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News

14 May 2007

 

Aviza reports second consecutive profitable quarter on revenue up 70% year-on-year

For its fiscal second-quarter 2007 (to end-March), etch and deposition system maker Aviza Technology Inc of Scotts Valley, CA, USA has reported a second consecutive quarter of net profitability ($1.4m, compared to $1.1m last quarter and a loss of $5.3m a year ago). Revenues of $61.6m were up 70% on $36.2m a year ago, though down slightly on last quarter’s $62.2m.

During the quarter, Aviza received an order for its Advanced Vertical Processor (AVP) 200mm thermal processing system from a Chinese foundry (marking a new customer win) as well as an order for its Sigma fxP physical vapor deposition (PVD) system from Cension Semiconductor Manufacturing Corp of Chengdu, China (a foundry managed by SMIC). Aviza also announced a follow-on shipment of its Sigma fxP PVD system to a US-based supplier of devices for the communications market.

Income from operations was the same as last quarter ($2.7m) and compares with a loss of $3.9m a year ago. Gross margin has improved from 25.4% a year ago to 30.7%. Net income was $1.4m (compared to $1.1m last quarter and a net loss of $5.3m a year ago), mainly due to an improvement in product mix and a reduction in interest expense. In February, Aviza completed an underwritten public offering of 4 million shares of its common stock at a price of $6.50 per share, followed in April by the underwriter exercising its over-allotment option and purchasing an extra 600,000 shares, raising net proceeds to about $28m. Aviza has since (in April) also completed a new $55m credit facility.

“This quarter’s results are continued evidence of a clear execution of initiatives aimed at achieving operational excellence throughout our company and a focus on managing the business accordingly,” says president and CEO Jerry Cutini. “The company remained focused on our business strategy of diversifying our product offerings to penetrate our markets with our single-wafer ALD, PVD and etch products, expanding our markets and increasing our presence in Asia.”

For its fiscal third-quarter 2007, Aviza expects revenues of $55-60m, and operating income of about $500,000.

Compared to the forecast it gave on 16 November 2006, for fiscal 2007 Aviza continues to expect revenues of $220-240m (a rebound of 37-49% on fiscal 2006’s $160.9m, which was down 6% on fiscal 2005). However, it has reduced its forecast for net income from about 2% of revenues ($4.4-4.8m) to less than $500,000 (though still better than the net loss of $14.7m in fiscal 2006). The downward revision is partly due to expected increases in operating expenses in the UK (as a result of to the impact of the strength of the British pound versus the US dollar).

www.avizatechnology.com