Exhibit 99.1
LTX Announces Third Quarter Financial Results
WESTWOOD, Mass.--(BUSINESS WIRE)--June 3, 2005--LTX Corporation (Nasdaq:
LTXX), a leading provider of semiconductor test solutions, today announced
financial results for its fiscal third quarter ended April 30, 2005.
Sales for the quarter were $25,534,000 as compared to prior quarter sales
of $27,036,000. Net loss for the quarter was $(45,656,000), or $(0.75) per share
on a GAAP basis, which included restructuring and asset impairment charges
totaling $28,611,000, or $0.47 per share, compared to a net loss for the 2005
second fiscal quarter of $(19,183,000), or $(0.31) per share. Sales were
$70,333,000 for the third quarter of fiscal year 2004 and net income was
$4,306,000, or $0.07 per share.
Total incoming orders were $39.1 million, up 25% from last quarter. The
book-to-bill ratio was 1.53 to 1.
Roger W. Blethen, chairman and chief executive officer, said, "Early in the
third quarter we reduced expenses, lowering our breakeven and adding P&L
leverage for the future. Restructuring actions we've taken over the past several
quarters will lower the break even to $46 million by the end of our fourth
quarter. Yesterday, we also announced the closing of a $60 million term loan
with Silicon Valley Bank - this additional financing, combined with LTX's lower
breakeven, has significantly improved our balance sheet."
"There are indications that in some market segments, LTX's business is
expanding due to capacity purchases and new applications ramping into volume
production. This led to significantly higher orders in the third quarter, with
product bookings up about 120%."
"LTX's engineering organization continued to make strong progress during
the quarter on several new versions of Fusion that address high growth areas of
the market, and we plan to make product announcements in our fourth quarter. The
stepped-up leverage in our financials, improved balance sheet and new market
opportunities from our product strategy make LTX a stronger company."
Fourth Quarter 2005 Outlook
Revenue for the fourth quarter of fiscal year 2005 is now expected to be in
the range of $37.5 million to $39.5 million, with gross margin at approximately
38%. The earnings per share is projected to be a loss in the range of $(0.09) to
$(0.12), assuming 61.2 million fully diluted shares outstanding. This guidance
does not include any provisions for special charges.
The Company will conduct a conference call today, June 3, 2005, at 8:30 AM
EDT to discuss third quarter results. The conference call will be simulcast via
the LTX web site (www.ltx.com). Audio replays of the call can be heard through
June 16, 2005 via telephone by dialing 888-286-8010; passcode 48332534 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)
April 30, July 31,
2005 2004
------------ ------------
ASSETS
Current assets:
Cash and Cash equivalents $38,652 $95,112
Marketable Securities 137,046 149,601
Accounts receivable - trade 24,879 32,961
Accounts receivable - other 4,974 11,494
Inventories 43,932 69,220
Prepaid Expense 5,706 9,828
------------ ------------
Total current assets 255,189 368,216
Property and equipment, net 48,861 71,329
Goodwill and other intangible assets 15,238 15,763
Other assets 4,286 4,256
------------ ------------
$323,574 $459,564
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $55 $321
Accounts payable 26,625 37,438
Deferred revenues and customer advances 2,700 3,520
Deferred gain on leased equipment 2,369 6,852
Other accrued expenses 34,376 27,179
------------ ------------
Total current liabilities 66,125 75,310
------------ ------------
Long-term debt, less current portion 150,000 150,000
Stockholders' equity 107,449 234,254
------------ ------------
$323,574 $459,564
============ ============
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Nine Months
Ended Ended
April 30, April 30,
------------------ --------------------
2005 2004 2005 2004
--------- -------- ---------- ---------
Net sales $25,534 $70,333 $95,603 $175,367
Cost of sales 18,695 41,105 66,812 108,955
Inventory related provision - - 47,457 -
--------- -------- ---------- ---------
Gross margin 6,839 29,228 (18,666) 66,412
Engineering and product
development expenses 16,491 17,143 52,025 50,209
Selling, general and
administrative expenses 7,316 6,999 23,247 20,222
Reorganization costs and asset
impairment 28,611 - 31,726 -
--------- -------- ---------- ---------
Loss from operations (45,579) 5,086 (125,664) (4,019)
Interest income (expense), net (77) (780) (848) (2,916)
--------- -------- ---------- ---------
Net loss $(45,656) $4,306 $(126,512) $(6,935)
========= ======== ========== =========
Net loss per share
Basic $(0.75) $0.07 $(2.07) $(0.13)
Diluted $(0.75) $0.07 $(2.07) $(0.13)
Weighted average shares:
Basic 61,216 58,826 61,090 54,199
Diluted 61,216 61,622 61,090 54,199
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
mark_gallenberger@ltx.com