Credence Systems Reports Record Results for the Second Fiscal Quarter of 2000
Business Editors/High-Tech Writers
FREMONT, Calif.--(BUSINESS WIRE)--May 15, 2000--Credence Systems
Corporation (Nasdaq NMS:CMOS) today reported record results for its
second fiscal quarter ended April 30, 2000. Net sales were $153.8
million, an increase of 304 percent from net sales of $38.1 million in
the second quarter of fiscal 1999. Net sales were up 51% sequentially,
from net sales of $101.8 million in the company's first fiscal
quarter. Net income for the second quarter of fiscal 2000 was $33.5
million or $1.26 per diluted share, compared to a net loss of $5.2
million in the second quarter of 1999. Net income for the second
quarter was up 99% sequentially from the first fiscal quarter of 2000
when the company reported net income of $16.9 million or $0.71 per
diluted share.
Dr. Graham Siddall, Credence's president and chief executive
officer said, "We are extremely pleased with our results this quarter.
Although we are only half way through fiscal 2000, we have already
surpassed the company's all-time highs for revenue, earnings and
bookings in any one fiscal year. Bookings remained strong, with a
book-to-bill of 1.4 even after a sequential growth in revenue of 51
percent. Orders from new customers during the quarter represented
about 25 percent of total bookings."
Credence's executive vice president and chief financial officer,
Mr. Dennis P. Wolf, said "The trend in operational improvements
continued this quarter. Our gross margin of 59.2% was the highest
since the third quarter of 1996 and up from 57.7% in the first quarter
of this fiscal year. Our operating margin of 32 percent was the
highest in our history."
Mr. Wolf continued, "The balance sheet is the strongest in
Credence's history, with cash and investments of $449 million. On
February 25, 2000 we completed our follow-on offering which raised
$288 million".
Credence Systems Corporation is a leader in the manufacture of
automatic test equipment (ATE) for the worldwide semiconductor
industry. Credence offers a wide range of products with test
capabilities for digital, mixed-signal, and non-volatile memory
semiconductors. Utilizing its proprietary CMOS technologies, Credence
products are designed to meet the strict time-to-market and ownership
requirements of its customers.
Headquartered in Fremont, California, the company maintains
advanced production and design facilities in Hillsboro, Oregon.
Credence, an ISO 9001 certified manufacturer, is listed on the Nasdaq
National Market under the symbol CMOS. More information is available
at www.credence.com/.
Statements in this release that are forward looking and involve
known and unknown risks and uncertainties, which may cause the
Company's actual results in future periods to be materially different
from the future performance suggested in this release. Such factors
include, but are not limited to, economic and currency instability in
the Asia Pacific region, fluctuation in customer demand, timing and
volume of orders and shipments, competition and pricing pressures,
reliability and quality issues, the Company's ability to complete the
development of its new products, product mix, overhead absorption,
cyclicality and downturns in the semiconductor industry, continued
dependence on "turns" orders to achieve revenue objectives, the
Company's ability to have an appropriate amount of production capacity
in a timely manner, the timing of new technology, product
introductions, the risk of early obsolescence and the Company's
ability to control expenses (including the ability to identify and
successfully institute additional cost-saving measures).
Further, the Company operates in an industry sector where
securities values are highly volatile and may be influenced by
economic and other factors beyond the Company's control. Reference is
made to the discussion of risk factors detailed in the Company's
filings with the Securities and Exchange Commission, including its
reports on Form 10-K and 10-Q. The Company assumes no obligation to
update the information in this press release.
Note to Editors: Credence, Credence Systems, Kalos, Personal Kalos
and Quartet are trademarks of Credence Systems Corporation. Other
trademarks, which may be mentioned in this release, are the
intellectual property of their respective owners.
-0-
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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Prior
Three Months Quarter Six Months
Ended Ended Ended
April 30, January 31, April 30,
2000 1999 2000 2000 1999
Net sales $ 153,754 $ 38,100 $ 101,768 $ 255,522 $ 64,590
Cost of
goods
sold
- on net
sales 62,796 19,001 43,023 105,819 34,277
--------- --------- --------- --------- ---------
Gross
margin 90,958 19,099 58,745 149,703 30,313
Operating
expenses:
Research
and
development 16,880 9,146 13,937 30,817 18,149
Selling,
general &
admini-
strative 24,891 13,872 19,344 44,235 26,103
Special
charges -- 6,231 -- -- 6,231
--------- --------- --------- --------- ---------
Total
operating
expenses 41,771 29,249 33,281 75,052 50,483
--------- --------- --------- --------- ---------
Operating
income
(loss) 49,187 (10,150) 25,464 74,651 (20,170)
Interest
and other
income
(expenses),
net 2,809 240 683 3,492 (61)
--------- --------- --------- --------- ---------
Income
(loss)
before
income
taxes 51,996 (9,910) 26,147 78,143 (20,231)
Income
taxes
(benefit) 18,458 (3,571) 9,282 27,740 (7,300)
Minority
interest
(benefit) 44 (8) 3 47 (46)
--------- --------- --------- --------- ---------
Net
income
(loss)
before
extra-
ordinary
items 33,494 (6,331) 16,862 50,356 (12,885)
========= ========= ========= ========= =========
Gain on
extin-
guishment
of debt -- 1,158 -- -- 1,158
Net income
(loss) 33,494 $ (5,173) 16,862 50,356 $ (11,727)
========= ========= ========= ========= =========
Net income
(loss)
per share
Basic $ 1.40 $ (0.25) $ 0.77 $ 2.19 $ (0.57)
========= ========= ========= ========= =========
Diluted $ 1.26 $ (0.25) $ 0.71 $ 2.00 $ (0.57)
========= ========= ========= ========= =========
Number of
shares
used in
computing
per share
amount
Basic 23,992 20,811 21,952 22,950 20,610
========= ========= ========= ========= =========
Diluted 26,536 20,811 23,753 25,194 20,610
========= ========= ========= ========= =========
CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Prior
Quarter
April 30, January 31, October 31,
2000 2000 1999
(unaudited)(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $201,334 $ 42,914 $ 52,104
Short-term investments 66,414 25,711 39,774
Accounts receivable, net 131,141 102,826 71,506
Inventories 55,701 44,879 40,284
Other current assets 23,954 24,437 24,045
-------- -------- --------
Total current assets 478,544 240,767 227,713
Long-term investments 181,028 73,484 50,005
Property and equipment, net 48,850 43,706 43,063
Other assets 20,291 18,579 19,639
-------- -------- --------
Total assets 728,713 $376,536 $340,420
======== ======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 40,461 $ 27,044 $ 23,611
Accrued liabilities 38,260 32,718 31,163
Income taxes payable 17,401 9,337 6,212
-------- -------- --------
Total current liabilities 96,122 69,099 60,986
Convertible subordinated notes 97,116 97,740 97,744
Minority interest 330 286 282
Stockholders' equity 535,145 209,411 181,408
-------- -------- --------
Total liabilities and
stockholders' equity 728,713 $376,536 $340,420
======== ======== ========
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CONTACT: Credence Systems
Dennis P. Wolf, 510/657-7400 (Executive VP and CFO)
Cathi W. Fox, 510/657-7400 (Investor Relations)
KEYWORD: CALIFORNIA NEW YORK
INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS EARNINGS
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