FLANDERS, NJ-- August 06, 2007 - Rudolph Technologies, Inc. (NASDAQ: RTEC), a leading provider of process control equipment for thin film measurements and macro-defect inspection during integrated circuit manufacturing, today announced financial results for the second quarter ended June 30, 2007.
Highlights for the second quarter include:
- Revenue of $47.7 million
- Earnings per share at $0.19
- Cash and marketable securities reach record high at $115.8 million
- Record nine new products showcased at Semicon West
Discussing the second quarter results, Paul F. McLaughlin, Chairman and Chief Executive Officer, commented, "I am pleased with our second quarter performance as we executed to plan with earnings and cash continuing to be positive highlights, while revenues came in at the middle of our range. In addition, we are excited about the long-term prospects of the nine new products we recently introduced and then showcased at Semicon West in July."
The Company's 2007 second quarter revenue totaled $47.7 million, a 1% decrease compared to $48.4 million for the first quarter 2007. During both the first and second quarters of 2007, international sales represented approximately 80% of revenue while domestic sales accounted for approximately 20%. Over 70% of the Company's 2007 second quarter tool revenue was sold to front-end semiconductor customers, 15% was sold to back-end semiconductor customers, and the remainder was sold to other markets.
Second quarter net income, totaled $5.5 million, or $0.19 per share, compared to $5.6 million or $0.19 per share for the 2007 first quarter.
Second quarter gross margin was 52% compared to 54% for the 2007 first quarter. The decrease in margin was primarily due to a decrease in software product and licensing revenue which has higher margins than tool sales.
Research and development (R&D) expenses for the second quarter of 2007 totaled $8.1 million, compared to $8.7 million in the first quarter of 2007. As a percentage of revenue, R&D was 17% of revenue in the second quarter of 2007 and 18% in the first quarter of 2007. The decrease in R&D in absolute dollars was primarily due to reduced compensation cost, lower headcount and a decrease in project costs.
Selling, general and administrative (S,G&A) expenses totaled $8.8 million in both the first and second quarters of 2007. S,G&A was 18% of revenue in both periods.
The 2007 second quarter effective tax rate was 30%.
Balance Sheet Strength
At June 30, 2007, the Company's cash and marketable securities reached a new record high of $115.8 million. Working capital increased $8.2 million from $212.2 million at March 31, 2007 to $220.4 million as of June 30, 2007.
Conference Call
Rudolph Technologies will discuss its fiscal 2007 second quarter results, fiscal 2007 third quarter guidance, along with its outlook for the remainder of fiscal 2007, on a conference call it is hosting today at 4:45 PM ET. A live webcast will also be available to investors on the Company's website at www.rudolphtech.com. To listen to the live call, please go to the website 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, defect inspection and data analysis systems used by semiconductor device manufacturers. Rudolph provides a full-fab solution through its families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market. Rudolph has enhanced the competitiveness of its products in the marketplace by anticipating and addressing many emerging trends driving the semiconductor industry's growth. Rudolph's strategy for continued technological and market leadership includes aggressive research and development of complementary metrology and inspection solutions. Headquartered in Flanders, New Jersey, Rudolph supports its customers with a worldwide sales and service organization. Additional information can be found on the Company's website at www.rudolphtech.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify those so-called "forward-looking statements" by words such as "may," "will," "would," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of those words and other comparable words. Rudolph wishes to take advantage of the "safe harbor" provided for by the Private Securities Litigation Reform Act of 1995 and you are cautioned that actual events or results may differ materially from the expectations expressed in such forward-looking statements as a result of various factors, including risks and uncertainties, many of which are beyond the control of Rudolph. Factors that could cause actual results to differ materially from the expectations expressed in such forward-looking statements include, but are not limited to: (1) cyclicality of the semiconductor industry; (2) customer concentration; (3) introduction of new products by Rudolph's competitors; (4) sole or limited sources of supply; (5) revenues may be lower than expected; (6) costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected; (7) the industry may be subject to future regulatory or legislative actions that could adversely affect the company; (8) the impact of a slowdown in the overall economy; (9) uncertainty of the current global political environment; (10) the potential for terrorist attacks; (11) changes in customer demands for our existing and new products, and the timing, cancellation or delay of customer orders and shipments; (12) the timing of revenue recognition of shipments and services provided; (13) changes in or an inability to execute our business strategy; (14) unanticipated manufacturing or supply problems and (15) changes in tax rules. Rudolph cannot guarantee future results, levels of activity, performance, or achievements. Additional factors that may affect the future results of Rudolph are set forth in its Form 10-K report for the year ended December 31, 2006 and other filings with the Securities and Exchange Commission ("SEC"), which are available at http://www.sec.gov, the SEC's website, and at the Company's website which is http://www.rudolphtech.com. These factors are updated from time to time through the filing of reports and registration statements with the SEC. Rudolph Technologies does not assume any obligation to update the forward-looking information contained in this press release.
For more information, please contact:
Investors:
Steven R. Roth
973.448.4302
steven.roth@rudolphtech.com
Trade Press:
Virginia Becker
952.259.1647
virginia.becker@rudolphtech.com
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