NORWOOD, Mass., May 20, 2008 (PRIME NEWSWIRE) -- LTX Corporation (Nasdaq:LTXX), a leading provider of semiconductor test solutions, today announced financial results for its third quarter ended April 30, 2008.
Sales for the quarter were $39,320,000, up 27% from prior quarter sales of $31,022,000. Net income for the quarter was $2,172,000, or $0.03 per share on a GAAP basis. In the third quarter of fiscal year 2007, sales were $33,014,000 and the net loss was $(7,991,000), or $(0.13) per share on a GAAP basis. Total incoming orders for the third quarter of fiscal year 2008 were $36 million, yielding a book-to-bill ratio of 0.91 to 1.
Dave Tacelli, chief executive officer and president, commented, "Last quarter we commented on an expanding customer base for our X-Series products and how we expected those new customers to make the transition from engineering development to volume production. As expected, we started to see the positive effects of this transition in our third quarter with revenue at the high end of our guidance and a return to profitability. While we continue to grow our opportunities with our number one account, our plan of diversifying the customer base is on track and we expect further expansion of new customers into fiscal year 2009."
Among LTX's accomplishments for the third fiscal quarter were the following:
* For the first time in many years, a different customer took the top spot in driving total revenue for the quarter through both direct purchases and purchases by a subcontractor to support that customer, * Revenue grew 27% sequentially, leading a return to profitability, * We received the highly coveted Supplier Excellence Award from Texas Instruments for the second time in the last three years, * Won multiple RF wireless benchmarks during the quarter against both mature and what has been described by our competitors as next generation RF products, * Made significant momentum in the RF wireless space, particularly with those customers focused on high performance RF test at the lowest cost.
FOURTH QUARTER FISCAL 2008 OUTLOOK
Revenue is expected to be in the range of $36 million to $40 million, with gross margin of approximately 51%. The earnings per share is projected to be in the range of $0.00 to $0.03 assuming 63 million fully diluted shares. The Company will conduct a conference call today, May 20, 2008, at 4:30 PM EDT to discuss this release. The call may be accessed via telephone by dialing 800.299.9086, passcode 70891429. The conference call will also be simulcast via the LTX web site (www.ltx.com). Audio replays of the call can be heard through June 12, 2008 via telephone by dialing 888.286.8010; passcode 38911773 or by visiting our web site at www.ltx.com.
"Safe Harbor" Statement: This press release contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that relate to prospective events or developments, including, without limitation, statements regarding our revenue, margin and earnings guidance, are deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions are intended to identify forward-looking statements. There are a number of important factors and risks that could cause actual results or events to differ materially from those indicated by these forward-looking statements. Such risks and factors include, but are not limited to, the risk of fluctuations in sales and operating results, risk related to the timely development of new products, options and software applications, as well as the other factors described under "Business Risks" in LTX's most recently filed annual report on Form 10-K and in our most recently filed quarterly report on Form 10-Q filed with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements.
ABOUT LTX
LTX Corporation (Nasdaq:LTXX) is a leading supplier of test solutions for the global semiconductor industry. LTX's X-Series, the industry's most comprehensive family of production-proven, compatible test systems, delivers a scalable solution that provides the right test performance and the right cost of test. Combined with LTX's industry-leading applications engineering and customer service teams, the X-Series enables companies to accelerate their time to market, optimize test economics and stay ahead of the technology curve. Additional information can be found at www.ltx.com.
LTX and Fusion are registered trademarks and enVision is a trademark of LTX Corporation. All other trademarks are the property of their respective owners.
LTX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
April 30, July 31,
2008 2007
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 46,370 $ 63,302
Marketable securities 24,135 35,236
Accounts receivable - trade, net 21,326 22,479
Accounts receivable - other 779 1,475
Inventories 23,373 27,102
Prepaid expenses and other current assets 3,045 3,783
-------- --------
Total current assets 119,028 153,377
Property and equipment, net 28,933 32,483
Goodwill 14,762 14,762
Other assets 489 500
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Total assets $163,212 $201,122
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 4,800 $ 29,322
Accounts payable 10,314 15,333
Deferred revenues and customer advances 1,816 1,838
Other accrued expenses 11,847 19,605
-------- --------
Total current liabilities 28,777 66,098
-------- --------
Long-term debt, net of current portion 14,000 17,900
Other long-term liabilities 4,141 4,016
Stockholders' equity 116,294 113,108
-------- --------
Total liabilities and stockholders' equity $163,212 $201,122
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LTX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Nine Months
Ended Ended
April 30, April 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales $ 39,320 $ 33,014 $ 99,976 $ 117,525
Cost of sales 18,903 18,000 50,276 61,333
Inventory related
provision -- 4,175 -- 4,175
--------- --------- --------- ---------
Gross profit 20,417 10,839 49,700 52,017
Engineering and product
development expenses 11,794 12,203 34,776 38,058
Selling, general and
administrative expenses 6,611 6,778 20,044 20,276
Reorganization -- -- -- (377)
--------- --------- --------- ---------
Income (loss) from
operations (Note 1) 2,012 (8,142) (5,120) (5,940)
Interest income (expense),
net 194 151 745 (540)
--------- --------- --------- ---------
Net income (loss) before
provision (benefit) for
taxes 2,206 $ (7,991) (4,375) (6,480)
Provision (benefit) for
taxes 34 $ -- (3,145) --
--------- --------- --------- ---------
Net income (loss) $ 2,172 $ (7,991) $ (1,230) $ (6,480)
========= ========= ========= =========
Net income (loss) per
share:
Basic $ 0.03 $ (0.13) $ (0.02) $ (0.10)
Diluted $ 0.03 $ (0.13) $ (0.02) $ (0.10)
Weighted average shares
outstanding:
Basic 62,678 62,147 62,552 62,065
Diluted 62,773 62,147 62,552 62,065
Note 1: The following table presents stock-based compensation
expense included in the Company's unaudited consolidated statements
of operations (in thousands):
Three Months Nine Months
Ended Ended
April 30, April 30,
--------------- ---------------
2008 2007 2008 2007
------ ------ ------ ------
Cost of sales $ 27 $ 25 $ 90 $ 82
Engineering and product
development expenses 337 242 1,053 836
Selling, general and administrative
expenses 737 587 2,408 2,217
------ ------ ------ ------
Total stock-based compensation
expense $1,101 $ 854 $3,551 $3,135
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