Let's post earnings. Not much interest in ADEX lately on the board. Gross sales are way way down. Still, the loss is small, but you have to wonder if there won't be a large charge-off showing up sometime soon.
Geoff Wren
Tuesday August 25, 5:29 pm Eastern Time
Company Press Release
SOURCE: ADE Corporation
ADE Corporation Announces First Quarter Fiscal
1999 Results
WESTWOOD, Mass., Aug. 25 /PRNewswire/ -- ADE Corporation (Nasdaq: ADEX - news) today reported revenue of $24
million for the three months ended July 31, 1998, compared to $34.2 million reported for the same period a year ago. Net loss
for the first quarter of fiscal 1999 was $813,000, or $0.06 per diluted share, compared to net income of $4.3 million, or $0.39
per diluted share for the first quarter of fiscal 1998, with weighted average shares outstanding during the comparable periods of
12.9 million and 11.1 million, respectively. Weighted average shares for the three months ended July 31, 1998 excluded stock
options outstanding during the period as their effect would be antidilutive. Gross margins for the three months ended July 31,
1998 decreased to 44% from 55% in the prior year, primarily due to lower sales volume of products that carry higher gross
profit contribution margins, pricing pressure from customers, and increased costs related to the Company's expanded
worldwide customer service organization.
The above results reflect the combined operations of ADE Corporation and Phase Shift Technology, Inc., which merged with
ADE Corporation on July 11, 1998, and has been accounted for on a pooling of interests basis. For the first quarter of fiscal
1999, Phase Shift was accretive to the overall results of the Corporation.
Robert C. Abbe, ADE President and Chief Executive Officer, said, ''The slowdown in the semiconductor and computer hard
disk industries continues to have a significant effect on ADE's financial performance. The semiconductor industry has been
severely affected by the Asian crisis and by an overall uncertainty about short-term chip demand. There is no visibility in terms
of an eventual rebound in the semiconductor market. Backlog at July 31, 1998 was $22.3 million compared to $37.9 million at
April 30, 1998. Order levels in both of our major markets continue to be very weak.''
Abbe continued, ''In July at Semicon West, ADE announced its new CR81e-SQM surface quality monitoring system. This
surface inspection tool detects very fine imperfections on the surface of wafers. These imperfections that are introduced in the
wafer making process that can decrease yields for device manufacturers. We believe that this is one of the first production tools
available for this purpose. We are pleased with customer response to this product and have begun to accept orders for SQM
systems.''
Abbe continued, ''The computer hard disk industry also continues through a difficult period. However, recently we have
experienced an increase in inquiries from our disk customers. We view this as a positive sign. We are hopeful that it
foreshadows an eventual industry recovery.''
''During the fourth quarter of fiscal 1998 we reduced our workforce and took other actions to reduce expenses. We have been
closely reviewing our revenue projections for the current year and are committed to taking the necessary steps to align our
expense structure with expected revenues.
Abbe concluded, ''We are experiencing the impact of a difficult time for the very cyclical semiconductor and computer hard
disk industries. We will continue to adjust our operations and plans in response to the current situation and take the necessary
steps to position the Company for the eventual recovery.''
This news release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties
that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to demand for the Company's products, the future of the semiconductor and computer
hard disk industries, uncertainty in financial markets in Asia and throughout the world, the ability of the Company to develop
and manufacture products that meet customer needs within the timeframes required by customers, and the ability to manage
costs and other aspects of the Company in an environment of uncertainty.
ADE Corporation is a leading supplier of metrology and inspection systems for the silicon wafer and computer disk
manufacturing industries. The Company's systems analyze and report product quality at critical manufacturing process steps and
provide quality certification data that is relied upon by semiconductor and computer disk manufacturers. The Company's
systems also are used in the fabrication of integrated circuits.
ADE CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three months ended
July 31,
1998 1997
Revenue $24,028 $34,181
Cost of revenue 13,457 15,272
Gross profit 10,571 18,909
Operating expenses:
Research and development 6,652 5,708
Marketing and sales 3,122 3,812
General and administrative 2,878 2,963
Total operating expenses 12,652 12,483
Income (loss) from operations (2,081) 6,426
Interest income, net 761 189
Income before
provision for
(benefit from)
income taxes and
equity in net
earnings (loss)
of affiliated
companies (1,320) 6,615
Provision for
(benefit from)
income taxes (514) 2,342
Income before
equity in net
earnings (loss) of
affiliated companies (806) 4,273
Equity in
net earnings
(loss) of affiliated
companies (7) 34
Net income (loss) $ (813) $4,307
Basic earnings
(loss) per share $(0.06) $0.41
Diluted earnings
(loss) per share $(0.06) $0.39
Weighted average
shares outstanding - basic 12,923 10,417
Weighted average
shares outstanding - diluted 12,923 11,124
ADE CORPORATION
CONSOLIDATED BALANCE SHEET
(In Thousands)
July 31, 1998 April 30, 1998
(unaudited)
Assets
Cash and cash equivalents $68,599 $72,711
Accounts receivable, net 21,408 16,938
Inventories 31,149 28,792
Other current assets 9,665 14,243
Total current assets 130,821 132,684
Fixed assets, net 25,764 26,058
Investments 4,127 3,892
Restricted cash 3,683 3,808
Other assets 6,895 7,201
Total assets $171,290 $173,643
Liabilities and Stockholders' Equity
Total current liabilities $19,082 $20,844
Long-term debt 8,503 8,613
Total stockholders' equity 143,705 144,186
Total liabilities and
stockholders' equity 171,290 173,643
SOURCE: ADE Corporation
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