Revenue grows $11.3 million over same quarter last year and earnings grow
$5.0 million.
BILLERICA, Mass., April 25 /PRNewswire-FirstCall/ -- GSI Group Inc.,
(Nasdaq: GSIG), a supplier of precision motion components, lasers and laser
systems, today announced financial results for the first quarter ended
March 31, 2006.
Revenue for the quarter rose to $76.1 million, compared to revenue of
$64.8 million for the same period of 2005. Net income for the quarter was
$5.1 million, or $0.12 per diluted share, compared to net income for the
same period in 2005 of $0.1 million, or $0.00 per diluted share.
"We are pleased to have achieved significant progress. Revenue was
strong and gross margins are 6 points higher than a year ago. Our
semiconductor markets continue to evidence a solid recovery, and revenue
increased from both new and existing customers with our Wafer Repair
systems. The Wafer Trim semiconductor market is also improving based on
first quarter orders received and quotation activity. Our OEM businesses
grew 6% and generated $5.6 million of income from operations, twice the
level of operating profits from a year ago. We are pleased with our
performance," said Charles Winston, CEO of GSI Group.
First Quarter Business Highlights:
-- During the first quarter and continuing into the second quarter, the
Company began receiving a higher level of orders and quotations for its
Wafer Trim systems, including the new M350 Wafer Trim system.
-- Two new customers were added to the Wafer Repair product line.
Further, an existing customer placed a sizeable multiple-machine order
for Wafer Repair Systems just after quarter end.
-- Total Company bookings were $70.9 million, backlog was $79.3 million
and the book-to-bill ratio was 0.9.
-- Cash, cash equivalents and marketable short-term investments increased
$12.8 million to $108.8 million, from $96.0 million in the fourth
quarter.
Business Outlook:
The Company anticipates the following results for the second quarter of
2006:
-- Revenue to be in the range of $78.0 million to $82.0 million.
-- Gross margin rates to be approximately 43%, plus or minus 1 point
depending on product mix.
-- Diluted per share earnings to be in the range of $0.15 to $0.18.
Dial In: April 26th at 8:30 a.m. ET
GSI Group will host a conference call for investors at 8:30 a.m.
Eastern on April 26th. To participate, call 913-981-5545. A replay of the
call will be available by dialing 719-457-0820. Access code: 4591671. The
conference call also will be broadcast live over the Internet in
listen-only mode at http://www.gsig.com.
About GSI Group Inc.
GSI Group Inc. supplies precision motion control products, lasers and
laser-based advanced manufacturing systems to the global medical,
semiconductor, electronics, and industrial markets. GSI Group Inc's common
shares are listed on Nasdaq (GSIG).
Certain statements in this news release may constitute forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the United States Securities
Act of 1933 and Section 21E of the United States Securities Exchange Act of
1934. These forward-looking statements may relate to anticipated financial
performance, management's plans and objectives for future operations,
business prospects, outcome of regulatory proceedings, market conditions,
tax issues and other matters. All statements contained in this news release
that do not relate to matters of historical fact should be considered
forward-looking statements, and are generally identified by words such as
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"objective" and other similar expressions. Readers should not place undue
reliance on the forward-looking statements contained in this news release.
Such statements are based on management's beliefs and assumptions and on
information currently available to management and are subject to risks,
uncertainties and changes in condition, significance, value and effect.
Other risks include the fact that the Company's sales have been and are
expected to continue to be dependent upon customer capital equipment
expenditures, which are, in turn, affected by business cycles in the
markets served by those customers. Other factors include volatility in the
semiconductor industry, the risk of order delays and cancellations, the
risk of delays by customers in introducing their new products and market
acceptance of products incorporating subsystems supplied by the Company,
similar risks to the Company of delays in its new products, our ability to
continue to reduce costs and capital expenditures, our ability to focus R&D
investment and integrate acquisitions, changes in applicable accounting
standards, tax regulations or other external regulatory rules and
standards, and other risks detailed in reports and documents filed by the
Company with the United States Securities and Exchange Commission and with
securities regulatory authorities in Canada. Such risks, uncertainties and
changes in condition, significance, value and effect, many of which are
beyond the Company's control, could cause the Company's actual results and
other future events to differ materially from those anticipated. The
Company does not, however, assume any obligation to update these
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking
statements.
GSI-G
For more information contact: Investor Relations, 978-439-5511, Ray
Ruddy, (ext. 6170)
GSI GROUP INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
March 31, December 31,
2006 2005
ASSETS
Current
Cash and cash equivalents $86,385 $69,286
Short-term investments 22,463 26,757
Accounts receivable, less allowance of $1,487
(December 31, 2005 - $1,592) 65,177 55,348
Income taxes receivable 2,387 2,517
Inventories 62,763 63,475
Deferred tax assets 10,980 10,630
Other current assets 14,499 20,357
Total current assets 264,654 248,370
Property, plant and equipment,
net of accumulated depreciation of $22,412
(December 31, 2005 - $20,608) 32,389 32,220
Deferred tax assets 20,877 20,124
Other assets 844 699
Long-term investments 616 613
Intangible assets,
net of amortization of $4,567
(December 31, 2005 - $4,035) 16,325 16,834
Patents and acquired technology,
net of amortization of $31,512
(December 31, 2005 - $30,359) 27,043 28,163
Goodwill 26,421 26,421
$389,169 $373,444
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $18,858 $14,998
Income taxes payable 5,547 2,475
Accrued compensation and benefits 9,659 9,212
Other accrued expenses 13,689 14,625
Total current liabilities 47,753 41,310
Deferred compensation 2,622 2,576
Deferred tax liabilities 11,785 13,252
Accrued minimum pension liability 9,787 9,750
Total liabilities 71,947 66,888
Commitments and contingencies
Stockholders' equity
Common shares, no par value;
Authorized shares: unlimited;
Issued and outstanding: 42,194,867
(December 31, 2005 - 41,628,171) 313,787 309,545
Additional paid-in capital 4,340 3,339
Retained earnings 12,792 7,688
Accumulated other comprehensive loss (13,697) (14,016)
Total stockholders' equity 317,222 306,556
$389,169 $373,444
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
Three Months Ended
March 31, April 1,
2006 2005
Sales $76,123 $64,841
Cost of goods sold 44,470 41,893
Gross profit 31,653 22,948
Operating expenses:
Research and development and engineering 7,454 6,460
Selling, general and administrative 15,004 15,380
Amortization of purchased intangibles 1,827 1,752
Other (96) 197
Total operating expenses 24,189 23,789
Income (loss) from operations 7,464 (841)
Other income (expense) 31 -
Interest income 887 392
Interest expense (144) 4
Foreign exchange transaction (losses) gains (709) 618
Income before income taxes 7,529 173
Income tax provision 2,425 63
Net income $5,104 $110
Net income per common share:
Basic $0.12 $0.00
Diluted $0.12 $0.00
Weighted average common shares
outstanding (000's) 41,868 41,464
Weighted average common shares outstanding
for diluted net income per common share (000's) 42,524 41,825
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(U.S. GAAP and in thousands of U.S. dollars)
Three months ended
March 31, April 1,
2006 2005
Cash flows from operating activities:
Net income $5,104 $110
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
(Gain) loss on sale of assets (6) 197
Unrealized loss on derivatives - 56
Tax benefit of stock options 1,001 -
Stock-based compensation - (62)
Depreciation and amortization 3,549 3,578
Deferred income taxes (2,324) (398)
Changes in current assets and liabilities:
Accounts receivable (9,875) 6,264
Inventories 744 (3,063)
Other current assets (284) 2,027
Accounts payable, accrued expenses,
and taxes (receivable) payable 6,352 (9,896)
Cash provided by (used in) operating activities 4,261 (1,187)
Cash flows from investing activities:
Sale of assets 6,113 -
Additions to property, plant
and equipment, net (1,808) (898)
Proceeds from sales and maturities
of short-term and long-term investments 26,800 3,000
Purchases of short-term and
long-term investments (22,514) (7,976)
(Increase) decrease in other assets (148) 102
Cash provided by (used in) investing activities 8,443 (5,772)
Cash flows from financing activities:
Proceeds from the exercise of
stock options and warrants 4,244 191
Cash provided by financing activities 4,244 191
Effect of exchange rates on cash
and cash equivalents 151 (1,206)
Increase (decrease) in cash and cash equivalents 17,099 (7,974)
Cash and cash equivalents, beginning of period 69,286 82,334
Cash and cash equivalents, end of period $86,385 $74,360
GSI GROUP INC.
Consolidated Analysis By Segment (unaudited)
(thousands of U.S. dollars)
Three months ended
March 31, April 1,
2006 2005
Sales:
Precision Motion Group $38,572 $33,985
Laser Group 8,406 10,261
Laser Systems Group 31,329 22,004
Intersegment sales elimination (2,184) (1,409)
Total $76,123 $64,841
Gross profit %:
Precision Motion Group 40.8% 36.9%
Laser Group 34.0% 25.4%
Laser Systems Group 41.4% 35.4%
Intersegment sales elimination (4.5%) (0.8%)
Total 41.6% 35.4%
Segment income from operations:
Precision Motion Group $5,751 $3,297
Laser Group (186) (711)
Laser Systems Group 5,736 1,623
Total by segment 11,301 4,209
Unallocated amounts:
Corporate expenses 3,817 4,827
Amortization of purchased
intangibles not allocated to a segment 26 26
Other (6) 197
Income (loss) from operations $7,464 $(841)
GSI GROUP INC.
Consolidated Sales Analysis By Geographic Region (unaudited)
(millions of U.S. dollars)
Three months ended
March 31, 2006 April 1, 2005
Sales % of Total Sales % of Total
North America $21.1 28% $25.0 39%
Latin and South America 0.3 - 0.4 -
Europe (EMEA) 12.0 16 11.1 17
Japan 10.7 14 13.7 21
Asia-Pacific, other 32.0 42 14.6 23
Total $76.1 100% $64.8 100%
SOURCE GSI Group Inc.
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Related links:
http://www.gsig.com/
http://www.prnewswire.com/comp/107189.html/
CONTACT:
Ray Ruddy, Investor Relations of GSI,
978-439-5511 ext. 6170
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