EXHIBIT 99.1
LTX-Credence Announces First Quarter Results
MILPITAS, Calif., Dec. 1, 2009 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of focused, cost-optimized ATE solutions, today announced financial results for its first fiscal quarter ended October 31, 2009.
Sales for the quarter were $41,850,000. Net loss for the quarter was $(3,194,000), or $(0.02) per share on a GAAP basis. Excluding the net impact of special items totaling $(436,000), and amortization of purchased intangible assets of $2,664,000, the net loss for the quarter was $(966,000), or $(0.01) per share on a non-GAAP basis.
Dave Tacelli, chief executive officer and president, commented, "With each passing month we gain confidence that the next up cycle in our industry has begun, as shown by our recent revenue growth and our revenue guidance for our second fiscal quarter. We expect certain markets to remain key growth engines such as RF/wireless, digital consumer and analog. Additionally, recent product introductions like the Diamond IMA and the DCTM are expanding our addressable market in segments such as microcontrollers and high precision converters. We achieved positive EBITDA of approximately 10% of revenue in the first fiscal quarter, and we are now expecting a return to profitability in our second fiscal quarter."
Second Quarter Fiscal 2010 Outlook
For the quarter ending January 31, 2009, revenue is expected to be in the range of $45 million to $48 million, a sequential increase of approximately 8% to 15% from the 2010 first fiscal quarter. The non-GAAP net income is expected to be in the range of $0.00 to $0.02 per share, assuming 128.5 million shares outstanding. The non-GAAP net income guidance excludes amortization of purchased intangible assets of $2.7 million.
The Company will conduct a conference call today, December 1, 2009, at 4:30 PM EST to discuss this release. The conference call may be accessed via telephone by dialing 866.713.8310, passcode 67068878. The conference call will also be simulcast via the LTX-Credence web site (www.ltxc.com). Audio replays of the call can be heard through December 31, 2009 via telephone by dialing 888.286.8010, pass code 45656196 or by visiting our web site at www.ltxc.com.
Information About Non-GAAP Measures
Due to the merger, 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 October 31, 2009 excludes the amortization of purchased intangible assets and other special items. 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 second fiscal quarter, including the financial guidance on revenue, financial operating results including net income or loss, and earnings or loss per share, continued customer adoption of recent product introductions, 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 United States securities laws, including the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward-looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those s tated or implied, including but not limited to: uncertain global economic and industry conditions, the duration and severity of the current economic climate, fluctuations in business and consumer spending; fluctuations in our sales and operating results; risks related to the timely development of new products, options and software applications, as well as the other risks described in our filings with the U.S. Securities and Exchange Commission, including those included under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended July 31, 2009. 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
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.ltxc.com.
LTX-Credence and LTXC are trademarks of LTX-Credence Corporation.
All other trademarks are the property of their respective owners.
LTX-Credence Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
October 31, July 31,
2009 2009
ASSETS
Current assets
--------------
Cash and cash equivalents $ 76,776 $ 86,488
Marketable securities 1,948 9,152
Accounts receivable - trade, net 24,215 23,578
Accounts receivable - other, net 1,315 1,374
Inventories, net 34,624 35,339
Prepaid expenses and other current assets 10,548 12,163
-------- --------
Total current assets 149,426 168,094
-------- --------
Property and equipment, net 35,167 38,301
Intangible assets, net 20,269 22,933
Goodwill 43,030 43,030
Other assets 1,726 2,811
-------- --------
Total assets $249,618 $275,169
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
-------------------
Current portion of long-term debt $ 40,881 $ 53,120
Accounts payable 14,323 18,551
Other accrued expenses 36,901 41,827
Deferred revenues and customer advances 6,291 7,373
-------- --------
Total current liabilities 98,396 120,871
-------- --------
Long-term debt, net of current portion 30,846 32,610
Other long-term liabilities 16,342 16,284
Stockholder's equity 104,034 105,404
-------- --------
Total liabilities and stockholders' equity $249,618 $275,169
======== ========
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
Three Months Ended
October 31,
2009 2008
--------- ---------
Net sales $ 41,850 $ 47,133
Cost of sales 21,644 26,326
Inventory-related provision -- 13,682
--------------------
Gross profit 20,206 7,125
Engineering and product development expenses 11,841 18,559
Selling, general, and administrative expenses 8,641 16,290
Impairment of property and equipment
and consignments -- 5,020
Amortization of purchased intangible assets 2,664 2,964
Acquired in-process research and development -- 6,200
Restructuring 423 3,863
--------------------
Loss from operations (3,363) (45,771)
Other income, net 216 994
--------------------
Loss before provision for income taxes (3,147) (44,777)
Provision for income taxes 47 573
--------------------
Net loss $ (3,194) $ (45,350)
====================
Net loss per share:
Basic $ (0.02) $ (0.42)
Diluted $ (0.02) $ (0.42)
Weighted average shares outstanding:
Basic 127,843 106,936
Diluted 127,843 106,936
LTX-Credence Corporation
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss
(In thousands, except per share amounts)
(unaudited)
Three Three
Months Months
Ended Earnings Ended Earnings
Oct. 31, Per Oct. 31, Per
2009 Share 2008 Share
GAAP net loss $ (3,194) $ (0.02) $(45,350) $ (0.42)
Inventory-related
provision -- -- 13,682 0.13
Impairment of property
and equipment
and consignments -- -- 5,020 0.05
Amortization of purchased
intangible assets 2,664 0.02 2,964 0.02
Acquired in-process
research and development -- -- 6,200 0.06
Restructuring 423 -- 3,863 0.03
Gain on extinguishment of
debt and liquidation of
investment trust (859) (0.01) (263) --
--------------------------------------
Non-GAAP net loss $ (966) $ (0.01) $(13,884) $ (0.13)
======================================
Weighted average
outstanding shares 127,843 106,936
-------- --------
CONTACT: LTX-Credence Corporation
Rich Yerganian
781.467.5063
rich_yerganian@ltxc.com
www.ltxc.com
