Rudolph Technologies Posts 2Q Revenue

Rudolph Technologies, a provider of process characterization equipment and software for wafer fabs and advanced packaging facilities, recently announced financial results for the second quarter of 2009.

Paul F. McLaughlin, Chairman and Chief Executive Officer said, "We were extremely pleased as the quarter progressed and our business continued to strengthen, particularly our portfolio of back-end products and services. There was strength across our full line-up of new tools, led by our new bump metrology and inspection products. Most important, that back-end upward momentum continued in July and we are beginning to get more positive on front-end growth for second half of 2009 as well.

"On August 3, we closed on the purchase of Adventa Control Technologies of Plano, TX. This acquisition is a strategic purchase of a company with an uninterrupted eleven year history of profitable operations. We will name this operation the Process Control Group (PCG), move it to our facility in Richardson, TX and make it part of our Data Analysis & Review Business Unit. We are forecasting PCG to be accretive immediately. Rudolph paid $5 million in cash for Adventa, which was approximately 85 percent of Trailing Twelve Month (TTM) revenues. These revenues have been severely depressed due to macro-economic issues, as has been the case for Rudolph's revenues in the corresponding TTM period, and are down from peak revenues of approximately $14 million. We see excellent growth opportunities with PCG, not only for its much-admired Fault Detection & Classification and Run-to-Run control software, but also for the positive effects it will have on our tool businesses."

In a release dated August 6, the company stated:

- The company's second quarter revenue totaled $15.3 million, a 39 percent increase compared to $11.1 million for the first quarter of 2009. During the second quarter, international sales represented approximately 78 percent of revenue while domestic sales accounted for 22 percent. In the 2009 first quarter, international sales represented approximately 48 percent of revenue and domestic sales accounted for 52 percent. The shift in international sales is due to the recovery of our back-end business, which is primarily located in Asia.

- Net loss for the second quarter of 2009 was $8.6 million or $0.28 per share, compared to a net loss of $10.1 million or $0.33 per share in the first quarter of 2009. Excluding the impact of $3.0 million in non-GAAP adjustments, which includes under-utilized manufacturing facilities costs, litigation expenses, tax adjustments, as well as other charges, the second quarter non-GAAP net loss was $5.6 million or $0.18 per share. The first quarter 2009 net loss included similar items in addition to an accounts receivable write-down and restructuring charges all totaling $3.4 million or $0.11 per share.

- Second quarter gross margin was 35 percent and was negatively impacted by under-utilized manufacturing facilities costs and acquired inventory sold in the quarter that was written up to fair value in purchase accounting. Excluding these items, gross margins would have been approximately 44 percent in the 2009 second quarter.

- Research and development (R&D) expenses for the second quarter totaled $6.0 million, compared to $6.7 million in the first quarter of 2009. The quarter-over-quarter decrease in R&D was due to reduced compensation cost, lower project costs as part of the company's cost reduction efforts and lower litigation costs.

- Selling, general and administrative (S,G&A) expenses totaled $7.8 million in the 2009 second quarter compared to $6.3 million in the first quarter of 2009. The quarter-over-quarter increase in S,G&A was primarily due to foreign currency exchange losses as the U.S. dollar weakened against currencies where the company maintains foreign operations. In the 2009 first quarter, the company had recorded foreign currency exchange gains.

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