On October 18, DuPont Photomasks Inc. (Round Rock, TX) today announced results for the quarter ended September 30, 2001. Revenues for the first quarter of fiscal 2002 totaled $77.5 million, 23 percent less than the $100.5 million in fiscal 2001's first quarter. The company recorded an underlying net loss for the first quarter of fiscal 2002 of $2.5 million ($0.14 loss per diluted share). This number excludes net unrealized losses associated with stock warrants. The firm had an underlying net income of $10.6 million ($0.58 earnings per diluted share) in Q1 of fiscal 2001, excluding the cumulative effect of a change in an accounting principle (SAB 101).
Including the unrealized losses associated with stock warrants, the company recorded a net loss for the first quarter of fiscal 2002 of $3.0 million ($0.17 loss per diluted share), compared to fiscal 2001's first quarter net income of $10.2 million ($0.55 per diluted share).
“Our customers continue to be challenged by the most severe downturn in the history of the industry,” said Peter Kirlin, chairman and chief executive officer of DuPont Photomasks. “The sequential decline in revenues was principally due to a drop in our trailing-edge business and reduced outsourcing by our strategic partners with internal photomask operations, with the bulk of the impact at the leading edge. However, we are pleased that the impact of the latter was more than offset by growth in leading-edge business with other customers.”
Kirlin continued, “During the quarter, we intensified our focus on reducing costs and improving productivity in the short-term, and were successful in realizing targeted cost savings faster than anticipated. We have continued to invest in research and development programs necessary to support our customers' transition to 130-nm design rules over the next several quarters. Our global customers are relying upon us to deliver the microimaging solutions they require to ramp up 130-nm device production in their advanced fabs around the world. Advanced photomasks are critical to our customers' ability to stay on course with Moore's Law and deliver faster, smaller and cheaper chips, without making additional investments in new lithography equipment.”
During the quarter, revenue from photomasks supporting 180-nm and below design rules grew nearly 20 percent over the year-ago quarter to approximately 35 percent of total revenues. The company currently expects second-quarter fiscal 2002 revenues of between $70 million and $80 million, resulting in a loss of between $0.10 and $0.40 per diluted share.