EXHIBIT 99.1
ADE Corporation Reports Record Earnings And 48% Year-Over-Year
Revenue Growth For First Quarter Of Fiscal 2005;
Net Income Increases 56 Percent Sequentially
WESTWOOD, Mass.--(BUSINESS WIRE)--Aug. 24, 2004--ADE Corporation
(Nasdaq: ADEX) today reported its financial results for the first
fiscal quarter of 2005 ended July 31, 2004.
Revenue grew to $28.3 million in the first quarter of fiscal 2005,
up eight percent from $26.2 million in the fourth quarter of fiscal
2004, and up 48 percent from $19.1 million in the first quarter of
fiscal 2004. ADE set a new Company record by generating $5.1 million
in net income, or $0.35 per diluted share, for the first quarter of
fiscal 2005. This is an increase of 56 percent from $3.2 million, or
$0.23 per diluted share, for the fourth quarter of fiscal 2004 and 181
percent from $1.8 million, or $0.13 per diluted share, for the
year-ago quarter. The net income figure for first-quarter fiscal 2004
included approximately $400,000 in severance charges as well as a $1.7
million gain on the sale of a portion of the Company's then 50 percent
ownership in Japan ADE, Ltd. (JAL).
"ADE performed admirably in the first quarter of fiscal 2005,
achieving record earnings while significantly adding to our cash
position," said Dr. Chris L. Koliopoulos, ADE's president and chief
executive officer. "In addition to our financial success, ADE made two
significant new product announcements at Semicon West in July that
utilize our core technologies, broaden our product portfolio and
address growing markets."
"By consistently meeting or exceeding its operational and
financial goals, ADE has been able to take advantage of strategic
opportunities to further strengthen its position in our core silicon
wafer manufacturing market and in the growing area of semiconductor
production process control. ADE will continue to leverage its broad
intellectual property to drive further growth," Dr. Koliopoulos
concluded.
ADE's backlog increased 11 percent to $46.0 million on July 31,
2004 from $41.5 million on April 30, 2004. Gross margin was 53 percent
for the first fiscal quarter, up from 51 percent for the fourth
quarter of fiscal 2004 and up eight hundred basis points from 45
percent for the first quarter a year ago. The increase in gross margin
was achieved through improvements in ADE's operational efficiencies
and changes in its product and geographic sales mix.
ADE generated approximately $4.7 million in positive cash flow for
the first quarter of fiscal 2005. Cash and cash equivalents totaled
$46.2 million at July 31, 2004. This compares with $41.6 million at
the end of fiscal 2004.
ADE Chief Financial Officer Brian James said, "ADE's financial
performance is now among the very best in our industry. We have been
able to leverage a significant portion of our revenue growth directly
to our bottom line while continuing to build a stronger balance sheet
and deliver opportunistic new products. While bare wafer remains the
largest portion of our revenue stream today, we have been able to
enter attractive new markets because of our multiple core
technologies, and this strategy should provide us with new revenue
streams for years to come."
Looking Ahead
"We are proud of the financial success that ADE achieved to open
fiscal 2005, and we believe that we can post even stronger results in
the second quarter," added Dr. Koliopoulos. "While the latest industry
forecasts have been mixed, our near-term visibility remains good. Even
if the pause in capital equipment spending that some have predicted
should occur, we are confident in ADE's technology leadership as well
as its market position, and we are encouraged that the industry will
remain committed to increasing 300mm capacity and this will be a year
of growth for ADE."
For the second quarter of fiscal 2005, ADE anticipates that
revenues will continue to rise sequentially, increasing in the range
of two to eight percent. The Company expects to achieve gross margins
in the range of 51 percent to 53 percent for this period. Based on
these factors, ADE expects to report another quarter of record
earnings, with net income ranging from $0.35 to $0.40 per diluted
share for the second quarter of fiscal 2005. This net income guidance
assumes 14.4 million weighted average shares outstanding for the
period ending October 31, 2004.
Conference Call Reminder
ADE will host a conference call and webcast on August 25, 2004 at
8:30 a.m. Eastern Daylight Time (EDT) to discuss these financial
results. To participate in the webcast, please visit the "Investor
Relations" section of 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 production process
control and quality certification systems for the semiconductor
device, silicon wafer, magnetic data storage, and optics manufacturing
industries. The Company's systems measure and inspect a variety of
bare silicon and patterned wafers for dimensional parameters, surface
defects, particles, and process non-uniformities, analyzing and
reporting product quality at critical manufacturing process steps for
yield enhancement. To learn more about ADE, visit the Company's
Website 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
success of its newly introduced products, the commitment of wafer
manufacturers to 300mm wafer production, the Company's ability to
enter new markets, the Company's financial performance for the second
fiscal quarter of 2005, as well as the other statements under "Looking
Ahead" in this news release. 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; and the Company's
ability to generate strong gross margins. 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, 2004.
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
ended
July 31
-----------------
2004 2003
-------- --------
Revenue $28,313 $19,066
Cost of revenue 13,392 10,532
-------- --------
Gross profit 14,921 8,534
-------- --------
Operating expenses:
Research and development 3,626 3,697
Marketing and sales 3,469 2,005
General and administrative 2,663 2,165
Restructuring charges - 393
-------- --------
Total operating expenses 9,758 8,260
-------- --------
Income from operations 5,163 274
Gain on sale of long-term investment - 1,729
Interest and other income (expense), net 43 (162)
-------- --------
Income before provision for income taxes and equity
in net earnings of affiliated companies 5,206 1,841
Provision for income taxes 148 88
-------- --------
Income before equity in net earnings of
affiliated companies 5,058 1,753
Equity in net earnings of affiliated companies - 48
-------- --------
Net income $5,058 $1,801
======== ========
Basic earnings per share $0.36 $0.13
Diluted earnings per share $0.35 $0.13
Weighted average shares outstanding - basic 14,007 13,768
Weighted average shares outstanding - diluted 14,285 13,827
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
July 31, April 30,
2004 2004
Assets
Cash and cash equivalents $46,229 $41,560
Marketable securities 831 1,084
Accounts receivable, net 14,972 13,604
Inventories 33,245 32,745
Other current assets 1,365 1,068
--------- ---------
Total current assets 96,642 90,061
Fixed assets, net 10,391 10,829
Investments 499 499
Restricted cash 639 637
Other assets 6,408 6,449
--------- ---------
Total assets $114,579 $108,475
========= =========
Liabilities and Stockholders' Equity
Total current liabilities $18,067 $17,089
Deferred gain on sale-leaseback 1,581 1,609
Long-term debt 3,565 3,608
Total stockholders' equity 91,366 86,169
--------- ---------
Total liabilities and stockholders' equity $114,579 $108,475
========= =========
CONTACT: ADE Corporation
Brian James, 781-467-3500
Executive VP and Chief Financial Officer