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SCOTTS VALLEY, Calif., Aug 13, 2007 (BUSINESS WIRE) --
Aviza Technology, Inc. (NASDAQ: AVZA (changed to AVZAQ on June 19, 2009)), a supplier of advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets, today reported results for the third quarter of fiscal 2007, which ended June 29, 2007.
FINANCIAL HIGHLIGHTS - FISCAL 2007 THIRD QUARTER ENDED JUNE 29, 2007
-- Third quarter revenues of $57.4 million increased 31.5% over the same period a year ago.
-- Shipments for the third quarter of fiscal 2007 were $57.9 million.
-- Gross margin for the third quarter of 2007 improved to 31.7%.
-- Third quarter operating income of $1.9 million exceeded Company guidance.
-- Third quarter net income of $509,000 marks the Company's third consecutive quarter of net profitability.
-- Aviza reported third quarter basic earnings per share of $0.02.
Jerry Cutini, Aviza's President and CEO, said, "Results for the third quarter reflected a favorable product mix as well as continued execution on the Company's outsourced manufacturing strategy. We achieved our third consecutive quarter of net profitability, gross margins have sequentially improved and we exceeded our operating income guidance."
Cutini continued, "We continue to make substantial progress toward meeting our business goals and objectives. While the memory market undergoes a period of correction, a condition we believe to be temporary, we are keeping our eye on the longer term opportunities that we expect to emerge. We are encouraged to see customers' continued investments in development programs and R&D purchases, even though capacity additions are not at the levels previously seen over the last 3 - 4 quarters. In recent weeks we've seen an increase in quote activity, which typically precedes revenue by a few quarters."
BUSINESS HIGHLIGHTS - FISCAL 2007 THIRD QUARTER ENDED JUNE 29, 2007
-- Aviza received a multiple system order for its Omega i2L etch system from the world's largest semiconductor packaging and test company, Advanced Semiconductor Engineering Incorporated (ASE), headquartered in Taiwan. ASE selected the Omega platform for its ability to provide the process and technology solutions for all key etch steps to meet ASE's advanced packaging requirements. This order marks another design win for Aviza in deep silicon etch applications.
-- Aviza also received a multiple system order for its RVP-300plus(TM) thermal processing system from a leading foundry based in Taiwan. The customer will use the RVP-300plus systems for diffusion and low pressure chemical vapor deposition (LPCVD) applications to meet their high-volume DRAM device manufacturing requirements for the 90-nm and below geometries at their latest 300-mm manufacturing facility. This is a new 300-mm foundry customer for Aviza's Thermal Business Unit and represents a major customer win.
-- Aviza received a multi-system, multi-chamber order for its Celsior fxP single-wafer ALD system from a leading foundry in Taiwan. The foundry, a new ALD customer for Aviza, plans to utilize the Celsior fxP systems for high-volume DRAM device production at the 90-nm and below geometries. The tools will help support the foundry's technology requirements and capacity targets for its 300-mm fab.
FORECAST - FISCAL 2007 FOURTH QUARTER ENDING SEPTEMBER 28, 2007
The Company's guidance for the fourth quarter is predicated on a continued softness in the DRAM market. Aviza expects that revenues for the fourth quarter of fiscal 2007 will be in the range of $45 million to $50 million, with operating results expected to range from income of approximately $500,000 to a loss of approximately $1.5 million, excluding restructuring costs.
Management is taking action to reduce the Company's cost structure, including staff reductions. Cutini concluded, "These actions will not compromise our strategic initiatives and will improve the Company's long-term performance."
DEMAND NOTICE FOR REGISTRATION RIGHTS
Aviza also announced today that it has received registration demands from VantagePoint Venture Partners and Caisse de depot et placement du Quebec. Under the terms of their respective agreements, Aviza is obligated to file a registration statement registering their shares of Aviza common stock with the Securities and Exchange Commission.
CONFERENCE CALL INFORMATION
Aviza Technology has scheduled a conference call today to discuss the Company's financial results for the fiscal 2007 third quarter. The call will be hosted by Jerry Cutini, president and chief executive officer, and Patrick O'Connor, executive vice president and chief financial officer.
Investors will have the opportunity to listen to the conference call over the Internet. To listen to the live web cast today at 4:30 p.m. EDT / 1:30 p.m. PDT, log on to the Aviza website at www.aviza.com. To access the live conference call today at 4:30 p.m. EDT / 1:30 p.m. PDT, dial 303-262-2075 or 800-240-2430.
A digital replay will be available on Aviza's website at www.aviza.com under "Calendar of Events" in the "Investors" section of the website two hours after the conclusion of the conference call.
A telephone replay will also be available two hours after the conclusion of the conference call from August 13 to August 15, 2007. You may access the telephone replay by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11094672#.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These forward-looking statements are based on our management's current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. You should not rely upon these forward-looking statements as predictions of future events because we cannot assure you that the events or circumstances reflected in these statements will be achieved or will occur. These forward-looking statements include, but are not limited to, the statements made by Jerry Cutini and all statements containing the words "believes," "expects," "forecast," "may," "will," "should," "seeks," "intends," "plans," "estimates" or "anticipates" or the negative of these words and phrases or other variations of these words and phrases or comparable terminology. Many factors could cause our actual results to differ materially from those projected in these forward-looking statements, including, but not limited to: variability of our revenues and financial performance; risks associated with product development and technological changes; the acceptance of our products in the marketplace by existing and potential future customers; disruption of operations or increases in expenses due to our involvement in litigation or caused by civil or political unrest or other catastrophic events; general economic conditions and conditions in the semiconductor industry in particular; the continued employment of our key personnel and risks associated with competition. Some of these factors and other important factors are detailed in various Securities and Exchange Commission filings that we have made, particularly in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available from us without charge. Please review these filings and do not place undue reliance on these forward-looking statements. We assume no obligation to update these forward-looking statements.
About Aviza Technology, Inc.
Aviza Technology, Inc. designs, manufactures, sells and supports advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets. The company's systems are used in a variety of segments of the semiconductor market, such as advanced silicon for memory devices, advanced 3-D packaging and power integrated circuits for communications. Aviza's common stock is publicly traded on the NASDAQ Global Market (NASDAQ GM: AVZA (changed to AVZAQ on June 19, 2009)). Aviza is headquartered in Scotts Valley, Calif., with manufacturing, R&D, sales and customer support facilities located in the United Kingdom, Germany, France, Taiwan, China, Japan, Korea, Singapore and Malaysia. Additional information about the company can be found at http://www.aviza.com.
AVIZA TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
----------------------------------------------------------------------
June 29, September 29,
2007 2006
----------------------------------------------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 21,992 $ 10,722
Accounts receivable, net 41,478 26,763
Inventory 47,401 54,499
Prepaid expenses and other current assets 7,373 6,638
------------- -------------
Total current assets 118,244 98,622
Property and equipment - net 30,878 25,266
Intangible and other assets 4,813 5,218
------------- -------------
TOTAL $ 153,935 $ 129,106
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES:
Bank borrowing - short term $ 18,155 $ 28,632
Accounts payable 20,369 30,792
Warranty liability 12,025 10,816
Accrued liabilities 15,658 13,716
------------- -------------
Total current liabilities 66,207 83,956
------------- -------------
NOTE PAYABLE - Long term 15,014 6,256
------------- -------------
Total liabilities 81,221 90,212
------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock 117,876 88,657
Accumulated deficit and accumulated other
comprehensive loss (45,162) (49,763)
------------- -------------
Total stockholders' equity (deficit) 72,714 38,894
------------- -------------
TOTAL $ 153,935 $ 129,106
============= =============
AVIZA TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
----------------------------------------------------------------------
Quarter Ended
--------------------------------------
June 29, March 30, June 30,
2007 2007 2006
----------------------------------------------------------------------
NET SALES $ 57,421 $ 61,638 $ 43,662
COST OF GOODS SOLD 39,246 42,714 32,916
------------ ------------ ------------
GROSS PROFIT 18,175 18,924 10,746
------------ ------------ ------------
OPERATING EXPENSES:
Research and development
costs 8,101 8,011 6,547
Selling, general and
administrative costs 8,217 8,221 6,795
In-process research and
development - - (29)
------------ ------------ ------------
Total operating expenses 16,318 16,232 13,313
------------ ------------ ------------
INCOME (LOSS) FROM OPERATIONS 1,857 2,692 (2,567)
------------ ------------ ------------
OTHER INCOME (EXPENSE):
Interest income 146 110 79
Interest expense (663) (1,063) (1,424)
Other income (expense) - net (449) 11 16
------------ ------------ ------------
Total other income
(expense) (966) (942) (1,329)
------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME
TAXES 891 1,750 (3,896)
INCOME TAXES 382 395 70
------------ ------------ ------------
NET INCOME (LOSS) $ 509 $ 1,355 $ (3,966)
============ ============ ============
Income (Loss) per share:
Basic $ 0.02 $ 0.08 $ (0.27)
============ ============ ============
Diluted $ 0.02 $ 0.07 $ (0.27)
============ ============ ============
Weighted average common
shares:
Basic 20,763,221 17,538,955 14,667,980
============ ============ ============
Diluted 21,607,161 18,374,237 14,667,980
============ ============ ============
Nine Months Ended
------------------------
June 29, June 30,
2007 2006
----------------------------------------------------------------------
NET SALES $ 181,251 $ 108,846
COST OF GOODS SOLD 125,304 81,774
------------ -----------
GROSS PROFIT 55,947 27,072
------------ -----------
OPERATING EXPENSES:
Research and development costs 23,815 17,743
Selling, general and administrative costs 24,846 18,392
In-process research and development - 373
------------ -----------
Total operating expenses 48,661 36,508
------------ -----------
INCOME (LOSS) FROM OPERATIONS 7,286 (9,436)
------------ -----------
OTHER INCOME (EXPENSE):
Interest income 283 132
Interest expense (2,978) (4,166)
Other income (expense) - net (425) (129)
------------ -----------
Total other income (expense) (3,120) (4,163)
------------ -----------
INCOME (LOSS) BEFORE INCOME TAXES 4,166 (13,599)
INCOME TAXES 1,178 310
------------ -----------
NET INCOME (LOSS) $ 2,988 $ (13,909)
============ ===========
Income (Loss) per share:
Basic $ 0.16 $ (1.45)
============ ===========
Diluted $ 0.16 $ (1.45)
============ ===========
Weighted average common shares:
Basic 18,150,976 9,563,903
============ ===========
Diluted 18,964,575 9,563,903
============ ===========
SOURCE: Aviza Technology, Inc.
Aviza Technology, Inc. (Corporate Communications) Sherrie Gutierrez, Corporate Marketing Manager +1 831-439-6382 Fax: +1 831-439-6223 sherrie.gutierrez@aviza.com or Guerrant Associates (Investor Relations) Laura Guerrant, Principal +1 808-882-1467 Fax: +1 808-882-1267 lguerrant@guerrantir.com
Copyright Business Wire 2007
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