ADE Corporation Reports Revenue and EPS at High End of Second Quarter Guidance; Company Sets Another Record For Cash Balance.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 second quarter of fiscal 2006 ended October October: see month. 31, 2005. Revenue for the second quarter of fiscal 2006 was $23.6 million, compared with $24.3 million for the first quarter of fiscal 2006 and $29.3 million for the second quarter of fiscal 2005. ADE posted net income of $2.9 million, or $0.20 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 second quarter of fiscal 2006. This compares with net income of $2.9 million, or $0.20 per diluted share, for the first quarter of fiscal 2006. "ADE continued to perform well during the recent quarters of industry 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. , generating strong operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and pushing our total cash balance to record levels," 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. "Bookings increased sequentially in the second quarter, which we believe suggests that we may have turned the corner in terms of sales Terms of sale Conditions under which a firm proposes to sell its goods or services for cash or credit. volume. For the second quarter, revenue was strongest in Japan and 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). for ADE, with those markets contributing 45 percent and 30 percent of our total revenue, respectively," Dr. Koliopoulos continued. "The U.S. market remained steady on a sequential basis at 20 percent of revenue, while the remaining five percent came from Europe." "Contribution from the data storage market grew nicely during the quarter to 20 percent of our total revenue. We expect sales for these products will continue to escalate es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. along with the adoption of perpendicular magnetic recording techniques for small form factor hard disk drives and rising demand for hand held devices. 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. market, meanwhile, contributed 70 percent of our total second-quarter revenue while device makers generated the remaining 10 percent of revenue." Dr. Koliopoulos added, "Our financial outlook has brightened substantially in recent months. Quote activity is on the rise, particularly for our new NanoXam(TM), WaferXam(TM) and FabVision(TM) tools. These tools, along with rising wafer starts and utilization, will help fuel our future financial performance as they become broadly adopted." 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. on October 31, 2005 was $40.2 million. This compares with $42.1 million on July 31, 2005 and $48.1 million on October 31, 2004. Gross margin for the second fiscal quarter of 2006 was 56 percent. This compares with 56 percent for the prior quarter and 54 percent for the year-ago second fiscal quarter. ADE ended the second quarter with $82.1 million in cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . This is up 11 percent from $73.7 million at year-end fiscal 2005 and is up 61 percent from $51.1 million at October 31, 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: . We also enhanced our balance sheet further, ending the quarter with a record cash position." Business Outlook "Many signs are pointing to an improving second half of fiscal 2006 for ADE," stated Dr. Koliopoulos. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. recent announcements by wafer suppliers as well as industry experts, overall wafer fab utilization rates have now risen above 90 percent, which has triggered a new wave of expansion plans. We expect that ADE will benefit from this trend as capacity is added given its strong market share in both 200mm and 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 tools." "At the same time, ADE's new tools are receiving positive feedback in the wafer and device markets," he continued. "NanoXam, our new patterned wafer metrology system, was recently accepted by a leading analog DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive manufacturer, and we expect sales for this tool will increase in the later part of this fiscal year. We are on a similar timeline
Timeline may refer to:
Dane particle an intact hepatitis B viral particle. inspection and defect defect - bug classification tool, WaferXam also is expected to begin generating revenue in the months ahead. This convergence of several positive indicators bodes well for ADE and its shareholders in the future as 300mm wafer production continues its rapid growth rate in the coming years." For the third quarter of fiscal 2006, the Company anticipates that revenue will be in the range of $24 million to $26 million. Gross margins are expected to be in the range of 53 percent to 55 percent. Based on these factors, the Company anticipates earnings in the range of $0.20 to $0.24 per share for the third quarter of fiscal 2006, assuming an effective book tax rate of 36 percent. ADE expects to continue to utilize NOLs and credits to reduce its cash based tax obligations. This earnings per share guidance assumes approximately 14.7 million weighted average diluted shares outstanding for the period ending January 31, 2006. Conference Call Reminder ADE will host a conference call and webcast on December 7, 2005 at 8:30 a.m. Eastern Time (ET) to discuss the second quarter financial results and business outlook. 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 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, which is not a part of this release. 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 success of the Company's new and existing products, orders and revenue associated with those products for the remainder of fiscal 2006, market demand, wafer starts, and the Company's financial performance for the third quarter and the balance of the fiscal year, as well as other statements under "Business Outlook" 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 ADE's 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; optimism based on the Company's 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 ; the potential of rapidly slowing order flow; and the potential impact of promulgations. 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 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, 2005.
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three months ended Six months ended
October 31 October 31
------------------ -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Revenue $23,614 $29,289 $47,926 $57,601
Cost of revenue 10,396 13,543 21,099 26,934
-------- -------- -------- --------
Gross profit 13,218 15,746 26,827 30,667
-------- -------- -------- --------
Operating expenses:
Research and development 3,819 3,657 7,630 7,283
Marketing and sales 2,940 2,815 6,450 6,285
General and administrative 2,424 2,864 5,182 5,527
-------- -------- -------- --------
Total operating expenses 9,183 9,336 19,262 19,095
-------- -------- -------- --------
Income from operations 4,035 6,410 7,565 11,572
Interest income 589 134 1,071 197
Interest expense (71) (82) (120) (134)
Other income 3 19 56 52
-------- -------- -------- --------
Income before provision for
income taxes 4,556 6,481 8,572 11,687
Provision for income taxes 1,640 178 2,771 326
-------- -------- -------- --------
Net income $ 2,916 $ 6,303 $ 5,801 $11,361
======== ======== ======== ========
Basic earnings per share $ 0.20 $ 0.45 $ 0.40 $ 0.81
Diluted earnings per share $ 0.20 $ 0.44 $ 0.40 $ 0.80
Weighted average shares
outstanding - basic 14,376 14,042 14,347 14,024
Weighted average shares
outstanding - diluted 14,605 14,257 14,610 14,271
ADE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, unaudited)
October 31, April 30,
2005 2005
Assets
Cash and cash equivalents $ 81,231 $ 72,841
Marketable securities 833 836
Accounts receivable, net 17,826 18,499
Inventories 34,039 30,764
Other current assets 1,268 1,373
Deferred income taxes 10,627 10,601
----------- -----------
Total current assets 145,824 134,914
Fixed assets, net 8,665 9,241
Deferred income taxes 4,102 6,616
Investments 499 499
Other assets 1,833 1,956
----------- -----------
Total assets $ 160,923 $ 153,226
=========== ===========
Liabilities and Stockholders' Equity
Total current liabilities $ 18,302 $ 18,273
Deferred gain on sale-leaseback 1,440 1,496
Long-term debt 3,338 3,431
Total stockholders' equity 137,843 130,026
----------- -----------
Total liabilities and stockholders'
equity $ 160,923 $ 153,226
=========== ===========
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