Genus Reports First Quarter 2004 Results

Genus Reports First Quarter 2004 Results 


SUNNYVALE, Calif., April 20  /PRNewswire-FirstCall/ -- Genus, Inc.  today
reported financial results for its first quarter ended March 31, 2004.  Senior
management will conduct an investor conference call to discuss these results
and the company's financial outlook in more detail at 2 p.m. Pacific Time,
Tuesday, April 20, 2004.  Access information is provided below.

Net sales for the first quarter of 2004 were $12.2 million compared to net
sales of $17.7 million for the same quarter of 2003.  The net loss for the
first quarter 2004 was $1.7 million or $0.04 per diluted share compared to net
income of $0.4 million or $0.01 per basic and diluted share in the same quarter
of 2003.

"We are pleased with the continued expansion of our customer base as we added
two new customers during the first quarter of 2004, one for 300mm CVD and the
other for ALD," commented Bill Elder, Genus chairman and CEO.

Gross margin as a percentage of revenues was 30 percent for the first quarter
of 2004 compared to 35 percent for the same quarter of 2003. Operating
expenses, including research and development, sales, and general and
administrative expenses were $5.0 million or 41 percent of revenues in the
first quarter of 2004, as compared to $5.3 million or 30 percent of revenues in
the first quarter of 2003.

Genus ended the first quarter of 2004 with cash, cash equivalents and
short-term investments, net of short-term debt, of $36.4 million, up from
balance of $34.9 million at December 31, 2003.

Conference Call Information

Genus plans to host an investor conference call on Tuesday, April 20, 2004, at
2 p.m. Pacific Time, featuring remarks by Bill Elder, chairman and chief
executive officer, and Shum Mukherjee, executive vice president finance and
chief financial officer, followed by a live question and answer session. The
call will be accessible by dialing 888-803-6692 and referencing call number
6823192.

The conference call will also be broadcast live over the Internet at
http://www.genus.com/.  A replay of the call will be available for 48 hours,
beginning two hours after the call, by dialing 800-642-1687 or 706-645-9291 and
entering access code 6823192. A webcast replay will be available at
http://www.genus.com/ for 30 days after the conference call.

About Genus

Genus, Inc. manufactures critical deposition processing products for the global
semiconductor industry and the data storage industry.  To enable the production
of intricate micro computer chips and electronic storage devices, Genus offers
its LYNX and Stratagem series production-proven equipment for 200mm and 300mm
semiconductor production, and offers thin film deposition products for chemical
vapor deposition (CVD), atomic layer deposition (ALD), and pre-clean
capabilities.   Genus is at the forefront of market and technology developments
in the ALD marketplace, which is gaining acceptance worldwide as a critical
technology for sub 0.13-micron production of computer chips and electronic
storage devices.  Genus' customers include semiconductor and thin-film-head
manufacturers located throughout the United States, Europe and the Pacific Rim
including Korea, Japan and Taiwan. Founded in 1981, the company is
headquartered in Sunnyvale, California.  For additional information visit
Genus' web site at http://www.genus.com/.  LYNX2(R) and LYNX3(TM) are
trademarks of Genus, Inc.

Forward-Looking Statements

This press release contains forward-looking statements regarding the company's
future financial and business performance. These forward-looking statements are
subject to a number of risks and uncertainties. These contingencies include but
are not limited to: actual customer orders received by the company, the extent
to which ALD technology is demanded by the marketplace, the actual number of
customer orders received by the company, the timing of final acceptance of
products by customers, the financial climate and accessibility to financing,
general conditions in the thin film equipment market and in the macro-economy,
and the influence of global political events. Genus assumes no obligation to
update this information. Additional risks and uncertainties are discussed in
the Management's Discussion and Analysis of Results of Operations contained in
Genus' Annual Report on Form 10-K for the fiscal year ended December 31, 2003
filed with the Securities and Exchange Commission.

                       GENUS, INC. AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                  (in thousands, except per share data)

                                                     Three Months Ended
                                                          March 31,
                                                     2004           2003

  Net sales                                        $12,207        $17,695
  Costs and expenses:
      Cost of goods sold                             8,550         11,577
  Research and development                           1,994          2,113
  Selling, general and administrative                3,018          3,174

  Income (loss) from operations                     (1,355)           831
  Other expenses, net                                 (304)          (423)

  Income (loss) before income taxes                 (1,659)           408

  Provision for income taxes                            18             --

  Net income/(loss)                                $(1,677)          $408


  Net income (loss) per share:
      Basic                                         $(0.04)         $0.01
      Diluted                                       $(0.04)         $0.01

  Shares used in per share calculation -- basic     39,590         28,913
  Shares used in per share calculation -- diluted   39,590         30,532


                       GENUS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                              (in thousands)

                                                  March 31,     December 31,
                                                     2004          2003

  ASSETS
  Current Assets:
    Cash and cash equivalents                      $28,346        $41,608
    Short term investment                            8,275             --
    Accounts receivable (net of allowance
     for doubtful accounts of $ 160 in
     2004 and $ 0 in 2003)                           5,790          9,606
    Inventories                                     10,184          9,783
    Other current assets                               887            854
      Total current assets                          53,482         61,851
  Equipment, furniture and fixtures, net             8,435          8,748
  Other assets                                       1,112          1,169
      Total assets                                 $63,029        $71,768

  LIABILITIES
  Current Liabilities:
    Short-term bank borrowings                         $--         $6,500
    Accounts payable                                 4,030          4,956
    Accrued expenses                                 3,575          4,130
    Deferred revenue                                   207            331
    Customer advances                                  975            372
    Long term liabilities, current portion             183            249
      Total current liabilities                      8,970         16,538

  Convertible notes                                  5,970          5,806
      Total liabilities                             14,940         22,344

  SHAREHOLDERS' EQUITY
  Common stock, no par value:
      Authorized 100,000 shares;
       Issued and outstanding 39,620 shares
       in 2004 and 39,554 in 2003                  163,097        163,061
    Accumulated deficit                           (113,005)      (111,328)
    Note receivable from shareholder                    --           (187)
    Accumulated other comprehensive loss            (2,003)        (2,122)
      Total shareholders' equity                    48,089         49,424
      Total liabilities and shareholders' equity   $63,029        $71,768


DATASOURCE: Genus, Inc.



CONTACT:  Shum Mukherjee of Genus, Inc., [phone], ext. 1311, or





Web site:  http://www.genus.com/ 

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