Rudolph Technologies 8-K 2006
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2006
Registrant's telephone number, including area code: (973) 691-1300
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 7, 2006, Rudolph Technologies, Inc. issued a press release reporting its financial results for the three and six months ended June 30, 2006. The press release is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Rudolph Technologies, Inc.
RUDOLPH TECHNOLOGIES ANNOUNCES RECORD QUARTER
Flanders, NJ, August 7, 2006 - Rudolph Technologies, Inc. (Nasdaq: RTEC), a leading provider of process control equipment for thin film measurement, macro-defect inspection and data analysis software solutions used during semiconductor device manufacturing, today announced financial results for the second quarter ended June 30, 2006.
Highlights for the second quarter include:
Discussing the second quarter results, Paul F. McLaughlin, Chairman and CEO
McLaughlin continued, "Of course, this only makes sense if bottom line results accompany that revenue growth and I'm pleased to report operating income in the second quarter was at 22% of revenues, which is well within our long-term financial model. Operationally, all three business units, metrology, inspection and software were profitable, with our software unit called Data Analysis and Review being two quarters ahead of plan. We are also ahead of our integration schedule for operations as we have exceeded our goal of $5.0 million in annualized cost synergies for the first year. Our teams had a long time to get ready for this integration and we were able to execute to plan as we got out of the gate very fast. We featured seven new product and software releases at Semicon West last month, so we believe we are well on our way to being a balanced company with a nice mixture of capacity and technology purchases driving our growth."
The Company's second quarter revenue totaled $56.7 million, a 78% increase compared to $31.8 million for the first quarter of 2006. Second quarter results included a full quarter results of the merger with August Technology.
Looking at the geographic distribution of our second quarter sales, international sales represented approximately 72% of revenue while domestic sales accounted for 28%. Approximately 63% of the Company's tool revenue was from 300mm product sales.
Second quarter net income totaled $8.0 million, or $0.28 per diluted share, which included $496 thousand or $0.01 per diluted share in charges related to inventory write-ups from purchase accounting. The Company reported a net loss of $11.7 million, or $0.52 per diluted share for the 2006 first quarter, which included in-process R&D and other acquisition related charges.
Second quarter gross margin was 52%, which included the inventory write-up charges noted above. The gross margin in the 2006 first quarter of 29% was also negatively impacted by $5.7 million in purchase accounting and inventory charges.
Research and development (R&D) expenses for the second quarter totaled $7.3 million, compared to $5.3 million in the first quarter of 2006. As a percentage of revenue, R&D was 13%, compared to 17% last quarter. The sequential dollar increase in R&D is primarily the result of the inclusion of a full quarter of R&D cost related to the August Technology merger and increased compensation costs. The Company anticipates that third quarter spending on R&D will be approximately 13% of revenue.
Selling, general and administrative (S,G&A) expenses for the second quarter totaled $9.0 million, compared to $7.0 million in the first quarter of 2006. As a percentage of revenue, S,G&A was 16%, compared to 22% last quarter. The sequential dollar increase in S,G&A is primarily the result of the inclusion of a full quarter of SG&A cost related to the August Technology merger and increased compensation expense. The Company expects that S,G&A will be approximately 16% of revenue in the third quarter of 2006.
Balance Sheet Strength
At June 30, 2006, the Company's cash and marketable securities totaled $74.4 million and the current ratio was 5.3 to 1.
The Company is currently anticipating revenue for the third quarter ending September 30, 2006 to be flat to up 5% compared to the 2006 second quarter, with growth re-accelerating in the fourth quarter. Earnings per share for the third quarter ending September 30, 2006 are forecast to range from $0.26 to $0.30 per diluted share, without giving effect to the sale of inventory stepped up in the purchase accounting for the August Technology merger.
Rudolph Technologies will be hosting a conference call 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
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 web site 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 including, but not limited
to, statements related to our expectations regarding our revenue and earnings
expectations for the third quarter, increases in customer orders and bookings,
future growth of our business, and the overall improvement in the market. 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) the integration of the businesses of Rudolph and August
may not be completed successfully, which may result in the combined company not
operating as effectively and efficiently as expected or such integration may be
more difficult, time-consuming or costly than expected; (6) expected combination
benefits from the merger may not be fully realized or realized within the
expected time frame; (7) revenues may be lower than expected; (8) costs,
customer loss and business disruption, including, without limitation,
difficulties in maintaining relationships with employees, customers, clients or
suppliers, may be greater than expected, or the effects of purchase accounting,
when finalized, may be different from the company's expectations; (9) the
industry may be subject to future regulatory or legislative actions that could
adversely affect the company; (10) the impact of a slowdown in the overall
economy; (11) uncertainty of the current global political environment; (12) the
potential for terrorist attacks; (13) changes in customer demands for our
existing and new products, the timing, cancellation or delay of customer orders
and shipments; (14) the timing of revenue recognition of shipments and services
provided; (15) changes in or an inability to execute our business strategy; (16)
unanticipated manufacturing or supply problems and (17) 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, 2005 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:
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