Nanometrics Incorporated today announced financial results for its fourth quarter and full year ended December 27, 2014.
2014 Achievements Include:
- Expanded Position to Every FinFET Device Fab. Tool of Record (ToR) positions for Atlas® and NanoDiffract® optical critical dimension (OCD) solutions expanded to every leading fab developing or manufacturing FinFET logic devices;
- Multiple Share Gains and Leading Position in 3D NAND. Incremental market share wins, expanded customer footprint and ToR positions for both Atlas automated systems and IMPULSE® integrated metrology at every one of the four leading memory customers for 3D NAND process control, including a new competitive win for the Atlas in the fourth quarter;
- Continued Leadership and Growth in Advanced 3D Packaging. Establishment of the UniFire® as ToR at every leading fab for the most advanced 3D packaging technologies, including Through Silicon Via (TSV), micro bump and micro pillar process control, while also delivering a record revenue year with follow-on shipments for advanced logic, foundry and DRAM applications; and
- Significant Competitive Wins in Pure-Play Foundries: Exiting the year with the strongest foundry position in the company's history, and record pure-play foundry revenues for 2014.
Commenting on the company's results, president and chief executive officer Dr. Timothy J. Stultz said, "2014 was a year of successful execution in gaining market share and expanding our customer footprint to every major customer for semiconductor wafer fab equipment. The technology inflection points underway, including FinFET adoption by the foundries, the launch of 3D NAND manufacturing, and the increasing use of advanced 3D packaging technologies, are increasing customer demand for all of our product platforms and metrology solutions. The result of incremental market share gains and growth in our served markets led to our sales outperforming the overall industry, with product revenues increasing 24% over 2013. Importantly, we expect the continued growth of our served markets, combined with the expanded footprint and share gains we achieved in 2014, will lead to another year of revenue growth, industry outperformance, improved financial performance, and profitability for 2015."
Fourth Quarter 2014 Summary
Revenues for the fourth quarter of 2014 were $39.7 million, up 46% from $27.1 million in the third quarter of 2014 and down 14% from $46.2 million in the fourth quarter of 2013. On a GAAP basis, gross margin was 43.7%, compared to 42.1% in the prior quarter and 47.5% in the year-ago period. The operating loss was $3.8 million, compared to an operating loss of $10.6 million in the prior quarter and operating income of $1.3 million in the year-ago period. The net loss was $4.6 million or $0.19 per share, compared to a net loss of $28.7 million or $1.19 per share in the prior quarter, which included a non-cash valuation allowance on deferred tax assets of $21.1 million, and net income of $0.6 million or $0.02 per diluted share in the fourth quarter of 2013.
On a non-GAAP basis, which excludes amortization of acquired intangible assets, gross margin was 45.4% compared to 44.6% in the prior quarter and 48.9% in the year-ago period. The non-GAAP operating loss for the fourth quarter also excluded a $0.6 million restructuring charge and was $2.5 million, compared to an operating loss of $8.1 million in the prior quarter and operating income of $2.1 million in the fourth quarter of 2013. The non-GAAP net loss, which adjusts for amortization of intangible assets, restructuring charges, valuation allowances related to certain deferred tax assets, and the income tax effect of non-GAAP adjustments, was $3.0 million or $0.12 per share, compared to a net loss of $5.9 million or $0.24 per share in the prior quarter and net income of $1.0 million or $0.04 per diluted share in the fourth quarter of 2013.
Full Year 2014 Summary
Revenues were $166.4 million, up 15% from $144.3 million in 2013. On a GAAP basis, gross margin was 45.6%, compared to 43.4% in 2013, and the operating loss was $11.7 million, compared to $21.7 million in 2013. The net loss included a non-cash valuation allowance on deferred tax assets of $21.4 million and was $31.1 million or $1.30 per share, compared to a net loss of $14.1 million or $0.61 per share in 2013.
On a non-GAAP basis, which excludes amortization of acquired intangible assets and the impact of a $2.4 million inventory write-off recorded in 2013 for the discontinued Mosaic product line, gross margin was 47.2% compared to 46.9% in 2013. The non-GAAP operating loss for 2014 also excludes restructuring charges and was $6.2 million, compared an operating loss of $14.2 million in 2013. The non-GAAP net loss, which also adjusts for the valuation allowance on deferred tax assets and the income tax effect of non-GAAP adjustments, was $5.7 million or $0.24 per share, compared to $9.3 million or $0.40 per share in 2013.
Management expects first-quarter 2015 revenues in the range of $47 to $51 million, with GAAP gross margin in the range of 44.5% to 46.0% and non-GAAP gross margin in the range of 46.0% to 47.5%. Management expects first-quarter operating expenses to range between $21.2 million and $21.9 million on a GAAP basis, and between $21.0 million and $21.7 million on a non-GAAP basis. Management expects first-quarter earnings in the range of ($0.03) per share to $0.05 per diluted share on a GAAP basis, and $0.00 to $0.09 per diluted share on a non-GAAP basis.