It's in
FREMONT, Calif.--(BUSINESS WIRE)--Feb. 13, 1997--Credence
Systems Corporation (NASDAQ:CMOS.O) today reported results for its
first quarter ended January 31, 1997 with net sales of $40.3 million,
a 34% decrease from the $60.9 million for the comparable quarter of
fiscal 1996.
Net income for the first quarter was $1.1 million compared to
$10.5 million for the comparable period last year, a reduction of
90%. Earnings per share were $0.05 per share, down from $0.48 per
share for the prior year's first quarter.
Credence's chief executive officer, Dr. Wilmer R. Bottoms said,
"Our revenues have been negatively impacted due principally to the
weakness in semiconductor ATE demand. Uncertainty in our customers'
near-term business outlook has continued to create delays and
deferrals of equipment purchases. First quarter orders which
exceeded revenues enabled the Company to increase its backlog and
protect its manufacturing efficiencies."
Dr. Bottoms added, "we have strengthened our commitment to
enhance our product position which is designed to gain future market
share through our investments in both new markets and new products.
Although near-term results may continue to be negatively impacted by
certain factors, we believe the longer-term industry outlook
currently appears to be improving."
"The Company added $2.4 million to inventory reserves which
negatively impacted earnings per share by $0.07 during the quarter.
This was responsible in large part for the decrease in gross margins
to 52%. We felt that it was appropriate and prudent to increase the
reserves given the current outlook for our near-term business
volumes," said Richard Okumoto, chief financial officer.
Statements in this release that are forward looking involve known
and unknown risks and uncertainties, which may cause the Company's
actual results in future periods to be materially different from any
future performance suggested in this release.
Such factors include, but are not limited to, fluctuations in
customer demand, timing and volume of orders and shipments,
competition and pricing pressures, reliability issues, product mix,
underabsorption of overhead, cyclicality in the semiconductor
industry, continued dependence on `turns' orders to achieve revenue
objectives, the Company's ability to have an appropriate amount of
production capacity in a timely manner, the timing of new technology
and product introductions and the risk of early obsolescence.
Further, the Company operates in an industry sector where
securities values are highly volatile and may be influenced by
economic and other factors beyond the Company's control. Reference
is made to the discussion of risk factors detailed in the Company's
filings with Securities and Exchange Commission, including its
reports on Form 10-K and 10-Q.
Credence Systems Corporation is a leading manufacturer of
automatic test equipment (ATE) that serves a broad spectrum of the
worldwide semiconductor industry's testing needs. Credence offers a
wide range of product with test capabilities for digital,
mixed-signal, and non-volatile memory semiconductors.
Credence utilizes its proprietary CMOS technologies to design
products that provide a lower cost of ownership while meeting the
increasingly demanding performance requirements of today's ATE
market. The Company is headquartered in Fremont, California, with
manufacturing in Beaverton, Oregon and Fremont, California. Credence
is listed on the Nasdaq National Market under the symbol CMOS.
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Credence Systems Corporation
Condensed Consolidated Income Statements
(in thousands)
Quarter Ended
Jan. 31,
1997 1996
Net sales $40,261 $60,911
Cost of goods sold 19,439 24,373
Gross margin 20,822 36,538
Operating expenses:
Research and development 8,806 8,317
Selling, general and
administrative 11,431 12,802
Total operating expenses 20,237 21,119
Operating income 585 15,419
Interest income and
other expenses, net 1,027 1,055
Income before income taxes 1,612 16,474
Provision for income taxes 558 5,930
Net income $1,054 $10,544
Net income per share $0.05 $0.48
Number of shares used in
computing per share amount 22,215 21,951
Credence Systems Corporation
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
Jan. 31, Oct. 31,
1997 1996
(unaudited)
Assets
Cash and cash equivalents $49,672 $48,649
Short-term investments 27,769 37,643
Accounts receivable, net 50,546 49,025
Inventories 34,976 35,721
Other current assets 7,067 6,845
Total current assets 170,030 177,883
Long-term investments 986 4,284
Property and equipment, net 37,433 32,764
Other assets 9,695 8,111
Total assets $218,144 $223,042
Liabilities and Stockholders' Equity
Total current liabilities $26,167 $33,260
Total stockholders' equity 191,977 189,782
Total liabilities and stock-
holders' equity $218,144 $223,042
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CONTACT: Credence Systems Corp.
Wilmer R. Bottoms/Richard Y. Okumoto, 510-657-7400
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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