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 THIRD QUARTER 2005 OPERATING RESULTS
(SALES UP 33% OVER PRIOR QUARTER)
St. Paul, Minnesota. (October 26, 2005) — Micro Component Technology, Inc. (OTC Bulletin Board: MCTI) today reported results for its third quarter ended September 24, 2005. Net sales for the third quarter were $1.8 million, an increase of 33.0% above net sales of the prior quarter and a decrease of 54.4% from the quarter ended September 25, 2004. Net loss for the quarter ended September 24, 2005 was $1.0 million or $0.04 per share, versus net a net loss of $0.5 million, or $0.02 per share in the prior year period.
MCT’s President, Chairman and Chief Executive Officer, Roger E. Gower, commented, “It appears that the Test and Assembly portion of the Semiconductor Capital Equipment Market as reported by SEMI (Semiconductor Equipment and Materials Institute) has experienced a steady upturn in bookings for the past six months and this has been reflected in our improving results. It is still early to project a firm upturn in bookings for 2006 but the direction is gratifying. As previously announced, our customers continue to see the significant benefits afforded to them through the utilization of our strip technology. In one large device manufacturer situation, over 50% of its worldwide production today is tested utilizing our Tapestry equipment. At the same time, we will continue to remain diligent to reduce costs where we can and were pleased to see our operating costs down approximately 36% and 21% for the three and nine month periods ended September 24, 2005, respectively, 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.
MCT, Inc. (Third Quarter Year 2005) - Page Two
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 quarters ending March 26, 2005 and June 25, 2005.
MCT, Inc. (Third Quarter Year 2005) - Page Three
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
|
| Three months ended |
| Nine months ended |
| ||||||||
|
| Sept. 24, |
| Sept. 25, |
| Sept. 24, |
| Sept. 25, |
| ||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net sales |
| $ | 1,758 |
| $ | 3,859 |
| $ | 5,040 |
| $ | 12,351 |
|
Cost of sales |
| 984 |
| 1,902 |
| 2,910 |
| 5,892 |
| ||||
Gross profit |
| 774 |
| 1,957 |
| 2,130 |
| 6,459 |
| ||||
Gross margin |
| 44.0 | % | 50.7 | % | 42.3 | % | 52.3 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
Selling, general and administrative |
| 945 |
| 1,442 |
| 3,221 |
| 4,053 |
| ||||
Research and development cost |
| 435 |
| 788 |
| 1,514 |
| 2,111 |
| ||||
Restructuring charge |
| 40 |
| — |
| 106 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
| 1,420 |
| 2,230 |
| 4,841 |
| 6,164 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) |
| (646 | ) | (273 | ) | (2,711 | ) | 295 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest and other |
| (346 | ) | (203 | ) | (890 | ) | (586 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
| $ | (992 | ) | $ | (476 | ) | $ | (3,601 | ) | $ | (291 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net loss per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.01 | ) |
Diluted |
| $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.01 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 26,187 |
| 25,237 |
| 25,776 |
| 24,908 |
| ||||
Diluted |
| 26,187 |
| 25,237 |
| 25,776 |
| 24,908 |
|
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
|
| Sept. 24, |
| Dec. 31, |
| ||
|
| 2005 |
| 2004 |
| ||
Assets |
|
|
|
|
| ||
Current assets |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 346 |
| $ | 166 |
|
Accounts receivable, net |
| 1,552 |
| 2,035 |
| ||
Inventories, net |
| 2,541 |
| 3,057 |
| ||
Other current assets |
| 148 |
| 189 |
| ||
Total current assets |
| 4,587 |
| 5,447 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
| 169 |
| 270 |
| ||
|
|
|
|
|
| ||
Debt issuance costs and other, net |
| 349 |
| 405 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 5,105 |
| $ | 6,122 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Deficit |
|
|
|
|
| ||
Current liabilities |
|
|
|
|
| ||
Line of credit |
| $ | 1,778 |
| $ | 1,583 |
|
Accounts payable |
| 359 |
| 967 |
| ||
Accrued Liabilities |
| 1,024 |
| 1,093 |
| ||
Current portion of long-term debt |
| 1,341 |
| 67 |
| ||
Total current liabilities |
| $ | 4,502 |
| $ | 3,710 |
|
|
|
|
|
|
| ||
Long-term portion of lease payable |
| 271 |
| — |
| ||
Long-term convertible note |
| 2,325 |
| 1,458 |
| ||
10% senior subordinated convertible debt |
| 3,630 |
| 3,630 |
| ||
|
|
|
|
|
| ||
Total stockholders’ deficit |
| (5,623 | ) | (2,676 | ) | ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ deficit |
| $ | 5,105 |
| $ | 6,122 |
|