FLANDERS, N.J., April 24, 2000 (PRIMEZONE) -- Rudolph Technologies, Inc. (Nasdaq:RTEC) today reported results for the first quarter ended March 31, 2000.
Total revenue for the first quarter of 2000 was $17.0 million, a 160% increase over the comparable quarter of 1999 and a 32% sequential increase. Gross margin increased to 53%, up from 50% in the year-ago period and 52% in the fourth quarter of 1999, as a result of several positive developments. These include the Company's higher revenue, which covers a larger portion of fixed costs; cycle time reduction initiatives; and outsourcing, which combined to improve manufacturing efficiencies. The shipments in the quarter included Rudolph's SpectraLASER(r) and MatrixMetrology(tm) lines of transparent tools, which are enjoying increased acceptance, and multiple units of the Company's new MetaPULSE(r)copper tools.
The first quarter net income available to common shareholders was $2.9 million, or $0.18 per diluted share, compared to a 1999 first quarter net loss available to common shareholders of $671 thousand, or ($0.10) per diluted share.
"Our strong order, sales and earnings growth was driven during the quarter by high demand for our metal and transparent products, particularly the rising demand for our new copper and 300mm offerings. This across the board sales success validates our confidence in our ability to deliver comprehensive solutions that address the industry's evolving process control needs," commented Paul F. McLaughlin, Chairman and Chief Executive Officer.
Rudolph Technology
"We are especially pleased with the strength of our order activity from our foundry customers in Asia. In addition, the pace of orders in Japan has increased earlier than we had anticipated and ahead of the overall economic recovery there. The robust demand that we are experiencing across all geographies reflects semiconductor device manufacturers' continued recovery and accelerated expansion plans.
Device manufacturers now are firming up their capital spending plans in copper and 300mm, just as we anticipated, and Rudolph is there today with the products they need to move forward. Looking ahead and based on our current order rates, Rudolph anticipates being able to outpace the industry's expected growth rate in 2000."
Research and development expenses in the first quarter of 2000 were $1.7 million, compared to $1.0 million in the prior year period and $1.4 million in the previous quarter. The increase in comparison to both periods was attributable primarily to personnel related costs and materials for new product development. The Company anticipates that R&D spending will continue to increase slightly in the coming quarters as it continues to develop leading edge metrology solutions that anticipate customers' future needs.
Selling, general and administrative expenses for the first quarter of 2000 were $3.0 million, compared to $1.6 million in the prior year period and $3.8 million in the 1999 fourth quarter after a $1.0 million non-recurring charge. The year-over-year increase is due primarily to increased commissions, royalties on licensed technology, costs associated with the Company's direct sales force in Europe, which was established in the third quarter of 1999, and higher compensation expense related to corporate incentive plans. Excluding the non-recurring charge, selling, general and administrative expenses increased $200 thousand over the previous quarter.
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 anticipated growth rates, manufacturing capacity and tax rate. Actual results may differ materially from those projected due to a number of risks, including changes in customer demands for our products, new product offerings from our competitors, changes in or an inability to execute Rudolph Technologies' business strategy, unanticipated manufacturing or supply problems, or changes in tax requirements. 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)
March 31, December 31,
2000 1999
ASSETS
Current assets
Cash $ 32,828 $ 35,076
Accounts receivable, net 14,628 9,472
Inventories 12,806 11,403
Prepaid and other assets 956 525
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Total current assets 61,218 56,476
Net property, plant and equipment 3,152 3,106
Intangibles 2,774 2,859
Deferred taxes - 2,312
Other assets 203 194
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Total assets $ 67,347 $ 64,947
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Liabilities And Stockholder's Equity
Current liabilities
Accounts payable and accrued liabilities $ 4,505 $ 4,536
Other current liabilities 2,316 2,723
--------- ---------
Total current liabilities 6,821 7,259
Other long-term liabilities 65 78
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Total liabilities 6,886 7,337
Stockholder's equity 60,461 57,610
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Total liabilities & stockholder's equity $ 67,347 4,947
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RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Three Months Ended
March 31, March 31,
2000 1999
Revenues $ 16,993 $ 6,532
Cost of revenues 7,968 3,229
Gross profit 9,025 3,303
Operating Expenses
Research & development 1,741 1,043
Selling, general & administrative 3,077 1,604
Amortization 85 66
Operating income 4,122 590
Interest expense/(income) (498) 1,038
Other income (1) (3)
Provision for income taxes 1,770 93
Net income/(loss) 2,851 (538)
Preferred stock dividends - 133
Net income/(loss) available
to common shareholders $ 2,851 $ (671)
Net income/(loss) per share:
Basic $ 0.19 $ (0.10)
Diluted $ 0.18 $ (0.10)
Weighted avg. shares outstanding (1):
Basic 14,684,706 6,732,394
Diluted 15,864,997 6,732,394
(1) The increase in weighted average shares outstanding is the result
of the Company's IPO.
CONTACT: Paul F. McLaughlin
Chairman and CEO
Rudolph Technologies, Inc.
973-448-4470
Michele Katz/Randy Hecht/
Elric Martinez
Press: Rob Ingram
Morgen-Walke Associates, Inc.
Tel: 212-850-5600