EXHIBIT 99.1
COMPANY CONTACT: AGENCY CONTACT:
Kim Murphy David Moreno
Genus, Inc. Mathews & Clark
Tel: (408) 747-7120 Tel: (408) 736-1120
Fax: (408) 747-7199 Fax: (408) 736-2523
e-mail: pr@genus.com e-mail: dmoreno@mathewsandclark.com
GENUS POSTS 1998 FINANCIAL RESULTS
SUNNYVALE, Calif., February 16, 1999 - Genus, Inc. (NASDAQ: GGNS),
announced today results for the fourth quarter and year end 1998. The Company
reported net sales of $5.1 million, compared to $20.9 million for the fourth
quarter of 1997. Net income for the fourth quarter of 1998 was $1.3 million or
$0.07 per share, compared to a net loss of $20.3 million or $1.20 per share for
the same quarter of 1997.
The Company's net sales for 1998 were $32.4 million and net loss was $29.5
million, resulting in a loss of $1.71 per share available to common
shareholders. In comparison, Genus' net sales for the previous year were $84.3
million and net loss was $19.3 million or $1.15 per share.
Kenneth Schwanda, Genus' vice president of finance, commented, "Genus
posted a $1.3 million profit for the quarter although operationally the company
incurred a loss of $830,000. This profit is attributed to non-recurring cost
reversals of $2.1 million related to inventory, warranty, and restructuring
charges. We exited the quarter maintaining our strong balance sheet and with
today's announcement of a multiple system order from a major DRAM manufacturer,
Genus is well positioned going into 1999."
"We are encouraged by the improving signs we are seeing in the
semiconductor marketplace," said William W.R. Elder, Genus' chairman and CEO.
"The multiple system order announced today confirms this trend. In addition,
Genus' new product announcements in the fourth quarter of 1998 position us
extremely well for the upturn projected by the industry analysts for the second
half of this year."
Founded in 1982, Genus, Inc. designs, manufactures and markets capital
equipment and deposition processes for advanced semiconductor manufacturing.
The Company's thin film deposition products are used worldwide to produce
integrated circuits for the data processing, communications, medical, military,
transportation and consumer electronics industries. Genus' customers include
semiconductor manufacturers located throughout the United States, Europe and the
Pacific Rim including Korea, Japan and Taiwan. Genus' headquarters are located
at 1139 Karlstad Drive, Sunnyvale, CA 94089; telephone (408) 747-7120; fax
(408) 747-7199. For the most up-to-date company, product and financial
information, visit Genus' web site at http://www.genus.com.
This release contains forward looking statements dependent on a number of
risks and uncertainties, including, but not limited to, retrenchment in the
semiconductor industry, general conditions in the Company's industry sector, and
the additional risks and uncertainties detailed under "Management's Discussion
and Analysis of Results of Operations and Financial Condition" contained in the
Company's Annual Report on Form 10-K/A for the fiscal year ended
December 31, 1997, and the Company's quarterly report on Form 10-Q for the
quarter ended September 30, 1998.
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Genus, Inc.
Condensed Consolidated Statement of Operations (Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
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Net sales $ 5,119 $ 20,879 $ 32,431 $ 84,286
Costs and expenses:
Cost of goods sold 3,271 14,885 26,029 54,762
Inventory and warranty reserve reversals (1,623) - (1,828) -
Research and development 1,134 3,012 8,921 12,327
Selling, general and administrative 1,862 7,912 14,115 20,326
Restructuring charge (509) - 12,707 -
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Income(loss) from operations 984 (4,930) (27,513) (3,129)
Other, net 318 (1,172) (86) (1,363)
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Income(loss) before income taxes 1,302 (6,102) (27,599) (4,492)
Provision for income taxes - 14,223 1 14,844
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Net income(loss) $ 1,302 $(20,325) $(27,600) $(19,336)
Deemed dividends on preferred stock $ - $ - $ (1,903) $ -
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Net income(loss) available to
common shareholders $ 1,302 $(20,325) $(29,503) $(19,336)
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Net income(loss) per common share available to
common shareholders and per common share assuming
dilution $ 0.07 $ (1.20) $ (1.71) $ (1.15)
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Shares used in per share calculations-basic 17,362 16,965 17,248 16,860
Shares used in per share calculations-diluted 18,106 16,965 17,248 16,860
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GENUS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
December 31, December 31,
1998 1997
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Assets
Cash and cash equivalents $ 8,125 $ 8,700
Accounts receivable, net 13,008 19,469
Inventories 5,338 28,986
Other current assets 379 1,029
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Total current assets 26,850 58,184
Property and equipment, net 4,659 15,276
Other assets, net 318 3,278
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Total assets $31,827 $76,738
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Liabilities, redeemable preferred stock,
and shareholders' equity
Short-term borrowings $ 4,000 $ 7,345
Other current liabilities 6,989 20,065
Long-term debt 114 971
Redeemable preferred stock 897 -
Shareholders' equity 19,827 48,357
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Total liabilities, redeemable preferred stock,
and shareholders' equity $31,827 $76,738
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