EX-99.1 2 v083735_ex99-1.htm
News Release
FOR IMMEDIATE RELEASE

At Nextest Systems Corporation:
So-Yeon Jeong
408.817.7276
sjeong@nextest.com



Nextest Announces Fourth Quarter and Fiscal Year 2007 Results


San Jose, California (August 9, 2007) Nextest Systems Corporation (NASDAQ: NEXT), a leader in the manufacture of automatic test equipment (ATE) for low-cost semiconductor manufacturing, today reported financial results for its fiscal fourth quarter ended June 30, 2007.

Revenue for the quarter ended June 30, 2007 was $13,780,000, down 35 percent from the March 2007 quarter revenue of $21,152,000 and down 47 percent from the June 2006 quarter revenue of $26,069,000. Net loss for the quarter was $641,000, or $0.04 per diluted share, compared with net income of $1,459,000 or $0.08 per diluted share in the March 2007 quarter. Net income for the June 2006 quarter was $4,596,000 or $0.24 per diluted share.
 
New orders for the quarter were $15.8 million. Backlog at the end of June 2007 was $19.5 million.
 
For the fiscal year ended June 30, 2007, revenue was $79,721,000, down 9 percent compared with $87,669,000 in the preceding fiscal year. Net income available to common stockholders for the fiscal year 2007 was $7,817,000, or $0.42 per diluted share, compared with net income available to common stockholders of $3,335,000, or $0.27 per diluted share in the fiscal year 2006, which included accretion of the then-outstanding Series B preferred stock in the amount of $7,753,000.
 
Robin Adler, chairman and CEO of Nextest, commented, “Adverse market conditions have challenged the profitability of our flash memory customers in the first half of 2007, leading to reduced or delayed investments in additional test capacity, and the loss we reported in the June quarter.  Looking forward to the second half, the outlook in flash memory and in other markets we serve is improving.  Flash pricing has firmed, bits are continuing to grow sharply, and customers are responding by adding capacity.  All of this bodes well for the company and we expect to be profitable in the September quarter.”
 
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First Quarter Fiscal 2008 Outlook
 
Net revenue in the first quarter of fiscal 2008 is expected to be between $18 million and $22 million, with earnings per diluted share between $0.03 and $0.09. The fully diluted share count is estimated to be approximately 19 million at the end of the first quarter.
 
Conference Call/Webcast
 
Nextest Systems Corporation will be conducting its conference call today, August 9, 2007, at 2:00 p.m. Pacific Time. The call will be simultaneously webcast at www.nextest.com (click on "Investors"). A replay will be available for two weeks via telephone starting approximately two hours after the completion of the call. The replay may be accessed by calling 888-286-8010 in the US and Canada, or 617-801-6888 outside the US and Canada, and entering conference code 24271676, or by visiting www.nextest.com and clicking on "Investors" for a link to the replay. The replay will be available via telephone and website through August 23, 2007.  
 
About Nextest Systems Corporation
 
Nextest Systems Corporation is a low-cost leader in the design and manufacture of automatic test equipment (ATE) for Flash memory and System-On-Chip semiconductors. Nextest’s products address the growing demand from manufacturers for ATE with increased throughput, functionality and reliability, while reducing time to market and cost of test. Nextest has shipped over 1,800 systems to more than 60 semiconductor companies worldwide. Further information is available at www.nextest.com.

Forward-looking Statements
 
The statements made in this press release, other than statements of historical facts, are forward-looking statements that involve risks and uncertainties. These statements include those relating the company's financial performance, products, customers, success of new products and business prospects. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," or "continue," the negative of these terms or other comparable terminology. These statements involve a number of risks and uncertainties, including the cyclical nature of the semiconductor industry, the success of the market penetration of our products, our dependence on suppliers and subcontractors, the concentration of our customers and other risks and uncertainties. Nextest Systems Corporation does not intend to update or revise any forward-looking statements whether as a result of new developments or otherwise.
 
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NEXTEST SYSTEMS CORPORATION 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(in thousands, except per share data) 
 
     
Quarter Ended
    
Fiscal Year Ended 
 
     
Jun. 30, 
   
Mar. 24, 
    
Jun. 24, 
   
Jun. 30, 
   
Jun. 24, 
 
     
2007
    
2007 
   
2006 
    
2007 
   
2006 
  
                                 
Net revenue    $ 13,780  
$
21,152
  
$
26,069
   $ 79,721  
$
87,669
  
                                 
Cost of revenue 
   
6,705
   
10,375
   
11,844
   
37,636
   
42,161
 
                                 
Gross profit 
   
7,075
   
10,777
   
14,225
   
42,085
   
45,508
 
                                 
Operating expenses: 
                     
Research and development 
   
2,808
   
2,634
   
2,284
   
9,817
   
8,394
 
Sales, general and administrative 
   
6,462
   
6,659
   
5,991
   
24,298
   
21,666
 
                                 
Total operating expenses 
   
9,270
   
9,293
   
8,275
   
34,115
   
30,060
 
                                 
Income (loss) from operations 
   
(2,195
)
  
1,484
   
5,950
   
7,970
   
15,448
 
                                 
Interest and other income, net 
   
945
   
835
   
936
   
3,419
   
1,248
 
                                 
Income (loss) before taxes 
   
(1,250
)
  
2,319
   
6,886
   
11,389
   
16,696
 
                                 
Income tax (provision) benefit 
   
609
    
(860
)
  
(2,290
)
  
(3,572
)
  
(5,608
)
                                 
Net income (loss) 
   
(641
)
  
1,459
   
4,596
   
7,817
   
11,088
 
                                 
Accretion of Series B preferred stock redemption value 
   
-
   
-
    
-
    
-
    
(7,753
)
                                 
Net income (loss) available to common stockholders 
 
$
(641
)
$
1,459
 
$
4,596
  
$
7,817
  
$
3,335
  
                                 
Basic net income (loss) per share 
                     
available to common shareholders: 
                     
Net income (loss) per common share, basic 
 
$
(0.04
)
$
0.08
 
$
0.26
  
$
0.44
  
$
0.31
  
Weighted average number of shares used in 
                     
per share calculation, basic 
   
17,755
   
17,659
   
17,450
   
17,630
   
10,883
 
                                 
Diluted net income (loss) per share 
                     
available to common shareholders: 
                     
Net income (loss) per common share, diluted 
 
$
(0.04
)
$
0.08
 
$
0.24
 
$
0.42
  
$
0.27
  
Weighted average number of shares used in 
                     
per share calculation, diluted 
   
17,755
   
18,780
   
18,775
   
18,786
   
12,141
 
                                 
Stock-based compensation expense is included in: 
                     
Cost of revenue 
 
$
59
 
$
47
 
$
49
 
$
182
  
$
188
  
Research and development 
   
210
   
157
   
141
   
617
   
687
 
Sales, general and administrative 
   
506
   
330
   
200
   
1,244
   
992
 
Total 
 
$
775
  
$
534
 
$
390
  
$
2,043
  
$
1,867
  

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NEXTEST SYSTEMS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
               
               
   
Jun. 30,
  
Mar. 24,
  
Jun. 24,
  
   
2007
  
2007
  
2006
  
ASSETS
  
 
  
 
  
 
  
Current assets:
              
Cash and cash equivalents
  
$
54,916
  
$
45,627
  
$
68,667
  
Short-term investments
    
28,313
   
28,975
   
-
 
Accounts receivable, net
   
7,750
   
23,835
   
16,518
 
Inventory
    
25,312
   
21,345
   
26,099
 
Deferred tax assets
    
2,677
   
2,741
   
2,976
 
Restricted cash
    
212
   
-
   
-
 
Prepaid expenses, taxes and other current assets
    
6,154
   
1,873
   
1,118
 
Total current assets
    
125,334
   
124,396
   
115,378
 
Property and equipment, net
    
5,373
   
3,886
   
3,868
 
Restricted cash
    
5
   
217
   
317
 
Deferred tax assets
    
1,714
   
1,847
   
1,067
 
Other assets
    
289
   
594
   
466
 
Total assets
  
$
132,715
  
$
130,940
  
$
121,096
  
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY
                    
Current liabilities:
                    
Accounts payable
  
$
4,920
  
$
3,368
  
$
2,585
  
Accrued liabilities
    
5,128
   
4,837
   
5,946
 
Deferred income
    
2,793
   
3,305
   
4,890
 
Income tax payable
    
1,265
   
1,956
   
1,163
 
Total current liabilities
    
14,106
   
13,466
   
14,584
 
Deferred income
    
310
   
307
   
458
 
Other liabilities
    
809
   
501
   
202
 
Total liabilities
    
15,225
   
14,274
   
15,244
 
                     
                     
Stockholders’ equity
    
117,490
   
116,666
   
105,852
 
                     
Total liabilities and stockholders' equity
  
$
132,715
  
$
130,940
  
$
121,096
  

 
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