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Xcerra Announces Fourth Quarter and Fiscal Year Results

Fourth Fiscal Quarter and Fiscal Year Notables:

  • Factory acceptance received for first MEMS test cell solution in the fourth quarter
  • Generated $28 million of GAAP Net Income and $48 million of EBITDA during the fiscal year, EBITDA excludes stock based compensation expense
  • Acquired Titan Semiconductor Tool expanding the Company's contactor portfolio

NORWOOD, Mass., Sept. 3, 2015 (GLOBE NEWSWIRE) -- Xcerra Corporation (NASDAQ:XCRA), today announced financial results for its fourth fiscal quarter and fiscal year ended July 31, 2015.

Net sales for the quarter were $102,072,000, which were in line with the Company's guidance of $101M - $105M. GAAP net income for the quarter was $7,496,000, or $0.14 per diluted share. Excluding the net loss from discontinued operations, restructuring, and other one-time net expenses totaling $800,000, and amortization of purchased intangible assets of $424,000, non-GAAP net income for the quarter was $8,720,000, or $0.16 per diluted share.

For the twelve-month period ended July 31, 2015, sales were $397,978,000. GAAP net income was $28,226,000, or $0.52 per diluted share. Excluding the net impact of discontinued operations, restructuring, purchase accounting adjustments and other one-time net expenses totaling $3,953,000, and amortization of purchased intangible assets of $1,834,000, non-GAAP net income for the year was $34,013,000, or $0.62 per diluted share.

Dave Tacelli, chief executive officer and president, commented, "The industry appears to be experiencing a pause due primarily to weakness in the mobility space and the slowing economy in China. During this period we are especially focused on winning new customers in the incremental market segments we have targeted. As an example, we have delivered and received revenue for the first complete MEMS test cell and are engaged with several more customers for similar solutions.

This morning we announced that our Board of Directors has approved a $30 million stock repurchase plan. The Company will continue to seek inorganic growth opportunities in conjunction with this plan."

First Quarter Fiscal 2016 Outlook

For the fiscal quarter ending, October 31, 2015 net sales are expected to be in the range of $87 million to $90 million. Non-GAAP net income for the quarter is expected to be in the range of $0.00 to $0.03 per share, assuming 55.5 million fully diluted shares outstanding. First quarter guidance assumes a normalized product mix. The non-GAAP net income guidance excludes amortization of purchased intangible assets of approximately $400,000.

The Company will conduct a conference call today, September 3, 2015, at 10:00 AM EDT to discuss this release. The conference call may be accessed via telephone by dialing 877.853.5334. The call will be simulcast via the Xcerra web site http://www.xcerra.com/events-presentations.html. Audio replays of the call can be heard through September 5, 2015 via telephone, by dialing 855.859.2056; conference ID number 22845439. A replay of the webcast can be accessed by visiting our web site 90 minutes following the conference call at http://www.xcerra.com/events-presentations.html.

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 July 31, 2015 excludes the amortization of purchased intangible assets, restructuring charges, discontinued operations, 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

Any statements in this presentation about future expectations, plans and prospects for the Company, financial guidance on revenue, financial operating results (including net income or loss), and earnings or loss per share, continued customer adoption of recent product introductions, product developments, potential customer expansion and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the Company's use of the words "believes," "anticipates," "plans," "expects," "may," "will," "would," "should," "intends," "estimates," "seeks" or similar expressions, whether negative or affirmative. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to whether the Company is able to timely develop new products, options and software applications, the level of customer demand for such products, options and software applications, the Company's ability to meet acceptance requirements for newly developed products, the conditions affecting the markets in which we compete, the Company's ability to meet its debt service obligations under its existing credit arrangement with Silicon Valley Bank, as well as the other important factors as are described in the Company's filings with the U.S. Securities and Exchange Commission, including those included under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2015. The Company disclaims any intention or obligation to update any forward-looking statements after the date of this presentation.

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

Xcerra is a trademark of Xcerra Corporation.

All other trademarks are the property of their respective owners.

Xcerra Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
ASSETS July 31, 2015 July 31, 2014
Current assets
Cash and cash equivalents $ 77,858 $ 59,269
Marketable securities 60,593 39,659
Accounts receivable - trade, net 77,798 83,232
Accounts receivable - other, net 326 99
Inventories, net 60,593 67,684
Prepaid expenses and other current assets 8,393 9,004
Assets held for sale 13,969 16,329
Total current assets 299,530 275,276
Property and equipment, net 31,450 32,153
Intangible assets, net 10,640 11,105
Goodwill 43,850 43,030
Other assets 2,675 2,579
Total assets $ 388,145 $ 364,143
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 2,509 $ 3,831
Accounts payable 25,248 27,290
Other accrued expenses 35,579 39,439
Deferred revenues 7,466 8,927
Liabilities held for sale 3,391 3,680
Total current liabilities 74,193 83,167
Term loan 23,938 46,917
Subordinated debt -- 18,000
Other long-term liabilities 11,546 11,440
Stockholders' equity 278,468 204,619
Total liabilities and stockholders' equity $ 388,145 $ 364,143
Xcerra Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
Three Months Ended Twelve Months Ended
July 31, July 31,
2015 2014 2015 2014
Net sales $ 102,072 $ 112,658 $ 397,978 $ 305,106
Cost of sales 56,588 61,017 218,064 165,248
Gross profit 45,484 51,641 179,914 139,858
Engineering and product development expenses 16,210 14,474 64,157 60,733
Selling, general, and administrative expenses 21,375 25,839 82,124 77,017
Amortization of purchased intangible assets 424 822 1,834 1,936
Restructuring 739 363 2,206 3,943
Income (loss) from operations 6,736 10,143 29,593 (3,771)
Bargain purchase gain -- -- -- 8,621
Other income (loss), net 1,008 (1,330) 4,554 (1,992)
Income (loss) before provision for income taxes 7,744 8,813 34,147 2,858
Provision (benefit) for income taxes (664) (263) 2,629 767
Income (loss) from continuing operations 8,408 9,076 31,518 2,091
Income (loss) from discontinued operations, net of tax (912) 461 (3,292) (1,258)
Net income (loss) $ 7,496 $ 9,537 $ 28,226 $ 833
Basic net income (loss) per share:
Net income (loss) from continuing operations $ 0.15 $ 0.19 $ 0.59 $ 0.04
Net income (loss) from discontinued operations, net of tax (0.02) 0.01 (0.06) (0.03)
Basic net income (loss) per share $ 0.14 $ 0.20 $ 0.53 $ 0.02
Diluted net income (loss) per share:
Net income (loss) from continuing operations $ 0.15 $ 0.18 $ 0.58 $ 0.04
Net income (loss) from discontinued operations, net of tax (0.02) 0.01 (0.06) (0.03)
Diluted net income (loss) per share $ 0.14 $ 0.19 $ 0.52 $ 0.02
Weighted average shares outstanding:
Basic 54,591 48,385 53,658 48,214
Diluted 55,121 49,291 54,531 49,150
Xcerra Corporation
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per share amounts)
(unaudited)
Three Months Basic Diluted Three Months Basic Diluted
Ended Earnings Earnings Ended Earnings Earnings
July 31, 2015 Per Share Per Share July 31, 2014 Per Share Per Share
GAAP net income $ 7,496 $ 0.14 $ 0.14 $ 9,537 $ 0.20 $ 0.19
Discontinued operations 912 0.02 0.02 (461) (0.01) (0.01)
Amortization of purchased intangible assets 424 0.01 0.01 822 0.02 0.02
Amortization of inventory step up for purchase accounting -- -- -- 1,289 0.03 0.03
Restructuring 739 0.01 0.01 363 0.01 0.01
Reversal of indemnification accrual (1,500) (0.03) (0.03) -- -- --
Acquisition and integration related expenses 649 0.01 0.01 407 0.01 0.01
Non-GAAP net income $ 8,720 $ 0.16 $ 0.16 $ 11,957 $ 0.25 $ 0.24
Weighted average shares outstanding: 54,591 55,121 48,385 49,291
Twelve Months Basic Diluted Twelve Months Basic Diluted
Ended Earnings Earnings Ended Earnings Earnings
July 31, 2015 Per Share Per Share July 31, 2014 Per Share Per Share
GAAP net income $ 28,226 $ 0.53 $ 0.52 $ 833 $ 0.02 $ 0.02
Discontinued operations 3,292 0.06 0.06 1,258 0.03 0.03
Amortization of purchased intangible assets 1,834 0.03 0.03 1,936 0.04 0.04
Amortization of inventory step up for purchase accounting 1,991 0.04 0.04 3,981 0.08 0.08
Restructuring 2,206 0.04 0.04 3,943 0.08 0.08
Reversal of indemnification accrual (1,500) (0.03) (0.03) -- -- --
Gain from financing activities (2,685) (0.05) (0.05) -- -- --
Acquisition and integration related expenses 649 0.01 0.01 2,885 0.06 0.06
Bargain purchase gain -- -- -- (8,621) (0.18) (0.18)
Non-GAAP net income $ 34,013 $ 0.63 $ 0.62 $ 6,215 $ 0.13 $ 0.13
Weighted average shares outstanding: 53,658 54,531 48,214 49,150

CONTACT: Investor Contact: Richard Yerganian, Vice President, Investor Relations Xcerra Corporation Tel. 781.467.5063 Email rich.yerganian@xcerra.com

Source:Xcerra Corporation