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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
MAY 19, 1998
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Date of Report (Date of earliest event reported)
CREDENCE SYSTEMS CORPORATION
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(Exact name of registrant as specified in charter)
DELAWARE 0-22366 94-287849
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
215 FOURIER AVENUE, FREMONT, CALIFORNIA 94539
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 657-7400
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N/A
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(Former name or former address, if changed since last report.)
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Item 5. Other Events.
On May 19, 1998, the Registrant issued a press release reporting the
financial results for its second fiscal quarter ended April 30, 1998.
Item 7. Exhibits.
A copy of the Registrant's May 19, 1998 press release announcing its
financial results for the second fiscal quarter ended April 30, 1998 is
attached hereto as Exhibit 99.1 and incorporated herein by reference.
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SIGNATURES
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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 hereunto duly authorized.
(Registrant)
Date: May 19, 1998 By /s/ Dennis Wolf
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Name: Dennis Wolf
Title: Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit No. Description Page
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99.1 Press Release disseminated May 19, 1998
regarding the Registrant's financial results
for the second fiscal quarter ended
April 30, 1998.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE NEWS RELEASE
For More Information Contact:
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Dr. Wilmer Bottoms | Dennis Wolf
Chief Executive Officer | Chief Financial Officer
(510) 657-7400 | (510) 657-7400
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CREDENCE SYSTEMS REPORTS RESULTS FOR FISCAL 1998 SECOND QUARTER
FREMONT, Calif. -- May 19, 1998 -- Credence Systems Corporation
(Nasdaq NMS: CMOS) today reported results for its second quarter ended April
30, 1998. Net sales for the second quarter of fiscal 1998 were $74.7 million,
a decrease of 9 percent over the net sales of $82.4 million in the first
quarter of fiscal 1998 and an increase of 72 percent over the net sales of
$43.4 million in the second quarter of fiscal 1997. Net income for the second
quarter of fiscal 1998 was $8.8 million, or $0.40 per diluted share, a
decrease of 4 percent from the $9.2 million, or $0.41 per diluted share,
recorded in the first quarter of fiscal 1998, and an increase of 167 percent
from the $3.3 million or $0.15 per diluted share recorded in the second
quarter of fiscal 1997.
Credence's chairman and chief executive officer, Dr. Wilmer Bottoms,
said, "Consistent with the rest of the industry, we experienced reduced
revenue during our second fiscal quarter and we anticipate that such trend
will continue to materially adversely affect our results of operations through
at least the third fiscal quarter. Although we were disappointed with this
reduction, we were pleased with the improvement in our overall operating
performance. Our operating income of 17.2 percent was the highest in seven
consecutive quarters. We have managed through several industry slowdowns in
the past and will continue to carefully manage our expenses in the current
environment of declining revenues until we have visibility of a turnaround,"
stated Dr. Bottoms.
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Dr. Bottoms continued, "Over the course of the last few quarters, we
have introduced several new products which should position us well when the
industry cycle turns up."
Statements in this release that are forward looking involve known and
unknown risks and uncertainties, which may cause the Company's actual results
in future periods to be materially different from any future performance
suggested in this release. Such factors include, but are not limited to,
economic and currency instability in the Asia Pacific region, fluctuation in
customer demand, timing, and volume orders and shipments, competition and
pricing pressures, reliability and quality issues, product mix,
underabsorption of overhead, cyclicality in the semiconductor industry,
continued dependence on "turns" orders to achieve revenue objectives, the
Company's ability to have an appropriate amount of production capacity in a
timely manner, the timing of new technology and product introductions and the
risk of early obsolescence and expenses associated with product developments
and delays.
Further, the Company operates in an industry sector where securities
values are highly volatile and may be influenced by economic and other factors
beyond the Company's control. Reference is made to the discussion of risk
factors detailed in the Company's filings with the Securities and Exchange
Commission, including its reports on Form 10-K and 10-Q. The Company assumes
no obligation to update the information in this press release.
Credence Systems Corporation is a leader in the manufacture of
automatic test equipment (ATE) for the worldwide semiconductor industry.
Credence offers a wide range of products with test capabilities for digital,
mixed-signal, and memory semiconductors. Utilizing its patented CMOS
technologies, Credence products are designed to meet the strict time-to-market
and cost of ownership requirements of its customers.
Headquartered in Fremont, California, the company maintains advanced
production and design facilities in Beaverton, Oregon. Credence, an ISO 9001
certified manufacturer, is listed on the Nasdaq National Market under the
symbol CMOS. More information is available at www.credence.com.
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Credence, and Credence Systems are trademarks of Credence Systems
Corporation. Other trademarks which may be mentioned in this release are the
intellectual property of their respective owners.
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<TABLE>
<CAPTION>
CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Prior Quarter Six Months
Ended Ended Ended
April 30, January 31, April 30,
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1998 1997 1998 1998 1997
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<S> <C> <C> <C> <C> <C>
Net sales $74,660 $43,355 $82,375 $157,035 $83,616
Cost of goods sold 31,664 18,374 35,438 67,102 37,813
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Gross margin 42,996 24,981 46,937 89,933 45,803
Operating expenses:
Research and development 12,233 8,953 13,491 25,724 17,759
Selling, general and
administrative 17,931 11,989 20,308 38,239 23,420
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Total operating expenses 30,164 20,942 33,799 63,963 41,179
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Operating income 12,832 4,039 13,138 25,970 4,624
Interest income and other
expenses, net 200 874 958 1,158 1,901
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Income before income taxes 13,032 4,913 14,096 27,128 6,525
Income taxes 4,290 1,627 4,934 9,224 2,185
Minority interest (45) -- (29) (74) --
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Net income $ 8,787 $ 3,286 $ 9,191 $ 17,978 $ 4,340
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Net income per share/1/
Basic $ 0.41 $ 0.15 $ 0.42 $ 0.83 $ 0.20
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Diluted $ 0.40 $ 0.15 $ 0.41 $ 0.81 $ 0.20
======= ======= ======= ======== =======
Number of shares used in
computing per share amount/1/
Basic 21,634 21,833 21,864 21,731 21,783
======= ======= ======= ======== =======
Diluted 22,146 22,265 22,415 22,257 22,242
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</TABLE>
/1/ Income per share amount for the three months ended April 30, 1997 has
been restated to reflect the Company's adoption of Financial Accounting
Standard No. 128.
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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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<CAPTION>
PRIOR QUARTER
APRIL 30, JANUARY 31, OCTOBER 31,
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1998 1998 1997
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(unaudited) (unaudited)
ASSETS
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 65,841 $88,667 $132,761
Restricted cash 5,012 7,206 10,002
Short-term investments 78,313 62,608 35,013
Accounts receivable, net 60,770 62,103 55,246
Inventories 52,723 48,761 42,125
Other current assets 13,900 14,552 13,001
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Total current assets 276,559 283,897 288,148
Long-term investments 27,980 17,396 8,561
Property and equipment, net 45,930 44,497 43,050
Other assets 19,466 17,442 18,382
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Total assets $369,935 $363,232 $358,141
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 12,935 $ 14,386 $ 13,182
Accrued liabilities 24,343 23,454 20,346
Income taxes payable 4,331 6,476 4,284
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Total current liabilities 41,609 44,316 37,812
Convertible subordinated notes 115,000 115,000 115,000
Minority interest 312 366 418
Stockholders' equity 213,014 203,550 204,911
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Total liabilities and stockholders' equity $369,935 $363,232 $358,141
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