Exhibit 99.1
LTX Announces Second Quarter Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--Feb. 16, 2005--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its fiscal second quarter ended
January 31, 2005. The results were in-line with the Company's updated
guidance provided on February 2, 2005.
Sales for the quarter were $27,036,000, down 37% from prior
quarter sales of $43,033,000. Net loss for the quarter was
$(19,183,000), or $(0.31) per share on a GAAP basis compared to a net
loss for the 2005 first fiscal quarter of $(61,673,000), or $(1.01)
per share on a GAAP basis, which included excess and obsolete
inventory and restructuring charges totaling $50,572,000, or $(0.83)
per share. Sales were $58,415,000 for the second quarter of fiscal
year 2004 and net loss was $(1,435,000), or $(0.03) per share on a
GAAP basis. Incoming orders for the second quarter of fiscal 2005 were
$31 million yielding a book-to-bill ratio of 1.13 to 1.
Roger W. Blethen, chairman and chief executive officer, commented,
"Industry conditions remain weak for the semiconductor test equipment
industry and while we don't anticipate that conditions will weaken
further, we also are not yet seeing signs of a return to growth.
Fusion continues to gain market momentum, winning another half dozen
new customers during the second quarter."
"Two technologies are the primary drivers behind this accelerating
pace of new customer wins - these are Fusion's parallel RF measurement
capabilities for wireless communications testing, and Fusion's
high-performance capabilities for testing of SERDES interfaces using
our fully integrated, high speed serial VX-GTO instruments. The
broader customer base, along with an associated strong volume of new
device applications, will be key drivers of our business as industry
conditions improve."
Third Quarter Fiscal 2005 Outlook
Revenue is expected to be in the range of $26 million to $28
million, with gross margin of approximately 29%. The earnings per
share is projected to be a loss in the range of $(0.34) to $(0.35)
assuming 61.2 million shares outstanding. This guidance includes
approximately $4 million in severance charges, or $0.07 per share, but
does not include any other provisions for restructuring and other
special charges.
The Company will conduct a conference call today, February 16,
2005, at 4:30 PM EST 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 February 28, 2005 via telephone by dialing
888.286.8010; passcode 98495870 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
(Unaudited)
(In thousands)
January 31, July 31,
2005 2004
---------- ----------
ASSETS
Current assets:
Cash and Cash equivalents $ 48,472 $ 95,112
Marketable Securities 147,874 149,601
Accounts receivable - trade 18,498 32,961
Accounts receivable - other 3,171 11,494
Inventories 41,363 69,220
Prepaid Expense 6,678 9,828
---------- ----------
Total current assets 266,056 368,216
Property and equipment, net 69,858 71,329
Goodwill and other intangible assets 15,413 15,763
Other assets 3,779 4,256
---------- ----------
$ 355,106 $ 459,564
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 109 $ 321
Accounts payable 17,048 37,438
Deferred revenues and customer advances 3,127 3,520
Deferred gain on leased equipment 5,745 6,852
Other accrued expenses 25,434 27,179
---------- ----------
Total current liabilities 51,463 75,310
---------- ----------
Long-term debt, less current portion 150,000 150,000
Stockholders' equity 153,643 234,254
---------- ----------
$ 355,106 $ 459,564
========== ==========
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Six Months
Ended Ended
January 31, January 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Net sales $ 27,036 $ 58,415 $ 70,069 $ 105,034
Cost of sales 19,883 35,327 48,117 67,850
Inventory related provision - - 47,457 -
--------- --------- --------- ---------
Gross margin 7,153 23,088 (25,505) 37,184
Engineering and product
development expenses 17,894 16,487 35,534 33,066
Selling, general and
administrative expenses 8,052 6,841 15,931 13,223
Reorganization costs - - 3,115 -
--------- --------- --------- ---------
Loss from operations (18,793) (240) (80,085) (9,105)
Interest income (expense), net (390) (1,195) (771) (2,136)
-------- --------- --------- ---------
Net loss $(19,183) $ (1,435) $(80,856) $ (11,241)
======== ========= ========= =========
Net loss per share
Basic $ (0.31) $ (0.03) $ (1.32) $ (0.22)
Diluted $ (0.31) $ (0.03) $ (1.32) $ (0.22)
Weighted average shares:
Basic 61,040 52,069 61,029 51,936
Diluted 61,040 52,069 61,029 51,936
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
mark_gallenberger@ltx.com
www.ltx.com