ADE Corporation Reports Continued Profitability and Strong Cash Flow in First Quarter; Company Posts Fourth Consecutive Quarter of Bookings Growth.Business Editors/High-Tech Writers WESTWOOD, Mass.--(BUSINESS WIRE)--Sept. 2, 2003 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) ), a leading supplier of production 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 (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. , semiconductor device, magnetic data storage and optics manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation , today reported financial results for the first quarter of fiscal 2004 ended July 31, 2003. ADE President and Chief Executive Officer Dr. Chris L. Koliopoulos noted, "ADE got off to a strong start in fiscal 2004 as we capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on increasing demand for our metrology and inspection tools, generated profits for the third consecutive quarter and significantly 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. our balance sheet by increasing cash and reducing debt. Each of these accomplishments resulted from our concerted effort to make ADE as strong financially as it is technologically." ADE reported revenues of $19.1 million for the first quarter of fiscal 2004. This compares with $14.7 million for the first quarter of fiscal 2003 and $20.0 million for the fourth quarter of fiscal 2003. ADE's net income for the first quarter of fiscal 2004 was $1.8 million, or $0.13 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, with 13.8 million weighted average shares outstanding. First quarter fiscal 2004 net income included approximately $400,000 in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges as well as $1.7 million of income from the gain in the sale of a portion of the Company's 50% ownership in Japan ADE, Ltd. (JAL JAL Jalisco (Mexican state) JAL Jalapa (Guatemala territorial division) JAL Jump And Link JAL Japan Airlines Company, Ltd. ) to its joint venture partner, Kanematsu Electronics, Ltd. This first-quarter income compares with a net loss of $5.8 million, or $0.42 per share, with 13.7 million weighted average shares outstanding, for the first quarter of fiscal 2003. This also compares with net income of $0.2 million, or $0.02 per diluted share, with 13.7 million weighted average shares outstanding, for the fourth quarter of fiscal 2003. Backlog increased to $27.4 million on July 31, 2003 compared with $25.1 million on April 30, 2003. Cash and cash equivalents totaled $33.0 million at July 31, 2003. This compares with $21.5 million in cash and cash equivalents at April 30, 2003. ADE increased its cash by generating operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , while also completing the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. JAL transaction and the sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. of the Company's 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 headquarters. Notably during the first quarter, the Company also retired approximately $6.3 million of its $10.1 million in industrial development bonds used in financing its three manufacturing facilities. "As 300mm wafer capacity increases due to the expansion of 300mm device fabs, a number of our tools -- including NanoMapper, AFS A distributed file system for large, widely dispersed Unix and Windows networks from Transarc Corporation, now part of IBM. It is noted for its ease of administration and expandability and stems from Carnegie-Mellon's Andrew File System. AFS - Andrew File System and WaferSight -- have become essential tools for wafer makers, and we received multiple orders for our 300mm products in the first quarter," Dr. Koliopoulos said. "ADE has improved its financial position continuously over the past several quarters, and we are clearly in better shape today than we have been in years," stated ADE Chief Financial Officer Brian James Not to be confused with Brion James. Brian James can be
Looking Ahead "The latest industry research suggests that the wafer and device markets are now at the beginning of an upturn," Dr. Koliopoulos said. "At ADE, we have taken the steps necessary 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>. this growing demand. We have lowered our cost structure, greatly improved our operating efficiency and rolled out an advanced suite of metrology and inspection products. At the same time, we have increased our liquidity and continued to invest in our next generation of technologies for the wafer, device and data storage markets. This provides us with great confidence in ADE's near- and long-term financial success." The Company anticipates that revenues for the second quarter of fiscal 2004 will be at or slightly above those reported in the first quarter of fiscal 2004. Excluding the first-quarter gain derived from the JAL transaction, ADE also expects that its net income will increase sequentially. Conference Call Reminder ADE will host a conference call to discuss the Company's first quarter fiscal 2004 financial results on Wednesday, September 3, 2003 at 8:30 a.m. (ET). 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 http://www.ade.com, fifteen minutes prior to the start of the conference call. About ADE Corporation ADE Corporation is a leading supplier of metrology and inspection systems for the semiconductor wafer, semiconductor device, magnetic data storage and optics manufacturing industries. 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. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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, beliefs, assumptions and anticipations should be considered forward-looking statements. These statements include, but are not limited to, those associated with expected demand in the wafer, device and data storage markets as well as the Company's ability to capitalize on this demand; and the Company's financial performance for the second quarter of fiscal 2004 and full year 2004. 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 ability to increase gross margins, its visibility; and the effects of the real estate market on the Company's property initiatives. 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, 2003. 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 statements of operations and balance sheets.
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three months ended
July 31
2003 2002
Revenue $19,066 $14,740
Cost of revenue 10,532 8,942
Gross profit 8,534 5,798
Operating expenses:
Research and development 3,697 4,844
Marketing and sales 2,005 2,800
General and administrative 2,165 2,853
Restructuring charges 393 877
Total operating expenses 8,260 11,374
Income (loss) from operations 274 (5,576)
Gain on sale of long-term investment 1,729 -
Interest and other income (expense), net (162) (119)
Income (loss) before provision for income taxes
and equity in net earnings (loss) of affiliated
companies 1,841 (5,695)
Provision for income taxes 88 22
Income (loss) before equity in net earnings
(loss) of affiliated companies 1,753 (5,717)
Equity in net earnings (loss) of affiliated
companies 48 (64)
Net income (loss) $1,801 $(5,781)
Basic earnings (loss) per share $0.13 $(0.42)
Diluted earnings (loss) per share $0.13 $(0.42)
Weighted average shares outstanding - basic 13,768 13,679
Weighted average shares outstanding - diluted 13,827 13,679
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
July 31, April 30,
2003 2003
Assets
Cash and cash equivalents $32,982 $21,476
Marketable securities 1,706 1,060
Accounts receivable, net 11,661 13,385
Inventories 29,283 29,349
Other current assets 1,198 1,046
Total current assets 76,830 66,316
Fixed assets, net 12,039 20,923
Investments 500 3,724
Restricted cash 1,054 3,157
Other assets 6,755 6,996
Total assets $97,178 $101,116
Liabilities and Stockholders' Equity
Total current liabilities $13,825 $16,237
Deferred gain on sale-leaseback 1,694 -
Long-term debt 3,735 10,082
Total stockholders' equity 77,924 74,797
Total liabilities and stockholders' equity $97,178 $101,116
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