports First Quarter Financial Results
MILPITAS, Calif., April 30, 2009 — Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced process control metrology systems used primarily in the manufacturing of semiconductors, solar photovoltaics and high-brightness LEDs, today announced financial results for its first quarter ended March 28, 2009.
Commenting on the first quarter results, president and chief executive officer Dr. Timothy J. Stultz said, “Severe reductions in semiconductor capital equipment spending resulted in a sharp decline in our quarterly revenues. However, our service and upgrade business, as well as our product sales into the high-brightness LEDs and solar photovoltaics markets, have showed continued strength and resilience during this unprecedented decline in memory and logic fab spending.”
“While we are beginning to see signs that business is improving in the semiconductor industry, and that the first quarter may indeed be the trough quarter for capital spending, we will continue to take steps to further reduce our expenses and cost structure until such time as visibility, certainty and lead times improve,” commented Dr. Stultz. “For five straight quarters we have reduced our ongoing operating expenses and driven down our cash break-even revenue level. Continued cost reduction actions taken in the first quarter of the year and those planned for the current quarter will further drive down operating expenses and our cash break-even level.”
“While we are steadfast in our commitment to reduce and manage expenses, we are equally committed to our investments in new products, technologies and applications which will be the fuel for growth when spending in our industry resumes,” added Dr. Stultz. “We are very encouraged by the performance of, and customer reception to, our latest product offerings, and expect to emerge from this downturn with a stronger and increased position within our served markets.”
First Quarter 2009 Summary
Revenues were $10.1 million, down 51% from $20.5 million in the fourth quarter of 2008 and down 71% from $34.7 million in the first quarter of 2008. Gross margin was 28.3%, down from 42.1% for the prior quarter and 45.6% in the year-ago period, reflecting decreased factory absorption as a result of decreased sales volume. Operating expenses totaled $11.9 million, including a $0.7 million restructuring charge relating to workforce reductions in the quarter, representing a decrease of 2% from the prior quarter and 29% from the year-ago period.
The net loss was $10.6 million, or $0.58 per share. This compares to a net loss of $2.6 million, or $0.14 per share, in the fourth quarter of 2008 and a net loss of $0.7 million, or $0.04 per share, in the first quarter of 2008. The net loss for the first quarter included $0.3 million of stock-based compensation expenses and $0.7 million of restructuring charges, compared $0.9 million and $0.9 million, respectively, in the first quarter of 2008. The net loss also included a foreign currency charge of $1.3 million associated with a reclassification of our intercompany loans with Japan at the end of fiscal 2008 as well as the weakening of the Japanese yen during the quarter.
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| | | | |
| | Nanometrics Incorporated | | Tel: 408.545.6000 |
| | 1550 Buckeye Drive | | Fax: 408.232.5910 |
| | Milpitas, CA 95035 | | www.nanometrics.com |
Earnings (loss) before interest, income taxes, depreciation and amortization excluding certain items such as asset impairment, restructuring and acquisition-related charges (“EBITDA”) for the first quarter was ($6.9) million, compared to ($2.0) million for the fourth quarter of 2008 and $2.5 million for the first quarter of 2008.
Conference Call Details
A conference call to discuss the first quarter 2009 results will be held today at 4:45 p.m. EDT (1:45 p.m. PDT). To participate in the conference call, the dial-in numbers are 800-435-1398 for domestic callers and 617-614-4078 for international callers. The passcode is 18283705. A live and recorded webcast will be made available on the investor page of the Nanometrics website atwww.nanometrics.com.
Use of Non-GAAP Financial Information
Financial results such as EBITDA that exclude certain charges and special items are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Management uses EBITDA, which excludes costs associated with acquisitions, asset impairments, restructuring and other special items, to evaluate the company’s operating and financial results. The company believes the presentation of EBITDA is useful to investors for analyzing ongoing business trends, comparing performance to prior periods, and enhancing the investor’s ability to view the company’s results from management’s perspective. A table presenting a reconciliation of GAAP results to EBITDA is included at the end of this press release.
About Nanometrics
Nanometrics is a leader in the design, manufacture and marketing of high-performance process control metrology systems used primarily in the manufacturing of semiconductors, solar photovoltaics and high-brightness LEDs, as well as by customers in the silicon wafer and data storage industries. Nanometrics standalone and integrated metrology systems measure various thin film properties, critical dimensions, overlay control and optical, electrical and material properties, including the structural composition of silicon, compound semiconductor and photovoltaic devices, during various steps of the manufacturing process. These systems enable device manufacturers to improve yields, increase productivity and lower their manufacturing costs. The company maintains its headquarters in Milpitas, California, with sales and service offices worldwide. Nanometrics is traded on NASDAQ Global Market under the symbol NANO. Nanometrics’ website ishttp://www.nanometrics.com.
Forward Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding Nanometrics’ cost structure and expected results for its most recently completed fiscal quarter, which remain subject to adjustment in connection with the preparation of Nanometrics’ financial statements and periodic report on Form 10-Q for the quarter ended March 28, 2009. For additional information and considerations regarding the risks faced by Nanometrics, see its annual report on Form 10-K for the year ended December 27, 2008 as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time. Although Nanometrics believes that the expectations reflected in the forward-looking statements are reasonable, Nanometrics cannot guarantee future results, levels of activity, performance or achievements. Nanometrics disclaims any obligation to update information contained in any forward-looking statement.
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| | | | |
| | Nanometrics Incorporated | | Tel: 408.545.6000 |
| | 1550 Buckeye Drive | | Fax: 408.232.5910 |
| | Milpitas, CA 95035 | | www.nanometrics.com |
NANOMETRICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
| | | | | | | | |
| | | March 28,
2009 | | | December 27,
2008 | |
| | | (Unaudited) | | | (Audited) | |
| ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 16,896 | | | $ | 23,980 | |
Accounts receivable, net of allowances of $731 and $309 | | | 10,262 | | | | 17,143 | |
Inventories | | | 32,597 | | | | 31,583 | |
Inventories - delivered systems | | | 189 | | | | 205 | |
Prepaid expenses and other | | | 2,113 | | | | 1,838 | |
Deferred income tax assets | | | 337 | | | | 350 | |
| | | | | | | | |
Total current assets | | | 62,394 | | | | 75,099 | |
Property, plant and equipment, net | | | 39,518 | | | | 40,136 | |
Intangible assets, net | | | 6,532 | | | | 6,901 | |
Other assets | | | 1,598 | | | | 1,718 | |
| | | | | | | | |
Total assets | | $ | 110,042 | | | $ | 123,854 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Revolving line of credit | | $ | — | | | $ | — | |
Accounts payable | | | 4,513 | | | | 4,824 | |
Accrued payroll and related expenses | | | 2,846 | | | | 3,435 | |
Deferred revenue | | | 705 | | | | 1,701 | |
Other current liabilities | | | 4,285 | | | | 5,800 | |
Income taxes payable | | | 1,026 | | | | 1,187 | |
Current portion of debt obligations | | | 390 | | | | 413 | |
| | | | | | | | |
Total current liabilities | | | 13,765 | | | | 17,360 | |
Other long-term liabilities | | | 784 | | | | 644 | |
Debt obligations due after one year | | | 12,995 | | | | 13,083 | |
| | | | | | | | |
Total liabilities | | | 27,544 | | | | 31,087 | |
Stockholders’ equity | | | | | | | | |
Common stock, $0.001 par value; 47,000,000 shares authorized; 18,417,770 and 18,413,054, respectively, outstanding | | | 18 | | | | 18 | |
Additional paid-in capital | | | 190,243 | | | | 189,927 | |
Accumulated deficit | | | (107,275 | ) | | | (96,643 | ) |
Accumulated other comprehensive income / (loss) | | | (488 | ) | | | (535 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 82,498 | | | | 92,767 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 110,042 | | | $ | 123,854 | |
| | | | | | | | |
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| | | | |
| | Nanometrics Incorporated | | Tel: 408.545.6000 |
| | 1550 Buckeye Drive | | Fax: 408.232.5910 |
| | Milpitas, CA 95035 | | www.nanometrics.com |
NANOMETRICS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | |
| | | Three Months Ended | |
| | | March 28,
2009 | | | March 29,
2008 | |
Net revenues: | | | | | | | | |
Products | | $ | 4,940 | | | $ | 27,929 | |
Service | | | 5,117 | | | | 6,799 | |
| | | | | | | | |
Total net revenues | | | 10,057 | | | | 34,728 | |
Costs of net revenues: | | | | | | | | |
Cost of products | | | 3,695 | | | | 13,662 | |
Cost of service | | | 3,516 | | | | 5,238 | |
| | | | | | | | |
Total costs of net revenues | | | 7,211 | | | | 18,900 | |
| | | | | | | | |
Gross profit | | | 2,846 | | | | 15,828 | |
Operating expenses: | | | | | | | | |
Research and development | | | 3,239 | | | | 4,255 | |
Selling | | | 3,615 | | | | 4,839 | |
General and administrative | | | 3,972 | | | | 5,524 | |
Amortization of intangible assets | | | 369 | | | | 1,285 | |
Restructuring charge | | | 689 | | | | 870 | |
| | | | | | | | |
Total operating expenses | | | 11,884 | | | | 16,773 | |
| | | | | | | | |
Loss from operations | | | (9,038 | ) | | | (945 | ) |
Other income (expense): | | | | | | | | |
Interest income | | | 15 | | | | 98 | |
Interest expense | | | (266 | ) | | | (77 | ) |
Other, net | | | (1,359 | ) | | | 454 | |
| | | | | | | | |
Total other income (expense), net | | | (1,610 | ) | | | 475 | |
| | | | | | | | |
Loss before income tax expense | | | (10,648 | ) | | | (470 | ) |
Income tax expense (benefit) | | | (19 | ) | | | 254 | |
| | | | | | | | |
Net loss | | $ | (10,628 | ) | | $ | (724 | ) |
| | | | | | | | |
Net loss per share: | | | | | | | | |
Basic | | $ | (0.58 | ) | | $ | (0.04 | ) |
| | | | | | | | |
Diluted | | $ | (0.58 | ) | | $ | (0.04 | ) |
| | | | | | | | |
Shares used in per share computation: | | | | | | | | |
Basic | | | 18,415 | | | | 18,590 | |
| | | | | | | | |
Diluted | | | 18,415 | | | | 18,590 | |
| | | | | | | | |
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| | | | |
| | Nanometrics Incorporated | | Tel: 408.545.6000 |
| | 1550 Buckeye Drive | | Fax: 408.232.5910 |
| | Milpitas, CA 95035 | | www.nanometrics.com |
NANOMETRICS INCORPORATED
RECONCILIATION OF GAAP RESULTS TO EBITDA
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | |
| | | Three Months Ended | |
| | | March 28,
2009 | | | March 29,
2008 | |
Income (loss) from operations | | $ | (9,038 | ) | | $ | (945 | ) |
Adjustments: | | | | | | | | |
Amortization of intangible assets | | | 369 | | | | 1,285 | |
Depreciation | | | 763 | | | | 989 | |
Amortization of demonstration systems | | | 285 | | | | 285 | |
Restructuring charge | | | 689 | | | | 870 | |
| | | | | | | | |
Earnings (loss) before interest, income taxes, depreciation and amortization excluding certain items (“EBITDA”) | | $ | (6,932 | ) | | $ | 2,484 | |
| | | | | | | | |
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