Rudolph's Second Quarter Revenue Increases 16% Over Prior Year
EPS Grows To $0.25
Anticipates Continued Profitability in Third Quarter Despite Industry Downturn
FLANDERS, N.J.--(BUSINESS WIRE)--July 30, 2001-- Rudolph Technologies, Inc. (Nasdaq:RTEC - news), a worldwide leader in the design, development, manufacture and support of high-performance process control metrology systems used by semiconductor device companies, today announced financial results for the second quarter ended June 30, 2001.
The Company's second quarter revenue increased 16% to $23.1 million compared to $19.9 million in the prior year period. The year-over-year revenue increase primarily reflects higher unit volume shipments to existing customers and expanded sales of the Company's 300 millimeter and copper products. As anticipated, revenue on a sequential basis decreased 24% compared to $30.6 million in the 2001 first quarter. The lower sequential revenue is due to push-outs associated with the well-documented industry slowdown.
``As evidenced by our year-over-year revenue and earnings growth, and the release of two new families of metrology tools at Semicon West earlier this month, Rudolph is well positioned to lead the device manufacturers into the industry's next upturn,'' commented Paul F. McLaughlin, Chairman and CEO. ``We were very pleased with the response to our new product releases - the MetaPULSE II and S200-ultra/S300-ultra - and we fully expect that device manufacturers will continue to look more and more in our direction for their technology purchases.''
Second quarter gross margin was 52%, compared to 54% in the prior year period and 55% in the first quarter ended March 31, 2001. The gross margin decrease in comparison to both periods is due to Customer Service and fixed manufacturing costs being a higher component of a lower revenue base in the second quarter. Product margins remain strong. Net income available to common shareholders was $4.1 million, or $0.25 per diluted share, compared to $3.7 million, or $0.24 per diluted share on a comparable pro forma basis for the second quarter ended June 30, 2000.
Research & development (R&D) expenses for the quarter ended June 30, 2001 totaled $3.5 million, an increase of 77%, compared to $2.0 million in the comparable prior year period. As a percentage of revenue, R&D was 15%, compared to 10% in the June 2000 quarter.
Selling, general & administrative (S,G&A) expenses decreased to $2.8 million compared to $3.2 million in the prior year period, reflecting the effects of the Company's cost cutting initiatives. As a percentage of revenue, S,G&A was 12% in the 2001 second quarter, compared to 16% in the comparable prior year period.
Business Outlook
``It is anticipated that the third quarter may be the industry's bottom,'' added McLaughlin. ``And given our very strong market position in copper and 300mm measurement tools, we believe we are well positioned to emerge from the downturn ahead of the rest of the semiconductor equipment industry. As a result of our ability to develop and deliver leading edge products, we have long held the belief that we are one of the last semiconductor equipment companies to be affected by a downturn, as our second quarter results indicate. More importantly, we believe Rudolph will be one of the first companies to benefit in an up-cycle as device companies increase spending for advanced processing technology in order to position themselves as end-user demand rises,'' concluded McLaughlin.
The Company currently anticipates revenue for the third quarter ending September 30, 2001, to be approximately 30% to 35% below this year's second quarter revenue of $23.0 million. The Company currently anticipates third quarter earnings to be approximately $0.03 to $0.04 per diluted share.
For the full year ending December 31, 2001, the Company currently expects total revenue to be approximately equal to the 2000 level of $88.1 million. The Company currently anticipates that 2001 earnings will be between $0.80 and $0.82 per diluted share.
Conference call
As a reminder, Rudolph Technologies will be hosting a conference call on Monday, July 30, 2001 at 4:45PM EST. A live webcast will also be available to investors at www.vcall.com. To listen to the live call, please go to the Web site at least fifteen minutes early to register, download and install any necessary audio software.
About Rudolph Technologies
Rudolph is a worldwide leader in the design, development, manufacture and support of high-performance process control metrology systems used by semiconductor device manufacturers. The Company provides a full-fab solution through its families of proprietary systems for both transparent and opaque thin film measurement. Rudolph's product development has successfully anticipated and addressed many emerging trends that are driving the semiconductor industry's growth. The Company's success in creating complementary metrology applications through aggressive research and development is key to Rudolph's strategy for continued technological and market leadership.
This press release contains forward-looking statements, including statements related to our recovery from an industry downturn, and our revenue and earnings expectations for the fourth quarter and full year of 2001. Actual results may differ materially from those projected due to a number of risks, including changes in customer demands for our existing and new products, the timing, cancellation or delay of customer orders and shipments and the timing of revenue recognition of shipments, new product offerings from our competitors, changes in or an inability to execute Rudolph Technologies' business strategy, unanticipated manufacturing or supply problems, and changes in tax rules. Rudolph Technologies cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading ``Risk Factors'' in Rudolph Technologies' Form 10K filed for the year ended December 31, 2000. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Rudolph Technologies does not assume any obligation to update the forward-looking information contained in this press release.
RUDOLPH TECHNOLOGIES
BALANCE SHEETS
($000)
June 30, December 31,
2001 2000
------------- -------------
ASSETS
Current assets
Cash $ 86,636 $ 29,736
Accounts receivable, net 26,823 27,132
Inventories 25,259 23,773
Prepaid and other assets 1,909 4,527
------------- -------------
Total current assets 140,627 85,168
Net property, plant and equipment 5,359 3,824
Intangibles 2,351 2,520
Deferred taxes 6,121 6,628
Other assets 325 414
------------- -------------
Total assets $ 154,783 $ 98,554
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 6,329 $ 7,062
Other current liabilities 9,343 7,919
------------- -------------
Total current liabilities 15,672 14,981
Other long-term liabilities 45 65
------------- -------------
Total liabilities 15,717 15,046
Stockholders' equity 139,066 83,508
------------- -------------
Total liabilities & stockholders' equity $ 154,783 $ 98,554
============= =============
RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
----------- ------------ ----------- -----------
Revenues $ 23,088 $ 19,901 $ 53,649 $ 35,743
Cost of revenues 11,089 9,234 24,902 17,202
----------- ------------ ----------- -----------
Gross profit 11,999 10,667 28,747 18,541
Operating Expenses
Research & development 3,481 1,966 6,427 3,706
Selling, general
& administrative 2,760 3,213 7,501 6,292
Amortization 85 85 169 169
----------- ------------ ----------- -----------
Operating income 5,673 5,403 14,650 8,374
Interest income
and other, net (860) (545) (1,575) (1,044)
Cumulative effect on
prior years of the
application of SAB 101,
net of tax of $924 - - - 1,458
Provision (benefit)
for income taxes 2,416 (2,564) 6,006 (1,235)
----------- ------------ ----------- -----------
Net income $ 4,117 $ 8,512 $ 10,219 $ 9,195
=========== ============ =========== ===========
Net income per share:
Basic $ 0.26 $ 0.58 $ 0.65 $ 0.63
Diluted $ 0.25 $ 0.54 $ 0.62 $ 0.58
Pro forma net income
per share (1):
Basic $ 0.26 $ 0.25 $ 0.65 $ 0.30
Diluted $ 0.25 $ 0.24 $ 0.62 $ 0.28
Weighted average
shares outstanding:
Basic 16,039,391 14,730,631 15,703,506 14,707,850
Diluted 16,712,286 15,756,738 16,386,236 15,820,062
(1) Pro forma net income per share in 2000 excludes a tax adjustment
recorded in the second quarter that increased net income by $4.8
million. |
