Exhibit 99.1
| For more information contact: |
| Roger E. Gower, President/CEO |
| (651) 697-4000 |
| Michelle Sprunck, Investor Relations |
| (651) 697-4000 |
MCT REPORTS FOURTH QUARTER, YEAR END 2005 RESULTS
St. Paul, Minnesota. (February 28, 2006) — Micro Component Technology, Inc. (OTC Bulletin Board: MCTI) today reported results for its fourth quarter and fiscal year ended December 31, 2005.
Net sales for the fourth quarter ended December 31, 2005 were $2.0 million, a sequential increase of 15.4% from the third quarter of 2005. Revenues in the comparable period ended December 31, 2004 were $2.3M. The net loss for the current quarter was $1.5 million (including inventory charges of $525K) or $0.06 per share compared to a loss of $1.8 million or $0.07 per share in the fourth quarter of 2004.
Net sales for the year ended December 31, 2005 were $7.1 million, a decrease of 51.6% from net sales of $14.6 million in the prior year. The net loss for the 2005 was $5.1 million, or $0.20 per share, compared to a net loss of $2.0 million, or $0.08 per share in the prior year.
MCT’s Chief Executive Officer, Roger Gower, commented, “Looking backwards, although, our markets this past year have been very challenging, we have, as a company, achieved many key milestones. We have continued to maintain our strip test market leadership by introducing new dynamic products in 2004 while reducing our overall expenses by $2.3M. The results of our product performance are evident in our steady increase in revenues in Q3 and Q4. Looking forward, we are experiencing exciting growth with Q4 bookings growing by 30% over Q3 and the recently completed financial restructuring providing us the needed working capital to respond to a moving market. We are looking forward to 2006 which appears to provide some solid indications of an upturn”.
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 quarters ended March 26, June 25, and September 24, 2005, respectively.
# # #
2
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
|
| Three months ended |
| Years ended |
| ||||||||
|
| Dec. 31, |
| Dec. 31, |
| Dec. 31, |
| Dec. 31, |
| ||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net sales |
| $ | 2,029 |
| $ | 2,252 |
| $ | 7,069 |
| $ | 14,602 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
| ||||
Product |
| 1,102 |
| 1,394 |
| 4,012 |
| 7,286 |
| ||||
Inventory revaluation |
| 525 |
| — |
| 525 |
| — |
| ||||
Cost of sales |
| 1,627 |
| 1,394 |
| 4,537 |
| 7,286 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| 402 |
| 858 |
| 2,532 |
| 7,316 |
| ||||
Gross margin |
| 19.8 | % | 38.1 | % | 35.8 | % | 50.1 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
Selling, general and administrative |
| 992 |
| 1,544 |
| 4,213 |
| 5,596 |
| ||||
Research and development cost |
| 466 |
| 731 |
| 1,980 |
| 2,841 |
| ||||
Restructuring charge |
| 1 |
| 35 |
| 107 |
| 35 |
| ||||
Total operating expenses |
| 1,459 |
| 2,310 |
| 6,300 |
| 8,472 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) |
| (1,057 | ) | (1,452 | ) | (3,768 | ) | (1,156 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest and other |
| (445 | ) | (305 | ) | (1,335 | ) | (892 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
| $ | (1,502 | ) | $ | (1,757 | ) | $ | (5,103 | ) | $ | (2,048 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.08 | ) |
Diluted |
| $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.08 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 26,215 |
| 25,269 |
| 25,894 |
| 25,013 |
| ||||
Diluted |
| 26,215 |
| 25,269 |
| 25,894 |
| 25,013 |
|
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
|
| Dec. 31, |
| Dec. 31, |
| ||
|
| 2005 |
| 2004 |
| ||
Assets |
|
|
|
|
| ||
Current assets |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 77 |
| $ | 166 |
|
Accounts receivable, net |
| 1,661 |
| 2,035 |
| ||
Inventories, net |
| 2,194 |
| 3,057 |
| ||
Other current assets |
| 169 |
| 189 |
| ||
Total current assets |
| 4,101 |
| 5,447 |
| ||
Property, net |
| 148 |
| 270 |
| ||
Debt issuance costs and other, net |
| 297 |
| 405 |
| ||
Total assets |
| $ | 4,546 |
| $ | 6,122 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Deficit |
|
|
|
|
| ||
Current liabilities |
|
|
|
|
| ||
Accounts payable |
| $ | 425 |
| $ | 967 |
|
Bank line of credit |
| 2,630 |
| 1,583 |
| ||
Accrued liabilities |
| 1,101 |
| 1,093 |
| ||
Current portion long-term obligations |
| 133 |
| 67 |
| ||
Total current liabilities |
| 4,289 |
| 3,710 |
| ||
Long-term debt |
| 3,683 |
| 1,458 |
| ||
10% senior subordinated convertible debt |
| 3,630 |
| 3,630 |
| ||
Total stockholders’ deficit |
| (7,056 | ) | (2,676 | ) | ||
Total liabilities and stockholders’ deficit |
| $ | 4,546 |
| $ | 6,122 |
|
3