Semitool Announces Fiscal Second Quarter Results

KALISPELL, MT--(Marketwire - April 28, 2009) - Semitool, Inc. (NASDAQ: SMTL), a leading manufacturer of wafer processing equipment for the semiconductor industry, today reported financial results for its second fiscal quarter ended March 31, 2009.

Second quarter revenue was $27.2 million versus $63.0 million in the second quarter a year ago. Gross margin was 39 percent as compared with 48 percent in the comparable year-ago quarter. The Company reported a net loss of $4.6 million, or $0.14 per share, versus net income of $2.1 million, or $0.07 per share, in last year's second quarter.

Second quarter bookings were $24.6 million. Deferred revenue at the end of the quarter was $2.5 million and shipping backlog was $46.6 million, combining for a total revenue backlog of $49.1 million. Product shipments during the quarter were $22.9 million.

Larry Murphy, president and chief operating officer, said, "Given current market conditions, many device manufacturers are focusing on next-generation production technologies, and this drove much of our sales activity during the second quarter. We received technology buys in the areas of lead-free bumping, through-silicon via plating, and copper damascene plating for memory. We expect to see additional technology tool sales during the coming quarters, which should provide a basis for follow-on production orders by the beginning of next year."

Murphy added, "We have enhanced our leadership position in the copper memory market, and now count as customers 13 of the global fabs using copper at the production or development level. We also are involved in joint development projects with the top three memory manufacturers that are working on production at the sub 32 nanometer level."

"We continue to focus on costs as we await a rebound in customer capital spending," Murphy said. "In the meantime, we will work to effectively manage our improved cash position and maintain the strength of our balance sheet."

Cash, cash equivalents and marketable securities were $31.4 million at the end of the second quarter, up from $26.7 million at the end of the first quarter and $12.8 million at the end of fiscal 2008. Total current assets at March 31, 2009 were $173.0 million and working capital was $126.4 million. Total shareholders' equity was $166.6 million.

Through the first six months of fiscal 2009, revenue was $60.2 million versus revenue of $111.6 million in the same period a year ago. Net loss in the six-month period was $12.0 million, or $0.37 per share, versus net income of $1.4 million, or $0.04 per share, at the six-month mark last year.

Guidance

Management expects third quarter revenue to be in a range of $30 million to $35 million, and third quarter loss per share is expected to be between $0.04 and $0.08. Third quarter shipments are expected to be in a range of $27 million to $32 million. Due to limited longer-term visibility, management said it will not update full-year 2009 forecasts until the end of the third fiscal quarter.

Conference Call Information

Semitool will host an investor conference call and simultaneous webcast today at 5:00 p.m. Eastern. The call can be accessed by dialing 877-356-3834 (706-679-0445 for international callers) and entering the passcode 95484373. The webcast will be available via the Internet at www.semitool.com. Webcast participants should access the website at least 10 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days. An audio replay will be available until 11:59 p.m. Eastern on April 30, 2009, and can be accessed by calling 800-642-1687 (706-645-9291 for international callers) and entering the passcode 95484373.

About Semitool, Inc.

Semitool designs, manufactures and supports highly engineered, multi-chamber single-wafer and batch wet chemical processing equipment used in the fabrication of semiconductor devices. The company's primary suites of equipment include electrochemical deposition systems for electroplating copper, gold, solder and other metals; surface preparation systems for cleaning, stripping and etching silicon wafers; and wafer transport container cleaning systems. The company's equipment is used in semiconductor fabrication front-end and back-end processes, including wafer-level packaging and through-silicon via. The Company's products also are used in solar cell (PV) production applications.

Headquartered in Kalispell, Montana, Semitool maintains sales and support centers in the United States, Europe and Asia. The company's stock trades on Nasdaq under the symbol SMTL. For more information, please visit the company's website at www.semitool.com.

Semitool is a registered trademark of Semitool, Inc.

Safe Harbor Statement

The matters discussed in this news release include forward-looking statements, including statements related to (i) our expectation of additional technology tool sales during the coming quarters and follow-on production orders by the beginning of next year, (ii) our cost containment efforts and effective management of our cash position and maintenance of the strength of our balance sheet and (iii) the financial guidance for the third quarter of fiscal 2009. Also, bookings, deferred revenue, shipping backlog, revenue backlog and product shipments are not necessarily an indication of revenue in any future period. These forward-looking statements are based on management's assumptions, estimates and projections as of the date hereof and are subject to risks and uncertainties that are discussed in our filings with the U.S. Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended September 30, 2008 and subsequent filings with the SEC. Additional technology tool sales and follow-on orders can be adversely affected by a number of factors, including customers' preference for our tools and the tools' performance, and the world economic slowdown. In addition, many factors can adversely affect cost containment, cash position, balance sheet strength and forecasted financial performance, including cancellations and push-outs, delays in acceptance and payment for shipped tools, unanticipated costs, including restructuring costs in response to world economic conditions, the financial health of our customers and unexpected customer insolvencies, as well as a number of other risk factors described in our Form 10-K. Our business in general is subject to risks that can cause actual results to differ materially from those anticipated in our forward-looking statements, including, without limitation, demand being adversely affected by the cyclicality in the semiconductor industry, the company's ability to timely deliver and support its products, technological changes that affect our ability to compete, the risks associated with competing on a global basis and possible volatility in key markets. We assume no obligation to update forward-looking statements that become untrue because of subsequent events.

                              SEMITOOL, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (Amounts in Thousands, Except Per Share Amounts)


                                Three Months Ended     Six Months Ended
                                      March 31,           March 31,
                                   2009       2008       2009       2008
                                ---------  ---------- ---------  ----------

Net sales                       $  27,158  $   62,958 $  60,224  $  111,550
Cost of sales                      16,467      32,886    35,372      57,306
                                ---------  ---------- ---------  ----------
Gross profit                       10,691      30,072    24,852      54,244
                                ---------  ---------- ---------  ----------

Operating expenses:
   Selling, general and
    administrative                 10,715      20,070    29,178      38,766
   Research and development         6,343       6,947    14,177      13,926
   Downsizing                       1,531          --     2,412          --
                                ---------  ---------- ---------  ----------
      Total operating expenses     18,589      27,017    45,767      52,692
                                ---------  ---------- ---------  ----------

Income (loss) from operations      (7,898)      3,055   (20,915)      1,552
Other income (expense), net           (12)        459      (385)        906
                                ---------  ---------- ---------  ----------
Income (loss) before income tax    (7,910)      3,514   (21,300)      2,458
Income tax provision (benefit)     (3,305)      1,369    (9,274)      1,089
                                ---------  ---------- ---------  ----------

Net income (loss)               $  (4,605) $    2,145 $ (12,026) $    1,369
                                =========  ========== =========  ==========


Earnings (loss) per share:
   Basic                        $   (0.14) $     0.07 $   (0.37) $     0.04
                                =========  ========== =========  ==========
   Diluted                      $   (0.14) $     0.07 $   (0.37) $     0.04
                                =========  ========== =========  ==========


Weighted average common shares:
   Basic                           32,559      32,300    32,546      32,227
   Diluted                         32,559      32,481    32,546      32,445




                              SEMITOOL, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Amounts in Thousands)


                                                  March 31,  September 30,
                                                   2009          2008
                                                ------------  ------------
                       ASSETS

Current assets:
   Cash and cash equivalents                    $     31,252  $     12,441
   Marketable securities                                 140           380
   Trade receivables, net                             33,000        73,695
   Inventories                                        82,157        88,773
   Prepaid expenses and other current assets          26,482        19,018
                                                ------------  ------------
      Total current assets                           173,031       194,307
Property, plant and equipment, net                    46,332        49,909
Other assets, net                                      8,409         8,596
                                                ------------  ------------
         Total assets                           $    227,772  $    252,812
                                                ============  ============

       LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Trade accounts payable                       $      5,997  $     19,007
   Note payable to bank                               15,000         3,215
   Other current liabilities                          25,643        36,570
                                                ------------  ------------
      Total current liabilities                       46,640        58,792
Long-term liabilities                                 14,537        15,663
                                                ------------  ------------
         Total liabilities                            61,177        74,455
                                                ------------  ------------

Shareholders' equity:
   Common stock                                       87,870        87,293
   Retained earnings                                  79,470        91,496
   Accumulated other comprehensive loss                 (745)         (432)
                                                ------------  ------------
      Total shareholders' equity                     166,595       178,357
                                                ------------  ------------
         Total liabilities and shareholders'
          equity                                $    227,772  $    252,812
                                                ============  ============

Contact Information: Contacts: Semitool, Inc. Larry Viano Chief Financial Officer 406.752.2107 Pfeiffer High Investor Relations, Inc. Geoff High 303.393.7044 www.pfeifferhigh.com