LTX Announces Third Quarter Orders and Fourth Quarter Guidance

    Business Editors/Technology Editors

    WESTWOOD, Mass.--(BUSINESS WIRE)--May 13, 2005--LTX Corporation (Nasdaq: LTXX), a leading provider of semiconductor test solutions, today announced that total incoming orders for the third fiscal quarter were $39.1 million, up 25% from last quarter.
    Roger W. Blethen, chairman and chief executive officer, said, "First let me apologize for LTX's delay in reporting its third quarter financial results. We will work diligently to complete the investigation announced in our Press Release yesterday. There is, however, important information that we can disclose regarding the actions and accomplishments of the third quarter and guidance for the fourth quarter."
    "There are indications that in some market segments, LTX's business is expanding due to capacity purchases and new applications ramping into volume production. This led to significantly higher orders in the quarter, with product orders up approximately 120% from the second quarter."
    "Earlier in the third quarter we took action to realign our operating expenses with our business strategy. As a result, our quarterly break-even was reduced to $50M. We also evaluated the size of our capital asset base and worldwide facilities for the leaner organization. Following this evaluation, the company determined that restructuring and asset impairment charges of approximately $28 million were necessary in order to properly size its base of assets. After these restructuring actions, our business model now more accurately reflects the leaner operation, further reducing the quarterly break-even to $46 million."
    "LTX's engineering organization continued to make strong progress during the quarter on several new versions of Fusion that address high growth areas of the market, and we plan to make product announcements in our fourth quarter. We expect that the stepped-up leverage in our financials and new market opportunities from our product strategy will make LTX a stronger company."

    Fourth Quarter 2004 Outlook

    Revenue for the fourth quarter of fiscal year 2005 is expected to be in the range of $36 million to $38 million, with gross margin at approximately 37%. The earnings per share is projected to be a loss in the range of $(0.10) to $(0.12), assuming 61.2 million fully diluted shares outstanding. This guidance does not include any provisions for special charges.

    "Safe Harbor" Statement: This press release contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that relate to prospective events or developments, including, without limitation, statements regarding our revenue, margin and earnings guidance, are deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions are intended to identify forward-looking statements. There are a number of important factors and risks that could cause actual results or events to differ materially from those indicated by these forward-looking statements. Such risks and factors include, but are not limited to, the risk of fluctuations in sales and operating results, risk related to the timely development of new products, options and software applications, as well as the other factors described under "Business Risks" in LTX's most recently filed annual report on Form 10-K and in our most recently filed quarterly report on Form 10-Q filed with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements.

    LTX Corporation (Nasdaq: LTXX) is a leading supplier of test solutions for the global semiconductor industry. Fusion, LTX's patented, scalable, single-platform test system, uses innovative technology to provide high performance, cost-effective testing of system-on-a-chip, mixed signal, RF, digital and analog integrated circuits. Fusion addresses semiconductor manufacturers' economic and performance requirements today, while enabling their technology roadmap of tomorrow. LTX's web site is www.ltx.com.

    LTX and Fusion are registered trademarks of LTX Corporation

--30--SP/bo*

CONTACT: LTX Corporation Mark Gallenberger, 781-467-5417 mark_gallenberger@ltx.com www.ltx.com

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: HARDWARE MANUFACTURING EARNINGS SOURCE: LTX Corporation

Copyright Business Wire 2005