Exhibit 99.1
FOR RELEASE ON JULY 28, 2005
Contact: Paul Nolan, Chief Financial Officer
Nanometrics Incorporated
408.435.9600 x122
NANOMETRICS ANNOUNCES A PROFITABLE SECOND QUARTER OF 2005
Milpitas, California, July 28, 2005 - Nanometrics Incorporated (NASDAQ: NANO)
today reported financial results for the second quarter of 2005.
Total revenues for the second quarter of 2005 were $18.8 million, an increase of
16% compared to the second quarter of 2004. The increase in revenues during the
second quarter of 2005 compared to the same period in 2004 resulted from
increased demand for Nanometrics' semiconductor process control metrology
equipment, particularly in Taiwan. Net income in the second quarter of 2005 was
$4.7 million, or $0.35 per diluted share, compared to net income of $1.3
million, or $0.10 per diluted share, for the same period last year. The second
quarter results include receipt of a merger termination fee in the amount of
$8.3 million in connection with the termination of Nanometrics' merger agreement
with August Technology Corporation. The second quarter results also include a
$2.2 million charge for an asset impairment of certain assets in Nanometrics'
Japanese operations.
For the six months ended July 2, 2005, total net revenues were $42.3 million, an
increase of 42% from the same period in 2004. Net income for the first six
months of 2005 was $7.3 million, or $0.55 per diluted share, compared to net
income of $90,000, or $0.01 per diluted share, for the same period last year.
Nanometrics' financial position continues to be strong with cash and short-term
investments totaling $45.2 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 NASDAQ under the symbol NANO. Nanometrics' website is
http://www.nanometrics.com. An earnings conference call will be held on July 28,
2005 at 8:00 A.M. Pacific Time. To participate in the earnings conference call,
the dial-in numbers are 800-591-6923 in the United States or 617-614-4907 for
international calls. The passcode is 70223098.
NANOMETRICS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except share amounts)
(Unaudited)
July 2, January 1,
2005 2005
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 26,319 $ 15,949
Short-term investments 18,848 17,919
Accounts receivable, net of allowances of $596 and $603 24,499 22,222
Inventories 25,421 25,494
Prepaid expenses and other 877 944
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Total current assets 95,964 82,528
Property, plant and equipment, net 45,236 49,035
Intangible assets 771 924
Other assets 1,410 1,282
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TOTAL $143,381 $133,769
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,991 $ 3,146
Accrued payroll and related expenses 2,644 2,206
Deferred revenue 2,798 2,742
Other current liabilities 3,649 1,840
Income taxes payable 1,106 1,515
Current portion of debt obligations 2,248 1,164
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Total current liabilities 15,436 12,613
Deferred income taxes and other long-term liabilities 118 930
Debt obligations 1,668 2,070
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Total liabilities 17,222 15,613
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SHAREHOLDERS' EQUITY:
Common stock, no par value; 50,000,000 shares
authorized; 12,762,007 and 12,566,636 outstanding 105,494 104,191
Retained earnings 19,371 12,034
Accumulated translation adjustment 1,294 1,931
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Total shareholders' equity 126,159 118,156
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TOTAL $143,381 $133,769
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NANOMETRICS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
-------- -------- -------- --------
NET REVENUES:
Product sales $ 16,654 $ 14,174 $ 37,820 $ 25,837
Service 2,170 2,037 4,495 4,045
-------- -------- -------- --------
Total net revenues 18,824 16,211 42,315 29,882
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COSTS AND EXPENSES:
Cost of product sales 8,334 5,922 18,084 11,325
Cost of service 2,608 1,648 5,181 3,259
Research and development 3,656 2,670 6,835 6,159
Selling 2,824 3,091 5,969 6,157
General and administrative 2,400 1,363 4,398 2,658
Asset impairment 2,232 -- 2,232 --
Merger termination fee (8,300) -- (8,300) --
-------- -------- -------- --------
Total costs and expenses 13,754 14,694 34,399 29,558
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INCOME FROM OPERATIONS 5,070 1,517 7,916 324
OTHER INCOME (EXPENSE):
Interest income 193 49 323 105
Interest expense (17) (21) (35) (50)
Other, net (206) (182) (476) (185)
-------- -------- -------- --------
Total other income, net (30) (154) (188) (130)
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 5,040 1,363 7,728 194
PROVISION FOR INCOME TAXES (308) (61) (391) (104)
-------- -------- -------- --------
NET INCOME $ 4,732 $ 1,302 $ 7,337 $ 90
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NET INCOME PER SHARE:
Basic $ 0.37 $ 0.11 $ 0.58 $ 0.01
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Diluted $ 0.35 $ 0.10 $ 0.55 $ 0.01
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SHARES USED IN PER SHARE
COMPUTATION:
Basic 12,629 12,262 12,602 12,226
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Diluted 13,374 13,292 13,414 13,445
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