MILPITAS, Calif., Feb. 25, 2010 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of focused, cost-optimized ATE solutions, today announced financial results for its second fiscal quarter ended January 31, 2010.
Sales for the quarter were $48,000,000, up 15% from the prior quarter sales of $41,850,000. Net income for the quarter was $813,000, or $0.01 per share on a GAAP basis. Excluding the net impact of special items totaling $216,000, and amortization of purchased intangible assets of $2,664,000, the net income for the quarter was $3,693,000, or $0.03 per share on a non-GAAP basis, compared to our original non-GAAP net income guidance of $0.00 to $0.02 earnings per share.
Dave Tacelli, chief executive officer and president, commented, "We returned to profitability and generated positive net cash in the second fiscal quarter, two important milestones for the Company. The business model is performing as expected, and our focus continues to be about growing top line revenue. We saw strong growth in several key market areas, indicating to us that the aggressive growth strategies we have in place are starting to pay off. Since hitting the industry trough last year, our product revenues have recovered faster than the competition resulting in market share gains."
Third Quarter Fiscal 2010 Outlook
For the quarter ending April 30, 2010, revenue is expected to be in the range of $53 million to $55 million, a sequential increase of approximately 10% to 15% from the 2010 second fiscal quarter. The non-GAAP net income is expected to be in the range of $0.04 to $0.05 per share, assuming 129 million shares outstanding. The non-GAAP net income guidance excludes amortization of purchased intangible assets of $2.7 million.
The Company will conduct a conference call today, February 25, 2010, at 10:00 AM EST to discuss this release. The conference call may be accessed via telephone by dialing 866.788.0540, passcode 99538822. The conference call will also be simulcast via the LTX-Credence web site (www.ltxc.com). Audio replays of the call can be heard through March 27, 2010 via telephone by dialing 888.286.8010, pass code 10770686 or by visiting our web site at www.ltxc.com.
Information About Non-GAAP Measures
LTX-Credence will supplement its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net income for the quarter and six months ended January 31, 2010 excludes the amortization of purchased intangible assets and other special items. Management finds the non-GAAP information to be useful for internal comparison to historical operating results as well as to the operating results of its competitors, and believes that this information would be 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
Statements in this release regarding guidance for LTX-Credence's third fiscal quarter, including the financial guidance on revenue and earnings or loss per share, 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 within the meaning of the United States securities laws, including the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward‑looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those stated or implied, including but not limited to: uncertain global economic and industry conditions, the duration and severity of the current economic climate, fluctuations in business and consumer spending; fluctuations in our sales and operating results; risks related to the timely development of new products, options and software applications, as well as the other risks described in our filings with the U.S. Securities and Exchange Commission, including those included under the heading "Business Risks" in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2009. LTX-Credence disclaims any intention or obligation to update any forward‑looking statements as a result of developments occurring after the date of this press release.
About LTX-Credence Corporation
LTX-Credence is a global provider of focused, cost-optimized ATE solutions designed to enable customers to implement best-in-class test strategies to maximize their profitability. LTX-Credence addresses the broad, divergent test requirements of the wireless, computing, automotive and entertainment market segments, offering a comprehensive portfolio of technologies, the largest installed base in the Asia-Pacific region, and a global network of strategically deployed applications and support resources. Additional information can be found at www.ltxc.com.
LTX-Credence and LTXC are trademarks of LTX-Credence Corporation.
All other trademarks are the property of their respective owners.
| LTX-Credence Corporation | |||
| Consolidated Balance Sheets | |||
| (in thousands) | |||
| (unaudited) | |||
|
January 31, 2010 |
July 31, 2009 |
||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | $ 82,908 | $ 86,488 | |
| Marketable securities | 701 | 9,152 | |
| Accounts receivable - trade, net | 32,915 | 23,578 | |
| Accounts receivable - other, net | 1,470 | 1,374 | |
| Inventories, net | 29,833 | 35,339 | |
| Prepaid expenses and other current assets | 8,285 | 12,163 | |
| Total current assets | 156,112 | 168,094 | |
| Property and equipment, net | 32,377 | 38,301 | |
| Intangible assets, net | 17,605 | 22,933 | |
| Goodwill | 43,030 | 43,030 | |
| Other assets | 1,313 | 2,811 | |
| Total assets | $ 250,437 | $ 275,169 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities | |||
| Current portion of long-term debt | $ 40,881 | $ 53,120 | |
| Accounts payable | 13,677 | 18,551 | |
| Other accrued expenses | 30,154 | 41,827 | |
| Deferred revenues and customer advances | 11,882 | 7,373 | |
| Total current liabilities | 96,594 | 120,871 | |
| Long-term debt, net of current portion | 31,250 | 32,610 | |
| Other long-term liabilities | 16,258 | 16,284 | |
| Stockholders' equity | 106,335 | 105,404 | |
| Total liabilities and stockholders' equity | $ 250,437 | $ 275,169 | |
| LTX-Credence Corporation | |||||
| Consolidated Statements of Operations | |||||
| (in thousands, except earnings per share data) | |||||
| (unaudited) | |||||
| Three Months Ended | Six Months Ended | ||||
| January 31, | January 31, | ||||
| 2010 | 2009 | 2010 | 2009 | ||
| Net sales | $ 48,000 | $ 30,401 | $ 89,850 | $ 77,534 | |
| Cost of sales | 22,038 | 23,754 | 43,682 | 50,080 | |
| Inventory-related provision | -- | 5,629 | -- | 19,311 | |
| Gross profit | 25,962 | 1,018 | 46,168 | 8,143 | |
| Engineering and product development expenses | 12,000 | 21,705 | 23,841 | 42,173 | |
| Selling, general, and administrative expenses | 9,240 | 15,001 | 17,880 | 29,382 | |
| Impairment of property and equipment and consignments | -- | 779 | -- | 5,799 | |
| Amortization of purchased intangible assets | 2,664 | 4,446 | 5,328 | 7,410 | |
| Acquired in-process research and development | -- | -- | -- | 6,200 | |
| Restructuring | 816 | 14,667 | 1,239 | 18,530 | |
| Income (loss) from operations | 1,242 | (55,580) | (2,120) | (101,351) | |
| Other income (expense), net | (205) | 1,099 | 11 | 2,093 | |
| Income (loss) before provision for income taxes | 1,037 | (54,481) | (2,109) | (99,258) | |
| Provision for income taxes | 224 | 65 | 271 | 638 | |
| Net income (loss) | $ 813 | $ (54,546) | $ (2,380) | $ (99,896) | |
| Net income (loss) per share: | |||||
| Basic | $ 0.01 | $ (0.43) | $ (0.02) | $ (0.85) | |
| Diluted | $ 0.01 | $ (0.43) | $ (0.02) | $ (0.85) | |
| Weighted average shares outstanding: | |||||
| Basic | 128,536 | 126,918 | 128,049 | 116,981 | |
| Diluted | 130,133 | 126,918 | 128,049 | 116,981 | |
| LTX-Credence Corporation | ||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income | ||||
| (In thousands, except per share amounts) | ||||
| (unaudited) | ||||
| Basic and | Basic and | |||
| Three Months | Diluted | Six Months | Diluted | |
| Ended | Earnings | Ended | Earnings | |
| January 31, 2010 | Per Share | January 31, 2010 | Per Share | |
| GAAP net income (loss) | $ 813 | $ 0.01 | $ (2,380) | $ (0.02) |
| Amortization of purchased intangible assets | 2,664 | 0.02 | 5,328 | 0.04 |
| Restructuring | 816 | 0.01 | 1,239 | 0.01 |
| Recovery of previously written off accounts receivable | (600) | (0.01) | (600) | (0.01) |
| Non-GAAP net income | $ 3,693 | $ 0.03 | $ 3,587 | $ 0.02 |
| Weighted average outstanding shares: | ||||
| Basic | 128,536 | 128,049 | ||
| Diluted | 130,133 | 128,049 | ||