First Fiscal Quarter Notables:
- Business environment slowed more than expected
- First quarter financial results outperform model
- Positive outlook for calendar 2016, with multiple growth opportunities
NORWOOD, Mass., Nov. 24, 2015 (GLOBE NEWSWIRE) -- Xcerra Corporation (NASDAQ:XCRA), today announced financial results for its first fiscal quarter ended October 31, 2015.
Net sales for the quarter were $78,401,000 compared to the prior quarter's sales of $102,072,000. GAAP net loss for the quarter was ($1,666,000), or ($0.03) per share. Excluding the loss from discontinued operations of $788,000, restructuring charges of $133,000, and amortization of purchased intangible assets of $414,000, non-GAAP net loss for the quarter was ($331,000), or ($0.01) per diluted share.
Dave Tacelli, president and chief executive officer, commented, "The business environment softened in most business segments in which we compete. While sales slowed more than anticipated, we were close to break-even on a non-GAAP basis due to tight control of expenses, favorable currency impact, and better than modeled gross margin performance.
We see business conditions continuing to remain challenging through our fiscal second quarter, but overall, we expect calendar 2016 to be a growth year for the Company. Several factors contribute to this outlook including customer feedback, share gains in our core businesses, and expected revenues from new market opportunities. While we continue to keep tight control over expenses, our resources are deployed to aggressively compete and win the new business opportunities currently underway."
Second Quarter Fiscal 2016 Outlook
For the fiscal quarter ending January 31, 2016, net sales are expected to be in the range of $70 million to $75 million. Non-GAAP net loss for the quarter is expected to be in the range of ($0.13) to ($0.08) per share, assuming 54 million fully diluted shares outstanding. The non-GAAP net loss guidance excludes discontinued operations, and amortization of purchased intangible assets.
The Company will conduct a conference call today, November 24, 2015, at 10:00 AM EST to discuss this release. The conference call may be accessed via telephone by dialing 877.853.5334. The call will be simulcast via the Xcerra web site http://www.xcerra.com/events-presentations.html. Audio replays of the call can be heard through November 26, 2015 via telephone, by dialing 855.859.2056; conference ID number 22845439. A replay of the webcast can be accessed by visiting our web site 90 minutes following the conference call at http://www.xcerra.com/events-presentations.html.
Information About Non-GAAP Measures
Xcerra supplements its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net loss for the quarter ended October 31, 2015, excludes the amortization of purchased intangible assets, restructuring charges and loss from discontinued operations. Management believes these non-GAAP measures are useful for internal comparison to historical operating results as well as to the operating results of its competitors, and believes that this information is useful to investors for the same purposes. A reconciliation between the Company's GAAP and non-GAAP results is provided in the attached tables. Readers are reminded that non-GAAP information is merely a supplement to, and not a replacement for, GAAP financial measures.
Safe Harbor for Forward-Looking Statements
Any statements in this presentation about future expectations, plans and prospects for the Company, financial guidance on revenue, financial operating results (including net income or loss), and earnings or loss per share, continued customer adoption of recent product introductions, product developments, potential customer expansion and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the Company's use of the words "believes," "anticipates," "plans," "expects," "may," "will," "would," "should," "intends," "estimates," "seeks" or similar expressions, whether negative or affirmative. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, the fluctuations in the demand for semiconductor devices, the ability of the Company to win orders from customers for the testing and handling of their new generation semiconductor devices, the fluctuations in the demand of our customer's devices in the marketplace, the Company's ability to timely develop new products, options and software applications, the level of customer demand for such products, options and software applications, the Company's ability to meet acceptance requirements for newly developed products, the conditions affecting the markets in which we compete, the Company's ability to meet its debt service obligations under its existing credit arrangement with Silicon Valley Bank, as well as the other important factors as are described in the Company's filings with the U.S. Securities and Exchange Commission, including those included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2015. The Company disclaims any intention or obligation to update any forward-looking statements after the date of this presentation.
About Xcerra
Xcerra Corporation is comprised of four businesses in the semiconductor and electronics manufacturing test markets: atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence and Multitest. The combination of these businesses creates a company with a broad spectrum of semiconductor and PCB test expertise that drives innovative new products and services, and the ability to deliver to customers fully integrated semiconductor test cell solutions. The Company addresses the broad, divergent requirements of the mobility, industrial, automotive and consumer end markets, offering a comprehensive portfolio of solutions and technologies, and a global network of strategically deployed applications and support resources. Additional information can be found at www.xcerra.com or at each product group's website; www.atg-lm.com, www.ectinfo.com, www.ltxc.com and www.multitest.com
Xcerra is a trademark of Xcerra Corporation.
All other trademarks are the property of their respective owners.
| Xcerra Corporation | ||
| Consolidated Balance Sheets | ||
| (in thousands) | ||
| (unaudited) | ||
| ASSETS | October 31, 2015 | July 31, 2015 |
| Current assets | ||
| Cash and cash equivalents | $ 64,205 | $ 77,858 |
| Marketable securities | 59,124 | 60,593 |
| Accounts receivable - trade, net | 73,896 | 81,313 |
| Accounts receivable - other, net | 292 | 326 |
| Inventories, net | 62,387 | 60,593 |
| Prepaid expenses and other current assets | 8,344 | 8,393 |
| Assets held for sale | 10,713 | 10,454 |
| Total current assets | 278,961 | 299,530 |
| Property and equipment, net | 30,563 | 31,450 |
| Intangible assets, net | 10,226 | 10,640 |
| Goodwill | 43,850 | 43,850 |
| Other assets | 2,585 | 2,005 |
| Total assets | $ 366,185 | $ 387,475 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of long-term debt | $ 3,143 | $ 2,509 |
| Accounts payable | 20,518 | 27,492 |
| Other accrued expenses | 30,256 | 35,579 |
| Deferred revenues | 7,197 | 7,466 |
| Liabilities held for sale | 912 | 1,147 |
| Total current liabilities | 62,026 | 74,193 |
| Term Loan | 23,242 | 23,938 |
| Other long-term liabilities | 11,201 | 10,876 |
| Stockholders' equity | 269,716 | 278,468 |
| Total liabilities and stockholders' equity | $ 366,185 | $ 387,475 |
| Xcerra Corporation | ||
| Consolidated Statements of Operations | ||
| (in thousands, except earnings per share data) | ||
| (unaudited) | ||
| Three Months Ended | ||
| October 31, | ||
| 2015 | 2014 | |
| Net sales | $ 78,401 | $ 116,221 |
| Cost of sales | 46,269 | 63,022 |
| Gross profit | 32,132 | 53,199 |
| Engineering and product development expenses | 15,063 | 16,065 |
| Selling, general, and administrative expenses | 17,952 | 22,155 |
| Amortization of purchased intangible assets | 414 | 535 |
| Restructuring | 133 | 708 |
| Income (loss) from operations | (1,430) | 13,736 |
| Other income (expense), net | 1,463 | (480) |
| Income (loss) before provision for income taxes | 33 | 13,256 |
| Provision for income taxes | 911 | 763 |
| Income (loss) from continuing operations | (878) | 12,493 |
| Loss from discontinued operations, net of tax | (788) | (432) |
| Net income (loss) | $ (1,666) | $ 12,061 |
| Basic net income (loss) per share: | ||
| Net income (loss) from continuing operations | $ (0.02) | $ 0.24 |
| Net income (loss) from discontinued operations, net of tax | (0.01) | (0.01) |
| Basic net income (loss) per share | $ (0.03) | $ 0.24 |
| Diluted net income (loss) per share: | ||
| Net income (loss) from continuing operations | $ (0.02) | $ 0.24 |
| Net income (loss) from discontinued operations, net of tax | (0.01) | (0.01) |
| Diluted net income (loss) per share | $ (0.03) | $ 0.23 |
| Weighted-average common shares used in computing net income (loss) per share: | ||
| Basic | 54,490 | 51,128 |
| Diluted | 54,490 | 52,303 |
| Xcerra Corporation | |||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) | |||||
| (In thousands, except per share amounts) | |||||
| (unaudited) | |||||
|
Three Months |
Basic and Diluted |
Three Months |
Basic |
Diluted |
|
| Ended | Earnings | Ended | Earnings | Earnings | |
| October 31, 2015 | Per Share | October 31, 2014 | Per Share | Per Share | |
| GAAP net income (loss) | $ (1,666) | $ (0.03) | $ 12,061 | $ 0.24 | $ 0.23 |
| Loss from discontinued operations | 788 | 0.01 | 432 | 0.01 | 0.01 |
| Amortization of purchased intangible assets | 414 | 0.01 | 535 | 0.01 | 0.01 |
| Amortization of inventory step up for purchase accounting | -- | -- | 1,493 | 0.03 | 0.03 |
| Restructuring | 133 | 0.00 | 708 | 0.01 | 0.01 |
| Non-GAAP net income (loss) | $ (331) | $ (0.01) | $ 15,229 | $ 0.30 | $ 0.29 |
| Weighted average shares outstanding: | 54,490 | 51,128 | 52,303 | ||