Exhibit 99.1
BTU International Reports Second Quarter 2003 Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--July 22, 2003--BTU
International, Inc. (Nasdaq NM: BTUI), the leading supplier of
advanced thermal processing equipment for semiconductor packaging,
surface mount, and advanced materials processing, today announced its
financial results for the second quarter ended June 29, 2003.
Net sales for the quarter were $7.1 million, up 4 percent compared
to $6.8 million in the preceding quarter, and down 24 percent compared
to $9.4 million recorded in the second quarter of 2002.
Net loss for the 2003 second quarter was $1.9 million, or $0.27
per share, compared to a net loss of $1.8 million, or $0.25 per share,
in the preceding quarter. The net loss reported in the second quarter
of 2002 was $1.5 million, or $0.21 per share.
Net sales for the six months ending June 29, 2003 were $14.0
million, compared to $17.9 million in the same period of last year.
The loss before restructuring was $3.6 million for the first half of
2003 compared to $3.6 million for the same period last year. The net
loss for the first six months was $3.6 million, or $0.52 per share,
compared to a loss of $2.8 million, or $0.40 per share for the first
six months of last year. The difference in tax benefit between the
respective periods of $0.7 million or $0.10 per share was due to the
availability of greater tax benefit in the first half of last year.
Mark R. Rosenzweig, president and CEO of BTU International said,
"Our quarterly revenues increased sequentially, primarily as a result
of increased sales in the surface-mount-technology (SMT) segment of
our business. However, quarterly margins were negatively impacted by a
change in product mix, and with a restructuring charge for workforce
reduction, the bottom line was slightly down from last quarter."
"In general, we see improving market forecasts, with significantly
increased interest on the part of our major customers, but this
increased interest is slow in turning into increased orders," said
Rosenzweig. "SMT business appears to be recovering, and both
semiconductor wafer bumping and wafer packaging are showing signs of
strength, especially in Asia where we are well positioned to take
advantage of any upturn. Construction of our new manufacturing
facility in China continues on schedule."
"We continue to fully fund our R&D projects with the goal to
complete our major projects in time to take full advantage of the
recovery in our markets. With the added scope from our Sagarus
acquisition in robotics and flux coating and our own internal
development, we will be offering an expanded line of products for all
our major market segments," said Rosenzweig. "At the same time, we
continue to exercise strict controls on expenditures and structure to
maintain the company's financial strength and flexibility to meet
customer demands."
BTU will be discussing its financial results, along with its
outlook for the third quarter of 2003, in a conference call tomorrow,
Wednesday, July 23, at 11:00 a.m. Eastern Time. A webcast of the
conference call will be available on BTU's website at www.btu.com or
at www.streetevents.com. Replays of the call will be available through
August 6, 2003, and can be accessed at these websites or by phone at
(888) 567-0671, pass code BTU.
About BTU International
BTU International, with world headquarters in North Billerica, MA,
is a market-leading supplier of advanced thermal processing equipment
to the semiconductor, electronics, and materials sectors. BTU
manufactures a wide range of equipment for semiconductor packaging
applications, including state-of-the-art systems for wafer bumping and
wafer-level packaging. The company also manufactures solder reflow
furnaces for printed circuit board assembly and advanced systems for
materials processing applications requiring high temperatures and
precise atmosphere control. BTU operates worldwide with direct sales
and service offices in the USA, Asia and Europe. Information about BTU
International is available on BTU's website at www.btu.com.
Safe Harbor Statement
This news release, other than historical financial information,
includes forward-looking statements that involve known and unknown
risks and uncertainties, including quarterly fluctuations in results.
Such statements are made pursuant to the "safe harbor" provisions
established by the federal securities laws, and are based on the
assumptions and expectations of the company's management at the time
such statements are made. Important factors that could cause actual
results to differ include the timely availability and acceptance of
new products, general market conditions governing supply and demand,
the impact of competitive products and pricing and other risks
detailed in the company's filings with the Securities and Exchange
Commission. Actual results may vary materially. Accordingly, you
should not place undue reliance on any forward-looking statements.
Unless otherwise required by law, the company disclaims any obligation
to revise or update such forward-looking statements in order to
reflect future events or developments.
BTU INTERNATIONAL, INC.
Consolidated Statements of Operations
(In thousands, except per share and share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
Net Sales $7,125 $9,360 $13,961 $17,868
Cost of Goods Sold 5,579 6,239 10,562 12,179
Gross Margin 1,546 3,121 3,399 5,689
Selling, General and
Administrative Expenses 2,554 3,835 5,304 7,419
Research, Development and
Engineering 826 911 1,648 1,858
Loss from Operations (1,834) (1,625) (3,553) (3,588)
Before Restructuring
Restructuring Charges 190 190
Loss from Operations (2,024) (1,625) (3,743) (3,588)
After Restructuring
Interest (Expense) Income, net (65) (39) (120) (77)
Other (Expense) Income, net 4 2 5 2
Loss Before Income Taxes (2,085) (1,662) (3,858) (3,663)
Income Tax Benefit (222) (197) (222) (897)
Net Loss ($1,863) ($1,465) ($3,636) ($2,766)
Loss Per Share:
Basic ($0.27) ($0.21) ($0.52) ($0.40)
Diluted ($0.27) ($0.21) ($0.52) ($0.40)
Weighted Average Number of
Shares Outstanding:
Basic 7,002,578 6,966,509 7,002,578 6,855,551
Diluted 7,002,578 6,966,509 7,002,578 6,855,551
BTU INTERNATIONAL, INC.
Consolidated Balance Sheets
(In thousands)
June 29, December 31,
2003 2002
(Unaudited)
Assets
Cash and Investments $7,900 $13,847
Accounts Receivable 5,897 4,532
Inventories 7,769 6,668
Other Current Assets 2,471 2,117
P.P. & E., net 3,651 4,037
Other Assets 822 313
$28,510 $31,514
Liabilities and Stockholders' Investment
Short-Term Debt $337 $329
Other Current Liabilities 6,316 5,424
Long-Term Debt 3,825 4,010
Long-Term Deferred Comp. 550 650
Stockholders' Investment 17,482 21,101
$28,510 $31,514
CONTACT: Company Contact:
BTU International, Inc.
Tom Kealy, 978/667-4111 Ext. 106
or
Agency Contact:
For BTU International
Bill Monigle, 603/424-1184