Rudolph Technologies Earnings 2019-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

rtec-10q_20190930.htm

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2019

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-36226

RUDOLPH TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

22-3531208

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

16 Jonspin Road, Wilmington, Massachusetts 01887

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (978) 253-6200

Securities registered pursuant to Section 12(b) of the Act


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value per share	RTEC*	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of outstanding shares of the Registrant’s Common Stock on October 22, 2019 was 31,123,763.

* Upon the completion of the previously announced merger of equals with Nanometrics Incorporated, shares of common stock of Rudolph (NYSE: RTEC) ceased trading on the New York Stock Exchange as of market close on October 25, 2019. Each share of common stock of Rudolph was converted into 0.8042 shares of Onto Innovation common stock (NYSE: ONTO) at the effective time of the merger.

Table of Contents

TABLE OF CONTENTS


Item No.		Page
	PART I FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets at September 30, 2019 and December 31, 2018	3
	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018	5
	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2019 and 2018	6
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28
Item 4.	Controls and Procedures	28

	PART II OTHER INFORMATION

Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32

Table of Contents

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	September 30, 2019			December 31, 2018
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	139,702		$	112,388
Marketable securities		53,436			62,684
Accounts receivable, less allowance of $578 and $691		63,337			64,194
Inventories, net		104,132			96,820
Income taxes receivable		—			6,111
Prepaid expenses and other current assets		11,571			8,710
Total current assets		372,178			350,907
Property, plant and equipment, net		19,052			18,874
Operating lease right-of-use assets		12,697			—
Goodwill		22,495			22,495
Identifiable intangible assets, net		6,337			7,448
Other assets		18,408			18,316
Total assets	$	451,167		$	418,040
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	25,597		$	30,681
Deferred revenue		6,101			6,767
Current operating lease obligations		2,264			—
Other current liabilities		11,588			7,543
Total current liabilities		45,550			44,991
Non-current operating lease obligations		11,663			—
Other non-current liabilities		8,481			11,161
Total liabilities		65,694			56,152
Commitments and contingencies
Stockholders’ equity:
Common stock		31			31
Additional paid-in capital		374,073			369,893
Accumulated other comprehensive loss		(1,520	)		(1,263	)
Retained earnings (accumulated deficit)		12,889			(6,773	)
Total stockholders’ equity		385,473			361,888
Total liabilities and stockholders’ equity	$	451,167		$	418,040

The accompanying notes are an integral part of these financial statements.

Table of Contents

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue	$	62,935	$	60,432	$	185,338	$	211,004
Cost of revenue		31,424		28,978		89,897		95,393
Gross profit		31,511		31,454		95,441		115,611
Operating expenses:
Research and development		12,759		12,313		38,533		36,829
Selling, general and administrative		13,075		11,128		37,431		35,867
Amortization		387		384		1,161		1,147
Total operating expenses		26,221		23,825		77,125		73,843
Operating income		5,290		7,629		18,316		41,768
Interest income, net		1,001		607		2,667		1,474
Other income, net		617		132		841		90
Income before income taxes		6,908		8,368		21,824		43,332
Provision for income taxes		348		1,181		2,162		6,318
Net income	$	6,560	$	7,187	$	19,662	$	37,014
Earnings per share:
Basic	$	0.21	$	0.23	$	0.63	$	1.16
Diluted	$	0.21	$	0.22	$	0.63	$	1.14
Weighted average shares outstanding:
Basic		31,185		31,901		31,101		31,807
Diluted		31,466		32,408		31,402		32,387

The accompanying notes are an integral part of these financial statements.

Table of Contents

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net income	$	6,560		$	7,187		$	19,662		$	37,014
Other comprehensive income:
Change in net unrealized gains on marketable securities, net of tax		—			(68	)		209			62
Change in currency translation adjustments		(264	)		(202	)		(466	)		(425	)
Total comprehensive income	$	6,296		$	6,917		$	19,405		$	36,651

The accompanying notes are an integral part of these financial statements.

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RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	Common Stock					Additional Paid-in			Accumulated Other Comprehensive			Retained Earnings (Accumulated
	Shares			Amount		Capital			Loss			Deficit)			Total
Balance at December 31, 2018		30,906		$	31	$	369,893		$	(1,263	)	$	(6,773	)	$	361,888
Issuance of shares through share-based compensation plans, net		103			—		—			—			—			—
Repurchase of common stock		(37	)		—		(744	)		—			—			(744	)
Net income		—			—		—			—			7,576			7,576
Share-based compensation		—			—		2,163			—			—			2,163
Share-based compensation plan withholdings		(27	)		—		(598	)		—			—			(598	)
Currency translation		—			—		—			(518	)		—			(518	)
Unrealized gain on investments		—			—		—			95			—			95
Balance at March 31, 2019		30,945		$	31	$	370,714		$	(1,686	)	$	803		$	369,862
Issuance of shares through share-based compensation plans, net		177			—		160			—			—			160
Net income		—			—		—			—			5,526			5,526
Share-based compensation		—			—		1,673			—			—			1,673
Share-based compensation plan withholdings		(6	)		—		(151	)		—			—			(151	)
Currency translation		—			—		—			316			—			316
Unrealized gain on investments		—			—		—			114			—			114
Balance at June 30, 2019		31,116		$	31	$	372,396		$	(1,256	)	$	6,329		$	377,500
Issuance of shares through share-based compensation plans, net		1			—		123			—			—			123
Net income		—			—		—			—			6,560			6,560
Share-based compensation		—			—		1,555			—			—			1,555
Share-based compensation plan withholdings					—		(1	)		—			—			(1	)
Currency translation		—			—		—			(264	)		—			(264	)
Balance at September 30, 2019		31,117		$	31	$	374,073		$	(1,520	)	$	12,889		$	385,473

The accompanying notes are an integral part of these financial statements.

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RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

(In thousands)

(Unaudited)

	Common Stock					Additional Paid-in			Accumulated Other Comprehensive			Accumulated
	Shares			Amount		Capital			Loss			Deficit			Total
Balance at December 31, 2017		31,604		$	32	$	386,196		$	(1,205	)	$	(51,869	)	$	333,154
Issuance of shares through share-based compensation plans, net		169			—		122			—			—			122
Net income		—			—		—			—			15,130			15,130
Share-based compensation		—			—		1,507			—			—			1,507
Share-based compensation plan withholdings		(31	)		—		(839	)		—			—			(839	)
Currency translation		—			—		—			632			—			632
Unrealized gain on investments		—			—		—			23			—			23
Balance at March 31, 2018		31,742		$	32	$	386,986		$	(550	)	$	(36,739	)	$	349,729
Issuance of shares through share-based compensation plans, net		164			—		368			—			—			368

Price	25.65	EPS	1
Shares	31	P/E	29
MCap	807	P/FCF	32
Net Debt	-140	EBIT	30
TEV	667	TEV/EBIT	22
TTM 2019-09-30, in MM, except price, ratios

10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-07-30
10-Q	2019-03-31	Filed 2019-05-07
10-K	2018-12-31	Filed 2019-02-15
10-Q	2018-09-30	Filed 2018-11-02
10-Q	2018-06-30	Filed 2018-08-02
10-Q	2018-03-31	Filed 2018-05-03
10-K	2017-12-31	Filed 2018-02-16
10-Q	2017-09-30	Filed 2017-10-31
10-Q	2017-06-30	Filed 2017-08-03
10-Q	2017-03-31	Filed 2017-05-02
10-K	2016-12-31	Filed 2017-02-16
10-Q	2016-09-30	Filed 2016-11-08
10-Q	2016-06-30	Filed 2016-07-29
10-Q	2016-03-31	Filed 2016-05-03
10-K	2015-12-31	Filed 2016-02-19
10-Q	2015-09-30	Filed 2015-11-03
10-Q	2015-06-30	Filed 2015-08-04
10-Q	2015-03-31	Filed 2015-05-01
10-K	2014-12-31	Filed 2015-02-20
10-Q	2014-09-30	Filed 2014-11-06
10-Q	2014-06-30	Filed 2014-08-06
10-Q	2014-03-31	Filed 2014-05-01
10-K	2013-12-31	Filed 2014-02-27
10-Q	2013-09-30	Filed 2013-11-06
10-Q	2013-06-30	Filed 2013-08-02
10-Q	2013-03-31	Filed 2013-05-03
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-09
10-Q	2012-06-30	Filed 2012-08-02
10-Q	2012-03-31	Filed 2012-05-04
10-Q	2011-09-30	Filed 2011-11-02
10-Q	2011-06-30	Filed 2011-08-02
10-Q	2011-03-31	Filed 2011-05-04
10-K	2010-12-31	Filed 2011-02-28
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-04
10-Q	2010-03-31	Filed 2010-04-30
10-K	2009-12-31	Filed 2010-03-05

8-K	2019-10-25	M&A, Shareholder Rights, Control, Officers, Amend Bylaw, Exhibits
8-K	2019-10-24	Shareholder Vote
8-K	2019-10-11	Other Events
8-K	2019-07-30	Earnings, Exhibits
8-K	2019-06-24	Other Events, Exhibits
8-K	2019-06-21	Enter Agreement, Officers, Amend Bylaw, Other Events, Exhibits
8-K	2019-05-15	Shareholder Vote
8-K	2019-05-06	Earnings, Exhibits
8-K	2018-12-31	Earnings, Exhibits
8-K	2018-11-01	Earnings, Exhibits
8-K	2018-10-29	Exhibits
8-K	2018-10-03	Other Events, Exhibits
8-K	2018-08-05	Other Events, Exhibits
8-K	2018-08-02	Earnings, Exhibits
8-K	2018-07-26	Officers
8-K	2018-05-16	Officers, Shareholder Vote, Exhibits
8-K	2018-03-31	Earnings, Exhibits
8-K	2017-12-31	Earnings, Exhibits

EX-31.1	rtec-ex311_7.htm
EX-31.2	rtec-ex312_6.htm
EX-32.1	rtec-ex321_9.htm
EX-32.2	rtec-ex322_8.htm

RTEC 10Q Quarterly Report

Rudolph Technologies Earnings 2019-09-30