EXHIBIT 99.1
FOR RELEASE ON NOVEMBER 2, 2004
Contact: Paul Nolan, CFO
Nanometrics Incorporated
408.435.9600 x122
NANOMETRICS ANNOUNCES INCREASED SALES AND PROFITS FOR THE THIRD QUARTER OF 2004
Milpitas, California, November 2, 2004 - Nanometrics Incorporated (NASDAQ: NANO)
today reported improved financial results for the third quarter which ended on
October 2, 2004.
Total net revenues for the third quarter of 2004 were $20.2 million, an increase
of 25% compared to the second quarter of 2004 and an increase of 100% from the
third quarter of 2003. The increase in revenues during the third quarter of 2004
resulted from increased sales of the Company's advanced 300mm wafer measurement
equipment. Significant sales increases were experienced in both the U.S. and
Asia. Net income in the third quarter of 2004 was $2.6 million or $0.20 per
diluted share compared to a net loss of $3.0 million or a $0.25 loss per diluted
share for the same period last year.
For the nine months ended October 2, 2004, Nanometrics' total net revenues were
$50.1 million, an increase of 72% from the same period in 2003. Net income for
the first nine months of 2004 was $2.7 million, or $0.20 per diluted share
compared to a net loss of $16.7 million or a $1.39 loss per diluted share for
the same period in 2003. The net loss for the first nine months of 2003 includes
a $6.0 million charge to record a valuation allowance against deferred income
tax assets. The Company's financial position continues to be strong with cash
and short-term investments totaling $30.6 million and working capital of $64.5
million.
About Nanometrics: Nanometrics Incorporated is a leading supplier of advanced
integrated and standalone metrology equipment used in the semiconductor
industry. The Company's corporate office is located at 1550 Buckeye Drive,
Milpitas, CA 95035, with sales and service offices worldwide. Nanometrics is
traded on the NASDAQ National Market under the symbol NANO. Nanometrics' website
is http://www.nanometrics.com. An earnings conference call will be held on
November 2, 2004 at 8:00 a.m. (PT). To participate in the earnings conference
call, the dial-in number is 800-967-7140 in the United States and 719-457-2629
for international callers.
NANOMETRICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except share amounts)
(Unaudited)
October 2, January 3,
ASSETS 2004 2004
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CURRENT ASSETS:
Cash and cash equivalents $ 12,652 $ 7,949
Short-term investments 17,939 21,943
Accounts receivable, net of allowances of $581 and $576 20,948 14,522
Inventories 26,328 24,264
Prepaid expenses and other 863 1,015
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Total current assets 78,730 69,693
PROPERTY, PLANT AND EQUIPMENT, Net 48,434 49,738
INTANGIBLE ASSETS 1,017 1,322
OTHER ASSETS 1,217 987
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TOTAL $129,398 $121,740
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,374 $ 2,047
Accrued payroll and related expenses 2,327 1,593
Deferred revenue 5,085 2,345
Other current liabilities 1,582 1,436
Income taxes payable 1,638 1,528
Current portion of debt obligations 1,238 1,157
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Total current liabilities 14,244 10,106
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES 287 545
DEBT OBLIGATIONS 2,167 2,648
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Total liabilities 16,698 13,299
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SHAREHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares
authorized; 12,366,483 and 12,166,016 outstanding 102,649 101,099
Retained earnings 9,669 7,008
Accumulated other comprehensive income (loss) 382 334
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Total shareholders' equity 112,700 108,441
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TOTAL $129,398 $121,740
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NANOMETRICS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------ -----------------------------
October 2, September 27, October 2, September 27,
2004 2003 2004 2003
-------- -------- -------- --------
NET REVENUES:
Product sales $ 18,372 $ 8,514 $ 44,209 $ 23,814
Service 1,855 1,617 5,900 5,401
-------- -------- -------- --------
Total net revenues 20,227 10,131 50,109 29,215
-------- -------- -------- --------
COSTS AND EXPENSES:
Cost of product sales 7,637 4,539 18,962 13,026
Cost of service 2,067 1,425 5,326 4,918
Research and development 3,358 3,357 9,517 10,199
Selling 2,795 2,867 8,952 8,465
General and administrative 1,369 1,130 4,027 3,464
-------- -------- -------- --------
Total costs and expenses 17,226 13,318 46,784 40,072
-------- -------- -------- --------
INCOME (LOSS) FROM OPERATIONS 3,001 (3,187) 3,325 (10,857)
-------- -------- -------- --------
OTHER INCOME (EXPENSE)
Interest income 69 60 174 230
Interest expense (28) (24) (78) (71)
Other, net (109) 208 (294) 176
-------- -------- -------- --------
Total other income, net (68) 244 (198) 335
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INCOME (LOSS) BEFORE INCOME TAXES 2,933 (2,943) 3,127 (10,522)
PROVISION FOR INCOME TAXES (360) (53) (464) (6,141)
-------- -------- -------- --------
NET INCOME (LOSS) $ 2,573 $ (2,996) $ 2,663 $(16,663)
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NET INCOME (LOSS) PER SHARE:
Basic $ 0.21 $ (0.25) $ 0.22 $ (1.39)
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Diluted $ 0.20 $ (0.25) $ 0.20 $ (1.39)
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SHARES USED IN PER SHARE
COMPUTATION:
Basic 12,331 12,033 12,261 12,016
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Diluted 12,742 12,033 13,210 12,016
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