EXHIBIT 99
GENUS REPORTS FIRST QUARTER 2003 RESULTS
- COMPANY POSTS PROFIT OF $400,000, AND EPS OF $0.01 -
SUNNYVALE, CALIF. - APRIL 28, 2003 - Genus, Inc. (Nasdaq: GGNS) today reported
financial results for its first quarter ended March 31, 2003. Senior management
will conduct an investor conference call to discuss these results and the
company's financial outlook in more detail at 8.00 a.m. pacific time tomorrow,
Tuesday, April 29, 2003. Access information is provided below.
Net sales for the first quarter of 2003 were $17.7 million compared to net sales
of $9.6 million for the same quarter of 2002, and up sequentially from $11.3
million in the fourth quarter 2002. The net income for the first quarter 2003
was $0.4 million or $0.01 per diluted share compared to net loss of $3.8 million
or ($0.15) per share in the same quarter of 2002.
"As we move further into 2003, Genus' ALD products continue to gain acceptance
in the equipment marketplace," said Bill Elder, Genus' chairman and CEO. "During
the first quarter of 2003, Genus saw a significant increase in revenue
sequentially and compared with the previous year, allowing us to record a
profitable quarter. We executed well on greater than expected shipments, and
shipped our first 200/300 mm ALD bridge tool to a Korean IC manufacturer."
Elder continued, "In addition, the recently announced settlement in the patent
litigation with ASM International has validated the strength of our ALD
technology. In the settlement, Genus obtained royalty-free license to each of
the patents in dispute. The finality of this litigation will allow us to focus
on further penetration of the equipment market with Genus' ALD products and
gaining new customer orders for volume production in 2003."
Gross margin as a percentage of revenues was 35% in the first quarter of 2003
compared to 22% in the first quarter of 2002 reflecting higher volumes and
increased manufacturing efficiencies. Operating expenses, including research and
development and sales, general and administrative expenses were $5.3 million in
the first quarter of 2003, approximately $0.3 million below the level recorded
in the first quarter of 2002.
Genus ended the first quarter 2003 with cash and cash equivalents of $12.5
million up from $11.5 million as of December 31, 2002.
FINANCIAL GUIDANCE
Genus expects full year 2003 bookings to be in the range of $60 million to $70
million, and full year revenues to be in the range of $50 million to $60
million.
"Genus is well positioned globally with ALD customers in the Semiconductor and
Data Storage markets in the U.S., Asia and Europe, and we maintain our
expectation that the worldwide demand for ALD products will increase in 2003
over the previous year." Elder concluded.
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CONFERENCE CALL INFORMATION
Genus plans to host an investor conference call on Tuesday, April 29, 2003, at
11:00 a.m. eastern time, featuring remarks by Bill Elder, chairman and chief
executive officer, and Shum Mukherjee, executive vice president finance,
followed by a live question and answer session. The call will be accessible live
by dialing 888-803-6692.
The conference call will also be broadcast live over the Internet at
www.genus.com. A replay of the call will be available for 48 hours, beginning
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two hours after the call, by dialing 800-642-1687 and entering access code
9730613. A webcast replay will be available at www.genus.com.
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ABOUT GENUS
Genus, Inc. manufactures critical deposition processing products for the global
semiconductor industry and the data storage industry. To enable the production
of intricate micro computer chips and electronic storage devices, Genus offers
its LYNX series production-proven equipment for 200mm and 300mm semiconductor
production, and offers thin film deposition products for chemical vapor
deposition (CVD), atomic layer deposition (ALD), and pre-clean capabilities.
Genus is at the forefront of market and technology developments in the ALD
marketplace, which is gaining acceptance worldwide as a critical technology for
sub 0.13-micron production of computer chips and electronic storage devices.
Genus' customers include semiconductor manufacturers located throughout the
United States, Europe and the Pacific Rim including Korea, Japan and Taiwan.
Founded in 1981, the company is headquartered in Sunnyvale, California. For
additional information visit Genus' web site at www.genus.com. LYNX2(R) and
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LYNX3(TM) are trademarks of Genus, Inc.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding the company's
future financial and business performance. These forward-looking statements are
subject to a number of risks and uncertainties. These contingencies include but
are not limited to: actual customer orders received by the company, the extent
to which ALD technology is demanded by the marketplace, the actual number of
customer orders received by the company, the timing of final acceptance of
products by customers, the financial climate and accessibility to financing,
general conditions in the thin film equipment market and in the macro-economy,
and the influence of global political events. Genus assumes no obligation to
update this information. Additional risks and uncertainties are discussed in the
Management's Discussion and Analysis of Results of Operations contained in
Genus' Annual Report on Form 10-K for the fiscal year ended December 31, 2002
filed with the Securities and Exchange Commission.
COMPANY CONTACT: AGENCY CONTACT:
Shum Mukherjee Lillian Armstrong/Moriah Shilton
Genus, Inc. Lippert / Heilshorn & Associates
Tel: (408) 747-7120 Ext. 1311 Tel: (415) 433-3777 Ext. 114
Email: smukherjee@genus.com Email: moriah@lhai-sf.com
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- Tables to Follow -
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GENUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
2003 2002
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Net sales $ 17,695 $ 9,591
Costs and expenses:
Cost of goods sold. . . . . . . . . . . . . . 11,577 7,467
Research and development. . . . . . . . . . . 2,113 2,185
Selling, general and administrative . . . . . 3,174 3,436
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Income (loss) from operations . . . . . . . . . 831 (3,497)
Other expenses, net . . . . . . . . . . . . . . (423) (255)
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Income (loss) before income taxes 408 (3,752)
Provision for income taxes . . . . . . . . . . - -
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Net income/(loss) $ 408 $ (3,752)
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Net income (loss) per share:
Basic . . . . . . . . . . . . . . . . . . . . $ 0.01 $ (0.15)
Diluted . . . . . . . . . . . . . . . . . . . $ 0.01 $ (0.15)
Shares used in per share calculation - basic. . 28,913 25,249
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Shares used in per share calculation - diluted. 30,532 25,249
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GENUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2003 2002
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ASSETS
Current Assets:
Cash and cash equivalents . . . . . . . . . . . . . $ 12,483 $ 11,546
Accounts receivable (net of allowance for doubtful
accounts of $69 in 2003 and $69 in 2002). . . . . 14,050 7,505
Inventories . . . . . . . . . . . . . . . . . . . . 12,766 11,405
Other current assets. . . . . . . . . . . . . . . . 1,442 1,336
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Total current assets. . . . . . . . . . . . . . . 40,741 31,792
Equipment, furniture and fixtures, net 8,853 8,661
Other assets . . . . . . . . . . . . . . . . . . . . 1,238 1,057
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Total assets. . . . . . . . . . . . . . . . . . . $ 50,832 $ 41,510
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LIABILITIES
Current Liabilities:
Short-term bank borrowings. . . . . . . . . . . . . $ 10,074 $ 7,813
Accounts payable. . . . . . . . . . . . . . . . . . 7,109 6,498
Accrued expenses. . . . . . . . . . . . . . . . . . 3,974 3,064
Deferred revenue. . . . . . . . . . . . . . . . . . 8,099 2,713
Customer advances . . . . . . . . . . . . . . . . . 1,151 1,809
Long term liabilities, current portion. . . . . 253 245
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Total current liabilities. . . . . . . . . . 30,660 22,142
Convertible notes . . . . . . . . . . . . . . . . . . 5,451 5,301
Long-term liabilities . . . . . . . . . . . . . . . . 183 270
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Total liabilities . . . . . . . . . . . . . . . . 36,294 27,713
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SHAREHOLDERS' EQUITY
Common stock, no par value:
Authorized 50,000 shares;
Issued and outstanding 28,945 shares in
2003 and 28,621 in 2002 . . . . . . . . . . . . . 124,335 123,890
Accumulated deficit . . . . . . . . . . . . . . . . (107,401) (107,809)
Note receivable from shareholder. . . . . . . . . . (151) (151)
Accumulated other comprehensive loss. . . . . . . . (2,245) (2,133)
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Total shareholders' equity. . . . . . . . . . . . 14,538 13,797
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Total liabilities and shareholders' equity. . . . $ 50,832 $ 41,510
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