Company Reports Revenue of $84 Million and $0.18 Earnings per Share
BILLERICA, Mass., Oct. 23 /PRNewswire-FirstCall/ -- GSI Group Inc.,
(Nasdaq: GSIG), a leading provider of precision technology and
semiconductor systems, today announced financial results for the third
quarter ended September 28, 2007.
Third quarter revenue was $84.0 million, compared to $73.1 million in
the second quarter of 2007 and $81.6 million for the third quarter of 2006.
Excluding restructuring charges, operating profit was $10.1 million in the
third quarter versus $5.5 million in the second quarter and $7.5 million in
the third quarter of 2006. GAAP net income for the quarter was $7.8
million, or $0.18 per diluted share, compared to the second quarter results
of $3.3 million, or $0.08 per diluted share, and $5.7 million, or $0.14 per
diluted share in the third quarter of 2006.
Year to date 2007 revenue was $231.3 million, compared to $234.2
million in the same period of 2006. Excluding restructuring charges, year
to date operating profit totaled $21.6 million in 2007 compared to $22.8
million in 2006. Year to date GAAP net income was $14.3 million, or $0.34
per diluted share, compared to year to date GAAP net income of $17.0
million, or $0.40 per diluted share in the prior year.
Third quarter bookings were $75.1 million, compared to $89.5 million in
the second quarter of 2007 and $65.1 million in the third quarter of 2006.
The book to bill ratio was .89.
The backlog as of September 28, 2007 was $89.2 million, compared with
$74.4 in the third quarter of 2006. The backlog as of September 28, 2007
includes deferred revenue of $13.1 million.
Dr. Sergio Edelstein, President and CEO commented, "We are pleased with
the results this quarter and remain focused on executing our strategy of
aggressive new product launches and market penetration, building a larger
presence in Asia and integrating our company onto a world class operational
platform."
Dr. Edelstein continued, "During the quarter we saw stronger demand for
our scanner and circuit board drill products. We also recorded two large
semiconductor orders. One of these orders, which allowed us to meet the
high end of our revenue and income expectations, was based on our newly
released green-laser technology. Furthermore, our UK restructuring is on
plan and our China facility is now producing additional higher margin
products."
Gross margin of 41.3% in the third quarter increased from 40.7% in the
second quarter. Operating expenses, excluding restructuring charges were
$24.6 million in the third quarter compared to $24.3 million in the second
quarter. Stock based compensation was $0.8 million in the third quarter.
Income tax expense for the third quarter was $2.8 million, an effective
tax rate of 26%.
Cash and short term investments were $161.7 million, up $9.5 million
from the second quarter, net of $1.7 million used in the Company's
previously announced stock buyback program.
The Company anticipates the following for the fourth quarter of 2007:
-- Revenue to be in the range of $80.0 million to $84.0 million
-- Diluted earnings per share, including restructuring charges, in the
range of $0.13 to $0.17
-- Restructuring charges of approximately $1.0 million
Dial In: October 24th at 8:30 a.m. ET
GSI Group will host a conference call for investors at 8:30 a.m.
eastern on October 24th. Participants are invited to join by dialing (706)
634-5123 with an access code: 19450296. The replay will be available for
two weeks by dialing (706) 645-9291 with the replay passcode: 19450296. The
conference call also will be broadcast live over the Internet 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,
risks of currency fluctuations, 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)
September 28, December 31,
2007 2006
ASSETS
Current
Cash and cash equivalents $161,745 $138,315
Accounts receivable, less allowance of $287
(December 31, 2006 - $911) 74,078 54,546
Income taxes receivable 8,028 5,755
Inventories 71,070 72,703
Deferred tax assets 8,180 7,925
Other current assets 5,962 11,559
Total current assets 329,063 290,803
Property, plant and equipment, net of
accumulated depreciation of $32,691
(December 31, 2006 - $28,588) 31,498 33,511
Deferred tax assets 18,664 20,099
Other assets 2,562 710
Long-term investments 833 693
Intangible assets, net of amortization of $8,104
(December 31, 2006 - $6,380) 13,475 14,965
Patents and acquired technology, net of
amortization of $39,074 (December 31, 2006
- $35,455) 21,299 24,203
Goodwill 26,421 26,421
$443,815 $411,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $15,340 $14,002
Accrued compensation and benefits 11,045 13,455
Deferred Revenue 13,077 2,965
Other accrued expenses 10,274 12,881
Total current liabilities 49,736 43,303
Deferred compensation 663 2,740
Deferred tax liabilities 12,442 12,342
Accrued long term restructuring 983 1,141
Income Taxes Payable 1,798
Accrued pension liability 9,035 8,806
Total liabilities 74,657 68,332
Commitments and contingencies
Stockholders' equity
Common shares, no par value; Authorized
shares: unlimited; Issued and outstanding:
42,635,080 (December 31, 2005 - 41,889,804) 315,555 310,635
Additional paid-in capital 7,490 5,314
Retained earnings 43,727 29,431
Accumulated other comprehensive loss 2,386 (2,307)
Total stockholders' equity 369,158 343,073
$443,815 $411,405
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
Three Months Ended Nine Months Ended
September September September September
28, 2007 29, 2006 28, 2007 29, 2006
Sales $83,952 $81,627 $231,273 $234,151
Cost of goods sold 49,262 48,057 137,393 136,640
Gross profit 34,690 33,570 93,880 97,511
Operating expenses:
Research and development 7,529 7,594 22,915 22,435
Selling, general and
administrative 15,381 16,878 44,247 47,635
Amortization of purchased
intangibles 1,693 1,734 5,112 5,075
Restructuring and other 1,915 (142) 5,843 (452)
Total operating expenses 26,518 26,064 78,117 74,693
Income from operations 8,172 7,506 15,763 22,818
Interest and other income, net 1,701 1,194 4,927 2,521
Foreign exchange transaction
gains (losses) 682 (589) 248 (1,158)
Income before income taxes 10,555 8,111 20,938 24,181
Income tax provision (2,782) (2,380) (6,643) (7,163)
Net income $7,773 $5,731 $14,295 $17,018
Net income per common share:
Basic $0.18 $0.14 $0.34 $0.41
Diluted $0.18 $0.14 $0.34 $0.40
Weighted average common shares
outstanding (000's) 42,654 41,815 42,344 41,912
Weighted average common shares
outstanding for diluted net
income per common share (000's) 42,936 42,011 42,578 42,279
GSI GROUP INC.
Consolidated Analysis By Segment (unaudited)
(thousands of U.S. dollars)
Three Months Ended Nine Months Ended
September September September September
28, 2007 29, 2006 28, 2007 29, 2006
Sales:
Precision Technology $48,620 $52,100 $139,165 $149,517
Semiconductor Systems 36,646 32,975 95,614 93,316
Intersegment sales elimination (1,314) (3,448) (3,506) (8,682)
Total $83,952 $81,627 $231,273 $234,151
Gross profit %:
Precision Technology 39.2% 40.6% 37.9% 40.2%
Semiconductor Systems 41.5% 38.1% 42.5% 40.2%
Intersegment sales elimination (32.2%) (4.1%) (15.2%) 1.9%
Total 41.3% 41.1% 40.6% 41.6%
GSI GROUP INC.
Consolidated Sales Analysis By Geographic Region (unaudited)
(millions of U.S. dollars)
Three Months Ended
September 28, 2007 September 29, 2006
Sales % of Total Sales % of Total
(In millions) (In millions)
North America $24.4 29% $24.8 30%
Latin and South America 0.2 - 0.3 -
Europe (EMEA) 11.1 13 12.9 16
Japan 17.8 21 16.8 21
Asia-Pacific, other 30.5 37 26.8 33
Total $84.0 100% $81.6 100%
Nine Months Ended
September 28, 2007 September 29, 2006
Sales % of Total Sales % of Total
(In millions) (In millions)
North America $67.7 29% $68.1 30%
Latin and South America 0.5 - 1.1 -
Europe (EMEA) 36.5 16 39.2 17
Japan 47.4 20 36.2 15
Asia-Pacific, other 79.2 35 89.6 38
Total $231.3 100% $234.2 100%
SOURCE GSI Group Inc.
 back to top
Related links:
http://www.gsig.com
http://www.prnewswire.com/comp/107189.html /
CONTACT:
Ray Ruddy of GSI Group Inc., +1-978-439-5511,
ext. 6170
|
