TABY, Sweden, April 22, 2002 (PRIMEZONE) -- Micronic Laser Systems AB (Stockholmsborsen's "Attract 40 list":MICR), is at the forefront in semiconductor and display laser pattern generators for the production of photomasks to the worldwide electronics industry.
-- Micronic today received an order from Photronics for a Sigma7000.
The system will be shipped in the third quarter of 2002 at the
latest. See separate press release.
Micronic Group First Quarter Report, January 1 - March 31, 2002. (Figures in brackets relate to the January 1 - March 31, 2001 period)
-- Net sales in first quarter MSEK 52 (117). -- Fit quarter EBIT results MSEK -62 (-33). -- First quarter order intake MSEK 49 (110). -- Closing order book MSEK 274 (319)
"The quarter is characterized by intense and successful work to secure shipment of at least one Sigma system during the first half of 2002. I am also proud to announce that Micronic has received an order from Photronics, for the shipment of a Sigma7000. Photronics, one of the world's leading photomask manufacturer, is now a valued customer of ours," said Sven Lofquist, president and CEO of Micronic Laser Systems, he continued, "Micronic has also begun initial activities in an exciting new market that brings our SLM technology into direct write semicondustor applications."
Key Events
-- Micronic received an order from Japan for an MP80+ system, to be
used in advanced electronic packaging.
-- The Annual General Meeting took place on March 21. The members of
the Board were re-elected and Mr. Goran Malm was elected as a new
member of the Board.
-- Shipment of one advanced TFT-system was delayed into second
quarter due to longer than expected clean room preparation at
customer site.
-- Micronic received, in April, an order from Photronics, for a
Sigma7000, with shipment in the third quarter at the latest.
Markets and Micronic Products
Semiconductors
The semiconductor industry has not yet recovered since last year's decline. The message by market analysts in January was that 2002 as a full year, for the equipment industry, still will decline. A rebound will come towards the end of this year and into 2003. Dataquest identified mask lithography as one of the growth segments in 2002. Their revenue forecast for semiconductor pattern generators for 2002 is 20 percent above 2001 and they estimate a growth of approximately 35 percent for 2003.
Micronic's customers are showing a strong interest in 100 nanometer technology capability, a typical trend is to focus on technology in down turns. The capacity need for the 130 nanometer node is dependent on the strength in and timing of the semiconductor market rebound.
Micronic is well positioned with the Sigma7000 product line, the market's most advanced laser pattern generator for volume production of critical masks. The interest received from our customer base for our products continued to be strong.
Shipment of the first Sigma-system to DuPont Photomasks will take place in the second quarter of 2002, followed by shipment to Photronics.
Display
In 2001, increased production capacity for flat screens led to lower prices and a significant increase in demand. TFT computer monitors have surpassed TFT laptop displays as the leading application. Display manufacturers have been close to full capacity since the third quarter of 2001. This is leading to a new round of investments to increase production. New factories will be up and running at the end of this year and the trend is expected to continue in 2003.
Multi-Purpose
Electronic packaging technology is characterized by fast changes, which is a positive sign for Micronic's advanced pattern generators. However the weakness in the semiconductor market makes it difficult to forecast the number of new tools needed.
In the first quarter, Micronic received an order from Japan, for an MP80+ system, to be used in advanced electronic packaging.
Direct Write Market
Since a photomask set is needed, whether one wishes to produce a hand full of semiconductors or millions of devices, the dramatically escalating cost and/or availability of the photomask has become a critical factor in the manufacturing process. One can easily see that in critical time to market and low volume applications, the photomask becomes a major timely and economical obstacle during the design verification process.
Many planned products simply never make it to the silicon due to the high cost of the photomask. The photomask based process that generated unprecedented levels of improvement in the semiconductor industry has now become a barrier for many applications.
Micronic's unique SLM technology makes it possible to develop a programmable stepper where pattern is transferred directly on to the wafer, without using photomasks. Micronic has had extensive dialogue with a number of major semiconductor manufacturers. There is a clear message that the programmable stepper concept fueled by the SLM technology can be fundamental to the future economical health of the semiconductor industry. Consequently, this is a major opportunity that we are carefully evaluating and consider the best way going forward.
Key Financials
Accounting Principles
Starting January 1, 2002, Micronic accounts for R&D expenses in accordance with the Swedish Financial Accounting Standards Council recommendation no 15, Intangible assets.
Net Sales
Net sales for the first quarter reached MSEK 52 (117), including one system and service.
Order Intake and Order Backlog
Order intake in the first quarter amounted to MSEK 49 (110), consisting of one new system and service.
Closing order book amounted to MSEK 274 (319), which is expected to be shipped and invoiced in 2002.
Operating Costs
Operating costs, including change of work in progress, amounted to MSEK 114 (150). These costs include cost of sales MSEK 26 (64), R&D MSEK 57 (62), G&A MSEK 30 (30) and other operating income/costs MSEK 0 (6).
After an individual valuation of all R&D projects, Micronic is accounting for R&D costs, amounting to MSEK 18.9, as intangible assets. Other R&D costs, for the first quarter amounting to MSEK 57.4, has been accounted for as general R&D and is therefore accounted for as they occur. Out of this, MSEK 11.1 is related to direct write development.
Profitability
The EBIT results were MSEK -62 (-33).
Had R&D costs been accounted for in accordance with former accounting principles, EBIT results would have been MSEK -80.
Earnings per Share
The total number of shares issued are 19 215 283. After full dilution, including warrants net after withdrawals, the company will have 21 793 733 shares. Each share has a par value of SEK 1.
Earnings per share, after tax and full dilution, was SEK -2,06 (-1,16 SEK).
Capital Expenditure
Net investments on premises as well as in machinery and equipment amounted to MSEK 4.
Investments in intangible assets related to R&D amounted to MSEK 19.
Personnel
During the first quarter the number of employees increased from 327 to 329.
Cash-Flow, Liquid Funds and Financial Position
During the first quarter liquid funds decreased by MSEK 45 (-31), totaling MSEK 507 at the end of the quarter, excluding an unutilized overdraft facility.
Operations have used MSEK 82 (-171), while cash flow from changes in working capital generated MSEK 61 (57). Net capital expenditure amounted to MSEK 24 (50), and comes from additional investments on premises, machinery and equipment as well as intangible assets. Funds from external sources amounted to MSEK 0 (-1).
The equity/assets ratio was 52 (69) percent at the end of the quarter.
Future Outlook
Early indications of a recovery for the capital equipment industry has been seen although the general sentiment is still unchanged. The trend towards formal orders being placed close to shipment is expected to continue until the market recovers. This implies that quarterly booking will continue to fluctuate heavily and that inventory, related to booking, will continue to be high.
The outlook for the full year remains unchanged. The Board of Directors estimates that net sales for the first six months in 2002 will be in line with last year's while estimates for the full year indicates an increase in sales at least in accordance with the market growth of semiconductor pattern generators. It is the opinion of the Board of Directors that Micronic's product line Sigma7000, based on the SLM-technology, has a significant potential to become the dominant product for advanced photomask production in the long run.
Miscellaneous
This interim report has not been subject to examination by the company's auditors.
Future Reports
April - June 30, 2002 July 18 July - September 30, 2002 October 23
Micronic Laser Systems is a Swedish high-tech company engaged in the development, manufacture and marketing of a series of extremely accurate laser pattern generators for the production of photomasks. The technology involved is known as microlithography. Micronic's systems are used by the world's leading electronics companies in the manufacture of television and computer displays, semiconductor circuits and semiconductor packaging components. Micronic is located in Taby, north of Stockholm and at present has subsidiaries in the United States and Japan and a service office in Taiwan. The company has 329 employees. Micronic maintains a web site at: http://www.micronic.se
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