Exhibit 99.2
LTX Announces Second Quarter Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--Feb. 9, 2004--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its fiscal second quarter ended
January 31, 2004. The results exceeded the Company's guidance and
showed significant improvement from the Company's performance in the
previous fiscal quarter.
Sales for the quarter were $58,415,000, up 25% from prior quarter
sales of $46,619,000 and up 115% from the same quarter a year ago. Net
loss for the quarter was $(1,435,000), or $(0.03) per share on a GAAP
basis, compared to a net loss for the 2004 first fiscal quarter of
$(9,806,000), or $(0.19) per share on a GAAP basis. Sales were
$27,011,000 for the second quarter of fiscal year 2003 and net loss
was $(22,877,000), or $(0.46) per share on a GAAP basis, including
reorganization costs of $3,603,000 or $0.07 per share. Orders for the
second quarter of fiscal 2004 were $73.2 million yielding a
book-to-bill ratio of 1.25 to 1.
Roger W. Blethen, chairman and chief executive officer, said,
"While still in the early stages of this new growth cycle, we are
pleased with our progress towards profitability well ahead of most
expectations. Our efforts over the last couple of years to build a
flexible business model, the foundation of which is fully outsourced
manufacturing, appears to be paying off. Our outsourced manufacturing
model has allowed us to grow revenues approximately 75% over the last
six months while providing significant leverage to the bottom line. As
this new growth cycle continues to emerge we are encouraged by our
expanding business with a broader base of customers, and across a
diverse range of end products."
Third Quarter 2004 Outlook
Revenue for the third quarter of fiscal year 2004 is expected to
be in the range of $67 million to $70 million, with gross margin at
approximately 41%. The earnings per share is projected to be in the
range of $0.05 to $0.08, assuming 55.5 million fully diluted shares,
and a 0% tax rate. This guidance does not include any provisions for
one-time charges.
The Company will conduct a conference call today, February 9,
2004, at 4:30 PM EST to discuss second quarter results. The conference
call will be simulcast via the LTX web site (www.ltx.com). Audio
replays of the call can be heard through February 16, 2004 via
telephone by dialing 888.286.8010; passcode 97871278 or by visiting
our web site at www.ltx.com.
"Safe Harbor" Statement: This press release contains
forward-looking statements within the Private Securities Litigation
Reform Act of 1995. Any statements contained in this press release
that relate to prospective events or developments, including, without
limitation, statements regarding our revenue, margin and earnings
guidance, are deemed to be forward-looking statements. Words such as
"believes," "anticipates," "plans," "expects," "projects,"
"forecasts," "will" and similar expressions are intended to identify
forward-looking statements. There are a number of important factors
and risks that could cause actual results or events to differ
materially from those indicated by these forward-looking statements.
Such risks and factors include, but are not limited to, the risk of
fluctuations in sales and operating results, risk related to the
timely development of new products, options and software applications,
as well as the other factors described under "Business Risks" in LTX's
most recently filed annual report on Form 10-K and in our most
recently filed quarterly report on Form 10-Q filed with the Securities
and Exchange Commission. We disclaim any intention or obligation to
update any forward-looking statements.
LTX Corporation (Nasdaq: LTXX) is a leading supplier of test
solutions for the global semiconductor industry. Fusion, LTX's
patented, scalable, single-platform test system, uses innovative
technology to provide high performance, cost-effective testing of
system-on-a-chip, mixed signal, RF, digital and analog integrated
circuits. Fusion addresses semiconductor manufacturers' economic and
performance requirements today, while enabling their technology
roadmap of tomorrow. LTX's web site is www.ltx.com.
LTX and Fusion are registered trademarks of LTX Corporation.
LTX CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands)
January 31, July 31,
2004 2003
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $72,580 $73,167
Marketable Securities 60,249 63,416
Accounts receivable - trade 25,611 12,033
Accounts receivable - other 7,371 5,192
Inventories 62,420 66,852
Prepaid expense 10,415 10,989
Total current assets 238,646 231,649
Property and equipment, net 71,724 73,443
Goodwill and other intangible assets 15,014 14,764
Other assets 4,264 5,040
$329,648 $324,896
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $19,425 $19,459
Current portion of long-term debt 930 1,262
Accounts payable 25,218 13,380
Deferred revenues and customer advances 5,634 4,738
Deferred gain on leased equipment 8,398 10,350
Other accrued expenses 29,487 26,555
Total current liabilities 89,092 75,744
Long-term debt, less current portion 150,000 150,064
Stockholders' equity 90,556 99,088
$329,648 $324,896
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Six Months
Ended Ended
January 31, January 31,
2004 2003 2004 2003
Net sales $58,415 $27,011 $105,034 $57,018
Cost of sales 35,327 22,363 67,850 47,066
Gross margin 23,088 4,648 37,184 9,952
Engineering and product
development expenses 16,487 15,917 33,066 35,020
Selling, general and
administrative expenses 6,841 7,496 13,223 13,895
Reorganization costs - 3,603 - 5,593
Loss from operations (240) (22,368) (9,105) (44,556)
Interest income (expense),
net (1,195) (509) (2,136) (1,005)
Net loss $(1,435) $(22,877) $(11,241) $(45,561)
Net loss per share
Basic $(0.03) $(0.46) $(0.22) $(0.93)
Diluted $(0.03) $(0.46) $(0.22) $(0.93)
Weighted average shares
Basic 52,069 49,253 51,936 49,226
Diluted 52,069 49,253 51,936 49,226
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
Mark_Gallenberger@ltx.com
www.ltx.com