LTX-Credence Announces Fourth Quarter And Fiscal Year Results

NORWOOD, Mass., Aug. 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 fourth quarter and fiscal year ended July 31, 2012.

Sales for the 2012 fourth fiscal quarter were $43,462,000, up from the prior quarter sales of $30,837,000. Net income for the quarter was $1,356,000, or $0.03 per diluted share on a GAAP basis. Excluding the net favorable impact of special items totaling $403,000, and amortization of purchased intangible assets of $791,000, net income for the quarter was $1,744,000, or $0.04 per diluted share on a non-GAAP basis.

For the twelve-month period ended July 31, 2012, sales were $132,134,000. Net loss was $(19,869,000), or $(0.40) per share on a GAAP basis. Excluding the net favorable impact of special items totaling $145,000, and amortization of purchased intangible assets of $3,163,000, net loss for the year was $(16,851,000), or $(0.35) per share on a non-GAAP basis.

Dave Tacelli, chief executive officer and president, commented, "Our business recovered in the quarter with revenue growing over 40% compared to the prior quarter. We returned to profitability and generated approximately $5M of cash from operations. We made good progress in establishing the Diamondx as a strong alternative to competitive offerings in the microcontroller and application specific product areas and believe we are on track to achieve our market share goals for this innovative new product.

Our outlook for the first fiscal quarter is supported by strength in the mobility and automotive markets plus initial revenue contributions from the Diamondx. While macroeconomic conditions have caused some customers to hold off on capital purchases, others remain in a steady pace of capacity expansion. As we begin the new fiscal year, our product lineup, focus on key market segments and new business development opportunities should lead to year-over-year growth."

First Quarter Fiscal 2013 Outlook

For the fiscal quarter ending October 31, 2012, revenue is expected to be in the range of $42 million to $46 million. Non-GAAP net income is expected to be in the range of $0.01 to $0.05 per share, assuming 49.5 million fully diluted shares outstanding. The non-GAAP net income guidance excludes amortization of purchased intangible assets of $0.4 million.

The Company will conduct a conference call today, August 29, 2012, at 10:00 AM EDT to discuss this release. The conference call may be accessed via telephone by dialing 877.853.5334. The conference call will also be simulcast on the "Investor" link at the LTX-Credence web site ( www.ltxc.com). Audio replays of the call can be heard through September 28, 2012 via telephone by dialing 855.859.2056, Conference ID number 19629730 or by visiting our web site at www.ltxc.com.

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 and/or year ended July 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 first 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, fluctuations in business and consumer spending; fluctuations in our product and service demand and operating results; risks related to the development and timely delivery of new products, options and software applications; as well as the other risks described in our filings with the U.S. Securities and Exchange Commission, including those under the heading "Risk Factors" in our Annual Report on Form10-K for the fiscal year ended July 31, 2011. 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)     
(unaudited)     
     
  ASSETS  July 31, 2012 July 31, 2011
Current assets     
Cash and cash equivalents   $ 29,446  $ 123,198
Marketable securities  107,728 39,417
Accounts receivable - trade, net  31,182 42,646
Accounts receivable - other, net  740 408
Inventories, net  28,850 21,145
Prepaid expenses and other current assets  3,440 4,368
Total current assets  201,386 231,182
     
Property and equipment, net  18,229 20,827
Intangible assets, net  3,153 6,317
Goodwill  43,030 43,030
Other assets  1,270 759
Total assets   $ 267,068  $ 302,115
     
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities     
Accounts payable   $ 12,734  $ 15,232
Other accrued expenses  19,736 24,677
Deferred revenues  5,347 5,589
Total current liabilities  37,817 45,498
     
Other long-term liabilities  13,547 15,897
Stockholders' equity  215,704 240,720
Total liabilities and stockholders' equity   $ 267,068  $ 302,115
         
         
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)        
         
  Three Months Ended July 31,  Twelve Months Ended July 31,
  2012 2011 2012 2011
         
Net sales  $ 43,462  $ 62,669  $ 132,134  $ 249,530
Cost of sales 19,696 23,560 63,637 95,290
Gross profit  23,766 39,109 68,497 154,240
         
Engineering and product development expenses 12,360 13,509 49,864 52,697
Selling, general, and administrative expenses 9,852 11,356 36,348 48,968
Amortization of purchased intangible assets  791 1,490  3,163  5,961
Restructuring   178  --  1,104 363
Income (loss) from operations 585 12,754 (21,982) 46,251
         
Other income (expense), net 289 (562) 1,175 13,512
Income (loss) before provision for (benefit from) income taxes 874 12,192 (20,807) 59,763
Provision for (benefit from) income taxes (482) 116 (938) (315)
Net income (loss)  $ 1,356  $ 12,076  $ (19,869)  $ 60,078
         
Net income (loss) per share:        
         
Basic  $ 0.03  $ 0.24  $ (0.40)  $ 1.22
Diluted  $ 0.03  $ 0.24  $ (0.40)  $ 1.19
         
Weighted average shares outstanding:        
         
Basic 48,853 49,545 49,080 49,398
Diluted 49,459 50,532 49,080 50,415
             
             
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 July 31, 2012 Basic Earnings Per Share  Diluted Earnings Per Share  Three Months Ended July 31, 2011 Basic Earnings Per Share  Diluted Earnings Per Share 
             
GAAP net income (loss)   $ 1,356  $ 0.03  $ 0.03  $ 12,076  $ 0.24  $ 0.24
Amortization of purchased intangible assets  791  0.02 0.02  1,490  0.03  $ 0.03
Release of income tax liabilities due to lapses in statutes of limitations  (581)  (0.01) (0.01)  --   --   $ -- 
Restructuring  178  0.00 0.00  --   --   $ -- 
Merger-related (income) expenses  --   --  0.00  189  0.00  $ 0.00
             
Non-GAAP net income (loss)  $ 1,744  $ 0.04  $ 0.04  $ 13,755  $ 0.27  $ 0.27
             
             
Weighted average shares outstanding:    48,853  49,459    49,545  50,532
             
             
             
  Twelve Months Ended July 31, 2012 Basic Earnings Per Share  Diluted Earnings Per Share  Twelve Months Ended July 31, 2011 Basic Earnings Per Share  Diluted Earnings Per Share 
             
GAAP net income (loss)   $ (19,869)  $ (0.40)  $ (0.40)  $ 60,078  $ 1.22  $ 1.19
Amortization of purchased intangible assets  3,163  0.06 0.06  5,961  0.12  0.12
Release of income tax liabilities due to lapses in statutes of limitations  (1,315)  (0.03) (0.03)  --   --   -- 
Restructuring  1,104  0.02 0.02  363  0.01  0.01
Merger-related expenses  66  0.00 0.00  4,889  0.10  0.10
Merger-related breakup fee  --   --  0.00  (15,000)  (0.31)  (0.30)
             
Non-GAAP net income (loss)  $ (16,851)  $ (0.35)  $ (0.35)  $ 56,291  $ 1.14  $ 1.12
             
             
Weighted average shares outstanding:    49,080  49,080    49,398  50,415
CONTACT: Rich Yerganian, LTX-Credence Corporation         Tel. 781.467.5063         Email rich_yerganian@ltxc.com

LTX Credence Logo

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX