Semitool revenues for first quarter up substantially

Spurred by new customers in Asia, Semitool Inc. this week reported revenue of $48.8 million for its fiscal first quarter, a substantial increase from $28.6 million in the same quarter last year.

The first quarter gross margin was 48 percent, compared to 54.5 percent in the year-ago first quarter as prior-year sales included inventory that had been previously written off.

Selling, general and administrative costs as a percent of sales decreased to 31 percent from 39 percent a year ago. Other income of $3.3 million included a $2.9 million settlement payment from Novellus Systems, Inc.

Net income for the period rose to $5 million, or 17 cents per diluted share, compared to net income of $738,000, or 3 cents per diluted share, for the first quarter of fiscal 2004.

During the first quarter, revenue grew 70 percent. The Raider (TM) line contributed 45 percent of the quarter's revenue, with sales of the Raider increasing 339 percent over the year-ago quarter.

"Six Raiders were booked during the quarter from new customers in Asia," said Ray Thompson, chairman and chief executive officer of Semitool. "Encouraged by an increase in non-U.S. sales of 183 percent, we continue to dedicate marketing efforts abroad with an emphasis on the Asian market.

"Another significant milestone was achieved during the quarter: ISO 9001:2000 certification," Thompson continued. "The ISO audit included three of Semitool's manufacturing locations. Because of our vertical integration, the certification is the equivalent of certifying virtually our entire supply chain. This competitive advantage creates quality control and cost benefits that attract customers."

Bookings for the first quarter of 2005 were $42.0 million, compared with $42.4 million in bookings in the fourth quarter of fiscal 2004. The first quarter 2005 bookings contained no license initiation fees, while the fourth quarter of 2004 included $3.3 million of such fees. Shipments for the first quarter of fiscal 2005 were $31.1 million. At Dec. 31, 2004, deferred revenue was $26.4 million and the company's shipping backlog was $48.6 million.

Cash, cash equivalents and marketable securities were $19.3 million at Dec. 31, 2004, compared to $22.4 million at the end of the fourth quarter of fiscal 2004.

Semitool expects second quarter 2005 revenue to be in the range of $40 million to $44 million. Earnings per diluted share for the second quarter of fiscal 2005 are expected to range from 5 cents to 8 cents. Shipments are expected to be in the range of $40 million to $44 million. The company reaffirms its full-year revenue guidance of $170 million to $200 million, as Raider tools gain repeat customers and greater market share.

Headquartered in Kalispell, Semitool is a manufacturer of wafer processing equipment for the semiconductor industry. The company maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on the Nasdaq National Market under the symbol SMTL.