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 QUARTERLY OPERATING RESULTS
St. Paul, Minnesota. (July 27, 2005) — Micro Component Technology, Inc. (OTC Bulletin Board: MCTI) today reported results for its second quarter ended June 25, 2005. Net sales for the quarter were $1.3 million, a decrease of 68.7% from the quarter ended June 26, 2004 and 32.6% below net sales of the prior quarter. Net loss for the quarter ended June 25, 2005 was $1.6 million or $0.06 per share, versus net income of $9,000, or $0.00 per share in the prior year period.
MCT’s President, Chairman and Chief Executive Officer, Roger E. Gower, commented, “The renewed downturn in our portion of the semiconductor capital equipment market was particularly evident in Q2 of 2005 and in our opinion appears to be at or near the bottom. Bookings data in the test and assembly markets over the past several months, as reported by SEMI (Semiconductor Equipment and Materials International), an independent industry source, reveals an improving market trend. In addition, to maintain our financial capability to participate in the improving trends, we completed in April of 2005 an additional financing package for $2.5 million with Laurus Master Funds, Ltd. to maintain our liquidity in these difficult markets. Further, we eliminated additional internal positions during the quarter, which results in close to $0.5 million in annual savings. Additionally, our operational spending for the three and six-month periods ended June 25, 2005, is down approximately 18.6% and 14.7%, respectively, from the comparable prior year periods. We will continue to closely examine further cost reductions within our organization to 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 and Form 10-Q for the quarter ended March 26, 2005.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
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| Three months ended |
| Six months ended |
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| June 25, |
| June 26, |
| June 25, |
| June 26, |
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| 2005 |
| 2004 |
| 2005 |
| 2004 |
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Net sales |
| $ | 1,322 |
| $ | 4,223 |
| $ | 3,282 |
| $ | 8,491 |
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Cost of sales |
| 869 |
| 2,015 |
| 1,926 |
| 3,990 |
| ||||
Gross profit |
| 453 |
| 2,208 |
| 1,356 |
| 4,501 |
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Gross margin |
| 34.3 | % | 52.3 | % | 41.3 | % | 53.0 | % | ||||
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Selling, general and administrative |
| 1,145 |
| 1,337 |
| 2,276 |
| 2,610 |
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Research and development cost |
| 491 |
| 673 |
| 1,079 |
| 1,322 |
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Restructuring charge |
| 66 |
| — |
| 66 |
| — |
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Total operating expenses |
| 1,702 |
| 2,010 |
| 3,421 |
| 3,932 |
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Operating income (loss) |
| (1,249 | ) | 198 |
| (2,065 | ) | 569 |
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Interest and other |
| (307 | ) | (189 | ) | (544 | ) | (384 | ) | ||||
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Net income (loss) |
| $ | (1,556 | ) | $ | 9 |
| $ | (2,609 | ) | $ | 185 |
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Net income (loss) per share: |
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Basic |
| $ | (0.06 | ) | $ | 0.00 |
| $ | (0.10 | ) | $ | 0.01 |
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Diluted |
| $ | (0.06 | ) | $ | 0.00 |
| $ | (0.10 | ) | $ | 0.01 |
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Weighted average shares outstanding: |
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Basic |
| 25,567 |
| 25,120 |
| 25,567 |
| 24,737 |
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Diluted |
| 25,567 |
| 28,585 |
| 25,567 |
| 28,299 |
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Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
|
| June 25, |
| Dec. 31, |
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| 2005 |
| 2004 |
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Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 1,316 |
| $ | 166 |
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Accounts receivable, net |
| 1,152 |
| 2,035 |
| ||
Inventories, net |
| 2,846 |
| 3,057 |
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Other current assets |
| 202 |
| 189 |
| ||
Total current assets |
| 5,516 |
| 5,447 |
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Property, plant and equipment, net |
| 202 |
| 270 |
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Debt issuance costs and other, net |
| 403 |
| 405 |
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Total assets |
| $ | 6,121 |
| $ | 6,122 |
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Liabilities and Stockholders’ Deficit |
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Current liabilities |
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Line of credit |
| $ | 1,999 |
| $ | 1,583 |
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Accounts payable |
| 280 |
| 967 |
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Accrued Liabilities |
| 1,099 |
| 1,093 |
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Current portion of long-term debt |
| 914 |
| 67 |
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Total current liabilities |
| $ | 4,292 |
| $ | 3,710 |
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Long-term portion of lease payable |
| 314 |
| — |
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Long-term convertible note |
| 2,672 |
| 1,458 |
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10% senior subordinated convertible debt |
| 3,630 |
| 3,630 |
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Total stockholders’ deficit |
| (4,787 | ) | (2,676 | ) | ||
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Total liabilities and stockholders’ deficit |
| $ | 6,121 |
| $ | 6,122 |
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