Exhibit 99.1
Nextest Announces First Quarter Fiscal Year 2007 Results
SAN JOSE, Calif., Oct. 26 /PRNewswire-FirstCall/ -- Nextest Systems Corporation (Nasdaq: NEXT), a leader in the manufacture of automatic test equipment (ATE) for low-cost semiconductor manufacturing, today reported financial results for its fiscal first quarter ended September 23, 2006.
Revenue for the quarter ended September 23, 2006 was $26,859,000, up 3 percent from the June 2006 quarter revenue of $26,069,000 and up 56 percent from the September 2005 quarter revenue of $17,205.000. Net income for the quarter was $4,784,000, compared with net income of $4,596,000 in the previous quarter and net income of $1,619,000 in the September 2005 quarter.
Net income available to common stockholders for the quarter ended September 23, 2006 was $4,784,000, or $0.25 per fully diluted share, compared with net income available to common stockholders of $4,596,000, or $0.24 per fully diluted share in the June 2006 quarter and net income available to common stockholders of $350,000, or $0.04 per fully diluted share in the September 2005 quarter. The June 2005 quarter included accretion of the then-outstanding Series B preferred stock in the amount of $1,224,000 and an allocation to the then-outstanding Series A preferred stockholders in the amount of $45,000 in the September 2005 quarter.
New orders for the quarter ended September 23, 2006 were $15.2 million. Backlog at the end of the quarter was $9.1 million.
Robin Adler, chairman and chief executive officer of Nextest, commented, “Our first fiscal 2007 quarter was another strong financial quarter in terms of revenue and profit. Revenues of $26.9 million are the highest we have ever recorded. The lower level of new orders for the quarter, however, is indicative of a slowing in our overall business environment. Despite the current softness, we believe the long-term fundamentals in the key flash memory market remain strong. I am also pleased to announce that we introduced our Magnum iCP test system this week at the International Test Conference in Santa Clara. Magnum iCP brings Magnum productivity and cost reduction to a rapidly growing new market area for Nextest -- testing of CMOS image sensor devices used in a wide variety of consumer products.”
Second Quarter Fiscal 2007 Outlook
Net revenue in the second quarter of fiscal 2007 is expected to be between $17 million and $24 million, with earnings per diluted share of between $0.02 and $0.15. The fully diluted share count is estimated to be approximately 19 million at the end of the second quarter.
Conference Call/Webcast
Nextest Systems Corporation will be conducting its conference call today, October 26, 2006, at 2:00 p.m. Pacific Time. The call will be simultaneously webcast at www.nextest.com (click on “Investors”). A replay will be available for two weeks via telephone starting approximately two hours after the completion of the call. The replay may be accessed by calling 888-286-8010 in the US and Canada, or 617-801-6888 outside the US and Canada, and entering conference code 77055722, or by visiting www.nextest.com and clicking on “Investors” for a link to the replay. The replay will be available via telephone and website through November 9, 2006.
About Nextest Systems Corporation
Nextest Systems Corporation is a low-cost leader in the design and manufacture of automatic test equipment (ATE) for Flash memory and System-On-Chip semiconductors. Nextest’s products address the growing demand from manufacturers for ATE with increased throughput, functionality and reliability, while reducing time to market and cost of test. Nextest has shipped over 1,600 systems to more than 60 semiconductor companies worldwide. Further information is available at www.nextest.com.
Forward-looking Statements
The statements made in this press release, other than statements of historical facts, are forward-looking statements that involve risks and uncertainties. These statements include those relating the company’s financial performance, products, customers, success of new products and business prospects. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” or “continue,” the negative of these terms or other comparable terminology. These statements involve a number of risks and uncertainties, including the cyclical nature of the semiconductor industry, the success of the market penetration of our products, our dependence on suppliers and subcontractors, the concentration of our customers and other risks and uncertainties. Nextest Systems Corporation does not intend to update or revise any forward-looking statements whether as a result of new developments or otherwise.
NEXTEST SYSTEMS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
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| Quarter Ended |
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| Sept. 23, |
| June 24, |
| Sept. 24, |
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Net revenue |
| $ | 26,859 |
| $ | 26,069 |
| $ | 17,205 |
|
Cost of revenue |
|
| 12,358 |
|
| 11,844 |
|
| 8,421 |
|
Gross profit |
|
| 14,501 |
|
| 14,225 |
|
| 8,784 |
|
Operating expenses: |
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|
|
|
|
|
|
|
|
|
Research and development |
|
| 2,162 |
|
| 2,284 |
|
| 1,733 |
|
Sales, general and administrative |
|
| 5,670 |
|
| 5,991 |
|
| 4,633 |
|
Total operating expenses |
|
| 7,832 |
|
| 8,275 |
|
| 6,366 |
|
Income from operations |
|
| 6,669 |
|
| 5,950 |
|
| 2,418 |
|
Interest and other income, net |
|
| 837 |
|
| 936 |
|
| 74 |
|
Income before taxes |
|
| 7,506 |
|
| 6,886 |
|
| 2,492 |
|
Income tax provision |
|
| 2,722 |
|
| 2,290 |
|
| 873 |
|
Net income |
|
| 4,784 |
|
| 4,596 |
|
| 1,619 |
|
Accretion of Series B preferred stock redemption value |
|
| — |
|
| — |
|
| (1,224 | ) |
Amount allocated to Series A preferred stockholders |
|
| — |
|
| — |
|
| (45 | ) |
Net income available to common stockholders |
| $ | 4,784 |
| $ | 4,596 |
| $ | 350 |
|
Basic net income per share available to common shareholders: |
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Net income per common share, basic |
| $ | 0.27 |
| $ | 0.26 |
| $ | 0.04 |
|
Weighted average number of shares used in per share calculation, basic |
|
| 17,508 |
|
| 17,450 |
|
| 8,722 |
|
Diluted net income per share available to common shareholders: |
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|
|
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|
|
|
|
|
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Net income per common share, diluted |
| $ | 0.25 |
| $ | 0.24 |
| $ | 0.04 |
|
Weighted average number of shares used in per share calculation, diluted |
|
| 18,769 |
|
| 18,775 |
|
| 9,492 |
|
Stock-based compensation expense is included in: |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
| $ | 45 |
| $ | 49 |
| $ | 21 |
|
Research and development |
|
| 137 |
|
| 141 |
|
| 41 |
|
Sales, general and administrative |
|
| 178 |
|
| 200 |
|
| 80 |
|
Total |
| $ | 360 |
| $ | 390 |
| $ | 142 |
|
NEXTEST SYSTEMS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
|
| Sept. 23, |
| June 24, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 53,041 |
| $ | 68,667 |
|
Short-term investments |
|
| 15,540 |
|
| — |
|
Accounts receivable, net |
|
| 20,184 |
|
| 16,518 |
|
Inventory |
|
| 26,706 |
|
| 26,099 |
|
Deferred tax assets |
|
| 3,006 |
|
| 2,976 |
|
Prepaid expenses and other current assets |
|
| 1,020 |
|
| 1,118 |
|
Total current assets |
|
| 119,497 |
|
| 115,378 |
|
Property and equipment, net |
|
| 3,786 |
|
| 3,868 |
|
Deferred tax assets |
|
| 855 |
|
| 1,067 |
|
Other assets |
|
| 795 |
|
| 783 |
|
Total assets |
| $ | 124,933 |
|
| 121,096 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
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Current liabilities: |
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|
|
|
|
|
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Accounts payable |
| $ | 3,529 |
| $ | 2,585 |
|
Accrued liabilities |
|
| 4,399 |
|
| 5,946 |
|
Deferred income |
|
| 2,125 |
|
| 4,890 |
|
Customer deposits |
|
| 9 |
|
| — |
|
Income tax payable |
|
| 3,020 |
|
| 1,163 |
|
Total current liabilities |
|
| 13,082 |
|
| 14,584 |
|
Deferred income |
|
| 336 |
|
| 458 |
|
Other liabilities |
|
| 189 |
|
| 202 |
|
Total liabilities |
|
| 13,607 |
|
| 15,244 |
|
Stockholders’ equity |
|
| 111,326 |
|
| 105,852 |
|
Total liabilities and stockholders’ equity |
| $ | 124,933 |
| $ | 121,096 |
|
At Nextest Systems Corporation:
So-Yeon Jeong
408.817.7276
SOURCE Nextest Systems Corporation
-0- 10/26/2006
�� /CONTACT: So-Yeon Jeong of Nextest Systems Corporation, +1-408-817-7276, or sjeong@nextest.com/
/Web site: http://www.nextest.com /
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