First Fiscal Quarter Notables:
- First quarter sales of $120.3 million
- GAAP net income of $17.5 million or $0.32 per diluted share
- Non-GAAP net income of $18.5 million or $0.33 per diluted share
- The company continues the process to obtain regulatory approval for the acquisition by Hubei Xinyan Equity Investment Partnership
NORWOOD, Mass., Nov. 29, 2017 (GLOBE NEWSWIRE) -- Xcerra Corporation (NASDAQ:XCRA) today announced financial results for its first fiscal quarter ended October 31, 2017.
Net sales for the quarter were $120,286,000, compared to the prior quarter’s net sales of $126,926,000. GAAP net income for the quarter was $17,531,000, or $0.32 per diluted share. Excluding restructuring charges of $135,000, amortization of purchased intangible assets of $157,000, and deal related expenses of $635,000, non-GAAP net income for the quarter was $18,458,000, or $0.33 per diluted share.
As a result of the acquisition announcement with Hubei Xinyan Equity Investment Partnership, the Company will not hold a quarterly conference call and webcast, and will not provide an outlook for its future financial results.
Information About Non-GAAP Measures
Xcerra supplements its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net income for the quarter ended October 31, 2017 excludes the amortization of purchased intangible assets, restructuring charges, and other one-time adjustments. Management believes these non-GAAP measures are useful for internal comparison to historical operating results as well as to the operating results of its competitors, and believes that this information is 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
Certain statements contained in this press release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the proposed transaction involving Xcerra Corporation ("Xcerra") and Hubei Xinyan Equity Investment Partnership (Limited Partnership) ("Parent") and the ability to consummate the transaction. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "anticipate," "plan," "likely," "believe," "estimate," "project," "intend," and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the risk that the conditions to the closing of the transaction are not satisfied, including the failure to timely or at all obtain stockholder approval for the transaction or the failure to timely or at all obtain any required regulatory clearances, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) or from the Committee on Foreign Investment in the United States (CFIUS); uncertainties as to the timing of the consummation of the transaction and the ability of each of Xcerra and Parent to consummate the transaction, including as a result of the failure of Parent to obtain or provide on a timely basis or at all the necessary financing; risks that the transaction disrupts the current plans and operations of Xcerra; the ability of Xcerra to retain and hire key personnel; competitive responses to the transaction; unexpected costs, charges or expenses resulting from the transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; and legislative, regulatory, political and economic developments. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in Xcerra's most recent Annual Report on Form 10-K, and Xcerra's more recent Quarterly Report on Form 10-Q and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission (the "SEC"). Xcerra can give no assurance that the conditions to the transaction will be satisfied. Except as required by applicable law, Xcerra undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
About Xcerra
Xcerra Corporation is comprised of four businesses in the semiconductor and electronics manufacturing test markets: atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence and Multitest. The combination of these businesses creates a company with a broad spectrum of semiconductor and PCB test expertise that drives innovative new products and services, and the ability to deliver to customers fully integrated semiconductor test cell solutions. The Company addresses the broad, divergent requirements of the mobility, industrial, automotive and consumer end markets, offering a comprehensive portfolio of solutions and technologies, and a global network of strategically deployed applications and support resources. Additional information can be found at www.xcerra.com or at each product group’s website; www.atg-lm.com, www.ectinfo.com, www.ltxc.com and www.multitest.com
Investor Contact:
Richard Yerganian,
Vice President, Investor Relations
Xcerra Corporation
Tel. 781.467.5063
Email rich.yerganian@xcerra.com
Xcerra is a trademark of Xcerra Corporation.
All other trademarks are the property of their respective owners.
Source: Xcerra Corporation.
| Xcerra Corporation | |||||
| Consolidated Balance Sheets | |||||
| (in thousands) | |||||
| ASSETS | October 31, 2017 | July 31, 2017 | |||
| Current assets | |||||
| Cash and cash equivalents | $ | 104,388 | $ | 103,637 | |
| Marketable securities | 56,919 | 57,087 | |||
| Accounts receivable - trade, net | 89,047 | 92,689 | |||
| Accounts receivable - other, net | 452 | 274 | |||
| Inventories, net | 86,905 | 81,509 | |||
| Prepaid expenses and other current assets | 20,455 | 19,087 | |||
| Assets held for sale | 850 | 994 | |||
| Total current assets | 359,016 | 355,277 | |||
| Property and equipment, net | 28,556 | 28,509 | |||
| Intangible assets, net | 8,596 | 8,752 | |||
| Goodwill | 43,850 | 43,850 | |||
| Other assets | 2,139 | 2,225 | |||
| Total assets | $ | 442,157 | $ | 438,613 | |
| LIABILITIES AND EQUITY | |||||
| Current liabilities | |||||
| Current portion of long-term debt | $ | 4,095 | $ | 3,779 | |
| Accounts payable | 25,378 | 36,249 | |||
| Other accrued expenses | 49,825 | 50,262 | |||
| Deferred revenues | 4,833 | 8,085 | |||
| Total current liabilities | 84,131 | 98,375 | |||
| Term Loan | 16,550 | 17,547 | |||
| Other long-term liabilities | 9,087 | 9,012 | |||
| Stockholders' equity | 332,311 | 313,679 | |||
| Noncontrolling interest | 78 | - | |||
| Total liabilities and equity | $ | 442,157 | $ | 438,613 | |
| Xcerra Corporation | |||||
| Consolidated Statements of Operations | |||||
| (in thousands, except earnings per share data) | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| October 31, | |||||
| 2017 | 2016 | ||||
| Net sales | $ | 120,286 | $ | 80,085 | |
| Cost of sales | 60,871 | 45,725 | |||
| Gross profit | 59,415 | 34,360 | |||
| Engineering and product development expenses | 17,139 | 15,296 | |||
| Selling, general, and administrative expenses | 21,285 | 18,461 | |||
| Amortization of purchased intangible assets | 157 | 190 | |||
| Restructuring | 135 | 107 | |||
| Income from operations | 20,699 | 306 | |||
| Other (expense) income, net | (210 | ) | 320 | ||
| Income before provision for income taxes | 20,489 | 626 | |||
| Provision for income taxes | 2,788 | 608 | |||
| Net income | $ | 17,701 | $ | 18 | |
| Net income attributable to noncontrolling interest | $ | 170 | $ | - | |
| Net income attributable to Xcerra | $ | 17,531 | $ | 18 | |
| Basic and diluted net income per share attributable to Xcerra: | |||||
| Basic net income | $ | 0.32 | $ | 0.00 | |
| Diluted net income | $ | 0.32 | $ | 0.00 | |
| Weighted-average common shares used in computing net income per share: | |||||
| Basic | 54,604 | 53,865 | |||
| Diluted | 55,628 | 54,025 | |||
| Xcerra Corporation | |||||||||||||
| Reconciliation of GAAP Net Income to Non-GAAP Net Income | |||||||||||||
| (In thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months | Basic | Diluted | Three Months | Basic | Diluted | ||||||||
| Ended | Earnings | Earnings | Ended | Earnings | Earnings | ||||||||
| October 31, 2017 | Per Share | Per Share | October 31, 2016 | Per Share | Per Share | ||||||||
| GAAP net income attributable to Xcerra | $ | 17,531 | $ | 0.32 | $ | 0.32 | $ | 18 | $ | 0.00 | $ | 0.00 | |
| Legal and transaction fees | 635 | 0.01 | 0.01 | - | - | - | |||||||
| Amortization of purchased intangible assets | 157 | 0.00 | 0.00 | 190 | 0.00 | 0.00 | |||||||
| Restructuring | 135 | 0.00 | 0.00 | 107 | 0.00 | 0.00 | |||||||
| Non-GAAP net income | $ | 18,458 | $ | 0.34 | $ | 0.33 | $ | 315 | $ | 0.01 | $ | 0.01 | |
| Weighted average shares outstanding: | 54,604 | 55,628 | 53,865 | 54,025 | |||||||||