Exhibit 99.1
| For more information contact: |
| Roger E. Gower, President/C.E.O. |
| (651) 697-4000 |
| Michelle Sprunck, Investor Relations |
| (651) 697-4026 |
MCT REPORTS FIRST QUARTER 2005 RESULTS
St. Paul, Minnesota. (April 27, 2005) — Micro Component Technology, Inc. (OTC Bulletin Board: MCTI) today reported results for its first quarter ended March 26, 2005. Net sales for the first quarter 2005 were $2.0 million, a decrease of 54% from sales of $4.3 million for the first quarter 2004 and down 13% from the fourth quarter of 2004. Net loss was $1.1 million, or $0.04 per share in the first quarter 2005, compared to net income of $176,000 or $0.01 per share in the comparable prior year period.
MCT’s President, Chairman and Chief Executive Officer, Roger E. Gower, commented, “The continuation of the renewed downturn in the semiconductor capital equipment market is clearly negatively impacting our business. However, our gross margin percentages improved from the fourth quarter of 2004 on lower net sales levels and our operational spending is down 26% from the fourth quarter of 2004. At the same time several of our newest customers are experiencing exciting improvements in their use of Strip Solutions and are laying a foundation for additional orders in the near future. Additionally, we will continue to target significant cost reductions within our organization to further reduce our expenses and current cash burn rates,” concluded Gower.
MCT is a leading manufacturer of test handling and automation solutions satisfying the complete range of handling requirements of the global semiconductor industry. MCT has recently introduced several new products under its Smart Solutionsä line of automation products, including Tapestryâ, SmartMarkä, SmartSortä, and SmartTrakTM, which are designed to automate the back-end of the semiconductor manufacturing process. MCT believes it has the largest installed IC test handler base of any manufacturer, with over 11,000 units worldwide. MCT is headquartered in St. Paul, Minnesota, with its core manufacturing operation in Penang, Malaysia. MCT is traded on the OTC Bulletin Board under the symbol MCTI.
For more information on the Company, visit its web site at http://www.mct.com
Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve risks and uncertainties, including the timely development and acceptance of new products, the impact of competitive products and pricing, the impact on cash and results of operations from a flattening or renewed downturn in the semiconductor capital equipment market, the need for additional financing, and the other factors detailed from time to time in the Company’s SEC reports, including but not limited to the discussion in the Risk Factors and Management’s Discussion & Analysis included in Form 10-K for the year ended December 31, 2004.
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2
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
|
| Three months ended |
| ||||
|
| March 26, |
| March 27, |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 1,960 |
| $ | 4,268 |
|
Cost of sales |
| 1,057 |
| 1,975 |
| ||
Gross profit |
| 903 |
| 2,293 |
| ||
Gross margin |
| 46.1 | % | 53.7 | % | ||
|
|
|
|
|
| ||
Selling, general and administrative |
| 1,131 |
| 1,273 |
| ||
Research and development cost |
| 588 |
| 649 |
| ||
Total operating expenses |
| 1,719 |
| 1,922 |
| ||
|
|
|
|
|
| ||
Operating income (loss) |
| (816 | ) | 371 |
| ||
|
|
|
|
|
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Interest and other |
| (237 | ) | (195 | ) | ||
|
|
|
|
|
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Net income (loss) |
| $ | (1,053 | ) | $ | 176 |
|
|
|
|
|
|
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Net income (loss) per share – basic and diluted |
| $ | (0.04 | ) | $ | 0.01 |
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|
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Weighted average shares outstanding: |
|
|
|
|
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Basic |
| 25,567 |
| 24,336 |
| ||
Diluted |
| 25,567 |
| 27,985 |
|
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
|
| March 26, |
| Dec. 31, |
| ||
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Assets |
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Current assets |
|
|
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Cash and cash equivalents |
| $ | 194 |
| $ | 166 |
|
Accounts receivable, net |
| 1,866 |
| 2,035 |
| ||
Inventories, net |
| 3,078 |
| 3,057 |
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Other current assets |
| 182 |
| 189 |
| ||
Total current assets |
| 5,320 |
| 5,447 |
| ||
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|
|
|
|
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Property, net |
| 240 |
| 270 |
| ||
|
|
|
|
|
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Debt issue costs and other, net |
| 361 |
| 405 |
| ||
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|
|
|
|
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Total assets |
| $ | 5,921 |
| $ | 6,122 |
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Liabilities and Stockholders’ Deficit |
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Current liabilities |
|
|
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Line of credit |
| $ | 2,404 |
| $ | 1,583 |
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Accounts payable |
| 1,053 |
| 967 |
| ||
Accrued liabilities |
| 1,086 |
| 1,093 |
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Current portions of long-term debt |
| 133 |
| 67 |
| ||
Total current liabilities |
| 4,676 |
| 3,710 |
| ||
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|
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Long-term convertible note |
| 1,293 |
| 1,458 |
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10% senior subordinated convertible debt |
| 3,630 |
| 3,630 |
| ||
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|
|
|
|
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Total stockholders’ deficit |
| (3,678 | ) | (2,676 | ) | ||
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|
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Total liabilities and stockholders’ deficit |
| $ | 5,921 |
| $ | 6,122 |
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