Exhibit 99.1
LTX Announces Third Quarter Results
NORWOOD, Mass.--(BUSINESS WIRE)--May 17, 2007--LTX Corporation
(Nasdaq: LTXX), a leading provider of semiconductor test solutions,
today announced financial results for its third quarter ended April
30, 2007.
Sales for the quarter were $33,014,000, down 5% from the prior
quarter sales of $34,671,000. Net loss for the quarter was
$(7,991,000), or $(0.13) per share on a GAAP basis, which included a
one-time charge of $4,175,000, or $0.07 per share related to excess
HFi inventory. Sales for the 2006 third fiscal quarter were
$56,339,000 and the net income was $8,141,000, or $0.13 per share on a
GAAP basis. Total incoming orders for the third quarter of fiscal 2007
were $22 million. Product orders of $20 million were flat
sequentially, while service orders were $2 million for the quarter.
Dave Tacelli, chief executive officer and president, commented,
"LTX's results for the third fiscal quarter reflected weak business
conditions that are expected to persist through the first half of the
calendar year. However, certain segments are starting to gain
momentum, and as a result, we remain optimistic that the second half
of the calendar year should show an improving business environment for
LTX, driven by a combination of semiconductor unit growth volume in
our core markets, and by market share gains at key target customers."
FOURTH QUARTER FISCAL 2007 OUTLOOK
Revenue is expected to be in the range of $33 million to $35
million, with gross margin of approximately 46%. Loss per share is
projected to be in the range of $(0.04) to $(0.06) assuming 62.2
million shares fully diluted shares, and a 0% tax rate.
The Company will conduct a conference call today, May 17, 2007, at
4:30 PM EDT to discuss this release. The call may be accessed via
telephone by dialing 800-561-2693, passcode 72621107. The conference
call will also be simulcast via the LTX web site (www.ltx.com). Audio
replays of the call can be heard through June 16, 2007 via telephone
by dialing 888-286-8010; passcode 98168655 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. LTX's X-Series, the
industry's most comprehensive family of production-proven, compatible
test systems, delivers a scalable solution that provides the right
test performance and the right cost of test. Combined with LTX's
industry-leading applications engineering and customer service teams,
the X-Series enables companies to accelerate their time to market,
optimize test economics and stay ahead of the technology curve.
Additional information can be found at 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.
www.ltx.com
LTX CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
April 30, July 31,
2007 2006
--------- ---------
ASSETS
Current assets:
Cash and Cash equivalents $ 57,713 $106,445
Marketable Securities 43,887 87,776
Accounts receivable - trade 19,358 38,704
Accounts receivable - other 1,819 3,269
Inventories 28,781 29,847
Prepaid Expense 3,443 4,156
--------- ---------
Total current assets 155,001 270,197
Property and equipment, net 35,010 37,633
Goodwill and other intangible assets 14,937 15,462
Other assets 2,230 4,398
--------- ---------
$207,178 $327,690
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 28,423 $ 70,071
Accounts payable 15,624 20,995
Deferred revenues and customer advances 2,967 3,646
Deferred gain on leased equipment 132 644
Other accrued expenses 19,466 31,554
--------- ---------
Total current liabilities 66,612 126,910
--------- ---------
Long-term debt, less current portion 18,800 77,620
Long-term liability other 5,541 5,521
Stockholders' equity 116,225 117,639
--------- ---------
$207,178 $327,690
========= =========
LTX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except earnings per share data)
Three Months Nine Months
Ended Ended
April 30, April 30,
----------------- -------------------
2007 2006 2007 2006
-------- -------- --------- ---------
Net sales $33,014 $56,339 $117,525 $149,093
Cost of sales (includes stock-
based compensation expense of
$25 for Q3 FY07; $42 for Q3
FY06; $82 YTD FY07; $130 YTD
FY06) 18,000 26,859 61,333 78,440
Inventory related provision 4,175 - 4,175 221
-------- -------- --------- ---------
Gross Margin 10,839 29,480 52,017 70,432
Engineering and product
development expenses (includes
stock-based compensation
expense of $242 for Q3 FY07;
$288 for Q3 FY06, $836 YTD
FY07; $808 YTD FY06) 12,203 12,829 38,058 41,378
Selling, general and
administrative expenses
(includes stock-based
compensation expense of $587
for Q3 FY07; $1,104 for Q3
FY06; $2,217 YTD FY07; $2,418
YTD FY06) 6,778 7,765 20,276 22,220
Reorganization costs - - (377) 6,104
-------- -------- --------- ---------
Income (Loss) from operations (8,142) 8,886 (5,940) 730
Interest income (expense), net 151 (745) (540) (2,418)
-------- -------- --------- ---------
Net income (loss) $(7,991) $ 8,141 $ (6,480) $ (1,688)
======== ======== ========= =========
Net income (loss) per share
Basic $ (0.13) $ 0.13 $ (0.10) $ (0.03)
Diluted $ (0.13) $ 0.13 $ (0.10) $ (0.03)
Weighted average shares:
Basic 62,147 61,734 62,065 61,619
Diluted 62,147 62,088 62,065 61,619
CONTACT: LTX Corporation
Mark Gallenberger, 781-467-5417
mark_gallenberger@ltx.com