EX-99.1 2 ex991q12016.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1

RUDOLPH TECHNOLOGIES REPORTS 2016
FIRST QUARTER RESULTS

•
Strong Sales of Process Control Solutions Drive Increase in Results to High-End of Guidance

WILMINGTON, MASSACHUSETTS (May 2, 2016) - Rudolph Technologies, Inc. (NYSE: RTEC), a leading provider of process characterization equipment, lithography equipment and software for wafer fabs and advanced packaging facilities, today announced financial results for the 2016 first quarter.

2016 First Quarter Financial Highlights
•
First quarter revenue of $54.4 million increased 6 percent sequentially and was at the high end of the Company’s guidance.
•
Gross margins remained strong at 53 percent for the quarter, compared with 52 percent for the previous quarter. Non-GAAP gross margin was 54 percent in the 2016 first quarter.
•
GAAP net income of $13.9 million, or $0.44 per diluted share, included income from the completion of patent litigation; Non-GAAP net income of $5.7 million, or $0.18 per diluted share, was above the mid-point of Company guidance.
•
Record NSX® Inspection sales driven by strong sales into fan-out packaging applications.
•
Strong software sales comprised 14 percent of revenue.
•
JetStep® S Series Lithography System selected for panel fan-out packaging pilot line.


Key Financial Data for the Quarters Ended March 31, 2016, December 31, 2015
and March 31, 2015
(in thousands, except per share amounts)

US GAAP
 
March 2016
December 2015
March 2015
Revenue
$ 54,362
$ 51,057
$ 52,570
Gross profit margin
53.4%
52.2%
55.1%
Operating income
$ 21,137
$ 5,854
$ 5,117
Net Income
$ 13,939
$ 2,883
$ 1,848
Net income per diluted share
$ 0.44
$ 0.09
$ 0.06





US NON-GAAP
 
March 2016
December 2015
March 2015
Revenue
$ 54,362
$ 51,057
$ 52,570
Gross profit margin
53.5%
52.3%
55.2%
Operating income
$ 9,570
$ 8,466
$ 10,497
Net Income
$ 5,742
$ 5,085
$ 5,380
Net income per diluted share
$ 0.18
$ 0.16
$ 0.17

Michael Plisinski, chief executive officer, commented, “We are pleased with the start of our new year and the continued strength of our balanced business model, through which we serve a broad set of customers in a number of growth markets including advanced packaging, RF filters, and MEMS. Results for the first quarter were driven primarily by solid demand from multiple accounts for our process control solutions for advanced packaging applications. This demand has extended to our new 3D metrology option for our flagship NSX inspection platform, generating approximately $5 million in sales in the first quarter.”

Mr. Plisinski added, “Looking ahead, we see continued growth in fan-out and other advanced packaging processes, as well as growth coming from the RF filter market in which we have made significant inroads with our RF specific solution comprised of inspection, metrology, and software technologies. By working closely with our customers we can leverage Rudolph’s broad technology portfolio to provide comprehensive solutions to meet the highly technical challenges of our customers.”

First Quarter 2016 GAAP Financial Results
First quarter revenue totaled $54.4 million, a 6 percent increase as compared with $51.1 million for the 2015 fourth quarter. First quarter gross margin was 53 percent of revenues, compared to 52 percent in the 2015 fourth quarter. The increase in gross margin was primarily due to a change in product sales mix; specifically, stronger inspection and software sales in the quarter.
  
Operating expenses for the first quarter of 2016 totaled $7.9 million and included income from a $14.6 million patent litigation judgment. This compares with $20.8 million in operating expenses in the 2015 fourth quarter.

GAAP net income for the first quarter of 2016 was $13.9 million, or $0.44 per diluted share, compared with GAAP net income of $2.9 million, or $0.09 per diluted share, for the fourth quarter of 2015.

First Quarter Non-GAAP Financial Results
First quarter Non-GAAP net income was $5.7 million, or $0.18 per diluted share. Non-GAAP results excluded items that had a net impact of increasing GAAP income by $8.2 million, after tax, including a patent litigation judgment, share-based compensation expense, litigation expense and amortization of intangibles. In the 2015 fourth quarter, Non-GAAP net income was $5.1 million or $0.16 per diluted share. The fourth quarter Non-GAAP results excluded $2.2 million in expenses, after tax, that were included in the GAAP results related to share-based compensation expense, patent litigation expense and amortization of intangibles.





Balance Sheet
At March 31, 2016, cash and marketable securities totaled $148.2 million and did not include the judgment from the patent litigation. Accounts receivable increased $9.3 million to $64.7 million, and inventory increased to $74.1 million as of March 31, 2016. Working capital increased to $206.7 million at March 31, 2016.

Conference Call
Rudolph Technologies will discuss its 2016 first quarter results and other matters on a conference call it is hosting today at 4:30 PM EDT. To participate in the call, please dial (888) 438-5524 (Domestic) or (719) 457-2727 (International), and reference Conference ID # 7902946 at least five (5) minutes prior to the scheduled start time. A live webcast will also be available on the Company’s website at www.rudolphtech.com.

To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software.

There will be a replay of the conference call available from 8:00 pm EDT on May 2 until 11:59 pm EDT on May 9, 2016. To access the replay, please dial (888) 203-1112 (Domestic) or (719) 457-0820 (International) at any time during that period and use Conference ID #7902946.

A replay will also be available on the Company’s website at www.rudolphtech.com.

2016 Analyst Event (May 9, 2016 / New York Marriott Marquis Hotel)
Rudolph Technologies will host its annual Analyst Event on May 9, 2016 at the New York Marriott Marquis Hotel (New York City). The 2016 Analyst Event will highlight Rudolph’s evolution as a front-end and back-end value-added solutions provider by combining product services and software to solve customer problems. We will discuss market trends and industry challenges that Rudolph’s customers face, and the differentiated solutions Rudolph affords them to accelerate their process development. Speakers will be the General Managers from each of the business units.

Financial analysts, institutional investors and industry analysts interested in attending the event in person should contact Rudolph’s Investor Relations for registration information: Guerrant Associates / Laura Guerrant-Oiye / Principal / 808.882.1467 / lguerrant@guerrantir.com.

Discussion of Non-GAAP Financial Measures
In this press release, we have presented financial measures, which have not been determined in accordance with generally accepted accounting principles (GAAP) and are therefore non-GAAP financial measures. Non-GAAP financial measures exclude the amortization of intangible assets, the impact of patent litigation fees and judgment, and share-based compensation. We believe that this presentation of non-GAAP financial measures allows investors to better assess the Company’s operating performance by comparing it to prior periods on a more consistent basis. We have included a reconciliation of various non-GAAP financial measures to those measures reported in accordance with GAAP. To that end, non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. Because our calculation of non-GAAP financial measures may differ from similar measures used by other companies, investors should be careful when comparing our non-GAAP financial measures to those of other companies.





About Rudolph Technologies
Rudolph Technologies, Inc. is a leader in the design, development, manufacture and support of defect inspection, lithography, process control metrology, and process control software used by semiconductor and advanced packaging device manufacturers worldwide. Rudolph delivers comprehensive solutions throughout the fab with its families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market of their devices. Headquartered in Wilmington, Massachusetts, 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 (the “Act”) which include Rudolph’s business momentum and future growth; the benefit to customers of Rudolph’s products and customer service; Rudolph’s ability to both deliver products and services consistent with our customers’ demands and expectations and strengthen its market position; Rudolph’s expectations regarding the semiconductor market outlook; as well as other matters that are not purely historical data. Rudolph wishes to take advantage of the “safe harbor” provided for by the Act and cautions that actual results may differ materially from those projected as a result of various factors, including risks and uncertainties, many of which are beyond Rudolph’s control. Such factors include, but are not limited to, the Company’s ability to leverage its resources to improve its position in its core markets; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; and fluctuations in customer capital spending. Additional information and considerations regarding the risks faced by Rudolph are available in Rudolph’s Form 10-K report for the year ended December 31, 2015 and other filings with the Securities and Exchange Commission. As the forward-looking statements are based on Rudolph’s current expectations, the Company cannot guarantee any related future results, levels of activity, performance or achievements. Rudolph 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
Senior Vice President & CFO
973.448.4302
steven.roth@rudolphtech.com



Guerrant Associates
Laura Guerrant-Oiye
Principal
808.882.1467
lguerrant@guerrantir.com

Trade Press:
Amy Shay
952.259.1794
amy.shay@rudolphtech.com
                    
(tables to follow)






RUDOLPH TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) - (Unaudited)
 
 
 
 
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
 
(Audited)
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and marketable securities
 
$
148,241

 
$
161,478

Accounts receivable, net
 
64,747

 
55,492

Inventories
 
74,143

 
71,490

Prepaid and other assets
 
21,519

 
8,137

Total current assets
 
308,650

 
296,597

Net property, plant and equipment
 
13,950

 
12,346

Intangibles
 
34,493

 
35,088

Other assets
 
35,616

 
35,532

Total assets
 
$
392,709

 
$
379,563

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable and accrued liabilities
 
$
20,029

 
$
21,466

Senior convertible notes
 
58,863

 
57,846

Other current liabilities
 
23,037

 
20,019

Total current liabilities
 
101,929

 
99,331

Other non-current liabilities
 
10,269

 
9,554

Total liabilities
 
112,198

 
108,885

Stockholders’ equity
 
280,511

 
270,678

Total liabilities and stockholders’ equity
 
$
392,709

 
$
379,563



(tables to follow)







RUDOLPH TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) - (Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
Revenues
 
$
54,362

 
$
51,057

 
$
52,570

Cost of revenues
 
25,317

 
24,413

 
23,604

Gross profit
 
29,045

 
26,644

 
28,966

Operating expenses:
 
 
 
 
 
 
Research and development
 
12,446

 
10,334

 
10,360

Selling, general and administrative
 
9,499

 
9,856

 
12,974

Amortization
 
595

 
600

 
515

Patent litigation judgment
 
(14,632
)
 
—

 
—

Total operating expenses
 
7,908

 
20,790

 
23,849

Operating income
 
21,137

 
5,854

 
5,117

Interest expense, net
 
1,469

 
1,481

 
1,382

Other expense
 
107

 
194

 
638

Income before income taxes
 
19,561

 
4,179

 
3,097

Provision for income taxes
 
5,622

 
1,296

 
1,249

Net income
 
$
13,939

 
$
2,883

 
$
1,848

 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
Basic
 
$
0.45

 
$
0.09

 
$
0.06

Diluted
 
$
0.44

 
$
0.09

 
$
0.06

 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
Basic
 
30,957

 
31,016

 
31,928

Diluted
 
31,654

 
32,075

 
32,549


(tables to follow)





RUDOLPH TECHNOLOGIES, INC.
NON-GAAP FINANCIAL SUMMARY
(In thousands, except percentage and per share amounts) - (Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
Revenue
 
$
54,362

 
$
51,057

 
$
52,570

Gross profit
 
$
29,102

 
$
26,684

 
$
29,021

Gross margin as percentage of revenue
 
53.5
%
 
52.3
%
 
55.2
%
 
 
 
 
 
 
 
Operating expenses
 
$
19,532

 
$
18,218

 
$
18,524

Operating income
 
$
9,570

 
$
8,466

 
$
10,497

Operating margin as a percentage of revenue
 
17.6
%
 
16.6
%
 
20.0
%
 
 
 
 
 
 
 
Net income
 
$
5,742

 
$
5,085

 
$
5,380

Net income per diluted share
 
$
0.18

 
$
0.16

 
$
0.17


RECONCILATION OF U.S. GAAP GROSS PROFIT,
OPERATING EXPENSES AND OPERATING INCOME TO NON-GAAP
GROSS PROFIT, OPERATING EXPENSES AND OPERATING INCOME
(In thousands, except percentages) - (Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
U.S. GAAP gross profit
 
$
29,045

 
$
26,644

 
$
28,966

Pre-tax non-GAAP items:
 

 
 
 

Share-based compensation expense
 
57

 
40

 
55

Non-GAAP gross profit
 
$
29,102

 
$
26,684

 
$
29,021

U.S. GAAP gross margin as a percentage of revenue
 
53.4
%
 
52.2
%
 
55.1
%
Non-GAAP gross margin as a percentage of revenue
 
53.5
%
 
52.3
%
 
55.2
%
 
 
 
 
 
 
 
U.S. GAAP operating expenses
 
$
7,908

 
$
20,790

 
$
23,849

Pre-tax non-GAAP items:
 

 
 
 

Amortization of intangibles
 
595

 
600

 
515

Litigation fees
 
1,309

 
741

 
455

Patent litigation judgment
 
(14,632
)
 
—

 
—

Share-based compensation expense
 
1,104

 
1,231

 
4,355

Non-GAAP operating expenses
 
19,532

 
18,218

 
18,524

Non-GAAP operating income
 
$
9,570

 
$
8,466

 
$
10,497

GAAP operating margin as a percentage of revenue
 
38.9
%
 
11.5
%
 
9.7
%
Non-GAAP operating margin as a percentage of revenue
 
17.6
%
 
16.6
%
 
20.0
%
(table to follow)





RUDOLPH TECHNOLOGIES, INC.
RECONCILATION OF U.S. GAAP NET INCOME TO
NON-GAAP NET INCOME
(In thousands, except share and per share data) - (Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
U.S. GAAP net income
 
$
13,939

 
$
2,883

 
$
1,848

Pre-tax non-GAAP items
 

 
 
 

Amortization of intangibles
 
595

 
600

 
515

Litigation fees
 
1,309

 
741

 
455

Patent litigation judgment
 
(14,632
)
 
—

 
—

Share-based compensation expense
 
1,161

 
1,271

 
4,410

Net tax provision on non-GAAP items
 
3,370

 
(410
)
 
(1,848
)
Non-GAAP net income
 
$
5,742

 
$
5,085

 
$
5,380

Non-GAAP net income per diluted share
 
$
0.18

 
$
0.16

 
$
0.17




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