LTX Announces Third Quarter Results
WESTWOOD, Mass., May 20 /PRNewswire/ -- LTX
Corporation (Nasdaq: LTXX), today announced financial
results for its third quarter ended April 30, 1998. Sales were
$54,130,000 (including $7,400,000 of revenue from the Ando
transaction discussed below) compared to $49,497,000 in the
third quarter last year. Net loss was $(6,334,000), or $(0.17)
per share, compared to net income of $717,000 or $0.02 per
share in the third quarter of last year.
For the nine-month period ended April 30, 1998, sales were
$163,468,000 compared to $140,946,000 for the same period
last year. The net loss was $(4,461,000), or $(0.12) per share,
compared to a net loss of $(1,704,000), or $(0.05) per share
for the same period last year excluding restructuring charges of
$(16,000,000), or $(0.45) per share in the first quarter of last
year.
"This quarter we felt the full brunt of the slowdown in the
semiconductor business to date," commented Roger Blethen,
President and Chief Executive Officer of LTX. "A significant
number of orders we had anticipated to be booked in the third
quarter did not materialize as planned, with the most notable
weakness in the Asia/Pacific area," he continued. "While our
results for the third quarter were clearly disappointing, we are
encouraged by the progress we have made toward completing
Fusion, our 'one test platform, zero compromises' system for the
system-on-a-chip IC test market. During the quarter, six
customers placed orders for our new Fusion product, and we
will continue to make investments in engineering and product
development to bring Fusion to market as quickly as possible."
Mr. Blethen continued, "In spite of the economic problems in
Asia, in April we consummated an important strategic alliance
with Ando Electric Co., Ltd. of Japan to market and develop
LTX's Fusion system-on-a-chip test platform for Japanese
customers. In exchange for the right to market, sell and
manufacture Fusion in Japan, Ando paid LTX $10 million and
returned to LTX 1,600,000 shares of LTX Common Stock
which it had previously purchased. Ando will also pay
royalties to LTX on future sales of Fusion in Japan. With this
alliance, Ando has endorsed Fusion as the leading test solution
for Japanese system-on-a-chip manufacturers. We firmly
believe that Fusion will set LTX apart from its competitors and
position the company as an industry leader as this exciting new
technology emerges."
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Certain matters discussed in this press
release may be forward- looking statements that are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. Such risks and uncertainties
include, but are not limited to, instability of conditions in the
Asia/Pacific region, the risk of fluctuations in sales and
operating results, the importance of new product introductions,
as well as the other factors described under "Business Risks"
in LTX's Form 10-Q for the quarter ended January 31, 1998
and Form 10-K for the fiscal year ended July 31, 1997 filed
with the Securities and Exchange Commission.
LTX Corporation is the only semiconductor test equipment
company to offer "one test platform, zero compromises"
solution for testing the full spectrum of system-on-a-chip, mixed
signal, digital and analog integrated circuits. Headquartered in
Westwood, Massachusetts, the Company has development and
manufacturing facilities in Westwood and San Jose, California,
as well as sales and service facilities throughout North
America, Europe, and the Pacific Rim. LTX is traded on the
Nasdaq National Market under the Symbol "LTXX". Further
information on LTX can be obtained by calling
1-888-INFO-LTX (or 1-888-463-6589). LTX's web site is
located at ltx.com.
NOTE: LTX is a registered trademark and Fusion is a
trademark of LTX Corporation.
LTX CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
April 30, July 31,
1998 1997
ASSETS
Current assets:
Cash and equivalents $46,953 $67,800
Accounts receivable, net 50,483 40,845
Inventories 75,909 54,947
Other current assets 3,859 4,016
Total current assets 177,204 167,608
Property and equipment, net 43,656 42,958
Other assets 2,733 2,980
$223,593 $213,546
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and
current portion of
long-term liabilities $10,832 $11,514
Accounts payable 39,630 23,887
Accrued expenses &
restructuring reserve 11,405 11,933
Unearned service revenues
& customer advances 14,327 5,156
Total current liabilities 76,194 52,490
Long-term liabilities,
less current portion 10,792 13,550
Convertible subordinated
debentures 7,308 7,308
Stockholders' equity 129,299 140,198
$223,593 $213,546
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Nine Months
Ended Ended
April 30, April 30,
1998 1997 1998 1997
Net sales $54,130 $49,497 $163,468 $140,946
Cost of sales 39,766 33,307 110,120 96,903
Inventory provision
for product
line restructuring --- --- --- 9,250
Gross profit 14,364 16,190 53,348 34,793
Engineering and product
development expenses 8,350 5,761 22,994 17,200
Selling, general and
administrative
expenses 12,812 9,586 34,767 28,582
Product line
restructuring costs --- --- --- 6,750
Income (loss)
from operations (6,798) 843 (4,413) (17,739)
Interest (income)
expense, net 132 7 48 (154)
Income (loss) before
income taxes (6,930) 836 (4,461) (17,585)
Provision for
income taxes (596) 119 0 119
Net income (loss) ($6,334) $717 ($4,461) ($17,704)
Earnings per share:
Net income (loss):
Basic $(0.17) $0.02 $(0.12) $(0.50)
Diluted $(0.17) $0.02 $(0.12) $(0.50)
Weighted average
number of shares:
Basic 36,797 35,408 36,757 35,432
Diluted 36,797 36,855 36,757 35,432
/CONTACT: Carol B. Langer of LTX Corporation,
781-467-5433/ |
