EX-99 3 a4585599ex99.txt ADE EX99.1 Exhibit 99.1 ADE Corporation Continues Sequential Growth of Revenues and Net Income in Third Fiscal Quarter WESTWOOD, Mass.--(BUSINESS WIRE)--March 2, 2004-- Reports Further Increases in Bookings and Backlog ADE Corporation (Nasdaq: ADEX), a leading supplier of production metrology and inspection systems for the semiconductor wafer, semiconductor device, magnetic storage and optics manufacturing industries, today reported its financial results for the third quarter ended January 31, 2004. ADE's revenue grew to $23.1 million in the third quarter of fiscal 2004, up 14 percent compared with $20.2 million for the second quarter of fiscal 2004 and up 25 percent compared with $18.5 million for the third quarter of fiscal 2003. ADE's net income for the third quarter was $2.0 million, or $0.14 per diluted share. This compares with net income of $1.7 million, or $0.12 per diluted share, in the second quarter of fiscal 2004 and net income of $594,000, or $0.04 per diluted share, in the third quarter of fiscal 2003. In the quarter ended October 31, 2003, ADE's net income figure had included a tax refund of approximately $360,000. "Acceleration in growing 300mm wafer utilization and continued 200mm capacity expansion generated another quarter of strengthened demand for ADE's advanced tools," said Dr. Chris L. Koliopoulos, ADE's president and chief executive officer. "During our third fiscal quarter, customer interest in our AWIS(TM) Advanced Wafer Inspection System was particularly strong, reflecting ADE's ability to gain share in this important particle tool market segment. And our AFS(TM) Advanced Flatness System and WaferSight high-resolution optical tools continue to set the standard for wafer flatness metrology around the globe." ADE increased its backlog by 16 percent sequentially to $36.6 million on January 31, 2004 from $31.5 million on October 31, 2003. Business activity remained strongest for ADE in Japan during the third fiscal quarter as major wafer suppliers announced further expansion of 300mm capacity, followed by further orders from Asia. For the quarter, the Company generated 40 percent of its revenue in Japan, 31 percent in the Asia Pacific region, 17 percent in Europe and 12 percent in the United States. ADE's revenue breakdown by end market for the third fiscal quarter was 80 percent bare wafer, 10 percent device and 10 percent magnetic data storage. Gross margin increased to 51 percent during the third fiscal quarter, compared with 49 percent in the second quarter of fiscal 2004, reflecting improvements in operational efficiencies and changes in sales mix. Cash and cash equivalents totaled $34.7 million at January 31, 2004 compared with $21.5 million at the end of fiscal 2003. This increase was achieved primarily through ADE's positive operating cash flow and the sale of certain assets. ADE Chief Financial Officer Brian James said, "The third fiscal quarter was a resounding success for ADE from a financial perspective. The Company exceeded virtually every target that we had set for the business, including our revenue and earnings guidance. We are seeing many of our cost structure actions provide improving margins that are flowing through to the bottom line. Given the continued growth in our backlog and our enhanced operating leverage, we believe that we can post even stronger results to close out the fiscal year." Looking Ahead "Forecasts of expansion for silicon demand throughout 2004 with continuing sustainable growth into 2005, are growth indicators for ADE. We are ready with our advanced suite of metrology and inspection tools to meet the needs of our customers during this industry upcycle," added Dr. Koliopoulos. "During the fourth fiscal quarter and beyond, we will continue to focus on maintaining our technology leadership with further advances in our product lines, growing our profits and increasing value for our shareholders." For the fourth quarter of fiscal 2004, ADE anticipates that revenues will increase sequentially by approximately eight to 12 percent. Gross margins for the fourth quarter are expected to be in the range of 50 to 52 percent. ADE expects that it will report net income of between $0.17 to $0.22 per share for the fourth quarter of fiscal 2004, based on 14.2 million shares outstanding. "Our visibility continues to improve, and we are reasonably confident that we can see further gains in revenues and profitability as we begin fiscal 2005," said Mr. James. Conference Call Reminder ADE will host a conference call and webcast on Wednesday, March 3, 2004 at 8:30 a.m. Eastern Time (ET) to discuss these financial results. To participate in the webcast, please visit the "Investor Relations" section at the ADE website, located at www.ade.com. A replay of the call will be available on the website two hours after the completion of the conference call and will continue to be available for a period of one year. About ADE Corporation ADE Corporation is a leading supplier of metrology and inspection systems required for production in the silicon wafer, semiconductor device, magnetic data storage and optics manufacturing industries. The Company's systems analyze and report product quality at critical manufacturing process steps for yield enhancement, providing quality certification data that is relied upon by semiconductor wafer, device and computer disk manufacturers. The Company's systems also are used for production measurements in the semiconductor chip fabrication process. To learn more about ADE, visit the Company's Web site at http://www.ade.com. This news release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Those statements that make reference to the Company's expectations, predictions, assumptions and anticipations should be considered forward-looking statements. These statements include, but are not limited to those associated with expected demand in the wafer, device and data storage markets as well as the Company's ability to capitalize on this demand; and the Company's financial performance for the fourth quarter of fiscal 2004 and early fiscal 2005. These statements involve risks and uncertainties including those associated with the strength of the semiconductor, data storage and device markets; wafer pricing and wafer demand; the results of its product development efforts; the success of ADE's product offerings to meet customer needs within the timeframes required by customers in these markets; the Company's growth in backlog and enhanced operating leverage; the Company's ability to increase gross margins; its visibility; and the effects of the real estate market on the Company's property initiatives. ADE disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information on potential factors that could affect ADE Corporation's business is described in the Company's reports on file with the Securities and Exchange Commission, including its Form 10-K for the fiscal year ended April 30, 2003. Attached are the Company's condensed consolidated statements of operations and balance sheets. ADE CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) Three months ended Nine months ended January 31 January 31 ----------------- ----------------- 2004 2003 2004 2003 -------- -------- -------- -------- Revenue $23,129 $18,465 $62,401 $51,261 Cost of revenue 11,430 9,492 32,184 28,441 -------- -------- -------- -------- Gross profit 11,699 8,973 30,217 22,820 -------- -------- -------- -------- Operating expenses: Research and development 3,688 3,637 11,090 12,829 Marketing and sales 3,006 2,584 7,420 8,294 General and administrative 3,432 2,094 8,094 7,389 Restructuring charges - - 393 1,588 -------- -------- -------- -------- Total operating expenses 10,126 8,315 26,997 30,100 -------- -------- -------- -------- Income (loss) from operations 1,573 658 3,220 (7,280) Gain on sale of long-term investment - - 1,729 - Gain on sale of marketable securities 398 - 398 - Interest and other income (expense), net 61 (160) (42) (368) -------- -------- -------- -------- Income (loss) before provision for (benefit from) income taxes and equity in net earnings of affiliated companies 2,032 498 5,305 (7,648) Provision for (benefit from) income taxes 11 36 (174) 71 -------- -------- -------- -------- Income (loss) before equity in net earnings of affiliated companies 2,021 462 5,479 (7,719) Equity in net earnings of affiliated companies - 132 48 102 -------- -------- -------- -------- Net income (loss) $2,021 $594 $5,527 $(7,617) ======== ======== ======== ======== Basic earnings (loss) per share $0.15 $0.04 $0.40 $(0.56) Diluted earnings (loss) per share $0.14 $0.04 $0.39 $(0.56) Weighted average shares outstanding - basic 13,934 13,721 13,859 13,699 Weighted average shares outstanding - diluted 14,250 13,742 14,077 13,699 ADE CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) January April 31, 2004 30, 2003 Assets Cash and cash equivalents $34,702 $21,476 Marketable securities 1,334 1,060 Accounts receivable, net 18,674 13,385 Inventories 32,797 29,349 Other current assets 944 1,046 --------- --------- Total current assets 88,451 66,316 Fixed assets, net 11,120 20,923 Investments 503 3,724 Restricted cash 635 3,157 Other assets 6,705 6,996 --------- --------- Total assets $107,414 $101,116 ========= ========= Liabilities and Stockholders' Equity Total current liabilities $19,548 $16,237 Deferred gain on sale-leaseback 1,637 - Long-term debt 3,651 10,082 Total stockholders' equity 82,578 74,797 --------- --------- Total liabilities and stockholders' equity $107,414 $101,116 ========= ========= CONTACT: ADE Corporation Brian James, 781-467-3500