Trikon Technologies Announces Results For Fourth Quarter And For Fiscal Year 2000

Source: Trikon Technologies

Record Revenue, Orders and Backlog

NEWPORT, Wales, United Kingdom - Trikon Technologies, Inc. (Nasdaq: TRKN), a technology leader in semiconductor production equipment, today announced financial results for the fourth quarter and year ended December 31, 2000. These results are presented under the new accounting method required by the Securities and Exchange Commission (SEC) Staff Accounting Bulletin 101 (SAB 101), as well as on a "pro forma" historical basis. SAB 101 is effective for the fourth quarter and for the year 2000. Results of the previous quarters and years have not been prepared on a SAB 101 basis and therefore comparisons are not provided.

All per share amounts are stated on a fully diluted basis and period-to-period comparisons are adjusted for the one-for-ten reverse stock split effective at close of business on December 17, 1999.

Fourth Quarter 2000 Results

Pro-Forma Presentation of Sales and Earnings

Net sales of $36.4 million for the fourth quarter were 132 percent higher than the fourth quarter 1999 and 16 percent higher than $31.5 million for the third quarter 2000. Operating income for the fourth quarter of 2000 was $9.4 million, a 662 percent increase over the $1.2 million reported for the same quarter the prior year and a 27 percent increase over the $7.4 million for the previous quarter. Net income applicable to common shares for the fourth quarter 2000 was $8.4 million ($0.71 per share) compared to $0.5 million ($0.06 per share) reported in the fourth quarter of the prior year and $7.0 million ($0.58 per share) in the previous quarter.

SAB 101 Presentation of Sales and Earnings

For the fourth quarter of 2000, net sales were $34.1 million, operating income was $8.3 million and net income applicable to common shares was $7.7 million, or $0.65 per common share.

Year-End 2000 Results

Pro forma Presentation of Sales and Earnings

Net sales of $112.5 million for the year were 123 percent higher than the prior year s $50.5 million. These amounts include license revenues. Product sales of $112.2 million for the year were 132 percent higher than the prior year s $48.4 million. Operating income in the year 2000 was $22.8 million, a 369 percent increase over the $4.9 million reported in the prior year. Net income applicable to common shares for the year 2000 was $20.2 million ($1.78 per share) compared to $2.1 million ($0.24 per share) reported for the prior year.

In 2000, 32 percent of sales were for compound semiconductor production and 68 percent for silicon. Of the total sales, 10 percent were for opto-electronic applications. By technology the sales in 2000 were divided: 19 percent etch, 22 percent CVD and 59 per cent PVD.

SAB 101 Presentation of Sales and Earnings

For the year 2000, net sales were $107.0 million, operating income was $20.2 million and net income applicable to common shares was $16.1 million ($1.42 per share). Included in the net income applicable to common shares was a charge for the cumulative effect of the change in accounting principle of $1.8 million ($0.16 per share) associated with the adoption of SAB 101 effective January 1, 2000.

Trikon s effective tax rate for the year was 4% as a result of utilization of prior year net operating losses. Earnings in future quarters will be subject to a normal tax charge.

Explanation Of SAB 101

The SEC s Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements (SAB 101), requires adoption for calendar year companies in the fourth quarter of 2000 with the cumulative effect change recorded as of January 1, 2000. SAB 101 modifies the accounting policy relating to certain sales transactions, including the timing of revenue recognition for sales that involve contractual customer acceptance provisions and installation of the product if these events occur after shipment and transfer of title. The Company s previous revenue recognition policy was to recognize revenue at the time the customer took title to the product, generally at the time of shipment and to provide for warranty and installation costs at that time.

Management Comment and Discussion

"I am delighted with our operational performance in the year 2000," said Nigel Wheeler, president and chief executive officer. "For the year ended 2000, pro-forma sales grew by 123 percent, operating income by 369 percent and earnings per fully diluted share by 642 percent compared to the previous year. In addition, bookings in the year 2000 were a record $171.8 million, with backlog at year-end of $73.8 million."

"Fourth quarter bookings were split, North America 48 percent, Europe 41 percent and Asia 11 percent. The main driver for Trikon s increased order levels in North America is for compound semiconductor production. For the first time bookings in a quarter for compound semiconductor manufacture was above 40 per cent, with 4 new compound accounts and orders for a new opto-electronic line at an existing account in the fourth quarter. We are expecting sales to compound semiconductor customers to grow from the 32 percent in year 2000 to 42 percent in the year 2001. Optoelectronics applications are expected to represent 13 percent of sales this year, in both compound and silicon applications."

"Trikon will continue to follow a balanced strategy consisting of market penetration in the supply of production equipment for the manufacture of compound semiconductors (used in wireless and opto-electronic applications) and the development of process technology and sale of production equipment for leading edge silicon, particularly for gap fill low-k dielectric processing."

"Our engineering strength enables us to develop leading edge technologies applicable to the most advanced devices in both silicon and compound materials. In leading edge silicon we have developed some of the most advanced low-k dielectric deposition and etching processes and equipment. We continue to work with leading semiconductor makers to demonstrate our capabilities for both subtractive etch and dual damascene technologies."

"Trikon s cost effective and flexible production equipment, backed up by world class customer support, enables us to gain market share in compound semiconductor production. The trend has been for a larger proportion of our sales to come from this market. Here, Trikon s market and technology focus provides advantages over the established suppliers, consisting of smaller independents and divisions of larger companies."

"Whilst there is obvious uncertainty in the general economy and a reduction in visibility going forward, we feel that our market segments may perform better than mainstream silicon. Supporting this view, Trikon has not received any order push outs, cancellations or order rescheduling as a result of current economic conditions. The $73.8 million order backlog as of December 31, 2000 is equal to 69% of year 2000 sales. This provides a degree of stability to revenues through the first two quarters of 2001."

"In January 2001 there was a further exchange of 169,523 shares of Series H Preferred Stock of $10 stated amount per share with accrued dividends, for a total of 133,101 shares of Common Stock. This exchange further reduces the cash requirement this year for redemption and interest by $1.7 million. After the effect of this exchange there were, at close of business February 9, 2001, 11,851,508 shares of Common Stock in issuance, including 1,149,281 of restricted stock. In addition, there are 273,453 of Series H Preferred Stock, redeemable on or before June 30, 2001 and $1,505,000 of Notes maturing on October 15, 2001."

Investor Conference Call and Webcast

A live and subsequent recorded audio webcast of the call will be available at at for 30 days.

Trikon s New Technology Products Include

Sigma(r) fxP? PVD. A metalization system offering high throughput and reliability with advanced process modules for lift off metalization, ultra high uniformity sputtering for acoustic wave devices and low temperature high k dielectrics, including ALCVD?. Planar fxP? Low K Flowfill(tm). An advanced low-k dielectric deposition system capable of both gap-fill and planarization enabling the low-k advantage of increased device speed to be brought to existing aluminum metalized devices Omega(r) M0RI(tm). An advanced high-density plasma etch chamber on a small footprint platform. The Omega? etcher can be configured with two chambers offering plasma etching and dedicated post etch processing.

About Trikon Technologies

Trikon Technologies, Inc., offers a broad range of semiconductor processing equipment for silicon, compound device and opto-electronic production. Trikon has patents and patents pending on processes and equipment and continues to develop new low-k equipment and processes for advanced applications. Trikon s website can be visited at

"Safe Harbor" Statement Under the Private Securities Litigation Act of 1995: This news release contains certain forward-looking statements, including, but not limited to, statements relating to Trikon s projections for sales in 2001, its market share for compound semiconductor production and financial results for 2001. The forward-looking statements in this press release are subject to various risks and uncertainties that could cause results to differ materially, including, but not limited to, changes in demand for semiconductors and semiconductor equipment, competition, Trikon s new product development and acceptance of its new products and systems, changing technologies in the semiconductor industry, volatility of Trikon s stock price, and volatility in its operating results. These factors are not intended to represent a complete list of all risks and uncertainties inherent in the Company s business, and should be read in conjunction with 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.

Contact: Trikon Technologies Inc.: Carl Brancher Tel: +44 1633 414111 Press Relations: Karen Wright Tel: +44 1633 474569 US Media Relations contacts G.S. Schwartz & Co. Inc. Lon Margulies Tel: +1 212 725 4500 lmargulies@schwartz.com US Investor Relations contacts, Golin/Harris International: Peter Zambelli Tel: +1 212 309 1414 Kelly Keisling Tel: +1 212 309 1436