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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) FEBRUARY 9, 2000
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CREDENCE SYSTEMS CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 000-22366 94-2878499
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) 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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NONE
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 9, 2000, the Registrant issued a press release announcing the
financial results for its first quarter ended January 31, 2000.
Item 7. Exhibits.
A copy of the Registrant's press release announcing its financial results
for the first quarter ended January 31, 2000 is attached hereto as Exhibit 99.1
and incorporated herein by reference.
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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 hereunto duly authorized.
CREDENCE SYSTEMS CORPORATION
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(Registrant)
Date: February 9, 2000 By /s/ Dennis P. Wolf
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Name: Dennis P. Wolf
Title: Executive Vice President,
Chief Financial Officer and
Secretary
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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99.1 Press Release disseminated on February 9, 2000 announcing the
Registrant's financial results for the first quarter ended
January 31, 2000.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NEWS RELEASE
For More Information Contact:
Dennis P. Wolf Cathi W. Fox
Executive Vice President and CFO Investor Relations
(510) 657-7400 (510) 657-7400
CREDENCE SYSTEMS REPORTS RECORD RESULTS FOR
FIRST FISCAL QUARTER OF 2000
FREMONT, Calif.-February 9, 2000-Credence Systems Corporation (Nasdaq NMS:
CMOS) today reported results for its first fiscal quarter ended January 31,
2000. Net sales were $101.8 million, an increase of 284 percent from net sales
of $26.5 million in the first quarter of fiscal 1999. Net sales were up 27
percent sequentially from net sales of $80.2 million in the company's fourth
fiscal quarter of 1999. The net income for the first quarter of fiscal 2000 was
$16.9 million or $0.71 per share, compared to a net loss of $6.6 million or
$0.32 in the first quarter of 1999. Net income for the first quarter was up
sequentially from the fourth fiscal quarter of 1999 when the company reported
net income of $8.1 million or $0.35 per share, after special charges.
Dr. Graham Siddall, Credence's president and chief executive officer said,
"We are very pleased with this quarter's results which were an all-time high for
revenue, earnings and bookings. Bookings were very strong, with a book-to-bill
of 1.8 and nine new account wins this quarter, the largest number of new wins
for Credence in any single quarter. We are particularly pleased to add
STMicroelectronics (NYSE:STM) as a new customer. STM is purchasing several
products from the Kalos line for testing of its flash memory products and we are
excited about working with them."
Credence's executive vice president and chief financial officer, Mr. Dennis
P. Wolf said, "We continued to see strong operational improvements this quarter.
Our gross margin of 57.7% was the highest in several years and up from 55% in
the fourth quarter of last year and 42.3% in the year ago first quarter. Our
operating margin of 25% was among the best in the industry for reporting
companies."
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CREDENCE SYSTEMS REPORTS RESULTS FOR FIRST FISCAL QUARTER OF 2000
PAGE 2
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 proprietary CMOS technologies, Credence
products are designed to meet the strict time-to-market and ownership
requirements of its customers.
Headquartered in Fremont, California, the company maintains advanced
production and design facilities in Hillsboro, 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.
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 the 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 of orders and shipments, competition and pricing pressures,
reliability and quality issues, the Company's ability to complete the
development of its new products, product mix, under-absorption of overhead,
cyclicality and downturns 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, product introductions, the risk of early obsolescence and the
Company's ability control expenses (including the ability to identify and
successfully institute additional cost-saving measures).
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
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, Credence Systems, Duo, SC, ValStar, Kalos, and Quartet 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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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
THREE MONTHS PRIOR QUARTER
ENDED ENDED
JANUARY 31, OCTOBER 31,
--------------------- --------------
2000 1999 1999
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<S> <C> <C> <C>
Net sales................................. $ 101,768 $ 26,490 $ 80,215
Cost of goods sold - on net sales......... 43,023 15,276 36,102
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Gross margin.............................. 58,745 11,214 44,113
Operating expenses:
Research and development.................. 13,937 9,003 11,128
Selling, general and administrative....... 19,344 12,231 18,373
In-process research and development....... -- -- 858
Special charges........................... -- -- 1,334
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Total operating expenses............... 33,281 21,234 31,693
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Operating income (loss)................... 25,464 (10,020) 12,420
Interest and other income
(expenses), net........................... 683 (301) 328
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Income (loss) before income taxes......... 26,147 (10,321) 12,748
Income taxes (benefit).................... 9,282 (3,729) 4,576
Minority interest (benefit)............... 3 (38) 106
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Net income (loss)......................... $ 16,862 $ (6,554) $ 8,066
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Net income (loss) per share
Basic.................................. $ 0.77 $ (0.32) $ 0.37
========= ========= ==============
Diluted................................ $ 0.71 $ (0.32) $ 0.35
========= ========= ==============
Number of shares used in
computing per share amount
Basic.................................. 21,952 20,418 21,724
========= ========= ==============
Diluted................................ 23,753 20,418 22,739
========= ========= ==============
</TABLE>
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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
JANUARY 31, OCTOBER 31,
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2000 1999
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UNAUDITED
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents.................... $ 42,914 $ 52,104
Short-term investments....................... 25,711 39,744
Accounts receivable, net..................... 102,826 71,506
Inventories.................................. 46,530 41,218
Other current assets......................... 22,786 23,111
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Total current assets...................... 240,767 227,713
Long-term investments......................... 73,484 50,005
Property and equipment, net................... 43,706 43,063
Other assets.................................. 18,579 19,639
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Total assets.............................. $ 376,536 $ 340,420
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................. $ 27,044 $ 23,611
Accrued liabilities.......................... 32,718 31,163
Income taxes payable......................... 9,337 6,212
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Total current liabilities................. $ 69,099 $ 60,986
Convertible subordinated notes payable....... 97,740 97,744
Minority interest............................ 286 282
Stockholders' equity......................... 209,411 181,408
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Total liabilities and stockholders'
equity.................................... $ 376,536 $ 340,420
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</TABLE>
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