EX-99.1 3 p17791_ex99-1.txt PRESS RELEASE FOR RELEASE ON OCTOBER 23, 2003 Contact: Paul Nolan, CFO Nanometrics, Inc. 408.435.9600 x122 NANOMETRICS ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2003 Milpitas, California, October 23, 2003 - Nanometrics Incorporated (NASDAQ: NANO) today reported financial results for the third quarter ended September 30, 2003. Total net revenues for the third quarter of 2003 were $10.1 million, an increase of 4% compared to the second quarter of 2003 and an increase of 18% from the third quarter of 2002. The increase in revenues during the third quarter of 2003 resulted from increased demand for semiconductor process control metrology equipment particularly in the U.S. and Pacific Rim countries. The net loss in the third quarter of 2003 was $3.0 million or $0.25 per diluted share compared to a net loss of $1.8 million or $0.15 per diluted share for the same period last year. For the nine months ended September 30, 2003, Nanometrics' total net revenues were $29.2 million, an increase of 17% compared to $25.0 million for the same period in 2002. The net loss for the first nine months of 2003 was $16.7 million, or $1.39 per diluted share, compared to a net loss of $5.1 million or $0.43 per diluted share for the same period in 2002. The net loss for the first nine months of 2003 includes a $6.0 million charge to record a valuation allowance against deferred income tax assets. The Company's financial position continues to be strong with cash and short-term investments totaling $30.0 million and working capital of $59.9 million. About Nanometrics: Nanometrics Incorporated is a leading supplier of automated metrology equipment used for advanced integrated circuit, flat panel display and magnetic head manufacturing. The Company's corporate office is located at 1550 Buckeye Drive, Milpitas, CA 95035, with sales and service offices worldwide. Nanometrics is traded on NASDAQ under the symbol NANO. Nanometrics' website is http://www.nanometrics.com. NANOMETRICS INCORPORATED CONSOLIDATED BALANCE SHEETS (Amounts in thousands except share amounts) (Unaudited)
September 30, December 31, ASSETS 2003 2002 --------- --------- CURRENT ASSETS: Cash and cash equivalents $ 7,062 $ 7,967 Short-term investments 22,938 28,899 Accounts receivable, net of allowances of $569 and $566 10,797 9,021 Inventories 23,113 25,847 Deferred income taxes 862 6,840 Prepaid expenses and other 3,100 2,803 --------- --------- Total current assets 67,872 81,377 PROPERTY, PLANT AND EQUIPMENT, Net 49,830 50,050 INTANGIBLE ASSETS 1,423 1,748 OTHER ASSETS 1,378 1,513 --------- --------- TOTAL $ 120,503 $ 134,688 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,276 $ 1,708 Accrued payroll and related expenses 1,624 1,004 Deferred revenue 1,509 1,396 Other current liabilities 1,077 1,574 Income taxes payable 14 139 Current portion of debt obligations 1,487 780 --------- --------- Total current liabilities 7,987 6,601 DEFERRED INCOME TAXES 1,081 858 DEBT OBLIGATIONS 2,737 3,123 --------- --------- Total liabilities 11,805 10,582 --------- --------- SHAREHOLDERS' EQUITY: Common stock, no par value; 50,000,000 shares authorized; 12,092,415 and 12,006,641 outstanding 100,516 99,911 Retained earnings 7,813 24,475 Accumulated other comprehensive income (loss) 369 (280) --------- --------- Total shareholders' equity 108,698 124,106 --------- --------- TOTAL $ 120,503 $ 134,688 ========= =========
NANOMETRICS INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ----------------------------- ----------------------------- 2003 2002 2003 2002 -------- -------- -------- -------- NET REVENUES: Product sales $ 8,514 $ 6,637 $ 23,814 $ 20,634 Service 1,617 1,932 5,401 4,352 -------- -------- -------- -------- Total net revenues 10,131 8,569 29,215 24,986 -------- -------- -------- -------- COSTS AND EXPENSES: Cost of product sales 4,539 3,063 13,026 8,884 Cost of service 1,425 1,666 4,918 4,377 Research and development 3,357 3,688 10,199 10,127 Selling 2,867 2,718 8,465 7,636 General and administrative 1,130 1,349 3,464 3,512 -------- -------- -------- -------- Total costs and expenses 13,318 12,484 40,072 34,536 -------- -------- -------- -------- LOSS FROM OPERATIONS (3,187) (3,915) (10,857) (9,550) -------- -------- -------- -------- OTHER INCOME (EXPENSE) Interest income 60 125 230 433 Interest expense (24) (25) (71) (72) Other, net 208 (61) 176 57 -------- -------- -------- -------- Total other income, net 244 39 335 418 -------- -------- -------- -------- LOSS BEFORE INCOME TAXES (2,943) (3,876) (10,522) (9,132) PROVISION (BENEFIT) FOR INCOME TAXES 53 (2,060) 6,141 (4,067) -------- -------- -------- -------- NET LOSS $ (2,996) $ (1,816) $(16,663) $ (5,065) ======== ======== ======== ======== NET LOSS PER SHARE: Basic and diluted $ (0.25) $ (0.15) $ (1.39) $ (0.43) ======== ======== ======== ======== SHARES USED IN PER SHARE COMPUTATION: Basic and diluted 12,033 11,886 12,016 11,838 ======== ======== ======== ========