Exhibit 99.1
FOR RELEASE ON FEBRUARY 23, 2005
Contact: Paul Nolan, CFO
Nanometrics, Inc.
408.435.9600 x122
NANOMETRICS ANNOUNCES RECORD FINANCIAL RESULTS FOR 2004
Milpitas, California, February 23, 2005 - Nanometrics Incorporated (NASDAQ:
NANO) today reported financial results for the fourth quarter and year ended on
January 1, 2005.
Total revenues for the fourth quarter of 2004 were $20.6 million, an increase of
2% compared to the third quarter of 2004 and an increase of 66% compared to the
fourth quarter of 2003. The increase in fourth quarter sales in 2004 resulted
from stronger demand for semiconductor process control metrology equipment
primarily in the U.S. and in Pacific Rim countries. The net income in the fourth
quarter of 2004 was $2.4 million or $0.18 per diluted share compared to a net
loss of $804,000 or $0.07 per diluted share for the same period last year.
For the year ended January 1, 2005, Nanometrics' revenues increased 70% to $70.7
million, which was a record for the company, compared to revenues of $41.6
million in 2003. Net income for the year ended January 1, 2005 was $5.0 million
or $0.38 per diluted share, compared to a net loss of $17.5 million or a loss of
$1.45 per diluted share in 2003. The net loss in 2003 includes a $6.0 million
charge to record a valuation allowance against deferred income tax assets, as
previously reported in the first quarter of 2003. The Company's financial
position continues to be strong with cash and equivalents and short-term
investments of $33.9 million and working capital of $69.9 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
February 23, 2005 at 8:00 A.M. Pacific Time. To participate in the earnings
conference call, the dial-in numbers are 800-561-2731 in the United States or
617-614-3528 for international calls. The passcode is 86564513.
NANOMETRICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except share amounts)
(Unaudited)
January 1, January 3,
2005 2004
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 15,949 $ 7,949
Short-term investments 17,919 21,943
Accounts receivable, net of allowances of $603 and $576 22,222 14,522
Inventories 25,494 24,264
Prepaid expenses and other 944 1,015
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Total current assets 82,528 69,693
PROPERTY, PLANT AND EQUIPMENT, Net 49,035 49,738
INTANGIBLE ASSETS 924 1,322
OTHER ASSETS 1,282 987
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TOTAL $ 133,769 $ 121,740
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,146 $ 2,047
Accrued payroll and related expenses 2,206 1,593
Deferred revenue 2,742 2,345
Other current liabilities 1,840 1,436
Income taxes payable 1,515 1,528
Current portion of debt obligations 1,164 1,157
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Total current liabilities 12,613 10,106
DEFERRED INCOME TAXES AND OTHER
LONG-TERM LIABILITIES 930 545
DEBT OBLIGATIONS 2,070 2,648
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Total liabilities 15,613 13,299
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SHAREHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares
authorized; 12,566,636 and 12,166,016 outstanding 104,191 101,099
Retained earnings 12,034 7,008
Accumulated other comprehensive income 1,931 334
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Total shareholders' equity 118,156 108,441
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TOTAL $ 133,769 $ 121,740
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NANOMETRICS INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
-------------------------- ----------------------------
January 1, January 3, January 1, January 3,
2005 2004 2005 2004
---------- ---------- ---------- -----------
NET REVENUES:
Product sales $ 18,702 $ 10,778 $ 62,911 $ 34,592
Service 1,884 1,609 7,784 7,010
---------- ---------- ---------- -----------
Total net revenues 20,586 12,387 70,695 41,602
---------- ---------- ---------- -----------
COSTS AND EXPENSES:
Cost of product sales 8,593 4,665 27,555 17,691
Cost of service 3,078 1,702 8,404 6,620
Research and development 3,310 3,200 12,827 13,399
Selling 2,490 3,031 11,442 11,496
General and administrative 1,110 1,225 5,137 4,689
---------- ---------- ---------- -----------
Total costs and expenses 18,581 13,823 65,365 53,895
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INCOME (LOSS) FROM OPERATIONS 2,005 (1,436) 5,330 (12,293)
OTHER INCOME (EXPENSE)
Interest income 102 167 276 397
Interest expense (32) (25) (110) (96)
Other, net 250 209 (44) 385
---------- ---------- ---------- -----------
Total other income, net 320 351 122 686
---------- ---------- ---------- -----------
INCOME (LOSS)
BEFORE INCOME TAXES 2,325 (1,085) 5,452 (11,607)
BENEFIT (PROVISION)
FOR INCOME TAXES 38 (281) (426) (5,860)
---------- ---------- ---------- -----------
NET INCOME (LOSS) $ 2,363 $ (804) $ 5,026 $ (17,467)
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NET INCOME (LOSS) PER SHARE:
Basic $ 0.19 $ (0.07) $ 0.41 $ (1.45)
========== ========== ========== ===========
Diluted $ 0.18 $ (0.07) $ 0.38 $ (1.45)
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SHARES USED IN PER SHARE
COMPUTATION:
Basic 12,495 12,122 12,320 12,043
========== ========== ========== ===========
Diluted 13,499 12,122 13,351 12,043
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