ADE Corporation Announces Third Quarter Fiscal 1999 Results.WESTWOOD, Mass.--(BUSINESS WIRE)--March 2, 1999--ADE Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADEX ADEX Athens Derivatives Exchange (Athens, Greece) ADEX Air Defense Exercise ADEX Advertisement Expenditure ADEX Asociaciã³n de Exportadores (Peru) ) today reported revenue of $12.4 million for the third quarter of fiscal 1999 ended January 31, 1999 compared with $36.3 million recorded for the same quarter a year ago. Net loss for the quarter, including costs related to consolidating certain operations, was $6.6 million, or $(0.51) per share, compared with net income of $4.4 million, or $0.32 per 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. share, for the same quarter of the previous year. Net loss, excluding restructuring and other consolidation-related costs, was $5.0 million, or $(0.38) per share. Weighted average shares outstanding during the third quarter of 1999 and 1998 were 13.0 million and 13.4 million, respectively. Weighted average shares during the third quarter of fiscal 1999 excluded stock options outstanding as their effect would be antidilutive. Revenue for the nine months ended January 31, 1999, was $48.7 million compared with $107.8 million reported for the first nine months of fiscal 1998. Net loss for the first nine months of fiscal 1999, including facilities consolidation costs, was $15.3 million, or $(1.18) per share, compared with net income of $10.2 million, or $0.80 per diluted share, for the same period of the previous year. Weighted average shares outstanding during the comparable periods were 13.0 million and 12.6 million, respectively. Weighted average shares for the nine months ended January 31, 1999 excluded stock options outstanding as their effect would be antidilutive. All fiscal 1998 information has been restated to reflect the merger with Phase Shift Technology, Inc. on June 11, 1998, which has been accounted for on a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. basis. The Company announced on January 11, 1999 that it will consolidate its Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. operations and certain of its Milpitas, California Milpitas (IPA pronunciation: mɪlpitʌs; inhabitants are called 'Milpitans') is a city in Santa Clara County, California. It is located with San Jose to its south and Fremont to its north, at the eastern end of Highway 237 and generally between Interstate freeways 680 and operations into its Massachusetts facilities. Pre-tax operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter of fiscal 1999 related to these consolidation efforts totaled approximately $2.6 million, including $1.2 million for employee severance, $931,000 for the write-down of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → associated with the affected operations and $185,000 for lease termination penalties. In addition to these restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , the Company incurred $251,000 in other non-recurring costs associated with the consolidation efforts. Robert C. Abbe, President and Chief Executive Officer, said, "The semiconductor device market appears to have reached the bottom of the most recent cycle. However, we anticipate that our business will be slower to recover than other segments of the industry as a whole because our primary customers, the 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. manufacturers are further down the supply chain than device makers. These customers are still experiencing operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . In fact, industry experts estimate that the wafer manufacturing industry is currently operating at about 70% of capacity. As this capacity is absorbed by increasing demand, we can expect that wafer manufacturers will begin to order additional equipment in quantity. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , orders are primarily technology driven, supporting technical evaluations The study and investigations by a developing agency to determine the technical suitability of material, equipment, or a system for use in the Military Services. See also operational evaluation. and updating current plants. Lower current demand for the Company's products is reflected in a decrease in backlog to $15.3 million in the third quarter from $17.4 million in the second quarter." "The computer hard disk industry appears to be recovering and we are experiencing increased interest in our products. During the quarter ADE introduced the new Magnetic Head Wafer Mapper, which measures the critical magnetic properties of the wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. used to make GMR (Giant Magnetoresistance) See magnetoresistance. heads for the computer disk industry. This tool has been very well received in the marketplace and the Company has received multiple orders during the quarter from several customers, which are among the industry's largest hard disk manufacturers." "As previously announced, ADE is in the process of consolidating its Charlotte, North Carolina optical systems operations into our Westwood, Massachusetts Westwood is a town in Norfolk County, Massachusetts, United States. The population was 14,117 at the 2000 census. History Westwood was first settled in 1640 and was part of the town of Dedham (it was originally called 'West Dedham') until it was officially incorporated facility and a small Milpitas, California manufacturing group into our Newton, Massachusetts The City of Newton in Middlesex County, Massachusetts, is an important residential suburb of Boston, which abuts it on the east. According to the 2000 census, the population of the Newton was 83,829, making it the tenth largest city in the state. facility. We believe that this action will result in more efficient operations and provide better service to customers." Abbe concluded, "Although it is still too early to forecast when there will be an upturn in the wafer segment of the business, we will continue to invest in research and development for next generation products in anticipation of the recovery. In addition, we will diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d seek additional ways to control expenses in this environment of market uncertainty." 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. Such risks and uncertainties include, but are not limited to demand for the Company's products, the status of the semiconductor and computer hard disk industries, the ability of the Company to develop and manufacture products that meet customer needs within the timeframes required by customers, the ability to effectively consolidate the Company's operations. ADE Corporation is a leading supplier of 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 systems for the silicon wafer and computer disk manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation . 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 computer disk 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. . -0-
ADE Corporation
Unaudited Consolidated Statement of Operations
(In thousands, except per share amounts)
Three months ended Nine months ended
January 31, January 31,
1999 1998 1999 1998
Revenue $ 12,432 $ 36,269 $ 48,699 $107,785
Cost of revenue 10,209 17,033 36,465 47,862
-------- -------- -------- --------
Gross profit 2,223 19,236 12,234 59,923
-------- -------- -------- --------
Operating expenses:
Research and development 5,084 7,059 18,199 19,111
Purchased in-process
research and development -- -- -- 6,100
Sales and marketing 2,707 3,283 9,069 11,720
General and administrative 2,463 3,348 7,555 9,376
Restructuring charges 2,318 -- 2,318 --
-------- -------- -------- --------
Total operating expenses 12,572 13,690 37,141 46,307
-------- -------- -------- --------
Income (loss) from
operations (10,349) 5,546 (24,907) 13,616
Other income, net 653 711 2,115 1,525
-------- -------- -------- --------
Income (loss) before
provision for (benefit from)
income taxes and equity in
net earnings (loss) of
affiliated companies (9,696) 6,257 (22,792) 15,141
Provision for (benefit from)
income taxes (3,519) 2,106 (8,235) 5,297
-------- -------- -------- --------
Income (loss) before equity
in net earnings (loss) of
affiliated companies (6,177) 4,151 (14,557) 9,844
Equity in net earnings
(loss) of affiliated
companies (422) 216 (754) 308
======== ======== ======== ========
Net income (loss) $ (6,599) $ 4,367 $(15,311) $ 10,152
======== ======== ======== ========
Net income (loss) per share
Basic $ (0.51) $ 0.34 $ (1.18) $ 0.85
Diluted $ (0.51) $ 0.32 $ (1.18) $ 0.80
Weighted average common
and common equivalent
shares outstanding
Basic 13,001 12,896 12,963 11,984
Diluted 13,001 13,447 12,963 12,629
ADE Corporation
Condensed Consolidated Balance Sheet
(In thousands)
January 31, April 30,
1999 1998
(unaudited)
Assets
Cash and cash equivalents $ 61,628 $ 72,711
Accounts receivable, net 10,838 16,938
Inventories 26,057 28,792
Other current assets 15,474 14,243
-------- --------
Total current assets 113,997 132,684
Fixed assets, net 24,694 26,058
Investments 3,930 3,892
Restricted cash 3,583 3,808
Other assets 7,639 7,201
======== ========
Total assets $153,843 $173,643
======== ========
Liabilities and Stockholders' Equity
Total current liabilities $ 15,702 $ 20,844
Long-term debt 8,278 8,613
Total stockholders' equity 129,863 144,186
======== ========
Total liabilities and stockholders' equity $153,843 $173,643
======== ========
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