BILLERICA, Mass., Oct. 25 /PRNewswire-FirstCall/ -- GSI Group Inc.,
(Nasdaq: GSIG and TSX: GSI), a major supplier of precision motion components,
lasers and laser systems, today announced financial results for the third
quarter ended September 30, 2005. All data is expressed in U.S. GAAP and in
U.S. dollars.
"GSI increased cash and investments by $15M this quarter, while gross
margins and EPS remained relatively strong, on a lower revenue base indicative
of our increased operating leverage," said Charles Winston, President and CEO
of GSI Group Inc. "Although the semiconductor equipment segment of our
business slowed this quarter, we are encouraged by stronger order activity and
recent reports of industry utilization of IC equipment at 98% for test and
assembly in September."
Gross Margins and EPS Remain Strong on a Lower Revenue Base
* Sales were $62.6 million for the third quarter of 2005, compared to
$66.9 million in the previous quarter.
* Gross margin for the quarter was 39% of sales compared with 41% in the
prior quarter.
* Net income was $2.0 million or $0.05 per diluted share for the third
quarter, compared to net income of $3.1 million or $0.07 per diluted
share in the previous quarter.
Segments Maintain Leverage by Managing Costs Effectively
* Precision Motion segment reported sales of $36.5 million, compared to
$34.2 million in the previous quarter. Operating income was $5.5
million for the third quarter, an increase from $4.9 million in the
previous quarter. Gross margin was 41% compared to 42% in the previous
quarter.
* The Systems segment reported sales of $17.9 million, compared to $23.7
million during the previous quarter. The segment contributed an
operating profit of $0.7 million for the third quarter, as compared to
$3.1 million in the previous quarter. Gross margin was 35% as compared
to 39% during the previous quarter.
* Laser segment reported sales of $10.0 million, compared to $11.4 million
during the previous quarter. The segment had operating income of $0.1
million in the third quarter versus $0.8 million in the previous
quarter. Gross margin was 34% in the third quarter, compared to 36%
during the previous quarter.
Other Key Metrics
* Cash, cash equivalents and marketable investments increased $15.2
million to $93.5 million, from $78.3 million in the prior quarter.
This was primarily driven by the collection of $8.6 million in accounts
receivable from several major semiconductor accounts and $5.8 million
from the sale of a facility in Michigan.
* Book to bill ratio was .97, down slightly from 1.04 in the prior
quarter.
* Backlog decreased 3% to $59.8 million, compared to $61.6 million in the
previous quarter.
* Bookings were $60.8 million for the quarter, a decrease of $8.8 million
from the previous quarter.
* Geographically, sales for the third quarter of 2005 were as follows:
approximately 38% in the Americas, 43% in Asia & Japan and 19% in
Europe.
GSI Voluntarily Delists from TSX
GSI Group Inc. is also voluntarily withdrawing the listing of its stock
under the ticker symbol GSI, from the Toronto Stock Exchange. The delisting
will be effective as of the close of trading on November 1, 2005. The move
was prompted by the recent cost containment initiative and the fact that the
company no longer maintains offices, division personnel or operations in
Canada. GSI Group Inc. will remain as a Canadian domiciled company and shares
will continue to be able to be purchased and sold on the Nasdaq exchange under
the existing ticker symbol GSIG.
Dial In: October 26th at 8:00am EDT
GSI Group will host a conference call for investors at 8:00 a.m. Eastern
Time on October 26th. To participate, call (913) 981-5543. A replay of the
call will be available by dialing (719) 457-0820. Access code: 3414989. 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) and The Toronto Stock Exchange (GSI).
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 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)
September 30, July 1,
2005 2005
ASSETS
Current
Cash and cash equivalents $84,170 $64,014
Short-term investments 9,283 14,256
Accounts receivable, less allowance
of $1,327 (July 1, 2005 - $1,269) 51,751 61,011
Income taxes receivable 1,280 1,586
Inventories 63,010 63,977
Deferred tax assets 11,813 13,835
Other current assets 14,183 8,676
Total current assets 235,490 227,355
Property, plant and equipment,
net of accumulated depreciation of $20,716
(July 1, 2005 - $27,482) 38,263 45,261
Deferred tax assets 19,994 17,789
Other assets 2,846 2,758
Long-term investments 626 640
Intangible assets,
net of amortization of $3,550
(July 1, 2005 - $3,061) 16,199 16,821
Patents and acquired technology,
net of amortization of $29,271
(July 1, 2005 - $28,191) 28,759 30,001
Goodwill 26,421 26,421
$368,598 $367,046
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $13,471 $13,727
Income taxes payable 2,021 1,408
Accrued compensation and benefits 9,621 8,805
Other accrued expenses 16,718 17,335
Total current liabilities 41,831 41,275
Deferred compensation 2,530 2,490
Deferred tax liabilities 10,566 10,884
Other liability 27 83
Accrued minimum pension liability 9,278 9,471
Total liabilities 64,232 64,203
Commitments and contingencies
Stockholders' equity
Common shares, no par value;
Authorized shares: unlimited;
Issued and outstanding: 41,614,421
(July 1, 2005 - 41,581,447) 309,430 309,210
Additional paid-in capital 3,305 3,199
Retained earnings 3,308 1,266
Accumulated other comprehensive loss (11,677) (10,832)
Total stockholders' equity 304,366 302,843
$368,598 $367,046
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
Three Months Ended
September 30, July 1,
2005 2005
Sales $62,600 $66,850
Cost of goods sold 37,909 39,168
Gross profit 24,691 27,682
Operating expenses:
Research and development and engineering 6,141 6,368
Selling, general and administrative 14,375 15,098
Amortization of purchased intangibles 1,632 1,648
Other (income) expense (322) 4
Total operating expenses 21,826 23,118
Income from operations 2,865 4,564
Other income - 8
Interest income 521 387
Interest expense (58) (68)
Foreign exchange transaction gains (losses) (352) 325
Income before income taxes 2,976 5,216
Income tax provision 934 2,091
Net income $2,042 $3,125
Net income per common share:
Basic $0.05 $0.08
Diluted $0.05 $0.07
Weighted average common shares
outstanding (000's) 41,598 41,522
Weighted average common shares outstanding
for diluted net income per common share (000's) 41,965 41,728
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(U.S. GAAP and in thousands of U.S. dollars)
Three months ended
September 30, July 1,
2005 2005
Cash flows from operating activities:
Net income $2,042 $3,125
Adjustments to reconcile net income to
cash provided by (used in) operating activities:
(Gain) loss on disposal of assets (4) 4
Stock-based compensation 106 (28)
Depreciation and amortization 3,265 3,522
Unrealized loss (gain) on derivatives 1 (93)
Deferred income taxes (1,730) (720)
Changes in current assets and liabilities:
Accounts receivable 8,627 (8,652)
Inventories 473 (2,181)
Other current assets (5,991) (468)
Accounts payable, accrued expenses,
and taxes (receivable) payable 3,232 (2,637)
Cash provided by (used in) operating activities 10,021 (8,128)
Cash flows from investing activities:
Acquisitions of businesses - (71)
Sale of assets 5,809 1,550
Additions to property, plant and equipment, net (881) (1,132)
Proceeds from sales and maturities of
short-term and long-term investments 9,300 8,000
Purchases of short-term and
long-term investments (4,313) (9,243)
(Increase) in other assets (1) (16)
Cash provided by (used in) investing activities 9,914 (912)
Cash flows from financing activities:
Issue of share capital 298 273
Cash provided by financing activities 298 273
Effect of exchange rates on cash
and cash equivalents (77) (1,579)
Increase (decrease) in cash
and cash equivalents 20,156 (10,346)
Cash and cash equivalents, beginning of period 64,014 74,360
Cash and cash equivalents, end of period $84,170 $64,014
GSI GROUP INC.
Consolidated Analysis By Segment (unaudited)
(thousands of U.S. dollars)
Three Months Ended
September 30, July 1,
2005 2005
Sales:
Precision Motion Group $36,504 $34,151
Laser Group 10,009 11,426
Laser Systems Group 17,898 23,711
Intersegment sales elimination (1,811) (2,438)
Total $62,600 $66,850
Gross profit %:
Precision Motion Group 41.3% 41.9%
Laser Group 33.6% 36.1%
Laser Systems Group 35.1% 39.0%
Intersegment sales elimination 1.3% (0.4%)
Total 39.4% 41.4%
Segment income from operations:
Precision Motion Group $5,480 $4,872
Laser Group 108 803
Laser Systems Group 712 3,146
Total by segment 6,300 8,821
Unallocated amounts:
Corporate expenses 3,640 4,227
Amortization of purchased intangibles
not allocated to a segment 26 26
Other (231) 4
Income from operations $2,865 $4,564
GSI GROUP INC.
Consolidated Sales Analysis By Geographic Region (unaudited)
(millions of U.S. dollars)
Three months ended
September 30, 2005 July 1, 2005
% of % of
Sales Total Sales Total
North America $24.0 38% $28.9 43%
Latin and South America 0.3 - 0.4 1
Europe (EMEA) 11.6 19 11.2 17
Japan 11.0 18 9.0 13
Asia-Pacific, other 15.7 25 17.4 26
Total $62.6 100% $66.9 100%
SOURCE GSI Group Inc.
 back to top
Related links:
http://www.gsig.com
Company News On-Call:
http://www.prnewswire.com/comp/107189.html
CONTACT:
Ray Ruddy, Investor Relations of GSI Group
Inc., +1-978-439-5511, ext. 6170
|
