Exhibit 99.1
ADE Corporation Reports Record Earnings;
Grows Second-Quarter Revenue by 45% Year-Over-Year
WESTWOOD, Mass.--(BUSINESS WIRE)--Nov. 30, 2004--ADE Corporation
(Nasdaq: ADEX) today reported its financial results for the second
quarter of fiscal 2005 ended October 31, 2004.
Revenue grew to $29.3 million in the second quarter of fiscal
2005, up three percent from $28.3 million in the first quarter of
fiscal 2005 and up 45 percent from $20.2 million in the second quarter
of fiscal 2004. ADE set a new Company record by generating $6.3
million in net income, or $0.44 per diluted share, for the second
quarter of fiscal 2005. This is an increase of 25 percent from $5.1
million, or $0.35 per diluted share, for the first quarter of fiscal
2005 and an increase of 270 percent from $1.7 million, or $0.12 per
diluted share, for the year-ago quarter.
"Financially, the second quarter was another success for ADE
Corporation and its employees as we posted robust year over year
growth in revenue and set another record for earnings, exceeding net
income totals from the previous quarter's record earnings," said Dr.
Chris L. Koliopoulos, ADE's president and chief executive officer.
"Shipments of 300mm wafer metrology and inspection equipment were
especially strong during the quarter as customers accelerated their
installation schedules. The growth of 300mm wafer capacity continued
to account for a substantial share of our metrology and inspection
system sales. Japan remained the strongest geographic sector for ADE
this quarter, followed by the Asia Pacific region, Europe and the
United States, respectively."
Dr. Koliopoulos continued, "On the technology front, we continue
our work to leverage ADE's patented technology to a broader product
portfolio to provide the Company with additional revenue streams in
new and attractive markets in the semiconductor industry. For
instance, ADE now has unique new product offerings in surface
topography tools for copper CMP monitoring of patterned wafers. We
have also recently launched a yield management and data mining system
for wafer manufacturers and will soon be introducing our next
generation micro-particle inspection and defect classification tools.
These new product offerings will help us increase our share in the
semiconductor device and wafer fabrication market and we expect them
to begin generating revenue for ADE by the end of fiscal 2005."
ADE's backlog increased 53 percent to $48.1 million on October 31,
2004 from $31.5 million on October 31, 2003. Gross margin was 54
percent for the second quarter of fiscal 2005, up from 49 percent for
the second quarter of fiscal 2004. The increase in gross margin was
achieved through improvements in ADE's operational efficiencies and
changes in its product and geographic sales mix as 300mm wafer
capacity expansion continued. ADE generated nearly $4.0 million in
positive cash flow for the second quarter of fiscal 2005. Cash and
cash equivalents totaled $50.2 million at October 31, 2004 and reflect
a 21% sequential increase from $41.6 million at the end of fiscal
2004.
ADE Chief Financial Officer Brian James said, "ADE's stellar
operating leverage was again demonstrated in the second quarter of
fiscal 2005. The Company expanded gross margins to a seven-year high,
grew operating margins to an impressive 22 percent and increased its
cash balance to more than $50 million, ADE's highest level in over 5
years. Our book-to-bill ratio, meanwhile, remained in excess of 1 to
1, higher than industry average for the quarter, although the pace of
orders slowed somewhat as we moved through the quarter."
Looking Ahead
"Like many in our industry we believe near-term visibility has
decreased somewhat and we are seeing mixed signals about spending
plans for the next couple of quarters. This activity leads us to
believe we could possibly be facing a pause in order activity that
translates into a revenue guidance range that is slightly wider than
our historical norm. While we are being prudently cautious in our
guidance, we expect that our earnings and cash flow will remain
strong, as we work toward a year of record earnings," added Dr.
Koliopoulos.
For the third quarter of fiscal 2005, ADE anticipates that
revenues will be in the range of $27 million to $30 million. The
Company expects to achieve gross margins in the range of 50 percent to
52 percent for this period. Based on these factors, ADE expects to
report net income ranging from $0.32 to $0.42 per diluted share for
the third quarter of fiscal 2005. This net income guidance assumes
14.3 million weighted average shares outstanding for the period ending
January 31, 2005.
Conference Call Reminder
ADE will host a conference call and webcast on December 1, 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 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 metrology and inspection
systems for the semiconductor wafer, semiconductor device, magnetic
data storage and optics manufacturing industries. The Company's
systems analyze and report product quality at critical manufacturing
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 www.ade.com, which is
not a part of this release.
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
Company's ability to commercialize new products by the end of fiscal
2005, the need for 200mm and 300mm manufacturers to increase capacity,
and the Company's financial performance for the third quarter and full
fiscal year, as well as other statements under " Looking Ahead" in the
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 Six months ended
October 31 October 31
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenue $29,289 $20,206 $57,601 $39,271
Cost of revenue 13,543 10,223 26,934 20,754
--------- --------- --------- ---------
Gross profit 15,746 9,983 30,667 18,517
--------- --------- --------- ---------
Operating expenses:
Research and development 3,657 3,704 7,283 7,401
Marketing and sales 2,815 2,409 6,285 4,414
General and administrative 2,864 2,496 5,527 4,661
Restructuring charges - - - 393
--------- --------- --------- ---------
Total operating expenses 9,336 8,609 19,095 16,869
--------- --------- --------- ---------
Income from operations 6,410 1,374 11,572 1,648
Gain on sale of long-term
investment - - - 1,729
Interest and other income
(expense), net 71 58 115 (104)
--------- --------- --------- ---------
Income before provision for
(benefit from) income taxes
and equity in net earnings of
affiliated companies 6,481 1,432 11,687 3,273
Provision for (benefit from)
income taxes 178 (273) 326 (185)
--------- --------- --------- ---------
Income before equity in net
earnings of affiliated
companies 6,303 1,705 11,361 3,458
Equity in net earnings of
affiliated companies - - - 48
--------- --------- --------- ---------
Net income $6,303 $1,705 $11,361 $3,506
========= ========= ========= =========
Basic earnings per share $0.45 $0.12 $0.81 $0.25
Diluted earnings per share $0.44 $0.12 $0.80 $0.25
Weighted average shares
outstanding - basic 14,042 13,875 14,024 13,822
Weighted average shares
outstanding - diluted 14,257 14,196 14,271 14,057
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
October 31, 2004 April 30, 2004
Assets
Cash and cash equivalents $50,178 $41,560
Marketable securities 893 1,084
Accounts receivable, net 22,044 13,604
Inventories 32,032 32,745
Other current assets 1,135 1,068
-------------- --------------
Total current assets 106,282 90,061
Fixed assets, net 9,891 10,829
Investments 499 499
Restricted cash 631 637
Other assets 6,367 6,449
-------------- --------------
Total assets $123,670 $108,475
============== ==============
Liabilities and Stockholders' Equity
Total current liabilities $20,700 $17,089
Deferred gain on sale-leaseback 1,553 1,609
Long-term debt 3,521 3,608
Total stockholders' equity 97,896 86,169
-------------- --------------
Total liabilities and
stockholders' equity $123,670 $108,475
============== ==============
CONTACT: ADE Corporation
Brian James, 781-467-3500
Executive VP and Chief Financial Officer