Third Fiscal Quarter Notables:
- Semiconductor Test Solutions Up 18% quarter over quarter
- Strong demand for PCB testers continues
- Factory acceptance received for first MEMS test cell solution
NORWOOD, Mass., May 28, 2015 (GLOBE NEWSWIRE) -- Xcerra Corporation (Nasdaq:XCRA), today announced financial results for its third fiscal quarter ended April 30, 2015.
Net sales for the quarter were $103,643,000, compared to the prior quarter's net sales of $92,284,000. GAAP net income for the quarter was $4,738,000, or $0.09 per diluted share. Excluding restructuring charges of $530,000 and amortization expenses totaling $446,000, non-GAAP net income for the quarter was $5,714,000, or $0.10 per diluted share. The better than model performance is due to favorable product mix and lower expenses due to foreign currency exchange.
Dave Tacelli, chief executive officer and president, commented, "As expected the Company experienced strong growth in semiconductor test solution (STS) sales over the previous quarter. Aside from the impact of foreign currency exchange, our target markets in STS are on track to see year over year growth. Over the next several years we expect the Internet of Things (IoT) to be an important technology driver of our overall STS business, an area where our products are well positioned.
We made important progress on several new product fronts. Both our automotive radar and MEMS test cell solutions have been approved by their respective initial customers. We made significant progress on the qualification of our WLCSP InCarrier solution, as well as, application development for a new Diamondx target market. Our PCB test business continues to see high demand for its products, including the recently introduced A8-16a for automated testing of large size boards."
Fourth Quarter Fiscal 2015 Outlook
For the fiscal quarter ending July 31, 2015 net sales are expected to be in the range of $110 million to $115 million. Non-GAAP net income for the quarter is expected to be in the range of $0.11 to $0.16 per share, assuming 55 million fully diluted shares outstanding. Fourth quarter guidance assumes a normalized product mix. The non-GAAP net income guidance excludes amortization of purchased intangible assets of approximately $450,000.
The Company will conduct a conference call today, May 28, 2015, 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/events-presentations.html. Audio replays of the call can be heard through May 30, 2015 via telephone, by dialing (855) 859-2056; conference ID number 43952212. A replay of the webcast can be accessed by visiting our web site 90 minutes following the conference call at http://www.xcerra.com/events-presentations.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, 2015 excludes the amortization of purchased intangible assets, restructuring charges, and purchase accounting adjustments. Management believes these non-GAAP measures are 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, 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, but not limited to whether the Company is able to timely develop new products, options and software applications, the level of customer demand for such products, options and software applications, the Company's ability to meet acceptance requirements for newly developed products, the conditions affecting the markets in which we compete, 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, 2015. 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 | April 30, 2015 | July 31, 2014 |
| Current assets | ||
| Cash and cash equivalents | $ 73,480 | $ 59,269 |
| Marketable securities | 57,091 | 39,659 |
| Accounts receivable - trade, net | 78,653 | 88,081 |
| Accounts receivable - other, net | 321 | 99 |
| Inventories, net | 63,772 | 69,670 |
| Prepaid expenses and other current assets | 7,525 | 9,308 |
| Total current assets | 280,842 | 266,086 |
| Property and equipment, net | 40,493 | 40,883 |
| Intangible assets, net | 11,397 | 11,565 |
| Goodwill | 43,900 | 43,030 |
| Other assets | 2,393 | 2,579 |
| Total assets | $ 379,025 | $ 364,143 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of long-term debt | $ 2,190 | $ 3,831 |
| Accounts payable | 28,616 | 29,617 |
| Other accrued expenses | 37,744 | 40,785 |
| Deferred revenues | 6,858 | 8,927 |
| Total current liabilities | 75,408 | 83,160 |
| Term Loan | 24,631 | 46,917 |
| Subordinated Debt | -- | 18,000 |
| Other long-term liabilities | 10,784 | 11,447 |
| Stockholders' equity | 268,202 | 204,619 |
| Total liabilities and stockholders' equity | $ 379,025 | $ 364,143 |
| Xcerra Corporation | ||||
| Consolidated Statements of Operations | ||||
| (in thousands, except earnings per share data) | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| April 30, | April 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net sales | $ 103,643 | $ 105,424 | $ 323,089 | $ 206,547 |
| Cost of sales | 59,658 | 61,869 | 188,807 | 119,050 |
| Gross profit | 43,985 | 43,555 | 134,282 | 87,497 |
| Engineering and product development expenses | 16,261 | 17,579 | 47,947 | 46,258 |
| Selling, general, and administrative expenses | 21,010 | 23,295 | 62,904 | 52,133 |
| Amortization of purchased intangible assets | 446 | 540 | 1,486 | 1,157 |
| Restructuring | 530 | 1,422 | 1,468 | 3,581 |
| Income (loss) from operations | 5,738 | 719 | 20,477 | (15,632) |
| Bargain purchase gain | -- | -- | -- | 8,621 |
| Other income (loss), net | (33) | (768) | 3,546 | (663) |
| Income (loss) before provision for income taxes | 5,705 | (49) | 24,023 | (7,674) |
| Provision for income taxes | 967 | 151 | 3,293 | 1,030 |
| Net income (loss) | $ 4,738 | $ (200) | $ 20,730 | $ (8,704) |
| Net income (loss) per share: | ||||
| Basic | $ 0.09 | $ (0.00) | $ 0.39 | $ (0.18) |
| Diluted | $ 0.09 | $ (0.00) | $ 0.38 | $ (0.18) |
| Weighted average shares outstanding: | ||||
| Basic | 54,548 | 48,356 | 53,333 | 48,156 |
| Diluted | 55,131 | 48,356 | 54,143 | 48,156 |
| Xcerra Corporation | |||||
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) | |||||
| (In thousands, except per share amounts) | |||||
| (unaudited) | |||||
| Three Months | Basic | Diluted | Three Months | Basic and Diluted | |
| Ended | Earnings | Earnings | Ended | Earnings | |
| April 30, 2015 | Per Share | Per Share | April 30, 2014 | Per Share | |
| GAAP net income (loss) | $ 4,738 | $ 0.09 | $ 0.09 | $ (200) | $ (0.00) |
| Amortization of purchased intangible assets | 446 | 0.01 | 0.01 | 540 | 0.01 |
| Amortization of inventory step up for purchase accounting | -- | -- | -- | 1,615 | 0.03 |
| Restructuring | 530 | 0.01 | 0.01 | 1,422 | 0.03 |
| Gain from financing activities (Other income, net) | -- | -- | -- | -- | -- |
| Acquisition and integration related expenses | -- | -- | -- | 350 | 0.01 |
| Bargain purchase gain | -- | -- | -- | -- | -- |
| Non-GAAP net income (loss) | $ 5,714 | $ 0.10 | $ 0.10 | $ 3,727 | $ 0.08 |
| Weighted average shares outstanding: | 54,548 | 55,131 | 48,356 | ||
| Nine Months | Basic | Diluted | Nine Months | Basic and Diluted | |
| Ended | Earnings | Earnings | Ended | Earnings | |
| April 30, 2015 | Per Share | Per Share | April 30, 2014 | Per Share | |
| GAAP net income (loss) | $ 20,730 | $ 0.39 | $ 0.38 | $ (8,704) | $ (0.18) |
| Amortization of purchased intangible assets | 1,486 | 0.03 | 0.03 | 1,157 | 0.02 |
| Amortization of inventory step up for purchase accounting | 1,991 | 0.04 | 0.04 | 2,692 | 0.06 |
| Restructuring | 1,468 | 0.03 | 0.03 | 3,581 | 0.07 |
| Gain from financing activities (Other income, net) | (2,685) | (0.05) | (0.05) | -- | -- |
| Acquisition and integration related expenses | -- | -- | -- | 2,478 | 0.05 |
| Bargain purchase gain | -- | -- | -- | (8,621) | (0.18) |
| Non-GAAP net income (loss) | $ 22,990 | $ 0.43 | $ 0.42 | $ (7,417) | $ (0.15) |
| Weighted average shares outstanding: | 53,333 | 54,143 | 48,156 | ||