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Xcerra Corporation (NASDAQ:XCRA) announced financial results for its third fiscal quarter ended April 30, 2018. The company had a third quarter sales of $115.7 million with the GAAP net income attributable to Xcerra of $11.8 million or $0.21 per share. The company is primarily composed of two segments; semiconductor test solutions and electronics manufacturing solutions. …
Xcerra Corporation (NASDAQ:XCRA) announced financial results for its third fiscal quarter ended April 30, 2018.
The company had a third quarter sales of $115.7 million with the GAAP net income attributable to Xcerra of $11.8 million or $0.21 per share.
The company is primarily composed of two segments; semiconductor test solutions and electronics manufacturing solutions. Xcerra agreed to be acquired by Cohu Inc.
As quoted in the press release:
Net sales for the quarter were $115,717,000, compared to the prior quarter’s net sales of $110,276,000. GAAP net income attributable to Xcerra for the quarter was $11,754,000, or $0.21 per diluted share. Excluding restructuring and related provision charges of $452,000, amortization of purchased intangible assets of $128,000, and transaction related expenses of $778,000, non-GAAP net income attributable to Xcerra for the quarter was $13,112,000, or $0.24 per diluted share.
| Xcerra Corporation | |||||
| Consolidated Balance Sheets | |||||
| (in thousands) | |||||
| ASSETS | April 30, 2018 | July 31, 2017 | |||
| Current assets | |||||
| Cash and cash equivalents | $ | 127,807 | $ | 103,637 | |
| Marketable securities | 51,292 | 57,087 | |||
| Accounts receivable, net | 89,342 | 92,963 | |||
| Inventories, net | 88,523 | 81,509 | |||
| Prepaid expenses and other current assets | 13,633 | 19,087 | |||
| Assets held for sale | 850 | 994 | |||
| Total current assets | 371,447 | 355,277 | |||
| Property and equipment, net | 30,191 | 28,509 | |||
| Intangible assets, net | 8,330 | 8,752 | |||
| Goodwill | 45,873 | 43,850 | |||
| Other assets | 2,127 | 2,225 | |||
| Total assets | $ | 457,968 | $ | 438,613 | |
| LIABILITIES AND EQUITY | |||||
| Current liabilities | |||||
| Current portion of long-term debt | $ | 359 | $ | 3,779 | |
| Accounts payable | 32,017 | 36,249 | |||
| Other accrued expenses | 46,570 | 50,262 | |||
| Deferred revenues | 5,566 | 8,085 | |||
| Total current liabilities | 84,512 | 98,375 | |||
| Term Loan | 2,185 | 17,547 | |||
| Other long-term liabilities | 9,125 | 9,012 | |||
| Stockholders’ equity | 360,254 | 313,679 | |||
| Noncontrolling interest | 1,892 | – | |||
| Total liabilities and equity | $ | 457,968 | $ | 438,613 | |
| Xcerra Corporation | |||||||||||
| Consolidated Statements of Operations | |||||||||||
| (in thousands, except earnings per share data) | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
| April 30, | April 30, | ||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||
| Net sales | $ | 115,717 | $ | 103,635 | $ | 346,279 | $ | 263,845 | |||
| Cost of sales | 63,073 | 57,310 | 183,670 | 148,373 | |||||||
| Gross profit | 52,644 | 46,325 | 162,609 | 115,472 | |||||||
| Engineering and product development expenses | 17,117 | 15,581 | 50,848 | 45,891 | |||||||
| Selling, general, and administrative expenses | 22,560 | 21,523 | 65,830 | 58,069 | |||||||
| Amortization of purchased intangible assets | 128 | 148 | 423 | 518 | |||||||
| Restructuring | 3 | 187 | 688 | 592 | |||||||
| Income from operations | 12,836 | 8,886 | 44,820 | 10,402 | |||||||
| Other income (expense), net | 972 | (57 | ) | (1,361 | ) | 1,386 | |||||
| Income before provision for income taxes | 13,808 | 8,829 | 43,459 | 11,788 | |||||||
| Provision for income taxes | 1,898 | 1,281 | 6,074 | 1,650 | |||||||
| Net income | $ | 11,910 | $ | 7,548 | $ | 37,385 | $ | 10,138 | |||
| Net income attributable to noncontrolling interest | $ | 156 | $ | – | $ | 169 | $ | – | |||
| Net income attributable to Xcerra | $ | 11,754 | $ | 7,548 | $ | 37,216 | $ | 10,138 | |||
| Basic and diluted net income per share attributable to Xcerra: | |||||||||||
| Basic net income per share | $ | 0.21 | $ | 0.14 | $ | 0.68 | $ | 0.19 | |||
| Diluted net income per share | $ | 0.21 | $ | 0.14 | $ | 0.67 | $ | 0.19 | |||
| Weighted-average common shares used in computing net income per share: | |||||||||||
| Basic | 54,909 | 54,259 | 54,781 | 54,080 | |||||||
| Diluted | 55,788 | 55,043 | 55,813 | 54,661 | |||||||
| Xcerra Corporation | |||||||||||||||
| Reconciliation of GAAP Net Income to Non-GAAP Net Income | |||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months | Basic | Diluted | Three Months | Basic | Diluted | ||||||||||
| Ended | Earnings | Earnings | Ended | Earnings | Earnings | ||||||||||
| April 30, 2018 | Per Share | Per Share | April 30, 2017 | Per Share | Per Share | ||||||||||
| GAAP net income attributable to Xcerra | $ | 11,754 | $ | 0.21 | $ | 0.21 | $ | 7,548 | $ | 0.14 | $ | 0.14 | |||
| Legal and transaction fees | 778 | 0.01 | 0.01 | 1,341 | 0.02 | 0.02 | |||||||||
| Acceleration of debt financing costs | – | – | – | – | – | – | |||||||||
| Amortization of purchased intangible assets | 128 | 0.00 | 0.00 | 148 | 0.00 | 0.00 | |||||||||
| Restructuring and related provisions | 452 | 0.01 | 0.01 | 187 | 0.00 | 0.00 | |||||||||
| Non-GAAP net income attributable to Xcerra | $ | 13,112 | $ | 0.24 | $ | 0.24 | $ | 9,224 | $ | 0.17 | $ | 0.17 | |||
| Weighted average shares outstanding | 54,909 | 55,788 | 54,259 | 55,043 | |||||||||||
| Nine Months | Basic | Diluted | Nine Months | Basic | Diluted | ||||||||||
| Ended | Earnings | Earnings | Ended | Earnings | Earnings | ||||||||||
| April 30, 2018 | Per Share | Per Share | April 30, 2017 | Per Share | Per Share | ||||||||||
| GAAP net income attributable to Xcerra | $ | 37,216 | $ | 0.68 | $ | 0.67 | $ | 10,138 | $ | 0.19 | $ | 0.19 | |||
| Legal and transaction fees | 1,948 | 0.04 | 0.03 | 1,844 | 0.03 | 0.03 | |||||||||
| Acceleration of debt financing costs | 891 | 0.02 | 0.02 | – | – | – | |||||||||
| Amortization of purchased intangible assets | 423 | 0.01 | 0.01 | 518 | 0.01 | 0.01 | |||||||||
| Restructuring and related provisions | 1,657 | 0.03 | 0.03 | 592 | 0.01 | 0.01 | |||||||||
| Non-GAAP net income attributable to Xcerra | $ | 42,135 | $ | 0.77 | $ | 0.75 | $ | 13,092 | $ | 0.24 | $ | 0.24 | |||
| Weighted average shares outstanding | 54,781 | 55,813 | 54,080 | 54,661 | |||||||||||