updated 5/25/2011 7:16:59 AM ET 2011-05-25T11:16:59

MILPITAS, Calif., May 25, 2011 (GLOBE NEWSWIRE) -- LTX-Credence Corporation (Nasdaq:LTXC), a global provider of focused, cost-optimized ATE solutions, today announced financial results for its fiscal quarter ended April 30, 2011.

Sales for the quarter were $58,665,000, compared to the prior quarter sales of $52,549,000. Net income for the quarter was $23,621,000, or $0.47 per diluted share on a GAAP basis. Excluding the $15,000,000 merger-related break-up fee, $1,900,000 of merger-related expenses, $248,000 of restructuring expense and $1,490,000 of amortization of purchased intangible assets, net income for the quarter was $12,259,000, or $0.24 per diluted share on a non-GAAP basis.   

Dave Tacelli, chief executive officer and president, commented, "Our third quarter product revenues grew 16% sequentially, driven by a rebound in the RF power amplifier, power management and applications specific market segments. In particular, we experienced a sharp ramp in demand for the PAx test system which was introduced in the prior quarter.

With the continued strong performance resulting from our business model, we are focused on driving top line growth through market share gains. During the quarter we had success in winning business from multiple new customers, effectively displacing the established incumbent competitor. These wins were in several of our target market segments and were the result of our ability to deliver compelling cost effective test solutions to our customers.

Our fourth quarter guidance reflects increased strength in our target markets as well as overall growth in the SoC test industry. The midpoint of revenue guidance represents approximately 11% growth over our third quarter results."

Fourth Quarter Fiscal 2011 Outlook

For the fiscal quarter ending July 31, 2011, revenue is expected to be in the range of $63 million to $67 million. Non-GAAP net income is expected to be in the range of $0.25 to $0.29 per share, assuming 50.5 million fully diluted shares outstanding. The non-GAAP net income guidance excludes amortization of purchased intangible assets of approximately $1.5 million.

The Company will conduct a conference call today, May 25, 2011, at 10:00 AM EDT to discuss this release. The conference call may be accessed via telephone by dialing 877.853.5334. The conference call will also be simulcast via the LTX-Credence web site ( www.ltxc.com ). Audio replays of the call can be heard through June 24, 2011 via telephone by dialing 800.642.1687, Conference ID number 63925313 or by visiting our web site at www.ltxc.com .

Information About Non-GAAP Measures

LTX-Credence 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, 2011 excludes the merger-related break-up fee; merger-related expenses, restructuring expense and amortization of purchased intangible assets. 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

Statements in this release regarding guidance for LTX-Credence's fourth fiscal quarter, including the financial guidance on revenue and earnings or loss per share, financial operating results including net income or loss and earnings or loss per share, management's expectations as to the future condition of LTX-Credence's industry and the overall economic environment, and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward‑looking statements within the meaning of the United States securities laws, including the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "targets", "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward‑looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results or events to differ materially from those stated or implied, including but not limited to: uncertain global economic and industry conditions, fluctuations in business and consumer spending; fluctuations in our sales and operating results; risks related to the timely development of new products, options and software applications, as well as the other risks described in our filings with the U.S. Securities and Exchange Commission, including those included under the heading "Business Risks" in our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2011. LTX-Credence disclaims any intention or obligation to update any forward‑looking statements as a result of developments occurring after the date of this press release.

About LTX-Credence Corporation

LTX-Credence is a global provider of ATE solutions designed to deliver value through innovation enabling customers to implement best-in-class test strategies to maximize their profitability. LTX-Credence addresses the broad, divergent test requirements of the wireless, computing, automotive and entertainment market segments, offering a comprehensive portfolio of technologies, the largest installed base in the Asia-Pacific region, and a global network of strategically deployed applications and support resources. Additional information can be found at www.ltxc.com .

LTX-Credence and LTXC are trademarks of LTX-Credence Corporation. All other trademarks are the property of their respective owners.

LTX-Credence Corporation 
Consolidated Balance Sheets
 (in thousands) 
 (unaudited) 
     
 ASSETS  April 30, 2011 July 31, 2010
 Current assets     
 Cash and cash equivalents   $ 116,278  $ 74,978
 Marketable securities  31,468 18,458
 Accounts receivable - trade, net  41,858 45,622
 Accounts receivable - other, net  1,231 1,174
 Inventories, net  21,328 21,039
 Prepaid expenses and other current assets  5,618 4,585
 Total current assets  217,781 165,856
     
 Property and equipment, net  21,479 26,277
 Intangible assets, net  7,807 12,277
 Goodwill  43,030 43,030
 Other assets  748 771
 Total assets   $ 290,845  $ 248,211
     
 LIABILITIES AND STOCKHOLDERS' EQUITY     
 Current liabilities     
 Current portion of long-term debt   $ 873  $ 826
 Accounts payable  15,804 16,639
 Other accrued expenses  25,895 29,090
 Deferred revenues and customer advances  5,194 8,317
 Total current liabilities  47,766 54,872
     
 Other long-term liabilities  15,873 16,587
 Stockholder's equity  227,206 176,752
 Total liabilities and stockholders' equity   $ 290,845  $ 248,211
 
 
LTX-Credence Corporation
Consolidated Statements of Operations
(in thousands, except earnings per share data)
(unaudited)
         
  Three Months Ended

April 30, 
Nine Months Ended

April 30, 
  2011 2010 2011 2010
         
Net sales  $ 58,665  $ 56,069  $ 186,860  $ 145,919
Cost of sales 22,203 23,921 71,730 67,603
Gross profit  36,462 32,148 115,130 78,316
         
Engineering and product development expenses 13,314 12,339 39,188 36,179
Selling, general, and administrative expenses 11,755 11,414 37,611 29,295
Amortization of purchased intangible assets  1,490  2,664  4,471  7,992
Restructuring   248  788 363  2,027
Income from operations 9,655 4,943 33,497 2,823
         
Other income, net 13,671 1,851 14,074 1,862
Income before (benefit) provision for income taxes 23,326 6,794 47,571 4,685
(Benefit) provision for income taxes (295) (35) (430) 237
Net income  $ 23,621  $ 6,829  $ 48,001  $ 4,448
         
Net income per share:        
         
Basic  $ 0.48  $ 0.15  $ 0.97  $ 0.10
Diluted  $ 0.47  $ 0.14  $ 0.96  $ 0.10
         
Weighted average shares outstanding:        
         
Basic 49,490 46,536 49,348 43,971
Diluted 50,367 47,496 50,240 44,725
 
 
LTX-Credence Corporation 
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In thousands, except per share amounts)
(unaudited)
             
  Three Months 

Ended

April 30, 2011
Basic

Earnings

Per Share 
Diluted 

Earnings

Per Share 
Three Months 

Ended

April 30, 2010
Basic

Earnings

Per Share 
Diluted 

Earnings

Per Share 
             
GAAP net income  $ 23,621  $ 0.48  $ 0.47  $ 6,829  $ 0.15  $ 0.14
Merger-related breakup fee  (15,000) (0.30) (0.30)  --   --   -- 
Merger-related expenses  1,900 0.04 0.04  --   --   -- 
Amortization of purchased intangible assets  1,490 0.03 0.03  2,664  0.06 0.06
Restructuring   248  --   --   788  0.02 0.02
Gain on extinguishment of debt  --   --   --   (2,126)  (0.05) (0.04)
Recovery of previously written off accounts receivable  --   --   --   (1,000)  (0.02) (0.02)
             
Non-GAAP net income   $ 12,259  $ 0.25  $ 0.24  $ 7,155  $ 0.15  $ 0.15
             
             
Weighted average shares outstanding:    49,490  50,367    46,536  47,496
             
             
  Nine Months

Ended

April 30, 2011
Basic

Earnings 

Per Share 
Diluted

Earnings

Per Share 
Nine Months

Ended

April 30, 2010
Basic 

Earnings

Per Share 
Diluted 

Earnings

Per Share 
             
GAAP net income  $ 48,001  $ 0.97  $ 0.96  $ 4,448  $ 0.10  $ 0.10
Merger-related breakup fee  (15,000)  (0.30) (0.30)  --   --   -- 
Merger-related expenses  4,700  0.10 0.09  --   --   -- 
Amortization of purchased intangible assets  4,471  0.09 0.09  7,992 0.18 0.18
Restructuring   363  (0.00) 0.01  2,027 0.05 0.05
Gain on extinguishment of debt  --   --  0.00  (2,426) (0.06) (0.05)
Recovery of previously written off accounts receivable  --   --   --   (1,600) (0.03) (0.04)
             
Non-GAAP net income   $ 42,535  $ 0.86  $ 0.85  $ 10,441  $ 0.24  $ 0.23
             
             
Weighted average shares outstanding:    49,348  50,240    43,971  44,725
CONTACT: Rich Yerganian, LTX-Credence Corporation
         Tel. 781.467.5063
         Email rich_yerganian@ltxc.com

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