Aviza Tech (MM) (NASDAQ:AVZA)
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Aviza Technology, Inc. (NASDAQ:AVZA), a supplier of advanced
semiconductor capital equipment and process technologies for the global
semiconductor industry and related markets, today reported results for
the fourth quarter and year-end of fiscal year 2008, which ended on
September 26, 2008.
FISCAL YEAR 2008 FOURTH QUARTER FINANCIAL HIGHLIGHTS
Fourth quarter shipments were $35.5 million.
Fourth quarter net sales of $35.5 million were within the range of the
Company’s guidance of $35 million to $40 million for the quarter.
Fourth quarter gross margin improved to 36.5 percent from the third
quarter.
Fourth quarter net loss was $3.1 million, or ($0.14) per share.
Adjusted net income was $941,000, or $0.04 per share.
“We are pleased with our results for the fourth quarter, particularly
our improvement in net sales and gross margin, which is the highest
gross margin that the Company has achieved since becoming publicly
traded,” said Jerry Cutini, Aviza's president and chief executive
officer. “It is a reflection of our ongoing efforts to sustain our
financial performance in the face of an extremely challenging
macroeconomic environment which is expected to continue well into 2009.
We remain committed to focusing on our served market with single-wafer
products.”
FORECAST – FISCAL 2009 FIRST QUARTER ENDING DECEMBER 26, 2008
Aviza’s guidance for the first quarter of fiscal 2009 is predicated on
the Company’s continued focus on a shift in its product mix. Aviza
expects that first quarter net sales will be in the range of $25 million
to $32 million, with an adjusted net income of $50,000 to an adjusted
net loss of $4 million.
NON-GAAP FINANCIAL MEASURES
Aviza uses non-GAAP financial measures that are not intended to be used
in lieu of GAAP presentations, but are provided because we believe that
they provide additional information with respect to the performance of
our fundamental business activities and are also used by securities
analysts, investors and other interested parties to evaluate our
business on a comparable basis to other companies. The two non-GAAP
financial measures that we use are (i) Adjusted Net Income (Loss) and
(ii) Adjusted Net Income (Loss) Per Share. We believe that Adjusted Net
Income (Loss) and Adjusted Net Income (Loss) Per Share provide investors
with useful information about our operating results. We use Adjusted Net
Income (Loss) and Adjusted Net Income (Loss) Per Share to review and
assess our operating performance. Adjusted Net Income (Loss) and
Adjusted Net Income (Loss) Per Share also allow us to compare our
operating results with corresponding prior periods as well as with the
operating results of other companies in our industry.
Adjusted Net Income (Loss) is a non-GAAP financial measure that
represents GAAP Net Income (Loss) excluding the following items:
stock-based compensation, amortization expense, depreciation expense,
net interest expense, restructuring and other one-time charges, income
taxes and net other (income) expense. As we have substantial net
operating loss carryforwards, we have not included the impact of
additional income tax provisions in this calculation. Adjusted Net
Income (Loss) Per Share is a non-GAAP financial measure that represents
Adjusted Net Income (as defined above) divided by weighted average
number of shares outstanding for the period. A reconciliation of our
Adjusted Net Income (Loss) to GAAP Net Income (Loss), the most directly
comparable GAAP measure, is provided in the attached table.
Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share have
limitations as analytical tools, and you should not consider them in
isolation or as a substitute for net income (loss), earnings per share
and other consolidated income statement data prepared in accordance with
GAAP. We compensate for these limitations by relying primarily on our
GAAP results and using Adjusted Net Income (Loss) and Adjusted Net
Income (Loss) Per Share as supplemental information.
Unless otherwise specified, all references in this press release to
financial information are prepared in accordance with accounting
principals generally accepted in the United States.
CONFERENCE CALL INFORMATION
Aviza has scheduled a conference call today to discuss the Company's
financial results for the fiscal 2008 fourth quarter and year-end. 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. EST
/ 1:30 p.m. PST, log on to the Aviza website at www.aviza.com.
To access the live conference call today at 4:30 p.m. EST / 1:30 p.m.
PST, dial 303-262-2125 or 800-218-8862.
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 November 20 to November 23, 2008. You may
access the telephone replay by dialing 303-590-3000 or 800-405-2236 and
entering confirmation code 11121289#.
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 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). 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.
-tables follow-
AVIZA TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 26,
September 28,
2008
2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
14,896
$
23,087
Accounts receivable, net
31,580
37,202
Inventory
37,662
45,529
Prepaid expenses and other current assets
4,028
5,317
Total current assets
88,166
111,135
Property and equipment - net
24,443
31,781
Intangible and other assets
1,180
5,164
TOTAL
$
113,789
$
148,080
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Bank borrowing - short term
$
31,073
$
15,043
Accounts payable
22,127
22,536
Warranty liability
6,143
11,222
Accrued liabilities
18,073
13,391
Total current liabilities
77,416
62,192
NOTE PAYABLE - Long term
11,654
14,490
OTHER LIABILITIES- Long term
175
-
Total liabilities
89,245
76,682
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock
122,130
118,402
Accumulated deficit and accumulated other comprehensive loss
(97,586
)
(47,004
)
Total stockholders' equity (deficit)
24,544
71,398
TOTAL
$
113,789
$
148,080
AVIZA TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Quarter Ended
Fiscal Year Ended
September 26,
June 27,
September 28,
September 26,
September 28,
2008
2008
2007
2008
2007
NET SALES
$
35,496
$
33,505
$
50,184
$
133,189
$
231,435
COST OF GOODS SOLD - on net sales
22,242
22,490
34,619
90,050
159,922
COST OF GOODS SOLD - restructuring
294
-
-
13,323
-
Total cost of goods sold
22,536
22,490
34,619
103,373
159,922
GROSS PROFIT (LOSS)
12,960
11,015
15,565
29,816
71,513
OPERATING EXPENSES:
Research and development costs
6,570
7,337
8,086
29,927
31,901
Selling, general and administrative costs
7,426
9,001
9,270
35,510
34,116
Restructuring costs and other costs
1,840
-
-
9,632
-
Total operating expenses
15,836
16,338
17,356
75,069
66,017
INCOME (LOSS) FROM OPERATIONS
(2,876
)
(5,323
)
(1,791
)
(45,253
)
5,496
OTHER INCOME (EXPENSE):
Interest income
18
22
92
124
375
Interest expense
(518
)
(487
)
(468
)
(1,953
)
(3,445
)
Other income (expense) - net
19
15
11
68
(415
)
Total other income (expense)
(481
)
(450
)
(365
)
(1,761
)
(3,485
)
INCOME (LOSS) BEFORE INCOME TAXES
(3,357
)
(5,773
)
(2,156
)
(47,014
)
2,011
PROVISION FOR (BENEFIT FROM) INCOME TAXES
(244
)
(128
)
450
350
1,628
NET INCOME (LOSS)
$
(3,113
)
$
(5,645
)
$
(2,606
)
$
(47,364
)
$
383
Income (Loss) per share:
Basic
$
(0.14
)
$
(0.26
)
$
(0.12
)
$
(2.19
)
$
0.02
Diluted
$
(0.14
)
$
(0.26
)
$
(0.12
)
$
(2.19
)
$
0.02
Weighted average common shares:
Basic
21,856,473
21,856,473
20,845,315
21,657,357
18,824,561
Diluted
21,856,473
21,856,473
20,845,315
21,657,357
19,606,214
AVIZA TECHNOLOGY, INC.
RECONCILIATION TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET
INCOME (LOSS) PER SHARE
(in thousands, except share and per share amounts)
(unaudited)
Quarter Ended
September 26,
June 27,
September 28,
2008
2008
2007
NET INCOME (LOSS)
$
(3,113
)
$
(5,645
)
$
(2,606
)
Adjustments to reconcile net income (loss) to adjusted net income
(loss)
Stock-based compensation
$
438
$
456
$
518
Amortization expense (1)
75
76
117
Depreciation expense
1,170
1,226
1,221
Interest expense, net
500
465
376
Other (income) expense, net
(19
)
(15
)
(11
)
Restructuring and other costs
2,134
-
-
Income taxes
(244
)
(128
)
450
ADJUSTED NET INCOME (LOSS)
$
941
$
(3,565
)
$
65
Adjusted Income (loss) per share:
Basic
$
0.04
$
(0.16
)
$
0.00
Diluted
$
0.04
$
(0.16
)
$
0.00
Weighted average common shares:
Basic
21,856,473
21,856,473
20,845,315
Diluted
21,856,473
21,856,473
20,845,315
(1) Does not include the amortization of debt issuance costs of
$33,000, $33,000, and $33,000 during the three months ended
September 26, 2008, June 27, 2008 and September 28, 2007
respectively, which are included in interest expense, net.