Ultratech, Inc.
Feb 4, 2016

Ultratech Announces Fourth Quarter and Year-End 2015 Results

Multi-system orders for LSA, AP at the end of 2015 provide momentum into 2016

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 twelve-month periods ended December 31, 2015.

For the fourth quarter of fiscal 2015, Ultratech reported net sales of $28.3 million as compared to $48.3 million during the fourth quarter of fiscal 2014.

On a GAAP basis, Ultratech's net loss for the fourth quarter of 2015 was $8.9 million, or $(0.33) per share, as compared to net loss of $1.6 million, or $(0.06) per share, for the same quarter last year.

On a non-GAAP basis, Ultratech's net loss for the fourth quarter of 2015 was $3.9 million, or $(0.14) per share, as compared to net income of $3.2 million, or $0.11 per share, for the same quarter last year.

Ultratech's net sales for the year ended December 31, 2015 were $149.2 million, as compared to $150.5 million for fiscal 2014.

On a GAAP basis, Ultratech's net loss for the year ended December 31, 2015 was $15.1 million, or $(0.55) per share, as compared to net loss of $19.1 million, or $(0.67) per share, in fiscal 2014.

On a non-GAAP basis, Ultratech's net income for the year ended December 31, 2015 was $3.7 million, or $0.13 per share, as compared to net loss of $1.3 million, or $(0.05) per share, in fiscal 2014.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "Despite a challenging year for the semiconductor industry, Ultratech's fourth quarter ended on a high note with multi-system orders received for our leading solutions in laser spike annealing and advanced packaging. With these orders shipping in the first quarter we believe we are well-positioned for a more successful year in 2016."

At December 31, 2015, Ultratech had $251.9 million in cash, cash equivalents and short-term investments. Working capital was $315.4 million and stockholders' equity was $12.89 per share based on 26,522,276 total shares outstanding as of December 31, 2015.

Fourth Quarter 2015 Business 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 888-359-3624 (toll free) or 719-457-2664 (international) 10 minutes prior to the start time. The passcode is 538174. 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 538174.

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   Twelve Months Ended
Dec 31,   Dec 31, Dec 31,   Dec 31,
(In thousands, except per share amounts) 2015   2014 2015   2014
Total net sales* $ 28,254 $ 48,253 $ 149,176 $ 150,540

Cost of sales:

Cost of products sold 14,118 25,074 71,159 74,872
Cost of services   3,268       3,051     12,585       12,395  
Total cost of sales   17,386       28,125     83,744       87,267  
Gross profit 10,868 20,128 65,432 63,273

Operating expenses:

Research, development and engineering 7,935 9,062 32,886 33,590
Selling, general, and administrative 11,682 12,534 46,835 48,746
Restructure of operations   (18 )     -     751       -  
Operating loss (8,731 ) (1,468 ) (15,040 ) (19,063 )
Interest expense (10 ) (25 ) (80 ) (35 )
Interest and other (expense) income, net   (25 )     (75 )   442       231  
 
Loss before income taxes (8,766 ) (1,568 ) (14,678 ) (18,867 )
Provision for income taxes   115       60     450       244  
 
Net loss $ (8,881 )   $ (1,628 ) $ (15,128 )   $ (19,111 )

Earnings per share - basic:

Net loss $ (0.33 ) $ (0.06 ) $ (0.55 ) $ (0.67 )
Number of shares used in per share calculations - basic 26,793 28,231 27,429 28,437

Earnings per share - diluted:

Net loss $ (0.33 ) $ (0.06 ) $ (0.55 ) $ (0.67 )
Number of shares used in per share calculations - diluted   26,793       28,231     27,429       28,437  
 
* Systems sales $ 21,507 $ 39,455 $ 117,093 $ 114,538
Parts sales 3,914 5,440 18,534 21,631
Service sales 2,733 3,258 13,149 13,973
License sales   100       100     400       398  
Total sales $ 28,254     $ 48,253   $ 149,176     $ 150,540  
 

 
ULTRATECH, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
   
 
         
Three Months Ended Twelve Months Ended
Dec 31,   Dec 31, Dec 31,   Dec 31,
(In thousands, except per share amounts) 2015   2014 2015   2014
GAAP net (loss) $ (8,881 ) $ (1,628 ) $ (15,128 ) $ (19,111 )
Share-based compensation 3,501 4,440 15,311 16,027
Restructure of operations (18 ) - 751 -
Amortization of purchased intangible assets 423 433 1,707 1,740
Nonrecurring legal expenses   1,088       -     1,088       -  
Non-GAAP net (loss) income $ (3,887 )   $ 3,245   $ 3,729     $ (1,344 )

Earnings per share - diluted:

As reported $ (0.33 ) $ (0.06 ) $ (0.55 ) $ (0.67 )
Add back: per share impact of Non-GAAP adjustments $ 0.19 $ 0.17 $ 0.68 $ 0.62
Non-GAAP per share (loss) income $ (0.14 )   $ 0.11   $ 0.13     $ (0.05 )
 

 

ULTRATECH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
   
 
         
Dec 31, Dec 31,
(In thousands )   2015   2014*
ASSETS

(Unaudited)

 

Current assets:

Cash, cash equivalents and short-term investments $ 251,901 $ 269,730
Accounts receivable 28,108 44,217
Inventories, net 65,398 51,859
Prepaid expenses and other current assets     3,862     5,774
Total current assets 349,269 371,580
 
Equipment and leasehold improvements, net 17,280 20,926
Intangibles assets, net 12,288 13,995
Other assets     10,359     11,017
 
Total assets   $ 389,196   $ 417,518
 
         
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Notes payable $ 5,120 $ 5,120
Accounts payable 12,080 12,086
Deferred product and service income 4,499 8,638
Other current liabilities     12,146     11,302
Total current liabilities 33,845 37,146
 
Other liabilities 13,474 15,252
 
Stockholders' equity     341,877     365,120
 
Total liabilities and stockholders' equity   $ 389,196   $ 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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