LTXCredence Corp. (LTXC, Financial) filed Quarterly Report for the period ended 2012-04-30.
Ltx-credence Cp has a market cap of $324.8 million; its shares were traded at around $6.77 with and P/S ratio of 1.3.
Selling, general and administrative expenses. Selling, general and administrative expenses were $8.8 million, or 28.6% of net sales, in the three months ended April 30, 2012, as compared to $11.8 million, or 20.0% of net sales, in the same quarter of the prior year. For the nine months ended April 30, 2012, selling, general and administrative expenses were $26.5 million or 29.9% of net sales as compared to $37.6 million or 20.1% of net sales for the nine months ended April 30, 2011. The decrease for the nine months ended April 30, 2012 was primarily driven by a decrease in variable expenses that are tied to revenue and net income, such as commissions and profit share expense as a result of the aforementioned decrease in revenue and profits. Also, the three and nine month periods ending April 30, 2011 included merger-related fees that did not recur in the three and nine months ending April 30, 2012.
Restructuring. Restructuring expense was $0.7 million or 2.4% of net sales and $0.9 million or 1.0% of net sales for the three and nine months ended April 20, 2012, respectively, as compared to $0.2 million or 0.4% of net sales and $0.4 million or 0.2% of net sales for the same periods in the prior year. During the nine months ending April 30, 2012, we reduced headcount in our global field service and applications engineering groups. We also vacated two facilities in North America. The restructuring expense of $0.9 million recorded during this period includes severance and other post-employment benefits associated with these headcount reductions, as well as an early termination fee incurred upon vacating one of the facilities, and our remaining rent obligations under these leases.
Net income (loss). Net loss was $(6.6) million, or $(0.14) per basic and diluted share, in the three months ended April 30, 2012, as compared to net income of $23.6 million, or $0.48 per basic and $0.47 per diluted share, in the same quarter of the prior year. For the nine months ended April 30, 2012, our net loss was $(21.2) million, or $(0.43) per basic and diluted share, as compared to net income of $48.0 million or $0.97 per basic and $0.96 per diluted share for the nine months ended April 30, 2011, as a result of the aforementioned decrease in revenue and profits.
We had $66.1 million in net cash used in investing activities for the nine months ended April 30, 2012 as compared to net cash used in investing activities of $17.2 million for the nine months ended April 30, 2011. The net cash used in investing activities for the nine months ended April 30, 2012 was primarily related to $112.2 million of purchases of available-for-sale securities, $10.7 million in purchases of held-to-maturity securities, and $2.5 million of purchases of property and equipment, offset by $53.5 million of proceeds from sales and maturities of available-for-sale securities and $5.8 million of proceeds from sales and maturities of held-to-maturity securities. Approximately $53.0 million of the $122.9 million of securities purchased relates to a transfer of money market funds into longer duration marketable securities to take advantage of more favorable investment yields. The net cash used in investing activities for the nine months ended April 30, 2011 was primarily related to $20.3 million of purchases of available-for-sale securities and $15.2 million of purchases of held-to-maturity securities, $3.7 million of purchases of property and equipment, offset by $18.8 million of proceeds from sales and maturities of available-for-sale securities, and $3.2 million of proceeds from sales and maturities of held-to-maturity securities.
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Ltx-credence Cp has a market cap of $324.8 million; its shares were traded at around $6.77 with and P/S ratio of 1.3.
Highlight of Business Operations:
Gross profit. Gross profit was $15.8 million or 51.3% of net sales in the three months ended April 30, 2012, as compared to $36.5 million or 62.2% of net sales in the same quarter of the prior year. For the nine months ended April 30, 2012, gross profit was $44.7 million or 50.4% of net sales as compared to $115.1 million or 61.6% of net sales for the nine months ended April 30, 2011. The decrease in aggregate gross profit for the three and nine months ended April 30, 2012 as compared to April 30, 2011 was in line with our target gross margin model at this revenue level, and was driven primarily by the approximately 53% reduction in revenue, partially offset by lower variable costs.Selling, general and administrative expenses. Selling, general and administrative expenses were $8.8 million, or 28.6% of net sales, in the three months ended April 30, 2012, as compared to $11.8 million, or 20.0% of net sales, in the same quarter of the prior year. For the nine months ended April 30, 2012, selling, general and administrative expenses were $26.5 million or 29.9% of net sales as compared to $37.6 million or 20.1% of net sales for the nine months ended April 30, 2011. The decrease for the nine months ended April 30, 2012 was primarily driven by a decrease in variable expenses that are tied to revenue and net income, such as commissions and profit share expense as a result of the aforementioned decrease in revenue and profits. Also, the three and nine month periods ending April 30, 2011 included merger-related fees that did not recur in the three and nine months ending April 30, 2012.
Restructuring. Restructuring expense was $0.7 million or 2.4% of net sales and $0.9 million or 1.0% of net sales for the three and nine months ended April 20, 2012, respectively, as compared to $0.2 million or 0.4% of net sales and $0.4 million or 0.2% of net sales for the same periods in the prior year. During the nine months ending April 30, 2012, we reduced headcount in our global field service and applications engineering groups. We also vacated two facilities in North America. The restructuring expense of $0.9 million recorded during this period includes severance and other post-employment benefits associated with these headcount reductions, as well as an early termination fee incurred upon vacating one of the facilities, and our remaining rent obligations under these leases.
Net income (loss). Net loss was $(6.6) million, or $(0.14) per basic and diluted share, in the three months ended April 30, 2012, as compared to net income of $23.6 million, or $0.48 per basic and $0.47 per diluted share, in the same quarter of the prior year. For the nine months ended April 30, 2012, our net loss was $(21.2) million, or $(0.43) per basic and diluted share, as compared to net income of $48.0 million or $0.97 per basic and $0.96 per diluted share for the nine months ended April 30, 2011, as a result of the aforementioned decrease in revenue and profits.
We had $66.1 million in net cash used in investing activities for the nine months ended April 30, 2012 as compared to net cash used in investing activities of $17.2 million for the nine months ended April 30, 2011. The net cash used in investing activities for the nine months ended April 30, 2012 was primarily related to $112.2 million of purchases of available-for-sale securities, $10.7 million in purchases of held-to-maturity securities, and $2.5 million of purchases of property and equipment, offset by $53.5 million of proceeds from sales and maturities of available-for-sale securities and $5.8 million of proceeds from sales and maturities of held-to-maturity securities. Approximately $53.0 million of the $122.9 million of securities purchased relates to a transfer of money market funds into longer duration marketable securities to take advantage of more favorable investment yields. The net cash used in investing activities for the nine months ended April 30, 2011 was primarily related to $20.3 million of purchases of available-for-sale securities and $15.2 million of purchases of held-to-maturity securities, $3.7 million of purchases of property and equipment, offset by $18.8 million of proceeds from sales and maturities of available-for-sale securities, and $3.2 million of proceeds from sales and maturities of held-to-maturity securities.
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