RTEC guiding for a strong second half, nice quarter.......
FLANDERS, N.J.--(BUSINESS WIRE)-- Rudolph Technologies, Inc. ( RTEC), a leading provider of process characterization equipment and software for wafer fabs and advanced packaging facilities, today announced financial results for the second quarter of 2012.
2012 Second Quarter Highlights:
Second quarter 2012 revenue of $56.3 million increased 23 percent as compared with first quarter 2012. GAAP net income was $6.3 million, or $0.19 per fully diluted share; non-GAAP net income was $7.5 million, or $0.23 per fully diluted share. Gross margin increased to 54 percent. Back-end customers drove record second quarter sales for the Company’s macro defect inspection products and accounted for 59 percent of second quarter orders. Rudolph Technologies’ Book to Bill ratio continues to exceed the industry average. Cash and marketable securities balances remain strong at $168.9 million or $3.90 net cash per share after second quarter acquisition. Recent Business Developments Further Solidify Rudolph’s Industry Leading Position
The acquisition of NanoPhotonics adds new technologies and extends Rudolph’s product and intellectual property portfolio, particularly for applications in the rapidly growing wafer-level advanced packaging market. This acquisition is part of the Company’s long-term strategy to strengthen its position as an industry leading provider of process characterization solutions for both the front-end and back-end of the semiconductor fabrication process. Rudolph delivered new metal film metrology capability to the mobile display market. The Company sold the first of its new MetaPULSE® FP thin film metrology systems to a major manufacturer of flat panel displays for handheld mobile devices, such as tablets, electronic book “e-readers” and smart phones. The first tool is being qualified on an R&D line, and Rudolph expects the capability will be indispensable as its customer ramps to high-volume production. A large OSAT (outsourced semiconductor assembly and test) company placed orders for 14 of Rudolph’s NSX® Series 320 Inspection Systems to meet rising advanced packaging demand. These new generation NSX Systems are being installed in the second and third quarters, and will be used for inspection in multiple steps during wafer-level chip-scale packaging (WLCSP) processes. Leveraged to Advanced Packaging - Industry Leading Position Sets Stage for Record 2012
Paul F. McLaughlin, Chairman and Chief Executive Officer, commented, “Rudolph’s solid financial performance in the first half of 2012 sets a sturdy foundation for what we expect will be a record year for the Company. Rudolph is the industry leader in the high growth back-end macro defect inspection market, which is being fueled by advanced Wafer-Level Packaging. In fact, the back-end’s earlier than expected recovery has been of robust proportions and is providing substantial growth opportunities for Rudolph, which has resulted in our achieving record results in macro defect inspection for the second quarter. The Wafer-Level Packaging market is forecast to significantly expand over the next three years, which we expect will result in a doubling of Rudolph’s total addressable market for our back-end defect inspection tools. The packaging market is undergoing major shifts, and chip manufacturers are changing in response. As a result the back-end Advanced Packaging business has been forecast to double between now and 2015 to over $2 billion, largely based on expected demand for consumer mobility solutions such as smart phones and tablets. Rudolph is aggressively addressing opportunities in this high-growth market.”
“Rudolph is building, diversifying and growing. The multiple markets we serve have above-average growth opportunities and we are the #1 or #2 share leaders in most served markets. We have a substantial and expanding portfolio of products and technologies that gives us balance throughout market cycles. Our target mix of 60 percent inspection, 30 percent metrology and 10 percent software revenues that we apply to front-end and back-end markets in a 60 percent to 40 percent ratio, respectively, are forecast to show non-GAAP operating margins on the order of 30 percent in the quarters ahead. Coupled with that strong product suite and a broad and expanding customer base, we are ideally positioned within dynamic growth markets.”
Mr. McLaughlin concluded, “In addition to the substantial back-end growth that we are experiencing now, there is continued strength in our front-end products and services, in which spending is centered on technology node migration and resultant manufacturing at smaller geometries.
Rudolph is singularly unique in that the company has exposure to both front-end and back-end markets, in major proportions which gives us a tremendous competitive advantage as we bring our front-end core competencies in yield-management technologies and techniques to back-end markets. We are now earning the benefits of the significant R&D investments we have made in the past few years and this positions Rudolph to capture the maximum benefits from both front-end and back-end investment cycles.”
Second Quarter 2012 Financial Results
Second quarter 2012 revenue totaled $56.3 million, a 23 percent increase as compared with $45.7 million for the 2012 first quarter. The NanoPhotonics acquisition had no effect on revenues for the quarter. During the 2012 second quarter, international sales represented approximately 84 percent of revenue, while domestic sales accounted for 16 percent. In the first quarter of 2012, international sales represented approximately 80 percent of revenue and domestic sales accounted for 20 percent. Revenue from front-end semiconductor customers accounted for approximately 48 percent of revenue and back-end customers accounted for 52 percent in the 2012 second quarter.
Second quarter 2012 gross margin was 54 percent, as compared with 52 percent in the first quarter 2012. The increase in margin in the quarter was primarily due to a favorable product mix and higher revenues covering fixed manufacturing costs in the quarter.
Operating expenses for the second quarter of 2012 totaled $19.7 million, an increase of $0.3 million from $19.4 million in the 2012 first quarter. Research and development (R&D) expenses for the second quarter totaled $9.4 million, compared with $9.8 million in the first quarter of 2012. The decrease in R&D is primarily due to the completion of a 450mm inspection project. Selling, general and administrative (S,G&A) expenses for the second quarter totaled $9.9 million, compared with $9.2 million in the 2012 first quarter. The increase in S,G&A was primarily due to an increase in sales cost due to higher revenues and an increase in bonus compensation plans as the Company is currently exceeding all plan targets. The impact of the NanoPhotonics acquisition on operating expenses was immaterial in the quarter.
GAAP net income for the second quarter of 2012 was $6.3 million, or $0.19 per diluted share, compared with net income of $1.9 million or $0.06 per diluted share, for the first quarter of 2012. Excluding the after-tax impact of $1.1 million in non-GAAP adjustments, which included legal and share-based compensation charges, the second quarter 2012 non-GAAP net income was $7.5 million, or $0.23 per diluted share.
Balance Sheet Strength
At June 30, 2012, cash and marketable securities decreased $4.7 million to $168.9 million from the previous quarter, primarily due to cash used for the NanoPhotonics acquisition. Accounts receivable increased to $53.2 million and inventory increased to $55.0 million due to increased sales and continued strong orders, respectively, and assets acquired in the NanoPhotonics acquisition. Working capital increased $1.4 million in the quarter, ending the quarter at $241.2 million. |
