CMOS
sorry, just found this
reported before today's open
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Tuesday May 19, 4:32 am Eastern Time
Company Press Release
Credence Systems Reports Results for Fiscal 1998 Second Quarter
FREMONT, Calif.--(BUSINESS WIRE)--May 19, 1998--Credence Systems Corp. (NASDAQ/NMS:CMOS - news)
today reported results for its second quarter ended April 30, 1998.
Net sales for the second quarter of fiscal 1998 were $74.7 million, a decrease of 9 percent over the net sales of $82.4 million
in the first quarter of fiscal 1998 and an increase of 72 percent over the net sales of $43.4 million in the second quarter of fiscal
1997. Net income for the second quarter of fiscal 1998 was $8.8 million, or $0.40 per diluted share, a decrease of 4 percent
from the $9.2 million, or $0.41 per diluted share, recorded in the first quarter of fiscal 1998, and an increase of 167 percent
from the $3.3 million or $0.15 per diluted share recorded in the second quarter of fiscal 1997.
Credence's chairman and chief executive officer, Dr. Wilmer Bottoms, said, ''Consistent with the rest of the industry, we
experienced reduced revenue during our second fiscal quarter and we anticipate that such trend will continue to materially
adversely affect our results of operations through at least the third fiscal quarter. Although we were disappointed with this
reduction, we were pleased with the improvement in our overall operating performance. Our operating income of 17.2 percent
was the highest in seven consecutive quarters. We have managed through several industry slowdowns in the past and will
continue to carefully manage our expenses in the current environment of declining revenues until we have visibility of a
turnaround,'' stated Dr. Bottoms.
Dr. Bottoms continued, ''Over the course of the last few quarters, we have introduced several new products which should
position us well when the industry cycle turns up.''
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, economic and currency instability in the Asia Pacific region, fluctuation in customer
demand, timing, and volume orders and shipments, competition and pricing pressures, reliability and quality 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 and expenses associated with
product development and delays.
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 the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q. The Company
assumes no obligation to update the information in this press release.
Credence Systems Corp. is a leader in the manufacture of automatic test equipment (ATE) for the worldwide semiconductor
industry. Credence offers a wide range of products with test capabilities for digital, mixed-signal, and memory semiconductors.
Utilizing its patented CMOS technologies, Credence products are designed to meet the strict time-to-market and cost of
ownership requirements of its customers.
Headquartered in Fremont, California, the company maintains advanced production and design facilities in Beaverton, Oregon.
Credence, and ISO 9001 certified manufacturer, is listed on the Nasdaq National Market under the symbol CMOS. More
information is available at www.credence.com.
Note to Editors: Credence, and Credence Systems are trademarks of Credence Systems Corp. Other trademarks which may
be mentioned in this release are the intellectual property of their respective owners.
Credence Systems Corp.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
Three Months Prior Quarter
Ended Ended
April 30, January 31,
1998 1997 1998
Net sales $74,660 $43,355 $82,375
Cost of goods sold 31,664 18,374 35,438
Gross margin 42,996 24,981 46,937
Operating expenses:
Research and development 12,233 8,953 13,491
Selling, general and
administrative 17,931 11,989 20,308
30,164 20,942 33,799
Operating income 12,832 4,039 13,138
Interest and
other expenses, net 200 874 958
Income before income taxes 13,032 4,913 14,096
Income taxes 4,290 1,627 4,934
Minority interest (45) -- (29)
Net income $8,787 $3,286 $9,191
Net income per share(a)
Basic $0.41 $0.15 $0.42
Diluted $0.40 $0.15 $0.41
Number of shares used in
computing per share
amount(a)
Basic 21,634 21,833 21,864
Diluted 22,146 22,265 22,415
Six Months
Ended
April 30,
1998 1997
Net sales $157,035 $83,616
Cost of goods sold 67,102 37,813
Gross margin 89,933 45,803
Operating expenses:
Research and development 25,724 17,759
Selling, general and
administrative 38,239 23,420
63,963 41,179
Operating income 25,970 4,624
Interest and
other expenses, net 1,158 1,901
Income before income taxes 27,128 6,525
Income taxes 9,224 2,185
Minority interest (74) --
Net income $17,978 $4,340
Net income per share(a)
Basic $0.83 $0.20
Diluted $0.81 $0.20
Number of shares used in
computing per share
amount(a)
Basic 21,731 21,783
Diluted 22,257 22,242
(a) Income per share amounts for the three months and six months ended
April 30, 1997 have been restated to reflect the company's adoption of
Financial Accounting Standard No. 128.
Credence Systems Corp.
Condensed Consolidated Balance Sheets
(in thousands)
Prior Quarter
April 30, Jan. 31, Oct. 31,
1998 1998 1997
(unaudited) (unaudited)
Assets
Current assets:
Cash and cash equivalents $65,841 $88,667 $132,761
Restricted cash 5,012 7,206 10,002
Short-term investments 78,313 62,608 35,013
Accounts receivable, net 60,770 62,103 55,246
Inventories 52,723 48,761 42,125
Other current assets 13,900 14,552 13,001
Total current assets 276,559 283,897 288,148
Long-term investments 27,980 17,396 8,561
Property and equipment, net 45,930 44,497 43,050
Other assets 19,466 17,442 18,382
Total assets $369,935 $363,232 $358,141
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $12,935 $14,386 $13,182
Accrued liabilities 24,343 23,454 20,346
Income taxes payable 4,331 6,476 4,284
Total current liabilities 41,609 44,316 37,812
Convertible subordinated
notes 115,000 115,000 115,000
Minority interest 312 366 418
Stockholders' equity 213,014 203,550 204,911
Total liabilities and
stockholders' equity $369,935 $363,232 358,141 |
