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LTX-Credence Announces First Quarter Results

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NORWOOD, Mass., Nov. 29, 2012 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of market focused, cost-optimized ATE solutions, today announced financial results for its first quarter ended October 31, 2012.

Net sales for the quarter were $43,188,000, compared to the prior quarter net sales of $43,462,000. Net income for the quarter was $549,000, or $0.01 per share on a GAAP basis. Excluding the impact of special items totaling $398,000, and amortization of purchased intangible assets of $396,000, non-GAAP net income for the quarter was $1,343,000, or $0.03 per share.

Dave Tacelli, chief executive officer and president, commented, "The mobility space remained particularly strong in the quarter leading to high demand for our PAx test solution. The PAx is used by certain customers to test the RF front-end devices that are designed into the most popular smartphones in the market.

"We are also very encouraged by the fast adoption rate of our new Diamondx product by several top tier IDM and fabless semiconductor companies. Diamondx has now been established as an approved test platform by some of the largest semiconductor suppliers in North America, Europe, Japan, Taiwan and China. These customers quickly recognized the significant impact the Diamondx provides in reducing their cost of test in three key areas: capital cost, throughput and operating costs. With initial Diamondx revenues recognized in the first fiscal quarter, we expect the Diamondx revenue ramp to continue throughout the fiscal year."

Second Quarter Fiscal 2013 Outlook

For the fiscal quarter ending January 31, 2013, net sales are expected to be in the range of $35 million to $39 million. Non-GAAP net loss is expected to be in the range of $(0.08) to $(0.04) per share, assuming 47.5 million shares outstanding. The non-GAAP net loss guidance excludes amortization of purchased intangible assets of approximately $0.4 million.

The Company will conduct a conference call today, November 29, 2012, at 10:00 AM EST to discuss this release. The conference call may be accessed via telephone by dialing 877.853.5334. The call will be simulcast via the LTX-Credence web site http://investor.ltxc.com/events.cfm. Audio replays of the call can be heard through December 1, 2012, via telephone, by dialing 855.859.2056; conference ID number 69875060. A replay of the webcast can be accessed by visiting our web site 90 minutes following the conference call at http://investor.ltxc.com/events.cfm.

Information About Non-GAAP Measures

LTX-Credence 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, 2012 excludes the amortization of purchased intangible assets, restructuring charges, and other special items. Management finds these non-GAAP measures 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 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

Statements in this release regarding guidance for LTX-Credence's second fiscal quarter 2013, including the financial guidance on revenue and earnings or loss per share, financial operating results including net income or loss and earnings or loss per share, management's expectations as to the future condition of LTX-Credence's industry and the overall economic environment, and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward‑looking statements within the meaning of the United States securities laws, including the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "targets", "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward‑looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those stated or implied, including but not limited to: uncertain global economic and industry conditions which impact capital spending; fluctuations in business and consumer spending; fluctuations in our product and service demand; sole or limited sources of supply; risks related to the development, timely delivery, and market acceptance of new products, options and software applications by us and our competitors; as well as the other risks described in our filings with the U.S. Securities and Exchange Commission, including those included under the heading "Business Risks" in our Annual Report on Form 10-K for the fiscal year ended July 31, 2012. 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

LTX-Credence is a global provider of ATE solutions designed to deliver value through innovation enabling 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.ltxc.com.

LTX-Credence Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
ASSETS October 31,
2012
July 31,
2012
Current assets
Cash and cash equivalents $ 25,290 $ 29,446
Marketable securities 103,550 107,728
Accounts receivable - trade, net 34,189 31,182
Accounts receivable - other, net 624 740
Inventories, net 31,477 28,850
Prepaid expenses and other current assets 3,044 3,440
Total current assets 198,174 201,386
Property and equipment, net 18,236 18,229
Intangible assets, net 2,758 3,153
Goodwill 43,030 43,030
Other assets 1,285 1,270
Total assets $ 263,483 $ 267,068
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 17,684 $ 12,734
Other accrued expenses 20,225 19,736
Deferred revenues 4,259 5,347
Total current liabilities 42,168 37,817
Other long-term liabilities 13,441 13,547
Stockholders' equity 207,874 215,704
Total liabilities and stockholders' equity $ 263,483 $ 267,068
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
Three Months Ended
October 31,
2012 2011
Net sales $ 43,188 $ 33,752
Cost of sales 19,684 15,715
Gross profit 23,504 18,037
Engineering and product development expenses 12,392 12,916
Selling, general, and administrative expenses 10,006 9,321
Amortization of purchased intangible assets 396 791
Restructuring 231 46
Income (loss) from operations 479 (5,037)
Other income, net 209 250
Income (loss) before provision for income taxes 688 (4,787)
Provision for income taxes 139 122
Net income (loss) $ 549 $ (4,909)
Net income (loss) per share:
Basic $ 0.01 $ (0.10)
Diluted $ 0.01 $ (0.10)
Weighted average shares outstanding:
Basic 48,303 49,487
Diluted 48,711 49,487
LTX-Credence Corporation
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands, except per share amounts)
(unaudited)
Three Months
Ended
October 31, 2012
Basic
Earnings
Per Share
Diluted
Earnings
Per Share
Three Months
Ended
October 31, 2011
Basic
Earnings
Per Share
Diluted
Earnings
Per Share
GAAP net income (loss) $ 549 $ 0.01 $ 0.01 $ (4,909) $ (0.10) $ (0.10)
Amortization of purchased intangible assets 396 0.01 0.01 791 0.02 0.02
Income tax expense from foreign entity mergers 167 0.01 0.01 -- -- --
Restructuring 231 0.00 0.00 46 0.00 0.00
Merger-related expense -- -- -- 115 0.00 0.00
Non-GAAP net income (loss) $ 1,343 $ 0.03 $ 0.03 $ (3,957) $ (0.08) $ (0.08)
Weighted average shares outstanding: 48,303 48,711 49,487 49,487

CONTACT: Rich Yerganian, LTX-Credence Corporation Tel. 781.467.5063 Email rich_yerganian@ltxc.com

Source:LTX-Credence Corporation