8/10...CMOS (barely misses)Reports Record Results for the Third Fiscal Quarter of 2000
FREMONT, Calif.--(BUSINESS WIRE)--Aug. 10, 2000--Credence Systems Corporation (Nasdaq:CMOS - news) today reported record results for its third fiscal quarter ended July 31, 2000. Net sales were $204.0 million, an increase of 289 percent from net sales of $52.4 million in the third quarter of fiscal 1999. Net sales were up 33% sequentially, from net sales of $153.8 million in the company's second fiscal quarter. Net income for the third quarter of fiscal 2000 was $41.0 million or $0.74 per diluted share, compared to net income of $2.9 million in the third quarter of 1999. Net income for the third quarter was up 22% sequentially from the second fiscal quarter of 2000 when the company reported net income of $33.5 million or $0.63 per diluted share.
Included in the results of the company's third quarter is an $8.3 million pre-tax charge associated with the acquisition of in-process research and development (``IPR&D'') from TMT, Inc. In addition, the company recorded a tax charge of $2.9 million for income taxes associated with this IPR&D charge. Before these special charges, the company's pro-forma net income for the third quarter was $49.3 million or $0.89 per diluted share.
Dr. Graham Siddall, Credence's president and chief executive officer said, ``Our growth continued to be robust during the quarter and we recorded more revenue in this third quarter than we did in all of fiscal 1999. Credence had a book-to-bill ratio of 1.26 to 1 even after sequential quarter-over-quarter growth in revenue of 33 percent. We believe this growth is the result of market share gains in all of our business segments.''
Credence's executive vice president and chief financial officer, Dennis P. Wolf, said ``Our operating performance continued to be strong this quarter with gross margins at 60.4 percent and operating margins before the IPR&D charge of 34.6 percent. The adjusted operating margin was the highest in our history as we recorded more income in this third fiscal quarter of 2000 than in any full year in our history. We also increased our commitment in the high-growth communications test sector with the acquisition of TMT, Inc. on May 12, 2000 and the acquisition of Modulation Instruments, Inc. on August 1, 2000.'' The TMT acquisition cost is reflected in ``Other assets'' on the July 31, 2000 balance sheet.
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, 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 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.
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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Prior
Three Months Quarter Nine Months
Ended Ended Ended
July 31, April 30, July 31,
---------------------------------------------------
2000 1999 2000 2000 1999
---------------------------------------------------
Net sales $204,000 $ 52,378 $153,754 $459,522 $116,968
Cost of goods
sold - on
net sales 80,765 24,826 62,796 186,584 59,103
--------- --------- --------- --------- ---------
Gross margin 123,235 27,552 90,958 272,938 57,865
Operating
expenses:
Research and
development 19,490 9,185 15,525 48,176 26,736
Selling,
general &
administrative 29,885 14,184 24,891 74,120 40,287
Amortization
of purchased
intangibles 3,360 446 1,355 5,491 1,044
In-process
research and
development 8,282 -- -- 8,282 --
Special charges -- -- -- -- 6,231
--------- --------- --------- --------- ---------
Total
operating
expenses 61,017 23,815 41,771 136,069 74,298
--------- --------- --------- --------- ---------
Operating
income (loss) 62,218 3,737 49,187 136,869 (16,433)
Interest and
other income
(expenses), net 5,874 (6) 2,809 9,366 (67)
--------- --------- --------- --------- ---------
Income (loss)
before income
taxes 68,092 3,731 51,996 146,235 (16,500)
Income taxes
(benefit) 27,113 1,352 18,458 54,853 (5,948)
Minority
interest
(benefit) (18) (15) 44 29 (31)
--------- --------- --------- --------- ---------
Net income
(loss) before
extraordinary
items $ 40,997 $ 2,364 $ 33,494 $ 91,353 $(10,583)
========= ========= ========= ========= =========
Gain on
extinguishment
of debt -- 488 -- -- 1,646
Net income
(loss) $ 40,997 $ 2,852 $ 33,494 $ 91,353 $ (8,937)
========= ========= ========= ========= =========
Net income
(loss) per
share
Basic $ 0.82 $ 0.07 $ 0.70 $ 1.94 $ (0.21)
========= ========= ========= ========= =========
Diluted $ 0.74 $ 0.06 $ 0.63 1.75 $ (0.21)
========= ========= ========= ========= =========
Number of
shares used in
computing per
share amount
Basic 49,802 42,514 47,984 47,200 41,748
========= ========= ========= ========= =========
==============
Diluted 55,101 44,232 53,010 52,079 41,748
========= ========= ========= ========= =========
CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Prior Quarter
July 31, April 30, October 31,
------------- ------------- ------------
2000 2000 1999
------------- ------------- ------------
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 133,498 $ 201,334 $ 52,104
Short-term investments 142,112 66,414 39,774
Accounts receivable, net 160,248 131,141 71,506
Inventories 73,392 55,701 40,284
Other current assets 24,707 23,954 24,045
--------- --------- ----------
Total current assets 533,957 478,544 227,713
Long-term investments 137,344 181,028 50,005
Property and equipment, net 54,488 48,850 43,063
Other assets 89,452 20,291 19,639
--------- --------- ----------
Total assets $ 815,241 $ 728,713 $ 340,420
========= ========= ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 41,948 $ 40,461 $ 23,611
Accrued liabilities 57,428 38,260 31,163
Income taxes payable 13,430 17,401 6,212
--------- --------- ----------
Total current
liabilities 112,806 96,122 60,986
Convertible subordinated
notes 96,213 96,249 96,610
Long term deferred
tax liability 14,262 867 1,134
Minority interest 312 330 282
Stockholders' equity 591,648 535,145 181,408
--------- --------- ----------
Total liabilities and
stockholders' equity $ 815,241 $ 728,713 $ 340,420
========= ========= ==========
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Contact:
Credence Systems
Dennis P. Wolf, 510/657-7400
Executive Vice President and CFO
Cathi W. Fox, 510/657-7400 |
