Exhibit 99.1
ADE Reports Continued Revenue Growth in Fourth Quarter;
Profits Reach Six-Year High;
Company Closes Fiscal 2004 with Strong Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--June 22, 2004--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 fourth
quarter and fiscal year ended April 30, 2004.
Revenue grew to $26.2 million in the fourth quarter of fiscal 2004, up 13
percent from $23.1 million in the third quarter of fiscal 2004, and up 31
percent from $20.0 million in the fourth quarter of fiscal 2003. ADE's net
income for the fourth quarter increased 61 percent to $3.2 million, or $0.23 per
diluted share, from $2.0 million, or $0.14 per diluted share, for the third
quarter of fiscal 2004. The Company reported net income of $211,000, or $0.02
per diluted share, for the fourth quarter of fiscal 2003.
"ADE demonstrated the strength of its business in the fourth quarter of
fiscal 2004 by delivering further growth in revenue, bookings and profits," said
Dr. Chris L. Koliopoulos, ADE's president and chief executive officer. "High
utilization rates at 200mm and 300mm silicon wafer manufacturers worldwide have
triggered aggressive capacity expansion to meet planned growth, especially due
to more 300mm semiconductor device fab activity. Given ADE's strong position in
the wafer inspection and metrology industry, our business continues to benefit
from this trend.
"Revenue for the quarter reached a three-year high and ADE profits
approached record levels, reaching a six-year high," continued Dr. Koliopoulos.
"We have created a new ADE over the past 12 months, one which, quarter by
quarter, has sequentially generated stronger performance and a stronger balance
sheet, increased market share and substantially enhanced shareholder value."
ADE's backlog increased 14 percent to $41.5 million on April 30, 2004 from
$36.6 million on January 31, 2004. Gross margin was 51 percent for the fourth
fiscal quarter, in line with guidance, and up from 47 percent for the fourth
quarter a year ago. The year-over-year increase in gross margin was achieved
through improvements in ADE's operational efficiencies and changes in its sales
mix.
Cash and cash equivalents totaled $41.6 million at April 30, 2004 compared
with $21.5 million at the end of fiscal 2003. This 94 percent increase was
achieved through ADE's positive operating cash flow for fiscal 2004 and the sale
of certain non-core assets.
Fiscal 2004 Results
For the fiscal year ended April 30, 2004, ADE's revenue increased 24
percent to $88.6 million from $71.2 million in fiscal 2003. For the full year,
ADE's net income was $8.8 million, or $0.62 per diluted share. This compares
with a net loss of $7.4 million, or $0.54 per share, for fiscal 2003, a $1.16
per share turnaround year over year.
ADE Chief Financial Officer Brian James said, "ADE's full-year 2004
financial results demonstrate that the changes we made in our operational model,
when coupled with the strength of our product offering, deliver outstanding
leverage in our operating model. In fact, over 90% of our revenue growth in
fiscal 2004 flowed through to our bottom line. This helped us nearly double our
cash balance while also paying off the majority of ADE's debt."
Looking Ahead
"The current flow of new 300mm wafer fab projects shows no signs of ebbing,
and we expect this capacity expansion to continue for the foreseeable future,"
added Dr. Koliopoulos. "To ensure that we remain ahead of wafer and device
makers' technology requirements, ADE continues its significant investments in
research and development. At Semicon West in July, we plan multiple product
introductions for the semiconductor device and silicon wafer production process
control markets. ADE will also ramp up its global customer support organization
aimed at maintaining its leadership in the wafer industry and increasing the
penetration of ADE technology into the semiconductor device market. We believe
that initiatives such as these will enable ADE to continue its growth and
profitability in fiscal 2005."
For the first quarter of fiscal 2005, ADE anticipates that revenues will
continue to rise sequentially, increasing in the range of 6 to 12 percent. We
expect that this will result in reported earnings between 24 and 30 cents per
share for the first quarter, assuming 14.3 million weighted average shares
outstanding.
Conference Call Reminder
ADE will host a conference call and webcast on June 23, 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, plans and anticipations should be considered forward-looking
statements. These statements include, but are not limited to those associated
with the anticipated expansion of 300mm capacity as well as the Company's
ability to capitalize on this trend; the Company's future product introductions;
the Company's research and development and sales and marketing initiatives; and
the Company's financial performance for the first quarter and full year 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; 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.
Below 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 Twelve months
ended ended
April 30 April 30
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenue $26,184 $19,986 $88,585 $71,247
Cost of revenue 12,858 10,513 45,043 38,954
-------- -------- -------- --------
Gross profit 13,326 9,473 43,542 32,293
-------- -------- -------- --------
Operating expenses:
Research and development 3,995 4,187 15,085 17,017
Marketing and sales 3,015 3,221 10,435 11,514
General and administrative 2,915 1,840 11,009 9,229
Restructuring charges - - 393 1,588
-------- -------- -------- --------
Total operating expenses 9,925 9,248 36,922 39,348
-------- -------- -------- --------
Income (loss) from operations 3,401 225 6,620 (7,055)
Gain on sale of long-term
investment - - 1,729 -
Gain on sale of marketable
securities - - 398 -
Interest and other income
(expense), net 66 (67) 24 (434)
-------- -------- -------- --------
Income (loss) before provision
for income taxes and equity in
net earnings of affiliated
companies 3,467 158 8,771 (7,489)
Provision for income taxes 220 20 46 91
-------- -------- -------- --------
Income (loss) before equity in
net earnings of
affiliated companies 3,247 138 8,725 (7,580)
Equity in net earnings of
affiliated companies - 73 48 175
-------- -------- -------- --------
Net income (loss) $3,247 $211 $8,773 $(7,405)
======== ======== ======== ========
Basic earnings (loss) per share $0.23 $0.02 $0.63 $(0.54)
Diluted earnings (loss) per share $0.23 $0.02 $0.62 $(0.54)
Weighted average shares outstanding
- basic 13,972 13,747 13,887 13,710
Weighted average shares outstanding
- diluted 14,288 13,748 14,127 13,710
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
April 30, April 30,
2004 2003
Assets
Cash and cash equivalents $41,560 $21,476
Marketable securities 1,084 1,060
Accounts receivable, net 13,604 13,385
Inventories 32,745 29,349
Other current assets 1,068 1,046
--------- ---------
Total current assets 90,061 66,316
Fixed assets, net 10,829 20,923
Investments 499 3,724
Restricted cash 637 3,157
Other assets 6,449 6,996
--------- ---------
Total assets $108,475 $101,116
========= =========
Liabilities and Stockholders' Equity
Total current liabilities $17,089 $16,237
Deferred gain on sale-leaseback 1,609 -
Long-term debt 3,608 10,082
Total stockholders' equity 86,169 74,797
--------- ---------
Total liabilities and stockholders' equity $108,475 $101,116
========= =========
CONTACT: ADE Corporation
Brian James, 781-467-3500
Executive VP and Chief Financial Officer