Exhibit 99.1
ADE Corporation Reports Revenue Growth
and Continued Profitability in Second Quarter;
Sequential Growth in New Orders Continues
WESTWOOD, Mass.--(BUSINESS WIRE)--Dec. 2, 2003--ADE Corporation
(Nasdaq: ADEX), a leading supplier of production metrology and
inspection systems for the semiconductor wafer, semiconductor device,
magnetic storage and optics manufacturing industries, today reported
its financial results for the second quarter ended October 31, 2003.
ADE reported revenues of $20.2 million in the second quarter of
fiscal 2004 compared with $19.1 million for the first quarter of
fiscal 2004 and $18.1 million for the second quarter of fiscal 2003.
ADE's net income for the second quarter was $1.7 million, or $0.12 per
diluted share. This figure includes a tax refund of approximately
$300,000. This compares with net income of $1.8 million, or $0.13 per
diluted share, in the first quarter of fiscal 2004 and a net loss of
$2.4 million, or $0.18 per share, in the second quarter of fiscal
2003. First quarter fiscal 2004 net income included approximately
$400,000 in severance charges as well as $1.7 million of income from
the gain of the sale of a portion of the Company's 50% ownership in
Japan ADE, Ltd. (JAL) to its joint venture partner, Kanematsu
Electronics, Ltd.
Backlog increased 15% to $31.5 million on October 31, 2003 from
$27.4 million on July 31, 2003. Cash and cash equivalents totaled
$34.9 million at October 31, 2003. This compares with $21.5 million in
cash and cash equivalents at fiscal 2003 ended April 30, 2003.
"ADE's increased revenues, bookings and backlog demonstrate our
success in capitalizing on the upturn in the semiconductor industry
and executing on key elements of our growth strategy," said Dr. Chris
L. Koliopoulos, ADE's president and chief executive officer. "Higher
utilization has triggered capacity expansion by both wafer and device
manufacturers as they ramp up 300mm production as well as advanced
200mm for 130nm and 90nm processes. Once again, ADE received the
largest order in its history, setting a new high mark that was
previously set in the quarter before. Wafer and device manufacturers
continue to turn to ADE for advanced metrology and inspection
equipment that meets their stringent requirements. As a result, we
continue to experience strong quote and order activity in our primary
served markets."
ADE's second-quarter revenue and bookings strength was driven by
continuing demand for the Company's industry-leading 200mm tools as
well as 300mm inspection and metrology tools - such as WaferSight,
NanoMapper and AWIS systems. Order strength has been strongest in the
Asia Pacific region and Japan in recent months, and ADE expects that
trend to continue in the months ahead.
ADE Chief Financial Officer Brian James stated, "We continue to
reap the benefits of our cost-reduction actions taken over the past
two years. Coupled with our enhanced revenue performance, these
actions enabled ADE to generate gross margins of 49 percent for the
quarter, compared with 45 percent gross margins in the first quarter
of fiscal 2004. In addition, ADE continued to generate positive cash
flow and ended the quarter with nearly $35 million in cash and cash
equivalents, which is up from $21.5 million at April 30, 2003."
Looking Ahead
"With demand for our advanced tools on the rise and our plans to
roll out new products in coming months, ADE is positioned to respond
to the semiconductor market and deliver further solid gains in the
emerging up cycle," stated Dr. Koliopoulos.
For the third quarter of fiscal 2004, ADE anticipates that
revenues will increase sequentially by approximately 7-12%. Gross
margins for the third quarter are expected to be in the range of 46
percent to 49 percent. Based on ADE's expectation that it will go to
trial with KLA-Tencor on patent infringement issues in January, the
Company anticipates a significant sequential increase in related
general and administrative expenses. ADE expects that, even with these
additional extraordinary expenses, it will report net income of
between $0.06 and $0.09 per share for the third quarter of fiscal
2004.
Conference Call Reminder
ADE will host a conference call and webcast on Wednesday, December
3, 2003 at 8:30 a.m. Eastern Time (ET) to discuss these financial
results. To participate in the webcast, please visit the "Investor
Relations" section at the ADE website, located at www.ade.com, fifteen
minutes prior to the start of the conference call. This will allow
participants the time to download and install any necessary audio
software. The software and broadcast can be obtained at no charge to
the user. A replay of the call will be available on the website two
hours after the completion of the conference call and will continue to
be available for a period of one week.
About ADE Corporation
ADE Corporation is a leading supplier of metrology and inspection
systems required for production in the silicon wafer, semiconductor
device, magnetic data storage and optics manufacturing industries. The
Company's systems analyze and report product quality at critical
manufacturing process 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
http://www.ade.com.
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, assumptions and anticipations
should be considered forward-looking statements. These statements
include, but are not limited to those associated with the Company's
product rollout plans; trends in the Asia Pacific region and Japan
related to orders; expected demand in the wafer, device and data
storage markets as well as the Company's ability to capitalize on this
demand; developments in the Company's ongoing patent litigation with
KLA-Tencor and the Company's financial performance for the third
quarter of fiscal 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 and its visibility. ADE disclaims
any intent or obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. 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 Six months ended
October 31 October 31
2003 2002 2003 2002
Revenue $20,206 $18,055 $39,271 $32,795
Cost of revenue 10,223 10,007 20,754 18,949
Gross profit 9,983 8,048 18,517 13,846
Operating expenses:
Research and development 3,704 4,349 7,401 9,192
Marketing and sales 2,409 2,909 4,414 5,709
General and administrative 2,496 2,441 4,661 5,295
Restructuring charges - 711 393 1,588
Total operating expenses 8,609 10,410 16,869 21,784
Income (loss) from operations 1,374 (2,362) 1,648 (7,938)
Gain on sale of long-term
investment - - 1,729 -
Interest and other income
(expense), net 58 (88) (104) (207)
Income (loss) before (benefit
from) provision for income taxes
and equity in net earnings (loss)
of affiliated companies 1,432 (2,450) 3,273 (8,145)
(Benefit from) provision for
income taxes (273) 14 (185) 35
Income (loss) before equity in net
earnings (loss) of affiliated
companies 1,705 (2,464) 3,458 (8,180)
Equity in net earnings (loss) of
affiliated companies - 34 48 (31)
Net income (loss) $ 1,705 $(2,430) $ 3,506 $(8,211)
Basic earnings (loss) per share $ 0.12 $ (0.18) $ 0.25 $ (0.60)
Diluted earnings (loss) per share $ 0.12 $ (0.18) $ 0.25 $ (0.60)
Weighted average shares
outstanding - basic 13,875 13,695 13,822 13,688
Weighted average shares
outstanding - diluted 14,196 13,695 14,057 13,688
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
October 31, 2003 April 30, 2003
Assets
Cash and cash equivalents $ 34,908 $ 21,476
Marketable securities 1,915 1,060
Accounts receivable, net 14,147 13,385
Inventories 29,185 29,349
Other current assets 1,054 1,046
Total current assets 81,209 66,316
Fixed assets, net 11,286 20,923
Investments 503 3,724
Restricted cash 1,056 3,157
Other assets 6,740 6,996
Total assets $ 100,794 $ 101,116
Liabilities and Stockholders' Equity
Total current liabilities $ 14,831 $ 16,237
Deferred gain on sale-leaseback 1,666 -
Long-term debt 3,693 10,082
Total stockholders' equity 80,604 74,797
Total liabilities and
stockholders' equity $ 100,794 $ 101,116
CONTACT: ADE Corporation
Brian James, 781-467-3500