EXHIBIT 99.1
BTU International Reports Third Quarter 2003 Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 16, 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 third quarter ended September 28, 2003.
Net sales for the quarter were $6.7 million, compared to $7.1 in
the third quarter of 2002. Net loss for the 2003 third quarter was
$1.6 million, or $0.23 per share, compared to a net loss of $1.7
million, or $0.24 per share in the third quarter of 2002.
Net sales for the nine months ending September 28, 2003 were $20.7
million, compared to $25.0 million in the same period of last year.
The net loss for the first nine months was $5.3 million, or $0.75 per
share, compared to a loss of $4.4 million, or $0.64 per share, for the
first nine months of last year.
"Net sales in the third quarter were, as expected, down slightly
compared to the second quarter, primarily due to weak sales early in
the summer," said Mark R. Rosenzweig, president and CEO of BTU
International. "The surface-mount-technology (SMT) area of our
business continued its recovery, but orders from the advanced
materials markets have not yet rebounded, and the resulting product
mix continues to put downward pressure on gross margins."
"Early recognition of the sales weakness in quarter three enabled
us to reduce operating costs significantly, primarily through a
temporary shortening of our workweek," said Rosenzweig. "Even with
lower sales, the company ended the quarter essentially cash neutral
and with an improved bottom line."
Commenting on the fact that the company's SMT and semiconductor
oriented businesses continue to be increasingly focused in Asia,
Rosenzweig said, "We are well positioned to take advantage of that
market strength, especially as our new manufacturing facility nears
completion in China. We expect to begin production in Shanghai in
early 2004 and plan to ramp output quickly with a corresponding
increase in quarter-on-quarter gross margins next year."
"Based on the improved activity in the later part of the third
quarter, we are back to full operations and expect improving sales in
the quarter ahead," added Rosenzweig.
BTU will be discussing its financial results, along with its
outlook for the fourth quarter of 2003, in a conference call to be
held tomorrow, Friday, October 17, 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 October 31, 2003, and can be accessed at these
websites or by phone at (800) 938-0996.
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 Nine Months Ended
--------------------- ---------------------
September September September September
28, 29, 28, 29,
2003 2002 2003 2002
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Net Sales $6,738 $7,100 $20,698 $24,968
Cost of Goods Sold 5,370 4,601 15,932 16,780
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Gross Margin 1,368 2,499 4,766 8,188
Selling, General and
Administrative
Expenses 2,165 3,409 7,468 10,828
Research, Development and
Engineering 745 903 2,393 2,761
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Loss from Ops Before
Restructuring (1,542) (1,813) (5,095) (5,401)
Restructuring Charges - 360 190 360
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Loss from Operations
After Restructuring (1,542) (2,173) (5,285) (5,761)
Interest (Expense) Income,
net (77) (38) (197) (115)
Other (Expense) Income,
net 2 11 7 13
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Loss Before Income Taxes (1,617) (2,200) (5,475) (5,863)
Income Tax Benefit - (539) (222) (1,436)
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Net Loss ($1,617) ($1,661) ($5,253) ($4,427)
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Loss Per Share:
Basic ($0.23) ($0.24) ($0.75) ($0.64)
Diluted ($0.23) ($0.24) ($0.75) ($0.64)
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Weighted Average Number of Shares
Outstanding:
Basic 7,030,140 6,910,226 7,011,834 6,873,843
Diluted 7,030,140 6,910,226 7,011,834 6,873,843
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BTU INTERNATIONAL, INC.
Consolidated Balance Sheets
(In thousands)
September December
28, 31,
2003 2002
(Unaudited)
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Assets
Cash and Investments $7,660 $13,847
Accounts Receivable 5,873 4,532
Inventories 7,320 6,668
Other Current Assets 687 2,117
Property, Plant and
Equipment, net 3,475 4,037
Other Assets 793 313
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$25,808 $31,514
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Liabilities and Stockholders' Investment
Short-Term Debt $4,085 $329
Other Current Liabilities 5,018 5,424
Long-Term Debt - 4,010
Long-Term Deferred Comp. 501 650
Stockholders' Investment 16,204 21,101
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$25,808 $31,514
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CONTACT: Company Contact:
BTU International, Inc.
Tom Kealy, 978-667-4111 Ext. 106
or
Agency Contact:
For BTU International
Bill Monigle, 603-424-1184