Third Fiscal Quarter Highlights:
- Established a new corporate brand
- Strong business momentum for semiconductor test products
- Revenues at $105.4 million
- PCB tester business performance better than seasonal expectations
NORWOOD, Mass., May 22, 2014 (GLOBE NEWSWIRE) -- Xcerra Corporation (Nasdaq: XCRA ) formerly known as LTX-Credence Corporation (Nasdaq: LTXC ), today announced financial results for its third fiscal quarter ended April 30, 2014. Xcerra Corporation, is the new name of the parent company for the atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence and Multitest businesses.
Net sales for the quarter were $105,424,000, compared to the prior quarter net sales of $68,356,000. Net loss for the quarter was ($200,000), or ($0.00) per share on a GAAP basis. Excluding acquisition- related expenses, restructuring, and purchase accounting adjustments totaling $3,387,000, and amortization of purchased intangible assets of $540,000, non-GAAP net income for the quarter was $3,727,000, or $0.08 per share.
Dave Tacelli, chief executive officer and president, commented, "During the quarter we saw strong growth in our semiconductor test products as the cyclical recovery in the semiconductor industry gained momentum. We see this positive outlook continuing into our fourth fiscal quarter and we are excited about our growth prospects for calendar year 2014.
We are seeing the strongest business conditions in the semiconductor test market in more than two years and the PCB tester business is also showing strong momentum, especially with our industry- leading flying probe test technology. While we expect the overall market to show strong growth for the year, we believe our new products and services will result in accelerated growth opportunities for the company.
Our focus now is on growing the business, bringing new products and services to market, providing customers with the highest level of responsiveness and support, and achieving our business model targets."
Fourth Quarter Fiscal 2014 Outlook
For the fiscal quarter ending July 31, 2014 net sales are expected to be in the range of $113 million to $117 million. Non-GAAP net income is expected to be in the range of $0.12 to $0.16 per share, assuming 49.2 million fully diluted shares outstanding. The non-GAAP net income guidance excludes amortization of inventory step up for purchase accounting of $1,615,000 and amortization of purchased intangible assets of approximately $540,000.
The Company will conduct a conference call today, May 22, 2014, at 10:00 AM EDT to discuss this release. The conference call may be accessed via telephone by dialing (877) 853-5334. The call will be simulcast via the Xcerra web site http://www.xcerra.com/investors.html . Audio replays of the call can be heard through May 24, 2014, via telephone, by dialing (855) 859-2056; conference ID number 32191060. A replay of the webcast can be accessed by visiting our web site 90 minutes following the conference call at http://www.xcerra.com/investors.html .
Information About Non-GAAP Measures
Xcerra supplements its GAAP financial results by providing non-GAAP measures to evaluate the operating performance of the Company. Non-GAAP net income for the quarter ended April 30, 2014 excludes the amortization of purchased intangible assets, restructuring charges, purchase accounting adjustments and other acquisition related expenses. Management finds these non-GAAP measures to be useful for internal comparison to historical operating results as well as to the operating results of its competitors, and believes that this information is useful to investors for the same purposes. A reconciliation between the Company's GAAP and non-GAAP results is provided in the attached tables. Readers are reminded that non-GAAP information is merely a supplement to, and not a replacement for, GAAP financial measures.
Safe Harbor for Forward-Looking Statements
Any statements in this presentation about future expectations, plans and prospects for the Company, including statements regarding the Company's acquisition of the Multitest and Everett Charles Technologies businesses from an affiliate of Dover Corporation, financial guidance on revenue, financial operating results (including net income or loss), and earnings or loss per share, continued customer adoption of recent product introductions, product developments, potential customer expansion and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the Company's use of the words "believes," "anticipates," "plans," "expects," "may," "will," "would," "should," "intends," "estimates," "seeks" or similar expressions, whether negative or affirmative. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company's ability to realize the anticipated benefits of its recent acquisition of the Multitest and Everett Charles Technologies businesses from an affiliate of Dover Corporation, whether the Company is able to timely develop new products, options and software applications and the level of customer demand for such products, options and software applications, and the Company's ability to meet its debt service obligations under its existing credit arrangement with Silicon Valley Bank, as well as the other important factors as are described in the Company's filings with the U.S. Securities and Exchange Commission, including those included under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2014. The Company disclaims any intention or obligation to update any forward-looking statements after the date of this presentation.
About Xcerra
Xcerra Corporation is comprised of four businesses in the semiconductor and electronics manufacturing test markets: atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence and Multitest. The combination of these businesses creates a company with a broad spectrum of semiconductor and PCB test expertise that drives innovative new products and services, and the ability to deliver to customers fully integrated semiconductor test cell solutions. The Company addresses the broad, divergent requirements of the mobility, industrial, automotive and consumer end markets, offering a comprehensive portfolio of solutions and technologies, and a global network of strategically deployed applications and support resources. Additional information can be found at www.xcerra.com or at each product group's website; www.atg-lm.com , www.ectinfo.com , www.ltxc.com and www.multitest.com
Xcerra is a trademark of Xcerra Corporation.
All other trademarks are the property of their respective owners.
| Xcerra Corporation | ||
| Consolidated Balance Sheets | ||
| (in thousands) | ||
| ASSETS | April 30, 2014 | July 31, 2013 |
| (unaudited) | ||
| Current assets | ||
| Cash and cash equivalents | $ 55,114 | $ 28,235 |
| Marketable securities | 41,582 | 96,159 |
| Accounts receivable - trade, net | 77,321 | 28,102 |
| Accounts receivable - other, net | 205 | 963 |
| Inventories, net | 69,941 | 29,139 |
| Prepaid expenses and other current assets | 4,963 | 2,497 |
| Total current assets | 249,126 | 185,095 |
| Property and equipment, net | 34,941 | 16,647 |
| Intangible assets, net | 9,514 | 1,571 |
| Goodwill | 43,030 | 43,030 |
| Other assets | 3,970 | 1,258 |
| Total assets | $ 340,581 | $ 247,601 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of long term debt | $ 3,125 | $ -- |
| Accounts payable | 30,605 | 13,266 |
| Other accrued expenses | 35,637 | 19,352 |
| Deferred revenues | 4,267 | 5,084 |
| Total current liabilities | 73,634 | 37,702 |
| Term Loan | 45,625 | -- |
| Subordinated Debt | 18,000 | -- |
| Other long-term liabilities | 13,245 | 11,402 |
| Stockholders' equity | 190,077 | 198,497 |
| Total liabilities and stockholders' equity | $ 340,581 | $ 247,601 |
| Xcerra Corporation | ||||
| Consolidated Statements of Operations | ||||
| (in thousands, except earnings per share data) | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| April 30, | April 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Net sales | $ 105,424 | $ 36,257 | $ 206,547 | $ 114,461 |
| Cost of sales | 61,869 | 17,558 | 119,050 | 53,699 |
| Gross profit | 43,555 | 18,699 | 87,497 | 60,762 |
| Engineering and product development expenses | 17,579 | 13,407 | 46,258 | 39,003 |
| Selling, general, and administrative expenses | 23,295 | 9,213 | 52,133 | 28,401 |
| Amortization of purchased intangible assets | 540 | 395 | 1,157 | 1,187 |
| Restructuring | 1,422 | 356 | 3,581 | 655 |
| Income (loss) from operations | 719 | (4,672) | (15,632) | (8,484) |
| Other income (expense): | ||||
| Bargain purchase gain | -- | -- | 4,644 | -- |
| Other income (loss), net | (768) | (37) | (663) | 453 |
| Income (loss) before provision for income taxes | (49) | (4,709) | (11,651) | (8,031) |
| (Provision) benefit for income taxes | (151) | (35) | (1,030) | 560 |
| Net (loss) | $ (200) | $ (4,744) | $ (12,681) | $ (7,471) |
| Net (loss) per share: | ||||
| Basic and Diluted | $ (0.00) | $ (0.10) | $ (0.26) | $ (0.16) |
| Weighted average shares outstanding: | ||||
| Basic and Diluted | 48,356 | 47,547 | 48,156 | 47,761 |
| Xcerra Corporation | ||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) | ||||
| (In thousands, except per share amounts) | ||||
| (unaudited) | ||||
| Basic and | Basic and | |||
| Three Months | Diluted | Three Months | Diluted | |
| Ended | Earnings | Ended | Earnings | |
| April 30, 2014 | Per Share | April 30, 2013 | Per Share | |
| GAAP net (loss) | $ (200) | $ (0.00) | $ (4,744) | $ (0.10) |
| Amortization of purchased intangible assets | 540 | 0.01 | 395 | 0.01 |
| Amortization of inventory step up for purchase accounting (Cost of sales) | 1,615 | 0.03 | -- | -- |
| Acquisition related expenses (SG&A) | 350 | 0.01 | -- | -- |
| Restructuring | 1,422 | 0.03 | 356 | 0.01 |
| Non-GAAP net income (loss) | $ 3,727 | $ 0.08 | $ (3,993) | $ (0.08) |
| Weighted average shares outstanding: | 48,356 | 47,547 | ||
| Basic and | Basic and | |||
| Nine Months | Diluted | Nine Months | Diluted | |
| Ended | Earnings | Ended | Earnings | |
| April 30, 2014 | Per Share | April 30, 2013 | Per Share | |
| GAAP net (loss) | $ (12,681) | $ (0.26) | $ (7,471) | (0.16) |
| Amortization of purchased intangible assets | 1,157 | 0.02 | 1,187 | 0.02 |
| Amortization of inventory step up for purchase accounting (Cost of sales) | 2,692 | 0.06 | -- | -- |
| Acquisition related expenses (SG&A) | 2,478 | 0.05 | -- | -- |
| Bargain purchase gain (Other income (expense), net) | (4,644) | (0.10) | -- | -- |
| Restructuring | 3,581 | 0.07 | 655 | 0.01 |
| Non-GAAP net (loss) | $ (7,417) | $ (0.15) | $ (5,629) | $ (0.12) |
| Weighted average shares outstanding: | 48,156 | 47,761 | ||
Investor Contact: Richard Yerganian, Vice President, Investor Relations Xcerra Corporation Tel. 781.467.5063 Email
