Cerprobe Announces Second Quarter Results.GILBERT, Ariz.--(BUSINESS WIRE)--July 22, 1998--Cerprobe Corp. (Nasdaq/NM:CRPB CRPB Conflict Resolution and Peace Building ) Wednesday Wednesday: see week. reported sales and earnings for the second quarter ended June June: see month. 30, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $18,831,000, a slight increase over net sales of $18,684,000 for the quarter ended June 30, 1997. Net income for the second quarter of 1998 was $467,000, or $0.06 per share, on 27% more shares outstanding, compared with net income for the same period in 1997 of $1,589,000, or $0.24 per share. For the six months ended June 30, 1998, sales of $43,422,000 were 26% higher than sales of $34,583,000 for the first six months of 1997. Net income for the 1998 six months increased 6% to $2,812,000, or $.33 per share, on 33% more shares outstanding, compared with net income for the same period of 1997 of $2,658,000, or $.42 per share (before a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge for acquisition-related expenses). Including the acquisition-related expenses of $6,164,000, the company had a net loss of $3,305,000, or $0.52 per share, for the six months ended June 30, 1997. Cerprobe had pre-announced second quarter results on June 16, 1998, advising analysts and shareholders that sales were expected to be between $18 million and $19 million and that net income was expected to be near breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations . The company attributed the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. to continuing softness in the worldwide demand for semiconductors, coupled with ongoing uncertainty about business conditions in Asia. C. Zane The name Zane is pronounced IPA: /zeɪn/ "zayn". Zane is a word that has its roots in both Arabic and Hebrew meaning "God is Gracious". It is a common name for both males and females in Arabic speaking countries. Close, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cerprobe, commented on the first quarter results saying: "Customers remain cautious in placing new orders and some new chip designs are not ramping up as quickly as we had earlier anticipated. Given this environment and the near-term uncertainty regarding when an industry upturn might occur, we recently completed a reduction in worldwide workforce of approximately 10 percent. "We anticipate that this and other recently implemented cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. measures will enhance profitability during the balance of 1998, despite expected modest increases in sales. "We believe that 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. outlook for the industry and the company remains favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ," added Close. "We have added substantial resources to our product development team to address emerging and next-generation probing requirements for grid array, multi-chip testing, very high frequency ICs, and those that have pad pitch architectures of less than 60 microns. "We also continue to investigate and pursue both domestic and international acquisition or joint venture candidates in order to acquire technology and/or increase market share," he said. Cerprobe develops and manufactures products and equipment for the high-performance testing 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. and microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. components and markets its products worldwide to semiconductor manufacturers. The Arizona-based company operates domestic manufacturing facilities in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Texas. The company also operates international subsidiaries: Cerprobe Europe, Limited in Scotland and Cerprobe Asia in Singapore and Taiwan. "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. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements in this release regarding the company's financial performance for the balance of 1998, the weakness in the semiconductor industry and the duration of that weakness, the favorable long-term outlook for the semiconductor industry, and management's expectations of strengthening demand in the second half of 1998 are 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 include risks and uncertainties, including but not limited to, product demand and development, ability to maintain customer diversity and relationships, technological advancements, impact of competitive products and pricing, growth in targeted markets, manufacturing capacity, risks of foreign operations, ability to integrate and leverage acquisitions, and other information detailed from time to time in the company's financial news releases and Securities and Exchange Commission filings. -0-
Cerprobe Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months ended Six Months ended
June 30, June 30,
1998 1997 1998 1997
Net sales $ 18,831 $ 18,684 $ 43,422 $ 34,583
Cost and expenses:
Cost of sales 12,057 11,009 26,471 20,404
Selling, general
and administrative 5,615 4,955 11,271 9,127
Engineering and
product development 796 164 1,626 618
Acquisition-related costs -- -- -- 6,164
18,468 16,128 39,368 36,313
Operating income (loss) 363 2,556 4,054 (1,730)
Other income (expense):
Interest income 452 32 737 68
Interest expense (61) (162) (123) (297)
Other income 41 56 35 115
432 (74) 649 (114)
Income (loss) before income
taxes and minority interest 795 2,482 4,703 (1,844)
Provision for taxes (285) (934) (1,866) (1,490)
Minority interest (43) 41 (25) 29
Net income (loss) $ 467 $ 1,589 $ 2,812 $ (3,305)
Earnings (loss) per share:
Before acquisition-related
costs $ 0.06 $ 0.24 $ 0.33 $ 0.42
Diluted $ 0.06 $ 0.24 $ 0.33 $ (0.52)
Diluted shares outstanding 8,387 6,596 8,432 6,321
Cerprobe Corporation
Condensed Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31, June 30,
1998 1997 1997
(Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and short-term investments $25,319 $30,347 $ 1,482
Accounts receivable, net 10,636 10,341 9,719
Inventories, net 10,477 8,483 6,526
Other current assets 2,444 1,735 746
Total current assets 48,876 50,906 18,473
Property and equipment, net 18,640 15,142 13,770
Intangible assets, net 2,762 2,396 2,481
Other assets 736 1,010 1,803
Total assets $71,014 $69,454 $36,527
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,863 $ 4,346 $ 4,532
Accrued liabilities 3,407 3,286 3,125
Notes payable and current portion
of long-term debt 1,758 769 3,717
Total current liabilities 7,028 8,401 11,374
Long-term debt, less current portion 1,482 1,315 1,592
Deferred income taxes and other
liabilities 435 395 772
Total liabilities 8,945 10,111 13,738
Minority interest in net assets of
consolidated subsidiaries 333 132 --
Stockholders' equity 61,736 59,211 22,789
Total liabilities and
stockholders' equity $71,014 $69,454 $36,527
CONTACT: Cerprobe Corp., Gilbert Randal L. Buness, 602/333-1500 or Silverman Heller Associates Philip Bourdillon/Eugene Heller, 310/208-2550 |
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