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EXHIBIT 99.1
Press Release
For more information, contact: | ||||||
Financial: | Fred Hall | Investor Relations: | Susan Pope | |||
Chief Financial Officer | IR Specialist | |||||
(503) 626-7117 | (503) 526-7498 | |||||
For Immediate Release
IMS ANNOUNCES SECOND QUARTER 2001 RESULTS
Beaverton, OR—July 18, 2001—Integrated Measurement Systems, Inc. (NASDAQ: IMSC) announced results for its second quarter. Net sales for the second quarter were $12.5 million, a 40% decrease from the $20.9 million reported for the second quarter of 2000. Year-to-date revenues through June 30, 2001 were $31.0 million, down 15% from the comparable period last year. Excluding expenses associated with the Company's pending merger with Credence Systems Corporation, the Company earned net income per share for the quarter of $0.00, compared with $0.42 for the second quarter of 2000. For the year-to-date, net income per share, excluding merger related expenses, was $0.22, compared with $0.65 before the cumulative effect of an accounting change for the comparable period in 2000. Including the impact of merger related expenses, the Company incurred a net loss per share for the quarter of $0.11 and earned net income per share of $0.11 for the year-to-date.
"We expected this quarter to be difficult and it proved to be even more so than we had estimated," saidKeith Barnes, President and Chief Executive Officer. "Toward the end of last quarter, we became concerned about the impact the current industry downturn was having on our business. We took steps at that time to lower our expense run rate and as a result, we were able to break even excluding merger related expenses during this very difficult selling quarter. These steps, along with attention to cash collections, also had a positive impact on cash flow as we increased our cash balances by $1.5 million during a soft revenue quarter."
Mr. Barnes added, "There were other positives during the quarter as well. We sold our first Vanguard 550, mixed signal revenues were a very solid $4.7 million and our memory system sales at $2.2 million were the highest yet for that product. Additionally, the pending merger with Credence continues to move along well on both the legal and integration planning fronts. Although the short term visibility continues to be murky, we feel confident that we are well positioned to take advantage of the anticipated industry upturn when it occurs."
The Company will hold a conference call tomorrow, July 19, 2001, at 8:30 a.m. Pacific Daylight Time. The session will include brief remarks and a question and answer period. The call can be accessed by calling 800-834-5966 (confirmation number 19252179) or via live audio webcast at eitherwww.ims.com (Investor Relations) orwww.streetfusion.com. A replay will be available atwww.ims.com (Investor Relations).
Except for the historical information herein, the statements contained in this release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995 which are based on current expectations, estimates and projections about the Company's business, management's beliefs, and assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the cyclical nature of the semiconductor industry, changes in demand for
the Company's products, product mix, the timing of customer orders and deliveries, the timing of customer acceptances, high concentration of revenue from a single customer, a disproportionate amount of orders booked toward the end of any quarter, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
IMS designs, manufactures, markets and services a family of versatile, high-performance engineering validation systems used to verify and characterize complex electronic devices. In addition, the Company develops and markets a line of Virtual Test™ Software products that allow IC test development and simulation before first-silicon.
For additional company information, see the IMS Web sites atwww.ims.com andwww.imsvirtualtest.com.
2
Integrated Measurement Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2001 | 2000 | 2001 | 2000 | ||||||||||||
Revenues | ||||||||||||||||
Systems | $ | 9,000 | $ | 16,794 | $ | 22,623 | $ | 28,396 | ||||||||
Software | 917 | 1,524 | 3,256 | 3,252 | ||||||||||||
Service | 2,548 | 2,543 | 5,107 | 4,956 | ||||||||||||
Net revenues | 12,465 | 20,861 | 30,986 | 36,604 | ||||||||||||
Cost of Revenues | ||||||||||||||||
Systems | 3,990 | 6,376 | 9,488 | 11,035 | ||||||||||||
Software | 248 | 274 | 567 | 623 | ||||||||||||
Service | 1,017 | 1,121 | 2,149 | 2,188 | ||||||||||||
Total cost of revenues | 5,255 | 7,771 | 12,204 | 13,846 | ||||||||||||
Gross margin | 7,210 | 13,090 | 18,782 | 22,758 | ||||||||||||
Operating Expenses | ||||||||||||||||
Research, development and engineering | 2,658 | 2,447 | 5,185 | 4,453 | ||||||||||||
Selling, general and administrative | 5,028 | 5,695 | 11,585 | 10,633 | ||||||||||||
Merger expenses | 1,375 | — | 1,375 | — | ||||||||||||
Total operating expenses | 9,061 | 8,142 | 18,145 | 15,086 | ||||||||||||
Operating income (loss) | (1,851 | ) | 4,948 | 637 | 7,672 | |||||||||||
Interest income | 452 | 366 | 976 | 674 | ||||||||||||
Other expense, net | 40 | 81 | (124 | ) | 58 | |||||||||||
Income (loss) before provision for income taxes and cumulative effect of accounting change | (1,359 | ) | 5,395 | 1,489 | 8,404 | |||||||||||
Provision for (benefit from) income taxes | (462 | ) | 1,834 | 506 | 2,857 | |||||||||||
Income (loss) before cumulative effect of accounting change | (897 | ) | 3,561 | 983 | 5,547 | |||||||||||
Cumulative effect of accounting change | — | — | — | (7,317 | ) | |||||||||||
Net income (loss) | $ | (897 | ) | $ | 3,561 | $ | 983 | $ | (1,770 | ) | ||||||
Basic earnings (loss) per share: | ||||||||||||||||
Income before cumulative effect of accounting change | $ | (0.11 | ) | $ | 0.45 | $ | 0.12 | $ | 0.71 | |||||||
Cumulative effect of accounting change | — | — | — | (0.94 | ) | |||||||||||
Net income (loss) | (0.11 | ) | $ | 0.45 | 0.12 | $ | (0.23 | ) | ||||||||
Diluted earnings (loss) per share: | ||||||||||||||||
Income before cumulative effect of accounting change | $ | (0.11 | ) | $ | 0.42 | $ | 0.11 | $ | 0.65 | |||||||
Cumulative effect of accounting change | — | — | — | (0.85 | ) | |||||||||||
Net income (loss) | $ | (0.11 | ) | $ | 0.42 | $ | 0.11 | $ | (0.20 | ) | ||||||
Shares used for basic earnings per share | 7,904 | 7,828 | 7,905 | 7,774 | ||||||||||||
Shares used for diluted earnings per share | 7,904 | 8,529 | 8,520 | 8,579 | ||||||||||||
Integrated Measurement Systems,Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share data)
| As of June 30, 2001 | As of December 31, 2000 | |||||||
---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | | |||||||
ASSETS | |||||||||
Current Assets: | |||||||||
Cash and cash equivalents | $ | 6,499 | $ | 18,312 | |||||
Short-term investments | 32,003 | 23,215 | |||||||
Trade receivables, less allowance for doubtful accounts of $318 and $376 | 7,585 | 11,480 | |||||||
Inventories, net | 12,921 | 10,984 | |||||||
Inventories at customer sites | 621 | 2,937 | |||||||
Deferred income taxes | 3,808 | 3,808 | |||||||
Income taxes receivable | — | 1,247 | |||||||
Prepaid expenses and other current assets | 4,133 | 4,425 | |||||||
Total current assets | 67,570 | 76,408 | |||||||
Property, Plant and Equipment, net | 10,190 | 10,121 | |||||||
Service Spare Parts, net | 3,410 | 3,125 | |||||||
Software Development Costs, net | 3,183 | 3,519 | |||||||
Other Assets, net | 230 | 427 | |||||||
Total assets | $ | 84,583 | $ | 93,600 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current Liabilities: | |||||||||
Accounts payable | $ | 2,045 | $ | 2,280 | |||||
Payable to Cadence, net | 429 | 92 | |||||||
Accrued compensation | 1,543 | 2,076 | |||||||
Accrued warranty | 1,016 | 1,290 | |||||||
Deferred systems revenue | 1,683 | 10,603 | |||||||
Other deferred revenue | 3,153 | 3,103 | |||||||
Other current liabilities | 1,866 | 2,293 | |||||||
Income taxes payable | 186 | — | |||||||
Capital lease obligations—current | 135 | 213 | |||||||
Total current liabilities | 12,056 | 21,950 | |||||||
Deferred Income Taxes | 1,357 | 1,357 | |||||||
Deferred Compensation | 1,828 | 1,772 | |||||||
Shareholders' Equity: | |||||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized; none issued and outstanding | — | — | |||||||
Common stock, $0.01 par value, 15,000,000 shares authorized; 7,950,020 and 7,935,320 shares issued and outstanding | 79 | 79 | |||||||
Additional paid-in capital | 45,709 | 45,871 | |||||||
Retained earnings | 23,554 | 22,571 | |||||||
Total shareholders' equity | 69,342 | 68,521 | |||||||
Total liabilities and shareholders' equity | $ | 84,583 | $ | 93,600 | |||||
IMS ANNOUNCES SECOND QUARTER 2001 RESULTS
Integrated Measurement Systems, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
Integrated Measurement Systems,Inc. Consolidated Balance Sheets (Dollars in thousands, except share data)