ADE Corporation Announces Increasing Earnings in Fourth-Quarter Fiscal 2001.Business/Technology Editors WESTWOOD Westwood. 1 Residential town (1990 pop. 12,557), Norfolk co., E Mass., in the greater Boston area; settled 1640, inc. 1897. It has several early 18th-century buildings. 2 Residential borough (1990 pop. 10,446), Bergen co., NE N.J. , Mass.--(BUSINESS WIRE)--June 19, 2001 Reports Greatly Improved Fiscal Year 2001 Financial Results ADE Corporation (Nasdaq: ADEX ADEX Athens Derivatives Exchange (Athens, Greece) ADEX Air Defense Exercise ADEX Advertisement Expenditure ADEX Asociaciã³n de Exportadores (Peru) ) today reported its financial results for the fourth fiscal quarter ended April 30, 2001. Excluding the impact of an accounting change (Staff Accounting Bulletin "SAB SAB Spontaneous abortion. See Abortion. 101"), revenues increased 35% to $26.8 million, compared with $19.9 million for the same quarter a year ago. Net income was $2.2 million or $0.16 per share before the accounting change, with 13.7 million weighted average diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding. This compares with a net loss of $2.9 million, or $0.21 per share, with 13.5 million weighted average basic and diluted shares outstanding for the fourth quarter of fiscal 2000. Incorporating SAB 101, revenues were $26.9 million and net income was $2.1 million, or $0.16 per share, for the fourth quarter of fiscal 2001. SAB 101, adopted by the Company this quarter, sets forth guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. on the timing of revenue recognition based upon passage of title, installation obligations, payment and customer acceptance terms. Under SAB 101, certain previously recognized revenues are deferred and recognized in future periods. Comments on the Fourth-quarter "ADE posted its eighth consecutive quarter of improved bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. results while continuing its commitment to new product development and customer support," said ADE President and Chief Executive Officer Robert Abbe Robert Abbe (1851 - 1928), was an American surgeon and pioneer radiologist in New York City. He was born April 13, 1851, at New York City and educated at the College of the City of New York (S.B., 1871) and Columbia University (M.D., 1874). . "During the fourth quarter, ADE's 300mm metrology metrology Science of measurement. Measuring a quantity means establishing its ratio to another fixed quantity of the same kind, known as the unit of that kind of quantity. and inspection products were increasingly evaluated and purchased by wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. makers as 300mm wafer pilot production lines were installed. Sales were strong in Japan during the fourth quarter, while the pace of domestic and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business slowed. Meanwhile, the Company's aggressive investments in research and development have positioned ADE to benefit fully from both the eventual recovery in 200mm demand and initiation of full-scale full-scale adj. 1. Of actual or full size; not reduced: a full-scale model. 2. Employing all resources; not limited or partial: 300mm fab construction." "200mm wafer fab utilization did not improve and is presently at about 75 percent worldwide. This stands in stark contrast to almost 100 percent utilization of 200mm capacity in December, and is the primary reason that 200mm wafer prices have not recovered to levels sufficient to encourage capacity expansion. As a result, new orders for the Company's 200mm metrology and inspection products were soft in the fourth quarter. Near term declines in the demand for 200mm capacity expansions echo the soft market demand for a wide range of end-market electronics such as PC's and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. gear," Abbe said. "However, interest in ADE's suite of 300mm products gained substantial momentum during the fourth quarter, and we are pleased to see these new products coming on line and becoming a larger portion of our Company's ongoing revenue stream. We are now placing equipment in all major 300mm wafer manufacturing facilities where acceptance of the ADE standard appears positive." Fiscal 2001 Review and Comment For the fiscal year ended April 30, 2001, revenue increased 61% to $100.8 million from $62.5 million reported in fiscal 2000, excluding the impact of the accounting change. Net income for fiscal 2001 was $3.1 million, or $0.23 per diluted share, compared with a net loss of $20.4 million, or $1.53 per basic and diluted share, for fiscal 2000 prior to the accounting change. Weighted average diluted shares outstanding for fiscal 2001 were 13.8 million compared with 13.4 million in fiscal 2000. After the adoption of SAB 101, revenues were $100.2 million and net income was $0.5 million, or $0.04 per diluted share, for fiscal 2001. "Fiscal 2001 was a period of strong cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. recovery in the Company's core market and one of significant accomplishments for ADE," continued Abbe. "ADE's steadily increasing revenues, shipments, return to profitability and subsequent growth in earnings were significant highlights from a financial perspective. Despite the somewhat short duration of the recovery, the long-awaited launch of 300mm wafer production is an encouraging development in relation both to fiscal 2001 and fiscal 2002, and should continue to benefit our Company and shareholders in the future. " FORWARD-LOOKING GUIDANCE "Looking forward, the Company remains cautious in the near term as the softness and visibility that surrounds our industry persists, and we are working toward maintaining our profitability during the current slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . ADE has taken prudent actions to reduce non-essential discretionary spending, and will initiate further streamlining actions to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. our operating costs operating costs npl → gastos mpl operacionales with the current economic climate" stated ADE Chief Financial Officer, Brian James Not to be confused with Brion James. Brian James can be
"We expect post -SAB101 consolidated revenues in the first quarter to approximate Q4 levels, ranging between $26 and $28 million, although product deliveries are expected to increase 6 % over the 4th quarter" continued James. Consistent with the new accounting standard and ADE's revenue recognition policy, deferred revenues are expected to increase pending final customer acceptances on new 300mm products scheduled to ship later in the quarter. Margins are projected to decline to levels of 45% to 47% in the first quarter as our sales mix sales mix See product mix. shifts toward new products. Recently enacted cost reduction and streamlining initiatives are not expected to materially impact first-quarter financial results however they should benefit subsequent periods. In light of near-term customer and product support requirements and new product development initiatives that are currently underway, R&D is expected to approximate 22% of revenues going forward. During this period of critical technical support and increased product deliveries, we also expect a shift in sales mix towards our newer products, resulting in earnings that are anticipated to be in the range of breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations to $0.02 per share for the first quarter of fiscal year 2002. "During this slowdown, ADE remains fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully to supporting its new product installations and tool evaluations that are underway using its technical and customer support organizations. This initiative is intended to provide long- term value to both our customers and shareholders. We are investing in several new products, some of which are expected to come to market later this fiscal year. These development efforts are strategically focused on products that serve larger, higher growth markets and are in line and complementary with our vision of value creation. On a longer-term basis, actions are underway to further streamline the fundamental cost structure of our Company, improve asset management, and unlock shareholder value. As a result of these activities we expect ADE to be in an even stronger position when growth resumes in the markets we serve," concluded James. This news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 and anticipations should be considered forward-looking statements. These statements include, but are not limited to, trends relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the semiconductor market, the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of 300mm capacity and related profit margins, the success of ADE's product development efforts, international economic conditions, and financial projections for the first quarter of fiscal 2002. These statements involve risks and uncertainties including those associated with the strength of the semiconductor and hard disk 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, further increases in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. , our visibility, and the Company's predictions of future financial outcomes. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended April 30, 2000. About ADE Corporation ADE Corporation is a leading supplier of metrology and inspection systems for the silicon wafer and data storage industries. The Company's systems analyze and report product quality at critical manufacturing process steps and provide quality certification data that is relied upon by semiconductor and data storage manufacturers. The Company's systems also are used in the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. . To learn more about ADE, visit the Company's Web site at www.ade.com. Attached are the Company's condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statement of operations See Income statement. and balance sheet.
ADE Corporation
Unaudited Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
Three months ended Twelve months ended
April 30, April 30,
Pre-SAB Pre-SAB Pre-SAB Pre-SAB
101 101 101 101
2001 2001 2000 2001 2001 2000
Revenue $26,902 $26,826 $ 19,943 $ 100,183 $100,818$ 62,506
Cost of revenue 12,917 12,799 10,096 50,236 50,023 35,475
Gross profit 13,985 14,027 9,847 49,947 50,795 27,031
Operating
expenses:
Research and
development 6,521 6,521 6,347 22,583 22,583 21,884
Sales and
marketing 4,165 4,165 3,784 16,218 16,218 13,002
General and
administrative 1,893 1,893 2,879 9,948 9,948 12,281
Total operating
expenses 12,579 12,579 13,010 48,749 48,749 47,167
Income (loss)
from operations 1,406 1,448 (3,163) 1,198 2,046 (20,136)
Interest and
other income,
net 183 183 437 1,130 1,130 1,280
Income (loss)
before
provision for
(benefit from)
income taxes,
equity
in net earnings
(loss) of
affiliated
companies and
cumulative
effect of change
in accounting
principle 1,589 1,631 (2,726) 2,328 3,176 (18,856)
Provision for
(benefit from)
income taxes (74) (74) 100 37 37 102
Income (loss)
before equity
in net earnings
(loss) of
affiliated
companies and
cumulative
effect of change
in accounting
principle 1,663 1,705 (2,826) 2,291 3,139 (18,958)
Equity in net
earnings (loss)
of affiliated
companies 482 482 (50) 2 2 (1,489)
Income (loss)
before
cumulative
effect of
change in
accounting
principle 2,145 2,187 (2,876) 2,293 3,141 (20,447)
Cumulative
effect of
change in
accounting
principle,
net of tax -- -- -- (1,785) -- --
Net income (loss) $ 2,145 $ 2,187 $ (2,876)$ 508 $ 3,141$(20,447)
Net income (loss)
per share:
Basic
Earnings (loss)
before
cumulative
effect of
change in
accounting
principle $ 0.16 $ 0.16 $ (0.21)$ 0.17 $ 0.23$ (1.53)
Cumulative
effect of
change in
accounting
principle $ -- $ -- $ -- $ (0.13)$ -- $ --
Basic earnings
(loss) per share $ 0.16 $ 0.16 $ (0.21)$ 0.04 $ 0.23$ (1.53)
Diluted
Earnings (loss)
before
cumulative
effect of
change in
accounting
principle $ 0.16 $ 0.16 $ (0.21)$ 0.17 $ 0.23$ (1.53)
Cumulative effect
of change in
accounting
principle $ -- $ -- $ -- $ (0.13) $ -- $ --
Diluted earnings
(loss) per share $ 0.16 $ 0.16 $ (0.21)$ 0.04 $ 0.23$ (1.53)
Weighted average
shares
outstanding
Basic 13,537 13,537 13,458 13,507 13,507 13,353
Diluted 13,705 13,705 13,458 13,754 13,754 13,353
ADE Corporation
Condensed Consolidated Balance Sheet Under SAB 101
(In thousands, unaudited)
April 30,
2001 2000
Assets
Cash and cash equivalents $ 29,220 $ 35,001
Short-term investments 1,913 --
Accounts receivable, net 24,424 14,549
Inventories 39,025 29,968
Other current assets 8,080 5,240
Total current assets 102,662 84,758
Fixed assets, net 29,569 30,724
Investments 3,221 3,331
Restricted cash 3,525 3,705
Other assets 7,730 10,352
Total assets $146,707 $132,870
Liabilities and Stockholders' Equity
Total current liabilities $ 30,704 $ 19,048
Long-term debt 11,339 11,950
Total stockholders' equity 104,664 101,872
Total liabilities and
stockholders' equity $146,707 $132,870
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