ADE Corporation Reports First Quarter Fiscal 2007 Financial Results
09 September 2006 - 7:25AM
Business Wire
ADE Corporation (NasdaqGM: ADEX) today reported financial results
for its first fiscal quarter ended July 31, 2006. Revenue for the
first quarter of fiscal 2007 was $29.7 million compared with $29.3
million for the fourth quarter of fiscal 2006 and $24.3 million for
the first quarter of fiscal 2006. ADE posted net income of $3.9
million, or $0.27 per diluted share, for the first quarter of
fiscal 2007. First fiscal quarter net income included stock-based
compensation expense related to FAS 123R of $0.2 million and
certain expenses totaling $0.5 million associated with ADE's
pending merger with KLA-Tencor Corporation (NasdaqGS: KLAC). This
compares with net income of $4.7 million, or $0.32 per diluted
share, in the fourth quarter of fiscal 2006. The fourth quarter
fiscal 2006 net income figure included a tax benefit of
approximately $980,000 related to 2005 tax deductions. For the
first quarter of fiscal 2006, ADE reported net income of $2.9
million, or $0.20 per diluted share. The first quarter fiscal 2007
tax rate was 36% compared with a tax rate of 24% for the sequential
fourth quarter of fiscal 2006 and 28% for the first quarter of
fiscal 2006. Gross margin for the first fiscal quarter of 2007 was
55%. This compares with 54% for the sequential fourth fiscal
quarter and 56% for the year-ago first fiscal quarter. Cash, cash
equivalents and marketable securities reached a record $100.0
million in the first quarter of fiscal 2007. This reflects an
increase of 9% from $91.6 million at April 30, 2006, the end of
fiscal 2006, and was 27% above the $79.0 million reported at the
end of the first quarter of fiscal 2006, July 31, 2005. Backlog at
July 31, 2006 reached a record $60.5 million, an increase of 14%
from the $53.1 million reported at the end of the sequential fourth
quarter of fiscal 2006 and a 44% increase from the year-ago quarter
backlog of $42.1 million on July 31, 2005. "ADE continued to
perform well during the first fiscal quarter," said Dr. Chris L.
Koliopoulos, president and chief executive officer. "Revenue grew
more than 20% year-over-year, and comparable period net income rose
by 36%, despite the increased expenses associated with our pending
merger with KLA-Tencor. Gross margins remained strong and at the
high end our operating model. Customer activity in our core markets
remained robust, creating a strong, record backlog of tool orders
for wafer production. At the same time, ADE continued to generate
solid cash flow, concluding the quarter with a record level of
cash." Also, as previously announced, during the fourth fiscal
quarter of 2006, ADE entered into a definitive merger agreement
with KLA-Tencor, which was amended and restated in May 2006. Under
this agreement, KLA-Tencor would acquire ADE for cash consideration
of $32.50 per share. On July 13, 2006, ADE shareholders approved
the proposed merger. A closing date will be established once the
parties have cleared or waived all conditions to close, including
regulatory clearance from the German antitrust authorities who, as
previously reported, notified KLA-Tencor on July 10, 2006 of the
commencement of a Phase II investigation of the proposed merger.
Both ADE and KLA-Tencor continue to be confident that the
acquisition will be completed once German antitrust clearance is
obtained. About ADE Corporation ADE Corporation is a leading
supplier of metrology and inspection systems for the semiconductor
wafer, semiconductor device, magnetic data storage and optics
manufacturing industries. Wafer suppliers and device manufacturers
worldwide rely on ADE measurement and inspection systems to certify
and ensure the highest quality bare silicon substrates. ADE's most
recent generation of products serve both 65nm in-line manufacturing
applications and 45nm process development. Semiconductor device
yields begin with the bare wafer, and ADE's leading technology
provides early insight into surface defect, shape, flatness and
nanotopography of these advanced 300mm substrates. Additional
information about ADE is available on the Internet at
http://www.ade.com, which website is not part of this press
release. Cautionary Statement Regarding Forward-Looking Statements
This news release contains certain forward-looking statements
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995 and federal
securities law. Such forward-looking statements are subject to
known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such statements. Those statements that make reference to
expectations, predictions, beliefs, and assumptions should be
considered forward-looking statements. These statements include,
but are not limited to, those associated with the proposed merger
with KLA-Tencor, including the expected closing time for the
proposed merger and the obtaining of clearance from German
antitrust authorities. These statements involve risks and
uncertainties including those associated with delays in obtaining,
or adverse conditions contained in, the German antitrust
authorities' regulatory approvals; failure to consummate or delay
in consummating the proposed merger for other reasons, changes in
laws or regulations and other similar factors. Further information
on potential factors that could affect ADE's business is contained
in its reports on file with the Securities and Exchange Commission,
including its Form 10-K for the year ended April 30, 2005. Except
as otherwise required by law, ADE is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise. -0- *T ADE CORPORATION UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands,
except per share amounts) Three months ended July 31
------------------------ 2006 2005 ------------ ----------- Revenue
$ 29,734 $ 24,312 Cost of revenue 13,452 10,703 -----------
---------- Gross profit 16,282 13,609 ----------- ----------
Operating expenses: Research and development 4,130 3,812 Marketing
and sales 3,469 3,509 General and administrative 3,533 2,758
----------- ---------- Total operating expenses 11,132 10,079
----------- ---------- Income from operations 5,150 3,530 Interest
income 994 482 Interest expense (58) (49) Other income 59 53
----------- ---------- Income before provision for income taxes
6,145 4,016 Provision for income taxes 2,224 1,131 -----------
---------- Net income $ 3,921 $ 2,885 =========== ========== Basic
earnings per share $ 0.27 $ 0.20 Diluted earnings per share $ 0.27
$ 0.20 Weighted average shares outstanding - basic 14,519 14,318
Weighted average shares outstanding - diluted 14,777 14,611 ADE
CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In
thousands, unaudited) July 31, 2006 April 30, 2006 Assets Cash and
cash equivalents $ 99,943 $ 91,573 Marketable securities 23 -
Accounts receivable, net 19,231 23,164 Inventories 35,935 35,855
Other current assets 1,301 1,701 Deferred income taxes 9,153 9,311
-------------- ------------- Total current assets 165,586 161,604
Fixed assets, net 8,642 8,946 Deferred income taxes 4,742 4,742
Investments 499 499 Other assets 1,584 1,671 --------------
------------- Total assets $ 181,053 $ 177,462 ==============
============= Liabilities and Stockholders' Equity Total current
liabilities $ 21,133 $ 22,718 Deferred gain on sale-leaseback 1,355
1,383 Long-term debt 3,195 3,244 Total stockholders' equity 155,370
150,117 -------------- ------------- Total liabilities and
stockholders' equity $ 181,053 $ 177,462 ==============
============= *T
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