MILPITAS, Calif., March 4, 2009 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of focused, cost-optimized ATE solutions, today announced financial results for its 2009 second fiscal quarter ended January 31, 2009.
Sales for the quarter were $30,401,000. Net loss for the quarter was $(54,546,000), or $(0.43) per share on a GAAP basis. Excluding the net impact of special items totaling $21,075,000, and amortization of purchased intangibles of $4,446,000, the net loss for the quarter was $(29,025,000), or $(0.23) per share on a non-GAAP basis.
Dave Tacelli, chief executive officer and president, commented, "During our second fiscal quarter, business conditions deteriorated even further than expected as evidenced by our preannouncement. While it appears that LTX-Credence may have reached a cycle bottom, it's difficult to predict when there will be consistent improvement in the overall business environment. During this difficult period, we are focused on developing the right products to drive market share growth and reducing our break-even to drive cross-cycle profitability."
Third Quarter Fiscal 2009 Outlook
For the quarter ending April 30, 2009, revenue is expected to be approximately $28 million, plus or minus 10%. The net loss is expected to be in the range of $(0.22) to $(0.19) per share, assuming 127 million shares outstanding. The net loss guidance does not include amortization of purchased intangibles of $4.4 million.
The Company will conduct a conference call today, March 4, 2009, at 4:30 PM EST to discuss this release. The conference call will be simulcast via the LTX-Credence web site (www.ltx-credence.com). Audio replays of the call can be heard through April 3, 2009 via telephone by dialing 888-286-8010, passcode 69779046 or by visiting our web site at www.ltx-credence.com.
Information About Non-GAAP Measures
Due to the merger and the current economic conditions, LTX-Credence will supplement its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net loss for the quarter ended January 31, 2009 excludes the net impact of merger-related and other charges, and amortization of purchased intangibles. 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 and the merger between LTX Corporation and Credence Systems Corporation completed on August 29, 2008, including the financial guidance on revenue, net loss and loss per share, improvement of the business model, reduction of break-even, the status of merger integration activities, 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 Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the ability to successfully integrate LTX's and Credence's operations and employees; current weak worldwide economic conditions; the ability to realize anticipated synergies and cost savings; the risk of fluctuations in sales and operating results; risks related to the timely development of new products, options and software applications and the other factors described in LTX's Annual Report on Form 10-K for the fiscal year ended July 31, 2008 and Credence's Annual Report on Form 10-K for the fiscal year ended November 3, 2007 and LTX-Credence's most recent Quarterly Report on Form 10-Q each filed with the SEC. 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
Formed by the 2008 merger of LTX Corporation and Credence Systems 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.LTX-Credence.com.
LTX-Credence is a trademark of LTX-Credence Corporation.
All other trademarks are the property of their respective owners.
LTX-CREDENCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, July 31,
2009 2008
----------- ----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 99,978 $ 51,052
Marketable securities 15,851 20,410
Accounts receivable - trade, net 21,599 24,160
Accounts receivable - other, net 534 1,245
Inventories 37,012 22,505
Prepaid expenses and other current assets 25,081 2,750
---------- ----------
Total current assets 200,055 122,122
Property and equipment, net 46,545 27,213
Intangible assets, net 31,290 --
Goodwill 45,148 14,368
Other assets 5,835 6,024
---------- ----------
Total assets $ 328,873 $ 169,727
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 8,637 $ 5,700
Accounts payable 26,174 14,058
Other accrued expenses 57,922 14,081
Deferred revenues and customer advances 8,843 1,777
---------- ----------
Total current liabilities 101,576 35,616
---------- ----------
Long-term debt, net of current portion 56,531 12,200
Other long-term liabilities 31,134 4,631
Stockholders' equity 139,632 117,280
---------- ----------
Total liabilities and stockholders'
equity $ 328,873 $ 169,727
========== ==========
LTX-CREDENCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except earnings per share data)
(unaudited)
Three Months Six Months
Ended Ended
January 31, January 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net sales $ 30,401 $ 31,022 $ 77,534 $ 60,657
Cost of sales 23,754 16,194 50,080 31,373
Inventory-related provision 5,629 -- 19,311 --
-------- -------- -------- --------
Gross profit 1,018 14,828 8,143 29,284
Engineering and product
development expenses 21,705 11,347 42,173 22,983
Selling, general and
administrative expenses 15,001 6,921 29,382 13,432
Impairment of property and
equipment and consignments 779 -- 5,799 --
Amortization of purchased
intangible assets 4,446 -- 7,410 --
Acquired in-process
research and development -- -- 6,200 --
Restructuring 14,667 -- 18,530 --
-------- -------- -------- --------
Loss from operations (55,580) (3,440) (101,351) (7,131)
Other income (expense), net 1,099 334 2,093 550
-------- -------- -------- --------
Loss before provision
(benefit) for income
taxes (54,481) (3,106) (99,258) (6,581)
Provision (benefit) for
income taxes 65 72 638 (3,179)
-------- -------- -------- --------
Net loss $(54,546) $ (3,178) $(99,896) $ (3,402)
======== ======== ======== ========
Net loss per share:
Basic and Diluted $ (0.43) $ (0.05) $ (0.85) $ (0.05)
Weighted average shares
outstanding:
Basic and Diluted 126,918 62,510 116,981 62,490
LTX-CREDENCE CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(In thousands, except per share amounts)
Three Months Three Months
Ended Ended
January 31, Earnings January 31, Earnings
2009 Per Share 2008 Per Share
----------- --------- ------------ ---------
GAAP net loss ($54,546) ($0.43) ($3,178) ($0.05)
Inventory related
provision 5,629 0.04 --
Impairment of property
and equipment and
consignments 779 0.01 --
Amortization of
purchased intangible
assets 4,446 0.03 --
Restructuring 14,667 0.12 --
----------- --------- ------------ ---------
Non-GAAP net loss ($29,025) ($0.23) ($3,178) ($0.05)
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