Exhibit 99.1
ADE Corporation Continues Sequential Growth of Revenues and Net Income
in Third Fiscal Quarter
WESTWOOD, Mass.--(BUSINESS WIRE)--March 2, 2004--
Reports Further Increases in Bookings and Backlog
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 third quarter
ended January 31, 2004.
ADE's revenue grew to $23.1 million in the third quarter of fiscal
2004, up 14 percent compared with $20.2 million for the second quarter
of fiscal 2004 and up 25 percent compared with $18.5 million for the
third quarter of fiscal 2003. ADE's net income for the third quarter
was $2.0 million, or $0.14 per diluted share. This compares with net
income of $1.7 million, or $0.12 per diluted share, in the second
quarter of fiscal 2004 and net income of $594,000, or $0.04 per
diluted share, in the third quarter of fiscal 2003. In the quarter
ended October 31, 2003, ADE's net income figure had included a tax
refund of approximately $360,000.
"Acceleration in growing 300mm wafer utilization and continued
200mm capacity expansion generated another quarter of strengthened
demand for ADE's advanced tools," said Dr. Chris L. Koliopoulos, ADE's
president and chief executive officer. "During our third fiscal
quarter, customer interest in our AWIS(TM) Advanced Wafer Inspection
System was particularly strong, reflecting ADE's ability to gain share
in this important particle tool market segment. And our AFS(TM)
Advanced Flatness System and WaferSight high-resolution optical tools
continue to set the standard for wafer flatness metrology around the
globe."
ADE increased its backlog by 16 percent sequentially to $36.6
million on January 31, 2004 from $31.5 million on October 31, 2003.
Business activity remained strongest for ADE in Japan during the third
fiscal quarter as major wafer suppliers announced further expansion of
300mm capacity, followed by further orders from Asia. For the quarter,
the Company generated 40 percent of its revenue in Japan, 31 percent
in the Asia Pacific region, 17 percent in Europe and 12 percent in the
United States. ADE's revenue breakdown by end market for the third
fiscal quarter was 80 percent bare wafer, 10 percent device and 10
percent magnetic data storage.
Gross margin increased to 51 percent during the third fiscal
quarter, compared with 49 percent in the second quarter of fiscal
2004, reflecting improvements in operational efficiencies and changes
in sales mix.
Cash and cash equivalents totaled $34.7 million at January 31,
2004 compared with $21.5 million at the end of fiscal 2003. This
increase was achieved primarily through ADE's positive operating cash
flow and the sale of certain assets.
ADE Chief Financial Officer Brian James said, "The third fiscal
quarter was a resounding success for ADE from a financial perspective.
The Company exceeded virtually every target that we had set for the
business, including our revenue and earnings guidance. We are seeing
many of our cost structure actions provide improving margins that are
flowing through to the bottom line. Given the continued growth in our
backlog and our enhanced operating leverage, we believe that we can
post even stronger results to close out the fiscal year."
Looking Ahead
"Forecasts of expansion for silicon demand throughout 2004 with
continuing sustainable growth into 2005, are growth indicators for
ADE. We are ready with our advanced suite of metrology and inspection
tools to meet the needs of our customers during this industry
upcycle," added Dr. Koliopoulos. "During the fourth fiscal quarter and
beyond, we will continue to focus on maintaining our technology
leadership with further advances in our product lines, growing our
profits and increasing value for our shareholders."
For the fourth quarter of fiscal 2004, ADE anticipates that
revenues will increase sequentially by approximately eight to 12
percent. Gross margins for the fourth quarter are expected to be in
the range of 50 to 52 percent. ADE expects that it will report net
income of between $0.17 to $0.22 per share for the fourth quarter of
fiscal 2004, based on 14.2 million shares outstanding. "Our visibility
continues to improve, and we are reasonably confident that we can see
further gains in revenues and profitability as we begin fiscal 2005,"
said Mr. James.
Conference Call Reminder
ADE will host a conference call and webcast on Wednesday, March 3,
2004 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. 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 year.
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 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 fourth quarter of fiscal 2004 and early fiscal
2005. 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 growth in backlog and enhanced operating
leverage; the Company's ability to increase gross margins; its
visibility; and the effects of the real estate market on the Company's
property initiatives. 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 Nine months ended
January 31 January 31
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenue $23,129 $18,465 $62,401 $51,261
Cost of revenue 11,430 9,492 32,184 28,441
-------- -------- -------- --------
Gross profit 11,699 8,973 30,217 22,820
-------- -------- -------- --------
Operating expenses:
Research and development 3,688 3,637 11,090 12,829
Marketing and sales 3,006 2,584 7,420 8,294
General and administrative 3,432 2,094 8,094 7,389
Restructuring charges - - 393 1,588
-------- -------- -------- --------
Total operating expenses 10,126 8,315 26,997 30,100
-------- -------- -------- --------
Income (loss) from operations 1,573 658 3,220 (7,280)
Gain on sale of long-term
investment - - 1,729 -
Gain on sale of marketable
securities 398 - 398 -
Interest and other income
(expense), net 61 (160) (42) (368)
-------- -------- -------- --------
Income (loss) before provision for
(benefit from) income
taxes and equity in net earnings
of affiliated companies 2,032 498 5,305 (7,648)
Provision for (benefit from) income
taxes 11 36 (174) 71
-------- -------- -------- --------
Income (loss) before equity in net
earnings of
affiliated companies 2,021 462 5,479 (7,719)
Equity in net earnings of
affiliated companies - 132 48 102
-------- -------- -------- --------
Net income (loss) $2,021 $594 $5,527 $(7,617)
======== ======== ======== ========
Basic earnings (loss) per share $0.15 $0.04 $0.40 $(0.56)
Diluted earnings (loss) per share $0.14 $0.04 $0.39 $(0.56)
Weighted average shares outstanding
- basic 13,934 13,721 13,859 13,699
Weighted average shares outstanding
- diluted 14,250 13,742 14,077 13,699
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
January April
31, 2004 30, 2003
Assets
Cash and cash equivalents $34,702 $21,476
Marketable securities 1,334 1,060
Accounts receivable, net 18,674 13,385
Inventories 32,797 29,349
Other current assets 944 1,046
--------- ---------
Total current assets 88,451 66,316
Fixed assets, net 11,120 20,923
Investments 503 3,724
Restricted cash 635 3,157
Other assets 6,705 6,996
--------- ---------
Total assets $107,414 $101,116
========= =========
Liabilities and Stockholders' Equity
Total current liabilities $19,548 $16,237
Deferred gain on sale-leaseback 1,637 -
Long-term debt 3,651 10,082
Total stockholders' equity 82,578 74,797
--------- ---------
Total liabilities and stockholders' equity $107,414 $101,116
========= =========
CONTACT: ADE Corporation
Brian James, 781-467-3500