<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT of 1934
For Quarter Ended April 30, 1996 Commission File Number 0-10761
LTX CORPORATION
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2594045
------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
LTX Park at University Avenue, Westwood, Massachusetts 02090
------------------------------------------------------------
(address of principal executive offices and zip code)
Registrant's telephone number, including area code (617) 461-1000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at June 3, 1996
--------------------------------------- ---------------------------
Common Stock, par value $0.05 per share 34,831,781
<PAGE> 2
LTX CORPORATION
INDEX
Page Number
Part I. FINANCIAL INFORMATION
Consolidated Balance Sheet
April 30, 1996 and July 31, 1995 1
Consolidated Statement of Operations
Three months and nine months ended
April 30, 1996 and April 30, 1995 2
Consolidated Statement of Cash Flows
Nine months ended April 30, 1996
and April 30, 1995 3
Notes to Consolidated Financial Statements 4 - 5
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6 - 11
Part II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 12
SIGNATURES 13
<PAGE> 3
LTX CORPORATION
<TABLE>
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
<CAPTION>
April 30, July 31,
1996 1995
-------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 59,491 $ 29,183
Short-term investments 22,863 --
Accounts receivable, less allowances of $727 and $700 44,403 32,785
Inventories 59,797 47,101
Other current assets 5,692 4,929
-------- --------
Total current assets 192,246 113,998
Property and equipment, net 36,772 28,407
Other assets 3,942 3,512
-------- --------
$232,960 $145,917
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of
long-term liabilities $9,314 $8,816
Accounts payable 25,689 21,744
Accrued expenses and restructuring charges 12,636 14,099
Unearned service revenues and customer advances 8,592 7,157
-------- --------
Total current liabilities 56,231 51,816
Long-term liabilities, less current portion 21,008 21,386
Convertible subordinated debentures 7,308 7,308
Stockholders' equity 148,413 65,407
-------- --------
$232,960 $145,917
======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 1 -
<PAGE> 4
LTX CORPORATION
<TABLE>
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
<CAPTION>
Three Months Nine Months
Ended Ended
April 30, April 30,
------------------- ---------------------
1996 1995 1996 1995
------- ------- -------- --------
<S> <C> <C> <C> <C>
Net sales $71,979 $53,571 $199,191 $150,378
Cost of sales 42,852 34,880 120,587 98,357
------- ------- -------- --------
Gross margin 29,127 18,691 78,604 52,021
Engineering and product development expenses 5,950 5,077 16,941 14,514
Selling, general and administrative expenses 12,219 9,544 34,707 28,265
------- ------- -------- --------
Income from operations 10,958 4,070 26,956 9,242
Interest (income) expense, net (150) 1,055 (37) 3,429
------- ------- -------- --------
Income before income taxes 11,108 3,015 26,993 5,813
Provision for income taxes 517 104 1,111 199
------- ------- -------- --------
Net income $10,591 $ 2,911 $ 25,882 $ 5,614
======= ======= ======== ========
Primary and fully diluted net income per share $ 0.28 $ 0.10 $ 0.70 $ 0.20
Weighted average shares 37,702 29,038 36,614 28,631
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 2 -
<PAGE> 5
LTX CORPORATION
<TABLE>
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In thousands)
<CAPTION>
Nine Months
Ended
April 30,
----------------------
1996 1995
------- -------
<S> <C> <C>
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income $25,882 $ 5,614
Add (deduct) non-cash items:
Depreciation and amortization 7,923 7,100
Exchange (gain) loss (456) 290
Original issue discount amortization -- 197
(Increase) decrease in:
Accounts receivable (12,452) 3,834
Inventories (12,696) (3,173)
Other current assets (763) (408)
Other assets (22) (277)
Increase (decrease) in:
Accounts payable 4,173 2,892
Accrued expenses and restructuring charges (1,635) (4,042)
Unearned service revenues and customer advances 1,435 4,455
------- -------
Net cash provided by (used in) operating activities 11,389 16,482
------- -------
CASH USED IN INVESTING ACTIVITIES:
Purchases of held-to-maturity securities (22,863) --
Expenditures for property and equipment, net (16,190) (6,978)
------- -------
Net cash used in investing activities (39,053) (6,978)
------- -------
CASH PROVIDED BY FINANCING ACTIVITIES:
Proceeds from sale of common stock 55,797 --
Proceeds from stock purchase and option plans 1,212 790
Increase (decrease) in bank debt 1,850 (151)
Payments of long-term debt (306) (306)
------- -------
Net cash provided by financing activities 58,553 333
------- -------
Effect of exchange rate changes on cash (581) 564
------- -------
Net increase in cash and equivalents 30,308 10,401
Cash and equivalents at beginning of period 29,183 17,226
------- -------
Cash and equivalents at end of period $59,491 $27,627
======= =======
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid during the period for:
Interest $ 1,809 $ 4,005
Income taxes 608 262
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 3 -
<PAGE> 6
LTX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The accompanying financial statements have been prepared by LTX
Corporation ("the Company"), without audit, and reflect all adjustments
which, in the opinion of management, are necessary for a fair statement
of the results of the interim periods presented. Certain information and
footnote disclosures normally included in the annual financial
statements which are prepared in accordance with generally accepted
accounting principles have been condensed or omitted. Accordingly,
although the Company believes that the disclosures are adequate to make
the information presented not misleading, the financial statements
should be read in conjunction with the footnotes contained in the
Company's Annual Report on Form 10-K.
2. The Company considers all highly liquid investments which are readily
convertible to cash and which have original maturity dates of three
months or less to be cash equivalents. Cash equivalents consist
primarily of repurchase agreements and commercial paper.
Effective August 1, 1995 the Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities" (FAS 115). In accordance with FAS 115,
investments in debt securities are classified as trading,
available-for-sale or held-to-maturity. Investments are classified as
held-to-maturity when the Company has the positive intent and ability to
hold those securities to maturity. Held-to-maturity securities are
stated at amortized cost with premiums and discounts amortized to
interest income over the life of the investment.
All of the Company's short-term investments are considered as
held-to-maturity and consist primarily of commercial paper and other
corporate debt securities. The fair market value of cash equivalents and
short term investments is substantially equal to the amortized cost.
3. Revenues from product sales are recognized at the time units are
shipped. Service revenues are recognized over the applicable contractual
periods or as services are performed. Revenues from engineering
contracts are recognized over the contract period on a percentage of
completion basis.
<TABLE>
4. Inventories are stated at the lower of cost (first-in, first-out) or
market and include material, labor and manufacturing overhead.
Inventories consisted of the following at:
<CAPTION>
April 30, July 31,
1996 1995
------- -------
(In thousands)
<S> <C> <C>
Raw materials $17,783 $12,388
Work-in-process 30,118 24,680
Finished goods 11,896 10,033
------- -------
$59,797 $47,101
======= =======
</TABLE>
- 4 -
<PAGE> 7
LTX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
<TABLE>
5 . Interest expense and income were as follows:
<CAPTION>
Three Months Nine Months
Ended Ended
April 30, April 30,
----------------- ------------------
1996 1995 1996 1995
----- ------ ------ ------
(In thousands)
<S> <C> <C> <C> <C>
Expense $ 651 $1,168 $1,916 $3,743
Income (801) (113) (1,953) (314)
----- ------ ------ ------
Interest (income) expense, net $(150) $1,055 $ (37) $3,429
===== ====== ====== ======
</TABLE>
6. Primary and fully diluted net income per share is based on the
weighted average number of shares of common stock and common stock
equivalents outstanding. Common stock equivalents include shares
issuable under stock option plans and warrants to purchase shares. The
Company's Convertible Subordinated Debentures are not common stock
equivalents.
-5-
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
<TABLE>
The following table sets forth for the periods indicated the principal
items included in the Consolidated Statement of Operations as percentages of
net sales.
<CAPTION>
Percentage
Percentage of Net Sales Increase/(Decrease)
------------------------------------- ------------------------
Three Months Nine Months Three Months Nine Months
Ended Ended
April 30, April 30, 1996 1996
-------------- --------------- Over Over
1996 1995 1996 1995 1995 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0% 34.4% 32.5%
Cost of sales 59.5 65.1 60.5 65.4 22.9 22.6
----- ----- ----- -----
Gross margin 40.5 34.9 39.5 34.6 55.8 51.1
Engineering and product
development expenses 8.3 9.5 8.5 9.7 17.2 16.7
Selling, general and
administrative expenses 17.0 17.8 17.5 18.8 28.0 22.8
----- ----- ----- -----
Income from operations 15.2 7.6 13.5 6.1 169.2 191.7
Interest (income) expense, net (0.2) 2.0 (0.1) 2.3 N/M N/M
----- ----- ----- -----
Income before income
taxes 15.4 5.6 13.6 3.8 268.4 364.4
Provision for income taxes 0.7 0.2 0.6 0.1 397.1 458.3
----- ----- ----- -----
Net income 14.7% 5.4% 13.0% 3.7% 263.8% 361.0%
===== ==== ===== ====
</TABLE>
- 6 -
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net sales in the three months ended April 30, 1996 were $72.0 million
compared to $53.6 million in the three months ended April 30, 1995, an increase
of 34.4%. Net sales in the nine months ended April 30, 1996 were $199.2 million
compared to $150.4 million in the nine months ended April 30, 1995, an increase
of 32.5%. Sales of the Company's mixed signal and digital products, as well as
service revenues, were all higher, in both the three month and nine month
periods ended April 30, 1996, than the three months and nine months ended April
30, 1995. Sales of the Company's digital products were particularly strong in
the nine months ended April 30, 1996, increasing by over 70% over the nine
months ended April 30, 1995.
The Company has recently been receiving certain indications that customers
may defer, reduce, reschedule or seek to cancel certain orders, perhaps
reflecting a downtrend in the market segments of the semiconductor industry in
which the Company participates. This development could adversely affect the
Company's results of operations for the three months ending July 31, 1996 or
future periods.
The gross profit margin was 40.5% of net sales in the three months ended April
30, 1996 compared to 34.9% in the three months ended April 30, 1995. For the
nine months ended April 30, 1996, the gross profit margin was 39.5% of net sales
compared to 34.6% for the nine months ended April 30, 1995. The improvement in
the gross profit margin was a result of lower fixed manufacturing costs on the
higher level of sales year-to-year, the benefit from a price increase and cost
reduction savings for the Synchro mixed signal test system, along with higher
average selling prices for its digital test systems.
Engineering and product development expenses were $6.0 million, or 8.3% of net
sales, in the three months ended April 30, 1996 compared to $5.1 million, or
9.5% of net sales, in the three months ended April 30, 1995. In the nine months
ended April 30, 1996, engineering and product development expenses were $16.9
million, or 8.5% of net sales, compared to $14.5 million, or 9.7% of net sales,
in the nine months ended April 30, 1995. The increase in engineering and product
development expenses largely reflects additional resources for the Company's
continuing product development programs for its Delta Series test systems and
continuing enhancements for its Synchro test systems.
Selling, general and administrative expenses were $12.2 million, or 17.0% of
net sales, in the three months ended April 30, 1996, compared to $9.5 million,
or 17.8% of net sales, in the three months ended April 30, 1995. In the nine
months ended April 30, 1996, selling, general and administrative expenses were
$34.7 million, or 17.5% of net sales, compared to $28.3 million, or 18.8% of net
sales, in the nine months ended April 30, 1995. The increase in selling, general
and administrative expenses primarily reflects the addition of new employee
benefit programs in fiscal-year 1996 and added sales commissions and travel
costs on the higher level of sales year-to-year.
Net interest income was $0.2 million in the three months ended April 30, 1996
compared to net interest expense of $1.1 million in the three months ended April
30, 1995. In the nine months ended April 30, 1996, net interest income was $0.1
million compared to net interest expense of $3.4 million in the nine months
ended April 30, 1995. The reduction in interest expense was primarily a result
of savings from the conversion of the Company's 13 1/2% Convertible
Subordinated Debentures Due 2011 into common stock in July 1995. The increase
in interest income was primarily a result of income generated on the proceeds
from the sale of the Company's common stock in October 1995.
The tax provision of $0.5 million in the three months ended April 30, 1996,
and $1.1 million for the nine months ended April 30, 1996, reflected certain
state and foreign tax provisions. The Company is in a net operating loss
carryforward position in most tax jurisdictions. It is the Company's current
expectation that its federal net operating loss carryforward position will be
fully utilized by the end of fiscal 1996.
7
<PAGE> 10
The Company had net income of $10.6 million, or $0.28 per share, in the three
months ended April 30, 1996, compared to net income of $2.9 million, or $0.10
per share, in the three months ended April 30, 1995. In the nine months ended
April 30, 1996, the Company had net income of $25.9 million, or $0.70 per share,
compared to net income of $5.6 million, or $0.20 per share, in the nine months
ended April 30, 1995. The significant improvement in profitability was a result
of the combination of higher sales levels, the improvement in the gross profit
margin and the reduction in operating expenses as a percentage of net sales.
LIQUIDITY AND CAPITAL RESOURCES
Cash and equivalents were $59.5 million at April 30, 1996 compared to $29.2
million at July 31, 1995. In addition, the Company had $22.9 million in
short-term investments at April 30,1996 compared to none at July 31, 1995. The
increase in cash and equivalents, together with short-term investments, of $53.2
million was largely a result of the $55.8 million in net proceeds from the sale
of 5,250,000 shares of common stock in October 1995. The Company generated $11.4
million in net cash from operating activities and used $16.2 million of net cash
for property and equipment additions during the nine months ended April 30,
1996.
The positive net cash flow from operating activities was a result of the net
income for the period of $25.9 million and non-cash depreciation charges of
$7.9 million, offset by an increase in working capital requirements in the
period, primarily for accounts receivables and inventories. The increase of
$12.5 million in accounts receivable relates to the higher level of shipments in
the nine months ended April 30, 1996, together with the effect of increased
shipments to international customers with longer payment cycles. The increase of
$12.7 million in inventories during the nine months ended April 30, 1996
primarily reflected the requirement to support the higher sales levels. The
increase in unearned service revenues and customer advances during the nine
months ended April 30, 1996 was a result of advance payments received from
customers for future equipment deliveries. As of April 30, 1996, the Company had
paid a significant portion of the cash requirements relating to the
restructuring reserve of $6.1 million that existed at July 31, 1995. At April
30, 1996, the Company had working capital of $136.0 million and a ratio of
current assets to current liabilities of 3.4 to 1.0.
Net additions to property and equipment of $16.2 million in the nine month
period exceeded depreciation charges of $7.9 million. Property and equipment
additions during the period were primarily for product development and customer
support activities, as well as leasehold improvements to the Company's facility
in Massachusetts.
The Company's Japanese subsidiary had bank borrowings of $9.2 million at April
30, 1996, compared to $8.5 million at July 31, 1995. The Company renewed its
$5.0 million line of credit, on an unsecured basis, and obtained a $2.0 million
line of credit for equipment financing with its domestic bank effective December
1995. The Company had no borrowings outstanding under its domestic bank line or
equipment line at April 30, 1996 or its bank line at July 31, 1995.
Management believes that the Company has sufficient resources to meet its near
term cash requirements. These resources include existing cash and short-term
investment balances, borrowing availability under domestic and Japanese bank
lines, and future cash flows from operations. The foregoing statements are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 which involve risks and uncertainties including,
but not limited to, the effect of economic conditions, conditions in the
semiconductor industry, the results of financing efforts and the other factors
set forth below under the caption "Forward-looking Statements".
8
<PAGE> 11
FORWARD-LOOKING STATEMENTS
The Company may from time to time make disclosures which contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve risks and
uncertainties including, but not limited to, the following important factors
that could cause actual results to differ materially from those in the
forward-looking statement:
Cyclicality of Semiconductor Industry
- -------------------------------------
The Company's business is largely dependent upon the capital expenditures of
semiconductor manufacturers. The semiconductor industry is highly cyclical and
has historically experienced recurring periods of oversupply, which often have
had a severely detrimental effect on such industry's demand for test equipment
and could cause cancellations, reschedulings or reductions of customer orders.
No assurance can be given that the Company's business and results of operations
will not be materially adversely affected if downturns or changes in any
particular market segments of the semiconductor industry occur in the future,
especially if all of the market segments in which the Company participates
experience downturns at the same time.
Fluctuations in Sales and Operating Results
- -------------------------------------------
Given the relatively large selling prices of the Company's test systems, sales
of a limited number of test systems account for a substantial portion of sales
in any particular fiscal quarter and a small number of transactions could
therefore have a significant impact on sales and gross margins for that fiscal
quarter. The Company's sales and operating results have fluctuated and could in
the future fluctuate significantly from period to period, including from one
quarterly period to another, due to a combination of factors, including the
cyclical demand of the semiconductor industry, order cancellations or
reschedulings by customers, the large selling prices of the Company's test
systems (which typically result in a long selling process), competitive pricing
pressures and the mix between and configuration of digital and linear/mixed
signal and discrete component test systems sold in a particular period. The
impact of these and other factors on the Company's sales and operating results
in any future period cannot be forecast with accuracy. In addition, the need
for continued investment in research and development, for capital equipment
requirements and for extensive worldwide customer support capability results in
significant fixed costs which would be difficult to reduce in the event that
the Company does not meet its sales objectives.
Importance of New Product Introductions
- ---------------------------------------
The semiconductor test equipment ("STE") market is subject to rapid
technological change and new product introductions, as well as advancing
industry standards. The development of increasingly complex semiconductors and
the utilization of semiconductors in a broader spectrum of products has driven
the need for more advanced test systems to test such devices at an acceptable
cost. The Company's ability to remain competitive in the digital, linear and
mixed signal integrated circuit ("IC") and discrete component markets will
depend upon its ability to successfully enhance existing test systems and
develop new generations of test systems and to introduce these new products on a
timely and cost-effective basis. The Company also has to manufacture its
products in volume at a competitive price and on a timely basis to enable
customers to integrate them into their operations as they begin to produce their
next generation of semiconductors. The Company's failure to have a competitive
test system available when required by a semiconductor manufacturer would make
it substantially more difficult for the Company to sell test systems to that
manufacturer for a number of years. The Company has in the past experienced
delays in introducing certain of its products and enhancements, and there can be
no assurance that it will not encounter technical or other difficulties that
could in the future delay the introduction of new products or enhancements. If
new products have reliability or functionality problems, then reduced,
cancelled or rescheduled orders, higher manufacturing costs, delays in
collecting accounts receivable and additional warranty expense may result,
which could reduce gross margins on new
9
<PAGE> 12
product sales and otherwise materially adversely affect the Company's business
and results of operations. The Company's newly introduced Delta Series of
products is subject to the risks associated with new product introductions,
including the risk that reliability or functionality problems could increase
expenses and reduce gross margins on new product sales. Furthermore,
announcements by the Company or its competitors of new products could cause
customers to defer or forego purchases of the Company's existing products,
which would also adversely affect the Company's business and results of
operations. There can be no assurance that the Company will be successful in
the introduction and volume manufacture of its new products, that such
introduction will coincide with the development by semiconductor manufacturers
of their next generation semiconductors or that such products will satisfy
customer needs or achieve market acceptance. The failure to do so could
materially adversely affect the Company's business and results of operations.
Highly Competitive Industry
- ---------------------------
The STE industry is highly competitive in all areas of the world. Most of the
Company's major competitors have substantially greater financial resources and
some have more extensive engineering, manufacturing, marketing and customer
support capabilities than the Company. The Company expects its competitors to
continue to improve the performance of their current products and to introduce
new products with improved price and performance characteristics. The Company
principally competes on the basis of performance, cost of test, reliability,
customer service, applications support, price and ability to deliver its
products on a timely basis. New product introductions by the Company's
competitors could cause a decline in sales or loss of market acceptance of the
Company's existing products and could prevent the successful introduction of the
Company's new products. In addition, increased competitive pressure could lead
to intensified price-based competition, resulting in lower prices and adversely
affecting the Company's business and results of operations. The Company believes
that to remain competitive it will require significant financial resources for
investment in new product development and for the maintenance of customer
support centers worldwide. There can be no assurance that the Company will be
able to compete successfully in the future.
Customer Concentration
- ----------------------
The loss of a major customer or reduction in, or rescheduling or cancellation
of, orders by major customers, including reductions, cancellations or
reschedulings due to market or competitive conditions in the semiconductor
industry, has had in the past and would have in the future an adverse effect on
the Company's business and results of operations. In addition, the Company's
ability to increase its sales will depend in part upon its ability to obtain
orders from new customers. The loss of one or more of its top ten customers
could have a material adverse effect on the Company's business and results of
operations.
Dependence upon Key Personnel
- -----------------------------
The Company's success is dependent upon certain key management and technical
personnel. There is intense competition for a limited number of qualified
employees among companies in the semiconductor test equipment industry, and the
loss of certain of the Company's employees or an inability to attract and
motivate highly skilled employees could adversely affect its business.
Dependence upon Key Suppliers
- -----------------------------
Most of the components for the Company's products are available from a number
of different suppliers; however, certain components are purchased from a single
supplier. Any disruption or termination of supply of components, particularly
single source components, could have an adverse effect on the Company's business
and results of operations.
10
<PAGE> 13
Acquisitions
- ------------
The Company from time to time may acquire technologies, product lines or
businesses that are complementary to those of the Company. Although the Company
believes that integration of acquired technologies, product lines and businesses
will result in long term growth and profitability, there can be no assurance
that the Company will be able to successfully negotiate finance or integrate
such acquired technologies, product lines or businesses. Furthermore, the
integration of an acquired company or business may cause a diversion of
management time and resources. There can be no assurance that a given
acquisition, if consummated, would not materially adversely affect the Company.
Proprietary Rights
- ------------------
The Company's future success depends in part upon its proprietary technology.
Although the Company attempts to protect its proprietary technology through a
combination of contract provisions, trade secrets, copyrights and patents, it
believes that its future success depends more upon its engineering,
manufacturing, marketing and service skills. There can be no assurance that the
steps taken by the Company to protect its proprietary rights will be adequate to
prevent misappropriation of its technology or the independent development by
others of similar technology. Although there are no pending actions against the
Company regarding any patents, no assurance can be given that infringement
claims by third parties will not have a material adverse effect on the Company's
business and results of operations.
11
<PAGE> 14
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits 27 - Financial Data Schedules
(b) There were no reports on Form 8-K filed during the three months
ended April 30, 1996.
- 12 -
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LTX Corporation
Date: June 12, 1996 By: /s/ Roger W. Blethen
------------- ------------------------------
Roger W. Blethen
President
Date: June 12, 1996 By: /s/ Martin S. Francis
------------- ------------------------------
Martin S. Francis
President
Date: June 12, 1996 By: /s/ John J. Arcari
------------- ------------------------------
John J. Arcari
Treasurer
Chief Financial Officer
(Principal Financial Officer)
Date: June 12, 1996 By: /s/ Glenn W. Meloni
------------- ------------------------------
Glenn W. Meloni
Controller
(Principal Accounting Officer)
- 13 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-START> AUG-01-1995
<PERIOD-END> APR-30-1996
<CASH> 59,491
<SECURITIES> 22,863
<RECEIVABLES> 45,130
<ALLOWANCES> 727
<INVENTORY> 59,797
<CURRENT-ASSETS> 192,246
<PP&E> 96,114
<DEPRECIATION> 59,342
<TOTAL-ASSETS> 232,960
<CURRENT-LIABILITIES> 56,231
<BONDS> 28,003
<COMMON> 1,755
0
0
<OTHER-SE> 146,658
<TOTAL-LIABILITY-AND-EQUITY> 232,960
<SALES> 179,316
<TOTAL-REVENUES> 199,191
<CGS> 111,189
<TOTAL-COSTS> 120,587
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,916
<INCOME-PRETAX> 26,993
<INCOME-TAX> 1,111
<INCOME-CONTINUING> 25,882
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 25,882
<EPS-PRIMARY> 0.70
<EPS-DILUTED> 0.70
</TABLE>
