FLANDERS, N.J., Aug. 4, 2008 (PRIME NEWSWIRE) -- Rudolph Technologies, Inc. (Nasdaq:RTEC), a leading provider of process characterization equipment and software for both front-end and back-end inspection and metrology solutions, today announced financial results for the second quarter of 2008.
Recent highlights include: * Second quarter revenue of $38.4 million, up 3% quarter over quarter * Gross margins sequentially improve 500 basis points to 46% * EPS of $(0.06) includes acquisition-related charges totaling $(0.03) per share * Inventory and accounts receivable improvements contribute to $6 million increase in cash and marketable securities * Board authorizes stock repurchase program of up to 3 million shares
Discussing the second quarter results, Paul F. McLaughlin, Chairman and Chief Executive Officer commented, "We continue to operate in a challenging environment; however, we were able to exceed our revenue estimates. As preannounced, the strengthening of our back-end business, the early acceptance of some of our new products, and an acceleration of product sales resulting from our recent acquisitions all contributed to our revenue gain this quarter. We expect these positive drivers to continue, which in turn guides our forecast for sequential revenue growth in the 2008 third quarter. Operationally, we were pleased to see progress on gross margins despite our commitment to maintaining our field organization at near-cycle recovery levels. R&D spending continued at a rate that is not sustainable long term, but one which we believe will accelerate us out of the current downturn in the short term. Balance sheet initiatives are also beginning to yield as we strive to bring current assets more in line with Rudolph long term models after our recent acquisitions."
The Company's second quarter revenue totaled $38.4 million, a 3% increase compared to $37.2 million for the first quarter of 2008. During the second quarter, international sales represented approximately 74% of revenue while domestic sales accounted for 26%. In the 2008 first quarter, international sales represented approximately 85% of revenue and domestic sales accounted for 15%. Approximately 60% of the Company's second quarter tool revenue was from 300mm product sales.
Second quarter net loss was $2.0 million or $(0.06) per share and included the following items:
* Acquisition related cost, including integration costs, stay bonuses, and the sale of inventory written-up to fair value of $1.1 million or $0.03 per share; * A charge of $607 thousand or $0.01 per share for the acquired amortization related to recent acquisitions; * $841 thousand or $0.02 per share in stock-based compensation expense.
The Company reported net loss of $1.6 million, or $(0.05) per share for the 2008 first quarter.
Second quarter gross margin improved to 46%; however it was negatively impacted by the acquisition related costs noted above, which reduced the gross margin by 2%. The 2008 first quarter gross margin was 41%.
Research and development (R&D) expenses for the second quarter totaled $8.4 million, compared to $7.8 million in the first quarter of 2008. As a percentage of revenue, R&D was 22% of revenue in the 2008 second quarter and 21% in the 2008 first quarter. The quarter over quarter dollar increase in R&D is primarily due to increased compensation costs, new product costs associated with Semicon West, and engineering integration costs. The Company anticipates that R&D expense in the third quarter of 2008 will be approximately 20% to 21% of revenue.
Selling, general and administrative (S,G&A) expenses totaled $10.5 million in the 2008 second quarter compared to $9.1 million in the first quarter of 2008. S,G&A was 27% of revenue in second quarter of 2008 and 24% in the first quarter of 2008. The quarter over quarter dollar increase in S,G&A was primarily due to the accrual of the Company's incentive compensation plans and integration costs related to the recent acquisitions. The Company expects that S,G&A will be approximately 24% to 25% of revenue in the third quarter of 2008.
Balance Sheet Strength
The Company continued focus on reducing both the accounts receivable and inventory balances yielded significant results in the quarter. Accounts receivables decrease $9.0 million and inventory decreased $3.4 million from their March 31, 2008 balances and contributed to the $6.0 million increase in cash and marketable securities in the 2008 second quarter. The Company anticipates this trend continuing in the third quarter of 2008. Working capital of $175.4 million, as of June 30, 2008 remained essentially unchanged from the previous quarter.
Board Authorizes Stock Repurchase Program
The Board of Directors authorized a stock repurchase program of up to 3 million shares of the Company's stock. The repurchases will be effected from time to time through open market or in private transactions and at prices considered appropriate by the Company. The program will be funded from existing cash and may be discontinued or modified at anytime.
Conference Call
Rudolph Technologies will discuss its 2008 second quarter results and third quarter guidance, on a conference call it is hosting today at 4:45 PM ET. A live webcast will also be available to investors on the Company's website at www.rudolphtech.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software.
About Rudolph Technologies
Rudolph Technologies is a worldwide leader in the design, development, manufacture and support of high-performance process control metrology, defect inspection and data analysis systems used by semiconductor device manufacturers. Rudolph provides a full-fab solution through its families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market. Rudolph has enhanced the competitiveness of its products in the marketplace by anticipating and addressing many emerging trends driving the semiconductor industry's growth. Rudolph's strategy for continued technological and market leadership includes aggressive research and development of complementary metrology and inspection solutions. Headquartered in Flanders, New Jersey, Rudolph supports its customers with a worldwide sales and service organization. Additional information can be found on the Company's website at www.rudolphtech.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements related to our expectations regarding our expenses and revenue expectations for the third quarter of 2008. In some cases, you can identify those so-called "forward-looking statements" by words such as "may," "will," "would," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of those words and other comparable words. Rudolph wishes to take advantage of the "safe harbor" provided for by the Private Securities Litigation Reform Act of 1995 and you are cautioned that actual events or results may differ materially from the expectations expressed in such forward-looking statements as a result of various factors, including risks and uncertainties, many of which are beyond the control of Rudolph. Factors that could cause actual results to differ materially from the expectations expressed in such forward-looking statements include, but are not limited to: (1) cyclicality of the semiconductor industry; (2) customer concentration; (3) introduction of new products by Rudolph's competitors; (4) sole or limited sources of supply; (5) revenues may be lower than expected; (6) costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected; (7) the industry may be subject to future regulatory or legislative actions that could adversely affect the Company; (8) the impact of a slowdown in the overall economy; (9) uncertainty of the current global political environment; (10) the potential for terrorist attacks; (11) changes in customer demands for our existing and new products, the timing, cancellation or delay of customer orders and shipments; (12) the timing of revenue recognition of shipments and services provided; (13) changes in or an inability to execute our business strategy; (14) unanticipated manufacturing or supply problems; (15) changes in tax rules; (16) the assets of Applied Precision's semiconductor operations and/or RVSI Inspection may not be integrated into Rudolph successfully, which may result in the Company not operating as effectively and efficiently as expected or such integration may be more difficult, time-consuming or costly than expected; (17) revenues following the acquisitions may be lower than expected; and (18) the expected combination benefits from the acquisitions may not be fully realized or realized within the expected time frame. Rudolph cannot guarantee future results, levels of activity, performance, or achievements. Additional factors that may affect the future results of Rudolph are set forth in its Form 10-K report for the year ended December 31, 2007 and other filings with the Securities and Exchange Commission ("SEC"), which are available at http://www.sec.gov, the SEC's website, and at the Company's website which is http://www.rudolphtech.com. These factors are updated from time to time through the filing of reports and registration statements with the SEC. Rudolph Technologies does not assume any obligation to update the forward-looking information contained in this press release.
RUDOLPH TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) - (Unaudited)
June 30, Dec. 31,
2008 2007
(Audited)
-------- --------
ASSETS
Current assets
Cash and marketable securities $ 65,278 $ 73,925
Accounts receivable, net 50,913 50,015
Inventories 76,572 70,987
Prepaid and other assets 12,810 8,700
-------- --------
Total current assets 205,573 203,627
Net property, plant and equipment 18,483 16,062
Intangibles 236,219 236,957
Other assets 3,300 3,570
-------- --------
Total assets $463,575 $460,216
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 18,978 $ 15,030
Other current liabilities 11,157 12,299
-------- --------
Total current liabilities 30,135 27,329
Non-current liabilities 10,032 8,409
-------- --------
Total liabilities 40,167 35,738
Stockholders' equity 423,408 424,478
-------- --------
Total liabilities and stockholders' equity $463,575 $460,216
======== ========
RUDOLPH TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) - (Unaudited)
Three Months Ended Six Months Ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------- -------- -------- --------
Revenues $ 38,416 $ 47,730 $ 75,626 $ 96,086
Cost of revenues 20,695 22,880 42,790 44,986
-------- -------- -------- --------
Gross profit 17,721 24,850 32,836 51,100
Operating expenses:
Research and development 8,443 8,137 16,240 16,814
Selling, general
and administrative 10,537 8,764 19,631 17,539
Amortization 1,726 1,123 3,394 2,249
-------- -------- -------- --------
Total operating expenses 20,706 18,024 39,265 36,602
-------- -------- -------- --------
Operating income (loss) (2,985) 6,826 (6,429) 14,498
Interest income and other, net 171 923 552 1,956
Provision (benefit) for
income taxes (829) 2,298 (2,246) 5,439
-------- -------- -------- --------
Net income (loss) $ (1,985) $ 5,451 $ (3,631) $ 11,015
======== ======== ======== ========
Net income (loss) per share:
Basic $ (0.06) $ 0.19 $ (0.12) $ 0.38
Diluted $ (0.06) $ 0.19 $ (0.12) $ 0.38
Weighted average shares
outstanding:
Basic 30,669 29,108 30,560 29,071
Diluted 30,669 29,312 30,560 29,270