LTXX Ltx (MM)

LTX Corporation (Nasdaq: LTXX), a leading provider of semiconductor test solutions, today announced financial results for its fiscal year 2008 second quarter ended January 31, 2008. The results were in line with the Company�s guidance provided on November 20, 2007. Sales for the quarter were $31,022,000, up 5% from prior quarter sales of $29,635,000. Net loss for the quarter was $(3,178,000), or $(0.05) per share on a GAAP basis. In the second quarter of fiscal year 2007, sales were $34,671,000 and the net loss was $(3,079,000), or $(0.05) per share on a GAAP basis. Total incoming orders for the second quarter of fiscal 2008 were $54.5 million yielding a book-to-bill ratio of 1.76 to 1, and up 82% from the prior quarter. Incoming product orders were up 65% sequentially. Dave Tacelli, chief executive officer and president, commented, �Our second quarter results met the guidance expectations for the quarter, and the order growth was strong. As a result, our third quarter revenue guidance is up approximately 25% sequentially with, most importantly, a return to profitability. The primary source of the order growth was from new customers that were previously in an engineering development phase that are now transitioning into volume production. The secondary source of the order growth was from capacity expansion at our existing strategic customers.� Among our accomplishments for our second fiscal quarter were the following: New accounts won over the past several years produced two-thirds of the increase in orders, with our largest customer accounting for the remainder - a direct result of customers moving new designs into volume production. Two customers represented at least 10% of orders and revenue in the quarter. Added two new customers in China, an important and growing market for RF/wireless companies looking to expand business with the lowest possible cost of test. Won several new customers, including two new subcontractors taking delivery of their first MX testers. THIRD QUARTER FISCAL 2008 OUTLOOK For the quarter ending April 30, 2008, revenue is expected to be in the range of $37 million to $40 million, with gross margin of approximately 51%. The earnings per share is projected to be in the range of $0.01 to $0.03, assuming 62.7 million fully diluted shares, and a 0% tax rate. The Company will conduct a conference call today, February 19, 2008, at 4:30 PM EST to discuss this release. The conference call will be simulcast via the LTX web site (www.ltx.com). Audio replays of the call can be heard through March 13, 2008 via telephone by dialing 888-286-8010; passcode 91831568 or by visiting our web site at www.ltx.com. "Safe Harbor" Statement: This press release contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that relate to prospective events or developments, including, without limitation, statements regarding our revenue, margin and earnings guidance, are deemed to be forward-looking statements. Words such as �believes,� �anticipates,� �plans,� �expects,� �projects,� �forecasts,� �will� and similar expressions are intended to identify forward-looking statements. There are a number of important factors and risks that could cause actual results or events to differ materially from those indicated by these forward-looking statements. Such risks and factors include, but are not limited to, the risk of fluctuations in sales and operating results, risk related to the timely development of new products, options and software applications, as well as the other factors described under "Business Risks" in LTX's most recently filed annual report on Form 10-K and in our most recently filed quarterly report on Form 10-Q filed with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements. ABOUT LTX LTX Corporation (Nasdaq: LTXX) is a leading supplier of test solutions for the global semiconductor industry. LTX�s X-Series, the industry�s most comprehensive family of production-proven, compatible test systems, delivers a scalable solution that provides the right test performance and the right cost of test. Combined with LTX�s industry-leading applications engineering and customer service teams, the X-Series enables companies to accelerate their time to market, optimize test economics and stay ahead of the technology curve. Additional information can be found at www.ltx.com. LTX and Fusion are registered trademarks and enVision is a trademark of LTX Corporation. All other trademarks are the property of their respective owners. Source LTX Corporation www.ltx.com � � � � � � � � � LTX CORPORATION � CONSOLIDATED BALANCE SHEET (Unaudited) (In thousands) � January 31, July 31, � 2008 � 2007 ASSETS Current assets: Cash and Cash equivalents $ 35,888 $ 63,302 Marketable Securities 28,531 35,236 Accounts receivable - trade 24,757 22,479 Accounts receivable - other 1,027 1,475 Inventories 24,680 27,102 Prepaid Expense 3,069 3,783 � � � Total current assets 117,952 153,377 � Property and equipment, net 30,645 32,483 Goodwill and other intangible assets 14,762 14,762 Other assets 504 500 � � $ 163,863 $ 201,122 � � � � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 3,900 $ 29,322 Accounts payable 13,660 15,334 Deferred revenues and customer advances 1,518 1,838 Other accrued expenses 11,677 19,605 � � � Total current liabilities � 30,755 � 66,098 � Long-term debt, less current portion 15,800 17,900 Long-term liability other 4,173 4,016 Stockholders' equity 113,135 113,108 � � � $ 163,863 $ 201,122 � � � � � � � � � � � � LTX CORPORATION � CONSOLIDATED STATEMENT OF OPERATIONS � (Unaudited) (In thousands, except earnings per share data) � � � Three Months Six Months Ended Ended January 31, January 31, � 2008 � � 2007 � � 2008 � � 2007 � � Net sales $ 31,022 $ 34,671 $ 60,657 $ 84,511 � Cost of sales (includes stock-based compensation expense of $36 for Q2 FY08; $35 for Q2 FY07; $62 YTD FY08; $57 YTD FY07 ) � 16,194 � � 18,629 � � 31,373 � � 43,333 � � Gross Margin 14,828 16,042 29,284 41,178 � Engineering and product development expenses (includes stock-based compensation expense of $437 for Q2 FY08; $366 for Q2 FY07, $717 YTD FY08; $594 YTD FY07) 11,347 12,922 22,983 25,855 � � Selling, general and administrative expenses (includes stock-based compensation expense of $1,005 for Q2 FY08; $939 for Q2 FY07; $1,671 YTD FY08; $1,630 YTD FY07) 6,921 6,433 13,432 13,498 � Reorganization costs � - � � (377 ) � - � � (377 ) � Income (Loss) from operations (3,440 ) (2,936 ) (7,131 ) 2,202 � Interest income (expense), net � 334 � � (143 ) � 550 � � (691 ) � Net income (loss) before provision (benefit) for taxes (3,106 ) (3,079 ) (6,581 ) 1,511 � Provision (benefit) for taxes � 72 � � � (3,179 ) � � Net income (loss) $ (3,178 ) $ (3,079 ) $ (3,402 ) $ 1,511 � � � Net income (loss) per share Basic $ (0.05 ) $ (0.05 ) $ (0.05 ) $ 0.02 Diluted $ (0.05 ) $ (0.05 ) $ (0.05 ) $ 0.02 � � Weighted average shares: Basic 62,510 62,031 62,490 62,025 Diluted 62,510 62,031 62,490 62,547