Exhibit 99.1
AMIS Holdings, Inc. Reports First Quarter Results
POCATELLO, Idaho--(BUSINESS WIRE)--April 29, 2004--AMIS Holdings, Inc.
(Nasdaq:AMIS)
-- Record revenue in first quarter
-- Gross margins for the quarter increased for the fifth consecutive
quarter, improving 470 basis points year over year
-- Fully diluted EPS for first quarter grew 33 percent to $0.16
AMIS Holdings, Inc. ("AMIS" or "Company") (Nasdaq:AMIS), parent company of
AMI Semiconductor, a leader in the design and manufacture of integrated
mixed-signal solutions, today reported results for the first quarter ended March
27, 2004.
Financial Results
First quarter 2004 revenue was $128.3 million, an increase of two percent
over the fourth quarter 2003 revenue and 25 percent above the first quarter of
last year. Gross margin for the first quarter of 2004 was 45.8 percent, an
increase of 50 basis points sequentially and 470 basis points year over year.
Operating income was $22.2 million for the first quarter of 2004, an
increase of 12 percent over fourth quarter operating income of $19.8 million.
Fourth quarter results included restructuring charges of $1.7 million. Excluding
these charges, operating income grew three percent sequentially. Operating
income grew 124 percent over the first quarter 2003 amount of $9.9 million.
Net income for the first quarter of 2004 was $13.5 million, or $0.16 per
fully diluted share, compared to net income of $3.4 million, or $0.04 per fully
diluted share for the fourth quarter and $1.8 million or $(0.30) per share for
the first quarter of 2003. There were no unusual items impacting net income in
the first quarter of 2004. Net income increased 297 percent over the fourth
quarter. Excluding the restructuring charges of $1.7 million, $10.3 million of
other expense related to the redemption of senior subordinated notes and the
related tax effects, net income in the fourth quarter would have been $10.5
million, or $0.12 per fully diluted share, resulting in the first quarter of
2004 having an increase of 33 percent over the fourth quarter. Net income grew
650 percent over the first quarter 2003 amount of $1.8 million. Excluding the
$4.5 million write off of deferred and other financing fees and the related tax
effects in the first quarter of 2003, net income would have been $4.4 million,
resulting in first quarter 2004 showing an increase of 207 percent over the
first quarter of 2003. First quarter 2003 earnings per share were impacted by a
preferred stock dividend.
"AMIS generated record-breaking revenue in the first quarter of 2004,
despite historical seasonal downward trends," said Christine King, president and
chief executive officer. "Our record revenue was driven by our integrated
mixed-signal product line, which increased 10 percent over the fourth quarter.
This growth was centered in the automotive, industrial and communications end
markets. As anticipated, our mixed-signal foundry services revenue decreased two
percent and structured digital products revenue decreased 10 percent
sequentially."
Operating cash flow for the first quarter was $8.8 million and capital
expenditures were $9.7 million. Cash at March 27, 2004 was $116.7 million.
"I am very pleased with our first quarter financial results," stated King.
"We continue to sustain our margin growth through operational efficiencies. Our
visibility improved during the first quarter. Our six-month backlog entering the
second quarter grew to $144 million, a 12.5 percent increase over the prior
period. This further demonstrates the predictability of our business model."
Business Outlook
"We expect our second quarter revenue to increase from three percent to
five percent over the first quarter 2004," said King. "Going into the second
quarter, we had approximately 85 percent of this revenue recorded in our
backlog. We anticipate gross margins to increase 50 basis points and operating
margins to improve 100 basis points over the first quarter, which will help
offset an anticipated increase in our effective tax rate to between 24 percent
and 26 percent in the second quarter. Our cash tax rate should be approximately
17 percent for the year. Fully diluted earnings per share is expected to
increase $0.01 sequentially to $0.17. Capital expenditures for the year are
planned to be approximately seven percent of annual revenues and are expected to
be weighted toward the first half of the year, as we expand the capacity of our
eight-inch fabrication facility. Depreciation and amortization will be about
$10.5 million in the second quarter."
Conference Call
President and CEO Chris King along with interim Chief Financial Officer
Michael Salvati and newly appointed CFO David Henry will conduct a conference
call on April 29, 2004 at 5 p.m. ET, to discuss the Company's earnings and
operations. Investors and other interested parties may listen to a live audio
webcast of the conference call by visiting the investor relations section of the
AMIS Web site at http://www.amis.com. A webcast replay is expected to be
available on the Company's Web site until close of business May 13.
About AMI Semiconductor
AMI Semiconductor (AMIS) is a leader in the design and manufacture of
silicon solutions for the real world. As a widely recognized innovator in
state-of-the-art integrated mixed-signal products, mixed-signal foundry services
and structured digital products AMIS is committed to providing customers with
the optimal value, quickest time-to-market semiconductor solutions. Offering
unparalleled manufacturing flexibility and dedication to customer service, AMI
Semiconductor operates globally with headquarters in Pocatello, Idaho, European
corporate offices in Oudenaarde, Belgium, and a network of sales and design
centers located in the key markets of the United States, Europe and the Asia
Pacific region. For more information, please visit the AMIS Web site at
www.amis.com.
Forward Looking Statements
Statements in this press release other than statements of historical fact
are "forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The Company's future results could differ
materially from the expectations discussed herein. Factors that could cause or
contribute to such differences include general economic and political
uncertainty, conditions in the semiconductor industry, changes in the conditions
affecting our target markets, manufacturing underutilization, fluctuations in
customer demand, raw material costs, exchange rates, timing and success of new
products, competitive conditions in the semiconductor industry, and risks
associated with international operations. For a more comprehensive discussion of
risks and uncertainties relating to our business, please read the discussions of
these risks in the Company's Form 10-K Annual Report filed with the SEC. The
Company undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of this press
release.
AMIS Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions - Unaudited)
Three Months Ended
--------------------------
Mar 27, Mar 29,
2004 2003
------------- ------------
Revenue
Integrated mixed-signal products $68.7 $56.8
Mixed-signal foundry services 31.7 26.0
Structured digital products 27.9 20.0
------------- ------------
Total revenue 128.3 102.8
Cost of revenue 69.5 60.5
------------- ------------
Gross profit 58.8 42.3
Operating expenses:
Research & development 19.6 18.0
Selling, general and
administrative 17.0 14.4
------------- ------------
36.6 32.4
------------- ------------
Operating income 22.2 9.9
Non-operating expenses, net 4.8 8.6
------------- ------------
Income (loss) before income taxes 17.4 1.3
Provision (benefit) for income taxes 3.9 (0.5)
------------- ------------
Net income (loss) $13.5 $1.8
============= ============
Earnings per share
Basic $0.16 $(0.30)
Diluted $0.16 $(0.30)
Weighted average shares
Basic 82.1 46.7
Diluted 86.3 46.7
Note: 2003 EPS is based on net loss
available to common shareholders
of approximately $14.0 million
Key Ratios & Information:
- ------------------------------------
Gross margin 45.8% 41.1%
Operating margin 17.3% 9.6%
Depreciation & amortization expense $10.2 $12.2
Capital expenditures $9.7 $1.9
Operating cash flow $8.8 $25.1
Three
Months
Ended
Dec 31,
Reconciliations: 2003
- ------------------------------------ -------
GAAP operating income $19.8
Restructuring charges 1.7
-------
Operating income excluding
restructuring charges 21.5
GAAP net income (loss) $1.8 $3.4
Restructuring charges - 1.7
Other income (expense) 4.5 10.3
Associated tax effects (1.9) (4.9)
------------ -------
Net income excluding restructuring charges, other
expense and associated tax effects $4.4 $10.5
============ =======
Earnings per share, excluding restructuring charges,
other expense and associated tax effects
Basic $0.09 $0.13
Diluted $0.09 $0.12
Weighted average shares
Basic 46.7 79.1
Diluted 46.7 86.4
AMIS Holdings, Inc.
Condensed Consolidated Balance Sheets
(In Millions)
Mar 27, Dec 31,
2004 2003
(unaudited)
------------------------------
Assets
- ---------------------------------------
Current assets:
Cash and cash equivalents $116.7 $119.1
Accounts receivable, net 82.3 73.6
Inventories 41.6 45.6
Other current assets 28.8 29.7
--------------- -------------
Total current assets 269.4 268.0
Property, plant and equipment, net 206.2 205.9
Other non-current assets, including
intangibles 74.2 76.2
--------------- -------------
Total assets $549.8 $550.1
=============== =============
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Accounts payable and other accrued
expenses $78.8 $90.0
Current portion of long-term debt 1.3 1.3
--------------- -------------
Total current liabilities 80.1 91.3
Long-term debt, less current portion 253.4 253.4
Other long-term liabilities 0.4 0.4
Stockholder's equity (deficit) 215.9 205.0
--------------- -------------
Total liabilities and stockholders'
equity (deficit) $549.8 $550.1
=============== =============
CONTACT: AMI Semiconductor
Investor Relations
Jimmie Hutchens, 208-234-6732
jimmie_hutchens@amis.com
or
AMI Semiconductor
Media Relations
Tamera Drake, 208-234-6890
tamera_drake@amis.com