LTX-Credence Announces First Quarter Results

NORWOOD, Mass., Dec. 3, 2013 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), today announced financial results for its first fiscal quarter ended October 31, 2013.

Net sales for the quarter were $32,767,000, compared to the prior quarter net sales of $37,521,000. Net loss for the quarter was $(6,900,000), or $(0.14) per share on a GAAP basis. Excluding the impact of acquisition related expenses totaling $1,700,000, and amortization of purchased intangible assets of $193,000, non-GAAP net loss for the quarter was $(5,007,000), or $(0.10) per share.

Dave Tacelli, chief executive officer and president, commented, "Our first quarter results included a stronger contribution of Diamondx sales as customers started volume production of their new designs. We expect this ramp to continue in our second fiscal quarter, offsetting some of the seasonality we usually experience during this time of the year.

"Yesterday we announced the closing of the acquisition of Multitest and Everett Charles Technologies (ECT). We are excited to move forward as a new company, offering best-in-class products, as well as integrated test solutions serving the semiconductor and printed circuit board (PCB) markets."

Second Quarter Fiscal 2014 Outlook

Guidance for the fiscal quarter ending January 31, 2014 includes 2 months of Multitest and ECT estimates combined with a full quarter of LTX-Credence estimates. Net sales are expected to be in the range of $69 million to $75 million. Non-GAAP net loss is expected to be in the range of $(0.21) to $(0.15) per share, assuming 48 million shares outstanding. The non-GAAP guidance excludes amortization of purchased intangible assets, and one-time special charges related to the acquisition. Acquisition related fees such as legal, tax, and banking fees are expected to be approximately $2M during the quarter. We expect other charges to be incurred during the quarter related to restructuring, amortization of additional purchased intangible assets, and purchase price accounting adjustments, but these amounts cannot be estimated at this time. LTX-Credence stand-alone estimates for the quarter would have been for net sales to be in the range of $25 million to $29 million, and non-GAAP net loss to be in the range of $(0.20) to $(0.16) per share.

The Company will conduct a conference call today, December 3, 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 December 5, 2013, via telephone, by dialing (855) 859-2056; conference ID number 97980302. 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 October 31, 2013 excludes the amortization of purchased intangible assets, and acquisition related expenses. 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 second 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, 2013. 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   October 31, 2013  July 31, 2013
     
Current assets     
Cash and cash equivalents   $ 30,716  $ 28,235
Marketable securities  87,269 96,159
Accounts receivable - trade, net  28,061 28,102
Accounts receivable - other, net  500 963
Inventories, net  29,238 29,139
Prepaid expenses and other current assets  3,031 2,497
Total current assets  178,815 185,095
     
Property and equipment, net  16,978 16,647
Intangible assets, net  1,378 1,571
Goodwill  43,030 43,030
Other assets  1,246 1,258
Total assets   $ 241,447  $ 247,601
     
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities     
Accounts payable   $ 15,975  $ 13,266
Other accrued expenses  19,007 19,352
Deferred revenues  3,483 5,084
Total current liabilities  38,465 37,702
     
Other long-term liabilities  11,288 11,402
Stockholders' equity  191,694 198,497
Total liabilities and stockholders' equity   $ 241,447  $ 247,601
 
 
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
  Three Months Ended
  October 31,
  2013 2012
     
Net sales  $ 32,767  $ 43,188
Cost of sales 15,636 19,684
Gross profit  17,131 23,504
     
Engineering and product development expenses 12,878 12,392
Selling, general, and administrative expenses 10,925 10,006
Amortization of purchased intangible assets  193 396
Restructuring   --   231
Income (loss) from operations (6,865) 479
     
Other income, net 105 209
Income (loss) before provision for income taxes (6,760) 688
Provision for income taxes 140 139
Net income (loss)  $ (6,900)  $ 549
     
Net income (loss) per share:    
     
Basic  $ (0.14)  $ 0.01
Diluted  $ (0.14)  $ 0.01
     
Weighted average shares outstanding:    
     
Basic 47,900 48,303
Diluted 47,900 48,711
 
 
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 
  October 31, 2013 Per Share  October 31, 2012 Per Share  Per Share 
           
GAAP net income (loss)  $ (6,900)  $ (0.14)  $ 549  $ 0.01  $ 0.01
Amortization of purchased intangible assets  193  0.00  396  0.01 0.01
Income tax expense from foreign entity mergers  --   --   167  0.00 0.00
Restructuring  --   --   231  0.00 0.00
Acquisition related expenses  1,700  0.04  --   --   -- 
           
Non-GAAP net income (loss)   $ (5,007)  $ (0.10)  $ 1,343  $ 0.03  $ 0.03
           
Weighted average shares outstanding:   47,900    48,303  48,711
CONTACT: Rich Yerganian, LTX-Credence Corporation         Tel. 781.467.5063         Email rich_yerganian@ltxc.com

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