Flanders, NJ, April 26, 2004 - Rudolph Technologies, Inc. (Nasdaq: RTEC), a leading provider of
process control equipment for thin film measurement and macro-defect inspection during Integrated
Circuit (IC) manufacturing, today announced financial results for the first quarter ended March 31, 2004.
Highlights for the first quarter include:
- Revenue of $18.9 million increases 19% sequentially and 30% year-over-year
- Sequential operating profit increases 57% to $921,000
- Balance sheet remains strong, supported by $74.7 million in cash and marketable securities
Discussing the first quarter results, Paul F. McLaughlin, Chairman and CEO commented:
"Our sequential first quarter revenue growth of 19% was better-than-expected and reflects growing
acceptance of RTEC products across the board. Furthermore, our operating leverage is clearly evidenced by a 57% sequential increase in operating profit over Q4 of 2003. During the quarter, we added a new 300mm customer, giving us a total of 30 companies that are currently at various stages of evaluating our next generation 300mm tools. Of particular importance this quarter, we introduced what we believe to be a paradigm shift in the way after-develop inspection (ADI) is performed post lithography and post CMP. We introduced our WaferView Team™, which offers customers a unique suite of three new tools for macro-defect inspection, combining integrated ADI with next generation standalone WaferView® tools all managed by our fab-proven YieldView® server. This gives Rudolph a significant new revenue producing offering. We believe our other planned new products, being released over the course of this year, will further position us well for continued growth and increased market share gains."
The Company's first quarter revenue totaled $18.9 million, a 30% increase compared to $14.5 million for the first quarter of 2003. Revenue for the 2004 first quarter increased by 19% compared to the 2003 fourth quarter revenue of $15.9 million. During the first quarter, international sales represented
approximately 80% of revenue while domestic sales accounted for 20%. This compares to international
sales of 64% and domestic sales of 36% in the year-ago quarter. Approximately 70% of the Company's 2004 first quarter revenue was from 300-millimeter tools.
The Company continued its strong heritage of maintaining profitability as first quarter net income totaled
$978,000, or $0.06 per diluted share, compared to $175,000, or $0.01 per share, for the 2003 first quarter. The Company reported net income of $844,000, or $0.05 per diluted share, for the 2003 fourth quarter.
First quarter gross margin increased to 46% compared to 42% in the 2003 first quarter. The gross margin in the 2003 fourth quarter was 44%. The sequential increase in gross margin is primarily due to an increase in metal tool shipments, which typically have higher margins, and the leverage generated by
fixed manufacturing and customer service costs representing a smaller percentage of the overall cost of
goods sold. These increases were partially offset by higher sales in Japan where the Company sells tools at a discount to a distributor.
Research & development (R&D) expenses for the first quarter totaled $4.2 million, compared to $3.6 million in the fourth quarter of 2003, and $3.4 million in the year-ago period. As a percentage of revenue, R&D was 22%, compared to 23% last quarter, and 24% in the same quarter last year. On a sequential basis, the increase in R&D is due to higher compensation costs and an increase in product development costs. The Company's first quarter spending on R&D has increased by 21% in absolute dollars over the prior year period as it continues to invest in new products.
Selling, general & administrative (S,G&A) expenses for the first quarter totaled $3.3 million, compared to $2.6 million in the fourth quarter of 2003, and $2.9 million in the prior year period. As a percentage of revenue, S,G&A was 17% in the 2004 first quarter compared to 20% for the prior year period. The
increase in absolute dollars over the fourth quarter of 2003 is primarily due to increased compensation
costs and increased administrative costs at the Company's branch offices.
Balance Sheet Strength
At March 31, 2004, the Company's cash and marketable securities totaled $74.7 million. Working capital changed slightly from December 31, 2003 increasing to $113.2 million.
Outlook
The Company is currently anticipating revenue for the second quarter ending June 30, 2004 to be
sequentially up 5% to 7.5% compared to that of the 2004 first quarter revenue of $18.9 million. The
Company is expecting diluted earnings per share to be approximately $0.06 to $0.08 for the 2004 second quarter.
"As our products continue to gain acceptance at leading IC manufacturers, we are seeing greater long term visibility. We are currently anticipating full year revenue to be at the high end or above the 25% to
33% growth rate that some industry analysts are forecasting for semiconductor equipment manufacturers. Our renewed optimism is due to a number of factors, including the significant expansion of our product offerings, as well as, the commitment by our customers to once again implement their growth strategies. My prior comments - stating that we are now competing in markets that are about twice the size available to us during the industry's last peak - are beginning to bear fruit as we believe we are well positioned to outperform the industry's growth for a period beyond just the current year," McLaughlin concluded.
Conference call
Rudolph Technologies will be hosting a conference call today at 4:45PM ET. A live webcast will also be available to investors on the Company's web site at www.rudolphtech.com. To listen to the live call,
please go to the web site at least fifteen minutes early to register, download and install any necessary
audio software.
About Rudolph Technologies
Rudolph Technologies is a worldwide leader in the design, development, manufacture and support of
high-performance process control metrology systems used by semiconductor device manufacturers. The Company provides a full-fab solution through its families of proprietary systems for metrology
applications used throughout the device manufacturing process. Rudolph's product development has
successfully anticipated and addressed many emerging trends that are driving the semiconductor
industry's growth. The Company's success in creating complementary metrology applications through
aggressive research and development is key to Rudolph's strategy for continued technological and market leadership.
Safe Harbor Statement
This press release contains forward-looking statements, including, but not limited to, statements
related to our expectations regarding our revenue and earnings expectations for the second quarter
and full year 2004, increases in customer orders and bookings, future growth of our business, and
the overall improvement in the market. Actual results may differ materially from those projected
due to a number of risks, including, but not limited to, the impact of the slowdown in the overall
economy, the uncertainty of the current global political environment, the potential for terrorist
attacks, the potential for business disruptions due to infectious diseases, changes in customer
demands for our existing and new products, the timing, cancellation or delay of customer orders
and shipments, the timing of revenue recognition of shipments, new product offerings from our
competitors, changes in or an inability to execute Rudolph Technologies' business strategy,
unanticipated manufacturing or supply problems, and changes in tax rules. Rudolph Technologies
cannot guarantee future results, levels of activity, performance or achievements. The matters
discussed in this press release also involve risks and uncertainties summarized under the heading
"Factors that May Affect Future Results" in Rudolph Technologies' Form 10-K filed for the year
ended December 31, 2003. These factors are updated from time to time through the filing of
reports and registration statements with the Securities and Exchange Commission. Rudolph
Technologies does not assume any obligation to update the forward-looking information contained
in this press release.