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Now for our Safe Harbor statement. During the course of this conference call, we will make forward-looking statements regarding LTX-Credence's business outlook or 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 management's current predictions and that actual events or results may differ materially.These statements provided during this call represent the company's estimates as of this day and the company assumes no obligation to update them after this call. 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 on to the call. Dave? David Tacelli Thank you, Mark, and good morning everyone. During today's call, I'll review our third quarter performance and then spend the majority of my prepared remarks on the major factors expected to drive the company's topline growth over the next business cycle. Our third quarter financial results for revenues were slightly better than the midpoint of our guidance and EPS was better than the high end of the range as our business model continues to perform better than planned. With the momentum in the marketplace, our goal is to reach profitability in the fourth fiscal quarter. As we begin this next business cycle, our financial model is prime to deliver strong results and our newest products are expected to achieve our gross margin target starting with initial shipments. From balance sheet perspective, we currently have $137 million in cash with no debt. By far, this is the best position the company has ever been in at the beginning of a growth cycle. As revenues climb over the next several years, we expect to generate strong cash flow, which will allow us to invest in all opportunities to grow our business.
While visibility beyond the next three months is limited, the positive information we're getting from customers indicate business expansion into the second half of the year. Utilization rates have increased dramatically across both IDMs and OSATs, and we received multiple requests asking for accelerated deliveries. Fortunately, our outsourced manufacturing model gives us the flexibility to ramp shipments in respond to changing customer demand.As our guidance suggests, industry conditions are improving and the recovery has broadened beyond the RF power amplifier market. The ASSP and Power Management segments in particular are expected to show recovery for us in the fourth quarter, driven in part by customer wins in the automotive and mobility markets. Business cycles in the ATE industry generally lasts three years and the shape of the curve is unique to each cycle as external factors such as macroeconomic conditions, disruptive global events or high growth new product introductions influence industry revenues. We don't expect quarter to be up and to the right, but we believe our trend lines for the next two years will be positive. We think this is so because of the general industry trend and because of anticipated growth from our recent product introductions. We believe our growth in the new cycle will come from three sources: first, leveraging on existing customer base as the business recovery drives capacity expansion; second, incremental business with existing products from several new customers expected to ramp in the second half of the calendar year; and third, new opportunities from our Diamondx product. We expect initial revenues for the engineering and development testers in our fourth quarter and revenues associated with volume production in our first fiscal quarter starting in August. During our last conference call, we discussed the imminent launch of our new product, Diamondx, at SEMICON China. Diamondx is targeted at the ASSP market and approximately $400 million market segment of the SoC tester space. The launch was extremely successful and the customers thought that the new product was even better than anticipated. Read the rest of this transcript for free on seekingalpha.com