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LTX-Credence Announces Second Quarter Results

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NORWOOD, Mass., Feb. 27, 2013 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of market focused, cost-optimized ATE solutions, today announced financial results for its second quarter ended January 31, 2013.

Net sales for the quarter were $35,016,000, compared to the prior quarter net sales of $43,188,000. Net loss for the quarter was $(3,276,000), or $(0.07) per share on a GAAP basis. Excluding the impact of special items totaling $(989,000), and amortization of purchased intangible assets of $396,000, non-GAAP net loss for the quarter was $(3,869,000), or $(0.08) per share.

Dave Tacelli, chief executive officer and president, commented, "Results in the quarter were consistent with our expectations, given the weak seasonal demand typically associated with our second fiscal quarter. On a relative basis, our top line revenue outperformed the rest of the industry in part due to the revenue contribution from our new products. We expect the business cycle to regain positive momentum starting in our third fiscal quarter based on indications from customers regarding their increasing need for test capacity.

This quarter also saw the launch of our important new product, Nighthawk, which is a low cost, high-performance RF option for testing connectivity devices. Nighthawk, when combined with our Diamondx tester, provides a compelling solution for semiconductor manufacturers looking to lower the cost of test for these types of price-sensitive devices. We believe Nighthawk, several years in development and unique in the industry, addresses the emerging trends in RF testing requirements."

Third Quarter Fiscal 2013 Outlook

For the fiscal quarter ending April 30, 2013, net sales are expected to be in the range of $35 million to $40 million. Non-GAAP net loss is expected to be in the range of $(0.10) to $(0.05) 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, February 27, 2013, 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 March 1, 2013, via telephone, by dialing (855) 859-2056; conference ID number 98209024. 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 loss for the quarter ended January 31, 2013 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 third 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 and LTXC are trademarks of LTX-Credence Corporation.

All other trademarks are the property of their respective owners

LTX-Credence Corporation
Consolidated Balance Sheets
(in thousands)
ASSETS January 31, 2013 July 31, 2012
(unaudited)
Current assets
Cash and cash equivalents $ 32,358 $ 29,446
Marketable securities 95,386 107,728
Accounts receivable - trade, net 23,523 31,182
Accounts receivable - other 647 740
Inventories, net 29,350 28,850
Prepaid expenses and other current assets 3,430 3,440
Total current assets 184,694 201,386
Property and equipment, net 17,744 18,229
Intangible assets, net 2,362 3,153
Goodwill 43,030 43,030
Other assets 1,248 1,270
Total assets $ 249,078 $ 267,068
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 9,082 $ 12,734
Other accrued expenses 17,382 19,736
Deferred revenue 5,030 5,347
Total current liabilities 31,494 37,817
Other long-term liabilities 12,085 13,547
Stockholders' equity 205,499 215,704
Total liabilities and stockholders' equity $ 249,078 $ 267,068
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
Three Months Ended Six Months Ended
January 31, January 31,
2013 2012 2013 2012
Net sales $ 35,016 $ 24,082 $ 78,204 $ 57,834
Cost of sales 16,457 13,202 36,141 28,917
Gross profit 18,559 10,880 42,063 28,917
Engineering and product development expenses 13,203 12,364 25,595 25,280
Selling, general, and administrative expenses 9,183 8,346 19,189 17,667
Amortization of purchased intangible assets 396 791 792 1,582
Restructuring 69 141 300 187
Loss from operations (4,292) (10,762) (3,813) (15,799)
Other income, net 282 403 491 654
Loss before benefit from income taxes (4,010) (10,359) (3,322) (15,145)
Benefit from income taxes (734) (671) (595) (549)
Net loss $ (3,276) $ (9,688) $ (2,727) $ (14,596)
Net loss per share:
Basic and Diluted $ (0.07) $ (0.20) $ (0.06) $ (0.30)
Weighted average shares outstanding:
Basic and Diluted 47,425 48,961 47,864 49,225
LTX-Credence Corporation
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss
(In thousands, except per share amounts)
(unaudited)
Three Months Basic and Diluted Three Months Basic and Diluted
Ended Earnings Ended Earnings
January 31, 2013 Per Share January 31, 2012 Per Share
GAAP net loss $ (3,276) $ (0.07) $ (9,688) $ (0.20)
Release of income tax liabilities due to lapses in statutes of limitations (1,058) (0.02) (866) (0.02)
Restructuring 69 0.00 141 0.00
Merger-related (income) expenses -- -- (49) (0.00)
Amortization of purchased intangible assets 396 0.01 791 0.02
Non-GAAP net loss $ (3,869) $ (0.08) $ (9,671) $ (0.20)
Weighted average shares outstanding: 47,425 48,961
Six Months Basic and Diluted Six Months Basic and Diluted
Ended Earnings Ended Earnings
January 31, 2013 Per Share January 31, 2012 Per Share
GAAP net loss $ (2,727) $ (0.06) $ (14,596) $ (0.30)
Release of income tax liabilities due to lapses in statutes of limitations (1,058) (0.02) (866) (0.02)
Amortization of purchased intangible assets 792 0.02 1,582 0.03
Restructuring 300 0.01 187 0.00
Income tax expense from foreign entity mergers 167 0.00 -- --
Merger-related expenses -- -- 66 0.00
Non-GAAP net loss $ (2,526) $ (0.05) $ (13,627) $ (0.29)
Weighted average shares outstanding: 47,864 49,225

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

Source:LTX-Credence Corporation