SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 30, 2003
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(Date of Report)
GENUS, INC.
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(Exact name of registrant as specified in its charter)
California 000-17139 94-2790804
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1139 Karlstad Drive
Sunnyvale, CA 94089
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408) 747-7120
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N/A
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(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(c) Exhibits
EXHIBIT NO. DESCRIPTION
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Exhibit 99 Press Release issued by Genus, Inc. on July 28, 2003
Item 12. Results of Operations and Financial Condition
The information in this Form 8-K, including the exhibit attached hereto, is
being furnished and shall not be deemed "filed" for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended.
On July 28, 2003, Genus, Inc. issued a press release announcing financial
results for its second fiscal quarter ended June 30, 2003 of its fiscal year
2003. The full text of the press release is attached as Exhibit 99 to this Form
8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 30, 2003 GENUS, INC.
By: /s/ Shum Mukherjee
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Shum Mukherjee
Chief Financial Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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Exhibit 99 Press Release issued by Genus, Inc. on July 28, 2003
EXHIBIT 99
GENUS REPORTS SECOND QUARTER 2003 RESULTS
SUNNYVALE, CALIF. - JULY 28, 2003 - Genus, Inc. (Nasdaq: GGNS) today reported
financial results for its second quarter and six months ended June 30, 2003.
Senior management will conduct an investor conference call to discuss these
results and the company's financial outlook in more detail at 8 a.m. pacific
time tomorrow, Tuesday, July 29, 2003. Access information is provided below.
Net sales for the second quarter of 2003 were $14.7 million compared to net
sales of $6.7 million for the same quarter of 2002, and up from $16.3 million
for six months ended June 30, 2002 to $32.4 million for the six months ended
June 30, 2003. The net loss for the second quarter 2003 was $1.4 million or
($0.05) per diluted share compared to net loss of $3.6 million or ($0.13) per
share in the same quarter of 2002. The net loss for the six months ended June
30, 2003 was $950,000 or ($0.03) per diluted share compared to a net loss of
$7.4 million or ($0.28) per share for the six months ended June 30, 2002.
"Atomic layer deposition (ALD) technology has now moved into volume production
in the semiconductor and thin film head markets, resulting in a significant
increase in revenues during the first half of this year. However, the
semiconductor market is still in recession, with recovery now expected late
2003, early 2004," said Bill Elder, Genus' chairman and CEO. "We continue to
push ALD migration with focus on the successful transition of our customers into
volume production."
"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.
\
Gross margin as a percentage of revenues was 27 percent for the second quarter
of 2003 compared to 23 percent for the same quarter of 2002, reflecting higher
volumes and increased manufacturing efficiencies. Gross margin as a percentage
of revenues was 31 percent for the six months ended June 30, 2003 compared to 23
percent for the six months ended June 30, 2002. Operating expenses, including
research and development, sales and general and administrative expenses were
$4.9 million in the second quarter of 2003, approximately $200,000 below the
level recorded in the second quarter of 2002. Operating expenses, including
research and development, sales and general and administrative expenses were
$10.1 million for the six months ended June 30, 2003, approximately $500,000
below the level recorded for the six months ended June 30, 2002.
Genus ended the first quarter 2003 with cash and cash equivalents of $10.9
million compared to $12.5 million as of March 31, 2003. Cash net of short-term
debt was $2.9 million on June 30, 2003, up $755,000 from the level of cash net
of short-term debt on March 31, 2003.
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FINANCIAL GUIDANCE
Based on the continued slow recovery of the semiconductor capital equipment
market and the uncertainty on the timing of the orders, Genus is revising its
booking guidance to the $45 million to $60 million range. Full year revenue
guidance is still in the $50 million to $60 million range.
CONFERENCE CALL INFORMATION
Genus plans to host an investor conference call on Tuesday, July 29, 2003, at
11:00 a.m. eastern time, featuring remarks by Bill Elder, chairman and CEO, and
Shum Mukherjee, executive vice president finance and CFO, 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
1882844. 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 STRATAGEM and 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.
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STRATAGEM, LYNX2(R) and 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:
Shum Mukherjee
Genus, Inc.
Tel: (408) 747-7120 Ext. 1311
Email: smukherjee@genus.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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
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Net sales. . . . . . . . . . . . . . . . . . . $14,739 $ 6,743 $32,434 $16,334
Costs and expenses:
Cost of goods sold . . . . . . . . . . . . 10,813 5,170 22,390 12,637
Research and development . . . . . . . . . 1,981 1,767 4,094 3,952
Selling, general and administrative. . . . 2,868 3,295 6,042 6,731
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Loss from operations . . . . . . . . . . . . . (923) (3,489) (92) (6,986)
Other income (expenses), net . . . . . . . . . (435) (32) (858) (287)
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Loss before income taxes . . . . . . . . . . . (1,358) (3,521) (950) (7,273)
Provision for income taxes . . . . . . . . . . 0 88 0 88
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Net loss . . . . . . . . . . . . . . . . . . . $(1,358) $(3,609) $ (950) $(7,361)
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Net loss per share:
Basic. . . . . . . . . . . . . . . . . . . $ (0.05) $ (0.13) $ (0.03) $ (0.28)
Diluted. . . . . . . . . . . . . . . . . . $ (0.05) $ (0.13) $ (0.03) $ (0.28)
Shares used in per share calculation - basic . 29,313 26,749 29,114 26,003
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Shares used in per share calculation - diluted 29,313 26,749 29,114 26,003
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GENUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2003 2002
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,944 $ 11,546
Accounts receivable (net of allowance for doubtful
accounts of $152 in 2003 and $69 in 2002) . . . . . . . . . . . . . . . . . . . . 7,817 7,505
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,625 11,405
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 947 1,336
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Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,333 31,792
Equipment, furniture and fixtures, net . . . . . . . . . . . . . . . . . . . . . . . 9,629 8,661
Other assets, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,289 1,057
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Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,251 $ 41,510
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LIABILITIES
Current Liabilities:
Short-term bank borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,773 $ 7,813
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,037 6,498
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,043 3,064
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,241 2,713
Customer advances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1,809
Long-term liabilities, current portion . . . . . . . . . . . . . . . . . . . . . . . 260 245
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Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,354 22,142
Convertible notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,491 5,301
Long-term liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 270
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Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,961 27,713
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SHAREHOLDERS' EQUITY
Common stock, no par value:
Authorized 100,000 shares on June 30, 2003; and 50,000 shares on December 31, 2002;
Issued and outstanding 29,757 shares in
2003 and 28,621 in 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,310 123,890
Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (108,759) (107,809)
Note receivable from shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . (151) (151)
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . (2,110) (2,133)
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Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,290 13,797
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Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . . $ 41,251 $ 41,510
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