EX-99 2 c16106exv99.htm PRESS RELEASE exv99
 

Exhibit 99
(FSI INTERNATIONAL LOGO)   NEWS
For additional information contact:   Benno Sand-Investor and Financial Media 952.448.8936
    Laurie Walker-Trade Media 952.448.8066
FOR IMMEDIATE RELEASE
FSI International, Inc. Announces Third Quarter and First Nine Months Fiscal 2007 Financial Results
     MINNEAPOLIS (June 19, 2007)—FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the third quarter of fiscal 2007 and for the first nine months ended May 26, 2007.
Fiscal 2007 Third Quarter and First Nine Months
     Sales for the third quarter of fiscal 2007 were $25.2 million, compared to $32.0 million for the same period in fiscal 2006. The Company’s net loss for the third quarter of fiscal 2007 was $5.6 million, or $0.19 per share, compared to a net loss of $2.4 million, or $0.08 per share, for the third quarter of fiscal 2006.
     Sales for the first nine months of fiscal 2007 were $96.3 million, compared to $72.9 million for the same period of fiscal 2006. The Company’s net loss for the first nine months of fiscal 2007 was $8.0 million, or $0.26 per share, as compared to a net loss of $10.4 million, or $0.35 per share for the first nine months of fiscal 2006.
     In the first nine months of fiscal 2007, the Company recorded a $4.1 million, or $0.13 per share, asset impairment charge associated with the Company’s investment in m•FSI LTD, a Japanese joint venture. The Company recorded a $500,000, or $0.02 per share, impairment charge related to an investment, for the first nine months of fiscal 2006.
     Backlog and deferred revenue was $20.1 million at the end of the third quarter of fiscal 2007, as compared to $48.5 million at the end of the third quarter last year. Orders for the third quarter of fiscal 2007 were $18.7 million, compared to $43.7 million in the third quarter of fiscal 2006.
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FSI International, Inc.
June 19, 2007
Page Two
     “Industry conditions, coupled with the timing of FSI customer-specific purchases continued to impact our financial performance in the third quarter,” said Don Mitchell, FSI chairman and CEO. “We anticipate that these factors will impact FSI for several more quarters; therefore, we are conducting a comprehensive program and cost structure review and expect to take actions in the fourth quarter, focused on lowering our breakeven revenue level and improving our margins,” continued Mitchell.
Balance Sheet
     As of the end of the fiscal 2007 third quarter, the Company had approximately $109 million in assets, including $25 million in cash, restricted cash, cash equivalents and marketable securities. The Company had a current ratio of 3.9 to 1.0 and a book value of $2.85 per share at the end of the fiscal 2007 third quarter.
Outlook
     The Company expects fourth quarter orders of $18 to $22 million as compared to $18.7 million in the third quarter of fiscal 2007.* Based on backlog and deferred revenue levels at the end of the third quarter and expected fourth quarter orders, the Company expects fourth quarter fiscal 2007 revenues to be approximately $20 to $24 million.* Based upon anticipated gross profit margins and operating expense run rate, the Company expects a net loss of approximately $3.5 to $4.5 million for the fourth quarter.*
Conference Call Details
     Investors will have the opportunity to listen to the conference call today at 3:30 p.m. CDT over the Internet. The webcast is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com or by visiting any of the investor sites in CCBN’s individual investor portal. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
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FSI International, Inc.
June 19, 2007
Page Three
About FSI
     FSI International, Inc. is a global supplier of surface conditioning equipment technology and support services for microelectronics manufacturing. Using the Company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray and CryoKinetic technologies, customers are able to achieve their process performance, flexibility and productivity goals. The Company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. FSI maintains a web site at http://www.fsi-intl.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
     This press release contains certain “forward-looking” statements (*), including, but not limited to: expected orders, revenues, gross margins, operating expense run rate, and net loss for the fourth quarter of fiscal 2007; and expected fourth quarter actions to lower the Company’s breakeven revenue level and to improve margins. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to: the length and extent of industry slowdowns and recoveries; order delays or cancellations; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for the Company’s products and its ability to meet demand; global trade policies; worldwide economic and political stability; the Company’s successful execution of internal performance plans; the cyclical nature of the Company’s business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the level of new orders; timely achievement of product acceptances; the timing and success of current and future product and process development programs; the success of the Company’s distributor in Japan; the success of the Company’s direct distribution organization; and the potential impairment of long-lived assets; as well as other factors listed from time to time
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FSI International, Inc.
June 19, 2007
Page Four
in the Company’s SEC reports including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal 2006 and the Company’s quarterly report on Form 10-Q for second quarter of fiscal 2007. The Company assumes no duty to update the information in this press release.
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FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                 
    Third Quarter Ended     Nine Months Ended  
    May 26, 2007     May 27, 2006     May 26, 2007     May 27, 2006  
Sales
   $ 25,227     $ 31,957     $ 96,284     $ 72,867  
Cost of goods
     15,840       18,909       56,485       37,821  
 
                        
 
                                
Gross margin
     9,387       13,048       39,799       35,046  
Selling, general and administrative expenses
     8,571       9,303       26,177       27,307  
Research and development expenses
     6,119       6,305       18,246       18,379  
 
                        
 
                                
Operating loss
     (5,303 )     (2,560 )     (4,624 )     (10,640 )
Interest and other income, net
     (310 )     191       (3,314 )     382  
 
                        
 
                                
Loss before income taxes
     (5,613 )     (2,369 )     (7,938 )     (10,258 )
Income tax expense
     55       12       130       37  
 
                        
 
                                
Loss before equity in earnings (loss) of affiliate
     (5,668 )     (2,381 )     (8,068 )     (10,295 )
Equity in earnings (loss) of affiliate
     25       (52 )     27       (155 )
 
                        
 
                                
Net loss
   $ (5,643 )   $ (2,433 )   $ (8,041 )   $ (10,450 )
 
                        
 
                                
Loss per share — basic
   $ (0.19 )   $ (0.08 )   $ (0.26 )   $ (0.35 )
 
                        
Loss per share — diluted
   $ (0.19 )   $ (0.08 )   $ (0.26 )   $ (0.35 )
 
                        
 
                                
Weighted average common shares
                                
Basic
     30,428       30,075       30,383       29,979  
Diluted
     30,428       30,075       30,383       29,979  
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FSI INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
                 
    May 26, 2007     Aug. 26, 2006  
Assets
                
 
                
Current assets
                
Cash, restricted cash, cash
                
equivalents and marketable securities
   $ 24,183     $ 26,916  
Receivables, net
     17,908       23,173  
Inventories
     35,504       35,682  
Other current assets
     7,943       11,340  
 
            
Total current assets
     85,538       97,111  
 
                
Property, plant and equipment, net
     20,958       20,395  
 
                
Investment in affiliate
     460       7,632  
Intangible assets, net
     605       1,246  
Other assets
     1,676       1,160  
 
            
Total assets
   $ 109,237     $ 127,544  
 
            
 
                
Liabilities and Stockholders’ Equity
                
 
                
Current liabilities
                
Trade accounts payable
   $ 4,208     $ 8,803  
Current portion of long-term debt
     523       —  
Deferred profit*
     3,292       4,149  
Customer deposits
     2,471       5,408  
Accrued expenses
     11,217       15,212  
 
            
Total current liabilities
     21,711       33,572  
 
                
Long-term debt
     786       —  
 
                
Total stockholders’ equity
     86,740       93,972  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 109,237     $ 127,544  
 
            
 
*   Deferred profit reflects deferred revenue less manufacturing and other related costs.
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FSI INTERNATIONAL, INC. AND SUBSIDIARIES
MISCELLANEOUS FINANCIAL INFORMATION
(in thousands, except percentages, per share and total employee data)
(unaudited)
                 
    Nine Months Ended  
    May 26, 2007     May 27, 2006  
Sales by Area
                
 
                
United States
     32 %     42 %
International
     68 %     58 %
 
                
Cash Flow Statement
                
 
                
Capital expenditures
   $ 1,586     $ 1,995  
Depreciation
     2,723       2,620  
Amortization
     399       403  
 
                
Miscellaneous Data
                
 
                
Total employees, including contract
     494       547  
Book value per share
   $ 2.85     $ 2.97  
Shares outstanding
     30,438       30,096  
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