WESTWOOD, Mass.--Semiconductor test systems supplier LTX Corp. today reported a net loss of about $5.0 million on sales of $47.3 million in the fiscal fourth quarter, ended July 31. The loss included a $14 million charge related to LTX's announced plans to transfer test systems production to contract manufacturer Jabil Circuit Inc., while cutting 15% of its full-time workforce.
LTX's sales in the fiscal fourth quarter dropped 49.2% from $93.2 million in the same period last year. On a sequential basis, the company's revenues were 27.9% lower than $65.6 million posted in the prior quarter, ended April 30. A year ago, the company reported a net income of $42.3 million, and in the prior fiscal third quarter, LTX had net earnings of $3.2 million.
"Even though market conditions worsened, leading to net orders of $26.7 million for the quarter, we kept our product development, selling efforts and budget on course," said Roger W. Blethen, president and chief executive officer of LTX. The company's shift to outside manufacturing services is part of a new strategy to concentrate resources on development and sales operations.
In June, the Westwood company announced plans to transfer production of its Fusion tester series to Jabil during the next 12-to-15 months. To cover costs, LTX took $12.8 million in charges for an inventory-related provision and $1.2 million for severance.