4:05PM Rudolph Tech meets consensus, guides down for Q2 (RTEC) 30.35 -0.97: Reports Q1 EPS of $0.03, in line with the Multex consensus; revs were $12.0 mln, vsconsensus of $11.7 mln. Expects Q2 EPS of $0.03 and revs to grow 5-10% (roughly $12.6-$13.2 mln), vs consensus of $0.07 and $14.5 mln.
Rudolph Reports 13% Sequential Revenue Increase
Maintains Profitability With Earnings At $0.03 Per Share
FLANDERS, N.J.--(BUSINESS WIRE)--April 29, 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 first quarter ended March 31, 2002.
First Quarter Results
For the first quarter ended March 31, 2002, total revenue was $12.0 million, which represented a 13% sequential increase from $10.7 million in the fourth quarter of 2001 (exceeding the Company's guidance provided on January 28, 2002 of a five to 10 percent sequential revenue increase). This compared to a record $30.6 million in revenue for the first quarter of 2001. Despite the year-over-year revenue decline, the Company maintained profitability, and came in at the top end of its guidance of $0.00 to $0.03 cents per diluted share. First quarter net income was $447,000, or $0.03 per diluted share, compared to $6.1 million, or $0.38 per diluted share 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.
"I am pleased to report that our first quarter showed sequential revenue growth, as we are gaining momentum," commented Paul F. McLaughlin, Chairman and CEO. "Our results indicate that the bottom of the cycle occurred in Q4 2001, and we are increasingly optimistic about prospects for the second half of this year.
Furthermore, during the quarter we continued to get technology acceptance with our MetaPULSE® family of tools. With shipments this quarter, we now have all major foundries worldwide either using our tools in production or evaluating our tools for potential large volume business when they resume capital spending. This is clearly encouraging, since we estimate the foundry segment of the chip manufacturing business to take a disproportionately large share of a growing device manufacturing market. The success of the first generation of our MetaPULSE technology has made it the industry standard for metal film metrology, particularly copper, and has positioned Rudolph for further growth."
Research & development (R&D) expenses for the quarter ended March 31, 2002 totaled $2.4 million, compared to $2.9 million in the comparable prior year period. As a percentage of revenue, R&D was 20%, compared to 10% in the March 2001 quarter. The Company expects R&D spending to represent approximately 20% of revenue in the second quarter of 2002.
Selling, general & administrative (S,G&A) expenses for the quarter ended March 31, 2002 totaled $2.4 million, compared to $2.0 million in the fourth quarter of 2001, and $4.7 million in the prior year period. The sequential increase reflects the effects of the Company's eleven shut down days in the fourth quarter of 2001. The year-over-year decrease reflects reduced administrative spending, lower commissions and the completion of certain infrastructure projects in prior periods. As a percentage of revenue, S,G&A was 20% in the 2002 first quarter, compared to 16% in the comparable prior year period. The Company expects SG&A will increase in absolute dollars in the second quarter of 2002 due to the Company's continued infrastructure investments.
Balance Sheet Strength
At March 31, 2002, the Company's cash and short-term investments totaled $94.5 million. Working capital was $129.8 million. As a result of this strong financial position, Rudolph is able to continue to execute on its strategy of investing in R&D, developing leading edge tools to meet its customers' needs, and strengthening its infrastructure, all of which the Company has historically done during industry downturns.
Outlook
The Company currently anticipates revenue for the second quarter ending June 30, 2002 to grow another 5 to 10%, with orders accelerating at a double-digit growth rate, delivery times lengthening and backlog continuing to grow. With large seasonal expenses associated with new product releases for Semicon West and infrastructure initiatives, particularly in China, the Company currently anticipates earnings to be flat sequentially at $0.03 per diluted share.
As the semiconductor industry returns to a more normalized business environment, Rudolph expects visibility to improve. The Company is currently projecting total revenue for all of 2002 to again exceed industry growth averages. Earnings are forecasted to track revenue and be back-end loaded as the recovery takes hold.
Conference call
Rudolph Technologies will be hosting a conference call today at 4:45PM EDT. 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, 2001. 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)
March 31, Dec. 31,
-----------------------
2002 2001
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ASSETS
Current assets
Cash $ 65,558 $ 94,642
Short-term investments 28,911 -
Accounts receivable, net 16,335 13,523
Inventories 20,646 22,695
Prepaid and other assets 3,549 3,435
----------- -----------
Total current assets 134,999 134,295
Net property, plant and equipment 5,042 5,221
Intangibles 2,117 2,181
Deferred taxes 5,759 5,790
Other assets 402 311
----------- -----------
Total assets $ 148,319 $ 147,798
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 2,209 $ 2,668
Other current liabilities 2,969 2,980
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Total current liabilities 5,178 5,648
Stockholders' equity 143,141 142,150
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Total liabilities & stockholders' equity $ 148,319 $ 147,798
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RUDOLPH TECHNOLOGIES
STATEMENTS OF OPERATIONS
($000)
Three Months Ended
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March 31, March 31,
2002 2001
----------- -----------
Revenues $ 12,038 $ 30,561
Cost of revenues 6,875 13,813
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Gross profit 5,163 16,748
Operating expenses:
Research & development 2,422 2,946
Selling, general & administrative 2,409 4,740
Amortization 64 85
----------- -----------
Operating income 268 8,977
Interest income and other, net 426 714
Provision for income taxes 247 3,590
----------- -----------
Net income $ 447 $ 6,101
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Net income per share:
Basic $ 0.03 $ 0.40
Diluted $ 0.03 $ 0.38
Weighted average shares outstanding:
Basic 16,145,675 15,363,284
Diluted 16,845,390 16,057,313 |
