<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
QUARTERLY PERIOD ENDED DECEMBER 31, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
TRANSITION PERIOD FROM _____ TO _____
Commission File Number 0-23840
Micrion Corporation
-------------------
(Exact name of Registrant as specified in its chart)
Massachusetts 04-2892070
- ------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Corporation Way, Peabody, Massachusetts 01960-7990
- ------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(978) 538-6700
--------------
(Registrant's telephone number)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d} o(pound) the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
As of February 1, 1998, the Company had 4,062,799 shares of Common
Stock, no par value, outstanding.
Page l
<PAGE> 2
MICRION CORPORATION
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page #
------
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1997 and 3
December 31, 1997 (unaudited)
Consolidated Statements of Operations - Three months ended 4
December 31, 1996 and 1997 (unaudited) and Six months ended
December 31, 1996 and 1997 (unaudited)
Consolidated Statements of Cash Flows - Six months ended 5
December 31, 1996 and 1997 (unaudited)
Notes to Consolidated Financial Statements - December 31, 1997 6
Item 2. Management's Discussion and Analysis of Financial Condition and 7
Results of Operation
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities - None 12
Item 3. Defaults Upon Senior Securities - None 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information - None 13
Item 6. Exhibits and Reports on Form 8-K 14
</TABLE>
Page 2
<PAGE> 3
MICRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(UNAUDITED)
JUNE 30 DECEMBER 31
ASSETS 1997 1997
------- -----------
(in thousands)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 2,677 $ 4,023
Accounts receivable 18,755 18,167
Inventories (note 3) 24,986 28,850
Prepaid expenses and other current assets 668 784
Deferred income taxes 1,367 1,367
------- -------
Total current assets 48,453 53,191
------- -------
PROPERTY AND EQUIPMENT, net (note 4) 5,821 5,751
OTHER ASSETS, net 110 95
------- -------
Total assets $54,384 $59,037
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable 6,855 3,800
Current portion of obligations under capital leases 659 680
Current portion of long term debt - 1,000
Accounts payable 7,030 6,462
Accrued expenses 4,574 3,284
Accrued warranty expenses 1,212 1,439
Customer deposits and deferred income 251 402
------- -------
Total current liabilities 20,581 17,067
------- -------
OBLIGATIONS UNDER CAPITAL LEASES 1,355 1,010
LONG TERM DEBT - 7,000
STOCKHOLDERS' EQUITY:
Preferred stock, no par value; authorized 5,000,000 shares - -
Common stock, no par value; authorized 12,300,000 shares 31,551 31,713
Retained earnings 877 2,152
Other equity 20 95
------- -------
Total stockholders' equity 32,448 33,960
------- -------
Total liabilities and stockholders' equity $54,384 $59,037
======= =======
</TABLE>
3
<PAGE> 4
MICRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
Three Months Ended December 31, Six Months Ended December 31,
------------------------------- -----------------------------
1996 1997 1996 1997
------- ------- ------- -------
(in thousands except for per share data)
<S> <C> <C> <C> <C>
REVENUES:
Product revenues $13,117 $14,273 $26,227 $28,876
Contract revenues 277 292 408 467
------- ------- ------- -------
Total revenues 13,394 14,565 26,635 29,343
------- ------- ------- -------
COST OF REVENUES:
Cost of product revenues 7,605 8,267 15,442 17,394
Cost of contract revenues 239 252 374 419
------- ------- ------- -------
Total cost of revenues 7,844 8,519 15,816 17,813
------- ------- ------- -------
Gross profit 5,550 6,046 10,819 11,530
OPERATING EXPENSES:
Selling, general and
administrative expenses 2,591 3,119 4,967 5,939
Research and development expenses 1,403 1,638 2,714 3,102
------- ------- ------- -------
Total operating expenses 3,994 4,757 7,681 9,041
------- ------- ------- -------
Income from operations 1,556 1,289 3,138 2,489
OTHER (EXPENSE) INCOME:
Interest income 55 34 91 92
Interest expense (83) (298) (189) (578)
Other 1 (41) (1) (40)
------- -------- -------- --------
Total other (expense) income (27) (305) (99) (526)
-------- -------- -------- --------
Income before provision
for income taxes 1,529 984 3,039 1,963
PROVISION FOR INCOME TAXES 536 344 1,064 687
------- ------- ------- -------
Net income $ 993 $ 640 $ 1,975 $ 1,276
======= ======= ======= =======
EARNINGS PER SHARE:
BASIC $ .25 $ .16 $ .49 $ .31
======= ======= ======= =======
DILUTED $ .24 $ .15 $ .47 $ .29
======= ======= ======= =======
WEIGHTED AVERAGE NUMBER OF SHARES:
BASIC 4,033 4,054 4,033 4,051
======= ======= ======= =======
DILUTED 4,212 4,390 4,167 4,376
======= ======= ======= =======
</TABLE>
4
<PAGE> 5
MICRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(UNAUDITED)
Six months ended December 31,
1996 1997
------- -------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,975 $ 1,276
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 659 940
Non-cash compensation 3 1
Changes in assets and liabilities:
Accounts receivable 1,531 597
Inventories (800)
Prepaid expenses and other current assets (421) (133)
Accounts payable (2,741) (568)
Accrued expenses 617 (1,147)
Provision for warranty expenses 292 229
Customer deposits and deferred income (198) 151
------- -------
Net cash provided by (used in) operating activities 917 (2,518)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (2,967) (1,342)
Disposition of property and equipment - 563
Increase in other assets (42) (75)
------- -------
Net cash used by investing activities (3,009) (855)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from capital lease obligations 1,463 -
Repayments of capital lease obligations (253) (325)
Net borrowings (repayments) from line of credit 1,355 (3,055)
Net proceeds from long-term debt issuance - 7,960
Issuance of common stock 43 162
------- -------
Net cash provided by financing activities 2,608 4,742
------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (9) (23)
------- -------
INCREASE IN CASH AND CASH EQUIVALENTS 507 1,346
CASH AND CASH EQUIVALENTS, beginning of period 2,081 2,677
------- -------
CASH AND CASH EQUIVALENTS, end of period $ 2,588 $ 4,023
======= =======
SUMMARY OF NON-CASH FINANCIAL TRANSACTIONS:
Fixed assets acquired under operating lease $ - $ 199
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 196 $ 537
======= =======
Income taxes $ 700 $ 650
======= =======
</TABLE>
5
<PAGE> 6
MICRION CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1997
(1) NATURE OF BUSINESS
Micrion Corporation and its subsidiaries (collectively "the Company") are
engaged in the development, production and marketing of capital equipment used
in the manufacturing and processing of semiconductor and other high technology
devices. During the fiscal quarter ended December 31, 1997, the Company
established Micrion U.K. Ltd., a wholly owned subsidiary, located in Bristol,
England.
(2) BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with the instructions to Form 10-Q and Article 2 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for fair presentation have been included. The accompanying
financial statements should be read in conjunction with the consolidated
financial statements and footnotes thereto included in the Company's annual
report 10-K filing with the U.S. Securities and Exchange Commission for the year
ended June 30, 1997. The Company's first, second, and third fiscal quarters end
on the Saturday closest to September 30, December 31 and March 31, respectively.
For ease of reference, such quarter end dates are used herein.
(3) INVENTORIES
Inventories consist of:
(UNAUDITED)
JUNE 30, DECEMBER 31,
1997 1997
-------- ------------
(in thousands)
Raw materials and manufactured parts, net $14,430 $14,241
Work in process 8,864 10,176
Finished goods 1,692 4,433
------- -------
Total inventories $24,986 $28,850
======= =======
(4) PROPERTY AND EQUIPMENT, NET
Property and equipment consists of:
(UNAUDITED)
JUNE 30, DECEMBER 31,
1997 1997
-------- ------------
(in thousands)
Furniture and fixtures $ 708 $ 787
Computer, engineering and production
equipment 5,872 6,588
Sales demonstration systems 345 -
Leasehold improvements 537 573
Property under capital lease 3,474 3,464
------- -------
$10,936 $11,412
Accumulated depreciation and amortization (5,115) (5,661)
------- -------
Net property and equipment $ 5,821 $ 5,751
======= =======
At June 30, 1997 and December 31, 1997, accumulated amortization for property
under capital lease was $1,494 and $1,833, respectively.
6
<PAGE> 7
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 1997 COMPARED TO THREE MONTHS ENDED DECEMBER 31,
1996
REVENUES Total revenues increased by 9% to $14.6 million for the three months
ended December 31, 1997 from $13.4 million for the same period ended December
31, 1996.
Product revenues consist of revenues from the sale of focused ion beam (FIB)
systems, spare and replacement parts and service contracts provided with respect
to systems. Product revenues increased 9% to $14.3 million for the three-month
period ended December 31, 1997 from $13.1 million for the same period ended
December 31, 1996. The increase was primarily due to higher revenues derived
from the Micrion Flip-Chip FIB and Micromill HT head trimming systems shipped
during the quarter ended December 31, 1997.
GROSS PROFIT Total gross profit increased 9% to $6.0 million for the three
months ended December 31, 1997 from $5.6 million for the same period ended
December 31, 1996. The increase was primarily due to higher revenues derived
from the Micrion Flip-Chip FIB and Micromill HT head trimming systems shipped
during the quarter ended December 31, 1997.
The Company's gross margin on product revenues remained unchanged at 42% for
the three-month period ended December 31, 1997 as compared to the three-month
period ended December 31, 1996.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and
administrative expenses increased 20% to $3.1 million for the three-month period
ended December 31, 1997 from $2.6 million for the same period ended December 31,
1996. The increase is attributable to increases in sales and marketing expenses
associated with the addition of personnel in applications support, the expansion
of Micrion's Japanese subsidiary, and the creation of a branch office located in
Taipei, Taiwan and the creation of a wholly owned subsidiary in the United
Kingdom.
RESEARCH AND DEVELOPMENT EXPENSES The Company's research and development
expenses increased 17% to $1.6 million for the three-month period ended December
31, 1997 from $1.4 million for the same period ended December 31, 1996. The
increase was due to the Company's additional development activity for new
products and applications, which includes the 300 mm wafer development program.
7
<PAGE> 8
The level of research and development expense is expected to increase over the
remainder of the fiscal year due to management's decision to explore certain
production applications for its FIB products.
OTHER INCOME AND EXPENSE Other expense, net, primarily interest expense,
increased to $300,000 for the three-month period ended December 31, 1997 as
compared to $30,000 for the same period ended December 31, 1996. The increase is
due to a lower cash position during the period ended December 31, 1997 which
resulted in the Company's increased borrowing under its available line of credit
and the continuing interest expense incurred from the Company's term loan
completed in July 1997.
PROVISION FOR INCOME TAXES The Company's effective tax rate for the
three-month periods ended December 31, 1997 and 1996 reflects a tax rate of
approximately 35%.
SIX MONTHS ENDED DECEMBER 31, 1997 COMPARED TO SIX MONTHS ENDED DECEMBER 31,
1996
REVENUES Total revenues increased by 10% to $29.3 million for the six months
ended December 31, 1997 from $26.6 million for the same period ended December
31, 1996.
Product revenues consist of revenues from the sale of focused ion beam (FIB)
systems, spare and replacement parts and service contracts provided with respect
to systems. Product revenues increased 10% to $28.9 million for the six-month
period ended December 31, 1997 from $26.2 million for the same period ended
December 31, 1996. The increase was primarily due to higher revenues derived
from the Micrion Flip-Chip FIB and Micromill HT head trimming systems shipped
during the quarter ended December 31, 1997.
GROSS MARGIN Total gross profit increased 7% to $11.5 million for the six
months ended December 31, 1997 from $10.8 million for the same period ended
December 31, 1996. The increase was primarily due to higher revenues derived
from the Micrion Flip-Chip FIB and Micromill HT head trimming systems shipped
during the quarter ended December 31, 1997.
The Company's gross margin on product revenues decreased to 40% for the
six-month period ended December 31, 1997 from 41% for the same period ended
December 31, 1996. Gross margin on product revenues is affected by changes in
the type of product shipments and the mix of foreign and domestic shipments
during any given period. During the quarter ended December 31, 1997, the mix of
systems, particularly those sold to the core business research and development
applications, resulted in lower margins on system sales.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and
administrative expenses increased 20% to $5.9 million for the six-month period
ended December 31, 1997 from $5.0 million for the same period ended December 31,
1996. The increase is attributable to increases in sales and marketing expenses
associated with the addition of personnel in applications support, the expansion
of Micrion's Japanese subsidiary, and
8
<PAGE> 9
the creation of a branch office located in Taipei, Taiwan and the creation of a
wholly owned subsidiary in the United Kingdom.
RESEARCH AND DEVELOPMENT EXPENSES The Company's research and development
expenses increased 14% to $3.1 million for the six-month period ended December
31, 1997 from $2.7 million for the same period ended December 31, 1996. The
increase was due to the Company's additional development activity for new
products and applications, which includes the 300 mm wafer development program.
OTHER INCOME AND EXPENSE Other expense, net, primarily interest expense,
increased to $500,000 for the six-month period ended December 31, 1997 as
compared to $100,000 for the same period ended December 31, 1996. The increase
is due to a lower cash position during the six-month period ended December 31,
1997, which resulted in the Company's increased borrowing under its available
line of credit and the continuing interest expense incurred from the Company's
term loan completed in July 1997.
PROVISION FOR INCOME TAXES The Company's effective tax rate for the six-month
periods ended December 31, 1997 and 1996 reflects a tax rate of approximately
35%.
YEAR 2000 Management is aware of the potential software logic anomalies
associated with the year 2000 date change. The Company is in the process of
evaluating the potential issue that might need to be addressed in connection
with its operations. Based on preliminary information, costs of addressing the
issue are not expected to have any material effect upon the Company's financial
position, results of operations, or cash flows in future periods.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1997 the Company had working capital of $36.1 million as
compared to $27.9 million at June 30, 1997, reflecting an increase in working
capital of $8.2 million. The increase is primarily attributable to a decrease in
a note payable due to the conversion of short term debt to long term debt and
the Company entering into a sale leaseback transaction on demonstration
equipment . Cash and cash equivalents were $4.0 million as of December 31, 1997
as compared to $2.7 million as of June 30, 1997.
Net cash used by operating activities for the six months ended December 31,
1997 was $2.5 million and consisted primarily of an increase in inventories and
a decrease in payables, offset by a decrease in accounts receivable. The
Company's inventories increased to $28.9 million at December 31, 1997 as
compared to $25.0 million at June 30, 1997. The increase is primarily due to
additional systems delivered to strategic customers on a consigned basis and
customer support inventory to support new installed FIB systems in foreign
regions. Accounts payable decreased due to a reduction of purchases toward the
end of the quarter.
Net cash used in investing activities for the six months ended December 31,
1997 was $.9 million and consisted primarily of increases in demonstration
equipment to be used
9
<PAGE> 10
for sales and marketing demonstrations and engineering equipment to be used in a
joint development program with a university.
Net cash provided by financing activities for the six months ended December
31, 1997 was $4.7 million and consisted of $8.0 million from the proceeds of a
long term debt issue, partially offset by a repayment of $3.1 million against
the outstanding balance on the Company's working capital line of credit.
The Company's accounts receivable decreased to $18.2 million at December
31,1997 as compared to $18.8 million at June 30,1997 due to increased FIB
shipments during the middle of the quarter ended December 31,1997, which
resulted in higher cash collections for the quarter.
The Company has a working capital line of credit with a bank, which provides
for borrowings up to $10.0 million. Amounts borrowed bear interest at the bank's
prime rate (8.50% at December 31,1997). The line of credit expires on
December 1, 1998 and is unsecured. As of December 31,1997, $3.8 million was
outstanding under the line of credit. Also in July 1997, the Company entered
into a secured long-term loan agreement with the same bank for $8.0 million. The
loan is secured by the Company's assets and intellectual property. The term loan
bears interest at the bank's prime rate plus 1.5% (10% at December 31, 1997).
The agreement calls for eight quarterly payments of $1.0 million commencing in
the quarter ending September 30, 1998 through the quarter ending June 30, 2000.
The proceeds from this loan were used to pay down the outstanding balance on the
line of credit. The credit agreement with respect to the working capital line
and the long-term loan prohibits the payment of dividends, has profitability
requirements and requires maintenance of specified levels of tangible net worth
and certain financial ratios.
Micrion has historically generated approximately 50% of its revenues from the
Far East. Given the current turmoil and confusion that surrounds the Asian
markets, it is possible that some or all of the Company's customers in that
region could reduce spending for new capital equipment, which would have a
material adverse effect on the Company's operations in future quarters. At this
time, the Company has not seen any cancellation of existing orders, but has
encountered delays in the receipt of new orders that had been expected.
The Company believes that it has the necessary liquidity and capital
resources to sustain existing operations for at least the next twelve months.
NEW ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 (SFAS 128), "Earnings per Share." SFAS
128 establishes a different method of computing earnings per share than is
currently required under the provisions of Accounting Principles Board Opinion
No. 15. Under SFAS 128, the Company is required to present both basic earnings
per share and diluted earnings per
10
<PAGE> 11
share. Basic earnings per share is expected to be higher than the currently
presented earnings per share as the effect of dilutive stock options will not be
considered in computing basic earnings per share. The Company adopted SFAS 128
in its fiscal quarter ended December 31, 1997 and at that time all historical
earnings per share data presented was restated to conform to the provisions of
SFAS 128.
In June 1997, the Financial Accounting Standards Board issued Statement 130
(SFAS 130), "Reporting Comprehensive Income," which establishes standards for
reporting and display of comprehensive income and its components in a full set
of general-purpose financial statements. Under this concept, all revenues,
expenses, gains and losses recognized during the period are included in income,
regardless of whether they are considered to be results of operations of the
period. SFAS 130, which becomes effective for the Company in its fiscal year
ending June 30, 1999, is not expected to have a material impact on the
consolidated financial statements of the Company.
In June 1997, the Financial Accounting Standards Board issued Statement 131
(SFAS 131), "Disclosures about Segments of an Enterprise and Related
Information," which establishes standards for the way that public business
enterprises report selected information about operating segments in annual
financial statements and requires that those enterprises report selected
information about operating segments in interim financial reports to
shareholders. It also establishes standards for related disclosures about
products and services, geographic areas and major customers. This Statement,
which becomes effective for the Company in its fiscal year ending June 30, 1999,
is not expected to have a material impact on the consolidated financial
statements of the Company.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
None
11
<PAGE> 12
Part II. Other Information
ITEM 1. LEGAL PROCEEDINGS.
Certain litigation filed against the Company purportedly by a class of
purchasers of the Company's common stock was described in the Company's Form
10-K filed on September 26, 1997. Subsequent to the filing date of Form 10-K, no
material developments have occurred with respect to this litigation.
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Annual Meeting of the Stockholders of Micrion Corporation was held
on November 3, 1997, at which the following matters were voted upon and
approved, with the number of votes cast for, against or abstained indicated for
each matter:
1. That Louis P. Valente and Thomas W. Folger be elected as directors of
the Company for three-year terms expiring at the 2000 annual meeting of
stockholders.
Votes
In Favor Of Votes Against Votes Abstained
----------- ------------- ---------------
3,342,037 80,036 0
2. That Nicholas P. Economou and Charles M. McKenna be elected as
directors of the Company for two-year terms expiring at the 1999 annual meeting
of stockholders.
Votes
In Favor Of Votes Against Votes Abstained
----------- ------------- ---------------
3,344,535 77,538 0
3. That Billy W. Ward be elected as director of the Company for a
one-year term expiring at the 1998 annual meeting of stockholders.
Votes
In Favor Of Votes Against Votes Abstained
----------- ------------- ---------------
3,344,575 77,498 0
4. That the Company's 1994 Omnibus Stock Plan be amended and restated.
Votes
In Favor Of Votes Against Votes Abstained
----------- ------------- ---------------
1,046,201 270,427 28,308
12
<PAGE> 13
ITEM 4 (CONTINUED). SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
5. That the selection by the Board of Directors of the firm of KPMG Peat
Marwick LLP, independent public accountants, as auditors for the Company for the
fiscal year ending June 30, 1998, be ratified.
Votes
In Favor Of Votes Against Votes Abstained
----------- ------------- ---------------
3,403,311 6,400 12,362
ITEM 5. OTHER INFORMATION.
None
13
<PAGE> 14
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS
The Exhibits filed as part of this report are listed below.
Exhibit
Number Description
------- -----------
11 Statement of Computation of Per Share Earnings
27 Financial Data Schedule
(b) REPORTS ON FROM 8-K
No reports on Form 8-K were filed during the quarter ended December 31,
1997.
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MICRION CORPORATION
(Registrant)
Date: February 13, 1998 /s/ Nicholas P. Economou
------------------------------------------
Nicholas P. Economou
President and Chief Executive Officer
Date: February 13, 1998 /s/ David M. Hunter
------------------------------------------
David M. Hunter
Vice President, Finance and Administration
15
<PAGE> 16
Micrion Corporation
EXHIBIT INDEX
Exhibit
Number Description Of Document Page
- ------- ----------------------- ----
11 Statement of Computation of
Per Share Earnings 17
27 Financial Data Schedule 18
16
<PAGE> 1
MICRION CORPORATION AND SUBSIDIARIES Exhibit 11
Statement of Computation of Per Share Earnings
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
For the three months For the six months
ended December 31, ended December 31,
1996 1997 1996 1997
------ ------ ------ ------
(in thousands except per share data)
<S> <C> <C> <C> <C>
Net Income ...................... $ 993 $ 640 $1,975 $1,276
(a) Computation of Basic Earnings
per Share:
Weighted average common
shares outstanding
Common stock .................. 4,033 4,054 4,033 4,051
------ ------ ------ ------
Basic Earnings per Share ........ $ 0.25 $ 0.16 $ 0.49 $ 0.31
====== ====== ====== ======
(b) Computation of Diluted
Earnings per Share:
Weighted average common
equivalent shares outstanding
Common stock .................. 4,033 4,054 4,033 4,051
Common stock equivalents:
Warrants (1) ................ 54 69 49 68
Options (2) ................. 125 267 85 257
------ ------ ------ ------
Weighted average common and
common equivalent shares
outstanding ..................... 4,212 4,390 4,167 4,376
====== ====== ====== ======
Diluted Earnings per Share ..... $ 0.24 $ 0.15 $ 0.47 $ 0.29
====== ====== ====== ======
</TABLE>
(1) Warrants issued 5/94 for 100,000 shares, less shares reacquired under the
treasury stock method.
(2) Options granted 11/94 through 9/97, less shares reacquired under the
treasury stock method.
17
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUN-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 4,023
<SECURITIES> 0
<RECEIVABLES> 18,167
<ALLOWANCES> 0
<INVENTORY> 28,851
<CURRENT-ASSETS> 53,191
<PP&E> 11,412
<DEPRECIATION> 5,661
<TOTAL-ASSETS> 59,037
<CURRENT-LIABILITIES> 17,067
<BONDS> 0
0
0
<COMMON> 31,713
<OTHER-SE> 94
<TOTAL-LIABILITY-AND-EQUITY> 59,037
<SALES> 28,876
<TOTAL-REVENUES> 29,343
<CGS> 17,394
<TOTAL-COSTS> 17,813
<OTHER-EXPENSES> 41
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 576
<INCOME-PRETAX> 0
<INCOME-TAX> 687
<INCOME-CONTINUING> 1,963
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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