Trikon Technologies Reports Results For The Third Quarter And Nine Months Ended September 30, 2001

NEWPORT, Wales, UK. Trikon Technologies, Inc. (Nasdaq: TRKN), a technology leader in semiconductor processing equipment, today reported results for its third fiscal quarter ended September 30, 2001.

Revenues for the third quarter were $19.7 million, a decrease of 35 per cent on $30.3 million for the third quarter of 2000 and a decrease of 29 per cent on $27.7 million for the second quarter of 2001. Revenues for the nine months ended September 30, 2001 were $85.0 million, an increase of 17 per cent on comparative revenues of $73.0 million for the nine-month period in the prior year.

Operating income for the third quarter was $1.2 million, a decrease of 82 per cent on $6.8 million for the third quarter of 2000 and a decrease of 76 per cent on $5.1 million in the prior quarter. Operating income for the nine months ended September 30, 2001 was $15.3 million, an increase of 29 per cent over operating income of $11.9 million in the nine months ended September 30, 2000.
Net income applicable to common shares for the quarter was $0.9 million, or $0.07 per share, a decrease of 86 per cent over net income for the third quarter 2000 (revised for the cumulative effect of SEC Staff Accounting Bulletin 101) of $6.4 million or $0.53 per share. Net income applicable to common shares in the prior quarter was $3.8 million or $0.30 per share. Net income applicable to common shares for the nine months ended September 30, 2001 was $11.4 million or $0.91 per share compared to $10.2 million or $0.91 per share in the nine months ended September 30, 2000 before the cumulative effect of the change in accounting policy. All per-share amounts are stated on a fully diluted basis.

Deferred revenue as a result of the application of SEC Staff Accounting Bulletin 101 was $8.1 million at September 30, 2001 compared to $11.8 million at June 30, 2001.

Cash and cash equivalents increased to $41.9 million as at September 30, 2001 from $38.4 million at the end of the second quarter. Both accounts receivable and inventories levels have been reduced in the quarter to $29.4 million and $24.4 million respectively. Subsequent to the quarter end the remaining convertible notes reached maturity and have been repaid for $1.5 million plus accrued interest.

Nigel Wheeler, president and chief executive officer commented, "Sales and orders in the quarter continue to reflect the pervasive and broad downturn in the semiconductor, wireless and photonics markets. However in the period we continued to build customer relationships and develop technologies that will lead, I believe, to sustained revenue growth when market conditions allow. Over half of orders this year are from new accounts and 40 per cent of shipments this quarter were to new accounts. These new accounts provide the potential for growth for the future."

Mr. Wheeler continued, "Due to lower shipment levels, at the beginning of October Trikon reduced its total headcount by 14 percent to 406, primarily in the manufacturing group. The costs associated with this headcount reduction have been provided for in the third quarter and will result in an annualized cost saving of $1.7 million effective in the fourth quarter. Additionally, since the quarter end we have decided on a suspension of the company-wide profit related bonus payments for 2001, a freeze on salaries and all employees will take 7 days of unpaid leave during the remainder of this year and the first quarter of 2002."

"Looking to Q4 and the full year 2001 revenues, for much of this year we had expected to meet or beat last years sales, and had received no order cancellations," said Mr. Wheeler. "However in the third quarter and fourth quarter to date Trikon has received cancellations and push outs totalling $6.5 million. Whilst these represent less than 10 per cent of the backlog carried into 2001, and have resulted in cancellation fees of $1.3 million agreed to date, they are sufficient to now make it clear that 2001 revenues will not meet those of our record breaking 2000."

"Whilst the economic situation is presently not good and the timing of a recovery uncertain, I believe the future holds strong and sustained growth in our served markets. We are presently laying down the foundations for this future, by working with our customers to develop the technologies they need and support them well during this time of uncertainty," Mr. Wheeler concluded.

The financial statements are presented in accordance with the Securities and Exchange Commission Staff Accounting Bulletin 101 (SAB 101), which the company adopted in the fourth quarter of 2000. In comparing to the prior year the third quarter has been restated to be compliant with SAB 101.

Investor Conference Call and Webcast

There will be a conference call at 10:30 am New York time today, hosted by Nigel Wheeler, President & CEO. A live and subsequently recorded audio webcast of the call will be available at http://www.trikon.com for 7 days.

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 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, future order and sales levels, and earnings projections projections. These forward-looking statements are subject to various risks and uncertainties that could cause results to differ materially, including, but not limited to, the length and severity of the current downturn in Trikon s served markets and the general economy, Trikon s ability to respond to economic, commercial and technical trends, the market acceptance of Trikon s products and technologies and the long sales cycles and implementation periods in the semiconductor, photonic and MEM industries. 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: Corporate: Carl Brancher, Trikon Technologies Tel:+44 1633 414111 or US Investor Relations contact: Jim O Donnell, Golin/Harris International Tel:+1 212 309 0649 or US Media Relations contact: Lon Margulies, G.S. Schwartz & Co. Inc. Tel: +1 212 725 4500 or Press Relations: Karen Wright, Trikon Technologies Tel: +44 1633 474569