Rudolph Reports Full Year 2001 Results
Maintains Quarterly Profitability Throughout 2001
FLANDERS, N.J.--(BUSINESS WIRE)--Jan. 28, 2002--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 fourth quarter and the full year ended December 31, 2001.
Full Year 2001 Results
For the full year ended December 31, 2001, total revenue was $79.4 million, compared to $88.1 million for the year ended December 31, 2000. The Company maintained profitability throughout 2001, as net income was $11.7 million, or $0.71 per diluted share, compared to $13.9 million, or $0.88 per diluted share on a pro forma basis for the year-ago period. The lower year-over-year results were due to reduced capital equipment spending by semiconductor chip manufacturers and push-outs and cancellations of existing orders associated with the well-documented industry slowdown.
``We were successful in maintaining profitability every quarter in 2001, despite the industry challenges,'' commented Paul F. McLaughlin, Chairman and Chief Executive Officer. ``By designing tools to help chipmakers meet the metrology roadblocks identified in the ITRS for 2005 and beyond, we remain a technical leader, which is clearly reflected in our full-year financial results. Furthermore, the investments we made in our R&D, infrastructure and manufacturing facilities, allow Rudolph to be in a stronger position for the industry's recovery.''
Fourth Quarter Results
Rudolph reported fourth quarter revenue of $10.7 million, in-line with the guidance management previously provided. This compared to revenue levels of $15.1 million in the Company's third quarter, and $28.9 million in the fourth quarter of 2000. The lower year-over-year and sequential revenue was due to order push-outs, cancellations, and generally poor business conditions in the semiconductor industry.
Net income exceeded the Company's guidance and was $662,000, or $0.04 per diluted share, compared to $859,000, or $0.05 per diluted share in the third quarter of 2001. Net income was $5.7 million, or $0.36 per diluted share on a comparable pro forma basis for the fourth quarter ended December 31, 2000. Fourth quarter gross margin was 39%, compared to 45% in the third quarter and 55% in the fourth quarter one year ago. The gross margin decrease in comparison to both periods was due to Customer Support and fixed manufacturing costs being a higher component of a lower revenue base.
Research & development (R&D) expenses for the quarter ended December 31, 2001 totaled $2.0 million, compared to $2.9 million in the comparable prior year period. As a percentage of revenue, R&D was 19%, compared to 10% in the December 2000 quarter. The sequentially lower spending resulted from timing issues associated with new engineering prototypes received in prior periods as well as the effect of the Company's eleven shut down days in the fourth quarter of 2001. The Company expects R&D spending to represent approximately the same percentage of revenue in the first quarter of 2002.
Selling, general & administrative (S,G&A) expenses decreased to $1.8 million, compared to $2.9 in the third quarter of 2001, and $4.4 million in the prior year period. The sequential and year-over-year decrease reflected the effects of lower commissions, the completion of certain infrastructure projects in prior periods, the Company's shut down in the fourth quarter, and other cost reduction initiatives. The Company does not currently anticipate any shutdown days for the first quarter ending March 31, 2002. As a percentage of revenue, S,G&A was 17% in the 2001 fourth quarter, compared to 15% in the comparable prior year period. The Company expects SG&A will increase in absolute dollars in the first quarter of 2002.
Balance Sheet Strength
At December 31, 2001, the Company's cash and cash equivalents totaled $94.6 million. Working capital was $128.6 million, compared to $70.2 million at December 31, 2000.
``Financially, we are stronger today than at any time in the Company's history. Even after our successful secondary offering in February 2001, cash increased 23% in the remaining nine months of 2001. This strong financial position enables Rudolph to continue developing and delivering products even during the industry's down cycle,'' concluded McLaughlin.
Outlook
The Company currently anticipates revenue for the first quarter ending March 31, 2002 to be up 5 to 10%. The Company expects that 2002 first quarter earnings will be 0 to 3 cents per diluted share.
The Company currently expects sequential growth in the first quarter of 2002. Visibility beyond Q1 is extremely limited; nonetheless, for the full year ending December 31, 2002, Rudolph currently projects total revenue to again exceed industry growth averages. Earnings are forecasted to track revenue and to be back-end loaded as the industry is expected to recover as the year progresses.
Conference call
Rudolph Technologies will be hosting a conference call today 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 anticipated leadership position in an industry recovery, and our revenue and earnings expectations for the first quarter and full year of 2002. Actual results may differ materially from those projected due to a number of risks, including the impact of the slowdown in the overall economy and the uncertainty of the current global political environment following the recent terrorist attacks, 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)
December 31, December 31,
---------------------------------
2001 2000
--------------- ---------------
ASSETS
Current assets
Cash $ 94,642 $ 29,736
Accounts receivable, net 13,523 27,132
Inventories 22,695 23,773
Prepaid and other assets 3,435 4,527
--------------- ---------------
Total current assets 134,295 85,168
Net property, plant and equipment 5,221 3,824
Intangibles 2,181 2,520
Deferred taxes 5,790 6,628
Other assets 311 414
--------------- ---------------
Total assets $ 147,798 $ 98,554
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 2,668 $ 7,062
Other current liabilities 2,980 7,984
--------------- ---------------
Total current liabilities 5,648 15,046
Stockholders' equity 142,150 83,508
--------------- ---------------
Total liabilities & stockholders'
equity $ 147,798 $ 98,554
=============== ===============
RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Three Months Ended Twelve Months Ended
---------------------- ----------------------
December December December December
31, 31, 31, 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenues $ 10,691 $ 28,924 $ 79,398 $ 88,107
Cost of revenues 6,573 13,140 39,798 41,854
---------- ---------- ---------- ----------
Gross profit 4,118 15,784 39,600 46,253
Operating Expenses
Research & development 2,015 2,931 11,625 9,022
Selling, general &
administrative 1,778 4,418 12,171 14,463
Amortization 85 85 339 339
---------- ---------- ---------- ----------
Operating income 240 8,350 15,465 22,429
Interest income and
other, net 518 552 2,774 2,174
Provision (benefit) for
income taxes 96 75 6,499 (431)
Cumulative effect on
prior years of the application
of SAB 101, net of
tax of $924 - - - 1,458
---------- ---------- ---------- ----------
Net income $ 662 $ 8,827 $ 11,740 $ 23,576
========== ========== ========== ==========
Net income per share:
Basic $ 0.04 $ 0.59 $ 0.74 $ 1.60
Diluted $ 0.04 $ 0.56 $ 0.71 $ 1.49
Pro forma net income per share (1):
Basic $ 0.04 $ 0.38 $ 0.74 $ 0.95
Diluted $ 0.04 $ 0.36 $ 0.71 $ 0.88
Weighted average shares outstanding:
Basic 16,111,965 14,859,795 15,899,933 14,773,295
Diluted 16,697,575 15,760,343 16,531,461 15,805,188
(1) Pro forma net income per share in 2000 excludes certain tax
adjustments, primarily to reduce the Company's valuation
allowance, in the three and twelve months ended December 31,
2000 of $3.1 million and $9.6, respectively. |
