Numerical Technologies Reports Fifth Consecutive Quarter of Record Revenues

199 Percent Year-Over-Year Growth in First Quarter 2001



Apr 12, 2001, 01:00 ET from Numerical Technologies, Inc.

    SAN JOSE, Calif., April 12 /PRNewswire/ --
 Numerical Technologies, Inc. (Nasdaq:   NMTC) today announced record revenues
 and continued profitability for its first fiscal quarter of 2001.
 First quarter revenues were a record $10.3 million, an increase of almost
 200 percent compared with the first quarter of last year and an increase of
 21 percent over the previous quarter. Excluding non-cash charges associated
 with acquisition-related costs, deferred stock compensation charges and
 depreciation charges, net income for the quarter was $657,000, or $0.02 per
 share, compared with a loss of $2.7 million for the same period last year.
     "This was the fifth consecutive quarter that we exceeded our stated
 revenue and earnings goals, and we continue to benefit from the increased
 industry-wide focus on advanced technology," stated Y. C. (Buno) Pati, CEO of
 Numerical Technologies. "This quarter, we remained focused on bringing
 chipmakers to full production with our technology. In addition, as chipmakers
 accelerated their production plans for high-performance and low-power
 subwavelength integrated circuits (ICs), we saw increasing demand for our
 design-to-silicon infrastructure products, which facilitate the widespread use
 of our subwavelength technologies."
     In this quarter, Numerical continued to add new customers to its list of
 chipmakers implementing Numerical's subwavelength technologies. UMC Corp.
 announced plans to use Virtual Stepper(TM) as its production standard for
 photomask signoff. Vitesse Semiconductor and Delphi Delco adopted Numerical's
 AbraCAD(TM) product for the automated development of the fundamental building
 blocks for IC design.
     Numerical has continued to aggressively build and strengthen its core
 technology and intellectual property (IP) position, resulting in numerous
 patent filings, new technology development partnerships and another
 record-breaking achievement in the fabrication of circuit components with
 optical lithography. In February, Numerical announced that it has partnered
 with IMEC, a leading European independent research center focused on the
 development and licensing of microelectronics, information and communications
 technologies, to incorporate its proprietary phase-shifting technology in the
 consortium's 193-nanometer lithography development program. MIT Lincoln
 Laboratories demonstrated the fabrication of 9 nanometer (0.009 micron)
 transistor gates using Numerical's phase shifting technology and 248-nanometer
 wavelength optical lithography. These results, which were presented at the
 SPIE Microlithography conference in February, beat the year-old record of
 25-nanometer transistor gates, which was also achieved at MIT Lincoln
 Laboratories.
     The company will discuss these results in a conference call at
 6 p.m. EDT/3 p.m. PDT today. The conference call may be accessed by calling
 913-981-4901 and asking for the Numerical Technologies earnings call. The call
 may also be accessed on the web at http://ir.numeritech.com . A replay of the
 conference call will be hosted for five business days at
 http://ir.numeritech.com , or may be accessed by dialing 719-457-0820 and
 using the access code 785046.
 
     About Numerical:
     Numerical Technologies, Inc. develops and markets proprietary technology,
 software tools and services that enable the semiconductor industry to produce
 subwavelength integrated circuits, i.e., integrated circuits with components
 smaller than the wavelength of light used to create circuit patterns on
 silicon.
     Numerical's products and industry alliances form a comprehensive
 design-to-silicon solution that enables the creation of smaller, faster and
 more power-efficient semiconductors using available manufacturing equipment.
 Numerical customers include the world's leading semiconductor companies,
 design automation tool vendors, semiconductor equipment suppliers and
 photomask manufacturers. Additional information about the company is available
 on the Web at http://www.numeritech.com .
 
     SAFE HARBOR:
     This release contains forward-looking statements that are made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. Forward-looking statements include statements related to the state of
 demand from the semiconductor industry, the adoption of Numerical's
 proprietary technology by the semiconductor industry, use of Numerical's
 technology by customers and Numerical's ability to enable the continued
 advance of the semiconductor industry. These forward-looking statements are
 subject to risks and uncertainties, which could cause actual results to differ
 materially from those projected. Those risks include competitive conditions,
 business and economic conditions that affect the growth of the semiconductor
 industry, the rate of adoption of Numerical's technology by the semiconductor
 industry, litigation related to intellectual property or other issues, and
 Numerical's ability to protect Numerical's intellectual property rights. For
 more information about potential factors, which could affect Numerical's
 financial results, please refer to the 10-K filed on March 27, 2001 and other
 filings with the Securities and Exchange Commission, copies of which may be
 accessed through the SEC's Web site at http://www.sec.gov/ . Numerical may,
 from time to time, make additional written and oral forward-looking
 statements, including statements contained in its filings with the Securities
 and Exchange Commission and its reports to shareholders. Numerical does not
 undertake to update any forward-looking statement that may be made from time
 to time by or on behalf of Numerical.
 
 
                           NUMERICAL TECHNOLOGIES, INC.
                                  BALANCE SHEETS
                                  (in thousands)
                                    (Unaudited)
 
                                                   March 31,     December 31,
                                                     2001           2000
 
 
     ASSETS
     Current assets:
       Cash                                         $29,869        $30,607
       Short-term investments                        24,821         23,281
       Accounts receivable                            6,002          4,983
       Prepaid and deposits                           2,902          3,177
             Total current assets                    63,594         62,048
 
     Property and equipment, net                      3,282          3,207
     Goodwill                                       163,775        175,402
     Other assets                                       422            315
                                                   $231,073       $240,972
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                              $3,057         $3,208
       Accrued expenses and other
        liabilities                                   4,493          4,608
       Deferred revenue                               7,700          6,320
             Total current liabilities               15,250         14,136
 
 
     Deferred tax liability                           6,789          7,704
 
 
     Stockholders' equity:
     Common stock                                         3              3
     Additional paid in capital                     319,879        319,541
     Receivable from stockholders                    (3,965)        (4,050)
     Deferred stock compensation                    (24,936)       (30,609)
     Accumulated deficit                            (81,947)       (65,751)
             Total stockholders' equity             209,034        219,134
                                                   $231,073       $240,974
 
 
                          NUMERICAL TECHNOLOGIES, INC.
                       PRO FORMA STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)
                                  (Unaudited)
 
                                                 Three Months Ended
 
                                         March 31,   December 31,  March 31,
                                           2001        2000          2000
 
     Revenue                            $10,320       $8,506        $3,456
 
     Costs and expenses:
       Cost of revenue                      923          946           334
       Research and development           3,893        3,392         2,592
       Sales and marketing                3,622        2,797         1,798
       General and administrative         1,647        1,128           885
           Total costs and expenses      10,085        8,263         5,609
 
     Income (loss) from operations          235          243        (2,153)
     Interest expense                        --           --          (700)
     Other income, net                      860        1,000           143
     Income (loss) before provision for
      income taxes                       $1,095       $1,243       $(2,710)
 
      Proforma provision for income
       taxes                                438          146            --
 
     Pro forma net income (loss)           $657       $1,097       $(2,710)
 
     Pro forma net income (loss) per
      share
       Basic                              $0.02        $0.04        $(0.36)
       Diluted                            $0.02        $0.03        $(0.36)
 
     Weighted average number of shares
      outstanding:
       Basic                             29,657       28,263         7,570
       Diluted                           34,552       33,435         7,570
 
     Notes:
 
     1. Pro forma net income (loss) shown above excludes the effect of
        non-cash items including 1) amortization of goodwill and
        other acquisition-related intangibles of $11.9 million, $11.8 million
        and $4.8 million in the three months ended March 31, 2001,
        December 31, 2000 and March 31, 2000  respectively; 2) Amortization of
        deferred stock compensation of  $5.7 million, $3.2 million and
        $5.2 million in the three months ended March 31, 2001,
        December 31, 2000, and March 31, 2000 respectively; 3) Depreciation
        expense of $443,000, $389,000, and $219,000 in the three months ended
        March 31, 2001, December 31, 2000 and March 31, 2000 respectively.
     2. Proforma tax provisions exclude the benefit associated with the
        amortization of intangible assets.
     3. This pro forma information is not prepared in accordance with
        generally accepted accounting principles.
     4. A reconciliation from pro forma net income (loss) to the reported
        results is shown in the next table.
     5. For period presented with a loss, all common stock equivalents are
        excluded from the computation of diluted shares
        outstanding because their effect is antidilutive.
 
 
                           NUMERICAL TECHNOLOGIES, INC.
        RECONCILIATION OF PRO FORMA NET INCOME (LOSS) TO REPORTED RESULTS
                       (in thousands, except per share data)
                                   (Unaudited)
 
                                                  Three Months Ended
 
                                         March 31,   December 31,    March 31,
                                           2001          2000          2000
 
     Proforma income (loss) before
      provision for income taxes          $1,095        $1,243       $(2,710)
 
       Amortization of intangible assets  11,927        11,790         4,793
       Amortization of deferred stock
        compensation                       5,732         3,160         5,217
       Depreciation                          443           389           219
 
     Loss before provision for income
      taxes                              (17,007)      (14,096)      (12,939)
 
     Provision for income taxes             (811)          146
 
     Net loss                           $(16,196)     $(14,242)     $(12,939)
 
 
     Net loss per common shares, basic
      and diluted                         $(0.55)       $(0.50)       $(1.71)
 
     Weighted average common shares,
      basic and diluted                   29,657        28,263         7,570
 
 
                          NUMERICAL TECHNOLOGIES, INC.
                            STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)
                                   (Unaudited)
 
                                                 Three Months Ended
 
                                        March 31,    December 31,    March 31,
                                          2001          2000           2000
 
     Revenue                            $10,320        $8,506        $3,456
 
     Costs and expenses:
       Cost of revenue                      923           946           334
       Research and development           3,893         3,392         2,592
       Sales and marketing                3,622         2,797         1,798
       General and administrative         1,647         1,128           885
       Amortization and depreciation     12,370        12,179         5,012
       Amortization of deferred stock
        compensation (*)                  5,732         3,160         5,217
           Total costs and expenses      28,187        23,602        15,838
 
     Loss from operations               (17,867)      (15,096)      (12,382)
     Interest expense                        --            --          (700)
     Other income, net                      860         1,000           143
     Loss before provision for income
      taxes                             (17,007)      (14,096)      (12,939)
 
     Provision for income taxes            (811)          146            --
 
     Net Loss                          $(16,196)     $(14,242)     $(12,939)
 
     Net loss per common shares, basic
      and diluted                        $(0.55)       $(0.50)       $(1.71)
 
     Weighted average common shares,
      basic and diluted                  29,657        28,263         7,570
 
 
     (*) Amortization of deferred stock
          compensation
           Cost of revenue                 $230           $74           $57
           Research and development       3,217         1,678           889
           Sales and marketing            1,358          (139)          700
           General and administrative       927         1,547           287
                                         $5,732        $3,160        $1,933
 
 
 

SOURCE Numerical Technologies, Inc.
    SAN JOSE, Calif., April 12 /PRNewswire/ --
 Numerical Technologies, Inc. (Nasdaq:   NMTC) today announced record revenues
 and continued profitability for its first fiscal quarter of 2001.
 First quarter revenues were a record $10.3 million, an increase of almost
 200 percent compared with the first quarter of last year and an increase of
 21 percent over the previous quarter. Excluding non-cash charges associated
 with acquisition-related costs, deferred stock compensation charges and
 depreciation charges, net income for the quarter was $657,000, or $0.02 per
 share, compared with a loss of $2.7 million for the same period last year.
     "This was the fifth consecutive quarter that we exceeded our stated
 revenue and earnings goals, and we continue to benefit from the increased
 industry-wide focus on advanced technology," stated Y. C. (Buno) Pati, CEO of
 Numerical Technologies. "This quarter, we remained focused on bringing
 chipmakers to full production with our technology. In addition, as chipmakers
 accelerated their production plans for high-performance and low-power
 subwavelength integrated circuits (ICs), we saw increasing demand for our
 design-to-silicon infrastructure products, which facilitate the widespread use
 of our subwavelength technologies."
     In this quarter, Numerical continued to add new customers to its list of
 chipmakers implementing Numerical's subwavelength technologies. UMC Corp.
 announced plans to use Virtual Stepper(TM) as its production standard for
 photomask signoff. Vitesse Semiconductor and Delphi Delco adopted Numerical's
 AbraCAD(TM) product for the automated development of the fundamental building
 blocks for IC design.
     Numerical has continued to aggressively build and strengthen its core
 technology and intellectual property (IP) position, resulting in numerous
 patent filings, new technology development partnerships and another
 record-breaking achievement in the fabrication of circuit components with
 optical lithography. In February, Numerical announced that it has partnered
 with IMEC, a leading European independent research center focused on the
 development and licensing of microelectronics, information and communications
 technologies, to incorporate its proprietary phase-shifting technology in the
 consortium's 193-nanometer lithography development program. MIT Lincoln
 Laboratories demonstrated the fabrication of 9 nanometer (0.009 micron)
 transistor gates using Numerical's phase shifting technology and 248-nanometer
 wavelength optical lithography. These results, which were presented at the
 SPIE Microlithography conference in February, beat the year-old record of
 25-nanometer transistor gates, which was also achieved at MIT Lincoln
 Laboratories.
     The company will discuss these results in a conference call at
 6 p.m. EDT/3 p.m. PDT today. The conference call may be accessed by calling
 913-981-4901 and asking for the Numerical Technologies earnings call. The call
 may also be accessed on the web at http://ir.numeritech.com . A replay of the
 conference call will be hosted for five business days at
 http://ir.numeritech.com , or may be accessed by dialing 719-457-0820 and
 using the access code 785046.
 
     About Numerical:
     Numerical Technologies, Inc. develops and markets proprietary technology,
 software tools and services that enable the semiconductor industry to produce
 subwavelength integrated circuits, i.e., integrated circuits with components
 smaller than the wavelength of light used to create circuit patterns on
 silicon.
     Numerical's products and industry alliances form a comprehensive
 design-to-silicon solution that enables the creation of smaller, faster and
 more power-efficient semiconductors using available manufacturing equipment.
 Numerical customers include the world's leading semiconductor companies,
 design automation tool vendors, semiconductor equipment suppliers and
 photomask manufacturers. Additional information about the company is available
 on the Web at http://www.numeritech.com .
 
     SAFE HARBOR:
     This release contains forward-looking statements that are made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. Forward-looking statements include statements related to the state of
 demand from the semiconductor industry, the adoption of Numerical's
 proprietary technology by the semiconductor industry, use of Numerical's
 technology by customers and Numerical's ability to enable the continued
 advance of the semiconductor industry. These forward-looking statements are
 subject to risks and uncertainties, which could cause actual results to differ
 materially from those projected. Those risks include competitive conditions,
 business and economic conditions that affect the growth of the semiconductor
 industry, the rate of adoption of Numerical's technology by the semiconductor
 industry, litigation related to intellectual property or other issues, and
 Numerical's ability to protect Numerical's intellectual property rights. For
 more information about potential factors, which could affect Numerical's
 financial results, please refer to the 10-K filed on March 27, 2001 and other
 filings with the Securities and Exchange Commission, copies of which may be
 accessed through the SEC's Web site at http://www.sec.gov/ . Numerical may,
 from time to time, make additional written and oral forward-looking
 statements, including statements contained in its filings with the Securities
 and Exchange Commission and its reports to shareholders. Numerical does not
 undertake to update any forward-looking statement that may be made from time
 to time by or on behalf of Numerical.
 
 
                           NUMERICAL TECHNOLOGIES, INC.
                                  BALANCE SHEETS
                                  (in thousands)
                                    (Unaudited)
 
                                                   March 31,     December 31,
                                                     2001           2000
 
 
     ASSETS
     Current assets:
       Cash                                         $29,869        $30,607
       Short-term investments                        24,821         23,281
       Accounts receivable                            6,002          4,983
       Prepaid and deposits                           2,902          3,177
             Total current assets                    63,594         62,048
 
     Property and equipment, net                      3,282          3,207
     Goodwill                                       163,775        175,402
     Other assets                                       422            315
                                                   $231,073       $240,972
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                              $3,057         $3,208
       Accrued expenses and other
        liabilities                                   4,493          4,608
       Deferred revenue                               7,700          6,320
             Total current liabilities               15,250         14,136
 
 
     Deferred tax liability                           6,789          7,704
 
 
     Stockholders' equity:
     Common stock                                         3              3
     Additional paid in capital                     319,879        319,541
     Receivable from stockholders                    (3,965)        (4,050)
     Deferred stock compensation                    (24,936)       (30,609)
     Accumulated deficit                            (81,947)       (65,751)
             Total stockholders' equity             209,034        219,134
                                                   $231,073       $240,974
 
 
                          NUMERICAL TECHNOLOGIES, INC.
                       PRO FORMA STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)
                                  (Unaudited)
 
                                                 Three Months Ended
 
                                         March 31,   December 31,  March 31,
                                           2001        2000          2000
 
     Revenue                            $10,320       $8,506        $3,456
 
     Costs and expenses:
       Cost of revenue                      923          946           334
       Research and development           3,893        3,392         2,592
       Sales and marketing                3,622        2,797         1,798
       General and administrative         1,647        1,128           885
           Total costs and expenses      10,085        8,263         5,609
 
     Income (loss) from operations          235          243        (2,153)
     Interest expense                        --           --          (700)
     Other income, net                      860        1,000           143
     Income (loss) before provision for
      income taxes                       $1,095       $1,243       $(2,710)
 
      Proforma provision for income
       taxes                                438          146            --
 
     Pro forma net income (loss)           $657       $1,097       $(2,710)
 
     Pro forma net income (loss) per
      share
       Basic                              $0.02        $0.04        $(0.36)
       Diluted                            $0.02        $0.03        $(0.36)
 
     Weighted average number of shares
      outstanding:
       Basic                             29,657       28,263         7,570
       Diluted                           34,552       33,435         7,570
 
     Notes:
 
     1. Pro forma net income (loss) shown above excludes the effect of
        non-cash items including 1) amortization of goodwill and
        other acquisition-related intangibles of $11.9 million, $11.8 million
        and $4.8 million in the three months ended March 31, 2001,
        December 31, 2000 and March 31, 2000  respectively; 2) Amortization of
        deferred stock compensation of  $5.7 million, $3.2 million and
        $5.2 million in the three months ended March 31, 2001,
        December 31, 2000, and March 31, 2000 respectively; 3) Depreciation
        expense of $443,000, $389,000, and $219,000 in the three months ended
        March 31, 2001, December 31, 2000 and March 31, 2000 respectively.
     2. Proforma tax provisions exclude the benefit associated with the
        amortization of intangible assets.
     3. This pro forma information is not prepared in accordance with
        generally accepted accounting principles.
     4. A reconciliation from pro forma net income (loss) to the reported
        results is shown in the next table.
     5. For period presented with a loss, all common stock equivalents are
        excluded from the computation of diluted shares
        outstanding because their effect is antidilutive.
 
 
                           NUMERICAL TECHNOLOGIES, INC.
        RECONCILIATION OF PRO FORMA NET INCOME (LOSS) TO REPORTED RESULTS
                       (in thousands, except per share data)
                                   (Unaudited)
 
                                                  Three Months Ended
 
                                         March 31,   December 31,    March 31,
                                           2001          2000          2000
 
     Proforma income (loss) before
      provision for income taxes          $1,095        $1,243       $(2,710)
 
       Amortization of intangible assets  11,927        11,790         4,793
       Amortization of deferred stock
        compensation                       5,732         3,160         5,217
       Depreciation                          443           389           219
 
     Loss before provision for income
      taxes                              (17,007)      (14,096)      (12,939)
 
     Provision for income taxes             (811)          146
 
     Net loss                           $(16,196)     $(14,242)     $(12,939)
 
 
     Net loss per common shares, basic
      and diluted                         $(0.55)       $(0.50)       $(1.71)
 
     Weighted average common shares,
      basic and diluted                   29,657        28,263         7,570
 
 
                          NUMERICAL TECHNOLOGIES, INC.
                            STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)
                                   (Unaudited)
 
                                                 Three Months Ended
 
                                        March 31,    December 31,    March 31,
                                          2001          2000           2000
 
     Revenue                            $10,320        $8,506        $3,456
 
     Costs and expenses:
       Cost of revenue                      923           946           334
       Research and development           3,893         3,392         2,592
       Sales and marketing                3,622         2,797         1,798
       General and administrative         1,647         1,128           885
       Amortization and depreciation     12,370        12,179         5,012
       Amortization of deferred stock
        compensation (*)                  5,732         3,160         5,217
           Total costs and expenses      28,187        23,602        15,838
 
     Loss from operations               (17,867)      (15,096)      (12,382)
     Interest expense                        --            --          (700)
     Other income, net                      860         1,000           143
     Loss before provision for income
      taxes                             (17,007)      (14,096)      (12,939)
 
     Provision for income taxes            (811)          146            --
 
     Net Loss                          $(16,196)     $(14,242)     $(12,939)
 
     Net loss per common shares, basic
      and diluted                        $(0.55)       $(0.50)       $(1.71)
 
     Weighted average common shares,
      basic and diluted                  29,657        28,263         7,570
 
 
     (*) Amortization of deferred stock
          compensation
           Cost of revenue                 $230           $74           $57
           Research and development       3,217         1,678           889
           Sales and marketing            1,358          (139)          700
           General and administrative       927         1,547           287
                                         $5,732        $3,160        $1,933
 
 
 SOURCE  Numerical Technologies, Inc.