Rudolph Technologies Enters Billion $ Defect Market; Acquires ISOA
FLANDERS, N.J., July 23 /PRNewswire-FirstCall/ -- Rudolph Technologies, Inc. (Nasdaq: RTEC - News), a worldwide leader in process control metrology systems today announced that it has entered into a definitive agreement to acquire privately held ISOA, a defect control company based in Richardson, Texas. The acquisition is an all cash transaction valued at approximately $27.5 million. The deal is expected to close within 90 days and is anticipated to be accretive to earnings per share in the first quarter of 2003.
ISOA is a spin-off from Texas Tech University's International Center for Informatics Research (formerly the Institute for Studies of Organizational Automation). Over the past 16 years, ISOA has licensed its technology for use in the semiconductor industry and recently began transitioning to a semiconductor capital equipment supplier. The Company's core technologies are Knowledge Based Algorithms used in wafer macro defect detection and classification. Customers in Asia, Europe and the U.S are currently using its recently introduced WaferView family of tools. The technology improves semiconductor chip manufacturer's process yields, reduces inspection costs and maximizes efficient production for increased profits. Following the completion of the transaction, ISOA will continue to maintain its offices in Richardson, TX and will become the Yield Metrology Group of Rudolph. Additionally, ISOA's tool manufacturing currently outsourced to Japan, will be moved to Rudolph's Ledgewood, New Jersey facility. ISOA currently has approximately 40 employees with one third holding advanced degrees.
"This acquisition represents a major step in our goal to expand Rudolph's product offerings and a key milestone in our continuing goal to bring leading-edge metrology solutions to our global customers," commented Paul F. McLaughlin, Chairman and CEO of Rudolph Technologies. "As a result, we are entering the billion dollar wafer inspection market with a portfolio of products and services that are recognized as being among the best technically in the industry. Our industry-leading MetaPULSE(TM) family of tools shows our past success at commercializing technology that has come out of a university setting and we fully expect to duplicate that success for ISOA's WaferView tools. We are confident of the cross-sell opportunities given that ISOA has penetrated just two of the top-ten semiconductor manufacturers due to its limited sales force. Conversely, Rudolph works in close collaboration with all of the top 10 and 14 of the top 16 largest device manufacturers worldwide."
Dr. Kathleen Hennessey, CEO of ISOA, will continue to lead the operations as Vice President and General Manager of the Yield Metrology Group, reporting to Paul F. McLaughlin. Dr. Hennessey has over 35 years experience specializing in knowledge-based systems, artificial intelligence, databases and data communications. She and Dr. YouLing Lin, Chief Technology Officer and VP Engineering of ISOA will be among the 11 ISOA founders that will be joining Rudolph.
"By leveraging Rudolph's existing infrastructure and ability to get in front of the leading semiconductor manufacturers, we will be in a position to accelerate our market penetration and bring added value to our prospective customer base," commented Dr. Hennessey. "Furthermore, Rudolph remains on the cutting-edge in terms of anticipating trends and customer demands, and our roster of engineers are anxious to collaborate with Rudolph's group of talented experts."
Conference call
Rudolph Technologies will host a conference call to discuss the acquisition today, July 23, 2002, at 4:30 p.m. EDT. To participate in the conference call, please dial (706) 643-3802. A live webcast will be available at www.vcall.com. A replay of the conference call will be available approximately two hours after the call until 11:59 p.m. EDT on July 30. To access the replay, please dial (706) 645-9291, and use passcode 5011832.
About ISOA
Emerging from a spin-off in 1994 from the Texas Tech University, ISOA has pioneered patented image analysis technologies and proprietary classification software. The Company's machine vision technologies detect wafer defects enabling semiconductor chip manufacturers to take corrective action immediately, resulting in rapid ramp-up to high volume manufacturing with high process yields. ISOA's innovative technology enables it to respond to the changing needs of the semiconductor industry and positions the Company to become a recognized leader of yield metrology solutions.
About Rudolph Technologies
Rudolph Technologies 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 earnings expectations for the first quarter of 2003 and our anticipated leadership position in the industry. 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, changes in tax rules, and inability to integrate ISOA. 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.
SOURCE: Rudolph Technologies |
