Ultratech, Inc.
Oct 23, 2014

Ultratech Announces Third Quarter 2014 Results

SAN JOSE, Calif.--(BUSINESS WIRE)-- Ultratech, Inc. (Nasdaq:UTEK) a leading supplier of lithography, laser-processing and inspection systems used to manufacture semiconductor devices and high-brightness LEDs (HB-LEDs), today announced unaudited results for the three-month period ended September 27, 2014.

For the third quarter of fiscal 2014, Ultratech reported net sales of $33.8 million as compared to $29.7 million during the third quarter of fiscal 2013. Ultratech's net loss for the third quarter of 2014 was $6.6 million, or $0.23 per share, as compared to net loss of $7.7 million, or $0.28 per share, for the same quarter last year.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "As a predominantly logic-focused company, we work with customers that manufacture microprocessor devices that primarily serve the mobile market. During the third quarter we saw unexpected push-outs in the laser annealing area related to the industry's difficulties with achieving acceptable yields in FinFET devices, which led in part to our lower than expected financial results."

Mr. Zafiropoulo continued, "We remain confident that the long-term outlook for Ultratech is strong, with our best-in-class solutions for laser spike annealing, advanced packaging, wafer inspection and high-brightness LED solutions, which continue to address the developing needs of the industry."

At September 27, 2014, Ultratech had $295.0 million in cash, cash equivalents and short-term investments. Working capital was $348.3 million and stockholders' equity was $13.48 per share based on 28, 271,186 total shares outstanding as of September 27, 2014.

Conference Call Information

The conference call will be broadcast live over the Internet beginning at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on Thursday, October 23, 2014. To listen to the call, dial 888/539-3612 (toll free) or 719/325-2315 (international) 10 minutes prior to the start time. The passcode is 8268270. A live webcast will also be available on the Investor Relations section of Ultratech's website at http://ir.ultratech.com. A replay of the call will be available at the same location or by dialing 888/203-1112 and entering access code 8268270.

Safe Harbor

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as "anticipates," "expects," "remains," "thinks," "intends," "believes," "estimates," and similar expressions and include management's current expectation of its longer term prospects for success. These forward-looking statements are based on our current expectations, estimates, assumptions and projections about our business and industry, and the markets and customers we serve, and they are subject to numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Such risks and uncertainties include the timing and possible delays, deferrals and cancellations of orders by customers; quarterly revenue fluctuations; industry and sector cyclicality, instability and unpredictability; market demand for consumer devices utilizing semiconductors produced by our clients; our ability to manage costs; new product introductions, market acceptance of new products and enhanced versions of our existing products; reliability and technical acceptance of our products; our lengthy sales cycles, and the timing of system installations and acceptances; lengthy and costly development cycles for laser-processing and lithography technologies and applications; competition and consolidation in the markets we serve; improvements, including in cost and technical features, of competitors' products; rapid technological change; pricing pressures and product discounts; our ability to collect receivables; customer and product concentration and lack of product revenue diversification; inventory obsolescence; general economic, financial market and political conditions and other factors outside of our control; domestic and international tax policies; cybersecurity threats in the United States and globally that could impact our industry, customers, and technologies; and other factors described in our SEC reports including our Annual Report on Form 10-K filed for the year ended December 31, 2013, and our Quarterly Report on Form 10-Q for the three months ended June 28, 2014. Due to these and other factors, the statements, historical results and percentage relationships set forth herein are not necessarily indicative of the results of operations for any future period. We undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.

About Ultratech: Ultratech, Inc. (Nasdaq:UTEK) designs, builds and markets manufacturing systems for the global technology industry. Founded in 1979, Ultratech serves three core markets: front-end semiconductor, back-end semiconductor, and nanotechnology. The company is the leading supplier of lithography products for bump packaging of integrated circuits and high-brightness LEDs. Ultratech is also the market leader and pioneer of laser spike anneal technology for the production of advanced semiconductor devices. In addition, the company offers solutions leveraging its proprietary coherent gradient sensing (CGS) technology to the semiconductor wafer inspection market and provides atomic layer deposition (ALD) tools to leading research organizations, including academic and industrial institutions. Visit Ultratech online at: www.ultratech.com.


  Three Months Ended   Year Ended
September 27,   September 28,   September 27,   September 28,
(In thousands, except per share amounts)     2014       2013     2014       2013  
Total net sales* $ 33,841 $ 29,732 $ 102,287 $ 133,244

Cost of sales:

Cost of products sold 16,967 14,953 49,798 59,071
Cost of services     3,231       2,989     9,344       8,813  
Total cost of sales     20,198       17,942     59,142       67,884  
Gross profit 13,643 11,790 43,145 65,360

Operating expenses:

Research, development and engineering 8,139 8,415 24,528 24,613
Selling, general, and administrative     11,828       12,082     36,212       35,265  
Operating income (loss) (6,324 ) (8,707 ) (17,595 ) 5,482
Interest expense (8 ) - (10 ) (48 )
Interest and other (expense) income, net     (116 )     327     306       298  
Income (loss) before income taxes (6,448 ) (8,380 ) (17,299 ) 5,732
Provision (benefit) for income taxes     174       (630 )   184       (1,066 )
Net income (loss)   $ (6,622 )   $ (7,750 )     $ (17,483 )   $ 6,798  

Earnings per share - basic:

Net income (loss) $ (0.23 ) $ (0.28 ) $ (0.62 ) $ 0.24
Number of shares used in per share calculations - basic 28,534 28,079 28,392 27,945

Earnings per share - diluted:

Net income (loss) $ (0.23 ) $ (0.28 ) $ (0.62 ) $ 0.24
Number of shares used in per share calculations - diluted     28,534       28,079         28,392       28,733  
* Systems sales $ 24,808 $ 21,088 $ 75,083 $ 102,377
Parts sales 5,497 5,148 16,191 19,095
Service sales 3,338 3,396 10,715 11,372
License sales     198       100     298       400  
Total sales   $ 33,841     $ 29,732       $ 102,287     $ 133,244  

  September 27,     December 31,
(In thousands )   2014  



ASSETS (Unaudited)

Current assets:

Cash, cash equivalents and short-term investments $ 294,988 $ 297,035
Accounts receivable 31,673 34,441
Inventories, net 54,598 47,784
Prepaid expenses and other current assets     5,889       5,498
Total current assets 387,148 384,758
Equipment and leasehold improvements, net 21,024 21,811
Intangibles assets, net 14,428 15,735
Other assets     11,044       11,860
Total assets   $ 433,644     $ 434,164

Current liabilities:

Notes payable $ 5,120 $ 5,120
Accounts payable 15,644 8,914
Deferred product and service income 7,801 6,574
Other current liabilities     10,263       15,095
Total current liabilities 38,828 35,703
Other liabilities 13,854 11,923
Stockholders' equity     380,962       386,538
Total liabilities and stockholders' equity   $ 433,644     $ 434,164
* The balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date.

Company Contact:
Ultratech, Inc.
Bruce R. Wright, 408-321-8835
Senior Vice President and CFO
Investor Relations Contact:
The Blueshirt Group
Suzanne Schmidt, 415-217-4962
Melanie Solomon, 415-217-4964

Source: Ultratech, Inc.

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