PRI Automation Reports Second Quarter Results

Apr 19, 2001, 01:00 ET from PRI Automation, Inc.

    BILLERICA, Mass., April 19 /PRNewswire/ --
 PRI Automation, Inc. (Nasdaq: PRIA; Toronto: PRJ), a global leader in advanced
 automation systems, software, and services to the semiconductor industry,
 today reported financial results for the second quarter ended April 1, 2001.
     Net revenues for the second quarter of fiscal 2001 were $91.2 million, up
 19 percent from $76.7 million in the second quarter of fiscal 2000.  Net loss
 on a proforma basis for the quarter was $9.6 million, or $0.38 per diluted
 share, compared with net income of $5.8 million, or $0.23 per share in the
 second quarter of fiscal 2000.  The Company's lower performance was due to the
 industry downturn which resulted in order cancellations, order push-outs, and
 order delays.  During the second fiscal quarter, the Company incurred special
 charges of $16.4 million, related principally to cost reduction and
 restructuring charges.  The charges consist primarily of employee severance
 costs, inventory write downs and costs associated with order cancellations, a
 reserve for legal costs associated with the defense of a shareholder class
 action lawsuit, and the write down of impaired assets.
     "The results this quarter are directly due to the sudden reversal in
 market conditions," said Mitch Tyson, president and chief executive officer of
 PRI Automation.  "We began the quarter forecasting ten percent sequential
 growth, but by the end of the quarter we experienced order cancellations and
 push-outs that totaled $48.0 million.  Despite this, we received $81.0 million
 in new bookings for the quarter and our backlog at the end of the quarter was
 $179.0 million.
     "We are aggressively resizing the Company to match anticipated business
 levels," continued Tyson.  "We are accelerating our new product developments
 and introductions to prepare us for the 300mm ramp, including our TransFab
 unified material handling system, our Guardian bare reticle stocker, our next
 generation integrated tool front-end system, and our P300 manufacturing
 execution system (MES) software.  We recently announced the appointment of
 two seasoned senior executives to our management team, and we are taking steps
 to increase the flexibility of our manufacturing operations and shorten cycle
 times so we are prepared for the next upturn.
     "We have received several recent wins for our integrated hardware and
 software solutions and we intend to build upon these wins as more customers
 are beginning to work with fewer suppliers who can add more value to their
 manufacturing operations," stated Tyson.  "Our complete set of integrated
 hardware, software, and services positions us to capture a significant portion
 of the 300mm growth opportunity as the industry recovers."
 
     Analyst Teleconference and Simultaneous Webcast
     PRI will host a teleconference to discuss its second quarter fiscal 2001
 results today at 12:00 p.m. ET.  Internet users will be able to access a
 simultaneous, listen-only webcast of the teleconference through PRI's Web site
 at www.pria.com.  An archive of the webcast will also be available at this
 site for 7 days.
 
     Taped Replay
     A taped replay of the teleconference will be available at approximately
 5:00 p.m. ET today through Tuesday, April 26, at 8:00 p.m.  To listen to the
 teleconference replay, please dial 719-457-0820, passcode 548416.
 
     About PRI Automation
     PRI Automation, Inc., headquartered in Billerica, Massachusetts, is a
 leading global supplier of advanced factory automation systems, software, and
 services that optimize the productivity of semiconductor and precision
 electronics manufacturers as well as OEM process tool manufacturers.  PRI is
 the only company to provide a tightly integrated and flexible hardware and
 software solution that optimizes the flow of products, data, materials and
 resources throughout the production chain.  The company has thousands of
 systems installed at approximately one hundred locations throughout the world.
 For more information visit PRI online at www.pria.com.
 
     Safe Harbor Statement
     This release includes forward-looking statements, including, without
 limitation, statements concerning future revenues and earnings, management's
 plans and objectives for future operations, demand for the Company's products
 and other matters not limited to historical facts.  These forward-looking
 statements are subject to risks and uncertainties that could cause actual
 results to differ materially from those expressed or implied by such
 statements.  Such risks and uncertainties include (i) the cyclicality of the
 semiconductor industry and uncertainties about the timing of a broad-based
 recovery in such industry, (ii) changes in customers' ordering patterns
 including the rescheduling and cancellation of orders; (iii) our ability to
 reduce costs and capital expenditures in line with our reduced revenue
 expectations, (iv) our ability to resolve our operational problems relating to
 the manufacture of our new TurboStocker, (v) our ability to convert our
 backlog of orders to revenue in a timely and profitable manner, (vi) our
 ability to resolve supply chain issues including the shortage of critical
 components used in the company's TurboStocker and other products, (vii)
 uncertainties affecting global markets and currencies, the effects of possible
 delays by semiconductor manufacturers in the adoption of 300 mm wafer
 manufacturing and other new technologies, (viii) changes in our product sales
 mix; (ix) competitive factors, such as introduction of new products or
 technologies by our competitors, and pricing pressures; (x) the possible
 impact of any mergers and acquisitions activity by the company and our ability
 to successfully integrate and operate any acquired businesses; (xi) business
 and economic conditions affecting the semiconductor manufacturing equipment
 industry generally; (xii) and other factors identified in our registration
 statement on Form S-3, file number 333-34584, as filed with the Securities and
 Exchange Commission on April 12, 2000 and amended thereafter.  We assume no
 obligation to update any forward-looking information contained in this
 release.
 
                              PRI AUTOMATION, INC.
                Condensed Consolidated Statements of Operations
                     (In thousands, except per share data)
 
                                      Three Months Ended      Six Months Ended
                                     April 1,  April 2,    April 1,  April 2,
                                         2001      2000        2001      2000
 
     Net revenue                      $91,191   $76,669   $ 186,043  $135,362
     Cost of revenue                   76,191    46,619     139,770    83,934
 
     Gross profit                      15,000    30,050      46,273    51,428
 
     Operating expenses:
       Research and development        16,029    12,736      31,151    24,895
       Selling, general and
        administrative                 15,498    11,600      29,589    20,615
       Restructuring and other costs   11,888        --      11,888        --
 
         Total operating expenses      43,415    24,336      72,628    45,510
 
     Operating income (loss)         (28,415)     5,714    (26,355)     5,918
     Other income, net                  2,609       292       2,188       492
 
     Income (loss) before income taxes(25,806)    6,006    (24,167)     6,410
     Provision for income taxes           200       200         625       310
 
     Net income (loss)              $(26,006)    $5,806   $(24,792)    $6,100
 
     Basic net income (loss)
      per common share                $(1.03)    $ 0.25     $(0.99)     $0.27
     Diluted net income (loss)
      per common share                $(1.03)     $0.23     $(0.99)     $0.24
 
     Weighted average shares used
      in basic share calculations      25,188    23,032      25,153    22,773
 
     Weighted average shares used
      in diluted share calculations    25,188    25,353      25,153    24,918
 
                   Pro Forma Summary Statements of Operations
    (Adjusted to eliminate  the impact of second quarter Fiscal 2001 special
                                    charges)
                     (In thousands, except per share data)
 
                                                 Three Months      Six Months
                                                     Ended           Ended
                                                    April 1,        April 1,
                                                      2001            2001
 
     Net revenue                                     $ 91,191       $186,043
     Cost of revenue                                 $ 71,695       $135,274
     Gross profit                                    $ 19,496        $50,769
     Total operating expenses                        $ 31,527        $60,740
     Operating loss                                 $(12,031)      $ (9,971)
     Net loss                                       $ (9,622)      $ (8,408)
 
     Net loss per share:
      Basic and diluted                               $(0.38)        $(0.33)
     Weighted average shares outstanding:
      Basic and diluted                                25,188         25,153
 
                              PRI AUTOMATION, INC.
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                      April 1,   September 30,
                                                        2001           2000
 
     Assets
     Cash and cash equivalents                        $42,485        $92,484
     Accounts receivable, net                          91,335         73,019
     Contracts in progress                             17,816         23,668
     Inventories                                       72,208         59,104
     Other current assets                               4,872          2,686
     Property and equipment, net                       21,693         24,065
     Long term investments                             11,484             --
     Other assets, net                                  3,530          1,898
 
       Total assets                                  $265,423       $276,924
 
     Liabilities and Stockholders' Equity
     Liabilities:
       Accounts payable                               $29,538        $28,781
       Accrued expenses and other liabilities          29,665         33,360
       Billings in excess of revenue and
        customer advances                              16,333         11,986
       Accrued legal and restructuring costs            7,637             --
 
     Minority interests                                   146            150
 
     Stockholders' equity                             182,104        202,647
 
         Total liabilities and stockholders'
          equity                                     $265,423       $276,924
 
 

SOURCE PRI Automation, Inc.
    BILLERICA, Mass., April 19 /PRNewswire/ --
 PRI Automation, Inc. (Nasdaq: PRIA; Toronto: PRJ), a global leader in advanced
 automation systems, software, and services to the semiconductor industry,
 today reported financial results for the second quarter ended April 1, 2001.
     Net revenues for the second quarter of fiscal 2001 were $91.2 million, up
 19 percent from $76.7 million in the second quarter of fiscal 2000.  Net loss
 on a proforma basis for the quarter was $9.6 million, or $0.38 per diluted
 share, compared with net income of $5.8 million, or $0.23 per share in the
 second quarter of fiscal 2000.  The Company's lower performance was due to the
 industry downturn which resulted in order cancellations, order push-outs, and
 order delays.  During the second fiscal quarter, the Company incurred special
 charges of $16.4 million, related principally to cost reduction and
 restructuring charges.  The charges consist primarily of employee severance
 costs, inventory write downs and costs associated with order cancellations, a
 reserve for legal costs associated with the defense of a shareholder class
 action lawsuit, and the write down of impaired assets.
     "The results this quarter are directly due to the sudden reversal in
 market conditions," said Mitch Tyson, president and chief executive officer of
 PRI Automation.  "We began the quarter forecasting ten percent sequential
 growth, but by the end of the quarter we experienced order cancellations and
 push-outs that totaled $48.0 million.  Despite this, we received $81.0 million
 in new bookings for the quarter and our backlog at the end of the quarter was
 $179.0 million.
     "We are aggressively resizing the Company to match anticipated business
 levels," continued Tyson.  "We are accelerating our new product developments
 and introductions to prepare us for the 300mm ramp, including our TransFab
 unified material handling system, our Guardian bare reticle stocker, our next
 generation integrated tool front-end system, and our P300 manufacturing
 execution system (MES) software.  We recently announced the appointment of
 two seasoned senior executives to our management team, and we are taking steps
 to increase the flexibility of our manufacturing operations and shorten cycle
 times so we are prepared for the next upturn.
     "We have received several recent wins for our integrated hardware and
 software solutions and we intend to build upon these wins as more customers
 are beginning to work with fewer suppliers who can add more value to their
 manufacturing operations," stated Tyson.  "Our complete set of integrated
 hardware, software, and services positions us to capture a significant portion
 of the 300mm growth opportunity as the industry recovers."
 
     Analyst Teleconference and Simultaneous Webcast
     PRI will host a teleconference to discuss its second quarter fiscal 2001
 results today at 12:00 p.m. ET.  Internet users will be able to access a
 simultaneous, listen-only webcast of the teleconference through PRI's Web site
 at www.pria.com.  An archive of the webcast will also be available at this
 site for 7 days.
 
     Taped Replay
     A taped replay of the teleconference will be available at approximately
 5:00 p.m. ET today through Tuesday, April 26, at 8:00 p.m.  To listen to the
 teleconference replay, please dial 719-457-0820, passcode 548416.
 
     About PRI Automation
     PRI Automation, Inc., headquartered in Billerica, Massachusetts, is a
 leading global supplier of advanced factory automation systems, software, and
 services that optimize the productivity of semiconductor and precision
 electronics manufacturers as well as OEM process tool manufacturers.  PRI is
 the only company to provide a tightly integrated and flexible hardware and
 software solution that optimizes the flow of products, data, materials and
 resources throughout the production chain.  The company has thousands of
 systems installed at approximately one hundred locations throughout the world.
 For more information visit PRI online at www.pria.com.
 
     Safe Harbor Statement
     This release includes forward-looking statements, including, without
 limitation, statements concerning future revenues and earnings, management's
 plans and objectives for future operations, demand for the Company's products
 and other matters not limited to historical facts.  These forward-looking
 statements are subject to risks and uncertainties that could cause actual
 results to differ materially from those expressed or implied by such
 statements.  Such risks and uncertainties include (i) the cyclicality of the
 semiconductor industry and uncertainties about the timing of a broad-based
 recovery in such industry, (ii) changes in customers' ordering patterns
 including the rescheduling and cancellation of orders; (iii) our ability to
 reduce costs and capital expenditures in line with our reduced revenue
 expectations, (iv) our ability to resolve our operational problems relating to
 the manufacture of our new TurboStocker, (v) our ability to convert our
 backlog of orders to revenue in a timely and profitable manner, (vi) our
 ability to resolve supply chain issues including the shortage of critical
 components used in the company's TurboStocker and other products, (vii)
 uncertainties affecting global markets and currencies, the effects of possible
 delays by semiconductor manufacturers in the adoption of 300 mm wafer
 manufacturing and other new technologies, (viii) changes in our product sales
 mix; (ix) competitive factors, such as introduction of new products or
 technologies by our competitors, and pricing pressures; (x) the possible
 impact of any mergers and acquisitions activity by the company and our ability
 to successfully integrate and operate any acquired businesses; (xi) business
 and economic conditions affecting the semiconductor manufacturing equipment
 industry generally; (xii) and other factors identified in our registration
 statement on Form S-3, file number 333-34584, as filed with the Securities and
 Exchange Commission on April 12, 2000 and amended thereafter.  We assume no
 obligation to update any forward-looking information contained in this
 release.
 
                              PRI AUTOMATION, INC.
                Condensed Consolidated Statements of Operations
                     (In thousands, except per share data)
 
                                      Three Months Ended      Six Months Ended
                                     April 1,  April 2,    April 1,  April 2,
                                         2001      2000        2001      2000
 
     Net revenue                      $91,191   $76,669   $ 186,043  $135,362
     Cost of revenue                   76,191    46,619     139,770    83,934
 
     Gross profit                      15,000    30,050      46,273    51,428
 
     Operating expenses:
       Research and development        16,029    12,736      31,151    24,895
       Selling, general and
        administrative                 15,498    11,600      29,589    20,615
       Restructuring and other costs   11,888        --      11,888        --
 
         Total operating expenses      43,415    24,336      72,628    45,510
 
     Operating income (loss)         (28,415)     5,714    (26,355)     5,918
     Other income, net                  2,609       292       2,188       492
 
     Income (loss) before income taxes(25,806)    6,006    (24,167)     6,410
     Provision for income taxes           200       200         625       310
 
     Net income (loss)              $(26,006)    $5,806   $(24,792)    $6,100
 
     Basic net income (loss)
      per common share                $(1.03)    $ 0.25     $(0.99)     $0.27
     Diluted net income (loss)
      per common share                $(1.03)     $0.23     $(0.99)     $0.24
 
     Weighted average shares used
      in basic share calculations      25,188    23,032      25,153    22,773
 
     Weighted average shares used
      in diluted share calculations    25,188    25,353      25,153    24,918
 
                   Pro Forma Summary Statements of Operations
    (Adjusted to eliminate  the impact of second quarter Fiscal 2001 special
                                    charges)
                     (In thousands, except per share data)
 
                                                 Three Months      Six Months
                                                     Ended           Ended
                                                    April 1,        April 1,
                                                      2001            2001
 
     Net revenue                                     $ 91,191       $186,043
     Cost of revenue                                 $ 71,695       $135,274
     Gross profit                                    $ 19,496        $50,769
     Total operating expenses                        $ 31,527        $60,740
     Operating loss                                 $(12,031)      $ (9,971)
     Net loss                                       $ (9,622)      $ (8,408)
 
     Net loss per share:
      Basic and diluted                               $(0.38)        $(0.33)
     Weighted average shares outstanding:
      Basic and diluted                                25,188         25,153
 
                              PRI AUTOMATION, INC.
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                      April 1,   September 30,
                                                        2001           2000
 
     Assets
     Cash and cash equivalents                        $42,485        $92,484
     Accounts receivable, net                          91,335         73,019
     Contracts in progress                             17,816         23,668
     Inventories                                       72,208         59,104
     Other current assets                               4,872          2,686
     Property and equipment, net                       21,693         24,065
     Long term investments                             11,484             --
     Other assets, net                                  3,530          1,898
 
       Total assets                                  $265,423       $276,924
 
     Liabilities and Stockholders' Equity
     Liabilities:
       Accounts payable                               $29,538        $28,781
       Accrued expenses and other liabilities          29,665         33,360
       Billings in excess of revenue and
        customer advances                              16,333         11,986
       Accrued legal and restructuring costs            7,637             --
 
     Minority interests                                   146            150
 
     Stockholders' equity                             182,104        202,647
 
         Total liabilities and stockholders'
          equity                                     $265,423       $276,924
 
 SOURCE  PRI Automation, Inc.