POCATELLO, USA & CHENGDU, CHINA: Hoku Materials Inc., a wholly owned subsidiary of Hoku Scientific Inc., established to manufacture and sell polysilicon for the solar market, and Tianwei New Energy (Chengdu) Wafer Co. Ltd., a subsidiary of Tianwei New Energy Holdings Co. Ltd. that manufactures silicon wafers, photovoltaic cells, and modules in China, have amended their two polysilicon supply contracts.
This amendment is meant to accelerate $5 million of the remaining $7 million in prepayments that Tianwei was obligated to pay to Hoku, eliminate Hoku's near-term shipping obligation to Tianwei, and adjust the long-term contract price.
Tianwei had already paid Hoku a combined $74 million in prepayments through April 30, 2009. Before the amendments, Tianwei was obligated to pay Hoku an additional $7 million upon Hoku's first shipment of products in 2010.
In exchange for a long-term contract price adjustment, Tianwei agreed to pay $5 million of this remaining $7 million up front, and eliminated the requirement that Hoku ship polysilicon to Tianwei before March 2010. These early shipments would have been additive to the long-term contract amounts, and Hoku's failure to make these shipments would have resulted in a price penalty.
The remaining $2 million is to be paid when Hoku commences polysilicon shipments to Tianwei in 2010. As of June 30, 2009, Tianwei has paid to Hoku a combined aggregate of $79 million in prepayments for future product deliveries.
Hoku reported that the average prices over the ten-year term of each contract were adjusted downward by eight percent, such that the total amounts payable over the ten-year term of both agreements was reduced from approximately $511 million to approximately $468 million.
"The early payment of $5 million has helped us manage cash flow for our Hoku Materials subsidiary, especially as some of our other customers were requesting extensions of time make their prepayments to us," said Dustin Shindo, chairman and CEO of Hoku Scientific.
"Eliminating the early shipment requirement reduces near-term pressure for us to commence shipments, and allows us to more effectively manage the timing of our capital expenditures as we seek to raise additional financing for continuing construction costs."
"Tianwei has contributed $79 million out of a combined total of $158 million in prepayments from our polysilicon customers," said Shindo. "Their strong commitment to our project is reflected not just in the amount of capital committed, but in our mutual willingness to adjust our contractual commitments based on recent market conditions.
"The agreed upon unit prices remain attractive for Hoku over the ten-year period, while also offering Tianwei the ability to more effectively control its production costs and be competitive. The accelerated payment of $5 million helps us manage our near-term capital requirements."
"Tianwei views Hoku as one of our key strategic partners," said Aihua Guo, Tianwei's general manager. "These amendments strengthen our long-term commitment to Hoku, and we remain confident in their ability to begin shipping high quality polysilicon to us in the months ahead."
Showing posts with label silicon wafers. Show all posts
Showing posts with label silicon wafers. Show all posts
Thursday, July 9, 2009
Wednesday, May 13, 2009
Amtech reports Q2 results; to intro new solar products -- Diffusion + PSG Etch + PECVD
TEMPE, USA: Amtech Systems Inc., a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and silicon wafers, reported financial results for its fiscal 2009 second quarter ended March 31, 2009.
Q2 fnancial highlights:
* Net revenue of $10.9 million, compared to $17.6 million in the prior year quarter: approximately $3 million of shipments scheduled for Q2 were pushed into Q3 and Q4, due primarily to delays in readiness of customer facilities.
* Solar revenue of $4.6 million, compared to $11.4 million in the prior year quarter.
* Gross margin of 22 percent, compared to 23 percent in the prior year quarter.
Impairment and restructuring charges of $1.7 million relating to Bruce Technologies, an Amtech subsidiary dependent on the semiconductor industry.
* Operating loss of $2.6 million, compared to an operating loss of $82,000 in the prior year quarter.
* Net loss of $2 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, in the prior year quarter.
* Quarter-end backlog of $34.7 million (solar $32.6 million).
* Repurchased approximately 144,000 shares of Amtech common stock during the quarter.
* Ending cash balance of $37.2 million at March 31, 2009, compared to $38.4 million at December 31, 2008.
Cost reduction actions
* Consolidated workforce has been reduced 22 percent since its peak at September 30, 2008
* Amtech executive officers and outside directors have taken a reduction in salary and board meeting fees, respectively, starting April 1, 2009
* Bruce Technologies subsidiary has been restructured
J.S. Whang, President and Chief Executive Officer of Amtech, commented: "As we previously announced, fiscal second quarter revenue reflects the push-out of approximately $3 million in shipments into subsequent quarters. To date we have not had any order cancellations of significance. We continue to be proactive in managing our operations to achieve our goal of positive EBITDA in fiscal 2009 (excluding restructuring and non-cash impairment charges), as evidenced by the 22 percent reduction in our workforce and the restructuring of one of our subsidiaries. Our financial position remains solid, with essentially no debt and a strong cash balance.
"We remain focused on executing our multi-product solar growth plan, including the introduction of our new solar etch product, which we expect to launch within the current fiscal third quarter. With this launch, we will begin offering three solar products, Diffusion + PSG Etch + PECVD (continuous sequential processing steps), which will further increase the size of our served available market. We are determined to emerge as a stronger player through the current down cycle, and continue to be optimistic about the long-term growth opportunities in the solar market as all fundamentals remain intact."
Net revenue for the second quarter of fiscal 2009 totaled $10.9 million, compared to net revenue of $17.6 million for the second quarter of fiscal 2008, and reflects lower shipments to the solar industry partially offset by increased shipments to the MEMS (microelectromechanical systems) segment of the semiconductor industry and recognition of previously deferred revenue.
Total orders for the quarter ended March 31, 2009 were $5.8 million ($3.0 million solar) before foreign exchange effect on backlog. At March 31, 2009, the Company's total order backlog was $34.7 million, compared to backlog of $42.4 million at December 31, 2008. Total backlog includes $32.6 million in solar orders, compared to solar backlog of $52.6 million at March 31, 2008. The effect of foreign exchange on backlog was $2.6 million in the March quarter and contributed to the decline in the backlog. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the second quarter of fiscal 2009 was 22%, compared to 23% in the second quarter of fiscal 2008, primarily reflecting lower shipment volumes and the related reduction in efficiencies and plant utilization. Amtech recognized $0.5 million of previously deferred profit for the quarter ended March 31, 2009, net of deferrals, compared to a net deferral of $0.7 million for the quarter ended March 31, 2008.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2009 decreased $0.9 million, or 22 percent, to $3.1 million, compared to $4.0 million in the second quarter of fiscal 2008. The decrease in expense is primarily due to decreased sales commissions on lower revenue generated in regions where third party sales agents are utilized.
In the second quarter of fiscal 2009, Amtech's Bruce Technologies semiconductor operations were restructured due to the continued slowdown in the semiconductor industry. As a result of the restructuring, Amtech recorded $0.6 million in restructuring charges and $1.1 million in non-cash goodwill and intangible asset impairment charges in the second quarter.
Depreciation and amortization in the second quarter of fiscal 2009 was $385,000, compared to $386,000 in the second quarter of fiscal 2008. Included in the second quarter fiscal 2009 results is $167,000 of stock option expense, compared to $128,000 in the second quarter a year ago.
As a result of a pretax loss, an income tax benefit of $580,000 was recorded in the second quarter of fiscal 2009 compared to a tax expense of $105,000 in the second quarter of fiscal 2008. The tax benefit was lower than our historical effective tax rate due primarily to an increase to the valuation allowance and permanent differences between financial income and taxable income.
The net loss for the second quarter of fiscal 2009 was $2.0 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, for the second quarter of fiscal 2008.
Total cash and cash equivalents at March 31, 2009 were $37.2 million, compared with $38.4 million at December 31, 2008.
In December 2008, Amtech's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $4 million of its common stock. During the second quarter of fiscal 2009, Amtech repurchased approximately 144,000 shares of its common stock for $0.4 million in cash and at an average cost of $3.09 per share.
Outlook
While the current global economic and credit crisis has negatively impacted growth in the solar market in the near-term and prolonged the downturn in the semiconductor market, Amtech continues to have a long-term positive outlook on both industries. With a strong balance sheet and cash position, Amtech plans to emerge from this down cycle even stronger with its multi-product solar offerings.
While there appears to be some signs of increased activity in both the solar and semiconductor markets, visibility in second half of fiscal 2009 is currently unclear as the continuing global economic downturn has caused solar cell manufacturers, Amtech's principal solar customer base, to slow or push out their capacity expansion plans. Despite the anticipated downturn in revenues, Amtech expects to generate positive EBITDA (excluding impairment and restructuring charges) in fiscal 2009.
Operating results for future periods could be impacted by the timing of system shipments, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.
Q2 fnancial highlights:
* Net revenue of $10.9 million, compared to $17.6 million in the prior year quarter: approximately $3 million of shipments scheduled for Q2 were pushed into Q3 and Q4, due primarily to delays in readiness of customer facilities.
* Solar revenue of $4.6 million, compared to $11.4 million in the prior year quarter.
* Gross margin of 22 percent, compared to 23 percent in the prior year quarter.
Impairment and restructuring charges of $1.7 million relating to Bruce Technologies, an Amtech subsidiary dependent on the semiconductor industry.
* Operating loss of $2.6 million, compared to an operating loss of $82,000 in the prior year quarter.
* Net loss of $2 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, in the prior year quarter.
* Quarter-end backlog of $34.7 million (solar $32.6 million).
* Repurchased approximately 144,000 shares of Amtech common stock during the quarter.
* Ending cash balance of $37.2 million at March 31, 2009, compared to $38.4 million at December 31, 2008.
Cost reduction actions
* Consolidated workforce has been reduced 22 percent since its peak at September 30, 2008
* Amtech executive officers and outside directors have taken a reduction in salary and board meeting fees, respectively, starting April 1, 2009
* Bruce Technologies subsidiary has been restructured
J.S. Whang, President and Chief Executive Officer of Amtech, commented: "As we previously announced, fiscal second quarter revenue reflects the push-out of approximately $3 million in shipments into subsequent quarters. To date we have not had any order cancellations of significance. We continue to be proactive in managing our operations to achieve our goal of positive EBITDA in fiscal 2009 (excluding restructuring and non-cash impairment charges), as evidenced by the 22 percent reduction in our workforce and the restructuring of one of our subsidiaries. Our financial position remains solid, with essentially no debt and a strong cash balance.
"We remain focused on executing our multi-product solar growth plan, including the introduction of our new solar etch product, which we expect to launch within the current fiscal third quarter. With this launch, we will begin offering three solar products, Diffusion + PSG Etch + PECVD (continuous sequential processing steps), which will further increase the size of our served available market. We are determined to emerge as a stronger player through the current down cycle, and continue to be optimistic about the long-term growth opportunities in the solar market as all fundamentals remain intact."
Net revenue for the second quarter of fiscal 2009 totaled $10.9 million, compared to net revenue of $17.6 million for the second quarter of fiscal 2008, and reflects lower shipments to the solar industry partially offset by increased shipments to the MEMS (microelectromechanical systems) segment of the semiconductor industry and recognition of previously deferred revenue.
Total orders for the quarter ended March 31, 2009 were $5.8 million ($3.0 million solar) before foreign exchange effect on backlog. At March 31, 2009, the Company's total order backlog was $34.7 million, compared to backlog of $42.4 million at December 31, 2008. Total backlog includes $32.6 million in solar orders, compared to solar backlog of $52.6 million at March 31, 2008. The effect of foreign exchange on backlog was $2.6 million in the March quarter and contributed to the decline in the backlog. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the second quarter of fiscal 2009 was 22%, compared to 23% in the second quarter of fiscal 2008, primarily reflecting lower shipment volumes and the related reduction in efficiencies and plant utilization. Amtech recognized $0.5 million of previously deferred profit for the quarter ended March 31, 2009, net of deferrals, compared to a net deferral of $0.7 million for the quarter ended March 31, 2008.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2009 decreased $0.9 million, or 22 percent, to $3.1 million, compared to $4.0 million in the second quarter of fiscal 2008. The decrease in expense is primarily due to decreased sales commissions on lower revenue generated in regions where third party sales agents are utilized.
In the second quarter of fiscal 2009, Amtech's Bruce Technologies semiconductor operations were restructured due to the continued slowdown in the semiconductor industry. As a result of the restructuring, Amtech recorded $0.6 million in restructuring charges and $1.1 million in non-cash goodwill and intangible asset impairment charges in the second quarter.
Depreciation and amortization in the second quarter of fiscal 2009 was $385,000, compared to $386,000 in the second quarter of fiscal 2008. Included in the second quarter fiscal 2009 results is $167,000 of stock option expense, compared to $128,000 in the second quarter a year ago.
As a result of a pretax loss, an income tax benefit of $580,000 was recorded in the second quarter of fiscal 2009 compared to a tax expense of $105,000 in the second quarter of fiscal 2008. The tax benefit was lower than our historical effective tax rate due primarily to an increase to the valuation allowance and permanent differences between financial income and taxable income.
The net loss for the second quarter of fiscal 2009 was $2.0 million, or a loss of $0.22 per share, compared to net income of $161,000, or $0.02 per diluted share, for the second quarter of fiscal 2008.
Total cash and cash equivalents at March 31, 2009 were $37.2 million, compared with $38.4 million at December 31, 2008.
In December 2008, Amtech's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $4 million of its common stock. During the second quarter of fiscal 2009, Amtech repurchased approximately 144,000 shares of its common stock for $0.4 million in cash and at an average cost of $3.09 per share.
Outlook
While the current global economic and credit crisis has negatively impacted growth in the solar market in the near-term and prolonged the downturn in the semiconductor market, Amtech continues to have a long-term positive outlook on both industries. With a strong balance sheet and cash position, Amtech plans to emerge from this down cycle even stronger with its multi-product solar offerings.
While there appears to be some signs of increased activity in both the solar and semiconductor markets, visibility in second half of fiscal 2009 is currently unclear as the continuing global economic downturn has caused solar cell manufacturers, Amtech's principal solar customer base, to slow or push out their capacity expansion plans. Despite the anticipated downturn in revenues, Amtech expects to generate positive EBITDA (excluding impairment and restructuring charges) in fiscal 2009.
Operating results for future periods could be impacted by the timing of system shipments, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.
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