Micronic Announces Second Quarter Results.

Micronic Announces Second Quarter Results. Micronic Group, Second Quarter Report, April 1 - June 30, 2001. Täby, Sweden, July 19, 2001 - Micronic Laser Systems AB (Stockholm Exchange's "Attract 40 list": MICR) is at the forefront in semiconductor and display laser pattern generators for the production of photomasks to the worldwide electronics industry. Micronic today announces its second quarter results. (Figures in brackets relate to the period April 1 - June 30, 2000, if not otherwise stated). · Net sales increased by 18% to MSEK 158 (134). · Result after financial items was a loss of MSEK 16 (profit 5). · Order intake amounted to MSEK 173 (205). · Closing order book of MSEK 355 (388), all of which is expected to be delivered and invoiced during 2001. · The total number of employees was 330 (229) at the end of the quarter, the main part of the increase within R&D. "The semiconductor industry is currently experiencing a cyclical downturn", said Sven Löfquist, president and CEO of Micronic Laser System. "Micronic is effected by this downturn from the delay in order intake, that will mean a weak third quarter. However we will equal last year's sales and expect to report in black figures for the year 2001. More important is that we with our unique technology, our powerful investments in R&D and strong alliances with our customers and partners this year will form the foundation to meet the demands of the industry for improved and extended product range when the market turns up." "During the quarter, we entered into an alliance with ASML* to jointly develop new lithography tools. Micronic will through this agreement get unique possibilities together with a world leading company, to take full advantage of spatial light modulator (SLM) technology, including direct write applications." Key events in second quarter · Micronic Laser Systems AB and ASML Holding NV have reached agreement in principle to enter into a strategic alliance to enhance the companies' positions as leading suppliers of advanced lithography equipment to the display and semiconductor industries. In the framework of this alliance, the companies will enter a joint development program to develop new tools in the area of lithography applications. Also part of this agreement is an interest free convertible loan in the amount of MSEK 320, from ASML to Micronic. · The loan has a term of three years and can be converted into 1 million shares of Micronic upon the first request of ASML. · Micronic received significant orders from separate Asian companies. The value of the orders exceeds MSEK 150 in total. · The new 2200 m2 production facility, including a well-equipped process lab, was taken into operation in June. · Micronic Laser Systems, Inc. and Micronic Laser Systems AB, together with Etec Systems, Inc. have settled the litigation between the companies in the United States District Court for the Northern District of California. Terms of the settlement are confidential. Markets and Micronic products Semiconductors Semiconductor manufacturers are pushing aggressive die shrinks. Pilot production of chips with 130 nm feature sizes has begun. Micronic's two most advanced products for semiconductor photomask applications, the Sigma 7100 and the Omega 6600, each provide the technology needed to write the advanced photomasks for these chips. The Omega 6600 can produce masks for 130 nm semiconductors, while the Sigma7100 is capable of producing 100 nm semiconductor photomask resolution. Used together, the two tools form Micronic's Mix and Match pattern generation solution, which uses both tools to write masks as efficiently and cost-effectively as possible. Micronic received one order for an Omega 6500 during the period. The system will be delivered during the third quarter 2001. Displays Display manufacturers are aggressively seeking improved productivity and accuracy. They are currently investing in advanced production tools capable of writing larger and more accurate photomasks. Micronic's LRS 11000 is capable of meeting the most agressive TFT-LCD requirements. Micronic received a repeat order during the period for an advanced TFT- LCD pattern generator, LRS11000 to be delivered during fourth quarter 2001. Multi Purpose Multi purpose pattern generation systems are primarily used for electronic packaging applications. Electronic packaging companies are moving rapidly to wafer scale integration. This convergence is driving demand for Micronic's MP80+ tool. Order intake, invoiced sales and order backlog The order intake within the second quarter amounted to MSEK 173 (205), which consists of two new systems and service. Net sales for the second quarter amounted to MSEK 158 (134). Service accounted for MSEK 21 (15) during the period. Four systems were delivered. The closing order book amounted to MSEK 355 (388), all of which expects to be delivered and invoiced during 2001. Operating costs Operating costs for the quarter, including change of work in progress amounted to MSEK 186 (131). These costs include cost of sales MSEK 73, R&D MSEK 64, G&A MSEK 48 and a positive exchangedifference item of MSEK 11. The investments and research activities are mainly concentrated on the development of the first generation of Sigma7000 products and the continued development of the Omega 6600 product to meet customer´s needs for advanced photomask pattern generators. Property The expansion of facilities in Täby continues according to plan and will be completed by September 2001. The new production facility was taken into operation on June 5. Micronic is currently evaluating to sell and leaseback the completed property in Täby. Profitability The quarterly result after financial items was a loss of MSEK 16 (profit 5). Earnings per share The total number of shares in issue is 19,100,583. After full dilution, including warrants net after withdrawals, the company will have 20,793,733 shares in issue. Each share has a par value of SEK 1. Earnings per share, after tax and full dilution, were a loss of SEK 0,47 (0,23). The average number of outstanding shares is 20,413,953 Personnel The number of employees increased during the quarter from 323 to 330. A new stock option program for employees was launched during the period. The service organization continues to expand to meet the demands of the increased installed base. The number of employees outside of Sweden rose from 45 to 49 during the quarter. Capital expenditure The net capital expenditure during the period, MSEK 36 (6), relates mainly to investments in the parent company's property, MSEK 26, and in machinery, MSEK 8. Cash-flow During the interim period, liquid funds decreased by MSEK 152 (increase by 311) to MSEK 167 (394). Operations have consumed MSEK -65 (-132). Funds tied up in working capital (liquid funds excluded) have decreased by MSEK 7 (-111). Capital expenditure in fixed assets amounts to MSEK 86 (21). External funds supplied amount to MSEK -1 (464). Liquid funds and financial position The Group has a good financial position at the end of the quarter. The closing balance of funds amounted to MSEK 167 (394), excluding an unutilized overdraft facility. The closing equity ratio was 71 (72) %. Legal situation Micronic Laser Systems, Inc. and Micronic Laser Systems AB ("Micronic"), together with Etec Systems, Inc. settled the litigation between the companies in the United States District Court for the Northern District of California. Terms of the settlement are confidential. Future outlook The severity of the downturn in the semiconductor industry has now also impacted the need for advanced photomasks at 130 nm design node. Thus, the increasing demand for leading edge pattern generators has come to a stop and the focus has shifted onto 100 nm R&D. This slowdown has resulted in a reduced order intake during the second quarter for semiconductor pattern generators. The multipurpose segment for advanced packaging is tracking the semiconductor business development. The demand for advanced TFT-LCD photomasks continues, with the focus on high-end performance. The board's earlier estimate for 2001 of strong sales growth and an operating margin in line with the long-term target of 15% for the year 2001 has been adjusted. Based on the severity of this downturn, the board of directors estimates that the third quarter will be weak but that sales for 2001 will be in line with last year and that Micronic will report a positive net margin for the full year. The combination of Micronic's technology, strong partners and financial strength provides the company with a good platform from which to ride out this current market downturn. It also leaves Micronic well positioned to satisfy the future upturn in the market. Events of significant importance after second quarter An Extra ordinary General Meeting of shareholders was hold July 13. The EGM resolved in favor of the Board's proposal to issue convertible subordinate debentures of MSEK 320 to ASML Holding N.V. The convertible subordinate debentures - an interest free debenture can be converted to one million shares in Micronic Lasers Systems AB at conversion price of 320 SEK per share during a period up to July 31, 2004 - relates to the strategic alliance between ASML and Micronic Laser Systems AB. After full conversion of the convertible subordinate debentures ASML Holding N.V will hold shareholder position and voting power of 4.9%. ASML has subscribed for the convertible subordinate debenture. Miscellaneous Accounting rules and calculation methods are the same as in the Annual Report 2000. The calculation method for Q1 and Q2 year 2000 has been updated according to note in reported Financial statements. This interim report has not been subject to examination by the company's auditors. Future reports July - September 30th 2001 October 23 Täby, July 19, 2001 Micronic Laser Systems AB (publ.) Sven Löfquist, President and CEO. For further information, please contact: Thomas Warringer, CFO Tel: +46-8-638 52 00 e-mail: thomas.warringer@micronic.se Company contact: Agency contact: Thomas Warringer Dylan McGrath CFO The Loomis Group, Inc. Tel: +46 8 638 52 Tel: +1 408 363- 00 0797 thomas.warringer@mi dylan@loomisgrou cronic.se p.com Micronic Laser Systems AB is a Swedish high-tech company engaged in the development, manufacture and marketing of a series of extremely accurate laser pattern generators for the production of photomasks. The technology involved is known as microlithography. Micronic's systems are used by the world's leading electronics companies in the manufacture of television and computer displays, semiconductor circuits and semiconductor packaging components. Micronic is located in Täby, north of Stockholm and at present has subsidiaries in the United States and Japan and a service office in Taiwan. Micronic's net sales for 2000 amounted to MSEK 704 (MSEK 213 in 1999) and the company has 330 employees as per June 30. Micronic maintains a web site at: http://www.micronic.se *About ASML Holding NV: ASML, founded in 1984, is leading company in advanced lithography tools, photoresist processing tracks and thermal systems that are essential in the fabrication of integrated circuits. The company is publicly traded on both the Euronext Amsterdam N.V. and on the Nasdaq Stock Market under the symbol "ASML." The turnover for 2000 was approximately MEUR 2 200. The number of employees were approximately 4 400. Visit the company's web site at www.asml.com for more information. PROFIT AND LOSS ACCOUNTS SEK million GROUP PARENT GROUP PARENT COMPANY COMPANY Jan- Jan- Jan- Jan- Apr- Apr- Apr- Apr-Jun Jun Jun Jun Jun Jun Jun Jun 00 01 00 01 00 01 00 01 Net sales 274, 183, 242, 161, 157, 134, 138, 122,6 4 3 6 4 8 3 0 Change in work in 63,0 49,9 63,0 49,9 37,0 8,3 37,0 8,3 progress Other operating 17,0 0,0 17,0 0,0 11,0 0,0 11,0 0,0 income Operating costs - - - - - - - -130,2 incl. depreciation 404, 260, 388, 245, 222, 139, 214, 4 6 9 4 8 5 1 Operating - - - - - 2,9 - 0,5 profit/loss 50,0 27,5 66,3 34,1 17,0 28,1 Result from -0,5 3,3 -0,1 4,4 0,4 2,5 0,7 2,6 financial investments Profit/loss after - - - - - 5,4 - 3,0 financial items 50,5 24,2 66,4 29,8 16,6 27,4 Tax on profit of 17,4 8,3 18,6 8,3 6,8 -0,9 7,7 -0,9 the year Net profit/loss for - - - - -9,8 4,5 - 2,1 the year 33,1 15,9 47,8 21,4 19,7 - - -2,5 - - 0,24 - 0,12 Earnings/share 1,73 0,93 1,26 0,51 1,03 before dilution Earnings/share - - - - - 0,23 - 0,11 after dilution 1,63 0,88 2,35 1,18 0,47 0,95 No of shares before 19 17 19 17 19 18 19 18 507 dilution, thousands 101 045 101 045 101 507 101 No of shares after 20 18 20 18 20 19 20 19 600 dilution, thousands 304 138 304 138 414 600 414 BALANCE SHEET Group Parent Q INCOME STATEMENT Group company SEK million 30 31 30 31 SEK Apr- Apr- Jan- Jan- Ju De Ju Dec. million Jun Jun Mar Mar n. c. n. -00 01 00 01 00 -0 -0 -0 1 0 1 ASSETS Net sales 157 134 116 49, ,8 ,3 ,6 0 Fixed assets 18 11 18 112,5 Q on Q 35% 174 - 18% 8, 2, 8, % 68% 5 3 1 Y on Y 18% 65% 138 15% % Current assets Inventories 27 16 26 159,3 Cost of - - - - 3, 3, 4, Sales 73, 63, 64, 28, 2 9 5 2 6 2 1 Current 28 35 27 342,7 % of Net - - - - receivables 2, 0, 5, sales 46% 47% 55% 57% 0 2 2 Cash and bank 16 31 15 310,1 6, 8, 4, 8 7 1 Total current 72 83 69 812,1 Gross 84, 70, 52, 20, assets 2, 2, 3, Profit 6 6 4 9 1 7 8 Total assets 91 94 88 924,6 % of Net 54% 53% 45% 43% 0, 5, 1, sales 5 1 9 EQUITY AND R&D - - - - LIABILITIES 64, 40, 62, 32, 4 0 2 6 Equity % of Net - - - - sales 41% 30% 53% 67% Restricted equity 57 57 55 558,6 7, 9, 8, 2 9 6 Non-restricted 66 99 51 99,4 Sales, - - - - equity ,8 ,7 ,7 G&A 48, 25, 29, 17, 1 5 3 7 Total equity 64 67 61 658,0 % of Net - - - - 4, 9, 0, sales 30% 19% 25% 36% 0 5 3 Untaxed reserves 0, 0, 33 33,6 Other 11, - 6,0 - 0 0 ,6 Costs 0 2,2 1,0 % of Net 7% -2% 5% -2% sales Liabilities Provisions 10 10 0, 0,0 EBIT - 2,9 - - ,3 ,1 0 16, 33, 30, 9 1 4 Long-term interest- 53 54 49 50,2 % of Net - 2% - - bearing ,9 ,8 ,6 sales 11% 28% 62% liabilities Other liabilities 20 20 18 182,7 2, 0, 8, 3 6 5 Total liabilities 26 25 23 232,9 Interest 0,4 2,5 - 0,9 6, 5, 8, 0,9 5 4 0 Total equity and 91 94 88 924,6 % of Net 0% 2% -1% 2% liabilities 0, 5, 1, sales 5 1 9 Nettoomsä ttning KEY FIGURES Ja Ja Ja Jan- Pretax - 5,4 - - n- n- n- Jun. Profit 16, 34, 29, Ju Ju Ju -00 5 0 5 n. n. n. - -0 - 01 0 01 Profit margin - - - -19% % of Net - 4% - - 17 13 26 sales 10% 29% 60% % % % Return on - - - -5,9% shareholders 5, 4, 7, equity 0% 3% 3% Equity/total 71 72 72 74% Tax 6,8 - 10, 9,1 assets % % % 0,9 6 Equity/share 33 34 33 34,4 % of - - - - before dilution ,7 ,7 ,2 Pretax 41% 16% 31% 31% SEK Profit Average no. of 30 21 26 179 employees 9 7 6 Extraordi 0,0 0,0 0,0 0,0 nary IT Capital % of Net 0% 0% 0% 0% expenditure, gross sales Buildings 54 9, 54 9,0 ,2 0 ,2 Machinery and 28 8, 27 6,7 Rep Net - 4,5 - - equipment ,1 4 ,3 Profit 9,7 23, 20, 4 4 Intangible fixed 2, - 2, - % of Net -6% 3% - - assets 4 4 sales 20% 42% Values for Q1 and Q2 2000 updated: Depreciation Key figures related to balance items calculated on the situation per June 30, 2000 previously included in Other costs, now distributed to Cost of sales, R&D and Sales, G&A. CASH FLOW SEK million GROUP PARENT COMPANY Jan- Jan- Jan- Jan- Jun Jun Jun Jun 00 01 00 01 Cash flow from operations before change in working -53,2 -20,9 -66,2 -24,7 capital Change in working -11,7 - -5,3 -107,7 capital 110,8 Cash flow from -64,9 - -71,5 -132,4 operations 131,6 Cash flow from -86,3 -21,3 -83,9 -22,4 capital expenditure Cash flow from -0,7 464,3 -0,6 462,3 financing Increase/Decrease in - 311,3 - 307,5 liquid funds 151,9 156,0 Opening liquid funds 318,7 83,1 310,1 79,3 Closing liquid funds 166,8 394,4 154,1 386,8 EQUITY SEK million GROUP Jan- Jan- Jun Jun 00 01 Restr Non Total Restri Non Restricted Tota icted Restr cted Equity l Equit icted Equity y Equit y Opening balance 579,9 99,7 679,5 113,1 28,2 141, 3 New share issue net of issuance costs 468,2 468, 2 Currency differences -2,7 0,2 -2,5 1,2 -3,6 -2,4 Net profit for the -33,1 -33,1 -15,9 - year 15,9 Closing balance 577,2 66,8 644,0 582,5 8,7 591, 3 PARENT COMPANY Jan- Jan- Jun Jun 00 01 Restr Non Total Restri Non Restricted Tota icted Restr cted Equity l Equit icted Equity y Equit y Opening balance 558,6 99,5 658,0 90,4 24,2 114, 6 New share issue net of issuance costs 468,2 468, 2 Net profit for the -47,8 -47,8 -21,4 - year 21,4 Closing balance 558,6 51,7 610,3 558,6 2,8 561, 3 The same accounting principles have been applied in the quarterly closing as in the last annual reporting. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/19/20010719BIT00280/bit0001.doc http://www.waymaker.net/bitonline/2001/07/19/20010719BIT00280/bit0001.pdf