Robotic Vision Systems, Inc. Reports Fourth Quarter and Full Year FY2001 Results

CANTON, Mass., Dec. 20 /PRNewswire/ --Robotic Vision Systems, Inc. (RVSI) (Nasdaq: ROBV) today reported results for its fourth quarter and fiscal year ended September 30, 2001.  For the three months ended September 30, 2001, revenues were $16,513,000 and, excluding unusual charges, the company had a net loss of $17,472,000, or $0.49 per share.  For the fiscal year ended September 30, 2001, RVSI had revenues of $107,845,000 and, excluding unusual charges, a net loss of $60,267,000, or $1.69 per share.

Inclusive of all unusual charges, RVSI's net loss for the three months ended September 30, 2001 was $44,965,000, or $1.25 per share.  For the fiscal year ended September 30, 2001, the company had a net loss of $104,373,000, or $2.93 per share.

These results compare to revenues of $59,162,000 and $223,193,000, net income of $955,000 and $10,722,000, and net income per share of $0.02 ($0.02 diluted) and $0.32 ($0.27 diluted), respectively, in RVSI's fourth quarter and full-year fiscal 2000.

'September 30 marked the end of our fiscal year, a year that has been one of precipitous decline for everyone in the semiconductor capital equipment business,' said Pat V. Costa, Chairman and Chief Executive Officer of RVSI. 'In one sense, RVSI has fared better than its peers: because of our Acuity CiMatrix Division, we have a broader base than just semi cap equipment.  Our bookings have actually held up a little better than would be predicted by the statistics provided by the Semiconductor Equipment and Materials Institute, and we have certainly done better than our immediate peers in semiconductor inspection.  However, the devastating drop in orders across the entire semiconductor equipment industry -- 91% from May 2000 to June 2001 for back- end equipment -- was unprecedented.  No downturn has ever been this severe.

'We have used the downturn to our advantage,' Mr. Costa said.  'We have increased our already substantial market share in semiconductor inspection and are pulling away from the competition in bumped wafer inspection.  In the past week we have been selected as 'best of breed' for 300mm wafer inspection by one of the world's largest and most technologically sophisticated microelectronics manufacturers.  At Acuity CiMatrix, we have broadened our customer base for both machine vision and Data Matrix applications.  And, since September 11, we have developed very promising applications for the use of Data Matrix in identification authentication.

'On Tuesday of this week, we reported the sale of our Material Handling business for $11.5 million in cash.  The sale of that business, our bank credit line, a second planned transaction involving another RVSI product line, and additional sources of cash on our balance sheet and through debt or equity financing, give us confidence that we will not only weather the balance of the semiconductor equipment industry downturn, but be positioned financially to ramp production and garner sales as the industry recovers in 2002.'

Future operating results

'RVSI has reduced its fixed expenses from a peak of nearly $30 million per quarter to a present $18.2 million,' Mr. Costa said.  'With the sale of our Material Handling business, those fixed expenses will decline even further, to just over $16 million, yielding a break-even rate of approximately $32 million of sales per quarter.  Despite these cost reductions, we have retained our key technology and staff, our market position, and our ability to respond quickly when the inevitable upturn comes.

'While current visibility is poor, we see our long-term future as very bright,' Mr. Costa said.  'Both of our businesses are built on solid technological bases with exceptionally large and robust growth potential. Despite the downturn, we have built a unique and powerful strategic position on both sides of our business.  The tremendous promise of these endeavors is undiminished, only postponed for a few quarters.'

About RVSI

Robotic Vision Systems, Inc. (RVSI) (NASDAQ: ROBV) has the most comprehensive line of machine vision systems available today. Headquartered in Canton, Massachusetts, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and media transfer equipment. Using leading-edge technology, RVSI joins vision-enabled process equipment, high- performance optics, lighting, and advanced hardware and software to assure product quality, identify and track parts, control manufacturing processes, and ultimately enhance profits for companies worldwide. Serving the semiconductor, electronics, aerospace, automotive, and pharmaceutical industries, RVSI holds approximately 100 patents in a broad range of technologies.

Forward Looking Statement

Except for the historical information herein, certain matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to: the historical cyclical nature of the semiconductor industry, risks in products and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timely development and release of new products, strategic suppliers and customers, the effect of the company's accounting policies and other risk factors detailed in the Company's most recent registration statement, annual report on Form 10-K and 10K/A, and other filings with the Securities and Exchange Commission.

Note: Investors can hear RVSI's analyst conference call live on www.ccbn.com at 4:45 p.m. EST; the call will be archived for thirty days.  A replay of this afternoon's call will also be available immediately after the conclusion of the call.  To hear that replay, call 402-220-0184 or log on to www.ccbn.com .