TABY, Sweden, Feb. 12, 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.
(Figures in brackets relate to the 1 October-31 December 2000 and 1 January-31 December 2000 periods, if not otherwise stated.)
-- Highest quarterly result after financial items, amounting to MSEK
109 (75). 2001 result after financial items, amounting to
MSEK 9 (90).
-- Net sales in Q 4 reached MSEK 322 (359). 2001 net sales reached
MSEK 699 (704) in a year that can only be described as weak.
-- Fourth quarter order intake of MSEK 136 (243). Full year order
intake amounting to MSEK 633 (759).
-- Closing order book of MSEK 279 (307), all of which is expected to
be delivered and invoiced in 2002.
-- The total number of employees was 327 (304) at the end of the
year.
"We are proud to announce that we achieved our goals regarding sales and net profit. Focus on customer needs, by providing advanced products and support, has taken us to yet another strong year despite a weak market in the electronics industry. We have kept a high pace in investing in the future. We have entered into a strategic alliance with a strong partner for developing direct write applications and once again we present a very strong fourth quarter. This gives us a strong and healthy position as we enter 2002," said Sven Lofquist, president and CEO of Micronic Laser Systems.
Key Events in Fourth Quarter
-- Micronic received three orders, one within each segment, one
Omega6600 to the semiconductor market, one TFT-system to the
display market and one MP80+ within our Multi Purpose- segment.
-- Micronic has signed an agreement in principle to expand and
strengthen its cooperation with Fraunhofer Institute for
Microelectronic Circuits and Systems (IMS). The agreement extends
by three years the development collaboration and expands
Micronic's present exclusive license rights for spatial light
modulator (SLM) technology for direct write and photomask writing
with inspection and measurement. The cooperation covers several
SLM component generations aimed to support future semiconductor
design nodes.
-- Micronic introduced the next generation of pattern generators for
TFT-photomasks to the display market. The system is a leading edge
display photomask pattern generation system designed specifically
for the increasingly small transistor features of TFT-photomasks.
-- Mr. Masashi Tsutsui was appointed president of subsidiary Micronic
Japan K.K.
Markets and Micronic Products
Semiconductors
2001 was the year Micronic established itself as a leading supplier of advanced laser pattern generators to the semiconductor industry. At the same time we saw a dramatically weakening market. The semiconductor market was characterized by falling order intake, up to 65 percent downturn - a downturn that rapidly hit the equipment sector, to which Micronic belongs.
In December 2001 Dataquest evaluated the semiconductor pattern generator market to MUSD 248, to be compared with MUSD 296 in 2000. Dataquest expects demand to exceed MUSD 300 in 2002 and they foresee a raise until 2005 when the market is expected to be worth well over MUSD 500.
Advanced systems dominate both demand and sales. Micronic's Omega systems have proven to meet customer demands and are in production of photomasks at the 130 nanometer technology node. In addition to that Micronic's Sigma system, based on the SLM technology, makes it possible to use the laser for production at the 100 nanometer technology node.
During the fourth quarter Micronic got an order for a Omega6600-system, which was also shipped during the quarter.
In 2001 Micronic has delivered five systems to the semiconductor market, of which one system is an upgrade. Net sales to the semiconductor market represent 37 (32) percent of Micronic's net sales in 2001.
Delivery of the first Sigma-system is expected to take place in the first half of 2002.
Display
According to research (DisplaySearch in October 2001) the market for TFT- LCD-displays has had a stable growth and indicates a yearly average growth of about 15 percent between 1999 and 2005. In 2001 sales reached MUSD 25. The underlying growth in the display market is leading to strong demand for more advanced pattern generators. Micronic estimates the market to be worth MUSD 70 in 2004.
The display market still shows strong capacity utilization. However, uncertainties regarding market and business cycles, have led to a decrease in investments for pattern generators in 2001. Micronic's customers have given us confidence and Micronic has reinforced its position within the display segment. Demand for higher quality in flat panels creates demand for more advanced pattern generators. To meet these demands Micronic introduced a new generation of display pattern generators in December 2001.
During the fourth quarter Micronic received an order for a TFT- and colour filter system. In 2001 Micronic delivered five systems to the display segment, of which one system was an upgrade. Sales to the display market represent 36 (53) percent of total sales in 2001.
Multi Purpose
Within Micronic's Multi Purpose segment advanced packaging is the major application. Micronic's customers meet demands for higher quality and productivity from end-customers. In 2000 Micronic introduced products that have proved to be successful, and Micronic has recorded stronger sales and strengthened its position. Today Micronic is the leading supplier in this segment, characterized by fast technological development and new applications.
In the fourth quarter Micronic received order for one MP80+-system, which is to be used in advanced electronic packaging and displays.
In 2001 Micronic delivered five Multi Purpose-systems. Multi Purpose sales represent 17 (7) percent of Micronic's net sales in 2001.
Key Figures
Order intake, invoiced sales and order backlog Net sales for the fourth quarter reached MSEK 322 (359), which included six systems and service.
Net sales for 2001 amounted to MSEK 699 (704) and included delivery of 15 (17) systems, whereof 2 (2) upgrades as well as service. In 2001 Micronic delivered 4 semiconductor systems, 4 display systems and 5 Multi Purpose-systems.
Order intake in the fourth quarter amount to MSEK 136 (243), consisting of three new systems and service. In 2001 order intake was MSEK 633 (759).
Closing order book amounted to MSEK 279 (307), which is expected to be shipped and invoiced in 2002.
Operating Costs
Operating costs for the fourth quarter, including change of work in progress, amounted to MSEK 208 (285). These costs include cost of sales MSEK 116 (116), R&D MSEK 35 (87), G&A MSEK 48 (58) and other costs MSEK 10 (24).
For 2001 operating costs, including change of work in progress, amounted to MSEK 684 (621). These costs include cost of sales MSEK 319 (269), R&D MSEK 215 (191), G&A MSEK 150 (133) and other costs MSEK +1,6 (-28).
R&D costs represent 31 percent of 2001 net sales. R&D has been extensive in 2001, focusing on the Sigma systems, but also involving developing of the Omega6600 and the LRS11000-TFT2.
In 2001 the number of employees increased, from 304 to 327. Most of Micronic's new employees are working within customer support in the foreign subsidiaries where the number of employees increased by 26 to 64 at the end of the year. The customer support organization has been increased to further strengthen and to establish an organization closer to the customers. Net sales from service in 2001 amounted to MSEK 70 (53) MSEK or 10 (8) percent of net sales. Micronic had, at the end of 2001, 42 (34) outstanding service contracts with customers throughout the world.
Profitability
The quarterly profit after financial items amounted to MSEK 109 (75). The accumulated profit after financial items amounted to MSEK 9 (90) MSEK.
Earnings per share The total number of shares issued are 19 202 583. 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, amounted to SEK 0,34 (3,70 SEK).
Dividend
The Board of Directors' proposes that no dividend is paid and that the profit of the year is to be carried forward.
Capital Expenditure
Expansion of production and office premises, a total of 7 400 square meters, at the Taby site, was concluded in 2001. Investments relating to the expansion amounted to MSEK 72, of which MSEK 45 was invested in 2001. The existing premises were renovated for MSEK 3 (7) in 2001. Investments in machinery and equipment amounted to MSEK 32 and investments of MSEK 34 (25) were made in equipment and computers. Investments of MSEK 17 were made in intangible assets related to the SLM- technology. MSEK 5 has been invested in a new company-wide information system which is classified as an intangible asset. Total investments amounted to MSEK 136 (64).
Cash-Flow
Liquid funds increased by MSEK 234 (236) to MSEK 552 (319) in 2001. Funds of MSEK 7 (-171) were generated from operations. Net capital expenditure amounted to MSEK 136 (64). Funds from external sources amounted to MSEK 379 (472) and were generated by a convertible loan of MSEK 320 and by bank financing of the premises of MSEK 57.
Liquid Funds and Financial Position
The Group's liquid funds amounted to MSEK 552 (318) at the end of the year, excluding unutilized overdraft facilities. Liquid funds have been strengthened by a convertible loan of MSEK 320 as well as by a bank financed loan for the expansion of premises of MSEK 57. The equity/assets ratio was 52 (72) percent at year-end.
Future Outlook
The semiconductor equipment industry declined in 2001 by approximately 40 percent. For pattern generators, which are not directly dependent on volume production of semiconductor components, market declined (according to preliminary estimates from Dataquest) by approximately 15 percent. The same analysts estimate a continued decline within the equipment industry but with a recovery of over 20 percent during 2002 for pattern generators. Demand will occur as investments for the 130 nanometer design node and for R&D for the 100 nanometer design node.
The display market has enjoyed continued high capacity utilization for production of TFT-LCD displays. The market is vaguely connected to volume increase, which means our estimate for 2002 indicates stable sales.
Finally, we find a strong interest in our Multi Purpose product line, driven by increasing demand for advanced electronic packaging. The development is to a certain extent dependent on development within the semiconductor industry, which makes relevant estimates hard to do.
Market surveys in co-operation with ASML, have indicated that direct write is a very interesting complement to traditional photomask lithography. Micronic will speed up the development of direct write, to which extent and in what way will be confirmed during the first quarter 2002.
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.
Annual General Meeting
The Annual General Meeting will be held at 5.00 pm on March 21, 2002 at Taby Park Hotel in Taby, Stockholm.
Miscellaneous
This interim report has not been subject to examination by the company's auditors.
Future Reports
Annual report 2001 To be distributed in week 10, 2002 January - March 31st 2002 April 22 April - June 30th 2002 July 18 July - 30 September 30th 2002 October 23
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