Exhibit 99.1
ADE Corporation Reports Continued Profitability and Strong Cash Flow
in First Quarter; Company Posts Fourth Consecutive Quarter of Bookings
Growth
WESTWOOD, Mass.--(BUSINESS WIRE)--Sept. 2, 2003--ADE Corporation
(NASDAQ: ADEX), a leading supplier of production metrology and
inspection systems for the semiconductor wafer, semiconductor device,
magnetic data storage and optics manufacturing industries, today
reported financial results for the first quarter of fiscal 2004 ended
July 31, 2003.
ADE President and Chief Executive Officer Dr. Chris L. Koliopoulos
noted, "ADE got off to a strong start in fiscal 2004 as we capitalized
on increasing demand for our metrology and inspection tools, generated
profits for the third consecutive quarter and significantly bolstered
our balance sheet by increasing cash and reducing debt. Each of these
accomplishments resulted from our concerted effort to make ADE as
strong financially as it is technologically."
ADE reported revenues of $19.1 million for the first quarter of
fiscal 2004. This compares with $14.7 million for the first quarter of
fiscal 2003 and $20.0 million for the fourth quarter of fiscal 2003.
ADE's net income for the first quarter of fiscal 2004 was $1.8
million, or $0.13 per diluted share, with 13.8 million weighted
average shares outstanding. First quarter fiscal 2004 net income
included approximately $400,000 in severance charges as well as $1.7
million of income from the gain in the sale of a portion of the
Company's 50% ownership in Japan ADE, Ltd. (JAL) to its joint venture
partner, Kanematsu Electronics, Ltd. This first-quarter income
compares with a net loss of $5.8 million, or $0.42 per share, with
13.7 million weighted average shares outstanding, for the first
quarter of fiscal 2003. This also compares with net income of $0.2
million, or $0.02 per diluted share, with 13.7 million weighted
average shares outstanding, for the fourth quarter of fiscal 2003.
Backlog increased to $27.4 million on July 31, 2003 compared with
$25.1 million on April 30, 2003. Cash and cash equivalents totaled
$33.0 million at July 31, 2003. This compares with $21.5 million in
cash and cash equivalents at April 30, 2003. ADE increased its cash by
generating operating profits, while also completing the aforementioned
JAL transaction and the sale and leaseback of the Company's Westwood,
Massachusetts headquarters. Notably during the first quarter, the
Company also retired approximately $6.3 million of its $10.1 million
in industrial development bonds used in financing its three
manufacturing facilities.
"As 300mm wafer capacity increases due to the expansion of 300mm
device fabs, a number of our tools -- including NanoMapper, AFS and
WaferSight -- have become essential tools for wafer makers, and we
received multiple orders for our 300mm products in the first quarter,"
Dr. Koliopoulos said.
"ADE has improved its financial position continuously over the
past several quarters, and we are clearly in better shape today than
we have been in years," stated ADE Chief Financial Officer Brian
James. "We are consistently generating profits, our gross margins are
solid, and we have the cash necessary to execute our growth strategy.
The sequential increase in new orders again this quarter speaks well
to our market position and our ability to benefit from an industry
upturn."
Looking Ahead
"The latest industry research suggests that the wafer and device
markets are now at the beginning of an upturn," Dr. Koliopoulos said.
"At ADE, we have taken the steps necessary to capitalize on this
growing demand. We have lowered our cost structure, greatly improved
our operating efficiency and rolled out an advanced suite of metrology
and inspection products. At the same time, we have increased our
liquidity and continued to invest in our next generation of
technologies for the wafer, device and data storage markets. This
provides us with great confidence in ADE's near- and long-term
financial success."
The Company anticipates that revenues for the second quarter of
fiscal 2004 will be at or slightly above those reported in the first
quarter of fiscal 2004. Excluding the first-quarter gain derived from
the JAL transaction, ADE also expects that its net income will
increase sequentially.
Conference Call Reminder
ADE will host a conference call to discuss the Company's first
quarter fiscal 2004 financial results on Wednesday, September 3, 2003
at 8:30 a.m. (ET). To participate in the webcast, please visit the
"Investor Relations" section of the ADE website, located at
http://www.ade.com, fifteen minutes prior to the start of the
conference call.
About ADE Corporation
ADE Corporation is a leading supplier of metrology and inspection
systems for the semiconductor wafer, semiconductor device, magnetic
data storage and optics manufacturing industries. The Company's
systems analyze and report product quality at critical manufacturing
steps for yield enhancement, providing quality certification data that
is relied upon by semiconductor wafer, device and computer disk
manufacturers. The Company's systems also are used for production
measurements in the semiconductor chip fabrication process. To learn
more about ADE, visit the Company's Web site at www.ade.com.
Safe Harbor
This news release contains certain forward-looking statements that
are subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Those statements that make reference to
the Company's expectations, predictions, beliefs, assumptions and
anticipations should be considered forward-looking statements. These
statements include, but are not limited to, those associated with
expected demand in the wafer, device and data storage markets as well
as the Company's ability to capitalize on this demand; and the
Company's financial performance for the second quarter of fiscal 2004
and full year 2004. These statements involve risks and uncertainties
including those associated with the strength of the semiconductor,
data storage and device markets; wafer pricing and wafer demand; the
results of its product development efforts; the success of ADE's
product offerings to meet customer needs within the timeframes
required by customers in these markets; the Company's ability to
increase gross margins, its visibility; and the effects of the real
estate market on the Company's property initiatives. Further
information on potential factors that could affect ADE Corporation's
business is described in the Company's reports on file with the
Securities and Exchange Commission, including its Form 10-K for the
fiscal year ended April 30, 2003.
Attached are the Company's condensed consolidated statements of
operations and balance sheets.
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three months ended
July 31
2003 2002
Revenue $19,066 $14,740
Cost of revenue 10,532 8,942
Gross profit 8,534 5,798
Operating expenses:
Research and development 3,697 4,844
Marketing and sales 2,005 2,800
General and administrative 2,165 2,853
Restructuring charges 393 877
Total operating expenses 8,260 11,374
Income (loss) from operations 274 (5,576)
Gain on sale of long-term investment 1,729 -
Interest and other income (expense), net (162) (119)
Income (loss) before provision for income taxes
and equity in net earnings (loss) of affiliated
companies 1,841 (5,695)
Provision for income taxes 88 22
Income (loss) before equity in net earnings
(loss) of affiliated companies 1,753 (5,717)
Equity in net earnings (loss) of affiliated
companies 48 (64)
Net income (loss) $1,801 $(5,781)
Basic earnings (loss) per share $0.13 $(0.42)
Diluted earnings (loss) per share $0.13 $(0.42)
Weighted average shares outstanding - basic 13,768 13,679
Weighted average shares outstanding - diluted 13,827 13,679
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
July 31, April 30,
2003 2003
Assets
Cash and cash equivalents $32,982 $21,476
Marketable securities 1,706 1,060
Accounts receivable, net 11,661 13,385
Inventories 29,283 29,349
Other current assets 1,198 1,046
Total current assets 76,830 66,316
Fixed assets, net 12,039 20,923
Investments 500 3,724
Restricted cash 1,054 3,157
Other assets 6,755 6,996
Total assets $97,178 $101,116
Liabilities and Stockholders' Equity
Total current liabilities $13,825 $16,237
Deferred gain on sale-leaseback 1,694 -
Long-term debt 3,735 10,082
Total stockholders' equity 77,924 74,797
Total liabilities and stockholders' equity $97,178 $101,116
CONTACT: ADE Corporation
Brian James, 781-467-3500