ADE Corporation Announces
First Quarter Fiscal 2000
Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--Aug. 30, 1999--ADE Corporation
(NASDAQ:ADEX - news) today announced revenue of $12.4 million for the first quarter of
fiscal 2000 ended July 31, 1999, compared with $24.0 million reported for the first quarter of
fiscal 1999. Net loss for the first quarter of fiscal 2000 was $7.2 million, or $0.54 per diluted
share, compared to a net loss of $0.8 million, or $0.06 per diluted share, for the year-earlier
quarter, with weighted average shares outstanding during the comparable periods of 13.2
million and 12.9 million, respectively. Weighted average shares for the three months ended
July 31, 1999 and 1998 exclude stock options outstanding during the period as the effect
would be antidilutive. The net loss for the first quarter of fiscal 2000 includes a $1.5 million
charge, or $0.11 per share, for costs associated with the previously announced consolidation
of ADE's Charlotte, North Carolina operations into other Company facilities. The Company
expects to incur additional charges in future quarters as a result of the consolidation, which has
not been completed.
Gross margin for the three months ended July 31, 1999 decreased to 40% from 44% in the
prior year, primarily due to lower sales volume of products, industry pricing pressure, and
increased costs related to the Company's expanded worldwide customer service organization.
ADE President and Chief Executive Officer Robert Abbe stated, ``We are very encouraged
by the customer interest we are experiencing in our markets and we are optimistic that we will
be able to capitalize on long-term market trends. Although visibility remains cloudy as to when
the industry rebound will have a positive effect on ADE's financial performance, recent order
activity might be a signal that the market is beginning to build momentum. For the second
sequential quarter we have seen an increase in backlog, to $24.1 million from $20.6 million at
April 30, 1999.'
``During the quarter, we were pleased to introduce several significant new products at
Semicon West, the major semiconductor equipment trade show,' continued Abbe. ``These
products include the E-Squared advanced flatness tool for 200mm wafers, the
NanoMapper(TM) for measurement of nanotopology on the wafer surface, the UltraGage(R)
9530, the first tool developed by ADE specifically for device manufacturers and the
EpiScan(TM) 3000 tool for the measurement of 300mm epitaxial wafers. The Company also
introduced a number of software tools designed to extend the value of ADE products to our
customers. This software included Device Toolbox(TM) for enhanced analytic capabilities at
device fabs and Wafer Analyzer(TM), which allows process engineers to better analyze
critical measurement data that they collect during the wafer manufacturing process.'
``While there are some concerns about the overall health of the data storage industry, we are
encouraged by the interest shown by our customers in our newest products. Our metrology
products are used to improve yields, particularly in the new GMR recording technology.
Given the current low yields being experienced by our customers, demand for ADE tools has
been improving.'
``In May our ADE Phase Shift, Inc. subsidiary began operations in its new 60,000 square
foot facility in Tucson, Arizona. This facility will provide significantly increased research and
manufacturing capabilities. The previously mentioned NanoMapper was developed by ADE
Phase Shift using its proprietary interferometric technology and is being manufactured in
Tucson.'
Concluded Abbe, ``With momentum beginning to build for an eventual industry turnaround,
we continue to advance our technology capabilities through internal development and strategic
acquisitions. We believe these initiatives will enhance ADE's position as the supplier of choice
when our customers begin to make production purchases of metrology and inspection
equipment.'
This news release contains certain forward-looking statements that are subject to known and
unknown risks and uncertainties that could cause actual results to differ materially from those
expressed or implied by such statements. Such risks and uncertainties include, but are not
limited to our visibility and long-term trends in the industry, demand for the Company's
products, further increases in backlog and the ability of the Company to develop and
manufacture products that meet customer needs within the timeframes required by customers.
ADE Corporation is a leading supplier of metrology and inspection systems for the silicon
wafer and data storage industries. The Company's systems analyze and report product quality
at critical manufacturing process steps and provide quality certification data that is relied upon
by semiconductor and data storage manufacturers. The Company's systems also are used in
the fabrication of integrated circuits.
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ADE CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three months ended
July 31,
1999 1998
Revenue $ 12,362 $ 24,028
Cost of revenue 7,249 13,457
Gross profit 5,113 10,571
Operating expenses:
Research and development 5,556 6,652
Marketing and sales 2,717 3,122
General and administrative 3,560 2,878
Total operating expenses 11,833 12,652
Loss from operations (6,720) (2,081)
Interest income, net 148 761
Loss before benefit from income
taxes and equity in net loss
of affiliated companies (6,572) (1,320)
Benefit from income taxes 0 (514)
Loss before equity in net loss
of affiliated companies (6,572) (806)
Equity in net loss of affiliated
companies (614) (7)
Net loss $ (7,186) $ (813)
Basic loss per share $(0.54) $(0.06)
Diluted loss per share $(0.54) $(0.06)
Weighted average shares
outstanding - basic 13,198 12,923
Weighted average shares
outstanding - diluted 13,198 12,923
ADE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
July 31, 1999 April 30, 1999
(unaudited)
Assets
Cash and cash equivalents $ 49,758 $ 61,278
Accounts receivable, net 11,934 11,843
Inventories 23,435 22,178
Other current assets 14,854 15,426
Total current assets 99,981 110,725
Fixed assets, net 29,259 28,268
Investments 3,403 3,869
Restricted cash 3,483 3,533
Other assets 7,718 7,035
Total assets $143,844 $153,430
Liabilities and Stockholders' Equity
Total current liabilities $ 17,516 $ 20,071
Long-term debt 12,379 12,537
Total stockholders' equity 113,949 120,822
Total liabilities and stockholders'
equity $143,844 $153,430
Contact:
ADE Corporation
Mark Shooman
Vice President and CFO
(781) 467-3702 |
