Credence Systems Reports Results for Fiscal 1998 Third Quarter.FREMONT, Calif.--(BUSINESS WIRE)--Aug. 18, 1998--Credence Systems Corporation (NASDAQ/NMS:CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. ) today reported results for its fiscal third quarter which ended July 31, 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 for the third quarter of fiscal 1998 were $37.3 million, a decrease of 27 percent from the net sales of $51.1 million in the third quarter of fiscal 1997. The net loss for the third quarter of fiscal 1998 totaled $33.6 million or $1.55 per share compared to a net loss during the third quarter of fiscal 1997 of $897,000 or $0.04 per share. Of the $33.6 million net loss during the company's most recent quarter, $25.6 million is due to a one-time charge associated with costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc facilities, 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 and asset writedowns and reserves to restructure the company and reflect the recent 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. in the company's business. An additional one-time charge of $4.7 million is related to the purchase of in-process research and development attributable to the acquisition of assets Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. of two of Heuristic A method of problem solving using exploration and trial and error methods. Heuristic program design provides a framework for solving the problem in contrast with a fixed set of rules (algorithmic) that cannot vary. 1. Physics Laboratories, Inc. divisions. The net loss for the third quarter of fiscal 1998 without one time charges totaled $3.3 million or $0.15 per share. Credence's chairman and chief executive officer, Dr. Wilmer Bottoms, said, "This has been a very difficult quarter for Credence and the industry as a whole. Throughout the quarter the business outlook continued to deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. and did not allow sufficient response time to avoid an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. despite the significant actions taken." Dr. Bottoms continued, "During the first half of our fiscal year 1998, we experienced almost a doubling of revenue from the same period last year, and we invested in inventory and capability to take advantage of this opportunity. However, this has been followed by an even more dramatic reduction in revenue during Q3. "This ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of production capacity and subsequent drop in demand occurred during an almost complete rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. of our product lines as more new products, than at any time in our history, were introduced. This resulted in a significant inventory exposure, and, accordingly, we are taking appropriate measures. "In order to bring operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in line with revenue during this downturn, we have tightened the focus of our investments to include only projects that are essential to our long-term growth and short-term revenue objectives and, consequently, have taken charges against non-essential project expenditures and excess facilities." Dr. Bottoms added, "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite industry conditions, our new products are being well received. During the quarter, we realized revenue on three products introduced this year: ValStar, Kalos, and BTMA-2001. We also shipped our first Triton for domestic production. "At Semicon West last month, we introduced our new Quartet Quartet™ Respiratory care A system for diagnosing and managing obstructive sleep apnea Modes Continuous, bi-level pressure, automatic 'smart' CPAP modes. See Obstructive sleep apnea. series which has been given high acclaim. All of these new products are designed to support revenue growth for Credence if and when industry growth resumes." Dr. Bottoms concluded, "The Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a stock repurchasing program for up to $20 million in value of our common stock. We plan to purchase these shares in the open market at prevailing prices and believe this to be a very sound investment on behalf of our shareholders." Credence Systems Credence Systems Corporation (NASDAQ: CMOS), is a manufacturer of test and analytical equipment for the global semiconductor industry. Founded in 1978, it is publicly traded on the Nasdaq stock market under the symbol CMOS. Corporation is a leader in the manufacture of automatic test equipment (ATE) for the worldwide semiconductor industry. Credence offers a wide range of products with test capabilities for digital, mixed-signal, and memory semiconductors. Utilizing its patented CMOS technologies, Credence products are designed to meet the strict time-to-market and cost of ownership requirements of its customers. Headquartered in Fremont, Calif., the company maintains advanced production and design facilities in Beaverton, Ore. Credence, an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified See certification. manufacturer, is listed on the Nasdaq National Market under the symbol CMOS. More information is available at www.credence.com. Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to be materially different from the future performance suggested in this release. Such factors include, but are not limited to, economic and currency instability in the Asia Pacific region, fluctuation Fluctuation A price or interest rate change. in customer demand, timing and volume of orders and shipments, competition and pricing pressures, reliability and quality issues, product mix, underabsorption of overhead, cyclicality and downturns in the semiconductor industry, continued dependence on "turns" orders to achieve revenue objectives, the company's ability to have an appropriate amount of production capacity in a timely manner, the timing of new technology, product introductions and the risk of early obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. as well as the company's ability to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... and implement a complete expense reduction plan (including the ability to identify and successfully institute additional cost-saving measures). Further, the company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the company's control. Reference is made to the discussion of risk factors detailed in the company's filings with the Securities and Exchange Commission, including its reports on 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. and 10-Q. The company assumes no obligation to update the information in this press release. Note to Editors: Credence, Credence Systems, Triton, ValStar, Kalos, BTMA-2001 and Quartet are trademarks of Credence Systems Corporation. Other trademarks which may be mentioned in this release are the intellectual property of their respective owners. -0-
CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)
Three Months Prior Quarter Nine Months
Ended Ended Ended
July 31, April 30, July 31,
1998 1997 1998 1998 1997
Net sales $ 37,322 $ 51,082 $ 74,660 $194,357 $134,698
Cost of goods
sold - on net
sales 16,901 21,638 31,664 84,003 59,451
Cost of goods
sold -
restructure
and other 20,952 -- -- 20,952 --
---------- ---------- ---------- ---------- ----------
Gross margin (531) 29,444 42,996 89,402 75,247
Operating expenses:
Research and
development 11,569 9,257 12,233 37,293 27,016
Selling,
general and
administrative 13,987 14,529 17,931 52,226 37,949
In-process
research and
development 4,838 6,022 -- 4,838 6,022
Restructure
and other 18,386 -- -- 18,386 --
---------- ---------- ---------- ---------- ----------
Total
operating
expenses 48,780 29,808 30,164 112,743 70,987
Operating
income (loss) (49,311) (364) 12,832 (23,341) 4,260
Interest and
other income
(expenses), net (7) 1,011 200 1,151 2,912
---------- ---------- ---------- ---------- ----------
Income (loss)
before income
taxes (49,318) 647 13,032 (22,190) 7,172
Income taxes (15,682) 1,542 4,290 (6,458) 3,727
Minority
interest (50) 2 (45) (124) 2
---------- ---------- ---------- ---------- ----------
Net income
(loss) ($33,586) ($897) $ 8,787 ($15,608) $ 3,443
Net income
(loss) per
share(1)
Basic ($1.55) ($0.04) $ 0.41 ($0.72) $0.16
Diluted ($1.55) ($0.04) $ 0.40 ($0.72) $0.15
Number of
shares used in
computing per
share amount(1)
Basic 21,674 21,873 21,634 21,726 21,813
Diluted 21,674 21,873 22,146 21,726 22,323
(1) Income (loss) per share amounts for the periods ended July 30,
1997 have been restated to reflect the company's adoption of
Financial Accounting Standard No. 128.
CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Prior Quarter
July 31, April 30, October 31,
1998 1998 1997
(unaudited)(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $55,621 $ 65,841 $132,761
Restricted cash 4,600 5,012 10,002
Short-term investments 75,826 78,313 35,013
Accounts receivable, net 53,059 60,770 55,246
Inventories 36,311 52,723 42,125
Other current assets 29,855 13,900 13,001
---------- ---------- ----------
Total current assets 255,272 276,559 288,148
Long-term investments 27,207 27,980 8,561
Property and equipment, net 40,428 45,930 43,050
Other assets 17,066 19,466 18,382
---------- ---------- ----------
Total assets $339,973 $369,935 $358,141
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,225 $ 12,935 $ 13,182
Accrued liabilities 28,613 24,343 20,346
Income taxes payable 2,317 4,331 4,284
---------- ---------- ----------
Total current liabilities 44,155 41,609 37,812
Convertible subordinated notes payable 115,000 115,000 115,000
Minority interest 231 312 418
Stockholders' equity 180,587 213,014 204,911
---------- ---------- ----------
Total liabilities and
stockholders' equity $339,973 $369,935 $358,141
CONTACT: Credence Systems Corp. Dr. Wilmer Bottoms, 510/657-7400 (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. ) Dennis Wolf Dennis Wolf (born October 30, 1978 in Tokmok, Kyrgyzstan) is an IFBB professional bodybuilder. To date, Dennis Wolf's most notable appearance was in the 2007 Mr. Olympia. He placed fifth in this competition. , 510/657-7400 (CFO See Chief Financial Officer. ) |
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