ADE Corporation Posts Strong Revenue and Earnings in Fourth Quarter; Sets Record for Annual Net Income.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. -- 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 its fourth quarter and fiscal year ended April 30, 2005. Revenue for the fourth quarter of fiscal 2005 was $29.8 million, up slightly from $29.5 million for the third quarter of fiscal 2005 and an increase of 14 percent from $26.2 million for the fourth quarter of fiscal 2004. ADE posted net income of $23.1 million, or $1.60 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 fourth quarter of fiscal 2005. This figure includes approximately $17.2 million for the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of deferred tax asset valuation allowances. Excluding this benefit, ADE's non-GAAP net income was $5.9 million, or $0.41 per diluted share. This compares with net income of $6.4 million, or $0.45 per diluted share, for the third quarter of fiscal 2005 and $3.2 million, or $0.23 per diluted share, for the year-ago fourth quarter. "ADE Corporation completed an exceptional fiscal year on a high note, delivering another quarter of strong revenue and profitability," said Dr. Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System L. Koliopoulos, ADE's president and chief executive officer. "For the fourth quarter, the Company's order activity continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the semiconductor capital equipment industry as we a posted a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can of 0.9 compared to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Semiconductor Equipment average of 0.81. In addition, ADE delivered another quarter of solid cash flow as we set a new high water mark for the Company with $72.8 million in cash and cash equivalents on April 30. For the full fiscal year, ADE also established new records for profitability and cash generation while producing an impressive return on equity." "We continued to generate the majority of our revenue and orders from our 300mm products while also increasing revenue for 200mm tools during the fourth quarter," Dr. Koliopoulos continued. "Activity in Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). rose and accounted for nearly half of our quarterly revenue, while Japan, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the U.S. each contributed a
healthy mix of the remaining sales.""Beyond the bare 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. activities, ADE also continued to see signs of growth during the latter part of fiscal 2005 as we pursued our strategy to penetrate the semiconductor device market. For the fourth quarter, we generated 17 percent of our revenue from device makers and, for the full year, 11 percent of sales came from this market. This compares with nine percent for both the fourth quarter and the full year fiscal 2004," said Dr. Koliopoulos. ADE's 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. grew eight percent to $45.0 million on April 30, 2005 from $41.5 million on April 30, 2004. Gross margin for the fourth fiscal quarter was 55 percent, up from 51 percent in the year-ago quarter. ADE generated $8.0 million of positive cash flow for the fourth quarter of fiscal 2005. The Company's $72.8 million in cash and cash equivalents on April 30, 2005 is a new Company record and compares with $41.6 million at the end of fiscal 2004. Fiscal 2005 Results For the fiscal year ended April 30, 2005, ADE grew revenue by 32 percent to $116.9 million from $88.6 million for fiscal 2004. For the full year, ADE's net income was $40.9 million, or $2.86 per diluted share. Excluding the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. benefit for the reversal of deferred tax asset valuation allowances, ADE's non-GAAP net income for full fiscal year 2005 was a record $23.7 million, or $1.66 per diluted share. This is an increase of 168 percent from $8.8 million, or $0.62 per diluted share, for the full fiscal year 2004. ADE Chief Financial Officer Brian James Not to be confused with Brion James. Brian James can be
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in excess of 20 percent, which ranks among the best in our industry. In addition, our balance sheet strengthened throughout the year." Looking Ahead "With strong market share, new tools coming into the market and an organization that is committed to excellence, ADE has the ingredients to out-perform the industry in fiscal 2006," added Dr. Koliopoulos. "The expansion of 300mm wafer production provides us with confidence that sales will remain strong in the years ahead. Our optimism is further bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by the launch of our yield management and data mining system for wafer manufacturers as well as our surface topography topography (təpŏg`rəfē), description or representation of the features and configuration of land surfaces. Topographic maps use symbols and coloring, with particular attention given to the shape and elevations of terrain. tools for copper CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information monitoring of patterned wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. . These products are each currently in the advanced stage of beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the and should help ADE gain a greater share of the device and wafer markets in fiscal 2006. We look forward to displaying these products, as well as introducing our next-generation particle particle /par·ti·cle/ (pahr´ti-k'l) a tiny mass of material. Dane particle an intact hepatitis B viral particle. inspection and defect defect - bug classification tool, WaferXam, at Semicon West in July July: see month. ." "We anticipate that first-quarter revenue will decline on a sequential basis due to an anticipated shipment delay of a multi-million dollar order associated with a temporary supply issue," concluded Dr. Koliopoulos. "We expect that our profits will remain solid and that sales will strengthen later in the fiscal year as the industry strengthens and our new products gain acceptance." For the first quarter of fiscal 2006, the Company anticipates that revenue will be in the range of $24 million to $25 million. Gross margins are expected to be in the range of 53 percent to 54 percent. As a result of the aforementioned reversal of ADE's tax valuation allowance, the Company expects to begin recognizing a tax rate of 33% in the first quarter of fiscal 2006. Based on these factors, the Company anticipates pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income in the range $3.0 million to $3.8 million and after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. net income ranging from $2.0 million to $2.5 million, representing earnings per share of $0.14 to $0.17 for the first quarter of fiscal 2006. This guidance assumes 14.5 million weighted average shares outstanding for the period ending July 31, 2005. Non-GAAP Financial Results In an effort to provide investors with additional information regarding the Company's results, this news release presents certain figures that exclude the impact of the Company's reversal of deferred tax asset valuation allowances in the fourth quarter of fiscal 2005. The figures may be deemed to be "non-GAAP financial measures." ADE's non-GAAP financial measures are a supplement to financial statements prepared based on generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). The Company believes this presentation provides investors and ADE management with additional useful insights into its underlying results because of the materiality MATERIALITY. That which is important; that which is not merely of form but of substance. 2. When a bill for discovery has been filed, for example, the defendant must answer every material fact which is charged in the bill, and the test in these cases seems to of the reversal of its deferred tax asset valuation allowances on its fourth-quarter and full-year fiscal 2005 net income. Management believes that presenting results that exclude the impact of this reversal facilitates period-to-period comparisons of the Company's growth on a more consistent basis that better reflects actual trends. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial results is included in the table titled "Non-GAAP to GAAP Reconciliation" in this news release. These non-GAAP financial measures should not be considered in isolation from the comparable GAAP measures nor considered a substitute therefor there·for adv. For that: ordering goods and enclosing payment therefor. Adv. 1. therefor . Conference Call Reminder ADE will host a conference call and webcast on July 6, 2005 at 8:30 a.m. Eastern Time (ET) to discuss these financial results. To participate in the webcast, please visit the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section of the ADE website, located at www.ade.com. A replay of the call will be available on the website two hours after the completion of the conference call and will continue to be available for a period of one year. About ADE Corporation 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 semiconductor wafer, semiconductor device, magnetic data storage and optics 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 steps for yield enhancement, providing quality certification data that is relied upon by semiconductor wafer, device and computer disk manufacturers. The Company's systems also are used for production measurements in the semiconductor chip fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. process. To learn more about ADE, visit the Company's Web site at www.ade.com. 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, assumptions, plans and anticipations should be considered forward-looking statements. These statements include, but are not limited to, those associated with the Company's ability to launch its new products, the strength of the Company's balance sheet and the Company's financial performance for the first quarter and full fiscal year 2006, as well as other statements under "Looking Ahead" in the news release. These statements involve risks and uncertainties including those associated with the strength of the semiconductor, data storage and device 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; the Company's growth in backlog and enhanced operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. ; the Company's ability to generate strong gross margins; the potential of rapidly slowing order flow; and Sarbanes-Oxley compliance efforts underway. ADE disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information on potential factors that could affect ADE'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, 2004.
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three months Twelve months
ended ended
April 30 April 30
----------------- ------------------
2005 2004 2005 2004
-------- -------- --------- --------
Revenue $29,794 $26,184 $116,901 $88,585
Cost of revenue 13,390 12,858 54,294 45,043
-------- -------- --------- --------
Gross profit 16,404 13,326 62,607 43,542
-------- -------- --------- --------
Operating expenses:
Research and development 4,106 3,995 15,519 15,085
Marketing and sales 4,045 3,015 13,044 10,435
General and administrative 2,464 2,915 10,404 11,009
Restructuring charges - - - 393
-------- -------- --------- --------
Total operating expenses 10,615 9,925 38,967 36,922
-------- -------- --------- --------
Income from operations 5,789 3,401 23,640 6,620
Gain on sale of long-term
investment - - - 1,729
Gain on sale of marketable
securities - - - 398
Interest and other income, net 279 66 668 24
-------- -------- --------- --------
Income before provision for
(benefit from) income taxes
and equity in net earnings of
affiliated companies 6,068 3,467 24,308 8,771
Provision for (benefit from)
income taxes (17,077) 220 (16,633) 46
-------- -------- --------- --------
Income before equity in net
earnings of affiliated companies 23,145 3,247 40,941 8,725
Equity in net earnings of
affiliated companies - - - 48
-------- -------- --------- --------
Net income $23,145 $3,247 $40,941 $8,773
======== ======== ========= ========
Basic earnings per share $1.63 $0.23 $2.91 $0.63
Diluted earnings per share $1.60 $0.23 $2.86 $0.62
Weighted average shares
outstanding - basic 14,166 13,972 14,069 13,887
Weighted average shares
outstanding - diluted 14,436 14,288 14,312 14,127
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
April 30, April 30,
2005 2004
Assets
Cash and cash equivalents $72,841 $41,560
Marketable securities 836 1,084
Accounts receivable, net 18,499 13,604
Inventories 30,764 32,745
Other current assets 1,373 1,068
Deferred income taxes 10,601 -
---------- ----------
Total current assets 134,914 90,061
Fixed assets, net 9,241 10,829
Deferred income taxes 6,616 -
Investments 499 499
Restricted cash - 637
Other assets 1,956 6,449
---------- ----------
Total assets $153,226 $108,475
========== ==========
Liabilities and Stockholders' Equity
Total current liabilities $18,273 $17,089
Deferred gain on sale-leaseback 1,496 1,609
Long-term debt 3,431 3,608
Total stockholders' equity 130,026 86,169
---------- ----------
Total liabilities and stockholders' equity $153,226 $108,475
========== ==========
ADE CORPORATION
NON-GAAP to GAAP RECONCILIATION
(In thousands, except per share amounts)
Three months Twelve months
ended ended
April 30 April 30
---------------- ----------------
2005 2004 2005 2004
-------- ------- -------- -------
Net income - GAAP $23,145 $3,247 $40,941 $8,773
Less:
Reversal of income tax valuation
allowance (17,217) - (17,217) -
-------- ------- -------- -------
Net income - non-GAAP $5,928 $3,247 $23,724 $8,773
======== ======= ======== =======
Diluted earnings per share - GAAP $1.60 $0.23 $2.86 $0.62
Less:
Reversal of income tax valuation
allowance (1.19) - (1.20) -
-------- ------- -------- -------
Diluted earnings per share - non-GAAP $0.41 $0.23 $1.66 $0.62
======== ======= ======== =======
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