October 5, 2001 – Chandler, AZ – SpeedFam-IPEC and MEMC Electronic Materials have settled all litigation between the parties. In connection with this settlement, SpeedFam-IPEC has agreed to pay MEMC $1.8 million.
Because this settlement agreement was reached prior to SpeedFam-IPEC filing its Form 10-Q for the first fiscal quarter of 2002, the company will record the impact of this settlement agreement in its first-quarter results. Accordingly, the company has recorded a $1.8 million adjustment to operating expenses, resulting in an adjusted net loss of $17 million, or $0.56 per share, for the first quarter ended September 1, 2001. Exclusive of this adjustment and a cumulative effect adjustment for the adoption of FAS 142, the net loss for the quarter was $12.6 million, or $0.42 per share.
“Although we vigorously defended our best interests in these proceedings, we concluded that the best course of action for SpeedFam-IPEC and our customers was to settle this litigation,” said Richard Faubert, president and CEO of SpeedFam-IPEC. “During this critical phase in the industry cycle, it is imperative that we maintain our focus on placing the Momentum system at leading device manufacturers worldwide in order to position the company for success at the next industry upturn.”