EXHIBIT 99.1
LTX-Credence Announces Third Quarter Results
MILPITAS, Calif., June 3, 2009 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of focused, cost-optimized ATE solutions, today announced financial results for its 2009 third fiscal quarter ended April 30, 2009.
Sales for the quarter were $24,667,000. Net loss for the quarter was $(27,819,000), or $(0.22) per share on a GAAP basis. Excluding the net impact of special items totaling $1,043,000, and amortization of purchased intangibles of $4,446,000, the net loss for the quarter was $(22,330,000), or $(0.18) per share on a non-GAAP basis.
Dave Tacelli, chief executive officer and president, commented, "We believe our third quarter revenues reflect the low point in this business cycle. While we are now seeing some bright spots in the wireless, power management, and consumer digital segments, most semiconductor manufacturers do not have a clear picture of the sustainability of their business beyond the current quarter. As a result, the overall business environment remains cautious. We have essentially completed the integration of LTX and Credence well ahead of schedule and with significantly greater synergies than originally expected. With the integration efforts largely complete, we are focused on growing sales and developing the right products to increase market share."
Fourth Quarter Fiscal 2009 Outlook
For the quarter ending July 31, 2009, revenue is expected to be in the range of $31 million to $34 million, a sequential increase of approximately 26% to 38% from the third fiscal quarter. The non-GAAP net loss is expected to be in the range of $(0.10) to $(0.08) per share, assuming 127.5 million shares outstanding. The non-GAAP net loss guidance does not include amortization of purchased intangibles of $4.4 million or one-time charges.
The Company will conduct a conference call today, June 3, 2009, at 4:30 PM EDT to discuss this release. The conference call will be simulcast via the LTX-Credence web site (www.ltx-credence.com). Audio replays of the call can be heard through July 2, 2009 via telephone by dialing 888-286-8010, pass code 14037832 or by visiting our web site at www.ltx-credence.com.
Information About Non-GAAP Measures
Due to the merger and the current economic conditions, LTX-Credence will supplement its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net loss for the quarter ended April 30, 2009 excludes the net impact of merger-related and other charges, and amortization of purchased intangibles. Management finds the non-GAAP information to be useful for internal comparison to historical operating results as well as to the operating results of its competitors, and believes that this information would be useful to investors for the same purposes. A reconciliation between the Company's GAAP and non-GAAP results is provided in the attached tables. Readers are reminded that non-GAAP information is merely a supplement to, and not a replacement for, GAAP financial measures.
Safe Harbor for Forward-Looking Statements
Statements in this release regarding guidance for LTX-Credence's third fiscal quarter and the merger between LTX Corporation and Credence Systems Corporation completed on August 29, 2008, including the financial guidance on revenue, net loss and loss per share, improvement of the business model, reduction of break-even, the status of merger integration activities, product developments, potential customer expansion and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicat ed by such forward-looking statements, including: the ability to successfully integrate LTX's and Credence's operations and employees; current weak worldwide economic conditions; the ability to realize anticipated synergies and cost savings; the risk of fluctuations in sales and operating results; risks related to the timely development of new products, options and software applications and the other factors described in LTX's Annual Report on Form 10-K for the fiscal year ended July 31, 2008 and Credence's Annual Report on Form 10-K for the fiscal year ended November 3, 2007 and LTX-Credence's most recent Quarterly Report on Form 10-Q each filed with the SEC. LTX-Credence disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
About LTX-Credence Corporation
Formed by the 2008 merger of LTX Corporation and Credence Systems Corporation, LTX-Credence is a global provider of focused, cost-optimized ATE solutions designed to enable customers to implement best-in-class test strategies to maximize their profitability. LTX-Credence addresses the broad, divergent test requirements of the wireless, computing, automotive and entertainment market segments, offering a comprehensive portfolio of technologies, the largest installed base in the Asia-Pacific region, and a global network of strategically deployed applications and support resources. Additional information can be found at www.ltx-credence.com.
LTX-Credence is a trademark of LTX-Credence Corporation.
All other trademarks are the property of their respective owners.
LTX-CREDENCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, July 31,
2009 2008
----------- -----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 106,675 $ 51,052
Marketable securities 14,358 20,410
Accounts receivable - trade, net 18,783 24,160
Accounts receivable - other, net 477 1,245
Inventories 38,062 22,505
Prepaid expenses and other current assets 22,622 2,750
----------- -----------
Total current assets 200,977 122,122
Property and equipment, net 41,651 27,213
Intangible assets, net 26,845 --
Goodwill 43,891 14,368
Other assets 3,716 6,024
----------- -----------
Total assets $ 317,080 $ 169,727
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 54,025 $ 5,700
Accounts payable 16,010 14,058
Other accrued expenses 52,108 14,081
Deferred revenues and customer advances 7,843 1,777
----------- -----------
Total current liabilities 129,986 35,616
----------- -----------
Long-term debt, net of current portion 42,425 12,200
Other long-term liabilities 31,219 4,631
Stockholders' equity 113,450 117,280
----------- -----------
Total liabilities and stockholders' equity $ 317,080 $ 169,727
=========== ===========
LTX-CREDENCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except earnings per share data)
Three Months Nine Months
Ended Ended
April 30, April 30,
-------------------- ---------------------
2009 2008 2009 2008
--------- --------- ---------- ---------
Net sales $ 24,667 $ 39,320 $ 102,201 $ 99,976
Cost of sales 17,674 18,903 67,754 50,276
Inventory-related
provision -- -- 19,311 --
--------- --------- ---------- ---------
Gross profit 6,993 20,417 15,136 49,700
Engineering and product
development expenses 16,556 11,794 58,729 34,776
Selling, general and
administrative expenses 11,120 6,611 40,502 20,044
Impairment of property
and equipment and
consignments -- -- 5,799 --
Amortization of
purchased intangible
assets 4,446 -- 11,856 --
Acquired in-process
research and development -- -- 6,200 --
Restructuring 3,315 -- 21,845 --
--------- --------- ---------- ---------
(Loss) income from
operations (28,444) 2,012 (129,795) (5,120)
Other income (expense),
net 822 194 2,915 745
--------- --------- ---------- ---------
(Loss) income before
provision (benefit)
for income taxes (27,622) 2,206 (126,880) (4,375)
Provision (benefit) for
income taxes 197 34 835 (3,145)
--------- --------- ---------- ---------
Net (loss) income $(27,819) $ 2,172 $(127,715) $ (1,230)
========= ========= ========== =========
Net (loss) income per
share:
Basic $ (0.22) $ 0.03 $ (1.06) $ (0.02)
Diluted $ (0.22) $ 0.03 $ (1.06) $ (0.02)
Weighted average shares
outstanding:
Basic 127,189 62,678 120,322 62,552
Diluted 127,189 62,773 120,322 62,552
LTX-CREDENCE CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(In thousands, except per share amounts)
Three Months Nine Months
Ended Ended
April 30, Earnings April 30, Earnings
2009 Per Share 2009 Per Share
------------ ------------ ------------ ------------
GAAP net loss $ (27,819) $ (0.22) $ (127,715) $ (1.06)
Inventory
related
provision -- -- 19,311 0.16
Impairment of
property and
equipment and
consignments -- -- 5,799 0.05
Amortization
of purchased
intangible
assets 4,446 0.03 11,856 0.10
Acquired
in-process
research and
development -- -- 6,200 0.05
Restructuring 3,315 0.03 21,845 0.18
Other income -
recovery of
previously
written-off
accounts
receivable (2,272) 0.02 (2,272) (0.02)
------------ ------------ ------------ ------------
Non-GAAP net
loss $ (22,330) $ (0.18) $ (64,976) $ (0.54)
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CONTACT: LTX-Credence Corporation
Mark Gallenberger
781.467.5417
mark_gallenberger@ltx-credence.com
