Trikon Technologies, Inc.: -- Highest Quarterly Bookings since
Fourth Quarter 2000 -- Highest Quarterly Revenues since Third
Quarter 2001 -- Book to Bill 1.5:1, Positive EBITDA, Net Cash
Increased by $2.6 Million Trikon Technologies, Inc. (Nasdaq:TRKN)
today reported results for its third quarter and nine months ended
September 30, 2005. Revenues for the third quarter of 2005 were
$13.0 million, an increase of 46 percent over $8.9 million for the
second quarter of 2005 and an increase of 32 percent over $9.9
million for the third quarter of 2004. Revenues for the nine months
ended September 30, 2005 were $29.7 million, an increase of 11
percent over revenues of $26.8 million for the prior year
nine-month period. Research and development costs for the third
quarter of 2005 were $1.9 million, a decrease of 14 percent from
$2.2 million in the second quarter of 2005 and a decrease of 18
percent from $2.3 million in the third quarter of 2004. Research
and development costs for the nine months ended September 30, 2005
were $6.4 million, a decrease of 19 percent from $7.9 million in
the prior year nine-month period. Selling, general and
administrative expenses for the third quarter of 2005 were $3.6
million, which was similar to $3.7 million for the second quarter
of 2005 and down 3 percent from $3.8 million in the third quarter
of 2004. Selling, general and administrative costs for the nine
months ended September 30, 2005 were $11.0 million, down 8 percent
from $12.0 million in the prior year nine-month period. Operating
loss for the third quarter of 2005 was $660,000, a decrease of 83
percent compared to an operating loss of $3.8 million for the
second quarter of 2005 and a decrease of 56 percent from an
operating loss of $1.5 million for the third quarter of 2004.
Operating loss for the nine months ended September 30, 2005 was
$6.6 million, down 48 percent compared to an operating loss of
$12.5 million for the prior year nine-month period. Net loss
applicable to common shares for the third quarter of 2005 was $1.3
million, or $0.08 per share, compared to a net loss of $5.4
million, or $0.34 per share, in the second quarter of 2005 and a
net loss of $1.7 million, or $0.10 per share, for the third quarter
of 2004. Net loss applicable to common shares for the nine months
ended September 30, 2005 was $9.0 million, or $0.57 per share,
compared to a net loss of $12.3 million, or $0.78 per share, in the
prior year nine-month period. The net loss for the quarter included
foreign currency losses of $246,000, compared to foreign currency
losses of $1.6 million in the second quarter of 2005 and a foreign
currency gain of $7,000 in the third quarter of 2004. The net loss
for the nine months included foreign currency losses of $2.1
million, compared to foreign currency gains of $400,000 in the
prior year nine-month period. "I am very pleased with our
performance this quarter," said Dr. John Macneil, Chief Executive
Officer. "We achieved our highest quarterly orders since the fourth
quarter of 2000 and our highest quarterly revenues since the third
quarter of 2001. The increased revenue, with tight cost controls,
generated a positive EBITDA for the quarter. Given the generally
reported flat market conditions in the industry, we believe that
our order and revenue growth represent market share gains." "Cash
improved in the quarter by $2.6 million and cash, cash equivalents
and restricted cash increased to a total of $15.6 million at
quarter end," added Martyn Tuffery, acting Chief Financial Officer.
"Revenues relating to system shipments and customer retentions not
recognized under our revenue recognition policy at September 30,
2005 were $5.7 million, compared to $6.1 million at June 30, 2005
and $2.5 million at December 31, 2004. In addition, the book to
bill ratio in the quarter was 1.5:1." "We continue our tight
control of both costs and cash management, which has led to a
reduction in our current working capital requirements," continued
Mr. Tuffery. "Operating costs are less than in the first two
quarters of this year, and, for the nine months ended September 30,
2005, they are significantly reduced from the same period in 2004,
even after incurring substantial expenses related to the proposed
consolidation by merger." "Three of the system orders in the
quarter were for power device metallization," continued Dr.
Macneil. "Trikon has systems at 7 of the top 20 power device
makers. We believe these customers value our Sigma system's ability
to deposit high quality thick metal, low cost of ownership and high
reliability." Update on Consolidation of Aviza and Trikon As Trikon
previously announced, the Securities and Exchange Commission
declared effective on October 31, 2005, the registration statement
on Form S-4 filed by New Athletics, Inc. relating to the proposed
consolidation by merger of Trikon and Aviza Technology, Inc. "We
reached an important milestone in the merger transaction on October
31, 2005," said Dr. Macneil. "We commenced mailing the proxy
statement/prospectus to Trikon's stockholders on November 1, 2005,
so stockholders as of our record date of October 21, 2005 should be
receiving the materials very shortly. In addition, the date of the
special meeting where our stockholders will have the opportunity to
vote on the merger transaction has been set for December 1, 2005.
Our board of directors has determined that this transaction is in
the best interest of our stockholders. We are excited about joining
forces with Aviza to form a better positioned company offering a
broader product, technology and service portfolio to serve our
respective customers. We believe that the increased scale achieved
by combining the two companies will open new opportunities."
Investor Conference Call and Webcast There will be a conference
call at 10:30 am New York time today, hosted by Dr. John Macneil,
to discuss the results for the third quarter ended September 30,
2005. A live audio webcast of the call will be available at
www.trikon.com. Additional Information and Where to Find It In
connection with the proposed consolidation through merger involving
Trikon Technologies, Inc. and Aviza Technology, Inc., New
Athletics, Inc. filed with the Securities and Exchange Commission a
registration statement and other relevant documents. This
registration statement was declared effective by the Securities and
Exchange Commission on Monday, October 31, 2005. Security holders
of Trikon are urged to read the proxy statement/prospectus that is
contained in the registration statement and the other relevant
documents because they contain important information about New
Athletics, Aviza and Trikon and the proposed merger transaction.
Investors and security holders of Trikon may obtain free copies of
the proxy statement/prospectus and the other relevant documents
filed with the Securities and Exchange Commission at the Securities
and Exchange Commission's website at . Information regarding the
identity of persons who may, under the Securities and Exchange
Commission's rules, be deemed to be participants in the
solicitation of stockholders of Trikon in connection with the
proposed merger transaction, and their interests in the
solicitation is contained in the registration statement filed by
New Athletics with the Securities and Exchange Commission. About
Trikon Technologies Trikon Technologies is a technology leader in
wafer fabrication equipment to the global semiconductor industry.
Trikon develops and manufactures advanced capital equipment for
plasma etching and chemical and physical vapor deposition (CVD and
PVD) of thin films for use in the production of semiconductor
devices. These are key components in all electronic products, such
as telecommunication devices, consumer and industrial electronics
and computers. More information is available on Trikon's Web site
at: www.trikon.com. "Safe Harbor" Statement Under the Private
Securities Litigation Act of 1995 This news release contains
certain forward-looking statements that include, without
limitation, statements by Dr. Macneil and Martyn Tuffery about
Trikon's business strategy, its cost control and cash management
policies, Trikon's business prospects in the power device
metallization market and the anticipated benefits of the proposed
merger transaction with Aviza Technology, Inc. These
forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially,
including, but not limited to the economic conditions within the
semiconductor capital equipment industry, demand for Trikon's
products and services, possible changes in the company's strategy,
Trikon's failure to comply with customary closing conditions or to
otherwise complete the merger transaction with Aviza, and the
potential failure of Trikon and Aviza to realize the expected
benefits of the merger transaction. Additional factors that may
cause actual results to differ are included in the more detailed
cautionary statements included in the company's SEC reports,
including, without limitation, its annual report on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K. -0-
*T CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except
share data) September 30, December 31, 2005 2004 -------------
------------ (Unaudited) Assets Current assets: Restricted cash $
8,850 $ - Cash and cash equivalents 6,772 21,202 Accounts
receivable, net 7,905 6,654 Inventories, net 14,442 16,543 Prepaid
and other current assets 1,764 2,203 ------------- ------------
Total current assets 39,733 46,602 Property, equipment and
leasehold improvements, net 9,079 13,597 Demonstration systems, net
2,890 551 Other assets 255 391 ------------- ------------ Total
assets $ 51,957 $ 61,141 ============= ============ Liabilities and
shareholders' equity Current liabilities: Short term borrowing $
8,850 $ 9,600 Accounts payable 5,697 5,709 Accrued expenses 1,665
1,453 Deferred revenue 391 541 Warranty & related expenses
1,377 1,171 Current portion of long-term debt and capital lease
obligations 100 281 Other current liabilities 2,257 971
------------- ------------ Total current liabilities 20,337 19,726
Long-term debt and capital lease obligations less current portion
32 91 Other non-current liabilities 620 782 -------------
------------ $ 20,989 $ 20,599 ------------- ------------
Shareholders' equity: Preferred stock: Authorized shares --
20,000,000 Issued and outstanding -- nil at September 30, 2005 and
December 31, 2004 - - Common stock, $0.001 par value: Authorized
shares -- 50,000,000 Issued and outstanding -- 15,754,985 at
September 30, 2005 and at December 31, 2004 261,416 261,416
Accumulated other comprehensive loss 2,315 2,886 Accumulated
deficit (232,763) (223,760) --------- --------- Total stockholders'
equity 30,968 40,542 --------- --------- Total liabilities and
stockholders' equity $ 51,957 $ 61,141 ========= =========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In
thousands, except per share data) Three Months Ended Nine Months
Ended ----------------------- ----------------------- September
September September September 30, 2005 30, 2004 30, 2005 30, 2004
(As restated) (As restated) ---------- ----------- ---------
----------- Revenues: Product revenues $ 10,812 $ 9,858 $ 25,422 $
26,702 License revenues 2,190 17 4,275 126 ---------- -----------
--------- ----------- 13,002 9,875 29,697 26,828 ----------
----------- --------- ----------- Costs and expenses: Cost of goods
sold 8,107 6,528 18,828 20,617 Research and development 1,909 2,314
6,406 7,921 Selling, general and administrative 3,646 3,756 11,015
12,038 Restructuring cost - (1,200) - (1,200) ----------
----------- --------- ----------- 13,662 11,398 36,249 39,376
---------- ----------- --------- ----------- Loss from operations
(660) (1,523) (6,552) (12,548) Foreign currency (losses) gains
(246) 7 (2,069) 366 Interest (expenditure) income, net (83) (92) 5
37 ---------- ----------- --------- ----------- Loss before income
tax charge (989) (1,608) (8,616) (12,145) Income tax charge 286 45
387 165 ---------- ----------- --------- ----------- Net loss $
(1,275) $ (1,653) $ (9,003) $ (12,310) ---------- -----------
--------- ----------- Loss per share data: Basic: $ (0.08) $ (0.10)
$ (0.57) $ (0.78) Diluted: $ (0.08) $ (0.10) $ (0.57) $ (0.78)
Weighted average common shares used in the calculation: Basic:
15,755 15,752 15,755 15,733 Diluted: 15,755 15,752 15,755 15,733 *T
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