Exhibit 99.1
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For more information contact: | |
| Roger E. Gower, President/C.E.O. |
| (651) 697-4000 |
| Michelle Sprunck, Investor Relations |
| (651) 697-4026 |
MCT THIRD QUARTER RESULTS
St. Paul, Minnesota. (November 1, 2006) — Micro Component Technology, Inc. (OTC Bulletin Board: MCTI) today reported results for its third quarter ended September 30, 2006. Net sales for the third quarter of 2006 were $3.3 million, an increase of 87% from net sales of $1.8 million for the third quarter of 2005. Net loss was $1.9 million or $0.06 per share in the third quarter of 2006, compared to net loss of $1.0 million or $0.04 per share in the comparable prior year period. The current quarter’s net loss of $1.9M included $1.4 million of non-cash debt conversion expense from the 10% subordinated convertible debt.
Net sales for the nine-months ended September 30, 2006 were $9.3 million, an increase of 85% from net sales of $5.0 million in the prior year. The net loss for the nine-month period of 2006 was $3.0 million, or $0.10 per share, compared to a net loss of $3.6 million, or $0.14 per share in the prior year.
MCT’s President, Chairman and Chief Executive Officer, Roger E. Gower, commented, “Our third quarter revenue continued to demonstrate the sales strength that was experienced in the previous first two quarters of 2006, by exceeding like quarters of 2005 by over 85%. In addition, bookings continued strong as noted in our recent announcement of a $1.2M, multi-unit order scheduled to be shipped in Q4 of 2006. The 3rd Quarter MCT financial performance was substantially impacted by two major factors: (1) A non-cash debt conversion expense of $1.4M associated with the conversions to stock of over $2.1M of convertible debt and (2) a known low gross margin experience on a key new product installation.”
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 2006) - 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, 2005.
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MCT, Inc. (Third Quarter 2006) - Page Three
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
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| Three months ended |
| Nine months ended |
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| Sep 30, |
| Sep 24, |
| Sep 30, |
| Sep 24, |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
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Net sales |
| $ | 3,279 |
| $ | 1,758 |
| $ | 9,330 |
| $ | 5,040 |
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Cost of sales |
| 1,770 |
| 984 |
| 4,570 |
| 2,910 |
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Gross profit |
| 1,509 |
| 774 |
| 4,760 |
| 2,130 |
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Gross margin |
| 46.0 | % | 44.0 | % | 51.0 | % | 42.3 | % | ||||
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Selling, general and administrative |
| 1,074 |
| 945 |
| 3,058 |
| 3,221 |
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Research and development cost |
| 487 |
| 435 |
| 1,530 |
| 1,514 |
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Restructuring charge |
| 0 |
| 40 |
| 0 |
| 106 |
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Total operating expenses |
| 1,561 |
| 1,420 |
| 4,588 |
| 4,841 |
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Operating income (loss) |
| (52 | ) | (646 | ) | 172 |
| (2,711 | ) | ||||
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Interest and other |
| (1,827 | ) | (346 | ) | (3,113 | ) | (890 | ) | ||||
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Net income (loss) |
| $ | (1,879 | ) | $ | (992 | ) | $ | (2,955 | ) | $ | (3,601 | ) |
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Net income (loss) per share: |
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Basic |
| $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.14 | ) |
Diluted |
| $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.14 | ) |
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Weighted average shares outstanding: |
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Basic |
| 31,141 |
| 26,187 |
| 28,619 |
| 25,776 |
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Diluted |
| 31,141 |
| 26,187 |
| 28,619 |
| 25,776 |
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Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
| Sep 30, |
| Dec. 31, |
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| 2006 |
| 2005 |
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Assets |
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Cash and cash equivalents |
| $ | 171 |
| $ | 77 |
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Accounts receivable, net |
| 2,494 |
| 1,661 |
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Inventories, net |
| 2,385 |
| 2,194 |
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Other current assets |
| 209 |
| 169 |
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Total current assets |
| 5,259 |
| 4,101 |
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Property, net |
| 108 |
| 148 |
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Debt issue costs and other, net |
| 298 |
| 297 |
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Total assets |
| $ | 5,665 |
| $ | 4,546 |
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Liabilities and Stockholders’ Deficit |
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Current liabilities |
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Accounts payable |
| $ | 350 |
| $ | 425 |
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Bank line of credit |
| 3,393 |
| 2,630 |
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Accrued liabilities |
| 1,151 |
| 1,101 |
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Current portions of long-term obligations |
| 2,054 |
| 133 |
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Total current liabilities |
| 6,948 |
| 4,289 |
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Long-term debt |
| 3,837 |
| 3,683 |
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10% senior subordinated convertible debt |
| — |
| 3,630 |
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Total stockholders’ deficit |
| (5,120 | ) | (7,056 | ) |
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Total liabilities and stockholders’ deficit |
| $ | 5,665 |
| $ | 4,546 |
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