Rudolph Technologies Earnings: Here’s Why Investors are Buying Shares Now

Rudolph Technologies Inc. (NASDAQ:RTEC) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.65%.

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Rudolph Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 44.44% to $0.05 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Decreased 8.77% to $41.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rudolph Technologies Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company met the mean analyst estimate of $0.05. It missed the average revenue estimate of $45.72 million.

Quoting Management: Paul F. McLaughlin, Chairman and Chief Executive Officer, commented, “Despite challenging industry-wide conditions that brought top line results in just below the bottom of our guidance for the quarter, we delivered better than expected gross margins driven by advanced packaging inspection sales, as well as net income that was in line with guidance. We are fully confident that the first quarter marked the revenue trough for Rudolph. While the front-end business has paused somewhat, we benefit from a very broad customer base across all front-end segments (memory, logic, and foundry) as well as the back-end (foundries, IDMs and OSATs – where we are seeing increased quotation and order activity); and our outlook is turning positive. Market share gains in macro defect inspection are driving our forward momentum, and our business is accelerating into the second quarter – we are confident the rebound is sustainable. We believe the second quarter will be stronger than the first quarter by approximately 5 to 15 percent and we further expect orders in the second half of 2013 to be considerably stronger than those of the first half. While we are on track for sequential growth throughout the next few quarters, the overall level we had anticipated earlier this year has been muted and the slope of the recovery ramp is uncertain at this point. As a result, we expect 2013 net sales to be flat to down 10 percent from 2012.”

Key Stats (on next page)…

Revenue decreased 23.2% from $54.3 million in the previous quarter. EPS decreased 70.59% from $0.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.22 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.89 to a profit of $0.72 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]