Previous Statements by LTXC
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» LTX-Credence CEO Discusses F1Q2011 Results - Earnings Call Transcript
As a reminder, the only authorized spokespeople for the Company are Dave Tacelli, Rich Yerganian and myself. Also, the Company will be presenting at the Barclays Technology Conference in San Francisco on Thursday, December 8 at 3:30 in the afternoon.Now for our Safe Harbor statement. During the course of this conference call, we may make projections or other forward-looking statements regarding LTX - Credence’s business outlook for the future financial performance of the Company. We wish to caution you that these statements, such as projected revenues, net income or loss, earnings or loss per share, operating expenses, gross margin, cash flow, non-GAAP measures, and breakeven targets are only predictions and that actual events or results may differ materially. The guidance provided during this call represents the Company’s estimates as of this day and the Company assumes no obligation to update this guidance. Please refer to our Safe Harbor statement in our earnings release for more information on important factors that could cause actual results to differ. Now onto the call. Dave? David Tacelli Thank you, Mark, and good morning everyone. During today’s call, I’ll review our first quarter performance and second quarter business outlook, how we’re managing the current business environment, and I’ll also provide in-depth commentary on one of our target markets, power management. As expected, the current environment was challenging as weak economic conditions impact our business consistent with the rest of the industry. We don’t expect any short-term growth catalysts until after the calendar year-end as we are now in the most seasonably weak quarter of our fiscal year. We are now beyond the point where customers will add capacity in anticipation of the holiday build. At this point in time, customers tend to wait until after the Chinese New Year before assessing their growth prospects and test capacity needs; however, we’re optimistic that our second fiscal quarter will represent the low point of this cycle.
There are a number of reasons that support our position, which include the quantity of new devices that our customers are working on, the number of projects that are not yet in volume production, and the low level of excess test capacity in the supply chain. From an LTX – Credence perspective, the revenue contribution from the additional customers added over the past two years and a business expansion with our existing customers will drive our revenues to peak at a higher level as we move into the next period of growth for the semicap industry.During this downturn, we will continue running the company as we have in the past while constantly searching for ways to improve the business model while moving full-speed ahead on R&D projects and new business development activities. When we combined LTX and Credence, we put in place a variable business model that flexes with industry conditions. Even with the significant decline in revenues, our gross margin remained industry leading at over 53%, and while our revenues were just below our guidance, our loss per share at $0.08 was in the middle of the range. We continue to execute against our strategic goals which include developing additional business opportunities in all of our targeted areas while bringing innovative new products to market, helping our customers achieve the lowest overall cost of test. We continue to have success winning new customers and the results of these efforts will show up as we move through the next business cycle. It is our plan to support these wins with the development resources our customers require as we help them get their next generation products into the market. On the development front, we have a full pipeline of new products that will be introduced throughout the next fiscal year. One of these products will leverage the development efforts of our existing test platforms enhanced with new innovative technology that will drive market share growth for us in the $1 billion application-specific market segment. Read the rest of this transcript for free on seekingalpha.com