EXHIBIT 99.1
BTU International Reports Third Quarter 2004 Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 21, 2004--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 October 3, 2004.
Net sales for the quarter were $15.4 million, up 129 percent
compared to $6.7 million recorded in the third quarter of 2003, and up
eight percent compared to $14.3 million in the preceding quarter.
Net loss for the 2004 third quarter was $2.4 million, or $0.33 per
basic share, including a one-time restructuring charge of $1.6
million, or $0.23 per basic share. Excluding the restructuring charge,
the net loss for the third quarter was $731,000, or $0.10 per basic
share. This compares to a net loss of $1.6 million, or $0.23 per basic
share, reported in the third quarter of 2003, and a net loss of
$892,000, or $0.12 per basic share in the preceding quarter.
Net sales for the first nine months of 2004 nearly doubled to
$41.0 million compared to $20.7 million in the same period last year.
Net loss for the nine months ended October 3, 2004, was $4.3 million,
or $0.59 per basic share, including the one-time restructuring charge
of $1.6 million, or $0.23 per basic share, mentioned above. Excluding
the restructuring charge, the net loss for the nine months ended
October 3, 2004, was $2.6 million, or $0.36 per basic share. This
compares to a net loss of $5.3 million, or $0.75 per basic share, for
the first nine months of 2003.
Paul van der Wansem, chairman, who took over as CEO on October
1st, said, "I look forward to resuming the primary leadership role in
the company and working with our management team to implement a
strategy for global success and return to profitability. To achieve
these goals, we will look to the fundamental strengths of the company
including: in-depth technological know-how, global engineering
capabilities and an outstanding reputation for quality and reliability
of our products in a strong world-wide customer base."
The company's quarterly results were negatively impacted by
restructuring charges due to the redirection of development programs,
resulting in the write-off in assets including the elimination of
goodwill in an acquisition, and the departure of the previous CEO.
"During the quarter, revenues from our surface mount assembly
systems were strong," said van der Wansem. "In addition, our bookings
in the advanced materials markets continued to grow. We are especially
pleased to have received a large order for the world's first fully
integrated fuel cell manufacturing line, as announced in September. We
believe we are particularly well positioned with our expertise and
products to take advantage of the developing market potential in the
solid oxide fuel cell (SOFC) industry."
Outlook
Regarding the company's outlook, van der Wansem said, "We see a
definite softening in the semiconductor-related markets we serve, but
we believe strength in our other markets will help to moderate the
immediate effect a slowdown may have on BTU. However, our medium term
visibility is not as clear as we would like it to be. We expect fourth
quarter revenues to be essentially flat compared to the third quarter
with a more favorable margin-product mix."
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its
outlook for the fourth quarter of 2004, in a conference call to be
held tomorrow, October 22, at 11:00 a.m. Eastern Time. A live 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 November 12, 2004, and can be accessed at these
websites or by phone at (888) 566-0831.
About BTU International
BTU International, with world headquarters in North Billerica,
Mass., 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 manufacturing
facilities in North Billerica, Mass. and Shanghai, China. The company
has direct sales and service offices in the USA, Asia and Europe.
Additional information about BTU International is available on BTU's
website at www.btu.com.
Safe Harbor Statement
This news release contains forward-looking statements, including
under the caption "Outlook", that involve known and unknown risks and
uncertainties. 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
--------------------- ---------------------
Oct. 3, Sept. 28, Oct. 3, Sept. 28,
2004 2003 2004 2003
- ---------------------------------------------------------------------
Net Sales $15,419 $6,738 $41,014 $20,698
Cost of Goods Sold 11,892 5,370 31,570 15,932
- ---------------------------------------------------------------------
Gross Margin 3,527 1,368 9,444 4,766
Selling, General and
Administrative
Expenses 3,228 2,165 8,965 7,468
Research, Development and
Engineering 890 745 2,788 2,393
- ---------------------------------------------------------------------
Loss from Ops Before
Restructuring (591) (1,542) (2,309) (5,095)
Restructuring Charges 1,648 - 1,648 190
- ---------------------------------------------------------------------
Loss from Operations
After Restructuring (2,239) (1,542) (3,957) (5,285)
Interest (Expense) Income,
net (140) (77) (297) (197)
Other (Expense) Income,
net - 2 3 7
- ---------------------------------------------------------------------
Loss Before Income Taxes (2,379) (1,617) (4,251) (5,475)
Income Tax Benefit - - - (222)
- ---------------------------------------------------------------------
Net Loss ($2,379) ($1,617) ($4,251) ($5,253)
=====================================================================
Loss Per Share:
Basic ($0.33) ($0.23) ($0.59) ($0.75)
Diluted ($0.33) ($0.23) ($0.59) ($0.75)
- ---------------------------------------------------------------------
Weighted Average Number of
Shares Outstanding:
Basic 7,196,023 7,030,140 7,181,381 7,011,834
Diluted 7,196,023 7,030,140 7,181,381 7,011,834
- ---------------------------------------------------------------------
Net Loss Reconciliations:
- ---------------------------------------------------------------------
Net Loss ($2,379) ($4,251)
Addback:
Restructuring
Charges 1,648 1,648
---------- ----------
Net Loss Before
Restructuring
Charges ($731) ($2,603)
========== ==========
Loss Per Share ($0.33) ($0.59)
Addback:
Restructuring
Charges per share (0.23) (0.23)
---------- ----------
Net Loss Before
Restructuring
Charges per share ($0.10) ($0.36)
========== ==========
BTU INTERNATIONAL, INC.
Consolidated Balance Sheets
(In thousands)
October 3, December 31,
2004 2003
(Unaudited)
- ----------------------------------------------------------------------
Assets
Cash and Investments $754 $6,659
Accounts Receivable 14,448 6,073
Inventories 14,498 7,795
Other Current Assets 686 469
Property, Plant and
Equipment, net 2,796 3,290
Other Assets 847 1,368
- ----------------------------------------------------------------------
$34,029 $25,654
======================================================================
Liabilities and Stockholders' Investment
Short-Term Debt $6,660 $360
Other Current Liabilities 11,141 4,576
Long-Term Debt 5,333 5,440
Long-Term Deferred Comp. 312 458
Stockholders' Investment 10,583 14,820
- ----------------------------------------------------------------------
$34,029 $25,654
======================================================================
CONTACT: BTU International, Inc.
Tom Kealy, 978-667-4111 Ext. 106
or
Bill Monigle Associates
Bill Monigle, 603-424-1184