Exhibit 99.1
Trikon Technologies, Inc. Ringland Way, Newport, NP18 2TA, United Kingdom.
Press Release
TRIKON TECHNOLOGIES REPORTS RESULTS FOR SECOND QUARTER 2004
NEWPORT, Wales, United Kingdom, July 29, 2004 — Trikon Technologies, Inc. (Nasdaq: TRKN) today reported results for its fiscal second quarter ended June 30, 2004.
“I am pleased to be able to report the highest quarterly revenue since the fourth quarter of fiscal 2002 and the highest quarterly order level at $13.6 million since the fourth quarter of fiscal 2000,” said Dr. John Macneil, Chief Executive Officer. “This order and revenue growth has exceeded our expectations and has been achieved from repeat business from our large installed base and from the development of new technologies for emerging applications.”
Revenues for the quarter were $10.2 million, an increase of 69 percent on $6.0 million for the second quarter of 2003, and an increase of 50 percent on $6.8 million for the first quarter of 2004. Revenues for the six months ended June 30, 2004 were $17.0 million, an increase of 52% on the comparable revenue of $11.1 million for the six month period in the prior year. The book to bill ratio for the quarter increased to 1.34:1.
Operating loss for the quarter was $4.5 million, smaller by 48 percent compared to an operating loss of $8.5 million for the second quarter of 2003 and 30 percent compared to the $6.5 million for the first quarter of 2004. For the six-month period ended June 30, 2004 the operating loss was $11.0 million compared to $15.6 million in the six months ended June 30, 2003.
Net loss applicable to common shares for the quarter was $4.7 million, or $0.30 per share, compared to a net loss of $8.1 million, or $0.60 per share in the second quarter of the prior year and $5.9 million, or $0.37 per share for the first quarter of 2004. Net loss applicable to common shares for the six-month period ended June 30, 2004 was $10.6 million or $0.67 per share, compared to a net loss of $15.4 million, or $1.17 per share in the six-month period ended June 30, 2003.
Revenue deferred under our revenue recognition policy decreased to $2.2 million at June 30, 2004 compared to $5.8 million at December 31, 2003.
“During the second quarter we set a target for lowering annual operating expenses by approximately $4.0 to $4.5 million including a reduction in the number of employees,” said Bill Chappell, Chief Financial Officer. “These cost reduction measures have now been successfully implemented and the costs related to the workforce reduction of $925,000, or $0.06 per share, have been included in operating losses for the three and six-month period ended June 30, 2004.”
John Macneil continued, “Trikon has a history of innovation and a broad range of capabilities in both etch and the deposition of both dielectrics and metals. We are continuing to refocus our efforts into applications where new equipment and processes are required by customers in the short-term, while continuing to develop our advanced flowfill and low-k dielectric technologies for the longer term. This focus provides us with confidence in the sales environment for Trikon and, when combined with the benefits of the cost reduction steps completed in the second quarter, provides us with the drivers to achieve our key goal of returning Trikon to profitability.”
Trikon also reported that Dr. Macneil has been appointed President and Chief Executive Officer on a permanent basis. Dr. Dobson, Trikon’s Chairman said, “The Board of Directors have been impressed with the improvements in the Company’s performance since his appointment on an acting basis and we are confident that he has the ability and desire to lead Trikon in the challenges that face the Company. We are pleased to confirm his appointment.”
Investor Conference Call and Webcast
There will be a conference call at 10:30 am New York time today, hosted by Dr. John Macneil, President and CEO to discuss the results for the second quarter ended June 30, 2004 and the outlook for the third quarter and full year of 2004. A live and subsequently recorded audio webcast of the call will be available atwww.trikon.com.
About Trikon Technologies
Trikon Technologies is a leading provider of wafer fabrication equipment and services to the global semiconductor industry. Trikon develops and manufactures advanced capital equipment for plasma etching and chemical and physical vapor deposition (CVD and PVD) of thin films for use in the production of semiconductor devices. These are key components in most advanced electronic products, such as telecommunication devices, consumer and industrial electronics and computers. More information is available on the internet at:www.trikon.com.
Trikon Technologies Contacts
Corporate contact:
Bill Chappell
+44 (0) 1633-414192bill.chappell@trikon.com
US Investor Relations contact:
Kevin Kirkeby at The Global Consulting Group
+1 646-284 -9416kkirkeby@hfgcg.com
Marketing Publicity Manager:
Katrina Bomont
+44 (0) 1633 414030 Katrina.bomont@trikon.com
”Safe Harbor” Statement Under the Private Securities Litigation Act of 1995: This news release contains certain forward-looking statements that include, without limitation, statements by Dr. Macneil and Bill Chappell about Trikon’s expectations regarding the future sales environment and ability to refocus efforts into new applications, confidence in the sales environment and Trikon’s expectation to return to profitability. These forward-looking statements are subject to various risks and uncertainties that could cause
actual results to differ materially, including, but not limited to the economic conditions within the semiconductor capital equipment industry, demand for Trikon’s products and services, Trikon’s ability to continue to comply with its bank covenants, and possible changes in the company’s strategy. Additional factors that may cause actual results to differ are included in the more detailed cautionary statements included in the company’s SEC reports, including, without limitation, its annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
-Tables Follow-
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| | | | | | | | |
| | | June 30,
2004
| | | December 31,
2003
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| | | (Unaudited) | | | | |
Assets | | | | | | | | |
Current assets : | | | | | | | | |
Cash and cash equivalents | | $ | 22,253 | | | $ | 31,646 | |
Accounts receivable, net | | | 8,756 | | | | 11,287 | |
Inventories, net | | | 15,657 | | | | 15,257 | |
Prepaid and other current assets | | | 2,568 | | | | 4,855 | |
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Total current assets | | | 49,234 | | | | 63,045 | |
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Property, equipment and leasehold improvements, net | | | 15,127 | | | | 16,896 | |
Demonstration systems, net | | | 2,501 | | | | 2,814 | |
Other assets | | | 382 | | | | 374 | |
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Total assets | | $ | 67,244 | | | $ | 83,129 | |
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Liabilities and shareholders’ equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Short term borrowing | | $ | 9,050 | | | $ | — | |
Accounts payable and accrued expenses | | | 6,318 | | | | 5,785 | |
Current portion of long-term debt | | | 334 | | | | 11,736 | |
Deferred revenue | | | 2,240 | | | | 5,803 | |
Other current liabilities | | | 2,192 | | | | 2,635 | |
Accrued expenses | | | 1,963 | | | | 1,399 | |
Warranty and related expenses | | | 1,055 | | | | 1,285 | |
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Total current liabilities | | | 23,152 | | | | 28,643 | |
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Long-term debt less current portion | | | 71 | | | | 188 | |
Other non-current liabilities | | | 835 | | | | 928 | |
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| | | $ | 24,058 | | | $ | 29,759 | |
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Shareholders’ equity: | | | | | | | | |
Preferred Stock: | | | | | | | | |
Authorized shares — 20,000,000 Issued and outstanding — Nil at June 30, 2004 and December 31, 2003 | | | — | | | | — | |
Common Stock, $0.001 par value: | | | | | | | | |
Authorized shares — 50,000,000 Issued and outstanding — 15,750,410 at June 30, 2004 and 15,635,888 at December 31, 2003 | | | 261,411 | | | | 261,217 | |
Accumulated other comprehensive loss | | | 2,050 | | | | 1,833 | |
Accumulated deficit | | | (220,275 | ) | | | (209,680 | ) |
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Total shareholders’ equity | | | 43,186 | | | | 53,370 | |
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Total liabilities and shareholders’ equity | | $ | 67,244 | | | $ | 83,129 | |
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Trikon Technologies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
| | | | | | | | | | | | | | |
| | | Three Months Ended
| | | Six Months Ended
| |
| | | June 30, 2004
| | | June 30, 2003
| | | June 30, 2004
| | | June 30, 2003
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Revenues: | | | | | | | | | | | | | | |
Product revenues | | $ | 10,106 | | | 5,967 | | | $ | 16,844 | | | 11,071 | |
License revenues | | | 66 | | | 49 | | | | 109 | | | 49 | |
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| | | | 10,172 | | | 6,016 | | | | 16,953 | | | 11,120 | |
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Costs and expenses: | | | | | | | | | | | | | | |
Cost of goods sold | | | 7,549 | | | 4,804 | | | | 12,892 | | | 9,144 | |
Research and development | | | 2,304 | | | 2,323 | | | | 4,845 | | | 4,641 | |
Selling, general and administrative | | | 4,784 | | | 5,420 | | | | 10,179 | | | 10,220 | |
Settlement of pension liabilities and related expenses | | | — | | | 2,017 | | | | — | | | 2,723 | |
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| | | | 14,637 | | | 14,564 | | | | 27,916 | | | 26,728 | |
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Loss from operations | | | (4,465 | ) | | (8,548 | ) | | | (10,963 | ) | | (15,608 | ) |
Foreign currency (losses) gains | | | (264 | ) | | 433 | | | | 359 | | | 155 | |
Interest income, net | | | 63 | | | 112 | | | | 129 | | | 210 | |
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Loss before income tax charge | | | (4,666 | ) | | (8,003 | ) | | | (10,475 | ) | | (15,243 | ) |
Income tax charge | | | 55 | | | 134 | | | | 120 | | | 158 | |
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Net loss | | $ | (4,721 | ) | | (8,137 | ) | | $ | (10,595 | ) | | (15,401 | ) |
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Loss per share data: | | | | | | | | | | | | | | |
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Basic: | | $ | (0.30 | ) | | (0.60 | ) | | $ | (0.67 | ) | | (1.17 | ) |
Diluted: | | $ | (0.30 | ) | | (0.60 | ) | | $ | (0.67 | ) | | (1.17 | ) |
Weighted average common shares used in the calculation: | | | | | | | | | | | | | | |
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Basic: | | | 15,745 | | | 13,494 | | | | 15,723 | | | 13,187 | |
Diluted: | | | 15,745 | | | 13,494 | | | | 15,723 | | | 13,187 | |
