3Q earnings reported this morning.
(sorry about the messed up table below)
Cerprobe Corp. Announces Record Third-Quarter Results Cerprobe Corp. Announces Record Third-Quarter Results October 15, 1997 6:31 AM EDT
GILBERT, Ariz.--(BUSINESS WIRE)--Oct. 15, 1997--Cerprobe Corp. (Nasdaq/NM:CRPB) Wednesday reported sales and earnings for the third quarter ended Sept. 30, 1997.
Net sales were $19,886,000, more than double sales of $8,799,000 for the quarter ended Sept. 30, 1996. Net income for the third quarter (before a one-time recovery of acquisition costs related to the January 1997 acquisition of Silicon Valley Test & Repair Inc., "SVTR") was $1,794,000, or $0.26 per share on 17 percent more shares outstanding, compared with net income for the same period in 1996 of $663,000, or $0.11 per share.
Including the one-time recovery of acquisition-related charges of $1,168,000, the company had net income for the quarter of $2,962,000, or $0.44 per share.
Net sales for the nine months ended Sept. 30, 1997, were a record $54,469,000, a 93 percent increase over Sept. 30, 1996 nine-month sales of $28,159,000. Net income for the first nine months of 1997 (before net one-time acquisition charges related to SVTR), increased 76 percent to $4,453,000, or $0.70 per share on 12 percent more shares outstanding, compared with net income for the same period in 1996 of $2,531,000, or $0.45 per share.
Including net one-time acquisition-related charges for purchased research and development of $4,496,000, as well as acquisition- related business relocation expenses of $500,000, the company had a net loss for the nine months ended Sept. 30, 1997 of $343,000, or $0.05 per share.
C. Zane Close, president and chief executive officer of Cerprobe, noted that the $1,168,000 adjustment to acquisition-related costs stemmed from the settlement of certain open terms -- covering escrowed shares and an earnout provision -- that were part of the January 1997 purchase of SVTR, a company that specializes in refurbishing and upgrading wafer probing equipment used by semiconductor manufacturers.
"The adjustment is a reflection of some of the challenges we have faced in bringing SVTR's manufacturing operations up to Cerprobe's standards," said Close, "but we are clearly making significant progress. Moreover, in the third quarter we saw measurable improvements in both shipments and backlog. With the appointment of Kevin Kurtz, formerly Cerprobe's VP of manufacturing, to the position of president of SVTR, and with the relocation of SVTR's operations to Arizona, we believe we are well on the way to making SVTR's operations profitable.
"Our core business remains strong," continued Close, "and we are particularly pleased with the performance of our two recent acquisitions, CompuRoute and SVTR. Their combined sales during the quarter were approximately $5,537,000, a 20 percent increase over the second quarter 1997 sales of $4,615,000 and a 38 percent increase over the first quarter 1997 sales of approximately $4 million.
"In addition, our overseas business -- notably in Scotland, Singapore and Taiwan -- is doing well and continues to be profitable. International sales totaled $4,147,000, a 32 percent increase over the second quarter of 1997."
On Sept. 24 the company completed a secondary offering of 2 million shares of common stock at $22 per share, including 1.5 million shares sold by the company. The company received net proceeds of approximately $31.1 million.
On Oct. 6, subsequent to the end of the quarter, the company's underwriters exercised their over-allotment option and purchased from the company an additional 300,000 shares of stock at the public offering price, from which the company received net proceeds of an additional $6.2 million.
Proceeds have been used in part to repay advances of approximately $7.3 million on the company's line of credit, which included amounts borrowed to redeem outstanding shares of the company's Series A Convertible Preferred Stock.
A portion of the proceeds has also been used to pay an outstanding demand note of $1.0 million that was assumed in connection with the acquisition of CompuRoute. The balance of the proceeds, approximately $29.0 million, will be used for general corporate purposes.
"We may also use a portion of the proceeds to acquire products or business that we believe will broaden or enhance our current products, technologies or businesses," said Close.
Cerprobe develops and manufactures products and equipment for the high performance testing of integrated circuits and microelectronics components and markets its products worldwide to semiconductor manufacturers.
The Arizona-based company operates domestic manufacturing facilities in Arizona, California and Texas. The company also operates international subsidiaries: Cerprobe Europe, Limited in Scotland and Cerprobe Asia in Singapore and Taiwan.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements in this release regarding continued strength in the company's core business, continued improvements in SVTR's operations and profitability, and the anticipated 1997 operating performance for the company and its operating subsidiaries, are forward-looking statements that include risks and uncertainties, including but not limited to product demand and development, ability to maintain customer diversity and relationships, technological advancements, impact of competitive products and pricing, growth in targeted markets, manufacturing capacity, risks of foreign operations, ability to integrate and leverage acquisitions, and other information detailed from time to time in the company's financial news releases and Securities and Exchange Commission filings.
Cerprobe Corp.
Condensed Consolidated Statements of Operations
(in thousands)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
Net sales $19,886 $8,799 $54,469 $28,159
Cost and Expenses:
Cost of sales 11,698 4,938 32,102 15,285
Selling, general
and administrative 4,747 2,595 13,874 7,871
Engineering and
product development 413 346 1,031 724
Acquisition-related
costs (recovery) (1,168) -- 4,996 --
15,690 7,879 52,003 23,880
Operating income 4,196 920 2,466 4,279
Other income (expense):
Interest income 10 177 78 345
Interest expense (169) (51) (466) (167)
Other income 107 65 222 152
(52) 191 (166) 330
Income before income taxes
and minority interest 4,144 1,111 2,300 4,609
Provision for taxes (1,249) (469) (2,739) (2,162)
Minority interest 67 21 96 84
Net income (loss) $2,962 $663 $(343) $2,531
Earnings (loss) per share:
Before acquisition-
related costs (recovery) $0.26 $0.11 $0.70 $0.45
Fully diluted $0.44 $0.11 $(0.05) $0.45
Fully diluted shares
outstanding 6,787 5,783 6,318 5,648
-0-
Cerprobe Corp.
Condensed Consolidated Balance Sheets
(in thousands)
Sept. 30, Dec. 31, Sept. 30,
1997 1996 1996
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $24,444 $5,565 $9,493
Accounts receivable, net 11,453 5,564 5,169
Inventories, net 6,991 3,863 3,812
Other current assets 897 1,043 839
Total current assets 43,785 16,035 19,313
Property and equipment, net 14,589 11,446 6,682
Intangible assets, net 2,491 2,603 1,794
Other assets 1,492 1,327 1,349
Total assets $62,357 $31,411 $29,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,335 $2,739 $1,850
Accrued liabilities 4,318 1,600 1,308
Notes payable and current
portion of long-term debt 1,703 1,793 835
Total current liabilities 10,356 6,132 3,993
Long-term debt, less current
portion 1,196 1,742 957
Deferred income taxes and other
liabilities 491 394 406
Total liabilities 12,043 8,268 5,356
Minority interest in net assets of
consolidated subsidiaries -- 13 29
Stockholders' equity 50,314 23,130 23,753
Total liabilities and
stockholders' equity $62,357 $31,411 $29,138
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Jay M |
