Ultratech, Inc.
Apr 21, 2016

Ultratech Announces First Quarter 2016 Results

Results driven by positive momentum across all major product lines

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 April 2, 2016.

For the first quarter of fiscal 2016, Ultratech reported net sales of $45.2 million as compared to $41.9 million during the first quarter of fiscal 2015.

On a GAAP basis, Ultratech's net loss for the first quarter of fiscal 2016 was $1.2 million, or $(0.04) per share, as compared to net loss of $1.7 million, or $(0.06) per share, for the same quarter last year.

On a non-GAAP basis, Ultratech's net income for the first quarter of fiscal 2016 was $2.7 million, or $0.10 per share, as compared to net income of $2.9 million, or $0.11 per share, for the same quarter last year.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "Our first quarter results demonstrate the broad applicability of our major product lines, laser spike annealing, advanced packaging, and inspection, for multiple applications. Our revenue and bookings momentum in the quarter provide a strong foundation for the remainder of fiscal 2016, particularly driven by LSA and the second wave of demand for 28nm production coming from Asian foundries."

At April 2, 2016, Ultratech had $241.6 million in cash, cash equivalents and short-term investments. Working capital was $318.1 million and stockholders' equity was $12.85 per share based on 26,709,639 total shares outstanding as of April 2, 2016.

First Quarter 2016 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 800-344-6698 (toll free) or 785-830-7979 (international) 10 minutes prior to the start time. The passcode is 7034251. 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 7034251.

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 income is defined as GAAP net income excluding the impact of share-based compensation, restructuring, amortization of purchased intangible assets and non-recurring legal expenses. Management believes the presentation of this 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, amortization of purchased intangible assets and non-recurring legal expenses 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," "provides," "demonstrates," 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, 2015. 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.

(UTEKF)

   
ULTRATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
         
Three Months Ended
Apr 2,

Apr 4,

(In thousands, except per share amounts) 2016   2015
Total net sales* $ 45,210 $ 41,886

Cost of sales:

Cost of products sold 24,179 19,605
Cost of services   2,864       3,249  
Total cost of sales   27,043       22,854  
Gross profit 18,167 19,032

Operating expenses:

Research, development and engineering 8,235 8,424
Selling, general, and administrative   11,314       12,043  
Operating loss (1,382 ) (1,435 )
Interest expense (18 ) (31 )
Interest and other (expense) income, net   173       139  
Loss before income taxes (1,227 ) (1,327 )
Provision (benefit) for income taxes   (73 )     360  
 
Net loss $ (1,154 )   $ (1,687 )
 

Earnings per share - basic:

Net loss $ (0.04 ) $ (0.06 )
Number of shares used in per share calculations - basic 26,798 27,733

Earnings per share - diluted:

Net loss $ (0.04 ) $ (0.06 )
Number of shares used in per share calculations - diluted   26,798       27,733  
 
* Systems sales $ 38,492 $ 32,189
Parts sales 3,766 5,832
Service sales 2,752 3,765
License sales   200       100  
Total sales $ 45,210     $ 41,886  

   
ULTRATECH, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
         
Three Months Ended
Apr 2, Apr 4,

(In thousands, except per share amounts)

2016   2015
GAAP net loss ($1,154 ) ($1,687 )
Share-based compensation 3,449 4,184
Amortization of purchased intangible assets   418       428  
Non-GAAP net income $ 2,713     $ 2,925  

Earnings per share - diluted:

As reported ($0.04 ) ($0.06 )
Add back: per share impact of Non-GAAP adjustments $ 0.14 $ 0.17
Non-GAAP per share income $ 0.10     $ 0.11  

   
ULTRATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
         
Apr 2, Dec 31,
(In thousands )   2016   2015*
ASSETS (Unaudited)
 

Current assets:

Cash, cash equivalents and short-term investments $ 241,643 $ 251,901
Accounts receivable 50,743 28,108
Inventories, net 60,976 65,398
Prepaid expenses and other current assets     3,196     3,862
Total current assets 356,558 349,269
 
Equipment and leasehold improvements, net 15,988 17,280
Intangibles assets, net 11,870 12,288
Other assets     10,300     10,359
 
Total assets   $ 394,716   $ 389,196
 
         
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Notes payable $ 5,120 $ 5,120
Accounts payable 13,021 12,080
Deferred product and service income 6,150 4,499
Other current liabilities     14,175     12,146
Total current liabilities 38,466 33,845
 
Other liabilities 13,110 13,474
 
Stockholders' equity     343,140     341,877
 
Total liabilities and stockholders' equity   $ 394,716   $ 389,196
 
* The balance sheet as of December 31, 2015 has been derived from the audited financial statements as of that date.

Ultratech, Inc.
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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