Genus (NASDAQ:GGNS)
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Genus Reports Third Quarter 2004 Results
SUNNYVALE, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Genus, Inc. (NASDAQ:GGNS)
today reported financial results for its third quarter and nine months ended
September 30, 2004. Senior management will conduct an investor conference call
to discuss these results and the company's financial outlook in more detail
today at 2 pm pacific time, Wednesday, November 3, 2004. Access information is
provided below.
Net sales for the third quarter of 2004 were $10.0 million compared to $9.1
million for the same quarter of 2003 and $8.8 million in second quarter of
2004. Net sales for the nine months ended September 30, 2004 were $30.9
million, down from $41.5 million for the nine months ended September 30, 2003.
The net loss for the third quarter 2004 was $3.9 million or ($0.10) per diluted
share compared to net loss of $2.8 million or ($0.09) per share in the same
quarter of 2003. Net loss in the third quarter of 2004 included $473,000 of
expenses related to the previously announced proposed merger with Aixtron. The
net loss for the nine months ended September 30, 2004 was $8.5 million or
($0.21) per diluted share compared to a net loss of $3.8 million or ($0.13) per
share for the nine months ended September 30, 2003.
"Although year to date results have been disappointing from a P&L standpoint,
customer activity gained momentum toward the end of the quarter for both our
chemical vapor deposition (CVD) and atomic layer deposition (ALD) product
offerings," commented Bill Elder, Genus chairman and CEO. "We have already
added two new customers this year."
Gross margin as a percentage of revenues was 21 percent for the third quarter
of 2004 compared to 23 percent for the same quarter of 2003. Gross margin as a
percentage of revenues was 29 percent, the same for both the nine months ended
September 30, 2004 and 2003. Research and development expenses were $2.1
million in the third quarter of 2004, $400,000 higher than expenses of $1.7
million in the third quarter of 2003, reflecting expenses related to additional
temporary headcount required to complete two important development programs on
ALD technology. Sales, general and administrative expenses (SG&A) were $3.1
million in the third quarter of 2004, $300,000 higher than SG&A expenses of
$2.8 million in the third quarter of 2003, primarily reflecting increased
expenses related to customer demo programs of $120,000 in the third quarter of
2004 and the recovery of $110,000 in bad debts in third quarter of 2003. In
addition, in the third quarter of 2004, Genus incurred merger related expenses
of $473,000.
Operating expenses, including research and development, sales, general and
administrative expenses and merger related expenses were $16.3 million for the
nine months ended September 30, 2004, compared to $14.6 million recorded for
the nine months ended September 30, 2003. For the nine months ended September
30, 2004, Genus incurred merger related expenses of $1.3 million.
Genus ended the third quarter of 2004 with cash, cash equivalents and
short-term investments of $33.9 million, compared with a balance of $41.6
million on December 31, 2003.
CONFERENCE CALL INFORMATION
Genus plans to host an investor conference call on Wednesday, November 3, 2004,
at 2 p.m. Pacific Time, featuring remarks by Bill Elder, chairman and CEO, and
Shum Mukherjee, executive vice president finance and CFO, followed by a live
question and answer session. The conference call will be accessible by dialing
888-803-6692 or 706-634-1030 and referencing call number 8959586. It will also
be broadcast live over the Internet at http://www.genus.com/.
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 StrataGem and LYNX 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 data storage
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 NINE MONTHS
ENDED ENDED
September 30, September 30,
2004 2003 2004 2003
Net sales $ 9,959 $ 9,107 $30,923 $41,541
Costs and expenses:
Cost of goods sold 7,886 7,049 21,842 29,438
Research and development 2,060 1,663 5,732 5,758
Selling, general and
administrative 3,111 2,800 9,262 8,842
Expenses related to
proposed merger 473 -- 1,294 --
Loss from operations (3,571) (2,405) (7,207) (2,497)
Interest expense (437) (411) (1,285) (1,318)
Other income, net 79 35 212 84
Loss before income taxes (3,929) (2,781) (8,280) (3,731)
Provision for (benefit from)
income taxes (25) 56 174 56
Net loss $(3,904) $(2,837) $(8,454) $(3,787)
Net loss per share -
basic and diluted $(0.10) $(0.09) $(0.21) $(0.13)
Shares used in per share
calculation - basic
and diluted 39,759 30,628 39,673 29,624
GENUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2004 2003
ASSETS
Current Assets:
Cash and cash equivalents $20,904 $41,608
Short term investments 13,015 --
Accounts receivable, net 6,857 9,606
Inventories 12,897 9,783
Other current assets 1,549 854
Total current assets 55,222 61,851
Equipment, furniture and fixtures, net 11,378 8,748
Other assets 681 1,169
Total assets $67,281 $71,768
LIABILITIES
Current Liabilities:
Short-term bank borrowings $7,500 $6,500
Accounts payable 5,774 4,956
Accrued expenses 3,521 4,130
Deferred revenue 433 331
Customer advances 2,080 372
Notes payable 47 249
7% convertible notes 6,368 --
Total current liabilities 25,723 16,538
7% convertible notes -- 5,806
Total liabilities 25,723 22,344
SHAREHOLDERS' EQUITY
Common stock, no par value:
Authorized 100,000 shares;
Issued and outstanding 39,759
shares at September 30, 2004
and 39,554 shares at
December 31, 2003 163,408 163,061
Accumulated deficit (119,782) (111,328)
Note receivable from shareholder -- (187)
Accumulated other comprehensive loss (2,068) (2,122)
Total shareholders' equity 41,558 49,424
Total liabilities and
shareholders' equity $67,281 $71,768
DATASOURCE: Genus, Inc.
CONTACT: Trine Pierik of Positio Public Relations, Inc.,
+1-408-453-2400, or , for Genus, Inc.; or Shum Mukherjee of
Genus, Inc., +1-408-747-7140, or
Web site: http://www.genus.com/