GSLI ($8-$7) P/E 7.2 In line, rev's fell 17%,warns for rest of year...no visibility.
GSI Lumonics Reports Second Quarter 2001 Financial Results
PR Newswire - Tuesday, July 31, 2001
KANATA, Ontario, July 31 /PRNewswire/ -- GSI Lumonics Inc., (Nasdaq: GSLI and Toronto: LSI) today reported financial results for the three months ended June 29, 2001. (All data is expressed in U.S. GAAP and in U.S. dollars.)
Net income for the second quarter of fiscal 2001 was $3.6 million ($0.9 per share basic and diluted) compared to $5.8 million ($0.15 per share basic and $0.14 diluted) in the same period in 2000. For the six months ended June 29, 2001, net income was $8.4 million ($0.21 per share basic and $0.20 diluted) compared to $10.6 million ($0.29 per share basic and $0.28 diluted) in the same period in 2000.
Sales in the second quarter of 2001 were $76.5 million compared to $92.8 million in the second quarter of 2000. On a pro forma basis, net of discontinued and divested products, sales grew to $71.0 million in the second quarter of this year from $66.6 million in the second quarter of last year. Sales for the first six months of 2001 were $164.2 million compared to $180.7 million in the comparable period last year. On a pro forma basis, net of discontinued and divested products, sales grew to $150.0 million in the first six months of this year from $129.6 million in the first six months of last year.
Sales of systems to the Semiconductor and Electronics markets totaled $38.8 million in the quarter just ended compared to $44.6 million in the second quarter of last year. On a pro forma basis, net of discontinued and divested products, sales of systems to the Semiconductor and Electronics markets were approximately $37.3 million in the second quarter of this year compared to $39.4 million in the second quarter of last year.
New orders booked during the second quarter of 2001 were $34 million compared to $108 million ($86 million net of discontinued and divested products). The decline in bookings was primarily in the Company's laser systems for semiconductor and electronics applications. Backlog at June 30, 2001 was $65 million compared to $103 million ($82 million net of discontinued and divested products) at the end of the second quarter last year.
For the second quarter of 2001, geographically, approximately 48% of sales were in North America, 31% in Asia-Pacific, including Japan, and 21% in Europe.
Gross profit margins were 38.4% in the second quarter of 2001 compared to 39.9% in the same period in 2000. Gross margins were below expectations due primarily to inventory loss provisions reflecting lower production volume, discontinued products and exposure due to market conditions.
Commenting on the quarter, Charles Winston, President and Chief Executive Officer of GSI Lumonics, said "Although we anticipated weakness in orders, as is being experienced by our peers, the drop in order activity in the second quarter was greater than expected; and our visibility going forward is limited." He noted that "GSI Lumonics enters this period of uncertainty with a strong cash position. We will focus our resources on those new product development activities which will drive our business in the future."
Financial Condition
At June 29, 2001, cash, cash equivalents and short-term investments were $109.9 million. In addition, the Company owns approximately 4.5 million shares of unregistered Packard BioScience Company common stock with a quoted market value of approximately $37 million at June 29, 2001. Bank debt and the current portion of long-term debt at the end of the second quarter 2001 totaled $14.3 million.
Outlook and Commentary
Normally, GSI Lumonics experiences seasonality in both sales and bookings, with softness in the first quarter, strength in the spring, slowdown in the summer months, followed by a strong fourth quarter. Given the change in booking patterns experienced in the first quarter and second quarter of this year, the discontinuance of our general purpose marker product line, and net of the recently completed divestiture in early April, we expect that consolidated quarterly sales will decline in the third and fourth quarters from the sales level experienced in the second quarter. The Company has initiated a series of cost reductions. However, the investment in new product development will not be impacted by these actions, as we believe this is critical to the Company's success going forward. As a result, the Company expects to incur moderate operating losses in each of the third and fourth quarters of this calendar year. GSI Lumonics Inc. supplies advanced laser systems, components and services to semiconductor, electronics and other markets, and precision optics for telecommunications networks. GSI Lumonics' common shares are listed on Nasdaq (GSLI) and The Toronto Stock Exchange (LSI). The Company's web site address is www.gsilumonics.com.
A conference call is scheduled for 5:00PM EST, today, Tuesday July 31st. To participate, call 1-800-558-9407 no later than 4:55PM EST and identify yourself to the operator. A replay of the call will be available one hour after the call ends through August 6, 2001 at 800-633-8284 or 858-812-6440 for international callers, access code 19114764. This call is also being broadcast live over the internet in listen-only mode. For live webcasting, go to www.videonewswire.com/event.asp?id=291 at least 15 minutes prior to the call in order to register, download, and install any necessary software. |
