Exhibit 99.1
LTX Announces Third Quarter Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--May 13, 2004--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its fiscal third quarter ended
April 30, 2004. The results were at the high-end of the Company's
guidance and showed significant improvement from the previous quarter.
Sales for the quarter were $70,333,000, up 20% from prior quarter
sales of $58,415,000. Net income for the quarter was $4,306,000, or
$0.07 per share, compared to a net loss for the 2004 second fiscal
quarter of $(1,435,000), or $(0.03) per share. Sales were $28,777,000
for the third quarter of fiscal year 2003 and net loss was
$(17,976,000), or $(0.36) per share. Orders for the third quarter of
fiscal 2004 were $77.3 million yielding a book-to-bill ratio of 1.1 to
1.
Roger W. Blethen, chairman and chief executive officer, said, "LTX
achieved its business objectives for the third quarter. Revenues and
earnings were at the high end of the guidance range and product orders
were up 27%. Strength during the quarter came from an expanding base
of IDM and subcontract customers across a diverse range of SOC
applications. LTX benefited from robust market conditions, a solid
business strategy, and strong execution by the LTX team.
Based on improving industry conditions, an expanding range of
end-market applications, and high capacity utilization at our
customers, we believe that LTX's Fusion platform and outsourced
manufacturing model present a great opportunity to win customers and
gain market share by investing in technology and emerging business
opportunities."
Fourth Quarter 2004 Outlook
Revenue for the fourth quarter of fiscal year 2004 is expected to
be in the range of $77 million to $80 million, with gross margin at
approximately 43%. The earnings per share is projected to be in the
range of $0.12 to $0.14, assuming 64.2 million fully diluted shares,
and a 0% tax rate. This guidance does not include any provisions for
special charges.
The Company will conduct a conference call today, May 13, 2004, at
10:00 AM EDT to discuss third 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 May 27, 2004 via telephone by dialing
888.286.8010; passcode 45279742 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)
April 30, July 31,
2004 2003
(Unaudited) (Audited)
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $78,514 $73,167
Marketable Securities 150,518 63,416
Accounts receivable - trade 35,365 12,033
Accounts receivable - other 9,391 5,192
Inventories 74,078 66,852
Prepaid expense 9,892 10,989
------------ -----------
Total current assets 357,758 231,649
Property and equipment, net 72,031 73,443
Goodwill and other intangible assets 14,838 14,764
Other assets 4,525 5,040
------------ -----------
$449,152 $324,896
------------ -----------
------------ -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $- $19,459
Current portion of long-term debt 522 1,262
Accounts payable 34,061 13,380
Deferred revenues and customer advances 2,743 4,738
Deferred gain on leased equipment 7,625 10,350
Other accrued expenses 30,289 26,555
------------ -----------
Total current liabilities 75,240 75,744
Long-term debt, less current portion 150,000 150,064
Stockholders' equity 223,912 99,088
------------ -----------
$449,152 $324,896
------------ -----------
------------ -----------
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Nine Months
Ended Ended
April 30, April 30,
------------------ -------------------
2004 2003 2004 2003
-------- --------- --------- ---------
Net sales $70,333 $28,777 $175,367 $85,795
Cost of sales 41,105 23,481 108,955 70,547
-------- --------- --------- ---------
Gross margin 29,228 5,296 66,412 15,248
Engineering and product
development expenses 17,143 15,393 50,209 50,413
Selling, general and
administrative expenses 6,999 7,186 20,222 21,081
Reorganization costs - - - 5,593
-------- --------- --------- ---------
Income (loss) from
operations 5,086 (17,283) (4,019) (61,839)
Interest income (expense), net (780) (693) (2,916) (1,698)
-------- --------- --------- ---------
Net Income (loss) $4,306 $(17,976) $(6,935) $(63,537)
======== ========= ========= =========
Net income (loss) per share
Basic $0.07 $(0.36) $(0.13) $(1.29)
Diluted $0.07 $(0.36) $(0.13) $(1.29)
Weighted average shares
Basic 58,826 49,429 54,199 49,294
Diluted 61,622 49,429 54,199 49,294
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
Mark_Gallenberger@ltx.com
www.ltx.com