ADE Corporation Announces a Return to Profitability in the Second Quarter of Fiscal 2001; Company Continues to Increase Revenues and Backlog.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)--Nov. 27, 2000 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 its financial results for the second fiscal quarter ended October October: see month. 31, 2000. Revenues increased 76 percent to $24.0 million, compared with $13.6 million for the same quarter a year ago. Net income was $0.4 million, or $0.03 per share, with 13.8 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 $5.9 million, or $0.44 per share, with 13.4 million weighted average basic and diluted shares outstanding for the second quarter of fiscal 2000. 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. increased 30 percent sequentially to $53.5 million at the end of the second quarter of fiscal 2001, from $41.3 million at the end of the first quarter of fiscal 2001. "ADE results during the second quarter continue to show steady improvement in earnings," 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). . "The Company generated strong increases in revenues and backlog, continued to gain additional orders for its next-generation technologies and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , returned to profitability for the first time since the 1998 industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . These positive results demonstrate that ADE has successfully weathered the storm in the semiconductor capital equipment industry and has emerged a stronger, more competitive company." For the first six months of fiscal 2001, ADE reported revenue of $45.9 million, compared with revenue of $26.0 million in the first six months of fiscal 2000. For the first six months of fiscal 2001, the Company reported a net loss of $0.8 million, or $0.06 loss per share, with 13.5 million weighted average shares outstanding. This compares with a net loss of $13.1 million, or $0.98 per share, with 13.3 million weighted average shares outstanding, in the corresponding period of the previous year. Weighted average shares for the six months ended October 31, 2000 and 1999 exclude stock options outstanding during those periods, as the effect would be antidilutive antidilutive Of or relating to the conversion of convertible securities into common stock when such conversion would result in an increase in diluted earnings per share or a decrease in diluted loss per share. . "During the second quarter, ADE maintained strong gross margins due in part to a high volume of legacy product shipments, as 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 continued to focus on maximizing production at existing fabs," Abbe continued. "Late in the second quarter, we began to see signs of a firming in 200mm wafer pricing, followed by clear indications from wafer makers that they were committing to construction of 300mm semiconductor wafer fabs in anticipation of continued increases in worldwide wafer demand. This transition represents a substantial opportunity for the Company, and we believe that ADE will take advantage of this opportunity fully with its new 300mm wafer inspection and 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. products, as well as the Company's bridge products that enable customers to inspect both 200mm and 300mm wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. ." FORWARD LOOKING GUIDANCE Anticipating the coming shift to 300mm wafers, ADE will be increasing its investment in research and development somewhat beyond that of the prior two quarters. A focused set of initiatives is underway aimed at enhancing our growing suite of 300mm technologies, and positioning ADE solidly for the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. . The Company anticipates sequential revenue growth in the range of 22% to 25% in the next quarter resulting in continued profit growth as well. ADE expects third quarter gross margins to reflect an expected increase in shipments of newer technologies, which, in their initial stages, carry a somewhat lower margin than ADE's legacy products. The Company anticipates margins to range between 47 % and 49 % for the next quarter. ADE's EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. target for the third quarter ranges between $0.11 and $0.13 per share based upon expected revenue growth. "On the data storage side of ADE's business, the market for hard-disk data storage continues to increase," Abbe stated. "For some time now, the data storage industry has been meeting this growing need by continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. increasing aerial density See areal density. in hard disks rather than increasing production capacity. Once production ramps up, ADE is fully prepared to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the market, having maintained its leading edge in hard-disk inspection technologies." "ADE should be entering fiscal 2002 in a strong position to benefit from anticipated growth in global wafer production as that capacity increasingly moves toward advanced 200mm and 300mm technology," Abbe concluded. "As a result, the outlook for the Company's sustained top-line and bottom-line growth is encouraging." 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, risks and uncertainties 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, 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. 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.
ADE CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three months ended Six months
October 31, October 31,
2000 1999 2000 1999
Revenue $ 24,044 $ 13,625 $ 45,861 $ 25,987
Cost of revenue 12,090 8,904 23,090 16,153
Gross profit 11,954 4,721 22,771 9,834
Operating expenses:
Research and development 5,176 4,571 10,331 10,127
Marketing and sales 4,284 3,367 8,545 6,084
General and administrative 2,624 2,877 4,851 6,437
Total operating expenses 12,084 10,815 23,727 22,648
Loss from operations (130) (6,094) (956) (12,814)
Interest income, net 326 374 665 522
Income (loss) before
provision for
(benefit from)
income taxes and equity
in net earnings (loss)
of affiliated companies 196 (5,720) (291) (12,292)
Provision for
(benefit from) income taxes 64 -- 64 --
Income (loss) before equity
in net earnings (loss)
of affiliated companies 132 (5,720) (355) (12,292)
Equity in net earnings
(loss) of affiliated
companies 304 (149) (418) (763)
Net income (loss) $ 436 $ (5,869) $ (773) $(13,055)
Basic earnings (loss)
per share $ 0.03 $ (0.44) $ (0.06) $ (0.98)
Diluted earnings (loss)
per share $ 0.03 $ (0.44) $ (0.06) $ (0.98)
Weighted average shares
outstanding - basic 13,497 13,360 13,490 13,277
Weighted average shares
outstanding - diluted 13,781 13,360 13,490 13,277
ADE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
October 31, 2000 April 30, 2000
(unaudited)
Assets
Cash and cash equivalents $ 31,994 $ 35,001
Accounts receivable, net 22,192 14,549
Inventories 35,566 29,968
Other current assets 7,191 5,240
Total current assets 96,943 84,758
Fixed assets, net 28,958 30,724
Investments 3,298 3,331
Restricted cash 3,675 3,705
Other assets 8,539 10,352
Total assets $ 141,413 $ 132,870
Liabilities and
Stockholders' Equity
Total current liabilities $ 28,235 $ 19,048
Long-term debt 11,647 11,950
Total stockholders' equity 101,531 101,872
Total liabilities and
stockholders' equity $ 141,413 $ 132,870
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