Exhibit 99.1
LTX Announces Fourth Quarter and Fiscal Year Results
WESTWOOD, Mass.--(BUSINESS WIRE)--Aug. 26, 2004--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its fourth quarter and fiscal
year ended July 31, 2004. The operating results for the quarter were
at the high end of Company guidance.
Sales for the quarter were $80,434,000, up from $70,333,000 in the
third quarter, with net income of $8,896,000, or $0.14 per share. Net
income for the third fiscal quarter was $4,306,000, or $0.07 per
share. Sales were $33,654,000 for the fourth quarter of fiscal year
2003 and net loss was $(81,531,000), or $(1.61) per share. New orders
for the fourth quarter were $66 million, down 15% from the prior
quarter and up 64% from the fourth quarter last fiscal year. There
were no customer cancellations during the quarter.
For the twelve-month period ended July 31, 2004, sales were
$255,801,000 compared to $119,449,000 in the preceding fiscal year.
Net income was $1,961,000, or $0.03 per share. For the prior fiscal
year, net loss was $(145,068,000), or $(2.92) per share.
Roger W. Blethen, chairman and chief executive officer of LTX
commented, "We met our financial and operating targets for the quarter
including generating higher revenues and higher net income. While
overall orders were lower than anticipated, we saw a much broader mix
of customers contributing to the total, including five different
companies that each represented greater than 10% of orders during the
quarter."
Mr. Blethen continued, "During the fiscal year, we achieved
several strategic objectives: we moved to volume production on two
second-generation Fusion systems, gained share in the subcontract test
market, demonstrated the operating leverage of our business model and
strengthened our balance sheet.
As we enter fiscal year 2005, LTX believes it is entering a period
where the current growth cycle has stalled for the industry. Although
we cannot predict the magnitude and duration of this pullback, we
believe our business model allows us maximum flexibility to respond to
changing conditions, whichever direction the business cycle follows."
First Quarter 2005 Outlook
For the quarter ending October 31, 2004, revenue is expected to be
in the range of $54 million to $57 million, with gross margin at
approximately 38%. The loss per share is projected to be in the range
of $(0.07) to $(0.10) assuming 61.1 million average shares
outstanding. This guidance does not include any provisions for unusual
charges.
The Company will conduct a conference call today, August 26, 2004,
at 4:30 PM EDT to discuss this release. The conference call will be
simulcast via the LTX web site (www.ltx.com). Audio replays of the
call can be heard through September 8, 2004 via telephone by dialing
888-286-8010, passcode 93953995 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, earnings
guidance and the business cycle, 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 and enVision++ is a
trademark of LTX Corporation.
LTX CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands)
July 31, July 31,
2004 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $95,112 $73,167
Marketable securities 149,601 63,416
Accounts receivable - trade 32,961 12,033
Accounts receivable - other 11,494 5,192
Inventories 69,220 66,852
Prepaid expense 9,828 10,989
--------- ---------
Total current assets 368,216 231,649
Property and equipment, net 71,329 73,443
Goodwill and other intangible assets 15,763 14,764
Other assets 4,256 5,040
--------- ---------
$459,564 $324,896
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $- $19,459
Current portion of long-term debt 321 1,262
Accounts payable 37,438 13,380
Deferred revenues and customer advances 3,520 4,738
Deferred gain on leased equipment 6,852 10,350
Other accrued expenses 27,183 26,555
--------- ---------
Total current liabilities 75,314 75,744
--------- ---------
Long-term debt, less current portion 150,000 150,064
Stockholders' equity 234,250 99,088
--------- ---------
$459,564 $324,896
========= =========
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except earnings per share data)
Three Months Ended Twelve Months Ended
July 31, July 31,
------------------ --------------------
2004 2003 2004 2003
-------- --------- --------- ----------
Net sales $80,434 $33,654 $255,801 $119,449
Cost of sales 45,717 26,821 154,672 97,368
Inventory related provision - 48,483 - 48,483
-------- --------- --------- ----------
Gross profit (loss) 34,717 (41,650) 101,129 (26,402)
Engineering and product
development expenses 17,446 15,675 67,655 66,088
Selling, general and
administrative expenses 7,815 6,240 28,037 27,321
In-process research
and development - 16,100 - 16,100
Reorganization costs - 1,103 - 6,696
-------- --------- --------- ----------
Income (Loss) from
operations 9,456 (80,768) 5,437 (142,607)
Interest income
(expense), net (560) (763) (3,476) (2,461)
-------- --------- --------- ----------
Net income (loss) $8,896 $(81,531) $1,961 $(145,068)
======== ========= ========= ==========
Net income (loss) per share
Basic $0.15 $(1.61) $0.04 $(2.92)
Diluted $0.14 $(1.61) $0.03 $(2.92)
Weighted average shares:
Basic 60,830 50,575 55,927 49,614
Diluted 62,073 50,575 58,057 49,614
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
mark_gallenberger@ltx.com
www.ltx.com