AVIZA Technology, Inc.

Print Print page
« Previous Release | Next Release »



Aviza Technology Announces Fiscal Year 2008 Second Quarter Financial Results

SCOTTS VALLEY, Calif., May 06, 2008 (BUSINESS WIRE) -- Aviza Technology, Inc. (NASDAQ:AVZA (changed to AVZAQ on June 19, 2009)), a supplier of advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets, today reported results for the second quarter of fiscal year 2008, which ended on March 28, 2008.

-- Shipments for the second quarter totaled $28.3 million.

-- Net sales for the quarter of $30.2 million were in-line with the Company's guidance of $30 million - $35 million.

-- Second quarter net loss was $30.1 million, or ($1.38) per share. Adjusted net loss was $6.3 million, or ($0.29) per share.

"Our financial results for this quarter reflect the effects of our recently announced plans to restructure the Company's product strategy, served markets and internal operations," said Jerry Cutini, Aviza's president and chief executive officer. "The most profound impact was the result of a $20.8 million restructuring charge which negatively impacted our gross margin and operating expenses for the quarter. As we continue to control and monitor our spending, our renewed focus moving forward will concentrate on the new initiatives we set forth."

FORECAST - FISCAL 2008 THIRD QUARTER ENDING JUNE 27, 2008

The Company's guidance for the third quarter of fiscal 2008 is predicated on anticipated continued softness in the DRAM market. Aviza expects that net sales will be in the range of $32 million to $37 million, with an operating loss in the range of approximately $3.0 million - $7.0 million.

NON-GAAP FINANCIAL MEASURES

Aviza uses non-GAAP financial measures that are not intended to be used in lieu of GAAP presentations, but are provided because we believe that they provide additional information with respect to the performance of our fundamental business activities and are also used by securities analysts, investors and other interested parties to evaluate our business on a comparable basis to other companies. The two non-GAAP financial measures that we use are (i) Adjusted Net Income (Loss) and (ii) Adjusted Net Income (Loss) Per Share. We believe that Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share provide investors with useful information about our operating results. We use Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share to review and assess our operating performance. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share also allow us to compare our operating results with corresponding prior periods as well as with the operating results of other companies in our industry.

Adjusted Net Income (Loss) is a non-GAAP financial measure that represents GAAP Net Income (Loss) excluding the following items: stock-based compensation, amortization expense, depreciation expense, net interest expense, restructuring and other one-time charges, income taxes and net other (income) expense. As we have substantial net operating loss carryforward, we have not included the impact of additional income tax provisions in this calculation. Adjusted Net Income (Loss) Per Share is a non-GAAP financial measure that represents Adjusted Net Income (as defined above) divided by weighted average number of shares outstanding for the period. A reconciliation of our Adjusted Net Income (Loss) to GAAP Net Income (Loss), the most directly comparable GAAP measure, is provided in the attached table.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share have limitations as analytical tools, and you should not consider them in isolation or as a substitute for net income (loss), earnings per share and other consolidated income statement data prepared in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share as supplemental information.

Unless otherwise specified, all references in this press release to financial information are prepared in accordance with accounting principals generally accepted in the United States.

CONFERENCE CALL INFORMATION

Aviza has scheduled a conference call today to discuss the Company's financial results for the fiscal 2008 second quarter. The call will be hosted by Jerry Cutini, president and chief executive officer, and Patrick O'Connor, executive vice president and chief financial officer.

Investors will have the opportunity to listen to the conference call over the Internet. To listen to the live web cast today at 4:30 p.m. EDT / 1:30 p.m. PDT, log on to the Aviza website at www.aviza.com. To access the live conference call today at 4:30 p.m. EDT / 1:30 p.m. PDT, dial 303-262-2125 or 800-240-2134.

A digital replay will be available on Aviza's website at www.aviza.com under "Calendar of Events" in the "Investors" section of the website two hours after the conclusion of the conference call.

A telephone replay will also be available two hours after the conclusion of the conference call from May 6 to May 13, 2008. You may access the telephone replay by dialing 303-590-3000 or 800-405-2236 and entering the confirmation code 11112703#.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements. These forward-looking statements are based on our management's current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. You should not rely upon these forward-looking statements as predictions of future events because we cannot assure you that the events or circumstances reflected in these statements will be achieved or will occur. These forward-looking statements include, but are not limited to, the statements made by Jerry Cutini and all statements containing the words "believes," "expects," "forecast," "may," "will," "should," "seeks," "intends," "plans," "estimates" or "anticipates" or the negative of these words and phrases or other variations of these words and phrases or comparable terminology. Many factors could cause actual results to differ materially from those projected in these forward-looking statements, including, but not limited to: variability of our revenues and financial performance; risks associated with product development and technological changes; the acceptance of our products in the marketplace by existing and potential future customers; disruption of operations or increases in expenses due to our involvement in litigation or caused by civil or political unrest or other catastrophic events; general economic conditions and conditions in the semiconductor industry in particular; the continued employment of our key personnel and risks associated with competition. Some of these factors and other important factors are detailed in various Securities and Exchange Commission filings that we have made, particularly in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available from us without charge. Please review these filings and do not place undue reliance on these forward-looking statements. We assume no obligation to update these forward-looking statements.

ABOUT AVIZA TECHNOLOGY, INC.

Aviza Technology, Inc. designs, manufactures, sells and supports advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets. The company's systems are used in a variety of segments of the semiconductor market, such as advanced silicon for memory devices, advanced 3-D packaging and power integrated circuits for communications. Aviza's common stock is publicly traded on the NASDAQ Global Market (NASDAQ GM:AVZA (changed to AVZAQ on June 19, 2009)). Aviza is headquartered in Scotts Valley, Calif., with manufacturing, R&D, sales and customer support facilities located in the United Kingdom, Germany, France, Taiwan, China, Japan, Korea, Singapore and Malaysia. Additional information about the company can be found at http://www.aviza.com.

                        AVIZA TECHNOLOGY, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                             (unaudited)
----------------------------------------------------------------------
                                             March 28,   September 28,
                                                2008         2007
----------------------------------------------------------------------

ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                 $    15,222  $     23,087
  Accounts receivable, net                       28,318        37,202
  Inventory                                      48,248        45,529
  Prepaid expenses and other current assets       6,115         5,317
                                            ------------ -------------

    Total current assets                         97,903       111,135

Property and equipment - net                     26,356        31,781

Intangible and other assets                       3,441         5,164
                                            ------------ -------------

TOTAL                                       $   127,700  $    148,080
                                            ============ =============

LIABILITIES AND STOCKHOLDERS' EQUITY
 (DEFICIT)

CURRENT LIABILITIES:
  Bank borrowing - short term               $    28,046  $     15,043
  Accounts payable                               25,021        22,536
  Warranty liability                              8,575        11,222
  Accrued liabilities                            17,301        13,391
                                            ------------ -------------

    Total current liabilities                    78,943        62,192
                                            ------------ -------------


NOTE PAYABLE - Long term                         13,004        14,490
OTHER LIABILITIES- Long term                        175             -
                                            ------------ -------------

    Total liabilities                            92,122        76,682
                                            ------------ -------------


STOCKHOLDERS' EQUITY (DEFICIT)

  Common stock                                  121,236       118,402
  Accumulated deficit and accumulated other
   comprehensive loss                           (85,658)      (47,004)
                                            ------------ -------------

    Total stockholders' equity (deficit)         35,578        71,398
                                            ------------ -------------

TOTAL                                       $   127,700  $    148,080
                                            ============ =============

                        AVIZA TECHNOLOGY, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands, except share and per share amounts)
                             (unaudited)
----------------------------------------------------------------------

                                            Quarter Ended
                                --------------------------------------
                                 March 28,   December 28,  March 30,
                                    2008         2007         2007
----------------------------------------------------------------------

NET SALES                       $    30,174  $    34,014  $    61,638
                                ------------ ------------ ------------

COST OF GOODS SOLD - on net
 sales                               21,035       24,283       42,714
COST OF GOODS SOLD -
 restructuring                       13,029            -            -
                                ------------ ------------ ------------

  Total cost of goods sold           34,064       24,283       42,714
                                ------------ ------------ ------------

GROSS PROFIT                         (3,890)       9,731       18,924
                                ------------ ------------ ------------

OPERATING EXPENSES:
  Research and development
   costs                              7,981        8,039        8,011
  Selling, general and
   administrative costs               9,509        9,574        8,221
  Restructuring costs and other
   costs                              7,792            -            -
                                ------------ ------------ ------------


    Total operating expenses         25,282       17,613       16,232
                                ------------ ------------ ------------

INCOME (LOSS) FROM OPERATIONS       (29,172)      (7,882)       2,692
                                ------------ ------------ ------------

OTHER INCOME (EXPENSE):
  Interest income                        32           52          110
  Interest expense                     (536)        (412)      (1,063)
  Other income (expense) - net           14           20           11
                                ------------ ------------ ------------

    Total other income
     (expense)                         (490)        (340)        (942)
                                ------------ ------------ ------------

INCOME (LOSS) BEFORE INCOME
 TAXES                              (29,662)      (8,222)       1,750

INCOME TAXES                            424          298          395
                                ------------ ------------ ------------

NET INCOME (LOSS)               $   (30,086) $    (8,520) $     1,355
                                ============ ============ ============

Income (Loss) per share:
  Basic                         $     (1.38) $     (0.40) $      0.08
                                ============ ============ ============
  Diluted                       $     (1.38) $     (0.40) $      0.07
                                ============ ============ ============

Weighted average common shares:
  Basic                          21,856,473   21,060,009   17,538,955
                                ============ ============ ============
  Diluted                        21,856,473   21,060,009   18,374,237
                                ============ ============ ============

                                     Six Months Ended
                                ---------------------------
                                 March 28,     March 30,
                                    2008          2007
-----------------------------------------------------------

NET SALES                       $    64,188  $     123,829
                                ------------ --------------

COST OF GOODS SOLD - on net
 sales                               45,318         86,057
COST OF GOODS SOLD -
 restructuring                       13,029              -
                                ------------ --------------

  Total cost of goods sold           58,347         86,057
                                ------------ --------------

GROSS PROFIT                          5,841         37,772
                                ------------ --------------

OPERATING EXPENSES:
  Research and development
   costs                             16,020         15,714
  Selling, general and
   administrative costs              19,083         16,628
  Restructuring costs and other
   costs                              7,792              -
                                ------------ --------------


    Total operating expenses         42,895         32,342
                                ------------ --------------

INCOME (LOSS) FROM OPERATIONS       (37,054)         5,430
                                ------------ --------------

OTHER INCOME (EXPENSE):
  Interest income                        84            137
  Interest expense                     (948)        (2,315)
  Other income (expense) - net           34             24
                                ------------ --------------

    Total other income
     (expense)                         (830)        (2,154)
                                ------------ --------------

INCOME (LOSS) BEFORE INCOME
 TAXES                              (37,884)         3,276

INCOME TAXES                            722            796
                                ------------ --------------

NET INCOME (LOSS)               $   (38,606) $       2,480
                                ============ ==============

Income (Loss) per share:
  Basic                         $     (1.80) $        0.15
                                ============ ==============
  Diluted                       $     (1.80) $        0.14
                                ============ ==============

Weighted average common shares:
  Basic                          21,458,241     16,844,853
                                ============ ==============
  Diluted                        21,458,241     17,637,631
                                ============ ==============

                        AVIZA TECHNOLOGY, INC.
RECONCILIATION TO ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME
                           (LOSS) PER SHARE
          (in thousands, except share and per share amounts)
                             (unaudited)
----------------------------------------------------------------------
                                            Quarter Ended
                                --------------------------------------
                                 March 28,   December 28,  March 30,
                                    2008         2007         2007
----------------------------------------------------------------------

NET INCOME (LOSS)               $   (30,086) $    (8,520) $     1,355
                                ============ ============ ============

Adjustments to reconcile net
 income (loss) to adjusted net
 income (loss)
  Stock-based compensation      $       467  $       528  $       477
  Amortization expense (1)              145          100          124
  Depreciation expense                1,389        1,430          963
  Interest expense, net                 504          360          953
  Other (income) expense, net           (14)         (20)         (11)
  Restructuring and other costs      20,821            -            -
  Income taxes                          424          298          395
                                ------------ ------------ ------------

ADJUSTED NET INCOME (LOSS)      $    (6,350) $    (5,824) $     4,256
                                ============ ============ ============

Adjusted Income (loss) per
 share:
  Basic                         $     (0.29) $     (0.28) $      0.24
                                ============ ============ ============
  Diluted                       $     (0.29) $     (0.28) $      0.23
                                ============ ============ ============

Weighted average common shares:
  Basic                          21,856,473   21,060,009   17,538,955
                                ============ ============ ============
  Diluted                        21,856,473   21,060,009   18,374,237
                                ============ ============ ============



  (1) Does not include the amortization of debt issuance costs of
   $33,000, $33,000, and $129,000 during the three months ended March
   28, 2008, December 28, 2007 and March 30, 2007 respectively, which
   are included in interest expense, net.

SOURCE: Aviza Technology, Inc.

Aviza Technology, Inc.
Sherrie Gutierrez, +1-831-439-6382
(Corporate Communications)
Fax: +1-831-439-6223
Corporate Marketing Manager
sherrie.gutierrez@aviza.com
or
Guerrant Associates
Laura Guerrant, +1-808-882-1467 (Investor Relations)
Fax: +1-808-882-1267
Principal
lguerrant@guerrantir.com

Copyright Business Wire 2008

News Provided by COMTEX

Close window | Back to top