INFICON Announces Fourth Quarter 2001 Results; Company Remains Profitable and Cash Flow Positive...

Business Editors

SYRACUSE, N.Y. & ZURICH, Switzerland--(BUSINESS WIRE)--Feb. 19, 2002

INFICON Holding AG (SWX Swiss Exchange and NASDAQ: IFCN), a leading manufacturer of vacuum instrumentation and critical sensor technologies for high growth segments of the semiconductor

Revenues for the fourth quarter of 2001 were $27.0 million compared to $45.1 million for the fourth quarter of last year. The Semiconductor Vacuum Instrumentation revenues were $5.6 million in the fourth quarter of 2001 versus $17.0 million in the same quarter of 2000. The General Vacuum Instrumentation revenues for the fourth quarter of 2001 were $21.4 million compared to $28.1 million in the fourth quarter of 2000. General Vacuum Instrumentation revenues for the fourth quarter of 2001 include $2.6 million from HAPSITE, which the company acquired at the beginning of November.

Operating income for the fourth quarter of 2001 was $349,000 compared to $8.2 million for the same quarter of 2000. Net income for the quarter was $104,000, ($0.04 per share -- $0.00 per ADS), compared to $5.3 million ($2.42 per share -- $0.24 per ADS) last year. The company ended the quarter with $33.8 million in cash and cash equivalents.

Revenues for the fiscal year ended December 31, 2001 were $144.1 million compared to revenues of $170.0 million in 2000. Annual operating income was $13.3 million compared to $33.8 million in 2000. Net income was $10.0 million ($4.30 per share -- $0.43 per ADS), compared to $22.9 million ($11.21 per share -- $1.12 per ADS) last year.

"For 2001, we are proud that INFICON reported positive operating income, net income and operating cash flow in each quarter despite the severe downturn of the semiconductor industry," said James Brissenden, chief executive officer of INFICON Holding AG. "Our ability to mitigate this down cycle is attributable to our flexible cost structure, to aggressive cost actions taken during the year, and to the cushion provided by our non-semiconductor businesses where we leverage our vacuum technology. Excluding certain one-time expense reductions of $1.9 million, SG&A expenses were reduced by 26% from the first quarter to the fourth quarter. Despite this cost cutting, our strategic investments in R&D increased by 7% over the same period. This allowed us to continue expanding our product offerings and gain market share."

"Looking at 2002, we are focused on areas where INFICON has developed the new products and software that intersect powerful semiconductor technology trends and create long term growth opportunities," continued Brissenden. "These new products address the industry's demand for process improvements and lower manufacturing costs. As the semiconductor industry moves to 300-mm production equipment, we expect to capitalize on our vacuum gauge design wins based on our unique ceramic and combination gauge technologies. Additionally, the increased process complexity in chip production is driving semiconductor manufacturers to adopt advanced process controls (APC) and early fault detection. Our FabGuard Sensor Integration and Analysis System is a critical part of this APC initiative."

Concluded Brissenden, "In 2002, we remain committed to our strategy of establishing INFICON as the undisputed technology leader and vacuum instrumentation supplier of choice for the semiconductor industry and selected high growth markets. We are poised for rapid growth when the market recovers."

Conference Call Information

INFICON Holding AG will hold a conference call to discuss its fourth quarter results on February 19, 2002 at 10:00 a.m. EST/4:00 p.m. CET. To access the conference call, please dial +1.212.748.2814 by 9:50 a.m. EST/3:50 p.m. CET. A live webcast of the conference call will also be available via the INFICON website at www.inficon.com. To access the replay, please dial (800) 633-8284, reservation 20207642. The replay will be available until 5:00 p.m.EST/11:00 p.m. CET on February 26th.

ABOUT INFICON

INFICON is a leading developer, manufacturer and supplier of vacuum instrumentation used for analysis, monitoring, measurement and control by manufacturers to improve the productivity of their production processes and the quality of their products. INFICON provides the semiconductor and semiconductor-related industries with products used in the manufacturing of semiconductor chips, flat screen televisions and monitors, computer disc drive components, and various electronic storage media, such as compact discs, digital video discs and floppy discs. The Company also sells products to the vacuum coatings, air conditioning/refrigeration, automotive, and industrial markets. Headquartered in Syracuse, New York, INFICON has manufacturing facilities in the United States and Europe and worldwide offices in the U.S., China, France, Germany, Japan, Korea, Liechtenstein, Singapore, Switzerland, Taiwan, and the United Kingdom. For more information about INFICON and its products, please visit the Company's web site at www.inficon.com.

This press release and oral statements or other written statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. Forward looking statements can be identified by the use of words such as "may", "believe", "will", "expect", "project", "assume", "estimate", "anticipate", "plan" or "continue". These forward-looking statements address, among other things, our strategic objectives, trends in vacuum technology and in the industries that employ vacuum instrumentation, such as the semiconductor and related industries and the anticipated effects of these trends on our business. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. Some of these risks and uncertainties are discussed in the Company's Annual Report on Form 20-F for fiscal 2000 and the Company's reports on Form 6-K filed with the Securities and Exchange Commission during 2001.

As a consequence, our current and anticipated plans and our future prospects, results of operations and financial condition may differ from those expressed in any forward-looking statements made by or on behalf of our company. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                          INFICON HOLDING AG
                   Consolidated Statements of Income
                 (In thousand, except per share data)

                          Three Months Ended    Twelve Months Ended
                             December 31,          December 31,
                            2001     2000       2001        2000

Net sales                 $27,019   $45,099   $144,113    $169,976
Cost of sales              16,091    21,916     78,398      83,231

Gross profit               10,928    23,183     65,715      86,745

Research and
 Development                3,119     2,700     12,431      11,037
Selling, general and
 Administrative             7,460    12,295     39,961      41,889
Income from operations        349     8,188     13,323      33,819
Interest expense
 (income), net                -89       -32       -483         292
Other expense
 (income), net              1,023       208      1,488       1,854

Income before
 income taxes                -585     8,012     12,318      31,673
Provision for income
 taxes                       -689     2,739      2,366       8,742
Net income                    104     5,273      9,952      22,931

Shares used to compute
net income per share
Basic                       2,315     2,181      2,315       2,046
Diluted                     2,315     2,181      2,315       2,046

Net income per share:
Basic                       $0.04     $2.42      $4.30      $11.21
Diluted                     $0.04     $2.42      $4.30      $11.21

Net income per ADS
(10 ADS : 1 Share)
Basic                       $0.00     $0.24      $0.43       $1.12
Diluted                     $0.00     $0.24      $0.43       $1.12



                          INFICON HOLDING AG
                      Consolidated Balance Sheets
                            (In thousands)

                                             December 31, December 31,
                                                  2001        2000
                                               (audited)    (audited)
ASSETS

Current Assets:
Cash and cash equivalents                       $ 33,788      $ 28,700
Accounts receivable, trade                        17,166        30,972
Accounts receivable, affiliates                      979         5,721
Inventories                                       21,729        22,218
Other current assets                               2,079         7,620
Total current assets                              75,741        95,231

Property and equipment, net                       16,020        13,941
Deferred tax asset                                40,596        40,777
Other assets                                       4,156         1,121

Total assets                                     136,513       151,070


LIABILITIES AND STOCKHOLDERS'
EQUITY

Current Liabilities:
Accounts payable, trade                            4,855         9,632
Accounts payable, affiliates                         409        18,354
Accrued liabilities                               10,641        10,341
Income taxes payable                               1,084         3,343
Total current liabilities                         16,989        41,670

Long term debt                                      --             869

Total liabilities                                 16,989        42,539

Stockholders' equity                             119,524       108,531

Total liabilities and
stockholders' equity                            $136,513      $151,070



                          INFICON Holding AG
                 Consolidated Statements of Cash Flow
                            (In thousands)
                                                  Twelve Months Ended
                                                    2001        2000
                                                  (audited)  (audited)
Cash flows from operating
 activities:
 Net income                                        $ 9,952     $22,931
 Adjustments to reconcile
  net income
  To net cash provided by
   operating activities:
  Depreciation and amortization
   of property, plant, and
   equipment                                         2,854       3,565
  Gain on disposal of property,
   plant and equipment                                 559        --
  Deferred taxes                                       181         625
  Changes in operating assets
   and liabilities:
   Trade accounts receivable                        17,521     -16,139
   Inventories                                       1,260      -2,535
   Other assets                                      3,172      -5,975
   Accounts payable                                -14,734      12,632
   Accrued liabilities                                 211       3,322
   Income taxes payable                                 86       2,345
   Other liabilities                                            -1,048
   Accrued pension benefits                           -879        -977
Net cash provided by operating
 activities                                         20,183      18,746

Cash flows from investing activities:
  Purchases of property, plant and
   equipment                                        -5,597      -4,853
  Proceeds from sale of property,
   plant and equipment                                 149
  Purchase of Hapsite Business                      -2,000
Net cash used in investing activities               -7,448      -4,853

Cash flows from financing activities:
  Payments on notes receivable from
   officers                                            795
  Payment to Unaxis for advances                    -6,679
  Payment on long-term debt                           -869
  Advances from Unaxis for
   reorganization                                               11,789
  Proceeds from IPO                                             34,459
  Payment to Unaxis from IPO proceeds                          -28,192
  Net advances to Unaxis                                        -5,138
Net cash provided by (used in)
 financing activities                               -6,753      12,918
Effect of exchange rate changes on
 cash and cash equivalents                            -894       1,399
Increase in cash and cash equivalents                5,088      28,210
Cash and cash equivalents
 at beginning of period                             28,700         490
Cash and cash equivalents at end
 of period                                         $33,788     $28,700