LeCroy Corporation Reports Record Sales For Third-Quarter Fiscal 2001

Market Demand for Newly Introduced Oscilloscope Product Drives Top-line

Performance



Apr 18, 2001, 01:00 ET from LeCroy Corporation

    CHESTNUT RIDGE, N.Y., April 18 /PRNewswire/ -- LeCroy Corporation
 (Nasdaq: LCRY), a leading supplier of high-performance digital oscilloscopes,
 today announced financial results for the third quarter and nine months ended
 March 31, 2001.
 
     Third-Quarter Financial Results
     Revenues for the third quarter of fiscal 2001 increased nearly 20% to a
 record $37.1 million, compared with $31.0 million for the year-earlier third
 quarter.  Third-quarter operating income grew to $3.3 million, from $2.9
 million a year ago.  Net income from continuing operations for the third
 quarter of fiscal 2001 was $2.6 million, or $0.27 per diluted share, compared
 with net income from continuing operations of $1.9 million, or $0.23 per
 diluted share, for the third quarter of fiscal 2000.
 
     Nine-Month Fiscal 2001 Financial Results
     Revenues for the first nine months of fiscal 2001 rose nearly 15% to
 $100.9 million, from $87.9 million for the comparable period in fiscal 2000.
 Operating income for the first nine months of fiscal 2001 increased to $6.6
 million, compared with $4.4 million for the same period in fiscal 2000.  Net
 income from continuing operations for the first nine months of fiscal 2001 was
 $5.0 million, or $0.54 per diluted share, compared with net income from
 continuing operations, excluding a $2.5 million pre-tax gain on the sale of
 marketable securities, of $3.1 million, or $0.37 per diluted share, for the
 first nine months of fiscal 2000.
 
     Comments on the Third Quarter
     "This was another excellent quarter for LeCroy," said Tom Reslewic,
 president and chief operating officer.  "We continued to execute on our
 strategy of aggressive new-product launches to further penetrate the high-end
 oscilloscope market.  Demand for these new products enabled LeCroy to generate
 record sales during the quarter despite the weaker economy, and set the stage
 for robust performance for the remainder of fiscal 2001."
     "After introducing the first product in our WavePro line during the second
 quarter, we successfully launched our Waverunner-2 oscilloscope this past
 quarter," Reslewic continued.  "Waverunner-2 rapidly became a tremendous hit
 with our customers in the 200 MHz to 500 MHz market segment.  The market's
 response to WavePro and Waverunner-2 demonstrates that LeCroy's aggressive
 two-year technology development program was on target.  This program has
 produced an array of innovations, including proprietary chip designs, digital
 signal processing tools and software designs. We are now translating these
 innovations into new oscilloscope products that our customers find
 compelling."
     "Looking forward, we have a pipeline of additional new products that
 should expand LeCroy's total available markets and enable us to achieve our
 goal of doubling oscilloscope revenues over the next three to four years,"
 Reslewic said.  "We are well on our way toward accomplishing this goal.  Fully
 65% of the record $37.1 million in sales we posted for the third quarter came
 from products introduced within the past six months."
     Commenting on technology development, Reslewic said, "In our third
 quarter, we made excellent progress toward introducing a breakthrough
 oscilloscope platform based on silicon germanium ("SiGe") technology.
 Products based on this technology, which we expect to introduce before the end
 of Calendar 2001, will expand our addressable market by about 20%."
     Stated Reslewic, "We are continuing to execute our strategy of increasing
 our addressable share of the oscilloscope market by introducing new products
 each quarter.  Our sales concentration in the R&D market segment as well as
 the appeal of our new products is helping us thrive despite the current
 economic environment."
     FY01 Review and Outlook
     LeCroy Chief Executive Officer Lutz Henckels stated, "We have delivered
 very solid and impressive performance despite the recent turbulent economic
 environment. During the current fiscal year we have made significant
 accomplishments, both operationally and financially, including:
 
     -- Successful Introduction of New Products:
        --   WavePro -- October 2000
        --   Waverunner-2 -- January 2001
        --   In Q3 65% of Product Sales came from Products less than 6 months
             old
     -- Product Bookings Growth in FY01, excluding Kelly Air Force Base
        contract:
        --   18.3% in Q1
        --   32.2% in Q2
        --   16.5% in Q3
     -- Total Sales Growth in FY01:
        -- 8.3%  in Q1, 10.8% excluding foreign exchange
        -- 15.8% in Q2, 21.8% excluding foreign exchange
        -- 19.6% in Q3, 24.4% excluding foreign exchange
     -- Gross Margins Improvement:
        -- Q4FY00    48.7%
        -- Q1FY01    50.2%
        -- Q2FY01    51.2%
        -- Q3FY01    52.0%
 
     Consequently, despite the severity of the current economic downturn, we
 are maintaining our previous targets for the fourth-quarter of fiscal 2001.
 These targets include revenues of $38.0 million, operating income of $4.1
 million, and earnings of $0.33 per diluted share.  This would result in
 revenue of $139.0 million, with operating income of $10.7 million, and
 earnings of $0.88 per diluted share for the full 2001 fiscal year," Henckels
 concluded.
 
     The Company will revise its interim financial statements for the quarter
 ended December 31, 2000 to adopt the guidance provided by the Financial
 Accounting Standards Board's Emerging Issues Task Force ("EITF") Issue No. 00-
 27 "Application of EITF Issue No. 98-5, 'Accounting for Convertible Securities
 with Beneficial Conversion Features or Contingently Adjustable Conversion
 Ratios,' to Certain Convertible Instruments."  In June 1999, the Company
 recorded a $1.8 million non-cash conversion discount charge to reflect the
 difference between the value of the conversion feature of its newly issued
 convertible redeemable preferred stock and the fair value of its preferred
 stock.  EITF No.00-27 adjusts the calculation of this conversion discount
 charge by requiring that the fair value of the preferred stock be reduced by
 the value assigned to warrants to buy common stock that were issued with the
 preferred stock.  As a result, the Company will record an additional $1.8
 million non-cash conversion discount charge which will be presented as the
 cumulative effect of a change in accounting principle in determining net
 income available to common shareholders.
 
     Safe Harbor
     This release contains forward-looking statements pertaining to future
 financial projections and future anticipated plans, including the Company's
 success in selling the WavePro and Waverunner-2 oscilloscopes, market trends,
 introducing new products over the remainder of calendar 2001, the Company's
 projections regarding financial performance in the fourth fiscal quarter and
 in fiscal 2001, the Company's short- and long-term growth, as well as other
 estimates relating to future operations.  All such forward-looking statements
 are only estimates of future results, and there can be no assurance that
 actual results will not materially differ from expectations.  Actual
 performance and results of operations may differ materially from those
 projected or suggested in the forward-looking statements due to certain risks
 and uncertainties including, without limitation, volume and timing of orders
 received, changes in the mix of products sold, competitive pricing pressure,
 the Company's ability to anticipate changes in the market, the availability
 and timing of funding for the Company's current products and the development
 of future products. Further information on potential factors that could affect
 LeCroy Corporation's business is described in the Company's reports on file
 with the Securities and Exchange Commission
 
     About LeCroy
     LeCroy Corporation, headquartered in Chestnut Ridge, New York, develops
 manufactures and markets electronic signal acquisition and analysis products
 and services.  The Company's core business is the production of high-
 performance digital oscilloscopes, which are used by design engineers and
 researchers in a broad range of industries, including electronics, computers
 and communications.
 
 
                               LeCROY CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                               Three months ended       Nine months ended
                                    March 31,           March 31,
     In thousands, except
     per share data
                               2001           2000       2001          2000
                          (unaudited)    (unaudited) (unaudited)   (unaudited)
     Revenues:
      Digital oscilloscopes
       and related products $34,181       $28,343      $92,743       $78,939
      High energy physics
       products               1,257           828        3,022         3,585
      Service and other       1,652         1,860        5,121         5,348
       Total revenues        37,090        31,031      100,886        87,872
 
     Cost of sales           17,785        14,879       49,201        44,515
       Gross profit          19,305        16,152       51,685        43,357
     Operating expenses:
       Selling, general and
       administrative        11,716         9,792       33,093        28,213
       Research and
       development            4,255         3,460       12,019        10,721
         Total operating
         expenses            15,971        13,252       45,112        38,934
 
     Operating income         3,334         2,900        6,573         4,423
 
     Gain on sales of
      marketable securities       -             -            -         2,460
     Other (expense) income,
      net                     (111)          (85)        (358)           154
     Income from continuing
      operations before income
      taxes                   3,223         2,815        6,215         7,037
     Provision for income
      taxes                     661           890        1,176         2,224
     Income from continuing
      operations              2,562         1,925        5,039         4,813
 
     Discontinued operations:
       Loss from discontinued
       operations, net of tax
       benefit of $573 and $1,684
       in the third quarter and
       nine months ended
       March 31, 2000           $ -     $ (2,856)     $(2,399)      $(5,224)
      Gain on sale                -             -          854             -
      Loss from discontinued
       operations                 -       (2,856)      (1,545)       (5,224)
     Net income (loss)        2,562         (931)        3,494         (411)
     Charges related to
     convertible preferred stock 89            85          266           254
     Cumulative effect of
     accounting change            -             -        1,848             -
     Net income (loss) available
     to common stockholders  $2,473      $(1,016)       $1,380       $ (665)
 
     Income (loss) per common share - basic:
       Income from continuing
       operations             $0.29         $0.24        $0.57         $0.59
       Loss from discontinued
       operations                 -        (0.37)       (0.18)        (0.68)
       Cumulative effect of
       accounting change          -             -       (0.22)             -
       Net income (loss)      $0.29       $(0.13)       $ 0.17       $(0.09)
 
     Income (loss) per common share - diluted:
       Income from continuing
       operations             $0.27         $0.23        $0.54         $0.59
       Loss from discontinued
       operations                 -        (0.34)       (0.16)        (0.68)
       Cumulative effect of
       accounting change          -             -       (0.20)             -
       Net income (loss)      $0.27       $(0.11)       $ 0.18       $(0.09)
 
     Weighted average number of common shares:
       Basic                  8,622         7,757        8,425         7,734
       Diluted                9,663         8,491        9,287         7,734
 
 
 
                               LeCROY CORPORATION
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
     In thousands                                    March 31,      June 30,
                                                         2001          2000
                                                    (unaudited)
 
                          ASSETS
     Current assets:
      Cash and cash equivalents                        $6,480         $9,022
      Accounts receivable                              31,593         27,788
     Inventories, net                                  31,361         24,389
     Other current assets                               3,540          1,953
     Net assets of discontinued operations                456          5,025
     Total current assets                              73,430         68,177
 
     Property and equipment, net                       15,938         15,093
     Marketable securities                              1,893          2,870
     Other assets                                      16,000         14,709
 
     TOTAL ASSETS                                    $107,261       $100,849
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Current debt                                       $310        $11,000
      Accounts payable                                 20,182         16,309
      Accrued expenses and other liabilities           18,963         16,739
       Total current liabilities                       39,455         44,048
 
     Other liabilities                                    718              -
 
     Redeemable convertible preferred stock             8,756          8,492
 
     Stockholders' equity                              58,332         48,309
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $107,261       $100,849
 
 
 

SOURCE LeCroy Corporation
    CHESTNUT RIDGE, N.Y., April 18 /PRNewswire/ -- LeCroy Corporation
 (Nasdaq: LCRY), a leading supplier of high-performance digital oscilloscopes,
 today announced financial results for the third quarter and nine months ended
 March 31, 2001.
 
     Third-Quarter Financial Results
     Revenues for the third quarter of fiscal 2001 increased nearly 20% to a
 record $37.1 million, compared with $31.0 million for the year-earlier third
 quarter.  Third-quarter operating income grew to $3.3 million, from $2.9
 million a year ago.  Net income from continuing operations for the third
 quarter of fiscal 2001 was $2.6 million, or $0.27 per diluted share, compared
 with net income from continuing operations of $1.9 million, or $0.23 per
 diluted share, for the third quarter of fiscal 2000.
 
     Nine-Month Fiscal 2001 Financial Results
     Revenues for the first nine months of fiscal 2001 rose nearly 15% to
 $100.9 million, from $87.9 million for the comparable period in fiscal 2000.
 Operating income for the first nine months of fiscal 2001 increased to $6.6
 million, compared with $4.4 million for the same period in fiscal 2000.  Net
 income from continuing operations for the first nine months of fiscal 2001 was
 $5.0 million, or $0.54 per diluted share, compared with net income from
 continuing operations, excluding a $2.5 million pre-tax gain on the sale of
 marketable securities, of $3.1 million, or $0.37 per diluted share, for the
 first nine months of fiscal 2000.
 
     Comments on the Third Quarter
     "This was another excellent quarter for LeCroy," said Tom Reslewic,
 president and chief operating officer.  "We continued to execute on our
 strategy of aggressive new-product launches to further penetrate the high-end
 oscilloscope market.  Demand for these new products enabled LeCroy to generate
 record sales during the quarter despite the weaker economy, and set the stage
 for robust performance for the remainder of fiscal 2001."
     "After introducing the first product in our WavePro line during the second
 quarter, we successfully launched our Waverunner-2 oscilloscope this past
 quarter," Reslewic continued.  "Waverunner-2 rapidly became a tremendous hit
 with our customers in the 200 MHz to 500 MHz market segment.  The market's
 response to WavePro and Waverunner-2 demonstrates that LeCroy's aggressive
 two-year technology development program was on target.  This program has
 produced an array of innovations, including proprietary chip designs, digital
 signal processing tools and software designs. We are now translating these
 innovations into new oscilloscope products that our customers find
 compelling."
     "Looking forward, we have a pipeline of additional new products that
 should expand LeCroy's total available markets and enable us to achieve our
 goal of doubling oscilloscope revenues over the next three to four years,"
 Reslewic said.  "We are well on our way toward accomplishing this goal.  Fully
 65% of the record $37.1 million in sales we posted for the third quarter came
 from products introduced within the past six months."
     Commenting on technology development, Reslewic said, "In our third
 quarter, we made excellent progress toward introducing a breakthrough
 oscilloscope platform based on silicon germanium ("SiGe") technology.
 Products based on this technology, which we expect to introduce before the end
 of Calendar 2001, will expand our addressable market by about 20%."
     Stated Reslewic, "We are continuing to execute our strategy of increasing
 our addressable share of the oscilloscope market by introducing new products
 each quarter.  Our sales concentration in the R&D market segment as well as
 the appeal of our new products is helping us thrive despite the current
 economic environment."
     FY01 Review and Outlook
     LeCroy Chief Executive Officer Lutz Henckels stated, "We have delivered
 very solid and impressive performance despite the recent turbulent economic
 environment. During the current fiscal year we have made significant
 accomplishments, both operationally and financially, including:
 
     -- Successful Introduction of New Products:
        --   WavePro -- October 2000
        --   Waverunner-2 -- January 2001
        --   In Q3 65% of Product Sales came from Products less than 6 months
             old
     -- Product Bookings Growth in FY01, excluding Kelly Air Force Base
        contract:
        --   18.3% in Q1
        --   32.2% in Q2
        --   16.5% in Q3
     -- Total Sales Growth in FY01:
        -- 8.3%  in Q1, 10.8% excluding foreign exchange
        -- 15.8% in Q2, 21.8% excluding foreign exchange
        -- 19.6% in Q3, 24.4% excluding foreign exchange
     -- Gross Margins Improvement:
        -- Q4FY00    48.7%
        -- Q1FY01    50.2%
        -- Q2FY01    51.2%
        -- Q3FY01    52.0%
 
     Consequently, despite the severity of the current economic downturn, we
 are maintaining our previous targets for the fourth-quarter of fiscal 2001.
 These targets include revenues of $38.0 million, operating income of $4.1
 million, and earnings of $0.33 per diluted share.  This would result in
 revenue of $139.0 million, with operating income of $10.7 million, and
 earnings of $0.88 per diluted share for the full 2001 fiscal year," Henckels
 concluded.
 
     The Company will revise its interim financial statements for the quarter
 ended December 31, 2000 to adopt the guidance provided by the Financial
 Accounting Standards Board's Emerging Issues Task Force ("EITF") Issue No. 00-
 27 "Application of EITF Issue No. 98-5, 'Accounting for Convertible Securities
 with Beneficial Conversion Features or Contingently Adjustable Conversion
 Ratios,' to Certain Convertible Instruments."  In June 1999, the Company
 recorded a $1.8 million non-cash conversion discount charge to reflect the
 difference between the value of the conversion feature of its newly issued
 convertible redeemable preferred stock and the fair value of its preferred
 stock.  EITF No.00-27 adjusts the calculation of this conversion discount
 charge by requiring that the fair value of the preferred stock be reduced by
 the value assigned to warrants to buy common stock that were issued with the
 preferred stock.  As a result, the Company will record an additional $1.8
 million non-cash conversion discount charge which will be presented as the
 cumulative effect of a change in accounting principle in determining net
 income available to common shareholders.
 
     Safe Harbor
     This release contains forward-looking statements pertaining to future
 financial projections and future anticipated plans, including the Company's
 success in selling the WavePro and Waverunner-2 oscilloscopes, market trends,
 introducing new products over the remainder of calendar 2001, the Company's
 projections regarding financial performance in the fourth fiscal quarter and
 in fiscal 2001, the Company's short- and long-term growth, as well as other
 estimates relating to future operations.  All such forward-looking statements
 are only estimates of future results, and there can be no assurance that
 actual results will not materially differ from expectations.  Actual
 performance and results of operations may differ materially from those
 projected or suggested in the forward-looking statements due to certain risks
 and uncertainties including, without limitation, volume and timing of orders
 received, changes in the mix of products sold, competitive pricing pressure,
 the Company's ability to anticipate changes in the market, the availability
 and timing of funding for the Company's current products and the development
 of future products. Further information on potential factors that could affect
 LeCroy Corporation's business is described in the Company's reports on file
 with the Securities and Exchange Commission
 
     About LeCroy
     LeCroy Corporation, headquartered in Chestnut Ridge, New York, develops
 manufactures and markets electronic signal acquisition and analysis products
 and services.  The Company's core business is the production of high-
 performance digital oscilloscopes, which are used by design engineers and
 researchers in a broad range of industries, including electronics, computers
 and communications.
 
 
                               LeCROY CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                               Three months ended       Nine months ended
                                    March 31,           March 31,
     In thousands, except
     per share data
                               2001           2000       2001          2000
                          (unaudited)    (unaudited) (unaudited)   (unaudited)
     Revenues:
      Digital oscilloscopes
       and related products $34,181       $28,343      $92,743       $78,939
      High energy physics
       products               1,257           828        3,022         3,585
      Service and other       1,652         1,860        5,121         5,348
       Total revenues        37,090        31,031      100,886        87,872
 
     Cost of sales           17,785        14,879       49,201        44,515
       Gross profit          19,305        16,152       51,685        43,357
     Operating expenses:
       Selling, general and
       administrative        11,716         9,792       33,093        28,213
       Research and
       development            4,255         3,460       12,019        10,721
         Total operating
         expenses            15,971        13,252       45,112        38,934
 
     Operating income         3,334         2,900        6,573         4,423
 
     Gain on sales of
      marketable securities       -             -            -         2,460
     Other (expense) income,
      net                     (111)          (85)        (358)           154
     Income from continuing
      operations before income
      taxes                   3,223         2,815        6,215         7,037
     Provision for income
      taxes                     661           890        1,176         2,224
     Income from continuing
      operations              2,562         1,925        5,039         4,813
 
     Discontinued operations:
       Loss from discontinued
       operations, net of tax
       benefit of $573 and $1,684
       in the third quarter and
       nine months ended
       March 31, 2000           $ -     $ (2,856)     $(2,399)      $(5,224)
      Gain on sale                -             -          854             -
      Loss from discontinued
       operations                 -       (2,856)      (1,545)       (5,224)
     Net income (loss)        2,562         (931)        3,494         (411)
     Charges related to
     convertible preferred stock 89            85          266           254
     Cumulative effect of
     accounting change            -             -        1,848             -
     Net income (loss) available
     to common stockholders  $2,473      $(1,016)       $1,380       $ (665)
 
     Income (loss) per common share - basic:
       Income from continuing
       operations             $0.29         $0.24        $0.57         $0.59
       Loss from discontinued
       operations                 -        (0.37)       (0.18)        (0.68)
       Cumulative effect of
       accounting change          -             -       (0.22)             -
       Net income (loss)      $0.29       $(0.13)       $ 0.17       $(0.09)
 
     Income (loss) per common share - diluted:
       Income from continuing
       operations             $0.27         $0.23        $0.54         $0.59
       Loss from discontinued
       operations                 -        (0.34)       (0.16)        (0.68)
       Cumulative effect of
       accounting change          -             -       (0.20)             -
       Net income (loss)      $0.27       $(0.11)       $ 0.18       $(0.09)
 
     Weighted average number of common shares:
       Basic                  8,622         7,757        8,425         7,734
       Diluted                9,663         8,491        9,287         7,734
 
 
 
                               LeCROY CORPORATION
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
     In thousands                                    March 31,      June 30,
                                                         2001          2000
                                                    (unaudited)
 
                          ASSETS
     Current assets:
      Cash and cash equivalents                        $6,480         $9,022
      Accounts receivable                              31,593         27,788
     Inventories, net                                  31,361         24,389
     Other current assets                               3,540          1,953
     Net assets of discontinued operations                456          5,025
     Total current assets                              73,430         68,177
 
     Property and equipment, net                       15,938         15,093
     Marketable securities                              1,893          2,870
     Other assets                                      16,000         14,709
 
     TOTAL ASSETS                                    $107,261       $100,849
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Current debt                                       $310        $11,000
      Accounts payable                                 20,182         16,309
      Accrued expenses and other liabilities           18,963         16,739
       Total current liabilities                       39,455         44,048
 
     Other liabilities                                    718              -
 
     Redeemable convertible preferred stock             8,756          8,492
 
     Stockholders' equity                              58,332         48,309
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $107,261       $100,849
 
 
 SOURCE  LeCroy Corporation

RELATED LINKS

http://www.LeCroy.com