SAN JOSE, Calif., Jan. 25 /PRNewswire-FirstCall/ -- Photon Dynamics, Inc. , a global supplier utilizing advanced digital imaging technology of Liquid Crystal Display (LCD) yield enhancement systems and high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications, today announced that the Nasdaq Listing Qualifications Panel notified Photon Dynamics ("the Company") that the Company demonstrated compliance with all Nasdaq Marketplace Rules and the Panel determined to continue the listing of the Company's securities on The Nasdaq Stock Market.
Photon Dynamics reported financial results for its fourth quarter and fiscal year ended September 30, 2007. Revenue for the fourth quarter of fiscal 2007 was $24.5 million, compared to third quarter 2007 revenue of $14.4 million and $29.3 million reported for the same quarter a year ago. The net loss for the quarter was $3.4 million or $0.20 loss per share, compared to a net loss for the prior quarter of $8.7 million or $0.52 loss per share, and a restated net loss of $6.6 million or $0.39 loss per share for the same quarter a year ago.
Net loss for the fourth quarter of fiscal 2007 includes $3.7 million in charges, as follows:
-- Equity based compensation expense of $0.5 million -- Loss on sales of fixed assets of $0.1 million -- Acquired in-process research and development of $1.1 million -- Amortization of intangible assets of $0.6 million -- Restatement related expenses of $1.4 million
Non-GAAP net income for the fourth quarter was $0.3 million or $0.02 earnings per diluted share, compared to non-GAAP net loss for the prior quarter of $5.6 million or $0.34 loss per share, and a non-GAAP net loss of $4.9 million or $0.29 loss per share for the same quarter a year ago. Non-GAAP adjustments are further detailed in the accompanying Reconciliation of GAAP to Non-GAAP Results.
Bookings for the fourth quarter of fiscal 2007 were $29 million, and the Company posted a backlog of $45 million at the end of September 2007. The Company noted that bookings and backlog are not necessarily indicative of future revenue and that historically bookings have fluctuated on a quarter-to-quarter basis. These fluctuations in bookings may continue in the future.
For fiscal year ended September 30, 2007, revenue was $74.3 million, compared to revenue of $172.9 million for the year ended September 30, 2006. Net loss for the year ended September 30, 2007 was $35.1 million and loss per share was $2.09, compared to restated net income of $2.0 million and $0.12 earnings per diluted share for the year ended September 30, 2006.
Net loss for the fiscal 2007 includes $12.7 million in charges, as follows:
-- Write-down of excess inventory of $2.1 million due to order cancellation -- Equity based compensation expense of $2.0 million -- Restructuring charge of $1.4 million -- Impairment of fixed assets charge of $2.8 million -- Loss on sales of fixed assets of $0.1 million -- Acquired in-process research and development of $1.1 million -- Amortization of intangible assets of 1.7 million -- Restatement related expenses of $1.5 million
Non-GAAP net loss for fiscal 2007 was $22.4 million or $1.34 loss per share, compared to non-GAAP net income for the prior year of $7.6 million or $0.44 earnings per diluted share.
The Company's cash, cash equivalents, short-term and long-term investments were $85 million as of September 30, 2007.
Company Projections for First Quarter Fiscal Year 2008
The Company estimates revenue for the first quarter of fiscal 2008 to be between $15.5 and $16.5 million with net loss per share of $0.51 to $0.47.
Amtower Litigation
On January 16, 2008, the Sixth District Court of Appeal for the State of California upheld the trial court's judgment and award in favor of our Company and our former officers and affirmed the trial court award of approximately $445,000 in fees and costs and awarded additional costs and fees associated with the appeal.
Information Regarding Non-GAAP Financial Measures
Photon Dynamics provides non-GAAP net income and non-GAAP earnings per share data as additional information for its operating results. These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. Photon Dynamics' non-GAAP net income or loss and non-GAAP earnings per diluted share exclude the effect of SFAS 123 (R), restructuring charge, Impairment of fixed assets, gain or loss on sale of fixed assets, write-down of excess inventory due to cancelled order, acquired in-process research and development, amortization of intangible assets, income (loss) from discontinued operations and restatement expenses. Because SFAS 123 (R) is a material, non-cash item Photon Dynamics has also provided non-GAAP information excluding the impact of SFAS 123 (R). Management excludes the effect of SFAS 123 (R) and other charges as indicated, because management does not believe that these charges are directly applicable to the core operating performance of Photon Dynamics. Management believes that although GAAP measures are important for investors to understand, providing investors with this non-GAAP measure provides investors additional important information to enable them to assess, in the way that management assesses, both the current and future operations of Photon Dynamics.
About Photon Dynamics, Inc.
Photon Dynamics, Inc. is a global supplier utilizing advanced machine vision technology for market leading Liquid Crystal Display (LCD) flat panel display test and repair systems and for high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications. For more information about Photon Dynamics , visit its website at http://www.photondynamics.com/.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
The statements in this press release relating to Photon Dynamics' estimated financial results for the first quarter of fiscal 2008 are forward-looking statements. Certain statements in this press release are forward-looking statements. These forward-looking statements are based on current expectations on the date of this press release and involve a number of uncertainties and risks including but not limited and those risks and uncertainties described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Factors Affecting Operating Results" in Photon Dynamics' Annual Report on Form 10-K for the year ended September 30, 2007 as filed with the Securities and Exchange Commission. As a result, actual results may differ substantially from expectations. Photon Dynamics undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.
PHOTON DYNAMICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except June 30, September 30, share data) 2007 2006 2007 As Restated(1) ASSETS Current assets: Cash and cash equivalents $28,253 $47,935 $41,170 Short-term investments 55,909 54,834 42,640 Accounts receivable, net 18,927 29,341 11,934 Inventories 18,097 18,442 13,292 Refundable customs obligations 4,082 3,157 560 Other current assets 3,518 3,972 3,661 Total current assets 128,786 157,681 113,257 Long-term investments 4,147 787 1,176 Land, property and equipment, net 10,210 15,891 10,583 Other assets 4,826 4,542 5,365 Intangible assets, net 717 1,716 11,023 Goodwill 153 153 6,857 Total assets $148,839 $180,770 $148,261 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $7,033 $ 7,257 $4,217 Warranty 4,691 8,058 3,217 Employee notes payable -- 977 -- Customs obligations 11,144 8,673 4,114 Other current liabilities 9,679 8,967 9,874 Deferred gross margin 6,603 7,454 3,236 Total current liabilities 39,150 41,386 24,658 Long-term employee note payable -- -- 5,381 Other non-current liabilities 95 119 38 Total non-current liabilities 95 119 5419 Shareholders' equity: Common stock 288,376 285,416 300,290 Accumulated deficit (178,088) (146,431) (181,503) Accumulated other comprehensive income (loss) (693) 280 (603) Total shareholders' equity 109,595 139,265 118,184 Total liabilities and shareholders' equity $148,839 $180,770 $148,261 (1) See Note 2, "Restatements of Consolidated Financial Statements and Company Findings" to in Notes Consolidated Financial Statements. PHOTON DYNAMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except Quarter Ended Year Ended per share data) 9/30/2006 6/30/2007 9/30/2007 2006 2007 As As As restated(1) restated(1) restated(1) Revenue $29,259 $14,430 $24,474 $172,872 $74,267 Cost of revenue 25,580 11,215 15,605 114,205 56,374 Gross margin 3,679 3,215 8,869 58,667 17,893 Operating expenses: Research and development 7,280 6,213 5,404 32,577 26,747 Selling, general and administrative 3,784 5,831 5,879 24,506 23,076 Restructuring charge -- (95) -- 30 1,368 Impairment of property and equipment 31 -- -- 81 2,834 Loss (gain) on sale of property and equipment 58 -- 87 58 87 Acquired in-process research and development -- -- 1,110 -- 1,110 Amortization of intangible assets 372 254 654 1,489 1,653 Total operating expenses 11,525 12,203 13,134 58,741 56,875 Loss from operations (7,846) (8,988) (4,265) (74) (38,982) Interest income and other, net 717 327 853 2,803 4,190 Income (loss) from continuing operations before income taxes and discontinued operations (7,129) (8,661) (3,412) 2,729 (34,792) Provision for income taxes (195) 72 3 561 280 Income (loss) from continuing operations before discontinued operations 2,168 (35,072) (6,934) (8,733) (3,415) Income (loss) from discontinued operations 346 -- -- (127) -- Net income (loss) $(6,588) $(8,733) $(3,415) $2,041 $(35,072) Income (loss) per share from continuing operations: Basic $(0.41) $(0.52) $(0.20) $0.13 $(2.09) Diluted $(0.41) $(0.52) $(0.20) $0.13 $(2.09) Income (loss) per share from discontinued operations: Basic $0.02 $ -- $ -- $(0.01) $ -- Diluted $0.02 $ -- $ -- $(0.01) $ -- Net income (loss) per share: Basic $(0.39) $(0.52) $(0.20) $0.12 $(2.09) Diluted $(0.39) $(0.52) $(0.20) $0.12 $(2.09) Weighted average number of shares: Basic 16,849 16,635 17,434 16,978 16,814 Diluted 16,849 16,635 17,434 17,011 16,814 (1) See Note 2, "Restatements of Consolidated Financial Statements and Company Findings" to in Notes Consolidated Financial Statements. Non-GAAP Net Income (Loss) Reconciliation For All Non-GAAP Items Year Ended Quarter Ended September (In thousands, except 9/30/2006 6/30/2007 9/30/2007 2006 2007 per share data) As As As restated(1) restated(1) restated(1) GAAP net income (loss) $(6,588) $(8,733) $(3,415) $2,041 $(35,072) Write-down of excess inventory due to order cancellation 2,144 2,144 Stock-based employee compensation expense 929 507 460 3,985 1,973 Restructuring charge -- 95 -- 30 1,368 Impairment of property and equipment 31 -- 81 2,834 Loss (gain) on sale of property and equipment 58 87 58 87 Acquired in-process research and development -- 1,110 -- 1,110 Amortization of intangible assets 372 254 654 1,489 1,653 Loss (income) from discountinued operations 346 -- (127) -- Restatement related expense -- 88 1,416 -- 1,504 Non-GAAP net income (4,852) (5,645) 312 7,557 (22,399) Non-GAAP Net Income (Loss) Per Diluted Share Reconciliation For All Non-GAAP Items GAAP net income (loss) per share - diluted $(0.39) $(0.52) $(0.20) $0.12 $(2.09) Write-down of excess inventory due to order cancellation -- 0.13 -- -- 0.13 Stock-based employee compensation expense 0.06 0.03 0.03 0.23 0.12 Restructuring charge -- 0.01 -- 0.00 0.08 Impairment of property and equipment 0.00 -- -- 0.00 0.17 Loss (gain) on sale of property and equipment 0.00 -- 0.00 0.00 0.01 Acquired in-process research and development -- -- 0.06 -- 0.07 Amortization of intangible assets 0.02 0.02 0.04 0.09 0.10 Loss (income) from discountinued operations 0.02 -- -- (0.01) -- Restatement related expense -- 0.0 0.08 -- 0.1 Non-GAAP net income (loss) per share - diluted $(0.29) $(0.34) $0.02 $0.44 $(1.34) Shares used in basic shares calculation 16,849 16,635 17,434 16,978 16,814 Shares used in diluted shares calculation 16,849 16,635 17,434 17,011 16,814
