Fourth Fiscal Quarter Highlights:
- Quarterly revenues grew 18% over the previous quarter
- Semiconductor testers, handlers and interface products driving growth
- Achieved target business model in the fourth quarter
- Strong business momentum continues into Q1FY15
NORWOOD, Mass., Sept. 8, 2014 (GLOBE NEWSWIRE) -- Xcerra Corporation (Nasdaq:XCRA), today announced financial results for its fourth fiscal quarter ended July 31, 2014.
Net sales for the quarter were $124,327,000, compared to the prior quarter net sales of $105,424,000. GAAP net income for the quarter was $13,514,000, or $0.27 per diluted share. Excluding restructuring, acquisition and integration expenses, and purchase accounting adjustments totaling ($1,918,000), and amortization of purchased intangible assets of $849,000, non-GAAP net income for the quarter was $12,445,000, or $0.25 per diluted share.
For the twelve-month period ended July 31, 2014, sales were $330,874,000. GAAP net income was $833,000, or $0.02 per diluted share. Excluding the net impact of restructuring, acquisition and integration expenses, and purchase accounting adjustments totaling $2,188,000, and amortization of purchased intangible assets of $2,006,000, non-GAAP net income for the year was $5,027,000, or $0.10 per diluted share.
Dave Tacelli, chief executive officer and president, commented, "The Company delivered strong financial results in the fourth quarter. Sales came in above our expectations which led to higher than expected gross margin, EBITDA and net income. Our business model is now delivering the level of financial performance we outlined when we first announced the acquisition of Multitest and ECT.
We have seen an increase in cross selling opportunities now that we offer customers all of the key components of the semiconductor test cell and this is leading to market share gains. We also expect to ship our first total test cell solution for 77GHz automotive radar applications this fall. These devices are used in collision avoidance systems and are expected to ramp in high volume next calendar year. We are the only provider of a complete production solution for these very high frequency devices delivering a compelling combination of test cell efficiency and accelerated time to high volume production.
The acquired businesses are leading to expanded selling opportunities, enhanced bottom line performance and new product developments. As an example, our bare board PCB test systems continue to gain share as our flying probe technology wins new business driven by changes in PCB technology. Our overall financial performance is expected to remain strong for our first fiscal quarter with semiconductor test solutions continuing as the primary business driver."
First Quarter Fiscal 2015 Outlook
For the fiscal quarter ending October 31, 2014 net sales are expected to be in the range of $124 million to $128 million. Non-GAAP net income is expected to be in the range of $0.23 to $0.27 per share, assuming 49.5 million fully diluted shares outstanding. The non-GAAP net income guidance excludes amortization of inventory step up for purchase accounting of $1,493,000 and amortization of purchased intangible assets of approximately $563,000.
The Company will conduct a conference call today, September 8, 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 September 10, 2014, via telephone, by dialing (855) 859-2056; conference ID number 87029471. 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 July 31, 2014 excludes the amortization of purchased intangible assets, restructuring charges, purchase accounting adjustments and other acquisition and integration 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 (ECT) 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 acquisition of the Multitest and ECT businesses, 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 April 30, 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) | ||
| (unaudited) | ||
| ASSETS | July 31, 2014 | July 31, 2013 |
| Current assets | ||
| Cash and cash equivalents | $ 59,269 | $ 28,235 |
| Marketable securities | 39,659 | 96,159 |
| Accounts receivable - trade, net | 90,266 | 28,102 |
| Accounts receivable - other, net | 99 | 963 |
| Inventories, net | 69,670 | 29,139 |
| Prepaid expenses and other current assets | 5,217 | 2,497 |
| Total current assets | 264,180 | 185,095 |
| Property and equipment, net | 40,883 | 16,647 |
| Intangible assets, net | 11,565 | 1,571 |
| Goodwill | 43,030 | 43,030 |
| Other assets | 3,906 | 1,258 |
| Total assets | $ 363,564 | $ 247,601 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of long term debt | $ 3,831 | $ -- |
| Accounts payable | 32,710 | 13,266 |
| Other accrued expenses | 36,665 | 19,352 |
| Deferred revenues | 7,406 | 5,084 |
| Total current liabilities | 80,612 | 37,702 |
| Term Loan | 48,135 | -- |
| Subordinated Debt | 18,000 | -- |
| Other long-term liabilities | 12,198 | 11,402 |
| Stockholders' equity | 204,619 | 198,497 |
| Total liabilities and stockholders' equity | $ 363,564 | $ 247,601 |
| Xcerra Corporation | ||||
| Consolidated Statements of Operations | ||||
| (in thousands, except earnings per share data) | ||||
| (unaudited) | ||||
|
Three Months Ended July 31, |
Twelve Months Ended July 31, |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Net sales | $ 124,327 | $ 37,521 | $ 330,874 | $ 151,982 |
| Cost of sales | 71,133 | 17,525 | 190,183 | 71,223 |
| Gross profit | 53,194 | 19,996 | 140,691 | 80,759 |
| Engineering and product development expenses | 17,652 | 13,311 | 63,911 | 52,314 |
| Selling, general, and administrative expenses | 23,726 | 10,851 | 75,859 | 39,253 |
| Amortization of purchased intangible assets | 849 | 396 | 2,006 | 1,582 |
| Restructuring | 363 | (179) | 3,944 | 476 |
| Income (loss) from operations | 10,604 | (4,383) | (5,029) | (12,866) |
| Other income (expense): | ||||
| Bargain purchase gain | 3,977 | -- | 8,621 | -- |
| Other income (expense), net | (1,330) | 12 | (1,992) | 464 |
| Income (loss) before provision for income taxes | 13,251 | (4,371) | 1,600 | (12,402) |
| (Provision) benefit for income taxes | 263 | (285) | (767) | 275 |
| Net income (loss) | $ 13,514 | $ (4,656) | $ 833 | $ (12,127) |
| Net income (loss) per share: | ||||
| Basic | $ 0.28 | $ (0.10) | $ 0.02 | $ (0.25) |
| Diluted | $ 0.27 | $ (0.10) | $ 0.02 | $ (0.25) |
| Weighted average shares outstanding: | ||||
| Basic | 48,385 | 47,595 | 48,214 | 47,719 |
| Diluted | 49,291 | 47,595 | 49,150 | 47,719 |
| Xcerra Corporation | ||||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) | ||||||
| (In thousands, except per share amounts) | ||||||
| (unaudited) | ||||||
|
Three Months Ended July 31, 2014 |
Basic Earnings Per Share |
Diluted Earnings Per Share |
Three Months Ended July 31, 2013 |
Basic Earnings Per Share |
Diluted Earnings Per Share |
|
| GAAP net income (loss) | $ 13,514 | $ 0.28 | $ 0.27 | $ (4,656) | $ (0.10) | $ (0.10) |
| Amortization of purchased intangible assets | 849 | 0.02 | 0.02 | 396 | 0.01 | 0.01 |
| Amortization of inventory step up for purchase accounting | 1,289 | 0.03 | 0.03 | -- | -- | -- |
| Acquisition and integration related expenses | 407 | 0.01 | 0.01 | 1,300 | 0.03 | 0.03 |
| Bargain purchase gain | (3,977) | (0.08) | (0.08) | -- | -- | -- |
| Restructuring | 363 | 0.00 | 0.00 | (179) | (0.00) | (0.00) |
| Non-GAAP net income (loss) | $ 12,445 | $ 0.26 | $ 0.25 | $ (3,139) | $ (0.07) | $ (0.07) |
| Weighted average shares outstanding: | 48,385 | 49,291 | 47,595 | 47,595 | ||
|
Twelve Months Ended July 31, 2014 |
Basic Earnings Per Share |
Diluted Earnings Per Share |
Twelve Months Ended July 31, 2013 |
Basic Earnings Per Share |
Diluted Earnings Per Share |
|
| GAAP net income (loss) | $ 833 | $ 0.02 | $ 0.02 | $ (12,127) | $ (0.25) | $ (0.25) |
| Amortization of purchased intangible assets | 2,006 | 0.04 | 0.04 | 1,582 | 0.03 | 0.03 |
| Amortization of inventory step up for purchase accounting | 3,981 | 0.08 | 0.08 | -- | -- | -- |
| Acquisition and integration related expenses | 2,884 | 0.06 | 0.06 | 1,300 | 0.03 | 0.03 |
| Bargain purchase gain | (8,621) | (0.18) | (0.18) | -- | -- | -- |
| Restructuring | 3,944 | 0.08 | 0.08 | 476 | 0.01 | 0.01 |
| Non-GAAP net income (loss) | $ 5,027 | $ 0.10 | $ 0.10 | $ (8,769) | $ (0.18) | $ (0.18) |
| Weighted average shares outstanding: | 48,214 | 49,150 | 47,719 | 47,719 | ||