-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RgZZIHBk7uOewRNj1E36uXtAaA5rUlVEsD0VBjf9y1k+4vtz2MTsHaQLaVuTuS5M 16QTUp882om4+8FyQ/6wjw== 0000950131-96-001614.txt : 19960419 0000950131-96-001614.hdr.sgml : 19960419 ACCESSION NUMBER: 0000950131-96-001614 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970417 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960418 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FSI INTERNATIONAL INC CENTRAL INDEX KEY: 0000841692 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 411223238 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17276 FILM NUMBER: 96548113 BUSINESS ADDRESS: STREET 1: 322 LAKE HAZELTINE DR CITY: CHASKA STATE: MN ZIP: 55318 BUSINESS PHONE: 6124485440 MAIL ADDRESS: STREET 1: 322 LAKE HAZELTINE DRIVE CITY: CHASKA STATE: MN ZIP: 55318 8-K 1 FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 April 17, 1996 (April 4, 1996) -------------------------------- Date of Report (Date of earliest event reported) FSI INTERNATIONAL, INC. ----------------------- (Exact name of registrant as specified in its charter) Minnesota 0-17276 41-1223238 - ------------------------ ------------------------ ------------------- (State of Incorporation) (Commission file number) (I.R.S. Employer Identification No.) 322 Lake Hazeltine Drive, Chaska, Minnesota 55318 - ------------------------------------------- -------------- (Address of principal executive offices) (Zip Code) Telephone Number: (612) 448-5440 --------------------------------- (Registrant's telephone number, including area code) ================================================================================ FORM 8-K ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. - ------- ------------------------------------- On April 4, 1996, Semiconductor Systems, Inc., a California corporation ("Semiconductor Systems"), merged with Spectre Acquisition Corp., a Minnesota corporation and a wholly owned subsidiary of the Registrant, with Semiconductor Systems as the surviving corporation. Following the acquisition, the Registrant intends to continue the acquired company's business of designing, manufacturing, marketing and supporting equipment used in the semiconductor, flat panel display, then film head and multi-chip module industries. In connection with the acquisition, which will be accounted for as a pooling of interests, the Registrant issued a total of 1,739,218 shares of its common stock. An aggregate of 310,000 of such shares were deposited in escrow to provide a fund for satisfying any indemnification obligations to the Registrant pursuant to the terms of the Agreement and Plan of Reorganization dated February 5, 1996. In addition, the Registrant issued options covering, in the aggregate, 60,782 shares of the Registrant's common stock in substitution of previously outstanding options to acquire shares of the acquired company's common stock. Additional information regarding the terms of the acquisition are included in the Agreement and Plan of Reorganization and the Press Release included herein as exhibits. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - ------- --------------------------------- The following information follows or is attached hereto as an exhibit: (a) The following financial statements of Semiconductors Systems, Inc. for the periods indicated and the Report of Independent Accountants listed below are included in the Registrant's Registration Statement on Form S-4 (File No. 333-01509) and are hereby incorporated by reference. Financial Statements of Semiconductor Systems, Inc.: Report of Independent Accountants Balance Sheets as of December 31, 1994 and 1995 Statements of Operations for the years ended December 31, 1993, 1994 and 1995 Statements of Cash Flows for the years ended December 31, 1994 and 1995 Statements of Shareholders' Equity for the years ended December 31, 1993, 1994 and 1995 Notes to Financial Statements (b) Pro Forma Combined Financial Information of FSI ------------------------------------------------ International, Inc. and Semiconductor Systems, Inc. --------------------------------------------------- Description of the Pro Forma Combined Financial Information Unaudited Pro Forma Combined Statements of Operations for the quarters and six months ended February 24, 1996 and February 25, 1995 and for the fiscal years ended August 26, 1995, August 27, 1994 and August 28, 1993 Unaudited Pro Forma Combined Balance Sheet as of February 24, 1996 Notes to Unaudited Pro Forma Combined Financial Information (c) Exhibits -------- 5.1 Agreement and Plan of Reorganization dated February 5, 1996 by and among FSI International, Inc., Spectre Acquisition Corp. and Semiconductor Systems, Inc. (and selected exhibits). Incorporated by reference to exhibits 2.1, 2.1(a) and 2.1(b) to the Registrant's Registration Statement on Form S-4 (File No. 333-01509). The Registrant hereby agrees to furnish supplementarily a copy of any omitted schedule or exhibit to the Commission upon request. 5.2 Shareholders Agreement dated February 5, 1996 by and among FSI International, Inc. and the Shareholders of Semiconductor Systems, Inc. Incorporated by reference to exhibit 2.2 to the Registrant's Registration Statement on Form S-4 (File No. 333-01509). 23 Consent of Price Waterhouse LLP. 99 Press Release of FSI International, Inc. dated April 8, 1996. Unaudited Pro Forma Combined Financial Information As of February 24, 1996 and for the quarters and six months ended February 24, 1996 and February 25, 1995 and for the fiscal years in the three-year period ended August 26, 1995 FSI International, Inc. (FSI) and Semiconductor Systems, Inc. (Semiconductor Systems) The following unaudited pro forma combined financial information presents the pro forma effect of the acquisition of Semiconductor Systems by FSI on FSI's historical financial position and results of operations using the pooling-of- interests method of accounting. Semiconductor Systems' fiscal year ends December 31. In presenting the pooling-of-interests combination on a pro forma basis, Semiconductor Systems' financial statements for the twelve months ended August 26, 1995 were combined with FSI's financial statements for the same period and Semiconductor Systems' financial statements for the years ended December 31, 1994 and 1993 were combined with FSI's for the years ended August 27, 1994 and August 28, 1993, respectively. Semiconductor Systems' unaudited results for the four months ended December 31, 1994 included sales of $10,500,000 and pro forma net income of $653,000. An adjustment will be made to stockholders' equity in the combined historical financial statements to eliminate the effect of including Semiconductor Systems' net income for the four months ended December 31, 1994 in the statements of operations for both fiscal years ended August 26, 1995 and August 27, 1994. The pro forma statements of operations for the quarters and six months ended February 24, 1996 and February 25, 1995 and the balance sheet as of February 24, 1996 of FSI have been combined with Semiconductor Systems' statements of operations for the quarters and six months ended February 25, 1996 and February 26, 1995, respectively, and the balance sheet as of February 25, 1996. The pro forma combined financial information should be read in conjunction with the historical financial information of FSI and Semiconductor Systems included in FSI's Registration Statement on Form S-4 (File No. 333-01509) and are hereby incorporated by reference. The pro forma combined financial information has been prepared and included as required by the rules and regulations of the Securities and Exchange Commission and does not purport to be indicative of the results that actually would have been obtained if the acquisition had been effected on the dates indicated or of the results which may be obtained in the future. FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ------------------------------ FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined Quarter Ended Quarter Ended Quarter Ended February 24, February 25, Pro Forma February 24, 1996 1996 Adjustments 1996 - ---------------------------------------------------------------------------------------------------------------- Sales $65,850,414 $9,582,000 $75,432,414 Cost of goods sold 35,998,578 6,444,700 42,443,278 - ---------------------------------------------------------------------------------------------------------------- Gross profit 29,851,836 3,137,300 32,989,136 Selling, general and administrative expenses 12,707,871 1,527,500 14,235,371 Research and development expenses 8,417,117 1,055,900 9,473,017 - ---------------------------------------------------------------------------------------------------------------- Operating income 8,726,848 553,900 9,280,748 Interest expense (549) (110,800) (111,349) Interest income 1,274,785 0 1,274,785 Other income (expense), net (14,019) 4,100 (9,919) - ---------------------------------------------------------------------------------------------------------------- Income before income taxes 9,987,065 447,200 10,434,265 Income tax expense 3,620,402 3,800 $ 175,000 (d) 3,799,202 - ---------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 6,366,663 443,400 (175,000)(d) 6,635,063 Minority interest (116,334) 0 (116,334) Equity in earnings of affiliates 1,894,577 0 1,894,577 - ---------------------------------------------------------------------------------------------------------------- Net income $ 8,144,906 $ 443,400 $ (175,000)(d) $ 8,413,306 - ---------------------------------------------------------------------------------------------------------------- Net income per common share $.38 $.05 $.36 - ---------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,165,016)(a) common share equivalents 21,371,529 8,165,016 1,775,081 (a) 23,146,610 - ----------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ----------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined Quarter Ended Quarter Ended Quarter Ended February 25, February 26, Pro Forma February 25, 1995 1995 Adjustments 1995 - ------------------------------------------------------------------------------------------------------------------- Sales $42,727,029 $ 6,236,000 $48,963,029 Cost of goods sold 24,369,618 3,462,000 27,831,618 - -------------------------------------------------------------------------------------------------------------------- Gross profit 18,357,411 2,774,000 21,131,411 Selling, general and administrative expenses 7,469,359 1,484,000 8,953,359 Research and development expenses 6,040,099 797,000 6,837,099 - -------------------------------------------------------------------------------------------------------------------- Operating income 4,847,953 493,000 5,340,953 Interest expense (7,427) (12,000) (19,427) Interest income 119,822 0 119,822 Other income (expense), net 59,853 24,000 83,853 - -------------------------------------------------------------------------------------------------------------------- Income before income taxes 5,020,201 505,000 5,525,201 Income tax expense 1,253,472 (8,000) $ 210,000(d) 1,455,472 - -------------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 3,766,729 513,000 (210,000)(d) 4,069,729 Minority interest 0 0 0 Equity in earnings of affiliates 322,500 0 322,500 - -------------------------------------------------------------------------------------------------------------------- Net income $ 4,089,229 $ 513,000 $ (210,000)(d) $ 4,392,229 - -------------------------------------------------------------------------------------------------------------------- Net income per common share $.28 $.06 $.27 - -------------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,062,643)(a) common share equivalents 14,722,977 8,062,643 1,752,825(a) 16,475,802 - --------------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ------------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined Six Months Six Months Six Months Ended Ended Ended February 24, February 25, Pro Forma February 24, 1996 1996 Adjustments 1996 - ------------------------------------------------------------------------------------------------------------- Sales $127,998,139 $ 17,778,000 $145,776,139 Cost of goods sold 71,125,946 11,860,700 82,986,646 - ------------------------------------------------------------------------------------------------------------- Gross profit 56,872,193 5,917,300 62,789,493 Selling, general and administrative expenses 24,021,672 2,967,500 26,989,172 Research and development expenses 15,950,025 2,054,900 18,004,925 - ------------------------------------------------------------------------------------------------------------- Operating income 16,900,496 894,900 17,795,396 Interest expense (9,664) (224,800) (234,464) Interest income 2,696,857 7,000 2,703,857 Other income (expense), net (30,671) (42,900) (73,571) - ------------------------------------------------------------------------------------------------------------- Income before income taxes 19,557,018 634,200 20,191,218 Income tax expense 7,040,467 9,800 $ 246,000 (d) 7,296,267 - ------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 12,516,551 624,400 (246,000) (d) 12,894,951 Minority interest (278,164) 0 (278,164) Equity in earnings of affiliates 3,450,676 0 3,450,676 - ------------------------------------------------------------------------------------------------------------- Net income $15,689,063 $ 624,400 $ (246,000) (d) $ 16,067,463 - ------------------------------------------------------------------------------------------------------------- Net income per common share $.73 $.08 $.69 - ------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,124,894) (a) common share equivalents 21,454,127 8,124,894 1,766,358 (a) 23,220,485 - -------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ----------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined Six Months Six Months Six Months Ended Ended Ended February 25, February 26, Pro Forma February 25, 1995 1995 Adjustments 1995 - -------------------------------------------------------------------------------------------------------------------- Sales $72,911,798 $13,442,000 $86,353,798 Cost of goods sold 40,632,943 7,821,000 48,453,943 - -------------------------------------------------------------------------------------------------------------------- Gross profit 32,278,855 5,621,000 37,899,855 Selling, general and administrative expenses 13,798,384 2,923,000 16,721,384 Research and development expenses 10,913,359 1,620,000 12,533,359 - -------------------------------------------------------------------------------------------------------------------- Operating income 7,567,112 1,078,000 8,645,112 Interest expense (13,032) (17,000) (30,032) Interest income 250,051 23,000 273,051 Other income (expense), net 56,294 24,000 80,294 - -------------------------------------------------------------------------------------------------------------------- Income before income taxes 7,860,425 1,108,000 8,968,425 Income tax (benefit) expense 2,043,667 (5,000) $ 450,000 (d) 2,488,667 - -------------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 5,816,758 1,113,000 (450,000) (d) 6,479,758 Minority interest 0 0 0 Equity in earnings of affiliates 1,322,900 0 1,322,900 - -------------------------------------------------------------------------------------------------------------------- Net income $ 7,139,658 $ 1,113,000 $ (450,000) (d) $ 7,802,658 - -------------------------------------------------------------------------------------------------------------------- Net income per common share $.49 $.14 $.48 - -------------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,062,643) (a) common share equivalents 14,570,038 8,062,643 1,752,825 (a) 16,322,863 - --------------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ----------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined August 26, August 27, Pro Forma August 26, 1995 1995 Adjustments 1995 - ------------------------------------------------------------------------------------------------------------------ Sales $190,403,364 $28,057,000 $218,460,364 Cost of goods sold 112,002,351 16,651,000 128,653,351 - ------------------------------------------------------------------------------------------------------------------ Gross profit 78,401,013 11,406,000 89,807,013 Selling, general and administrative expenses 33,908,913 6,090,000 39,998,913 Research and development expenses 24,864,705 3,172,000 28,036,705 - ------------------------------------------------------------------------------------------------------------------ Operating income 19,627,395 2,144,000 21,771,395 Interest expense (27,745) (136,000) (163,745) Interest income 2,067,619 80,000 2,147,619 Other income (expense), net 133,079 0 133,079 - ------------------------------------------------------------------------------------------------------------------ Income before income taxes 21,800,348 2,088,000 23,888,348 Income tax expense 5,926,000 16,000 $ 825,000 (d) 6,767,000 - ------------------------------------------------------------------------------------------------------------------ Income before minority interest in earnings of affiliates 15,874,348 2,072,000 (825,000) (d) 17,121,348 Minority interest (155,562) 0 (155,562) Equity in earnings of affiliates 3,566,900 0 3,566,900 - ------------------------------------------------------------------------------------------------------------------ Net income $ 19,285,686 $ 2,072,000 $ (825,000) (d) 20,532,686 - ------------------------------------------------------------------------------------------------------------------ Net income per common share $1.13 $.26 $1.09 - ------------------------------------------------------------------------------------------------------------------ Weighted average common shares and (8,072,332) (a) common share equivalents 17,070,549 8,072,332 1,754,931 (a) 18,825,480 - ------------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ---------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined August 27, December 31, Pro Forma August 27, 1994 1994 Adjustments 1994 - ------------------------------------------------------------------------------------------------------------------- Sales $96,437,653 $28,229,000 $124,666,653 Cost of goods sold 55,788,375 16,123,000 71,911,375 - ------------------------------------------------------------------------------------------------------------------- Gross profit 40,649,278 12,106,000 52,755,278 Selling, general and administrative expenses 19,552,376 4,963,000 24,515,376 Research and development expenses 15,742,894 3,013,000 18,755,894 - ------------------------------------------------------------------------------------------------------------------- Operating income 5,354,008 4,130,000 9,484,008 Interest expense (417,521) (53,000) (470,521) Interest income 318,211 81,000 399,211 Other income (expense), net (154,314) 0 (154,314) - ------------------------------------------------------------------------------------------------------------------- Income before income taxes 5,100,384 4,158,000 9,258,384 Income tax expense 1,254,000 37,000 $ 1,472,000 (d) 2,763,000 - ------------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 3,846,384 4,121,000 (1,472,000) (d) 6,495,384 Minority interest 0 0 0 Equity in earnings of affiliates 1,799,750 0 1,799,750 - ------------------------------------------------------------------------------------------------------------------- Net income $ 5,646,134 $ 4,121,000 $(1,472,000) (d) $8,295,134 - ------------------------------------------------------------------------------------------------------------------- Net income per common share $.43 $.51 $.55 - ------------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,050,848) (a) common share equivalents 13,222,408 8,050,848 1,750,260 (a) 14,972,668 - -------------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Historical ------------------------------ FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined August 28, December 31, Pro Forma August 28, 1993 1993 Adjustments 1993 - --------------------------------------------------------------------------------------------------------------- Sales $78,432,284 $25,673,000 $104,105,284 Cost of goods sold 49,464,226 12,665,000 62,129,226 - --------------------------------------------------------------------------------------------------------------- Gross profit 28,968,058 13,008,000 41,976,058 Selling, general and administrative expenses 14,496,165 3,832,000 18,328,165 Research and development expenses 11,760,306 2,632,000 14,392,306 - --------------------------------------------------------------------------------------------------------------- Operating income 2,711,587 6,544,000 9,255,587 Interest expense (556,984) (21,000) (577,984) Interest income 74,308 143,000 217,308 Other income (expense), net (188,217) 0 (188,217) - --------------------------------------------------------------------------------------------------------------- Income before income taxes 2,040,694 6,666,000 8,706,694 Income tax expense 360,000 176,000 $ 2,350,000 (d) 2,886,000 - --------------------------------------------------------------------------------------------------------------- Income before minority interest in earnings of affiliates 1,680,694 6,490,000 (2,350,000) (d) 5,820,694 Minority interest 0 0 0 Equity in earnings of affiliates 1,277,261 0 1,277,261 - --------------------------------------------------------------------------------------------------------------- Net income $ 2,957,955 $ 6,490,000 $(2,350,000) (d) 7,097,955 - --------------------------------------------------------------------------------------------------------------- Net income per common share $.28 $.80 $.58 - --------------------------------------------------------------------------------------------------------------- Weighted average common shares and (8,127,123) (a) common share equivalents 10,557,646 8,127,123 1,766,843 (a) 12,324,489 - ---------------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SEMICONDUCTOR SYSTEMS, INC. UNAUDITED PRO FORMA COMBINED BALANCE SHEET
Historical ---------------------------- FSI Semiconductor International Systems, Pro Forma Inc. Inc. Combined February 24, February 25, Pro Forma February 24, Assets 1996 1996 Adjustments 1996 - ---------------------------------------------------------------------------------------------------------- Current assets: Cash and cash equivalents $ 56,416,364 $(1,378,200) $ 55,038,164 Marketable securities 38,027,611 0 38,027,611 Trade accounts receivable, net 48,739,111 5,669,200 54,408,311 Trade accounts receivable from affiliates 15,823,191 0 15,823,191 Inventories 37,730,699 12,740,100 50,470,799 Deferred income tax benefit 5,828,018 0 $ 1,500,000 (c) 7,328,018 Other current assets 3,486,573 155,800 3,642,373 - ---------------------------------------------------------------------------------------------------------- Total current assets 206,051,567 17,186,900 1,500,000 224,738,467 - ---------------------------------------------------------------------------------------------------------- Property, plant and equipment, net 29,829,805 1,383,300 31,213,105 Investment in affiliates 12,264,046 0 12,264,046 Deferred income tax benefit - long-term 595,085 0 595,085 Deposits and other assets 4,179,270 682,500 4,861,770 - ---------------------------------------------------------------------------------------------------------- $252,919,773 $19,252,700 $ 1,500,000 $273,672,473 - ---------------------------------------------------------------------------------------------------------- Liabilities and Stockholders' Equity - ---------------------------------------------------------------------------------------------------------- Current liabilities: Notes payable to bank (line of credit) $ 0 $ 4,769,300 $ 4,769,300 Current maturities of long-term debt 11,365 206,200 217,565 Trade accounts payable 21,405,129 2,625,200 24,030,329 Accrued expenses 23,887,793 2,711,900 26,599,693 Customer deposits 2,016,742 0 2,016,742 Deferred revenue 6,980,582 0 6,980,582 - ---------------------------------------------------------------------------------------------------------- Total current liabilities 54,301,611 10,312,600 64,614,211 - ---------------------------------------------------------------------------------------------------------- Long-term debt, less current maturities 55,485 351,300 406,785 Other long-term liabilities 18,520 0 18,520 Minority interest 936,984 0 936,984 Stockholders' equity: Common stock 148,110,246 8,000 $ 8,580,800 (b) 158,199,046 1,500,000 (c) Retained earnings (deficit) 48,260,965 8,580,800 (8,580,800) (b) 48,260,965 Cumulative translation adjustment 1,235,962 0 1,235,962 - ---------------------------------------------------------------------------------------------------------- Total stockholders' equity 197,607,173 8,588,800 1,500,000 207,695,973 - ---------------------------------------------------------------------------------------------------------- $252,919,773 $19,252,700 $ 1,500,000 $273,672,473 - ----------------------------------------------------------------------------------------------------------
FSI INTERNATIONAL, INC. AND SUBSIDIARIES Notes to Unaudited Pro Forma Combined Financial Information THE FOLLOWING PRO FORMA ITEMS ARE REFLECTED IN THE ACCOMPANYING UNAUDITED PRO FORMA COMBINED BALANCE SHEET AND STATEMENTS OF OPERATIONS. (a) Pro forma net income per common and common equivalent share was computed by dividing pro forma net income by the pro forma combined weighted average number of common and common equivalent shares outstanding. The pro forma adjustment for combined weighted average number of common and common equivalent shares was based upon the weighted average number of common and common equivalent shares of Semiconductor Systems multiplied by the exchange ratio. (b) Adjustment to transfer the undistributed earnings of Semiconductor Systems to common stock from retained earnings. Semiconductor Systems was an S Corporation and under a pooling of interests business combination, the combined enterprise should report the undistributed earnings of the S Corporation as additional capital. (c) Adjustment to recognize the effect of recording net deferred tax assets related to existing temporary differences of Semiconductor Systems as if it had been a C Corporation versus an S Corporation. The net deferred tax assets and corresponding tax benefit will be recorded in the historical financial statements in the third quarter of fiscal 1996. (d) Adjustment to recognize the effect of the income tax expense for Semiconductor Systems as if it had been a C Corporation versus an S Corporation. In connection with the merger, approximately $800,000 of merger costs and expenses will be incurred and will be charged to expense in the third quarter of fiscal 1996. The merger expenses will consist of legal, accounting and investment banking fees. These expenses have not been included in the Pro Forma Combined Financial Information. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized. FSI INTERNATIONAL, INC. ----------------------- (Registrant) Dated: April 17, 1996 By: /s/Benno Sand --------------------------------------- Benno Sand, Executive Vice President and Chief Financial Officer on behalf of the Registrant and as Principal Financial Officer INDEX TO EXHIBITS Exhibit No. - ----------- 5.1 Agreement and Plan of Reorganization dated February 5, 1996 by and among FSI International, Inc., Spectre Acquisition Corp. and Semiconductor Systems, Inc. (and selected exhibits) Incorporated by reference to exhibits 2.1, 2.1(a) and 2.1(b) to the Registrant's Registration Statement on Form S-4 (File No. 333-01509). 5.2 Shareholders Agreement dated February 5, 1996 by and among FSI International, Inc. and the Shareholders of Semiconductor Systems, Inc. Incorporated by reference to exhibit 2.2 to the Registrant's Registration Statement on Form S-4 (File No. 333-01509). 23 Consent of Price Waterhouse LLP. 99 Press Release of FSI International, Inc. dated April 8, 1996. EX-23 2 CONSENT OF INDEPENDENT AUDITORS Exhibit 23 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Prospectus constituting part of the Registration Statement on Form S-4 (No. 333-01509) of FSI International, Inc. of our report dated February 23, 1996 relating to the consolidated financial statements of Semiconductor Systems, Inc. which appears in the Current Report on Form 8-K of FSI International, Inc. dated April 17, 1996. PRICE WATERHOUSE LLP San Jose, California April 12, 1996 EX-99 3 PRESS RELEASE OF FSI INTL. INC. DATED 04-08-96 FROM: FOR: Padilla Speer Beardsley Inc. FSI International, Inc. 224 Franklin Avenue West 322 Lake Hazeltine Drive Minneapolis, Minnesota 55404 Chaska, Minnesota 55318 (Nasdaq: FSII) Marian Briggs 612/871-8877 Benno Sand 612/448-8936 FOR IMMEDIATE RELEASE - --------------------- FSI INTERNATIONAL, INC. ANNOUNCES COMPLETION OF THE ACQUISITION OF SEMICONDUCTOR SYSTEMS, INC. MINNEAPOLIS, April 8, 1996 -- FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the semiconductor industry, today announced that it has consummated its previously announced agreement to acquire Semiconductor Systems, Inc. Under the agreement, Semiconductor Systems shareholders are entitled to receive, in the aggregate, approximately 1,739,200 shares of FSI common stock. In addition, FSI has issued options covering, in the aggregate, approximately 60,800 shares of FSI common stock, in substitution of previously outstanding options to acquire Semiconductor Systems common stock. Joel Elftmann, FSI's chairman, president and chief executive officer, said, "The acquisition of Semiconductor Systems, with its people, technology and expertise, positions FSI's Microlithography Division to provide a broader range of products to existing and future customers, including resist processing equipment used in conjunction with thin film head and flat panel display manufacturing." Semiconductor Systems' products include the ORBITRAK(R) Semiconductor Processing System, APEX Flat Panel Display Processing System and Scorpio Processing System. The Orbitrak system is recognized as a precision, small footprint, lithography processing system, while the Scorpio System is primarily used in the manufacturing of thin film heads and multi-chip modules. The company also manufactures two track products: the System 500 and 150 Lithography Processing Systems. Semiconductor Systems' operations are located in Fremont, California. Semiconductor Systems' backlog was approximately $11 million as of February 25, 1996. Since orders can be canceled or delayed by customers, the backlog is not necessarily indicative of the contribution Semiconductor Systems will make to combined sales in future periods. (more) April 8, 1996 Page 2 Although the acquisition of Semiconductor Systems did not occur until after the end of FSI's fiscal 1996 second quarter, on a pro forma basis, assuming the acquisition occurred immediately prior to the beginning of the respective periods, the financial results of the combined operations would have been as follows: . For the second fiscal quarter, sales would have been $75.4 million, compared with $49.0 million in the year-earlier period. The company's net income would have been $8.4 million or $.36 per share, versus net income of $4.4 million, or $.27 per share, last year. . For the first half of fiscal 1996, sales would have been $145.8 million, up 68.8 percent from $86.4 million last year. The company's fiscal 1996 first half net income would have been $16.1 million, or $.69 per share, compared to $7.8 million, or $.48 per share, in the earlier period. In the fiscal 1996 third quarter, the company expects to record an $800,000 charge to earnings, or approximately $.03 per share, relating to Semiconductor Systems' acquisition costs. In addition, the Company expects to recognize a $1.5 million tax benefit, or approximately $.06 per share, to reflect the effect of recording net deferred tax assets of Semiconductor Systems as if it had been a C corporation versus an S corporation. Certain of Semiconductor Systems' customers recently announced their intent to delay construction of or equipping semiconductor manufacturing facilities. As a result, the acquisition is estimated to be slightly dilutive ($.02 - $.03 per share) to FSI's combined financial results for the second half of fiscal 1996, after inclusion of the acquisition costs and tax benefit discussed above. Any order cancellations or additional delays by FSI's or Semiconductor Systems' customers could have an adverse effect on FSI's financial results for the second half of fiscal 1996. Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that involve risks and uncertainties. In addition to the factors discussed above, other factors that could cause actual results to differ materially from those described in the forward-looking statements include: volatility in the demand and price for semiconductors; the risk of push-outs of delivery dates for equipment orders; the risk of order cancellations; the risk of delays in introducing new products and the market's acceptance of such (more) April 8, 1996 Page 3 products; the successful integration of the personnel, products and operation of Semiconductor Systems with those of FSI; and other risk factors described in the company's most recently filed SEC documents, such as its Form 10-K filed November 22, 1995, Form 10-Q filed January 8, 1996, and Form S-4 filed March 6, 1996. FSI International, Inc. is a leader in producing automated surface conditioning equipment for processing silicon wafers. The company develops, manufactures, markets and services photoresist processing cluster tools, spray processing systems, vapor phase processing systems, and chemical management systems for use in the fabrication of advanced semiconductor integrated circuits. FSI's customers include semiconductor manufacturers located throughout North America, Europe, Japan and the Far East. (more) FSI INTERNATIONAL, INC. PRO FORMA STATEMENTS OF OPERATIONS (in thousands, except per share data)
Second Quarter Ended Six Months Ended --------------------- ------------------- Feb. 24, Feb. 25, Feb. 24, Feb. 25, 1996 1995 1996 1995 ---------- --------- --------- -------- (unaudited) (unaudited) Income Statement Data: Sales $75,432 $48,963 $145,776 $86,353 Gross profit 32,989 21,131 62,789 37,899 Selling, general & administrative 14,235 8,953 26,989 16,721 expenses Research & development expenses 9,473 6,837 18,005 12,533 Operating income 9,281 5,341 17,795 8,645 Interest expense 112 20 235 30 Interest income 1,275 120 2,704 273 Other (expense) income (10) 84 (74) 80 Income before income taxes 10,434 5,525 20,190 8,968 Income taxes 3,799 1,455 7,296 2,488 Minority interest 116 -- 278 -- Equity in earnings of affiliates 1,894 322 3,451 1,322 Net income $ 8,413 $ 4,392 $ 16,067 $ 7,802 Net income per common share $.36 $.27 $.69 $.48 Weighted average common shares 23,147 16,476 23,235 16,323
Note: The above unaudited pro forma combined financial information presents the pro forma effect of the acquisition of Semiconductor Systems, Inc. by FSI on FSI's historical results of operations using the pooling-of-interest method of accounting. The pro forma combined statements of operations for the fiscal quarters and six-month periods ended February 24, 1996 and February 25, 1995 are presented as though the acquisition had occurred immediately prior to the beginning of the respective periods using FSI's consolidated statements of operations for the quarters and six months ended February 24, 1996 and February 25, 1995 and Semiconductor Systems' statements of operations for the quarter and six months ended February 25, 1996 and February 26, 1995. Pro forma data includes adjustments for the effect of recognizing income tax expense for Semiconductor Systems as if it had been a C Corporation versus an S Corporation. The above pro forma information is not necessarily indicative of the operating results that would have occurred if the acquisition had occurred on the dates indicated or the results which may be obtained in the future. # # # -----END PRIVACY-ENHANCED MESSAGE-----