CMOS ( big miss 27c vs 18c) Report ( $24 close down $21.75) for the Second Fiscal Quarter
FREMONT, Calif., May 16 /PRNewswire/ --
Credence Systems Corporation (Nasdaq: CMOS), a leading manufacturer of
automatic test equipment (ATE) for the worldwide semiconductor industry, today
reported financial results for its second fiscal quarter ended April 30, 2001.
Net sales were $43.3 million, a decrease of 72 percent from net sales of
$153.8 million in the second quarter of fiscal 2000. Net sales were down
65 percent sequentially, from net sales of $123.2 million in the company's
first fiscal quarter of 2001.
The net loss for the second quarter of fiscal
2001 was $43.7 million or $0.83 per share, compared to a net income of
$33.5 million or $0.63 per diluted share in the second quarter of 2000.
The net loss for the second quarter of fiscal 2001 included a pre-tax
provision of $45 million for the disposal of excess inventory as well as a
pre-tax charge of approximately $2 million for severance payments and asset
disposals associated with the Company's recent headcount reductions. Excluding
these special charges, the Company's pro-forma net loss for the second quarter
of fiscal 2001 was $13.6 million or $0.26 per share. For the six month period
ended April 30, 2001, the Company's pro forma net income was $1.5 million or
$0.03 per diluted share.
"Our business, particularly with the semiconductor outsourcing and foundry
sector, has turned down dramatically in the past two quarters," said
Dr. Graham Siddall, president and chief executive officer of Credence Systems
Corporation. "With over 50 percent of our revenues derived from the
subcontract test houses, the low test equipment utilization rates being
experienced by these customers have led to a virtual cessation of orders for
new production ATE equipment. With utilization rates averaging about
50 percent, we do not expect a significant upturn in new orders until excess
capacity has been absorbed. Our belief is that this could occur before the end
of the calendar year," Siddall explained. "In the meantime, we have continued
our commitment to strengthen the Company's business with our announcement
today of the signing of a definitive agreement to acquire Integrated
Measurement Systems, Inc. ("IMS"). IMS (Nasdaq: IMSC) is a leader in the
design and delivery of high performance integrated circuit validation systems,
headquartered in Beaverton, Oregon, near our Hillsboro facility. IMS and
Credence offer complementary system and software solutions. While IMS supports
the IC design engineer at the prototype stage for validating and
characterizing complex digital, mixed-signal, and memory ICs, Credence focuses
predominately on the high-volume production oriented customer. We believe the
combination of the two companies will lead to better test solutions and
increase the total available market addressed by the combined company."
"With the dramatic decline in revenue for the Company, and as the length
and depth of this industry downturn became clearer during the quarter, we
decided to record significant provisions for excess inventories," said
Mr. John Detwiler, senior vice president and chief financial officer of
Credence Systems Corporation. "These provisions were primarily booked for our
logic and mixed-signal product lines.
"In order to reduce our expenses to better match the lower revenues, we
have in the last three months reduced our headcount by 21 percent," Detwiler
added. "In addition to these reductions, we have reduced our work schedules
and instituted pay cuts. These steps have brought our recurring cash operating
expenses down about $5 million this quarter with another $3 to $4 million
expected next quarter."
Dr. Siddall continued, "With these cost reductions, we have tightened the
focus of our engineering investments and further aligned them with our
long-term growth goals. We continue to be focused on developing and delivering
next-generation, high-performance test solutions and believe that we are well
positioned for growth when the industry turns up."
Conference Call
Credence will hold a one-hour conference call today, at 6:00 p.m.
(Eastern). Participants will include Dr. Graham Siddall, president and chief
executive officer, Dave Ranhoff, chief operating officer, and John Detwiler,
senior vice president finance and chief financial officer of Credence Systems
Corporation and Keith Barnes, chairman and chief executive officer of
Integrated Measurement Systems.
The call-in number is:
Domestic and International: 888-391-0105
The replay number is: Domestic 800-633-8284, Passcode: 18562036
International: 858-812-6440, Passcode: 18562036
Please call 10 minutes prior to the scheduled start time.
The replay runs through May 23, 2001, 5:00 p.m. PDT. Credence's earnings
conference call will also be broadcast simultaneously over the Internet.
Please visit www.credence.com to access the call. If you have any questions or
comments, please contact Zaldy Odfina at 510-492-3229. |
