First Fiscal Quarter Notables:
- Business environment slowed more than
expected
- First quarter financial results outperform
model
- Positive outlook for calendar 2016, with multiple
growth opportunities
Xcerra Corporation (NASDAQ:XCRA), today announced financial results
for its first fiscal quarter ended October 31, 2015.
Net sales for the quarter were $78,401,000 compared to the prior
quarter's sales of $102,072,000. GAAP net loss for the quarter was
($1,666,000), or ($0.03) per share. Excluding the loss from
discontinued operations of $788,000, restructuring charges of
$133,000, and amortization of purchased intangible assets of
$414,000, non-GAAP net loss for the quarter was ($331,000), or
($0.01) per diluted share.
Dave Tacelli, president and chief executive officer, commented,
"The business environment softened in most business segments in
which we compete. While sales slowed more than anticipated, we were
close to break-even on a non-GAAP basis due to tight control of
expenses, favorable currency impact, and better than modeled gross
margin performance.
We see business conditions continuing to remain challenging
through our fiscal second quarter, but overall, we expect calendar
2016 to be a growth year for the Company. Several factors
contribute to this outlook including customer feedback, share gains
in our core businesses, and expected revenues from new market
opportunities. While we continue to keep tight control over
expenses, our resources are deployed to aggressively compete and
win the new business opportunities currently underway."
Second Quarter Fiscal 2016 Outlook
For the fiscal quarter ending January 31, 2016, net sales are
expected to be in the range of $70 million to $75 million. Non-GAAP
net loss for the quarter is expected to be in the range of ($0.13)
to ($0.08) per share, assuming 54 million fully diluted shares
outstanding. The non-GAAP net loss guidance excludes discontinued
operations, and amortization of purchased intangible assets.
The Company will conduct a conference call today, November 24,
2015, at 10:00 AM EST 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 November 26, 2015 via telephone, by
dialing 855.859.2056; conference ID number 22845439. 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 loss for the quarter ended October 31, 2015,
excludes the amortization of purchased intangible assets,
restructuring charges and loss from discontinued operations.
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, the fluctuations in the demand for semiconductor
devices, the ability of the Company to win orders from customers
for the testing and handling of their new generation semiconductor
devices, the fluctuations in the demand of our customer's devices
in the marketplace, the Company's ability 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 Annual Report on Form 10-K for the
fiscal year ended July 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 |
October 31,
2015 |
July 31,
2015 |
|
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 64,205 |
$ 77,858 |
Marketable securities |
59,124 |
60,593 |
Accounts receivable - trade, net |
73,896 |
81,313 |
Accounts receivable - other, net |
292 |
326 |
Inventories, net |
62,387 |
60,593 |
Prepaid expenses and other current
assets |
8,344 |
8,393 |
Assets held for sale |
10,713 |
10,454 |
Total current assets |
278,961 |
299,530 |
|
|
|
Property and equipment, net |
30,563 |
31,450 |
Intangible assets, net |
10,226 |
10,640 |
Goodwill |
43,850 |
43,850 |
Other assets |
2,585 |
2,005 |
Total assets |
$ 366,185 |
$ 387,475 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities |
|
|
Current portion of long-term debt |
$ 3,143 |
$ 2,509 |
Accounts payable |
20,518 |
27,492 |
Other accrued expenses |
30,256 |
35,579 |
Deferred revenues |
7,197 |
7,466 |
Liabilities held for sale |
912 |
1,147 |
Total current
liabilities |
62,026 |
74,193 |
|
|
|
Term Loan |
23,242 |
23,938 |
Other long-term liabilities |
11,201 |
10,876 |
Stockholders' equity |
269,716 |
278,468 |
Total liabilities and
stockholders' equity |
$ 366,185 |
$ 387,475 |
|
Xcerra
Corporation |
Consolidated Statements
of Operations |
(in thousands, except
earnings per share data) |
(unaudited) |
|
Three Months
Ended |
|
October
31, |
|
2015 |
2014 |
|
|
|
Net sales |
$ 78,401 |
$ 116,221 |
Cost of sales |
46,269 |
63,022 |
Gross profit |
32,132 |
53,199 |
|
|
|
Engineering and product development
expenses |
15,063 |
16,065 |
Selling, general, and administrative
expenses |
17,952 |
22,155 |
Amortization of purchased intangible
assets |
414 |
535 |
Restructuring |
133 |
708 |
Income (loss) from operations |
(1,430) |
13,736 |
|
|
|
Other income (expense), net |
1,463 |
(480) |
|
|
|
Income (loss) before provision for income
taxes |
33 |
13,256 |
Provision for income taxes |
911 |
763 |
Income (loss) from continuing operations |
(878) |
12,493 |
Loss from discontinued operations, net of
tax |
(788) |
(432) |
Net income (loss) |
$ (1,666) |
$ 12,061 |
|
|
|
Basic net income (loss) per share: |
|
|
Net income (loss) from continuing
operations |
$ (0.02) |
$ 0.24 |
Net income (loss) from discontinued
operations, net of tax |
(0.01) |
(0.01) |
Basic net income (loss) per share |
$ (0.03) |
$ 0.24 |
|
|
|
Diluted net income (loss) per share: |
|
|
Net income (loss) from continuing
operations |
$ (0.02) |
$ 0.24 |
Net income (loss) from discontinued
operations, net of tax |
(0.01) |
(0.01) |
Diluted net income (loss) per share |
$ (0.03) |
$ 0.23 |
|
|
|
Weighted-average common shares used in
computing net income (loss) per share: |
|
|
Basic |
54,490 |
51,128 |
Diluted |
54,490 |
52,303 |
|
Xcerra
Corporation |
Reconciliation of GAAP
Net Income (Loss) to Non-GAAP Net Income (Loss) |
(In thousands, except per
share amounts) |
(unaudited) |
|
|
Three Months |
Basic and
Diluted |
Three Months |
Basic |
Diluted |
|
Ended |
Earnings |
Ended |
Earnings |
Earnings |
|
October 31, 2015 |
Per Share |
October 31, 2014 |
Per Share |
Per Share |
|
|
|
|
|
|
GAAP net income (loss) |
$ (1,666) |
$ (0.03) |
$ 12,061 |
$ 0.24 |
$ 0.23 |
Loss from discontinued operations |
788 |
0.01 |
432 |
0.01 |
0.01 |
Amortization of purchased intangible
assets |
414 |
0.01 |
535 |
0.01 |
0.01 |
Amortization of inventory step up for
purchase accounting |
-- |
-- |
1,493 |
0.03 |
0.03 |
Restructuring |
133 |
0.00 |
708 |
0.01 |
0.01 |
Non-GAAP net income (loss) |
$ (331) |
$ (0.01) |
$ 15,229 |
$ 0.30 |
$ 0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
54,490 |
|
51,128 |
52,303 |
CONTACT: Investor Contact:
Richard Yerganian,
Vice President, Investor Relations
Xcerra Corporation
Tel. 781.467.5063
Email rich.yerganian@xcerra.com
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