LTX Announces First Quarter Results.

Business/Technology Editors

WESTWOOD, Mass.--(BUSINESS WIRE)--Nov. 14, 2002

LTX Corporation (Nasdaq: LTXX), a leading provider of semiconductor test solutions, today announced financial results for its fiscal quarter ended October 31, 2002. The operating results for the quarter

Sales were $30,007,000, down from $32,630,000 in the fourth quarter. Net loss was $(22,684,000), or $(0.46) per share, including a restructuring charge of $1,990,000 for a workforce reduction of 94 employees on August 22, 2002. Applying the statutory tax rate of 40% and excluding the restructuring charge, net loss for the first fiscal quarter of this year would have been $(12,416,000) or $(0.25) per share. In the first quarter of last fiscal year, sales were $33,003,000 and net loss, after applying the then-effective tax rate of 30%, was $(9,397,000), or $(0.19) per share.

In order to better align LTX's expense structure with current industry conditions, the Company further reduced its workforce on November 12, 2002. The action affected 195 people worldwide, at all levels and disciplines, and represents approximately 27% of the employee base. The Company expects this reduction to result in annualized savings of approximately $16 million.

Roger W. Blethen, Chairman and Chief Executive Officer, commented, "Although we met our financial guidance for the quarter, industry conditions continue to be challenging. Net orders were $20 million, up 30% year over year, resulting in a book to bill of 0.7 to 1, and were down sequentially from our fourth quarter."

Mr. Blethen continued, "Orders in the current business environment are being driven mainly by technology purchases for wireless ICs, including Bluetooth and 802.11 wireless local area network (WLAN) and for digital signal processing (DSP) chips. Wireless and DSP are the two technologies we see as the early drivers of the next cycle and represent the areas where we are focusing our development efforts for Fusion. Earlier in the quarter, we announced Synad as a new customer. Synad is a European-based fabless company that has developed an 802.11A/B multi-standard solution enabling mobility and interoperability across the various WLAN standards."

Mr. Blethen continued, "As we move forward in the second quarter, I am confident our decisions and activities position the Company to be a leader in the next growth cycle. We will continue to focus on bringing innovative new capabilities for Fusion to market, targeting and winning new customers and tightly managing our expenses. "

The Company will conduct a conference call today, November 14, 2002, at 10:00AM EST to discuss this release. The conference call will be simulcast via the LTX web site (www.ltx.com). Audio replays of the call can be heard through November 21, 2002 via telephone by dialing 402-280-1659 or by visiting our web site at www.ltx.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this press release may be forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties 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 Form 10-K for the fiscal year ended July 31, 2002 filed with the Securities and Exchange Commission.

LTX Corporation is the only semiconductor test equipment company to offer a "one test platform, zero compromises" solution for testing the full spectrum of system-on-a-chip, mixed-signal, digital and analog integrated circuits. Headquartered in Westwood, Mass., the company has additional development facilities in San Jose, Calif., as well as sales and service facilities throughout North America, Europe, the Pacific Rim and Japan. LTX is traded on the Nasdaq National Market under the symbol "LTXX." Further information on LTX can be obtained by calling 1-888-INFOLTX (or 888 463-6589). LTX's web site is located at http://www.ltx.com.

LTX and Fusion are registered trademarks of LTX Corporation.

                           LTX CORPORATION

                      CONSOLIDATED BALANCE SHEET
                            (In thousands)


                                              October 31,     July 31,
                                                 2002           2002
                                             (Unaudited)     (Audited)
ASSETS
Current assets:
  Cash equivalents                             $118,714       $144,467
  Short term investments                         73,972         72,691
  Accounts receivable - trade                    22,897         19,308
  Accounts receivable - other                     6,065         10,269
  Inventories                                   125,386         95,152
  Prepaid Expense                                11,515         30,694

     Total current assets                       358,549        372,581

Property and equipment, net                      70,533         76,171
Other assets                                     14,430         15,237

                                               $443,512       $463,989



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable                                $ 19,868       $ 14,870
  Current portion of long-term debt               1,866          2,059
  Accounts payable                               21,304         25,714
  Deferred revenues and customer advances         5,179          5,229
  Deferred gain on leased equipment              13,785         10,248
  Other accrued expenses                         27,321         29,043

     Total current liabilities                   89,323         87,163

Long-term debt, less current portion                983          1,293
Convertible subordinated debentures             150,000        150,000
Stockholders' equity                            203,206        225,533


                                               $443,512       $463,989



                           LTX CORPORATION

                 CONSOLIDATED STATEMENT OF OPERATIONS
                             (Unaudited)
              (In thousands, except earnings per share)


                                                      Three Months
                                                         Ended
                                                       October 31,
                                                    2002       2001

Net sales                                        $ 30,007    $ 33,003

Cost of sales                                      24,703      23,390

         Gross margin                               5,304       9,613

Engineering and product development                19,103      16,538
    expenses

Selling, general and administrative expenses        6,399       7,205

Reorganization costs                                1,990        --

         Loss from operations                     (22,188)    (14,130)

Interest income (expense), net                       (496)        706

         Loss before income taxes                 (22,684)    (13,424)

Income taxes (benefit)                               --        (4,027)

Net loss                                         $(22,684)   $ (9,397)

Net loss per share, as reported
    Basic                                        $  (0.46)   $  (0.19)
    Diluted                                      $  (0.46)   $  (0.19)

Weighted average shares:
         Basic                                     49,199      48,409
         Diluted                                   49,199      48,409