Second Quarter Bookings Increase to $100 Million
BILLERICA, Mass., July 25 /PRNewswire-FirstCall/ -- GSI Group Inc.,
(Nasdaq: GSIG), a supplier of precision technology and semiconductor
systems, today announced financial results for the second quarter ended
June 30, 2006.
Revenue for the quarter rose to $76.4 million, compared to revenue of
$66.9 million for the same period of 2005. Net income for the quarter was
$6.2 million, or $0.15 per diluted share, compared to net income for the
same period in 2005 of $3.1 million, or $0.07 per diluted share.
Year to date revenues of $152.5 million are up 16% from this time last
year. Year to date fully diluted earnings per share have more than tripled
the level of last year from $0.08 cents to $0.27 cents.
The Company also welcomes its new CEO, Dr. Sergio Edelstein who
replaces Mr. Charles Winston, who is retiring after 18 years. Dr. Edelstein
commented, "I am excited to join GSI. My decision to join was based on the
strength of the Company's technologies, its solid customer base and GSI's
strong financial foundation built by Mr. Winston. GSI is extremely well
positioned for future growth and my focus will be on driving this growth."
Second Quarter Business Highlights:
-- The Precision Technology Business increased revenue to $50 million, up
11% from the same period last year. GSI recently unveiled several new
Precision Technology products and design strategies during the quarter
including a precision motion feedback platform that will, over time,
triple the size of its served market in this key area. These new
products build on the success of the current Precision Technology
products by broadening the number of applications served.
-- The Semiconductor Systems Business revenue increased to $29 million, up
22% from the same period last year largely due to strength in all
product lines. GSI is also developing its next generation Wafer Repair
system with the throughput and accuracy required for next generation
memory devices, positioning GSI for future market share gains.
-- Total Company bookings were $100 million, backlog was $92.7 million and
the book-to-bill ratio was 1.3.
-- Cash, cash equivalents and marketable short-term investments increased
$6.5 million to $115.3 million, from $108.8 million in the first
quarter.
Business Outlook:
The Company anticipates the following results for the third quarter of
2006:
-- Revenue to be in the range of $77.0 million to $83.0 million.
-- Estimated tax rate at 30%.
-- Diluted per share earnings to be in the range of $0.13 to $0.17.
Dial In: July 26th at 8:30 a.m. ET
GSI Group will host a conference call for investors at 8:30 a.m.
Eastern on July 26th. Participants are invited to join by dialing
706-634-5123 with an access code: 2967096. The replay will be available for
two weeks by dialing 706-645-9291 with the replay passcode: 2967096. 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 technology to the global medical,
electronics, and industrial markets and semiconductor systems. 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.
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)
June 30, December 31,
2006 2005
ASSETS
Current
Cash and cash equivalents $115,339 $69,286
Short-term investments - 26,757
Accounts receivable,
less allowance of $1,116
(December 31, 2005 - $1,592) 64,308 55,348
Income taxes receivable 2,903 2,517
Inventories 71,113 63,475
Deferred tax assets 12,421 10,630
Other current assets 12,868 20,357
Total current assets 278,952 248,370
Property, plant and equipment,
net of accumulated depreciation of $24,220
(December 31, 2005 - $20,608) 34,045 32,220
Deferred tax assets 24,943 20,124
Other assets 784 699
Long-term investments 644 613
Intangible assets, net of amortization of
$5,138 (December 31, 2005 - $4,035) 16,091 16,834
Patents and acquired technology, net of
amortization of $32,812
(December 31, 2005 - $30,359) 26,155 28,163
Goodwill 26,421 26,421
$408,035 $373,444
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $20,742 $14,998
Income taxes payable 10,610 2,475
Accrued compensation and benefits 10,391 9,212
Other accrued expenses 17,662 14,625
Total current liabilities 59,405 41,310
Deferred compensation 2,629 2,576
Deferred tax liabilities 12,338 13,252
Accrued minimum pension liability 10,243 9,750
Total liabilities 84,615 66,888
Commitments and contingencies
Stockholders' equity
Common shares, no par value;
Authorized shares: unlimited;
Issued and outstanding: 41,815,442
(December 31, 2005 - 41,628,171) 310,022 309,545
Additional paid-in capital 4,401 3,339
Retained earnings 18,975 7,688
Accumulated other comprehensive loss (9,978) (14,016)
Total stockholders' equity 323,420 306,556
$408,035 $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 Six Months Ended
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
Sales $76,401 $66,850 $152,524 $131,691
Cost of goods sold 44,009 39,168 88,583 81,061
Gross profit 32,392 27,682 63,941 50,630
Operating expenses:
Research and
development and
engineering 7,400 6,368 14,841 12,827
Selling, general and
administrative 15,753 15,098 30,575 30,479
Amortization of
purchased intangibles 1,513 1,648 3,341 3,400
Restructuring and other (129) 4 (135) 201
Total operating
expenses 24,537 23,118 48,622 46,907
Income from operations 7,855 4,564 15,319 3,723
Other income (expense) (6) 8 24 8
Interest income 1,876 387 2,763 779
Interest expense (1,323) (68) (1,467) (63)
Foreign exchange
transaction gains (losses) 140 325 (569) 943
Income before income taxes 8,542 5,216 16,070 5,390
Income tax provision 2,358 2,091 4,783 2,155
Net income $6,184 $3,125 $11,287 $3,235
Net income per common share:
Basic $0.15 $0.08 $0.27 $0.08
Diluted $0.15 $0.07 $0.27 $0.08
Weighted average common
shares outstanding (000's) 42,100 41,522 42,008 41,493
Weighted average common
shares outstanding for
diluted net income per
common share (000's) 42,304 41,728 42,400 41,755
GSI GROUP INC.
Consolidated Analysis By Segment (unaudited)
(thousands of U.S. dollars)
Three months ended Six Months Ended
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
Sales:
Precision Motion Group $41,171 $34,151 $79,743 $68,136
Laser Group 9,268 11,426 17,674 21,686
Semiconductor Systems Group 29,012 23,711 60,341 45,714
Intersegment sales
elimination (3,050) (2,438) (5,234) (3,845)
Total $76,401 $66,850 $152,524 $131,691
Gross profit %:
Precision Motion Group 42.0% 41.9% 41.4% 39.4%
Laser Group 35.2% 36.1% 34.2% 31.0%
Semiconductor Systems Group 41.2% 39.0% 41.3% 37.3%
Intersegment sales
elimination (4.0%) (0.4%) (0.5%) (0.6%)
Total 42.4% 41.4% 41.9% 38.4%
Segment income from
operations:
Precision Motion Group $7,256 $4,872 $13,007 $8,169
Laser Group 210 803 24 92
Semiconductor Systems Group 4,756 3,146 10,492 4,769
Total by segment 12,222 8,821 23,523 13,030
Unallocated amounts:
Corporate expenses 4,496 4,227 8,313 9,053
Amortization of purchased
intangibles not allocated
to a segment - 26 26 53
Restructuring 59 - 59 -
Other (188) 4 (194) 201
Income from operations $7,855 $4,564 $15,319 $3,723
SOURCE GSI Group Inc.
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Related links:
http://www.gsig.com/
http://www.prnewswire.com/comp/107189.html /
CONTACT:
Ray Ruddy of GSI Group, +1-978-439-5511, ext.
6170
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