SAN JOSE, Calif., Dec. 18, 2008 (GLOBE NEWSWIRE) -- Electroglas, Inc. (Nasdaq:EGLS), a leading supplier of wafer probing and software solutions for the semiconductor industry, today reported its operating results for the second fiscal quarter ended November 29, 2008.
Revenue for the second quarter of fiscal 2009 was $6.4 million, a 24% decrease over the first quarter of fiscal 2009 and a 44% decrease over the second quarter of fiscal 2008. Net loss on a GAAP (Generally Accepted Accounting Principles) basis was $4.7 million, or $0.18 per share and $0.17 per share loss on a non-GAAP basis. A reconciliation of non-GAAP operating results to GAAP results is included below.
Investor Conference Call Details
Electroglas' management plans to hold a teleconference today beginning at 2:00 p.m. PT, 5:00 p.m. ET. Interested parties who wish to attend the teleconference may call (866) 551-3680 (United States) or (212) 401-6760; Participant PIN Code is 2389558#, and is asked to do so approximately 10 minutes before the teleconference is scheduled to begin. No reservations are required. The teleconference will be available via webcast from the Company's website at www.electroglas.com.
About Electroglas
Electroglas is a leading supplier of innovative wafer probers and software solutions for the semiconductor industry. For more than 40 years, Electroglas has helped integrated device manufacturers (IDMs), wafer foundries and outsourced assembly and test (OSAT) suppliers improve the overall effectiveness of semiconductor manufacturers' wafer testing. Headquartered in San Jose, California, the Company has shipped more than 16,500 systems worldwide. Electroglas' stock trades on the NASDAQ Capital Market under the symbol "EGLS." More information about the Company and its products is available at www.electroglas.com.
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(unaudited)
Three months ended Six months ended
------------------ ------------------
Nov. 29, Dec. 1, Nov. 29, Dec. 1,
2008 2007 2008 2007
-------- -------- -------- --------
Net sales $ 6,355 $ 11,381 $ 14,754 $ 21,872
Cost of sales 5,296 8,283 12,404 15,178
-------- -------- -------- --------
Gross margin 1,059 3,098 2,350 6,694
-------- -------- -------- --------
Operating expenses:
Engineering, research and
development 1,734 2,209 3,770 4,459
Sales, general and
administrative 2,915 3,601 5,734 7,339
Restructuring and impairment
charges 266 186 520 459
-------- -------- -------- --------
Total operating expenses 4,915 5,996 10,024 12,257
-------- -------- -------- --------
Operating loss (3,856) (2,898) (7,674) (5,563)
Interest expense, net (549) (254) (1,082) (347)
Other expense, net (257) (125) (399) (297)
-------- -------- -------- --------
Loss before provision for
income taxes (4,662) (3,277) (9,155) (6,207)
Provision for income taxes 10 56 25 424
-------- -------- -------- --------
Net loss $ (4,672) $ (3,333) $ (9,180) $ (6,631)
======== ======== ======== ========
Net loss per share, basic and
diluted $ (0.18) $ (0.13) $ (0.35) $ (0.25)
======== ======== ======== ========
Shares used in basic and
diluted calculations 26,587 26,348 26,570 26,337
======== ======== ======== ========
Reconciliation of GAAP to Non-GAAP Financial Information
In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), Electroglas also discloses non-GAAP results of operations that exclude certain unusual charges, gains, or benefits. Electroglas reports non-GAAP results to better assess and reflect operating performance. These results are provided as a complement to results provided in accordance with GAAP. Management believes the non-GAAP measures help indicate underlying trends in Electroglas' business, and management uses non-GAAP measures to establish operational goals. Non-GAAP information should not be considered superior to or as a substitute for GAAP measures or data prepared in accordance with GAAP.
The following is a reconciliation of GAAP net loss and gross profit to non-GAAP net loss and gross profit (in thousands, except per share amounts):
(unaudited) (unaudited)
Three months ended Six months ended
------------------ ------------------
Nov. 29, Dec. 1, Nov. 29, Dec. 1,
2008 2007 2008 2007
-------- -------- -------- --------
GAAP net loss $ (4,672) $ (3,333) $ (9,180) $ (6,631)
Non-GAAP adjustments:
Duplicate factory costs(1) -- 575 -- 754
Restructuring and impairment
charges(2) 266 186 520 459
-------- -------- -------- --------
Non-GAAP net loss $ (4,406) $ (2,572) $ (8,660) $ (5,418)
======== ======== ======== ========
Non-GAAP net loss per share,
basic and diluted $ (0.17) $ (0.10) $ (0.33) $ (0.21)
======== ======== ======== ========
(unaudited) (unaudited)
Three months ended Six months ended
------------------ ------------------
Nov. 29, Dec. 1, Nov. 29, Dec. 1,
2008 2007 2008 2007
-------- -------- -------- --------
GAAP gross margin $ 1,059 $ 3,098 $ 2,350 $ 6,694
Non-GAAP adjustments:
Duplicate factory costs(1) -- 575 -- 754
-------- -------- -------- --------
Non-GAAP gross margin 1,059 3,673 2,350 7,448
-------- -------- -------- --------
Net sales $ 6,355 $ 11,381 $ 14,754 $ 21,872
======== ======== ======== ========
GAAP gross margin 17% 27% 16% 31%
======== ======== ======== ========
Non-GAAP gross margin 17% 32% 16% 34%
======== ======== ======== ========
(1) Freight, travel and overhead costs associated with the Company's
move from internal manufacturing in Singapore to contract
manufacturing with Flextronics in China.
(2) During Q2 2009, the Company accrued restructuring costs for a
reduction in work force in the United States and Asia. During Q1
2009, the Company accrued restructuring costs for a reduction in
work force in the United States. During Q1 2008, the Company accrued
restructuring costs related to the retention of employees in its
Singapore factory of $0.1 million. The Company also recorded a
liability for a reduction in work force in Europe of $0.2 million
during Q1 2008.
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
November 29, May 31,
2008 2008
(unaudited) (1)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 8,889 $ 16,541
Accounts receivable, net 5,998 9,419
Inventories 6,739 5,533
Prepaid expenses and other current assets 2,231 4,396
------------ ------------
Total current assets 23,857 35,889
Property, plant and equipment, net 2,112 2,724
Goodwill 1,942 1,942
Other assets 2,471 2,806
------------ ------------
$ 30,382 $ 43,361
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 4,392 $ 6,848
Accrued liabilities 4,259 5,717
Deferred revenue 596 826
------------ ------------
Total current liabilities 9,247 13,391
Convertible subordinated notes 23,990 23,610
Other non-current liabilities 1,854 2,442
Stockholders' equity (deficit) (4,709) 3,918
------------ ------------
$ 30,382 $ 43,361
============ ============
(1) Derived from the Company's audited consolidated financial
statements as of May 31, 2008.