Micronic meets the outlook and sees revovery in booking during the second quarter

Micronic meets the outlook and sees recovery in booking during the second quarter Micronic Group today announces its Second Quarter Report, April 1 -- June 30, 2002. Taby, Sweden, July 18, 2002 - Micronic Laser Systems AB (Stockholmsborsen´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. (Figures in brackets relate to the April 1-- June 30, 2001 period, if not otherwise stated) Net sales in the second quarter amounted to MSEK 218 (158). Second quarter results after financial items amounted to MSEK 4 (-17). Second quarter order intake of MSEK 209 (173). Closing order book MSEK 250 (355). ""During the second quarter Micronic has reached strong sales, in line with expectations, as well as strong order intake in a market that has not yet shown signs of recovery", says Sven Lofquist, president and CEO of Micronic Laser Systems and continues "The strong quarterly order intake proves that Micronic´s unique technology as well as its broad product range offer advanced solutions for present and future needs within the industry". Key events during the second quarter § Micronic received an order from Photronics, for a Sigma7000, with shipment in the third quarter. § § Micronic received an order for an advanced LRS11000 pattern generator from a major customer in Asia with delivery scheduled for the fourth quarter. In addition to this order the customer has an option for an extension of an existing system due in the fourth quarter. § Delivery of the first Sigma system took place, which is expected to have a significant impact on maskwriting in the semiconductor industry. § Micronic appointed Carl-Johan Blomberg to the position of Senior Vice President and CFO with responsibility for Micronic´s overall financial management. Markets and Micronic products Semiconductors In light of the world economy, the semiconductor industry recovery is mild at best and investments in capital equipment are especially being affected by the overall economic climate. Pressure from new designs will create demand for pattern generators beginning in the fourth quarter of 2002 and through 2003. Micronic´s customers have also indicated an increased need for capacity at the 130 nm technology node. Simultaneously, preparations for 100 nm production capability has began. Micronic judges the company is well positioned to meet these needs with the Omega6000 and Sigma7000 product lines. During the second quarter Micronic received an order for a Sigma7000 from Photronics and also delivered the first Sigma system to DuPont Photomasks. Display Capacity utilization in the flat panel display market was high during the first half of 2002. The display manufacturers are profitable and a number of new fabs are being built that will start production late 2002 and during 2003. The demand for photomasks is expected to increase when the fabs are starting up production. The order received for an advanced system in the LRS11000 series is in line with previous estimates of stable sales within the display pattern generator market, in line with last year. Multi Purpose Micronic´s pattern generators are well positioned for advanced electronic packaging requirements. The unstable situation in the semiconductor industry is also affecting electronic packaging. An increase in the semiconductor market is expected to influence the packaging market positively. The MP80+ is ideally positioned to meet the packaging demands of 300 mm substrates, as well as requirements for a variety of multi purpose applications. Direct Write The semiconductor industry and its fundamental problems with escalating costs for photomasks, was again in focus during the yearly Advanced Reticle Symposium. Micronic´s unique SLM technology makes it possible to develop a programmable stepper where pattern is transferred directly on to the wafer, without using photomasks. This tool could strongly contribute to the development of semiconductors for which the cost for photomasks now has become a barrier. Micronic continues the process to establish the form for co-operation with both semiconductor manufacturers and equipment suppliers, in order to develop the programmable stepper. Key financials Accounting principles In the interim report, covering the group, the parent company stands for more than 90 percent of net sales. Starting January 1, 2002, Micronic accounts for R&D expenses in accordance with the Swedish Financial Accounting Standards Council recommendation no 15, Intangible assets. Apart from this the same accounting principles and calculation methods are used as in the most recent annual report. Order intake and order backlog Order intake in the second quarter amounted to MSEK 209 (173), consisting of two new systems and service. Closing order book amounted to MSEK 250 (355), and is expected to be shipped and invoiced in the second half of 2002. Net sales Net sales for the second quarter reached MSEK 218 (158), including three systems and service. Operating costs Operating costs, including change of work in progress, amounted to MSEK 215 (175). These costs include cost of sales MSEK 111 (73), R&D MSEK 50 (64), G&A MSEK 44 (48) and other operating income/costs MSEK -10 (11), mainly exchange rate differences. After an individual valuation of all R&D projects, Micronic is accounting for R&D costs, amounting to MSEK 29, as intangible fixed assets. Other R&D costs, for the second quarter amounting to MSEK 50, has been accounted for as general R&D and is therefore accounted for as they occur. Out of this, MSEK 9 is related to direct write development. During the first six months in 2002, R&D costs, amounting to MSEK 48, has been accounted for as intangible fixed assets. Profitability The EBIT results were MSEK 2 (-17) while the results after financial items were MSEK 4 (-17). Had R&D costs been accounted for in accordance with former accounting principles, EBIT results would have been MSEK -26. Earnings per share The total number of shares issued are 19 215 283. After full dilution, including warrants net after withdrawals, the company will have 21 793 733 shares. Each share has a par value of SEK 1. Earnings per share, after tax and full dilution, were SEK 0.74 (-0.47). Capital expenditure Net investments on premises as well as in machinery and equipment amounted to MSEK 14. Investments in intangible assets related to R&D amounted to MSEK 29. Personnel During the second quarter the number of employees increased from 329 to 339. Cash-flow, liquid funds and financial position During 2002 so far liquid funds decreased by MSEK 207 (-152), totalling MSEK 346 at the end of the quarter, excluding an unutilised overdraft facility. Operations have used MSEK 60 (-53), while cash flow used for changes in working capital amounted to MSEK 81 (-12). Net capital expenditure amounted to MSEK 72 (86), and comes from additional investments on premises, machinery and equipment as well as intangible assets. Funds from external sources amounted to MSEK 6 (-1). The equity/assets ratio was 50 (71) percent at the end of the quarter. Future outlook The semiconductor market is still far from recovery. However, a recovery in the capital equipment industry is expected. Gartner Dataquest foresee a growth in the pattern generator market of more than 35 percent in 2003. The interest for Micronic´s technology continues to be strong and supports the outlook for the full year. The Board of Directors estimates that net sales for the full year will be in line with what is previously announced. Miscellaneous This interim report has not been subject to examination by the company´s auditors. Future reports 1 July -- 30 September 2002 October 23 Taby, 18 July, 2002 Micronic Laser Systems AB (publ.) Sven Lofquist, President and CEO For further information, please contact Sven Lofquist, President and CEO Tel: +46 8 638 52 00 e-mail: sven.lofquist@micronic.se Micronic Laser Systems 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 Taby, north of Stockholm and at present has subsidiaries in the United States and Japan and a service office in Taiwan. The company has 339 employees. Micronic maintains a web site at: http://www.micronic.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/07/18/20020718BIT00180/wkr0001.pdf The full report