CMOS ( $18-$17.50) PE 18 Net sales were $18.8 million, a decrease of 91 percent YOY...
FREMONT, Calif., Aug. 15 /PRNewswire/ -- Credence Systems Corporation (Nasdaq: CMOS - news), a leading manufacturer of automatic test equipment (ATE) for the worldwide semiconductor industry, today reported financial results for its third fiscal quarter ended July 31, 2001. Net sales were $18.8 million, a decrease of 91 percent from net sales of $204.0 million in the third quarter of fiscal 2000. Net sales were down 57 percent sequentially, from net sales of $43.3 million in the Company's second fiscal quarter of 2001. The net loss for the third quarter of fiscal 2001 was $22.4 million or $0.43 per diluted share, compared to a net income of $41.0 million, or $0.74 per diluted share in the third quarter of 2000.
The net loss for the third quarter of fiscal 2001 included pre-tax expenses of $1.7 million for fees and expenses associated with the acquisition of Integrated Measurement Systems, Inc. (``IMS'') as well as a pre-tax charge of approximately $1.0 million for severance payments and asset disposals associated with the Company's continuing headcount reductions. Excluding these special charges, the Company's pro-forma net loss for the third quarter of fiscal 2001 was $21.6 million, or $0.41 per diluted share. The net loss for the nine-month fiscal period ended July 31, 2001 additionally included a pre-tax charge of approximately $45.0 million related to a provision for the disposal of excess inventory and a pre-tax charge of approximately $2.0 million for severance payments and asset disposals. Excluding these special charges, the Company's pro-forma net loss for the nine-month period ended July 31, 2001, was $20.1 million, or $0.38 per diluted share.
``The semiconductor test business is clearly in the midst of an unprecedented downturn, the severity of which is even greater than that experienced in 1985,'' said Dr. Graham Siddall, president and chief executive officer of Credence. ``The low test equipment utilization rates being experienced by our customers have continued to result in a virtual cessation of orders or shipments of new production test systems. With utilization rates as low as 30 percent at some of our major customers' facilities, we do not expect a significant upturn in new orders until excess capacity has been absorbed. Our belief is that this will not occur before the end of the calendar year,'' Dr. Siddall explained. ``In the meantime, we have continued our commitment to strengthen the Company's business with continued investments in key R&D programs as well as our recent closing of the acquisition of IMS.''
``With the low production levels that we were experiencing this quarter, we actively re-deployed some of our critical manufacturing employees into R&D and G&A projects within the Company, resulting in about $1.5 million in the quarter being re-directed from what is normally cost of goods sold to operating expenses,'' said John Detwiler, senior vice president and chief financial officer of Credence. ``In addition, in order to further reduce our expenses to better match the lower revenues, we have reduced our headcount again this month, bringing the total reductions in the last six months to about 26 percent.''
Mr. Detwiler added, ``We have instituted further pay cuts, and we have moved a significant number of our employees onto a four day work week. These steps have brought our recurring cash operating expenses down about $4 million this quarter, with a decrease of another $1 to $2 million expected next quarter.''
Dr. Siddall continued, ``The management team is attempting to balance the severity of this downcycle and the financial losses that ensue with the long- term opportunity that we believe exists for the Company when we deliver next- generation, high-performance test solutions to our customers. This particular downcycle has made that task especially difficult, and we will continue to work hard to maintain the appropriate balance.'' |
