Ultratech, Inc.
Oct 22, 2015

Ultratech Announces Third Quarter 2015 Results

Implements Global Reduction in Workforce of 10%

Receives Multi-system Order for Superfast 4G Inspection for 3D NAND Memory Customer

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 October 3, 2015.

For the third quarter of fiscal 2015, Ultratech reported net sales of $33.1 million as compared to $33.8 million during the third quarter of fiscal 2014.

On a GAAP basis, Ultratech's net loss for the third quarter of 2015 was $6.1 million, or $(0.22) per share, as compared to net loss of $6.6 million, or $(0.23) per share, for the same quarter last year.

On a non-GAAP basis, Ultratech's net loss for the third quarter of 2015 was $1.3 million, or $(0.05) per share, as compared to net loss of $2.1 million, or $(0.07) per share, for the same quarter last year.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "Ultratech's third quarter results were driven by demand for our advanced packaging tools. However, the uncertainty surrounding the global economic environment and resulting capacity issues in the semiconductor industry have affected our business as a whole, and as a result, we made the difficult decision to reduce our workforce as part of our efforts to meet this challenging environment. By aligning the company's resources to match our market and business objectives, Ultratech will be better positioned to meet the existing and future needs of the various industries we serve.

"As we continue to invest in our product portfolio, we believe the advanced technology found in our industry-leading systems differentiates us from our competitors. As the economic environment improves, Ultratech remains well positioned to serve its global customers," continued Zafiropoulo.

At October 3, 2015, Ultratech had $259.4 million in cash, cash equivalents and short-term investments. Working capital was $320.3 million and stockholders' equity was $13.16 per share based on 26,431,971 total shares outstanding as of October 3, 2015.

News Highlights

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 877-876-9177 (toll free) or 785-424-1666 (international) 10 minutes prior to the start time. The passcode is 688181. 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 688181.

Non-GAAP Financial Measures

Ultratech prepares its financial statements in accordance with generally accepted accounting principles (GAAP) for the United States and supplements its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the company. Ultratech's presentation of non-GAAP net loss is defined as GAAP net loss excluding the impact of share-based compensation, restructuring, and amortization of purchased intangible assets. Management believes the presentation of these non-GAAP measure provides useful information to both management and investors by enhancing the overall understanding of Ultratech's core operating performance and enabling the comparison of Ultratech's results of operations to its historical results operations as well as to the results of operations of its competitors. Ultratech believes excluding share-based compensation enhances the ability of management and investors to evaluate its performance without reference to this expense and to provide an alternate measure for comparing Ultratech's performance historically and to its competitors. Further, management believes presenting a non-GAAP financial measure that excludes restructuring and amortization of purchased intangible assets provides management and investors an alternate measure to evaluate Ultratech's performance without reference to charges that it does not believe are reflective of its core operating performance or ongoing operations. A description of the non-GAAP calculations and a reconciliation to comparable GAAP financial measures are provided in the accompanying table entitled "Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)." Readers are reminded that non-GAAP information is merely a supplement to, and not a replacement for, GAAP financial measures.

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, 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 Nine Months Ended
Oct 3,     Sep 27,   Oct 3,     Sep 27,
(In thousands, except per share amounts) 2015     2014 2015     2014
Total net sales* $ 33,115 $ 33,841 $ 120,922 $ 102,287

Cost of sales:

Cost of products sold 15,890 16,967 57,041 49,798
Cost of services   3,164         3,231     9,317         9,344  
Total cost of sales   19,054         20,198     66,358         59,142  
Gross profit 14,061 13,643 54,564 43,145

Operating expenses:

Research, development and engineering 8,534 8,139 24,951 24,528
Selling, general, and administrative 11,095 11,828 35,153 36,212
Restructuring   769         -     769         -  
Operating loss (6,337 ) (6,324 ) (6,309 ) (17,595 )
Interest expense (19 ) (8 ) (70 ) (10 )
Interest and other (expense) income, net   280         (116 )   467         306  
 
Loss before income taxes (6,076 ) (6,448 ) (5,912 ) (17,299 )
Provision for income taxes   23         174     335         184  
 
Net loss $ (6,099 )     $ (6,622 ) $ (6,247 )     $ (17,483 )

Earnings per share - basic:

Net loss $ (0.22 ) $ (0.23 ) $ (0.23 ) $ (0.62 )
Number of shares used in per share calculations - basic 27,248 28,534 27,661 28,392

Earnings per share - diluted:

Net loss $ (0.22 ) $ (0.23 ) $ (0.23 ) $ (0.62 )
Number of shares used in per share calculations - diluted     27,248         28,534     27,661         28,392  
 
* Systems sales $ 26,317 $ 24,808 $ 95,586 $ 75,083
Parts sales 3,709 5,497 14,620 16,191
Service sales 3,089 3,338 10,416 10,715
License sales   -         198     300         298  
Total sales $ 33,115       $ 33,841   $ 120,922       $ 102,287  
 

           
ULTRATECH, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
                           
  Three Months Ended Nine Months Ended
Oct 3,   Sep 27, Oct 3,   Sep 27,
(In thousands, except per share amounts) 2015     2014 2015     2014
GAAP net loss $ (6,099 ) $ (6,622 ) $ (6,247 ) $ (17,483 )
Share-based compensation 3,589 4,090 11,810 12,209
Restructuring 769 - 769 -
Amortization of purchased intangible assets     428         435     1,284         1,307  
Non-GAAP net income (loss) $ (1,313 )     $ (2,097 ) $ 7,616       $ (3,967 )

Earnings per share - diluted:

As reported $ (0.22 ) $ (0.23 ) $ (0.23 ) $ (0.62 )
Add back: per share impact of Non-GAAP adjustments $ 0.18 $ 0.16 $ 0.50 $ 0.48
Non-GAAP per share income (loss) $ (0.05 )     $ (0.07 ) $ 0.27       $ (0.14 )
 

 
ULTRATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
               
      Oct 3,     Dec 31,
(In thousands )       2015     2014*
ASSETS (Unaudited)
 

Current assets:

Cash, cash equivalents and short-term investments $ 259,401 $ 269,730
Accounts receivable 30,829 44,217
Inventories, net 62,409 51,859
Prepaid expenses and other current assets         4,442       5,774
Total current assets 357,081 371,580
 
Equipment and leasehold improvements, net 18,526 20,926
Intangibles assets, net 12,711 13,995
Other assets         10,056       11,017
 
Total assets       $ 398,374     $ 417,518
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Notes payable $ 5,120 $ 5,120
Accounts payable 14,366 12,086
Deferred product and service income 5,102 8,638
Other current liabilities         12,226       11,302
Total current liabilities 36,814 37,146
 
Other liabilities 13,646 15,252
 
Stockholders' equity         347,914       365,120
 
Total liabilities and stockholders' equity       $ 398,374     $ 417,518

* The balance sheet as of December 31, 2014 has been derived from the audited financial statements as of that date.

Ultratech, Inc.
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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