Xcerra Corp

CIK:0000357020|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Net product sales	$ 110,449	$ 97,658	$ 329,939	$ 246,927
Net service sales	5,268	5,977	16,340	16,918
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):
Interest expense	(65)	(250)	(1,263)	(894)
Interest income	376	190	892	529
Other (expense) income, net	661	3	(990)	1,751
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 and common equivalent 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
Comprehensive income:
Net income attributable to Xcerra	$ 11,754	$ 7,548	$ 37,216	$ 10,138
Unrealized gain (loss) on marketable securities	(107)	3	(313)	(125)
Unrealized gain (loss) on currency translation	(912)	797	6,177	(1,787)
Comprehensive income attributable to Xcerra	$ 10,735	$ 8,348	$ 43,080	$ 8,226

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to Xcerra	$ 37,216	$ 10,138
Net income attributable to noncontrolling interest	169
Net income	37,385	10,138
Add non-cash items:
Stock-based compensation	5,923	4,612
Depreciation and amortization	4,692	4,641
Impairment of asset held for sale or disposal	173
Other non-cash items	3,204	3,722
Changes in operating assets and liabilities:
Accounts receivable	5,791	(742)
Inventories	(7,164)	(11,631)
Prepaid expenses and other assets	7,370	(6,162)
Accounts payable	(5,252)	6,923
Accrued expenses	(6,324)	2,916
Deferred revenue and customer advances	(2,605)	581
Net cash provided by operating activities	43,193	14,998
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of available-for-sale securities	36,881	33,404
Purchases of available-for-sale securities	(31,585)	(33,566)
Proceeds from sale of Interface Board Business		2,300
Investment in variable interest entity	(89)
Proceeds from sale of property and equipment	115	1,428
Purchases of property and equipment	(4,877)	(5,539)
Net cash provided by (used in) investing activities	445	(1,973)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments of bank term loan	(19,622)	(2,116)
Payments of tax withholdings for vested RSUs	(2,635)	(1,522)
Proceeds from shares issued from employees' stock purchase plan		421
Net cash used in financing activities	(22,257)	(3,217)
Effect of exchange rate changes on cash and cash equivalents	2,789	(563)
Net increase in cash and cash equivalents	24,170	9,245
Cash and cash equivalents at beginning of period	103,637	83,065
Cash and cash equivalents at end of period	$ 127,807	$ 92,310

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 127,807	$ 103,637
Marketable securities	51,292	57,087
Accounts receivable-trade, net of allowances of $339 and $72, respectively	89,342	92,963
Inventories	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
Current liabilities:
Current portion of long-term debt	359	3,779
Accounts payable	32,017	36,249
Deferred revenues	5,566	8,085
Other accrued expenses	46,570	50,262
Total current liabilities	84,512	98,375
Other long-term liabilities	9,125	9,012
Term loans	2,185	17,547
Commitments and contingencies (Note 5)
Stockholders' equity:
Common stock	2,746	2,716
Additional paid-in capital	813,387	809,914
Accumulated other comprehensive loss	(6,026)	(11,896)
Accumulated deficit	(449,853)	(487,055)
Total Xcerra stockholders' equity	360,254	313,679
Noncontrolling interest	1,892
Total equity	362,146	313,679
Total liabilities and equity	$ 457,968	$ 438,613