IVIS Icos Vision Systems Corp (MM)

ICOS Vision Systems Corporation NV (Nasdaq and Euronext: IVIS), a world leader in vision solutions, today announced its financial results for the first quarter ended March 31, 2006. Revenues were EUR 33.4 million, approximately 16.6% higher than the EUR 28.6 million reported for the fourth quarter of 2005 and more than double than the EUR 16.2 million reported for the prior year first quarter. Income from operations was EUR 10.8 million, representing an increase of 35.8% compared to EUR 7.9 million for the fourth quarter of 2005 and a four-fold increase over the EUR 2.3 million for the first quarter of 2005. Net income was EUR 8.8 million, or 83 Eurocents per share, compared to EUR 6.4 million, or 61 Eurocents per share, for the fourth quarter of 2005 and EUR 1.7 million, or 16 Eurocents per share, for the first quarter of 2005. Cash and cash equivalents stood at EUR 54.8 million at the end of the first quarter of 2006 with ICOS generating EUR 4.6 million cash from operations, including changes in working capital, during the quarter. "In line with our guidance, the first quarter of 2006 produced the best results in our history, with new records set at both the top and bottom lines. Revenues and earnings exceeded our previous record, set during the third quarter of 2000 when the semiconductor industry was operating at an unprecedented high, by approximately 7% and 12%, respectively. We achieved these superior results even with almost 50% higher R&D, which demonstrates the leverage inherent in our flexible operating model and the benefits of our strategy to bolster our market leadership and expand our addressable markets through continuous R&D investments," said Anton De Proft, ICOS' president and chief executive officer. Mr. De Proft added, "These investments have placed us in a strong position to take advantage of the evolution in semiconductor packaging, mainly driven by a wide range of consumer applications, such as digital audio and video, phones, TV's, cars and illumination. Our new WI-2000 wafer inspector system which is designed for advanced surface inspection and detection on whole wafers, wafers on hoop rings and wafers on filmframe carriers, is an example of our ability to keep pace with advancements in packaging technology." Mr. De Proft concluded, "While our visibility remains limited, we continue to see a strong market demand during the second quarter, although we expect sales to be approximately 10% below the record first quarter, which benefited from an exceptionally strong January. We also expect that our gross margins will remain in the 60 to 62% range." ICOS designs and manufactures inspection equipment for the semiconductor packaging industry. It is a world-leading supplier of equipment for the final visual control of chips before they are used in various applications, such as PC's, cars or portable phones. ICOS' systems perform two- and three-dimensional (2D and 3D) inspections as part of the final visual quality control step in the manufacturing of chips, wafers, flexible tapes for flat panel displays, sockets, substrates and solar cells. Aside from its complete systems, ICOS also offers inspection subsystems for integration in other equipment. ICOS' headquarters are located in Heverlee, Belgium and it has R&D centers in Belgium, Germany and Hong Kong and sales and support offices in Japan, the USA, Singapore, Korea and Hong Kong and production facilities in Belgium, Hong Kong and China. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this press release, such as market conditions and the Company's expected financial performance in the second quarter of 2006, and any other statements about ICOS' plans, objectives, expectations and intentions, are forward-looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, without limitation, the risk that improved order intake will not translate into increased orders, and that certain orders may be rescheduled or cancelled; the Company's dependence on the cyclical semiconductor and electronic assembly industries; uncertainties inherent in the development of new products and the enhancement of existing products, including technical and regulatory risks, cost overruns and delays; the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; the company's ability to predict accurately the demand for its products, and products under development, and to develop strategies to address its markets successfully; risks relating to technological change and the introduction of new products by the Company's competitors; risks relating to intellectual property and the inherent uncertainty of law suits alleging patent infringement that have been filed or threatened against, or filed by, the Company; risks relating to the conduct of the business worldwide, risks related to currency exchanges and other risks referred to in our most recent annual report on form 20-F and other filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based, Further discussion of risk factors is also available in the Company's SEC filings. ICOS Vision Systems Corporation NV can be found on the World Wide Web at www.ICOS.be -0- *T ICOS Vision Systems Corporation NV Consolidated Statements of Income according to US GAAP (in thousands of Euro, except for share and per share data) Three Months Ended March 31, March 31, 2006 2005 (unaudited) (unaudited) Revenues 33,389 16,192 Cost of goods sold 12,753 6,399 --------------------------------------------- ----------- ----------- Gross profit 20,636 9,793 --------------------------------------------- ----------- ----------- Operating expenses: Research & development 3,387 2,641 Selling, general & administrative 6,477 4,823 Total operating expenses 9,864 7,464 --------------------------------------------- ----------- ----------- Income from operations 10,772 2,329 --------------------------------------------- ----------- ----------- Other income (expense) : Interest income, net 214 111 Other income 39 43 Foreign currency exchange gain (loss) (4) (130) Net other income 249 24 --------------------------------------------- ----------- ----------- Net income before taxes 11,021 2,353 --------------------------------------------- ----------- ----------- Income taxes 2,221 681 --------------------------------------------- ----------- ----------- Net income 8,800 1,672 --------------------------------------------- ----------- ----------- --------------------------------------------- ----------- ----------- Basic earnings per share 0.83 0.16 --------------------------------------------- ----------- ----------- Weighted average number of shares 10,557,460 10,527,310 --------------------------------------------- ----------- ----------- Diluted earnings per share 0.82 0.16 --------------------------------------------- ----------- ----------- Diluted weighted average number of shares 10,724,345 10,700,434 --------------------------------------------- ----------- ----------- *T -0- *T ICOS Vision Systems Corporation NV CONSOLIDATED BALANCE SHEETS according to US GAAP (in thousands of Euro) March 31, December 31, 2006 2005 (unaudited) (audited) ASSETS Current assets Cash and cash equivalents 54,795 50,728 Trade accounts receivable, net 28,528 26,542 Inventories, net 27,477 25,368 Prepaid expenses and other current assets 4,450 3,430 ----------------------------------------------- ----------- --------- Total current assets 115,250 106,068 ----------------------------------------------- ----------- --------- Net property and equipment 10,100 10,131 Intangible assets 3,945 4,257 Other assets 2,116 2,071 ----------------------------------------------- ----------- --------- Total assets 131,411 122,527 =============================================== =========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable 11,714 12,994 Short-term borrowings & current portion long-term debt 610 638 Other current liabilities 16,443 14,375 ----------------------------------------------- ----------- --------- Total current liabilities 28,767 28,007 ----------------------------------------------- ----------- --------- Long-term debt, excluding current portion 3,696 3,852 Other long-term liabilities 1,832 1,587 ----------------------------------------------- ----------- --------- Total liabilities 34,295 33,446 ----------------------------------------------- ----------- --------- STOCKHOLDERS' EQUITY Common stock 3,247 3,247 Additional paid-in capital 22,532 22,524 Retained earnings 72,582 63,782 Accumulated other comprehensive income (loss) (1,245) (472) ----------------------------------------------- ----------- --------- Total stockholders' equity 97,116 89,081 ----------------------------------------------- ----------- --------- Total liabilities and stockholders' equity 131,411 122,527 =============================================== =========== ========= *T -0- *T ICOS Vision Systems Corporation NV CONSOLIDATED STATEMENTS OF CASH FLOWS ACCORDING TO US GAAP (in thousands of EURO) Three months ended March 31 2006 2005 Cash flows from operating activities (unaudited) (unaudited) -------------- -------------- Net income 8,800 1,672 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 509 490 Allowance for doubtful debts 191 31 Loss on disposal of property and equipment - 18 Deferred tax expense (benefit) (213) (85) Stock based compensation expense 8 - Changes in assets and liabilities: Decrease (increase) in trade accounts receivable (2,551) 2,247 Decrease (increase) in inventories (2,361) 1,646 Decrease (increase) in prepaid expenses and other current assets (795) (314) Decrease (increase) in other assets (84) (10) (Decrease) increase in trade accounts payable (1,289) (586) (Decrease) increase in other current liabilities 2,232 (624) (Decrease) increase in other long- term liabilities 125 (26) -------------- -------------- Net cash provided by operating activities 4,572 4,459 -------------- -------------- Cash flows from investing activities Additions to property and equipment (137) (258) -------------- -------------- Net cash used in investing activities (137) (258) -------------- -------------- Cash flows from financing activities Repayment of borrowings (184) (175) -------------- -------------- Net cash used in financing activities (184) (175) -------------- -------------- Increase in cash and cash equivalents 4,251 4,026 Impact of exchange rate movements on cash (184) (96) Cash and cash equivalents at beginning of period 50,728 42,179 -------------- -------------- Cash and cash equivalents at end of period 54,795 46,109 ============== ============== *T