Rudolph Technologies, Inc. (NYSE:RTEC), a leading provider of process characterization equipment, lithography equipment and software for wafer fabs and advanced packaging facilities, today announced financial results for the 2016 first quarter.
2016 First Quarter Financial Highlights
- First quarter revenue of $54.4 million increased 6 percent sequentially and was at the high end of the Company’s guidance.
- Gross margins remained strong at 53 percent for the quarter, compared with 52 percent for the previous quarter. Non-GAAP gross margin was 54 percent in the 2016 first quarter.
- GAAP net income of $13.9 million, or $0.44 per diluted share, included income from the completion of patent litigation; Non-GAAP net income of $5.7 million, or $0.18 per diluted share, was above the mid-point of Company guidance.
- Record NSX® Inspection sales driven by strong sales into fan-out packaging applications.
- Strong software sales comprised 14 percent of revenue.
- JetStep® S Series Lithography System selected for panel fan-out packaging pilot line.
| Key Financial Data for the Quarters Ended March 31, 2016, December 31, 2015 | ||||||||||||
| and March 31, 2015 | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| US GAAP | ||||||||||||
| March 2016 | December 2015 | March 2015 | ||||||||||
| Revenue | $ | 54,362 | $ | 51,057 | $ | 52,570 | ||||||
| Gross profit margin | 53.4% | 52.2% | 55.1% | |||||||||
| Operating income | $ | 21,137 | $ | 5,854 | $ | 5,117 | ||||||
| Net Income | $ | 13,939 | $ | 2,883 | $ | 1,848 | ||||||
| Net income per diluted share | $ | 0.44 | $ | 0.09 | $ | 0.06 | ||||||
| US NON-GAAP | ||||||||||||
| March 2016 | December 2015 | March 2015 | ||||||||||
| Revenue | $ | 54,362 | $ | 51,057 | $ | 52,570 | ||||||
| Gross profit margin | 53.5% | 52.3% | 55.2% | |||||||||
| Operating income | $ | 9,570 | $ | 8,466 | $ | 10,497 | ||||||
| Net Income | $ | 5,742 | $ | 5,085 | $ | 5,380 | ||||||
| Net income per diluted share | $ | 0.18 | $ | 0.16 | $ | 0.17 | ||||||
Michael Plisinski, chief executive officer, commented, “We are pleased with the start of our new year and the continued strength of our balanced business model, through which we serve a broad set of customers in a number of growth markets including advanced packaging, RF filters, and MEMS. Results for the first quarter were driven primarily by solid demand from multiple accounts for our process control solutions for advanced packaging applications. This demand has extended to our new 3D metrology option for our flagship NSX inspection platform, generating approximately $5 million in sales in the first quarter.”
Mr. Plisinski added, “Looking ahead, we see continued growth in fan-out and other advanced packaging processes, as well as growth coming from the RF filter market in which we have made significant inroads with our RF specific solution comprised of inspection, metrology, and software technologies. By working closely with our customers we can leverage Rudolph’s broad technology portfolio to provide comprehensive solutions to meet the highly technical challenges of our customers.”
First Quarter 2016 GAAP Financial Results
First quarter
revenue totaled $54.4 million, a 6 percent increase as compared with
$51.1 million for the 2015 fourth quarter. First quarter gross margin
was 53 percent of revenues, compared to 52 percent in the 2015 fourth
quarter. The increase in gross margin was primarily due to a change in
product sales mix; specifically, stronger inspection and software sales
in the quarter.
Operating expenses for the first quarter of 2016 totaled $7.9 million and included income from a $14.6 million patent litigation judgment. This compares with $20.8 million in operating expenses in the 2015 fourth quarter.
GAAP net income for the first quarter of 2016 was $13.9 million, or $0.44 per diluted share, compared with GAAP net income of $2.9 million, or $0.09 per diluted share, for the fourth quarter of 2015.
First Quarter Non-GAAP Financial Results
First quarter
Non-GAAP net income was $5.7 million, or $0.18 per diluted share.
Non-GAAP results excluded items that had a net impact of increasing GAAP
income by $8.2 million, after tax, including a patent litigation
judgment, share-based compensation expense, litigation expense and
amortization of intangibles. In the 2015 fourth quarter, Non-GAAP net
income was $5.1 million or $0.16 per diluted share. The fourth quarter
Non-GAAP results excluded $2.2 million in expenses, after tax, that were
included in the GAAP results related to share-based compensation
expense, patent litigation expense and amortization of intangibles.
Balance Sheet
At March 31, 2016, cash and marketable
securities totaled $148.2 million and did not include the judgment from
the patent litigation. Accounts receivable increased $9.3 million to
$64.7 million, and inventory increased to $74.1 million as of March 31,
2016. Working capital increased to $206.7 million at March 31, 2016.
Conference Call
Rudolph Technologies will discuss its 2016
first quarter results and other matters on a conference call it is
hosting today at 4:30 PM EDT. To participate in the call, please dial
(888) 438-5524 (Domestic) or (719) 457-2727 (International), and
reference Conference ID # 7902946 at least five (5) minutes prior to the
scheduled start time. A live webcast will also be available on the
Company’s website at www.rudolphtech.com.
To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software.
There will be a replay of the conference call available from 8:00 pm EDT on May 2 until 11:59 pm EDT on May 9, 2016. To access the replay, please dial (888) 203-1112 (Domestic) or (719) 457-0820 (International) at any time during that period and use Conference ID #7902946.
A replay will also be available on the Company’s website at www.rudolphtech.com.
2016 Analyst Event (May 9, 2016 / New York Marriott Marquis Hotel)
Rudolph
Technologies will host its annual Analyst Event on May 9, 2016 at the
New York Marriott Marquis Hotel (New York City). The 2016 Analyst Event
will highlight Rudolph’s evolution as a front-end and back-end
value-added solutions provider by combining product services and
software to solve customer problems. We will discuss market trends and
industry challenges that Rudolph’s customers face, and the
differentiated solutions Rudolph affords them to accelerate their
process development. Speakers will be the General Managers from each of
the business units.
Financial analysts, institutional investors and industry analysts interested in attending the event in person should contact Rudolph’s Investor Relations for registration information: Guerrant Associates / Laura Guerrant-Oiye / Principal / 808.882.1467 / lguerrant@guerrantir.com.
Discussion of Non-GAAP Financial Measures
In this press
release, we have presented financial measures, which have not been
determined in accordance with generally accepted accounting principles
(GAAP) and are therefore non-GAAP financial measures. Non-GAAP financial
measures exclude the amortization of intangible assets, the impact of
patent litigation fees and judgment, and share-based compensation. We
believe that this presentation of non-GAAP financial measures allows
investors to better assess the Company’s operating performance by
comparing it to prior periods on a more consistent basis. We have
included a reconciliation of various non-GAAP financial measures to
those measures reported in accordance with GAAP. To that end, non-GAAP
financial measures should be evaluated in conjunction with, and are not
a substitute for, GAAP financial measures. Because our calculation of
non-GAAP financial measures may differ from similar measures used by
other companies, investors should be careful when comparing our non-GAAP
financial measures to those of other companies.
About Rudolph Technologies
Rudolph Technologies, Inc. is a
leader in the design, development, manufacture and support of defect
inspection, lithography, process control metrology, and process control
software used by semiconductor and advanced packaging device
manufacturers worldwide. Rudolph delivers comprehensive solutions
throughout the fab with its families of proprietary products that
provide critical yield-enhancing information, enabling microelectronic
device manufacturers to drive down costs and time to market of their
devices. Headquartered in Wilmington, Massachusetts, Rudolph supports
its customers with a worldwide sales and service organization.
Additional information can be found on the Company’s website at www.rudolphtech.com.
Forward Looking Statements
This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the “Act”) which include Rudolph’s
business momentum and future growth; the benefit to customers of
Rudolph’s products and customer service; Rudolph’s ability to both
deliver products and services consistent with our customers’ demands and
expectations and strengthen its market position; Rudolph’s expectations
regarding the semiconductor market outlook; as well as other matters
that are not purely historical data. Rudolph wishes to take advantage of
the “safe harbor” provided for by the Act and cautions that actual
results may differ materially from those projected as a result of
various factors, including risks and uncertainties, many of which are
beyond Rudolph’s control. Such factors include, but are not limited to,
the Company’s ability to leverage its resources to improve its position
in its core markets; its ability to weather difficult economic
environments; its ability to open new market opportunities and target
high-margin markets; the strength/weakness of the back-end and/or
front-end semiconductor market segments; and fluctuations in customer
capital spending. Additional information and considerations regarding
the risks faced by Rudolph are available in Rudolph’s Form 10-K report
for the year ended December 31, 2015 and other filings with the
Securities and Exchange Commission. As the forward-looking statements
are based on Rudolph’s current expectations, the Company cannot
guarantee any related future results, levels of activity, performance or
achievements. Rudolph does not assume any obligation to update the
forward-looking information contained in this press release.
| RUDOLPH TECHNOLOGIES, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) - (Unaudited) | ||||||||
| March 31, 2016 | December 31, 2015 | |||||||
| (Audited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and marketable securities | $ | 148,241 | $ | 161,478 | ||||
| Accounts receivable, net | 64,747 | 55,492 | ||||||
| Inventories | 74,143 | 71,490 | ||||||
| Prepaid and other assets | 21,519 | 8,137 | ||||||
| Total current assets | 308,650 | 296,597 | ||||||
| Net property, plant and equipment | 13,950 | 12,346 | ||||||
| Intangibles | 34,493 | 35,088 | ||||||
| Other assets | 35,616 | 35,532 | ||||||
| Total assets | $ | 392,709 | $ | 379,563 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 20,029 | $ | 21,466 | ||||
| Senior convertible notes | 58,863 | 57,846 | ||||||
| Other current liabilities | 23,037 | 20,019 | ||||||
| Total current liabilities | 101,929 | 99,331 | ||||||
| Other non-current liabilities | 10,269 | 9,554 | ||||||
| Total liabilities | 112,198 | 108,885 | ||||||
| Stockholders’ equity | 280,511 | 270,678 | ||||||
| Total liabilities and stockholders’ equity | $ | 392,709 | $ | 379,563 | ||||
| RUDOLPH TECHNOLOGIES, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (In thousands, except per share amounts) - (Unaudited) | |||||||||||||
| Three Months Ended | |||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||
| Revenues | $ | 54,362 | $ | 51,057 | $ | 52,570 | |||||||
| Cost of revenues | 25,317 | 24,413 | 23,604 | ||||||||||
| Gross profit | 29,045 | 26,644 | 28,966 | ||||||||||
| Operating expenses: | |||||||||||||
| Research and development | 12,446 | 10,334 | 10,360 | ||||||||||
| Selling, general and administrative | 9,499 | 9,856 | 12,974 | ||||||||||
| Amortization | 595 | 600 | 515 | ||||||||||
| Patent litigation judgment | (14,632 | ) | - | - | |||||||||
| Total operating expenses | 7,908 | 20,790 | 23,849 | ||||||||||
| Operating income | 21,137 | 5,854 | 5,117 | ||||||||||
| Interest expense, net | 1,469 | 1,481 | 1,382 | ||||||||||
| Other expense | 107 | 194 | 638 | ||||||||||
| Income before income taxes | 19,561 | 4,179 | 3,097 | ||||||||||
| Provision for income taxes | 5,622 | 1,296 | 1,249 | ||||||||||
| Net income | $ | 13,939 | $ | 2,883 | $ | 1,848 | |||||||
| Net income per share: | |||||||||||||
| Basic | $ | 0.45 | $ | 0.09 | $ | 0.06 | |||||||
| Diluted | $ | 0.44 | $ | 0.09 | $ | 0.06 | |||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 30,957 | 31,016 | 31,928 | ||||||||||
| Diluted | 31,654 | 32,075 | 32,549 | ||||||||||
| RUDOLPH TECHNOLOGIES, INC. | |||||||||||||||
| NON-GAAP FINANCIAL SUMMARY | |||||||||||||||
| (In thousands, except percentage and per share amounts) - (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||
| Revenue | $ | 54,362 | $ | 51,057 | $ | 52,570 | |||||||||
| Gross profit | $ | 29,102 | $ | 26,684 | $ | 29,021 | |||||||||
| Gross margin as percentage of revenue | 53.5 | % | 52.3 | % | 55.2 | % | |||||||||
| Operating expenses | $ | 19,532 | $ | 18,218 | $ | 18,524 | |||||||||
| Operating income | $ | 9,570 | $ | 8,466 | $ | 10,497 | |||||||||
| Operating margin as a percentage of revenue | 17.6 | % | 16.6 | % | 20.0 | % | |||||||||
| Net income | $ | 5,742 | $ | 5,085 | $ | 5,380 | |||||||||
| Net income per diluted share | $ | 0.18 | $ | 0.16 | $ | 0.17 | |||||||||
| RECONCILIATION OF U.S. GAAP GROSS PROFIT, | |||||||||||||||
| OPERATING EXPENSES AND OPERATING INCOME TO NON-GAAP | |||||||||||||||
| GROSS PROFIT, OPERATING EXPENSES AND OPERATING INCOME | |||||||||||||||
| (In thousands, except percentages) - (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||
| U.S. GAAP gross profit | $ | 29,045 | $ | 26,644 | $ | 28,966 | |||||||||
| Pre-tax non-GAAP items: | |||||||||||||||
| Share-based compensation expense | 57 | 40 | 55 | ||||||||||||
| Non-GAAP gross profit | $ | 29,102 | $ | 26,684 | $ | 29,021 | |||||||||
| U.S. GAAP gross margin as a percentage of revenue | 53.4 | % | 52.2 | % | 55.1 | % | |||||||||
| Non-GAAP gross margin as a percentage of revenue | 53.5 | % | 52.3 | % | 55.2 | % | |||||||||
| U.S. GAAP operating expenses | $ | 7,908 | $ | 20,790 | $ | 23,849 | |||||||||
| Pre-tax non-GAAP items: | |||||||||||||||
| Amortization of intangibles | 595 | 600 | 515 | ||||||||||||
| Litigation fees | 1,309 | 741 | 455 | ||||||||||||
| Patent litigation judgment | (14,632 | ) | — | — | |||||||||||
| Share-based compensation expense | 1,104 | 1,231 | 4,355 | ||||||||||||
| Non-GAAP operating expenses | 19,532 | 18,218 | 18,524 | ||||||||||||
| Non-GAAP operating income | $ | 9,570 | $ | 8,466 | $ | 10,497 | |||||||||
| GAAP operating margin as a percentage of revenue | 38.9 | % | 11.5 | % | 9.7 | % | |||||||||
| Non-GAAP operating margin as a percentage of revenue | 17.6 | % | 16.6 | % | 20.0 | % | |||||||||
| RUDOLPH TECHNOLOGIES, INC. | |||||||||||||||
| RECONCILIATION OF U.S. GAAP NET INCOME TO | |||||||||||||||
| NON-GAAP NET INCOME | |||||||||||||||
| (In thousands, except share and per share data) - (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||
| U.S. GAAP net income | $ | 13,939 | $ | 2,883 | $ | 1,848 | |||||||||
| Pre-tax non-GAAP items | |||||||||||||||
| Amortization of intangibles | 595 | 600 | 515 | ||||||||||||
| Litigation fees | 1,309 | 741 | 455 | ||||||||||||
| Patent litigation judgment | (14,632 | ) | — | — | |||||||||||
| Share-based compensation expense | 1,161 | 1,271 | 4,410 | ||||||||||||
| Net tax provision on non-GAAP items | 3,370 | (410 | ) | (1,848 | ) | ||||||||||
| Non-GAAP net income | $ | 5,742 | $ | 5,085 | $ | 5,380 | |||||||||
| Non-GAAP net income per diluted share | $ | 0.18 | $ | 0.16 | $ | 0.17 | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160502006061/en/
Contacts:
Investors:
Steven R. Roth,
973-448-4302
Senior Vice President & CFO
steven.roth@rudolphtech.com
or
Guerrant
Associates
Laura Guerrant-Oiye, 808-882-1467
Principal
lguerrant@guerrantir.com
or
Trade
Press:
Amy Shay, 952-259-1794
amy.shay@rudolphtech.com
