FLANDERS, N.J., Jan. 29, 2001 (PRIMEZONE) -- Rudolph Technologies, Inc. (Nasdaq:RTEC) today is reporting fourth quarter and year-end results, which include the Company's transition to the new accounting method required by the Securities and Exchange Commission Staff Accounting Bulletin No. 101 (SAB 101).
Using the previous accounting policy, total revenue for the fourth quarter of 2000 was $28.6 million, a 122% increase over the fourth quarter of 1999 and a 16.0% sequential increase. Gross margin in the fourth quarter was 54%, compared to 52% in the year-ago period and 53% in the previous quarter. Fourth quarter 2000 pro forma net income available to common shareholders was $5.5 million, or $0.35 per diluted share, compared to 1999 fourth quarter pro forma net income available to common shareholders of $1.7 million, or $0.13 per diluted share and pro forma net income of $4.6 million, or $0.29 per diluted share in the 2000 third quarter. Information presented on a pro forma basis excludes certain tax adjustments and non-recurring items, which had the effect of increasing fourth quarter 1999 and third and fourth quarter 2000 net income available to common shareholders by $0.9, $1.7 and $3.1 million, respectively.
For the year ended December 31, 2000, total revenue was $90.2 million, an increase of 137% over 1999 total revenue of $38.1 million. Pro forma net income available to common shareholders was $16.7 million, or $1.06 per diluted share in 2000, compared to a pro forma net income available to common shareholders of $1.4 million, or $0.14 per diluted share in 1999. Ending backlog was a record $48.5 million, and the book-to-bill ratio was 1.36 to 1 for the year.
"Rudolph's performance in 2000 reflects strong sales growth across our entire product line and across all geographies," said Paul F. McLaughlin, Chairman and Chief Executive Officer. "With growth exceeding 135% for the year, we were above the industry's 2000 growth rate by over 50%. Results for the quarter and year leave no question that our products are meeting current and emerging market demands, particularly those at the copper and 300mm technology transitions. As we proceed to our next stage of product evolution with the tools we are developing for introduction during 2001, we are confident that we will experience continued success in anticipating and addressing the trends that are driving our industry."
In the fourth quarter, the Company adopted the new accounting policy as outlined in the Securities and Exchange Commission Staff Accounting Bulletin No. 101. SAB 101 requires the Company to defer, in certain situations, a portion of sales revenue until the system is installed and customer acceptance has been obtained. Utilizing the new revenue recognition policy, our fourth quarter 2000 revenue increases to $28.9 million and pro forma net income available to common shareholders increases to $5.7 million, or $0.36 per diluted share. For the year ended December 31, 2000, total revenue is $88.1 million, a decrease of $2.1 million from our previous accounting policy. Pro forma net income available to common shareholders is $13.9 million, or $0.88 per diluted share using the SAB 101 accounting methodology. The attached statement of operations details the impact of both the previous and new SAB 101 accounting methods.
Highlights of the Quarter
-- Company completes 100th MetaPULSE(r) metal film metrology system
sale. A top ten European based semiconductor manufacturer placed
a follow-on order with Rudolph for its industry-leading 200mm
copper film measurement tool. MetaPULSE 200XCu meets the
stringent requirements of high-volume manufacturing of 0.18 and
0.13 micron generation devices with copper interconnect. Of the
MetaPULSE systems sold to date, nearly two thirds were bought
for characterization of copper and related advanced opaque
film processes. Additionally, all of the world's top ten
semiconductor manufacturers have now purchased MetaPULSE Tools.
-- New customer support, service, and technical training center
opens. Rudolph opened its new 8,000-square foot facility, which
features a new simulation center with a full complement of
Rudolph products. Also included are larger classrooms to
accommodate growing customer demand. When the center opened in
December, customer training sessions already were booked through
the second quarter of 2001. The opening coincides with the
launch of the Company's new customer support telephone hotline
and extended customer support operation hours.
Selected Highlights of the Year
-- For the sixth consecutive year, Rudolph was voted number one in
customer satisfaction among thin-film metrology suppliers by
customers worldwide in the VLSI Research, Inc. 2000 10 BEST
survey.
-- Rudolph joined the Russell 3000(c) Index.
-- The Company was included in the Semiconductor Equipment and
Materials International (SEMI) Index.
Business Outlook
The Company expects revenue for the first quarter of 2001 to be up approximately 4% to 8% from fourth quarter 2000. Maintaining this growth rate throughout 2001 will result in the Company growing well in excess of current industry forecasts.
Management anticipates that gross margin percentage for the first quarter will remain approximately 53% to 54%. In the short term, the Company's gross margin percentage varies primarily with revenue levels, product mix, as well as the volume of sales from Japan. Rudolph sells its systems through a distributor in Japan, at lower margins, since the distributor takes on the responsibility for all installation and service of the systems.
Expenses (R&D and SG&A) in the first quarter of 2001 are expected to be 27% to 29% as a percent of revenue from the fourth quarter level of approximately 26%, primarily due to proportionately higher spending on R&D initiatives, royalties for licensed technology, and general corporate expenses. Expenses are dependent in part on the level of revenue. For 2001, management currently anticipates that expenses will be approximately 26% to 29% of revenues.
The Company expects the overall tax rate for 2001 to be between 36% to 38%.
Capital spending for 2001 is expected to be approximately $2.5 million, which includes planned facility initiatives as well as additional corporate programs.
"We continue to experience strong demand for our metal and transparent product lines due in part to two factors," McLaughlin added. "First, a large part of our sales tend to be related to technology transitions rather than to capacity purchases. Second, our strategy has been to target large global customers, who tend to continue to invest throughout the entire cycle. These factors thus far have helped insulate us from the current market environment. However, our outlook for the 2001 first quarter is necessarily tempered by uncertainties within the semiconductor industry as a whole. While we remain positive about our prospects overall, we recognize that a number of variables could have an impact on our results for the quarter, and we are making every effort to factor those variables into our projections."
Rudolph Technologies is a worldwide leader in the design, development, manufacture and support of high-performance process control metrology systems used by semiconductor device manufacturers. The Company provides a full-fab solution through its families of proprietary systems for both transparent and opaque thin film measurement. Rudolph's product development has successfully anticipated and addressed many emerging trends that are driving the semiconductor industry's growth. The Company's success in creating complementary metrology applications through aggressive research and development is key to Rudolph's strategy for continued technological and market leadership.
This press release contains forward-looking statements, including statements related to expected product shipment schedules, revenue expectations, gross margin, expense expectations, anticipated capital spending, and expected tax rates for 2001. Actual results may differ materially from those projected due to a number of risks, including changes in customer demands for our products, the timing, cancellation or delay of customer orders and shipments and the timing of revenue recognition of shipments, new product offerings from our competitors, changes in or an inability to execute Rudolph Technologies' business strategy, unanticipated manufacturing or supply problems, and changes in tax rules. Rudolph Technologies cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Rudolph Technologies' Form 10K filed for the year ended December 31, 1999. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Rudolph Technologies does not assume any obligation to update the forward-looking information contained in this press release.
RUDOLPH TECHNOLOGIES
BALANCE SHEETS
($000)
Without With
SAB 101 SAB 101
Dec. 31, Dec. 31, Dec. 31,
-----------------------------
2000 2000 1999
------- ------- -------
ASSETS
Current assets
Cash $29,736 $29,736 $35,076
Accounts receivable, net 27,132 27,132 9,472
Inventories 23,773 23,773 11,403
Prepaid and other assets 2,792 4,527 525
------- ------- -------
Total current assets
83,433 85,168 56,476
Net property, plant
and equipment 3,824 3,824 3,106
Intangibles 2,520 2,520 2,859
Deferred taxes 6,628 6,628 2,312
Other assets 414 414 194
======= ======= =======
Total assets $96,819 $98,554 $64,947
======= ======= =======
LIABILITIES AND
STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable
and accrued liabilities $ 7,062 $ 7,062 $ 4,536
Other current liabilities
3,434 7,919 2,723
------- ------- -------
Total current liabilities 10,496 14,981 7,259
Other long-term liabilities 65 65 78
------- ------- -------
Total liabilities 10,561 15,046 7,337
Stockholder's equity 86,258 83,508 57,610
======= ======= =======
Total liabilities &
stockholder's equity $96,819 $98,554 $64,947
======= ======= =======
RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Three Months Ended
-----------------------------------------
Without With
SAB 101 SAB 101
Dec. 31, Dec. 31, Dec. 31,
2000 2000 1999
----------- ----------- -----------
Revenues $ 28,564 $ 28,924 $ 12,875
Cost of revenues 13,140 13,140 6,186
----------- ----------- -----------
Gross profit 15,424 15,784 6,689
Operating Expenses
Research & development 2,931 2,931 1,407
Selling, general &
administrative 4,418 4,418 3,827
Amortization 85 85 239
----------- ----------- -----------
Operating income 7,990 8,350 1,216
Interest (income) expense
and other, net (552) (552) 420
Provision (benefit) for
income taxes (54) 75 (2,300)
Extraordinary item
(net of tax of $5) -- -- 427
----------- ----------- -----------
Net income 8,596 8,827 2,669
Preferred stock dividends -- -- 84
=========== =========== ===========
Net income available to
common shareholders $ 8,596 $ 8,827 $ 2,585
=========== =========== ===========
Net income per share:
Basic $ 0.58 $ 0.59 $ 0.24
Diluted $ 0.55 $ 0.56 $ 0.20
Pro forma net income
per share (a):
Basic $ 0.37 $ 0.38 $ 0.16
Diluted $ 0.35 $ 0.36 $ 0.13
Weighted avg. shares
outstanding:
Basic 14,859,795 14,859,795 10,892,503
Diluted 15,760,343 15,760,343 12,694,442
Note: Pro forma net income per share excludes certain tax adjustments
recorded in the three months ended December 31, 2000 of $3.1 million.
Pro forma net income for the three months ended December 31, 1999,
excludes certain tax adjustments and non-recurring items of $0.9
million.
RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Twelve Months Ended
-----------------------------------------
Without With
SAB 101 SAB 101
Dec. 31, Dec. 31, Dec. 31,
2000 2000 1999
-----------------------------------------
Revenues $ 90,210 $ 88,107 $ 38,095
Cost of revenues 41,854 41,854 18,301
----------- ----------- -----------
Gross profit 48,356 46,253 19,794
Operating Expenses
Research & development 9,022 9,022 5,003
Selling, general &
administrative 14,463 14,463 9,588
Amortization 339 339 436
----------- ----------- -----------
Operating income 24,532 22,429 4,767
Interest (income) expense
and other, net (2,174) (2,174) 3,680
Provision (benefit) for
income taxes 380 (431) (2,179)
Extraordinary item
(net of tax of $5) -- -- 427
Cumulative effect on
prior years of the
application of SAB 101,
net of tax of $924 -- 1,458 --
----------- ----------- -----------
Net income 26,326 23,576 2,839
Preferred stock dividends -- -- 508
----------- ----------- -----------
to common shareholders $ 26,326 $ 23,576 $ 2,331
=========== =========== ===========
Net income per share:
Basic $ 1.78 $ 1.60 $ 0.30
Diluted $ 1.67 $ 1.49 $ 0.22
Pro forma net income
per share (1):
Basic $ 1.13 $ 0.95 $ 0.18
Diluted $ 1.06 $ 0.88 $ 0.14
Weighted avg. shares
outstanding:
Basic 14,773,295 14,773,295 7,880,622
Diluted 15,805,188 15,805,188 10,431,477
Note: Pro forma net income per share excludes certain tax adjustments
recorded in the year ended December 31, 2000 of $9.6 million. Pro
forma net income for the year ended December 31, 1999, excludes
certain tax adjustments and non-recurring items of $0.9 million.