LTX-Credence Announces Fourth Quarter And Fiscal Year Results

NORWOOD, Mass., Aug. 28, 2013 (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, 2013.

Net sales for the quarter were $37,521,000, compared to the prior quarter net sales of $36,257,000. Net loss for the quarter was $(4,656,000), or $(0.10) per share on a GAAP basis. Excluding the impact of special items totaling $1,121,000, and amortization of purchased intangible assets of $396,000, non-GAAP net loss for the quarter was $(3,139,000), or $(0.07) per share.   

For the twelve-month period ended July 31, 2013, sales were $151,982,000. Net loss was $(12,127,000), or $(0.25) per share on a GAAP basis. Excluding the net impact of special items totaling $1,776,000, and amortization of purchased intangible assets of $1,582,000, net loss for the year was $(8,769,000), or $(0.18) per share on a non-GAAP basis.

Dave Tacelli, chief executive officer and president, commented, "Our fourth quarter results were in line with our expectations. While there are specific market segments showing increasing business levels, a broad based recovery in our industry has yet to materialize. However, if the trends we see in certain market segments continue, we expect calendar year 2014 to be a growth year for the industry and our test business."

First Quarter Fiscal 2014 Outlook

For the fiscal quarter ending October 31, 2013 net sales are expected to be in the range of $31 million to $35 million. Non-GAAP net loss is expected to be in the range of $(0.14) to $(0.09) per share, assuming 48 million shares outstanding. The non-GAAP net loss guidance excludes amortization of purchased intangible assets of approximately $192,000.

The Company will conduct a conference call today, August 28, 2013, at 08:00 AM EDT 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 August 30, 2013, via telephone, by dialing (855) 859-2056; conference ID number 28666472. 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 July 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 first fiscal quarter 2014, 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)     
(unaudited)    
     
     
 ASSETS  July 31, 2013 July 31, 2012
     
Current assets     
Cash and cash equivalents   $ 28,235  $ 29,446
Marketable securities  96,159 107,728
Accounts receivable - trade, net  28,102 31,182
Accounts receivable - other, net  963 740
Inventories, net  29,139 28,850
Prepaid expenses and other current assets  2,497 3,440
Total current assets  185,095 201,386
     
Property and equipment, net  16,647 18,229
Intangible assets, net  1,571 3,153
Goodwill  43,030 43,030
Other assets  1,258 1,270
Total assets   $ 247,601  $ 267,068
     
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities     
Accounts payable   $ 13,266  $ 12,734
Other accrued expenses  19,352 19,736
Deferred revenues  5,084 5,347
Total current liabilities  37,702 37,817
     
Other long-term liabilities  11,402 13,547
Stockholders' equity  198,497 215,704
Total liabilities and stockholders' equity   $ 247,601  $ 267,068
     
     
LTX-Credence Corporation    
Consolidated Statements of Operations    
(in thousands, except earnings per share data)    
(unaudited)    
         
  Three Months Ended Twelve Months Ended
  July 31, July 31,
  2013 2012 2013 2012
         
Net sales  $ 37,521  $ 43,462  $ 151,982  $ 132,134
Cost of sales 17,525 19,696 71,223 63,637
Gross profit  19,996 23,766 80,759 68,497
         
Engineering and product development expenses 13,311 12,360 52,314 49,864
Selling, general, and administrative expenses 10,851 9,852 39,253 36,348
Amortization of purchased intangible assets  396 791  1,582  3,163
Restructuring   (179)  178 476 1,104
Income (loss) from operations (4,383) 585 (12,866) (21,982)
         
Other income, net 12 289 464 1,175
Income (loss) before provision for (benefit from) income taxes (4,371) 874 (12,402) (20,807)
Provision for (benefit from) income taxes 285 (482) (275) (938)
Net income (loss)  $ (4,656)  $ 1,356  $ (12,127)  $ (19,869)
         
Net income (loss) per share:        
         
Basic  $ (0.10)  $ 0.03  $ (0.25)  $ (0.40)
Diluted  $ (0.10)  $ 0.03  $ (0.25)  $ (0.40)
         
Weighted average shares outstanding:        
         
Basic 47,595 48,853 47,719 49,080
Diluted 47,595 49,459 47,719 49,080
     
     
LTX-Credence Corporation     
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)    
(In thousands, except per share amounts)    
(unaudited)    
           
  Three Months  Basic and Diluted Three Months  Basic  Diluted 
  Ended  Earnings  Ended  Earnings  Earnings 
  July 31, 2013 Per Share  July 31, 2012 Per Share  Per Share 
           
GAAP net income (loss)  $ (4,656)  $ (0.10)  $ 1,356  $ 0.03  $ 0.03
Amortization of purchased intangible assets  396  0.01  791  0.02 0.02
Release of income tax liabilities due to lapses in statutes of limitations  --   --   (581)  (0.01) (0.01)
Restructuring and other  1,121  0.02  178  0.00 0.00
           
Non-GAAP net income (loss)   $ (3,139)  $ (0.07)  $ 1,744  $ 0.04  $ 0.04
           
Weighted average shares outstanding:   47,595    48,853  49,459
           
           
  Twelve Months  Basic and Diluted Twelve Months  Basic and Diluted  
  Ended  Earnings  Ended  Earnings   
  July 31, 2013 Per Share  July 31, 2012 Per Share   
           
GAAP net loss  $ (12,127)  $ (0.25)  $ (19,869)  $ (0.40)  
Amortization of purchased intangible assets  1,582  0.03  3,163  0.06  
Release of income tax liabilities due to lapses in statutes of limitations  --   --   (1,315)  (0.03)  
Restructuring and other  1,776  0.04  1,104  0.02  
Merger-related expenses  --   --   66  0.00  
           
Non-GAAP net loss   $ (8,769)  $ (0.18)  $ (16,851)  $ (0.34)  
           
Weighted average shares outstanding:   47,719    49,080  
CONTACT: Rich Yerganian, LTX-Credence Corporation         Tel. 781.467.5063         Email rich_yerganian@ltxc.com

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