8-K 1 doc1.txt 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 July 30, 2003 ----------------------------------------------------------- (Date of Report) GENUS, INC. ---------------------------------------------------------- (Exact name of registrant as specified in its charter) California 000-17139 94-2790804 ---------------------------- ----------- ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1139 Karlstad Drive Sunnyvale, CA 94089 --------------------------------------- ---------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408) 747-7120 -------------- N/A ------------------------------------------------------------- (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits. (c) Exhibits EXHIBIT NO. DESCRIPTION ----------- ----------- Exhibit 99 Press Release issued by Genus, Inc. on July 28, 2003 Item 12. Results of Operations and Financial Condition The information in this Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. On July 28, 2003, Genus, Inc. issued a press release announcing financial results for its second fiscal quarter ended June 30, 2003 of its fiscal year 2003. The full text of the press release is attached as Exhibit 99 to this Form 8-K. 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. Date: July 30, 2003 GENUS, INC. By: /s/ Shum Mukherjee ------------------------------ Shum Mukherjee Chief Financial Officer EXHIBIT INDEX EXHIBIT NO. DESCRIPTION ----------- ----------- Exhibit 99 Press Release issued by Genus, Inc. on July 28, 2003 EXHIBIT 99 GENUS REPORTS SECOND QUARTER 2003 RESULTS SUNNYVALE, CALIF. - JULY 28, 2003 - Genus, Inc. (Nasdaq: GGNS) today reported financial results for its second quarter and six months ended June 30, 2003. Senior management will conduct an investor conference call to discuss these results and the company's financial outlook in more detail at 8 a.m. pacific time tomorrow, Tuesday, July 29, 2003. Access information is provided below. Net sales for the second quarter of 2003 were $14.7 million compared to net sales of $6.7 million for the same quarter of 2002, and up from $16.3 million for six months ended June 30, 2002 to $32.4 million for the six months ended June 30, 2003. The net loss for the second quarter 2003 was $1.4 million or ($0.05) per diluted share compared to net loss of $3.6 million or ($0.13) per share in the same quarter of 2002. The net loss for the six months ended June 30, 2003 was $950,000 or ($0.03) per diluted share compared to a net loss of $7.4 million or ($0.28) per share for the six months ended June 30, 2002. "Atomic layer deposition (ALD) technology has now moved into volume production in the semiconductor and thin film head markets, resulting in a significant increase in revenues during the first half of this year. However, the semiconductor market is still in recession, with recovery now expected late 2003, early 2004," said Bill Elder, Genus' chairman and CEO. "We continue to push ALD migration with focus on the successful transition of our customers into volume production." "Genus is well positioned globally with ALD customers in the semiconductor and data storage markets in the U.S., Asia and Europe, and we maintain our expectation that the worldwide demand for ALD products will increase in 2003 over the previous year." Elder concluded. \ Gross margin as a percentage of revenues was 27 percent for the second quarter of 2003 compared to 23 percent for the same quarter of 2002, reflecting higher volumes and increased manufacturing efficiencies. Gross margin as a percentage of revenues was 31 percent for the six months ended June 30, 2003 compared to 23 percent for the six months ended June 30, 2002. Operating expenses, including research and development, sales and general and administrative expenses were $4.9 million in the second quarter of 2003, approximately $200,000 below the level recorded in the second quarter of 2002. Operating expenses, including research and development, sales and general and administrative expenses were $10.1 million for the six months ended June 30, 2003, approximately $500,000 below the level recorded for the six months ended June 30, 2002. Genus ended the first quarter 2003 with cash and cash equivalents of $10.9 million compared to $12.5 million as of March 31, 2003. Cash net of short-term debt was $2.9 million on June 30, 2003, up $755,000 from the level of cash net of short-term debt on March 31, 2003. - more - FINANCIAL GUIDANCE Based on the continued slow recovery of the semiconductor capital equipment market and the uncertainty on the timing of the orders, Genus is revising its booking guidance to the $45 million to $60 million range. Full year revenue guidance is still in the $50 million to $60 million range. CONFERENCE CALL INFORMATION Genus plans to host an investor conference call on Tuesday, July 29, 2003, at 11:00 a.m. eastern time, featuring remarks by Bill Elder, chairman and CEO, and Shum Mukherjee, executive vice president finance and CFO, followed by a live question and answer session. The call will be accessible live by dialing 888-803-6692. The conference call will also be broadcast live over the Internet at www.genus.com. A replay of the call will be available for 48 hours, beginning ------------- two hours after the call, by dialing 800-642-1687 and entering access code 1882844. A webcast replay will be available at www.genus.com. ------------- ABOUT GENUS Genus, Inc. manufactures critical deposition processing products for the global semiconductor industry and the data storage industry. To enable the production of intricate micro computer chips and electronic storage devices, Genus offers its STRATAGEM and LYNX series production-proven equipment for 200mm and 300mm semiconductor production, and offers thin film deposition products for chemical vapor deposition (CVD), atomic layer deposition (ALD), and pre-clean capabilities. Genus is at the forefront of market and technology developments in the ALD marketplace, which is gaining acceptance worldwide as a critical technology for sub 0.13-micron production of computer chips and electronic storage devices. Genus' customers include semiconductor manufacturers located throughout the United States, Europe and the Pacific Rim including Korea, Japan and Taiwan. Founded in 1981, the company is headquartered in Sunnyvale, California. For additional information visit Genus' web site at www.genus.com. ------------- STRATAGEM, LYNX2(R) and LYNX3(TM) are trademarks of Genus, Inc. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements regarding the company's future financial and business performance. These forward-looking statements are subject to a number of risks and uncertainties. These contingencies include but are not limited to: actual customer orders received by the company, the extent to which ALD technology is demanded by the marketplace, the actual number of customer orders received by the company, the timing of final acceptance of products by customers, the financial climate and accessibility to financing, general conditions in the thin film equipment market and in the macro-economy, and the influence of global political events. Genus assumes no obligation to update this information. Additional risks and uncertainties are discussed in the Management's Discussion and Analysis of Results of Operations contained in Genus' Annual Report on Form 10-K for the fiscal year ended December 31, 2002 filed with the Securities and Exchange Commission. COMPANY CONTACT: Shum Mukherjee Genus, Inc. Tel: (408) 747-7120 Ext. 1311 Email: smukherjee@genus.com -------------------- - Tables to Follow - 2
GENUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2003 2002 2003 2002 -------- -------- -------- -------- Net sales. . . . . . . . . . . . . . . . . . . $14,739 $ 6,743 $32,434 $16,334 Costs and expenses: Cost of goods sold . . . . . . . . . . . . 10,813 5,170 22,390 12,637 Research and development . . . . . . . . . 1,981 1,767 4,094 3,952 Selling, general and administrative. . . . 2,868 3,295 6,042 6,731 -------- -------- -------- -------- Loss from operations . . . . . . . . . . . . . (923) (3,489) (92) (6,986) Other income (expenses), net . . . . . . . . . (435) (32) (858) (287) -------- -------- -------- -------- Loss before income taxes . . . . . . . . . . . (1,358) (3,521) (950) (7,273) Provision for income taxes . . . . . . . . . . 0 88 0 88 -------- -------- -------- -------- Net loss . . . . . . . . . . . . . . . . . . . $(1,358) $(3,609) $ (950) $(7,361) ======== ======== ======== ======== Net loss per share: Basic. . . . . . . . . . . . . . . . . . . $ (0.05) $ (0.13) $ (0.03) $ (0.28) Diluted. . . . . . . . . . . . . . . . . . $ (0.05) $ (0.13) $ (0.03) $ (0.28) Shares used in per share calculation - basic . 29,313 26,749 29,114 26,003 ======== ======== ======== ======== Shares used in per share calculation - diluted 29,313 26,749 29,114 26,003 ======== ======== ======== ========
- more - 3
GENUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS) JUNE 30, DECEMBER 31, 2003 2002 ---------- -------------- ASSETS Current Assets: Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,944 $ 11,546 Accounts receivable (net of allowance for doubtful accounts of $152 in 2003 and $69 in 2002) . . . . . . . . . . . . . . . . . . . . 7,817 7,505 Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,625 11,405 Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 947 1,336 ---------- -------------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,333 31,792 Equipment, furniture and fixtures, net . . . . . . . . . . . . . . . . . . . . . . . 9,629 8,661 Other assets, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,289 1,057 ---------- -------------- Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,251 $ 41,510 ========== ============== LIABILITIES Current Liabilities: Short-term bank borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,773 $ 7,813 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,037 6,498 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,043 3,064 Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,241 2,713 Customer advances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1,809 Long-term liabilities, current portion . . . . . . . . . . . . . . . . . . . . . . . 260 245 ---------- -------------- Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,354 22,142 Convertible notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,491 5,301 Long-term liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 270 ---------- -------------- Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,961 27,713 ---------- -------------- SHAREHOLDERS' EQUITY Common stock, no par value: Authorized 100,000 shares on June 30, 2003; and 50,000 shares on December 31, 2002; Issued and outstanding 29,757 shares in 2003 and 28,621 in 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,310 123,890 Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (108,759) (107,809) Note receivable from shareholder . . . . . . . . . . . . . . . . . . . . . . . . . . (151) (151) Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . (2,110) (2,133) ---------- -------------- Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,290 13,797 ---------- -------------- Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . . $ 41,251 $ 41,510 ========== ==============
4