<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NEWS RELEASE
For More Information Contact:
Dennis P. Wolf Heather Spedden
Executive Vice President and CFO Investor Relations
(510) 657-7400 (510) 657-7400
CREDENCE SYSTEMS REPORTS RESULTS FOR
FOURTH QUARTER AND FISCAL YEAR 2000
FREMONT, Calif.--November 28, 2000--Credence Systems Corporation
(Nasdaq NMS: CMOS) today reported results for its fourtH quarter and fiscal year
ended October 31, 2000. Net sales for the fourth quarter of fiscal 2000 were
$220.2 million, an increase of 175 percent from net sales of $80.2 million in
the fourth quarter of fiscal 1999. Net sales were up $16.2 million sequentially
or 8 percent from the company's record third fiscal quarter of 2000. Included in
the results of the company's fourth quarter is a $3.5 million charge associated
with the acquisition of in-process research and development ("IPR&D") for
Modulation Instruments, Inc. and NewMillennia Solutions, Inc. There is no tax
benefit associated with this charge because IPR&D is not deductible for tax
purposes. Excluding these IPR&D charges, the company's pro-forma net income for
the fourth quarter of fiscal 2000 was $52.5 million or $0.96 per diluted share.
Total pro-forma net income for fiscal 2000 before IPR&D charges stood at $152.2
million or $2.87 per diluted share.
The net income for the fourth quarter of fiscal 2000 including the
IPR&D charge was $49.0 million or $0.89 per diluted share, compared to net
income of $8.1 million during the fourth fiscal quarter of 1999, or $0.18 per
diluted share. The net income for fiscal 2000 was $140.4 million or $2.65 per
diluted share, compared to a net loss of $0.8 million or $0.02 per diluted share
for fiscal 1999.
Dr. Graham Siddall, Credence's president and chief executive officer
said, "We concluded the fiscal year with a record quarter that brought our
year-on-year growth to 245%. Our bookings of $222 million represented a
book-to-bill of slightly over 1.0, which compares favorably with the recent
estimates from SEMI of 0.81 for the Test and Assembly sector in October 2000."
Dr. Siddall continued "In the current uncertain industry environment,
there are concerns that some of these orders could be pushed out. In view of
this uncertainty we estimate revenue will be sequentially down in the first
quarter of fiscal 2001."
Credence's executive vice president and chief financial officer, Mr.
Dennis P. Wolf, said "Our operating performance continued to be strong in the
fourth quarter with gross margins at 60.9 percent and operating margins before
the IPR&D charges of 34.7 percent. The amortization of purchased intangibles for
the quarter amounted to $4.9 million before tax or $0.06 per diluted share after
tax. The pro-forma results for the company without this charge was an operating
margin of 36.9 percent. The operating margin was the highest in our history as
we recorded more income in this fiscal quarter than in any previous full year in
our history. We also increased our commitment to the alternative approaches to
next generation, high-performance test techniques with the acquisition of
NewMillennia Solutions, Inc. NMS' current test solutions are targeting Rambus
RDRAM memory and module test, RAC-based ASIC's, core logic chip sets, and
graphics devices. In addition, we purchased our three-story office and
manufacturing facility and approximately 30 acres of land in Hillsboro, Oregon
during the quarter. The total purchase price was approximately $31.5 million and
replaces a 15-year lease already in place."
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Dr. Siddall, also said, "with our growth in fiscal year 2000 we have
gained market share in the non-DRAM sector. We have also introduced more new
products than in any previous year. The acquisition of three new companies is
designed to broaden our current and future product offerings. The net result is
to bring us closer to our goal of becoming #2 in the non-DRAM ATE industry.
These results would not have been possible without the support of our customers
and the hard work and dedication of our employees."
Credence Systems Corporation will be conducting their conference call
today, November 29th, 2000 at 3p.m. pacific time. You may either listen to the
call by phone, 1-888-391-0107, or by web cast at www.credence.com
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 non-volatile memory semiconductors. Utilizing its proprietary
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 Hillsboro, Oregon. Credence, an ISO 9001
certified manufacturer, is listed on the Nasdaq National Market under the symbol
CMOS.
Statements in this release that are forward looking and 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, reliance on sales
in Taiwan for a significant portion of our net sales, 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, overhead absorption, 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, integration
of acquired businesses, and the Company's ability to control expenses.
Further, the Company operates in an industry sector where securities
values are highly volatile and are 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. Any projections in this
release are based on limited information currently available to the Company,
which is subject to change. Although any such projections and the factors
influencing them will likely change, the Company will not necessarily update the
information, since the Company is only to provide guidance at certain points
during the year. Actual events or results could differ materially and no reader
of this release should assume later in the quarter that the information provided
today is still valid. Such information speaks only as of the date of this
release.
Credence, Credence Systems, Quartet Kalos and ValStar 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)
(Unaudited)
<TABLE>
<CAPTION>
Prior
Three Months Quarter Fiscal Year
Ended Ended Ended
October 31, July 31, October 31,
--------------------------------- ------------- -----------------------------
2000 1999 2000 2000 1999
------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Net sales $220,216 $80,215 $204,000 $679,738 $197,183
Cost of goods sold - on net sales 86,043 36,102 80,765 272,627 95,205
------------- ------------- ------------- -------------- ------------
Gross margin 134,173 44,113 123,235 407,111 101,978
Operating expenses:
Research and development 20,003 10,682 19,490 68,179 36,459
Selling, general and administrative 32,831 18,373 29,885 106,951 58,660
Amortization of purchased 4,876 446 3,360 10,367 2,449
intangibles
In-process research and 3,512 858 8,282 11,794 858
development
Special charges -- 1,334 -- -- 7,565
------------- ------------- ------------- -------------- ------------
Total operating expenses 61,222 31,693 61,017 197,291 105,991
------------- ------------- ------------- -------------- ------------
Operating income (loss) 72,951 12,420 62,218 209,820 (4,013)
Interest and other income
(expenses), net 4,705 328 5,874 14,071 261
------------- ------------- ------------- -------------- ------------
Income (loss) before income taxes 77,656 12,748 68,092 223,891 (3,752)
Income taxes (benefit) 28,615 4,576 27,113 83,468 (1,372)
Minority interest (benefit) 12 106 (18) 41 75
------------- ------------- ------------- -------------- ------------
Net income (loss) before
Extraordinary items $ 49,029 $ 8,066 $40,997 $ 140,382 ($ 2,455)
============= ============= ============= ============== ============
Gain on extinguishment of debt -- -- -- -- 1,646
Net income (loss) $ 49,029 $ 8,066 $40,997 $ 140,382 ($ 809)
============= ============= ============= ============== ============
Net income (loss) per share
Basic $0.96 $0.19 $0.82 $2.91 ($ 0.02)
============= ============= ============= ============== ============
Diluted $0.89 $0.18 $0.74 $2.65 ($ 0.02)
============= ============= ============= ============== ============
Number of shares used in
Computing per share amount
Basic 51,240 43,448 49,802 48,239 42,176
============= ============= ============= ============== ============
Diluted 55,453 45,478 55,101 54,176 43,798
============= ============= ============= ============== ============
</TABLE>
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CREDENCE SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
Prior Quarter
October 31, July 31, October 31,
--------------------- --------------------- ---------------------
2000 2000 1999
--------------------- --------------------- ---------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $105,319 $133,498 $ 52,104
Short-term investments 124,545 142,112 39,774
Accounts receivable, net 175,794 160,248 71,506
Inventories 102,034 73,392 41,218
Other current assets 29,420 24,707 23,111
--------------------- --------------------- ---------------------
Total current assets 537,112 533,957 227,713
Long-term investments 147,574 137,344 50,005
Property and equipment, net 94,853 54,488 43,063
Other assets 106,540 89,452 19,639
--------------------- --------------------- ---------------------
Total assets $886,079 $815,241 $340,420
===================== ===================== =====================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 53,287 $ 41,948 $ 23,611
Accrued liabilities 71,202 57,428 31,163
Income taxes payable 23,866 13,430 6,212
--------------------- --------------------- ---------------------
Total current liabilities 148,355 112,806 60,986
Convertible subordinated notes & other 1,039 96,213 97,744
Long-term deferred tax liability 7,292 14,262 --
Minority interest 324 312 282
Stockholders' equity 729,069 591,648 181,408
--------------------- --------------------- ---------------------
Total liabilities and stockholders' equity $886,079 $815,241 $340,420
===================== ===================== =====================
</TABLE>
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CREDENCE SYSTEMS CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Notes: Operations for the fiscal year ended October 31, 2000 included a
charge of approximately $11.8 million in the aggregate for the in-process
research and development charges associated with the acquisitions of TMT, Inc.,
Modulation Instruments, Inc., and NewMillennia Solutions, Inc. There is no tax
benefit associated with these charges.
Operations for the year ended October 31, 1999 included pre-tax charges
of approximately $6.2 million related to the disposal of excess facilities and
severance, $1.3 million related to the acquisition and integration of Opmaxx,
Inc., and $0.9 million for in-process research and development charges
associated with that acquisition. Fiscal 1999 also included an extraordinary
gain on extinguishment of debt after taxes of $1.6 million.
During the three month period ended October 31, 2000, the Company
recorded a charge of approximately $3.5 million for the in-process research and
development charges associated with the acquisitions of Modulation Instruments,
Inc. and NewMillennia Solutions, Inc. There is no tax benefit associated with
these charges.
During the three month period ended October 31, 1999, the Company
recorded special pre-tax charges of $1.3 million related to the acquisition and
integration of Opmaxx, Inc., and $0.9 million for in-process research and
development charges associated with that acquisition.
The information in the tables below shows pro-forma net income
information excluding these non-recurring items. This supplemental financial
information is not prepared in accordance with generally accepted accounting
principles.
<TABLE>
<CAPTION>
Three Months Fiscal Year
Ended Ended
October 31, October 31,
----------------------------- -------------------------------
2000 1999 2000 1999
----------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Pro forma operating income $ 76,463 $ 14,612 $ 221,614 $ 4,410
----------- ------------ ------------- ------------
Pro forma income before tax 81,168 14,940 235,685 4,671
Pro forma income tax provision 28,615 5,365 83,468 1,682
Minority interest 12 106 41 75
----------- ------------ ------------- ------------
Pro forma net income $ 52,541 $ 9,469 $ 152,176 $ 2,914
=========== ============ ============= ============
Pro forma net income per share
Basic $1.03 $0.22 $3.15 $0.07
=========== ============ ============= ============
Diluted $0.96 $0.21 $2.87 $0.07
=========== ============ ============= ============
Number of shares used in computing per
Share amount
Basic 51,240 43,448 48,239 42,176
=========== ============ ============= ============
Diluted 55,453 45,478 54,176 43,798
=========== ============ ============= ============
</TABLE>
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