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Rudolph Technologies Posts 2014 3Q Results [Professional Services Close - Up]
[November 06, 2014]

Rudolph Technologies Posts 2014 3Q Results [Professional Services Close - Up]


(Professional Services Close - Up Via Acquire Media NewsEdge) Rudolph Technologies has reported financial results for the third quarter of 2014.

In its release on November 3, the Company noted that 2014 third quarter highlights include: -Third quarter revenue of $47.0 million was an increase of 9 percent over the 2014 second quarter revenue and exceeded guidance.

-Third quarter GAAP net loss was $998 thousand, or $(0.03) per diluted share, impacted by income tax adjustments.

-Non-GAAP net income was $3.5 million, or $0.10 per diluted share, significantly higher than third quarter guidance.

-Lithography and software sales contributed to strong 53 percent gross margins.

"Our results for the third quarter were significantly better than expected," noted Paul F. McLaughlin, chairman and chief executive officer, "demonstrating Rudolph's continuing leadership in providing comprehensive solutions for today's most advanced wafer-level chip- scale packaging processes. This is further confirmation of the strength of our differentiated business model, in which we target selected front-end and back-end higher growth markets. The result is a broad and expanding customer base with a more balanced product portfolio across all industry cycles. We saw continuing strength in back-end demand in the latter part of the quarter, and had significant contributions from our Lithography and Software products. In fact, we see 2014 being a record revenue year for our Data Analysis and Review software.



"During the third quarter, we shipped a JetStep G System for flat panel display lithography. The order was received in the fourth quarter of 2013 and came from an existing customer, who is presently using Rudolph's lithography systems in volume production and continues to see new capacity needs that require our lithography systems. We also received a volume order from one of Taiwan's providers of independent semiconductor manufacturing services in assembly and test (OSAT), including multiple NSX systems for 2D macro defect inspection, the Wafer Scanner system for 3D inspection and bump height metrology, and Discover software for yield optimization. In addition, providing further validation of our technology, the SUNY College of Nanoscale Science and Engineering, Albany, NY, selected our Discover Enterprise Yield Management Software to provide an integrated data warehouse and analytics system for the Global 450 Consortium equipment development program, which will be used to combine all types of manufacturing data from defect, metrology, process, test and wafer tracking into a single system for comprehensive analysis. Lastly, building on our expertise in acoustic metrology developed for our industry-standard MetaPULSE systems used for front-end metal film metrology, we recently announced the availability of Rudolph's new patented SONUS Technology, designed for measuring thick films and film stacks used in copper pillar bumps and for detecting defects, such as voids, in through silicon vias (TSVs). Copper pillar bumps and TSVs are key enabling technologies in the rapidly growing field of advanced packaging, where 2.5D and 3D assembly methods are helping drive the More than Moore roadmap. Rudolph has collaborated with TEL NEXX specifically to develop pillar bump and TSV plating process control based on SONUS Technology." McLaughlin concluded, "Looking ahead, our confidence remains high for a solid Q4 and a strong 2015. Our front-end business is beginning to strengthen, fueled by demand for our thin film metrology products; and while there is evidence of seasonal weakening that we traditionally see in the back-end, it is somewhat mitigated by strong MetaPULSE system demand in the fourth quarter. Our expanding portfolio of equipment and software solutions includes macro defect inspection, probe card test and analysis, thin film metrology, and most recently, advanced packaging lithography systems; and our position as a total value-added solutions provider has further strengthened, resulting in a rich and substantially stronger advanced technology portfolio that has more than doubled in product offerings over the last five years. We are confident that our chosen markets will benefit from both cyclical and sector growth, comprised of strong demand for our expanding package of leading-edge solutions." Third Quarter 2014 Financial ResultsThird quarter revenue totaled $47.0 million, a 9 percent increase when compared with $43.0 million for the 2014 second quarter. During the third quarter, international sales represented approximately 58 percent of revenue, while domestic sales accounted for 42 percent. In the 2014 second quarter, international sales represented approximately 77 percent of revenue and domestic sales accounted for 23 percent.

Gross margin was 53 percent of revenues in the 2014 third quarter, compared to 54 percent in the second quarter. The third quarter gross margin was impacted by lower software sales, which represented 12 percent of revenues in the quarter. In addition, the third quarter included a lithography sale to the flat panel industry that contributed to the strong gross margins.


Operating expenses for the third quarter of 2014 totaled $20.5 million, a decrease of $12.3 million from $32.8 million in the 2014 second quarter. R&D expenses for the third quarter totaled $9.6 million, compared with $10.8 million in the 2014 second quarter. S,G&A expenses for the third quarter totaled $10.3 million, compared with $21.3 million in the second quarter of 2014. The decrease in operating expenses was primarily due a reduction in legal expenses after a patent infringement judgment against the Company was recorded in the second quarter. Also contributing to the decrease was lower compensation and R&D project costs in the quarter.

GAAP net loss for the third quarter of 2014 was $998 thousand, or $(0.03) per diluted share, compared with a net loss of $4.4 million, or $(0.13) per diluted share, for the second quarter of 2014. The third quarter GAAP net loss included $2.3 million in non-GAAP charges as detailed in the attached Reconciliation of GAAP to Non- GAAP Financial Measures. Excluding those items, third quarter 2014 net income was $3.5 million, or $0.10 per diluted share, compared to $1.4 million, or $0.04 per diluted share, in the 2014 second quarter.

Balance Sheet StrengthAt September 30, cash and marketable securities totaled $162.5 million, a decrease of $14.8 million from $177.3 million at the end of the 2014 second quarter. The decrease in cash was due to payments related to the patent infringement judgment against the Company and cash used for the Company's stock repurchase program. Accounts receivable decreased slightly to $50.0 million and inventory increased slightly to $65.8 million as of September 30. Working capital ended the September quarter at $266.2 million.

Rudolph Technologies is a company focusing on the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by semiconductor device manufacturers worldwide.

More information: www.rudolphtech.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved.

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