Exhibit 99.1
LTX Announces Second Quarter Results
WESTWOOD, Mass.--(BUSINESS WIRE)--Feb. 16, 2006--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its second quarter ended January
31, 2006. The results were in line with the Company's guidance
provided on November 17, 2005.
Sales for the quarter were $47,803,000, up 6% from prior quarter
sales of $44,951,000. Net loss for the quarter was $(1,446,000), or
$(0.02) per share on a GAAP basis, which included restructuring and
other charges totaling $2,098,000, or $0.03 per share, primarily
related to our UK downsizing, compared to a net loss for the 2006
first fiscal quarter of $(8,383,000), or $(0.14) per share on a GAAP
basis. Sales were $27,036,000 for the second quarter of fiscal year
2005 and net loss was $(19,183,000), or $(0.31) per share on a GAAP
basis. Incoming orders for the second quarter of fiscal 2006 were $60
million yielding a book-to-bill ratio of 1.25 to 1, up 29% from the
prior quarter.
Dave Tacelli, chief executive officer and president, commented,
"It's clear that our industry is solidly in an up cycle which is
driving increasing revenues and orders from a broad range of customers
and end markets. Our business model is performing to expectations and
we are on plan to achieve our break-even reduction goal for the fiscal
year. This is an important objective for LTX and is further validation
that our product strategy, market focus and business model are
performing well."
THIRD QUARTER FISCAL 2006 OUTLOOK
Revenue is expected to be in the range of $51 million to $54
million, with gross margin of approximately 51%. The earnings per
share is projected to be in the range of $0.07 to $0.10 assuming 63
million shares outstanding and a 0% tax rate. This guidance does not
include any provisions for restructuring and other special charges.
The Company will conduct a conference call today, February 16,
2006, 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 March 2, 2006 via telephone by dialing
888.286.8010; passcode 34076257 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.
ABOUT LTX
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.
All other trademarks are the property of their respective owners.
Source LTX Corporation
www.ltx.com
LTX CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
January July
31, 31,
2006 2005
--------- ---------
ASSETS
Current assets:
Cash and Cash equivalents $39,303 $55,269
Marketable Securities 136,223 122,205
Accounts receivable - trade 21,145 19,776
Accounts receivable - other 4,009 5,497
Inventories 34,983 41,181
Prepaid Expense 5,168 4,942
--------- ---------
Total current assets 240,831 248,870
Property and equipment, net 41,281 47,135
Goodwill and other intangible assets 15,812 16,162
Other assets 4,208 4,225
--------- ---------
$302,132 $316,392
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $65,272 $606
Accounts payable 21,980 27,934
Deferred revenues and customer advances 2,295 2,712
Deferred gain on leased equipment 1,926 2,215
Other accrued expenses 30,922 32,446
--------- ---------
Total current liabilities 122,395 65,913
--------- ---------
Long-term debt, less current portion 83,020 147,687
Long-term liability other 2,904 1,616
Stockholders' equity 93,813 101,176
--------- ---------
$302,132 $316,392
========= =========
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Six
Months Months
Ended Ended
January 31, January 31,
------------------ ------------------
2006 2005 2006 2005
-------- --------- -------- ---------
Net sales $47,803 $27,036 $92,754 $70,069
Cost of sales (includes stock-
based compensation expense of
$45 for Q2 FY06; $0 for Q2 FY05;
$88 YTD FY06; $0 YTD FY05 ) 25,325 19,883 51,581 48,117
Inventory related provision 221 - 221 47,457
-------- --------- -------- ---------
Gross Margin 22,257 7,153 40,952 (25,505)
Engineering and product
development expenses (includes
stock-based compensation expense
of $289 for Q2 FY06; $0 for Q2
FY05, $520 YTD FY06; $0 YTD
FY05) 13,383 17,894 28,549 35,534
Selling, general and
administrative expenses
(includes stock-based
compensation expense of $884 for
Q2 FY06; $0 for Q2 FY05; $1,314
YTD FY06; $0 YTD FY05) 7,383 8,052 14,455 15,931
Reorganization costs 1,877 - 6,104 3,115
-------- --------- -------- ---------
Loss from operations (386) (18,793) (8,156) (80,085)
Interest income (expense), net (1,060) (390) (1,673) (771)
-------- --------- -------- ---------
Net loss $(1,446) $(19,183) $(9,829) $(80,856)
======== ========= ======== =========
Net loss per share
Basic $(0.02) $(0.31) $(0.16) $(1.32)
Diluted $(0.02) $(0.31) $(0.16) $(1.32)
Weighted average shares:
Basic 61,566 61,040 61,550 61,029
Diluted 61,566 61,040 61,550 61,029
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
Email mark_gallenberger@ltx.com