Exhibit 99.1
AMIS Holdings, Inc. Reports First Quarter 2005 Results
POCATELLO, Idaho--(BUSINESS WIRE)--April 28, 2005--AMIS Holdings,
Inc. (Nasdaq:AMIS):
-- Six month backlog increased seven percent sequentially
-- Refinancing to cut future interest expense in half
AMIS Holdings, Inc. (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 April 2, 2005.
Financial Results
First quarter 2005 revenue was $115.9 million, a decrease of six
percent sequentially and 10 percent below the first quarter of last
year. Gross margin for the first quarter of 2005 was 46.4 percent, a
decrease of 270 basis points sequentially, but an increase of 40 basis
points year over year.
Operating margin was 13.0 percent in the first quarter of 2005, an
increase of 210 basis points sequentially. Excluding amortization of
acquisition related intangibles and costs related to our previously
announced restructuring program, on a pro forma basis, operating
margin was 14.3 percent, a decrease of 480 basis points sequentially
and 320 basis points year over year.
The Company reported a net loss for the first quarter of 2005 of
$11.1 million, or $0.13 per share, compared to net income of $7.3
million, or $0.08 per diluted share for the fourth quarter of 2004 and
net income of $13.5 million or $0.16 per diluted share in the first
quarter of 2004. First quarter net income includes pre-tax charges of
$28.0 million relating to costs associated with the tender and
redemption of the Company's 10 3/4 percent senior subordinated notes
which was completed on April 1, 2005, and $6.8 million for the
write-off of deferred financing and other costs associated with the
prior senior credit facility and the notes. Excluding these charges
and other aforementioned items, pro forma net income in the first
quarter of 2005 was $10.6 million or $0.12 per diluted share, compared
to pro forma net income of $14.2 million or $0.16 per diluted share in
the fourth quarter of 2004 and pro forma net income of $13.6 million,
or $0.16 per diluted share in the first quarter of 2004.
"Market conditions were as difficult as expected in the first
quarter," said Christine King, president and chief executive officer.
"However we are encouraged by order strength we saw later in the
quarter. Our six month backlog increased seven percent to $108 million
in the first quarter, and we believe first quarter will represent the
trough in our quarterly revenues for the year."
Cash at the end of the first quarter was $87.3 million, a decrease
of $74.4 million sequentially, which includes a $75.8 million use of
cash to pay for costs associated with the tender, and a reduction in
long-term debt in conjunction with the refinancing. Capital
expenditures were $3.7 million.
Business Outlook
"We expect our second quarter 2005 revenue to be up two to five
percent as compared to first quarter," said David Henry, senior vice
president and chief financial officer. "We anticipate second quarter
gross margins to be flat to up 50 basis points sequentially. On a pro
forma basis, we expect operating margins will be flat to up 100 basis
points sequentially. Net interest expense for second quarter is
expected to be between $2.2 and $2.4 million, roughly half of first
quarter net interest expense as a result of our refinancing. We expect
pro forma diluted earnings per share in the second quarter to be in
the range of $0.12 to $0.14. We continue to expect capital
expenditures for 2005 to be approximately seven percent of annual
revenues. Depreciation and amortization is expected to be about $12.0
million in the second quarter."
Conference Call
President and CEO Christine King along with Senior Vice President
and CFO David Henry will conduct a conference call on April 28, 2005
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
will be available on the Company's Web site until close of business
May 12.
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 North America,
Europe and the Asia Pacific region. For more information, please visit
the AMIS Web site at http://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, risks
associated with international operations and the other risks and
uncertainties discussed in the Company's Form 10-K Annual Report for
the year ended Dec. 31, 2004, Form 10-Q Quarterly Reports and other
reports filed with the SEC. The Company does not intend 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
--------------------
April 2, March 27,
2005 2004
---------- ---------
Revenue $115.9 $128.3
Cost of revenue 62.1 69.3
---------- ---------
Gross profit 53.8 59.0
Operating expenses:
Research & development 21.0 19.6
Selling, general and administrative 16.2 17.0
Amortization of acquisition-related intangibles 1.2 0.2
Restructuring and impairment charges 0.3 --
---------- ---------
38.7 36.8
---------- ---------
Operating income 15.1 22.2
Non-operating expenses, net 39.4 4.8
---------- ---------
Income (loss) before income taxes (24.3) 17.4
Provision (benefit) for income taxes (13.2) 3.9
---------- ---------
Net income (loss) $(11.1) $13.5
========== =========
Earnings (loss) per share
Basic $(0.13) $0.16
Diluted $(0.13) $0.16
Weighted average shares
Basic 85.2 82.1
Diluted 85.2 86.3
Key Ratios & Information:
- -------------------------------------------------
Gross margin 46.4% 46.0%
Operating margin 13.0% 17.3%
AMIS Holdings, Inc.
Reconciliation of Operating Income to Pro Forma Operating Income
(In millions - Unaudited)
Three Months Ended
--------------------
April 2, March 27,
2005 2004
---------- ---------
Operating income $15.1 $22.2
Adjustments to reconcile operating income to pro
forma operating income:
Amortization of acquisition-related intangible
assets 1.2 0.2
Restructuring and impairment charges 0.3 --
---------- ---------
Pro forma operating income $16.6 $22.4
========== =========
AMIS Holdings, Inc.
Reconciliation of Net Income (Loss) to Pro Forma Net Income
(In millions - Unaudited)
Three Months Ended
--------------------
April 2, March 27,
2005 2004
---------- ---------
Net income (loss) $(11.1) $13.5
Adjustments to reconcile net income (loss) to pro
forma net income:
Amortization of acquisition-related intangible
assets 1.2 0.2
Restructuring and impairment charges 0.3 --
Costs associated with the tender of 10 3/4%
notes 28.0 --
Write-off of deferred financing and other costs 6.8 --
Related tax effects (14.6) (0.1)
---------- ---------
Pro forma net income $10.6 $13.6
========== =========
AMIS Holdings, Inc.
Pro forma Condensed Consolidated Statements of
Operations
(In millions - Unaudited)
Three Months Ended
--------------------
April 2, March 27,
2005 2004
---------- ---------
Revenue $115.9 $128.3
Cost of revenue 62.1 69.3
---------- ---------
Gross profit 53.8 59.0
Operating expenses:
Research & development 21.0 19.6
Selling, general and administrative 16.2 17.0
---------- ---------
37.2 36.6
---------- ---------
Pro forma operating income 16.6 22.4
Non-operating expenses, net 4.6 4.8
---------- ---------
Income before income taxes 12.0 17.6
Provision for income taxes 1.4 4.0
---------- ---------
Pro forma net income $10.6 $13.6
========== =========
Pro forma earnings (loss) per share
Basic $0.12 $0.17
Diluted $0.12 $0.16
Weighted average shares
Basic 85.2 82.1
Diluted 87.9 86.3
Key Pro Forma Ratios
- -------------------------------------------------
Pro forma gross margin 46.4% 46.0%
Pro forma operating margin 14.3% 17.5%
Pro forma condensed consolidated statements of operations are
presented because we use them as an additional measure of our
operating performance and we believe that these excluded charges
enhance comparability between current and prior periods. Pro forma net
income and pro forma earnings (loss) per share should not be
considered as alternatives to net income (loss), earnings (loss) per
share or other consolidated operations data prepared in accordance
with accounting principles generally accepted in the United States of
America, as indicators of our operating performance or as a measure of
liquidity.
AMIS Holdings, Inc.
Condensed Consolidated Balance Sheets
(In Millions)
April 2, December
31,
2005 2004
(unaudited)
----------- --------
Assets
- -------------------------------------------------
Current assets:
Cash and cash equivalents $87.3 $161.7
Accounts receivable, net 74.7 78.6
Inventories 54.0 52.2
Deferred tax assets 5.9 6.5
Prepaid expenses and other current assets 24.8 30.1
----------- --------
Total current assets 246.7 329.1
Property, plant and equipment, net 192.3 199.2
Goodwill, net 16.8 16.8
Other intangibles, net 33.7 35.1
Deferred tax assets 54.5 39.6
Other long-term assets 24.1 23.4
----------- --------
Total assets $568.1 $643.2
=========== ========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $2.1 $1.3
Accounts payable 34.8 37.6
Accrued expenses 47.3 62.4
Income taxes payable 2.0 1.3
----------- --------
Total current liabilities 86.2 102.6
Long-term debt, less current portion 207.9 252.2
Other long-term liabilities 2.6 2.4
----------- --------
Total liabilities 296.7 357.2
Stockholder's equity:
Common stock 0.8 0.8
Additional paid-in capital 532.4 530.6
Accumulated deficit (281.7) (270.6)
Deferred stock-based compensation (0.3) (0.4)
Accumulated other comprehensive income 20.2 25.6
----------- --------
Total stockholders' equity 271.4 286.0
Total liabilities and stockholders' equity $568.1 $643.2
=========== ========
AMIS Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In Millions)
Three Months Ended:
-----------------------
April 2, March 27,
2005 2004
(unaudited) (unaudited)
----------- -----------
Cash flows from operating activities
Net income (loss) $(11.1) $13.5
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 12.0 10.2
Write-off of deferred financing costs 6.7 --
Amortization of deferred financing costs 0.3 0.3
Stock-based compensation expense 0.1 0.1
Provision for (benefit from) deferred income
taxes (14.7) 0.1
Changes in operating assets and liabilities:
Accounts receivable 2.1 (10.2)
Inventories (2.8) 3.3
Prepaid expenses and other assets 5.4 0.9
Accounts payable and other accrued
expenses (14.5) (9.4)
----------- -----------
Net cash provided by (used in) operating
activities (16.5) 8.8
Cash flows from investing activities
Purchases of property, plant and equipment (3.7) (9.7)
Change in restricted cash (1.5) --
Change in other assets (5.0) --
----------- -----------
Net cash used in investing activities (10.2) (9.7)
Cash flows from financing activities
Payments on long-term debt (253.5) --
Proceeds from bank borrowings 210.0 --
Deferred financing costs (2.7) --
Proceeds from exercise of stock options 1.8 0.2
----------- -----------
Net cash provided by (used in) financing
activities (44.4) 0.2
Effect of exchange rate changes on cash and
cash equivalents (3.3) (1.7)
----------- -----------
Net decrease in cash and cash equivalents (74.4) (2.4)
Cash and cash equivalents at beginning of
period 161.7 119.1
----------- -----------
Cash and cash equivalents at end of period $87.3 $116.7
=========== ===========
CONTACT: AMI Semiconductor, Pocatello
Investor Relations:
Stephen Blake, 208-234-6077
stephen_blake@amis.com
or
Media Relations:
Tamera Drake, 208-234-6890
tamera_drake@amis.com