STOCKREPORTS

Credence Systems Corporation

NASDAQ Symbol CMOS

Recent Price 35.38 52 Wk Range 35.38 - 13.00

Yield Nil 12-Mo. P/E 38.5

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 05/97 Rel. Strength Rank (1 Lowest - 99 Highest) 98 Insider Activity NA

Business Profile 11-APR-97

The company's objective is to become the leading supplier of cost-effective automatic test equipment (ATE) for production testing of integrated circuits used in high volume applications. Elements of this strategy include maintaining technology leadership, providing ATE at a lower total cost of ownership, targeting diverse, high-volume markets, and providing global support and service. Depressed market conditions in the semiconductor industry has led customers to delay purchases and hurt sales in recent periods. In response, the company intends to hold research and development costs relatively flat and reduce SG&A expenses for the balance of fiscal 1997.

Operation Review 11-APR-97

Net sales in the first quarter of FY 97 (Oct.) declined 34%, year to year, hurt by depressed market conditions in the semiconductor industry and related delays in purchasing new test capacity by customers. Gross margins narrowed on an increase in reserves for inventories due to write-downs of slow-moving parts of older products. Operating expenses were down just 4.2%, and after taxes at 34.6%, versus 36.0%, net income plunged 90%, to $1,054,000 ($0.05 a share), from $10,544,000 ($0.48).

Stock Performance 18-JUL-97n

In the past 30 trading days, CMOS's shares have increased 33%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 625,880 shares, compared with the 40-day moving average of 418,505 shares.

Key Stock Statistics

Fiscal Year Ending Oct. 31

Dividend Data: No cash dividends have been paid. The company does not anticipate paying cash dividends in the foreseeable future.

Business Summary 11-APR-97

Credence Systems Corp. designs, manufactures, sells and services automatic test equipment (ATE) used in the production of semiconductors. It offers a broad variety of semiconductor testing through a wide range of products that test digital logic, mixed-signal and non-volatile memory semiconductors. Customers include major semiconductor manufacturers as well as assembly and test services companies.

Digital logic semiconductors produce discrete "on" and "off" logical sequences that control functions, store data, retrieve data and move and manipulate data at high rates of speed. Examples include logic devices such as microcontrollers. Certain digital devices that store and retrieve data are memory semiconductors. Non-volatile memory semiconductors retain their data when power is turned off. Mixed-signal semiconductors combine both digital and analog functions. Analog semiconductors control external functions such as motors by producing continuous varying voltage or current.

The company's digital complementary metal oxide semiconductor (CMOS)-based products include the SC series and Vista series testers, which are designed to test high speed devices used in applications such as networking and portable computing as well as multimedia, digital television, high-definition television and personal communications.

Mixed-signal products, including the Vista and STS series, test certain semiconductors used principally in automotive and telecommunications applications. Memory products, which include the EPRO product line, test non-volatile memory devices, including ROM, EPROM, EEPROM and FLASH memories used in high volume applications in the consumer, automotive and telecommunications markets. Workcell products, including Centaur, provide complete test solutions that offer integration between a test system and the device handling equipment required for volume production.

The company targets digital logic, mixed-signal and non-volatile memory device manufacturers that serve a broad range of end-user markets. Products are marketed and sold in the U.S. through direct sales channels and outside the U.S. through both direct sales and a network of distributors. The company and its distributors have sales and support centers located in the U.S., Europe, Israel, Taiwan, Korea, China, Japan, Singapore and Hong Kong. International sales accounted for 67% and 55% of total sales in fiscal 1996 and 1995, respectively.

Capitalization

Long Term Debt: None (1/97).

Curr. Ratio	5.3	4.5	3.6	2.1	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	Nil	Nil	0.9	4.4	NA	NA	NA	NA	NA	NA
% Net Inc.of Revs.	15.8	17.2	16.0	6.5	NM	NA	NA	NA	NA	NA
% Ret. on Assets	18.4	20.9	20.0	9.0	NM	6.9	NA	NA	NA	NA
% Ret. on Equity	22.2	26.6	29.1	17.5	NM	21.2	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--215 Fourier Ave., Fremont, CA 94539. Tel--(510) 657-7400. Website--http://www.credence.com Chrmn & CEO--W. R. Bottoms. SVP, CFO & Secy--R. Y. Okumoto. Dirs--W. R. Bottoms, H. J. Evenhuis, J. C. Henkins, W. G. Howard, Jr., B. V. Vonderschmitt. Transfer Agent & Registrar--Boston Equiserve, Boston. Incorporated--in California in 1982. Empl-- 0. S&P Analyst: Stephen R. Biggar

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997