Ultratech, Inc.
Feb 5, 2015

Ultratech Announces Fourth Quarter and Year-End 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 and one-year periods ended December 31, 2014.

For the fourth quarter of fiscal 2014, Ultratech reported net sales of $48.3 million as compared to $24.0 million during the fourth quarter of fiscal 2013. Ultratech's net loss for the fourth quarter of 2014 was $1.6 million, or $(0.06) per share, as compared to net loss of $20.6 million, or $(0.73) per share, for the same quarter last year.

Ultratech's net sales for the year ended December 31, 2014 were $150.5 million, as compared to $157.3 million for fiscal 2013. Ultratech posted a net loss for the year ended December 31, 2014 of $19.1 million, or $(0.67) per share, as compared to net loss of $13.8 million, or $(0.49) per share per share, in fiscal 2013.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "We believe we have the best technology and products, serving the best customers in the industry, but 2014 was a difficult year as foundries continued to experience yield challenges and delays with the new FinFET architecture. As a result, our business experienced a pause, but we remain confident in our leading-edge technology position and the necessity of our technology for advanced nodes and have therefore continued to invest so that we may take advantage of the turn in the market when it occurs. We believe that 2015 offers opportunity for growth with our best-in-class solutions for laser spike annealing, advanced packaging, wafer inspection and high-brightness LED."

At December 31, 2014, Ultratech had $269.7 million in cash, cash equivalents and short-term investments. Working capital was $334.4 million and stockholders' equity was $13.33 per share based on 27,395,774 total shares outstanding as of December 31, 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 today. To listen to the call, dial 888/337-8169 (toll free) or 719/325-2420 (international) 10 minutes prior to the start time. The passcode is 9063550. 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 9063550.

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," "may," "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; acquisitions, 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 September 27, 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.

(UTEK-F)

       
ULTRATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
               
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
(In thousands, except per share amounts) 2014   2013 2014   2013
Total net sales* $ 48,253 $ 24,028 $ 150,540 $ 157,272
 

Cost of sales:

Cost of products sold 25,074 18,669 74,872 77,740
Cost of services   3,051       3,337     12,395       12,150  
Total cost of sales   28,125       22,006     87,267       89,890  
Gross profit 20,128 2,022 63,273 67,382

Operating expenses:

Research, development and engineering 9,062 8,969 33,590 33,582
Selling, general, and administrative   12,534       13,593     48,746       48,858  
Operating loss (1,468 ) (20,540 ) (19,063 ) (15,058 )
Interest expense (25 ) - (35 ) (48 )
Interest and other (expense) income, net   (75 )     (108 )   231       190  
 
Loss before income taxes (1,568 ) (20,648 ) (18,867 ) (14,916 )
Provision (benefit) for income taxes   60       (81 )   244       (1,147 )
Net loss $ (1,628 )   $ (20,567 ) $ (19,111 )   $ (13,769 )
 

Earnings per share - basic:

Net loss $ (0.06 ) $ (0.73 ) $ (0.67 ) $ (0.49 )
Number of shares used in per share calculations - basic 28,231 28,222 28,437 28,106

Earnings per share - diluted:

Net loss $ (0.06 ) $ (0.73 ) $ (0.67 ) $ (0.49 )
Number of shares used in per share calculations - diluted   28,231       28,222     28,437       28,106  
 
* Systems sales $ 39,455 $ 14,169 $ 114,538 $ 116,546
Parts sales 5,440 4,699 21,631 23,794
Service sales 3,258 5,060 13,973 16,432
License sales   100       100     398       500  
Total sales $ 48,253     $ 24,028   $ 150,540     $ 157,272  

 
ULTRATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
         
  December 31, December 31,
(In thousands )   2014   2013*
ASSETS (Unaudited)
 

Current assets:

Cash, cash equivalents and short-term investments $ 269,730 $ 297,035
Accounts receivable 44,217 34,441
Inventories, net 51,859 47,784
Prepaid expenses and other current assets     5,774     5,498
Total current assets 371,580 384,758
 
Equipment and leasehold improvements, net 20,926 21,811
Intangibles assets, net 13,995 15,735
Other assets     11,017     11,860
 
Total assets   $ 417,518   $ 434,164
 
         
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Notes payable $ 5,120 $ 5,120
Accounts payable 12,086 8,914
Deferred product and service income 8,638 6,574
Other current liabilities     11,302     15,095
Total current liabilities 37,146 35,703
 
Other liabilities 15,252 11,923
 
Stockholders' equity     365,120     386,538
 
Total liabilities and stockholders' equity   $ 417,518   $ 434,164
 
* The balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date.

Company Contact:
Bruce R. Wright, 408-321-8835
Senior Vice President and CFO
or
Investor Relations Contact:
The Blueshirt Group
Suzanne Schmidt, 415-217-4962
suzanne@blueshirtgroup.com
Melanie Solomon, 415-217-4964
melanie@blueshirtgroup.com

Source: Ultratech, Inc.

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