BUFFALO GROVE, Illinois, April 29 /PRNewswire/ --
- Net Revenue of US$33.1 million; Net Income of US$0.26 per Diluted Common Share
Eagle Test Systems, Inc. (Nasdaq: EGLT), a provider of automated test equipment solutions for high-performance analog, mixed-signal and radio frequency (RF) semiconductors, announced financial results for its second fiscal quarter ended March 31, 2008.
Operating Results
Net revenue was US$33.1 million for the second fiscal quarter ended March 31, 2008, an increase of US$11.8 million, or 55.5%, compared to net revenue of US$21.3 million for the same period in the prior fiscal year. Sequentially, net revenues increased US$2.1 million or 6.9% from the December 2007 quarter. Gross margin for the second fiscal quarter was 62.0% of net revenue, compared to 60.5% of net revenue for the same period in the prior fiscal year, and 61.5% for our December 2007 quarter. Operating income for the second fiscal quarter was US$8.0 million, compared to US$2.0 million in operating income for the same period in the prior fiscal year, and US$6.9 million for our December 2007 quarter.
Net income for the second fiscal quarter was US$6.0 million or US$0.26 per fully diluted common share, compared to net income of US$1.8 million or US$0.08 per fully diluted common share for the same period in the prior fiscal year, and net income of US$5.3 million or US$0.23 per fully diluted common share for the December 2007 quarter.
Net revenue was US$64.1 million for the six months ended March 31, 2008, compared to net revenue of US$45.3 million for the same period in the prior fiscal year. Net income was US$11.3 million, an increase of US$5.6 million over net income of US$5.7 million in the comparable period in the prior fiscal year. The Company reported income per fully diluted common share of US$0.49 for the six months ended March 31, 2008, compared to US$0.25 for the same period in the prior fiscal year.
"I am very pleased with our strong second quarter performance and our ability to continue delivering positive earnings for our shareholders," stated Len Foxman - Eagle CEO. "These results are indicative of the success we can achieve by remaining focused on delivering profitable results and leveraging our strong business model."
Outlook
The Company estimates net revenue will be between US$30.0 and US$34.0 million in the third fiscal quarter ending June 30, 2008. The Company estimates earnings per share will be between US$0.19 and US$0.26 based on an estimated 23,200,000 fully diluted common shares.
Earnings Conference Call
Eagle Test Systems will host its earnings call today at 6:00 p.m. Eastern Time/ 5:00 p.m. Central Time for analysts, stockholders, investors and the public.
Participants can join for the voice portion of the call by dialing +1-866-831-6224 (domestic calls) or +1-617-213-8853 (international calls) starting at 5:45 p.m. Eastern time/ 4:45 p.m. Central time and enter the passcode 15220963; you will be asked for your name and firm's name. The live conference call will also be available via web cast and accessible along with our earnings release the day of the call through the Investor Relations section of our website at http://www.eagletest.com.
The conference call will be available for replay from approximately 1 hour after completion of the conference call until May 13, 2008. To hear a replay of the call, please dial +1-888-286-8010 (domestic calls) or +1-617-801-6888 (international calls) and enter the passcode 60674706.
About Eagle Test Systems, Inc.
Eagle Test designs, manufactures, sells and services high performance automated test equipment for the semiconductor industry. The company's products are used to test analog, mixed-signal and radio frequency (RF) semiconductors that are used in products such as digital cameras, MP3 players, automotive electronics, cellular telephones, computers and peripherals. The company was founded in 1976 and has offices located throughout the world in Asia, North America and Europe, with corporate headquarters in Buffalo Grove, Illinois. For more information, please visit www.eagletest.com.
Safe Harbor
Certain statements contained in the press release regarding matters that are not historical facts, including statements regarding our projections for revenue, earnings per share and weighted average diluted common shares for the third fiscal quarter ending June 30, 2008 and statements regarding winning new customers, penetrating existing customers with new products with parallel test capabilities, and our business focus in the future are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements involve important factors that could cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Such important factors involve risks and uncertainties, including, but not limited to, the risk associated with the highly cyclical nature of the semiconductor market; unanticipated challenges in assessing business conditions and the overall market; the lack of visibility with regard to future business conditions for our Company and the rapid nature of changes in industry business conditions; the risk of a loss or reduction of orders from one or more customers among which our business is concentrated; the difficulty in obtaining new customers because of the high switching cost; competition and pricing pressures; the decision by customers to cancel or defer orders that previously had been accepted; delays or shortages in an adequate supply of raw materials; insufficient or excess inventory; our ability to develop new and enhanced products; the ability to manage our growth; the ability to attract and retain key employees; prolonged disruption in the operations of our single manufacturing facility; economic, political and other risks associated with international sales and operations; risks related to our intellectual property; risks related to our need to achieve and maintain effective internal controls over financial reporting; risk related to unanticipated impact of stock based compensation and the tax effects there under on our expenses in any period pursuant to FASB Statement 123(R) and other factors that are detailed from time to time in reports filed by Eagle Test Systems, Inc. with the Securities and Exchange Commission, including risks and uncertainties discussed under "Risk Factors" in our Form 10-K, filed with the Securities and Exchange Commission on December 6, 2007. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.
Company Contact Stephen J. Hawrysz Chief Financial Officer Eagle Test Systems, Inc. +1-847-327-1033 (All amounts in U.S. dollars unless otherwise noted) Financial Tables to Follow Eagle Test Systems, Inc Financial Results (UNAUDITED) (all dollars in 000's except share and per share data) Three Months ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 Net Revenue $33,134 $21,308 $64,134 $45,344 COGS 12,594 8,420 24,533 18,296 Gross margin 20,540 12,888 39,601 27,048 Margin % 62.0% 60.5% 61.7% 59.7% SG&A 9,213 8,668 18,505 16,083 R&D 3,293 2,208 6,202 4,362 Total operating expense 12,506 10,876 24,707 20,445 Operating income 8,034 2,012 14,894 6,603 % of Revenue 24.2% 9.4% 23.2% 14.6% Interest expense 3 235 8 251 Other (income) expense (1) (1,071) (1,212) (2,219) (2,476) Income before taxes 9,102 2,989 17,105 8,828 Tax expense 3,108 1,150 5,785 3,123 Net income $5,994 $1,839 $11,320 $5,705 18.1% 8.6% 17.7% 12.6% Earnings per common share Basic $0.26 $0.08 $0.49 $0.25 Fully diluted $0.26 $0.08 $0.49 $0.25 Shares Basic 22,974,177 22,895,803 22,974,177 22,864,818 Fully diluted 23,096,408 23,122,421 23,109,083 23,099,357 FOOTNOTES: (1)Other (income) expense primarily consists of interest income earned on cash and marketable securities. March 31, September 30, Balance sheet Data (Unaudited) 2008 2007 Cash & investments $76,891 $112,517 Accounts receivables 24,047 18,238 Inventories 36,056 22,233 Current assets 143,617 161,255 Long-term investments 35,858 - Total assets $193,067 $172,570 Accounts payable $13,667 $6,079 Deferred revenue 7,457 6,441 Current liabilities 29,480 19,222 Long-term liabilities 474 1,458 Total liabilities & stockholders equity $193,067 $172,570 End of Table
Web site: http://www.eagletest.com
Stephen J. Hawrysz, Chief Financial Officer of Eagle Test Systems, Inc., +1-847-327-1033
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