UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 22, 2003
Commission File Number
0-25424
--------------------------
SEMITOOL, INC.
(Exact Name of Registrant as Specified in Its Charter)
Montana 81-0384392
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Semitool, Inc.
655 West Reserve Drive, Kalispell, Montana 59901
(406) 752-2107
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
Item 9. Regulation FD Disclosure and Disclosure of Results of Operations and
Financial Condition (Item 12)
The following information and exhibits relating thereto are furnished pursuant
to Items 9 and 12 of this Current Report on Form 8-K. On April 22, 2003,
Semitool (the "Company" issued a press release announcing the Company's earnings
for the fiscal quarter ended March 31, 2003. A copy of the press release is
attached hereto.
Semitool Announces Fiscal 2003 Second Quarter Results
KALISPELL, Mont.--(BUSINESS WIRE)--April 22, 2003--Semitool, Inc.
(Nasdaq:SMTL) today reported financial results for its fiscal 2003,
second quarter ended March 31, 2003.
Revenue for the second quarter was $35.6 million, up 17.6% from
$30.3 million in the first quarter and up 13.7% from $31.3 million for
the same quarter last year. The sequential revenue gain primarily
resulted from earlier than anticipated customer acceptances. Shipments
for the second quarter were $27.7 million. Net loss for the second
quarter was $2.5 million, or $0.09 per share, essentially unchanged
from the first quarter, but improved from last year's second quarter
net loss of $4.1 million, or $0.14 per share.
Revenue for the first half of fiscal year 2003 was $65.9 million
up from $58.1 million in the prior fiscal year's first half. The
company reported a fiscal 2003 first half net loss of $4.9 million, or
$0.17 per share compared to a net loss of $7.8 million or $0.27 per
share for the same period last year.
Second quarter gross margin sequentially improved to 45.7% from
43.2% in the first quarter. Offsetting the positive effect of the
gross margin improvement and higher sales were increased operating
expenses, which were principally higher sales costs associated with
Asian sales, and additional litigation expenses attributable to the
company's ongoing effort to protect its intellectual property.
New order bookings for the second quarter were $18 million. At
March 31, 2003, deferred revenue was approximately $22 million, and
the company's shipping backlog was slightly over $11 million. These
amounts reflect second quarter cancellations.
Cash, cash equivalents and marketable securities were $27.1
million at March 31, 2003, a decrease of $7.1 million from the end of
the first quarter. The decline is primarily attributable to the second
quarter's loss before income taxes and the company's investments in
laboratory equipment and inventory to support the introduction of its
newest single-wafer platform. In the second half of fiscal 2003,
Semitool anticipates receiving income tax refunds of approximately $11
million from fiscal 2002 net operating loss carrybacks.
Commenting on the quarter, Ray Thompson, chairman and chief
executive officer said, "Although our customers' capital budgets
remain modest, orders continue to be driven by the industry's needs
for enabling technology and for tools that offer lower cost of
operation. We are responding to those needs aggressively. In the third
quarter, we are introducing our next generation, Raider platform
system for single-wafer electroplating and wafer surface preparation.
Production of these systems has begun, and we expect to take orders
shortly for deliveries that could occur as early as our second half."
The company provided guidance for its fiscal third quarter, noting
that the ongoing weak worldwide economy and unpredictable world events
continue to hinder visibility. For its third fiscal quarter, Semitool
anticipates its revenue will range from $28 to $30 million and the
resulting net loss will be in the range of $0.05 to $.07 per share.
Shipments are expected to be approximately $20 million.
The Company believes that reporting quarterly shipments, a
non-GAAP financial measure of performance, assists our investors in
making additional relevant period-to-period comparisons.
Semitool will hold a conference call that will be broadcast via
the Internet at 5 p.m. Eastern time today. Access to the call is
available through the Semitool website at www.semitool.com, and
replays will be available at that location.
Safe Harbor Statement
The matters discussed in this news release include forward-looking
statements. These include, statements relating to (i) the anticipated
receipt of income tax refunds of approximately $11 million in the
second half of fiscal year 2003, (ii) the industry's need for enabling
technology and for tools that offer low cost of operation and that
these needs will continue to drive new orders, (iii) the expectation
that we will begin to take new orders shortly for our next generation,
single-wafer system for electroplating and wafer surface preparation
for deliveries that could occur as early as the second half of fiscal
2003, (iv) the expectation that our fiscal 2003 third quarter revenues
will range from $28 to $30 million and that the resulting net loss
will be in the range of $0.05 to $0.07 per share , and (v) the
expectation that third quarter shipments will be approximately $20
million. Our business in general is subject to risks and uncertainties
that could cause actual results to materially differ from those
projected in such forward-looking statements, including, but not
limited to, the cyclicality in the semiconductor industry, rapid
technological change, the introduction of competing products and
technologies and market non-acceptance of Semitool's new products and
new applications for existing products, as well as, other risk factors
related to our business contained in our most recent Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission. We cannot assure you that our anticipated quarterly
shipments, revenues and net loss for the fiscal 2003 third quarter
will be realized, or that we will achieve profitability in the near
future. Further, new order bookings, orders backlog and deferred
revenues are not necessarily indicative of future quarterly and annual
revenues. We assume no obligation to update forward-looking statements
that become untrue because of subsequent events.
About Semitool, Inc.
Semitool designs, manufactures and supports high performance,
single-wafer and multi-wafer batch wet chemical processing systems
used in the fabrication of semiconductor devices. The company's
primary suites of equipment include electrochemical deposition systems
for electroplating copper, gold, solder and other metals; surface
preparation systems for cleaning, stripping and etching silicon
wafers; and wafer transport container cleaning systems. The company's
equipment is used in semiconductor fabrication front-end and back-end
processes, including wafer level packaging.
Headquartered in Kalispell, Montana, Semitool maintains sales and
support centers in the United States, Europe and Asia. The company's
stock trades on the Nasdaq National Market under the symbol SMTL. For
more information, please visit the company's website at
www.semitool.com.
Semitool is a registered trademark of Semitool, Inc.
SEMITOOL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except for Per Share Amounts)
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2003 2002 2003 2002
------------- ------------ ---------- ----------
Net sales $ 35,621 $ 31,323 $ 65,912 $ 58,077
Cost of sales 19,345 16,361 36,562 30,670
------------- ------------ ---------- ----------
Gross profit 16,276 14,962 29,350 27,407
------------- ------------ ---------- ----------
Operating expenses:
Selling, general
and
administrative 15,265 15,730 27,690 28,647
Research and
development 4,945 6,199 9,885 11,960
------------- ------------ ---------- ----------
Total
operating
expenses 20,210 21,929 37,575 40,607
------------- ------------ ---------- ----------
Loss from operations (3,934) (6,967) (8,225) (13,200)
Other income
(expense), net (135) 353 285 615
------------- ------------ ---------- ----------
Loss before income
tax (4,069) (6,614) (7,940) (12,585)
Income tax benefit (1,546) (2,513) (3,017) (4,782)
------------- ------------ ---------- ----------
Net loss $ (2,523)$ (4,101) $ (4,923)$ (7,803)
============= ============ ========== ==========
Loss per share:
Basic $ (0.09)$ (0.14) $ (0.17)$ (0.27)
============= ============ ========== ==========
Diluted $ (0.09)$ (0.14) $ (0.17)$ (0.27)
============= ============ ========== ==========
Average common
shares:
Basic 28,435 28,407 28,431 28,396
Diluted 28,435 28,407 28,431 28,396
SEMITOOL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
March 31, September 30,
ASSETS 2003 2002
------------- -------------
Current assets:
Cash and cash equivalents $ 21,531 $ 34,265
Marketable securities 5,538 6,575
Trade receivables, net 25,931 33,908
Inventories 48,947 47,085
Prepaid expenses and other current
assets 29,674 26,167
------------- -------------
Total current assets 131,621 148,000
Property, plant and equipment, net 26,766 29,310
Other assets, net 7,173 6,353
------------- -------------
Total assets $ 165,560 $ 183,663
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ - $ 51
Trade accounts payable 13,799 15,894
Other current liabilities 30,271 41,058
------------- -------------
Total current liabilities 44,070 57,003
Long-term liabilities 4,775 5,238
------------- -------------
Total liabilities 48,845 62,241
------------- -------------
Shareholders' equity:
Common stock 47,402 47,376
Retained earnings 69,887 74,810
Accumulated other comprehensive
income (574) (764)
------------- -------------
Total shareholders' equity 116,715 121,422
------------- -------------
Total liabilities and
shareholders' equity $ 165,560 $ 183,663
============= =============
CONTACT: Semitool, Inc.
Bill Freeman, 406/752-2107
or
Investor Relations Partners, Inc.
Shellie Roth, 973/535-8389
roth@irpartners.com
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 thereunto duly authorized.
SEMITOOL, INC.
(Registrant)
Date: April 22, 2003 By: /s/William A. Freeman
------------------------------------------
William A. Freeman
Chief Financial Officer