Last Q GSLI report:
GSI Lumonics Announces Fourth Quarter and Fiscal 2003 Financial Results
Thursday February 26, 4:02 pm ET
BILLERICA, Mass., Feb. 26 /PRNewswire-FirstCall/ -- GSI Lumonics Inc., (Nasdaq: GSLI and TSX: LSI), a major supplier of precision components, lasers and laser systems, today announced financial results for the fourth quarter and for the twelve months ended December 31, 2003. (All data are expressed in U.S. GAAP and in U.S. dollars.)
Fourth Quarter Results
* Sales were $54.9 million for the fourth quarter of 2003, compared to
$45.1 million for the same period in 2002; an increase of 21.7%
* Net income was $2.5 million, or $0.06 per diluted share for the fourth
quarter, compared with a loss of $4.6 million, or $0.11 per diluted
share, for the same period last year.
* Bookings were $56.3 million (excluding Westwind) for the quarter, an
increase of 72% over the same period in 2002
* Backlog was $74.6 million at the end of the fourth quarter, compared to
$41.8 million for the same period in 2002. The Westwind acquisition
contributed $23.1 million to the backlog at the end of December, 2003.
* Gross margin for the quarter just ended 2003 was 39.1% of sales,
compared to 29.7% for the same period in 2002.
* Cash flow from operations was $13.9 million for the fourth quarter, as
compared to $9.6 million for the same quarter in 2002.
* Cash and investments totaled $107.3 million as of December 31, 2003.
The December 2003 acquisition of Westwind Air Bearings Ltd., a manufacturer of high precision rotary motion components, contributed $2.5 million of revenue for the fourth quarter. "The Westwind acquisition is expected to be accretive to earnings in the first quarter of 2004," said Charles Winston, President and CEO. "Its significant presence in PCB manufacturing has been beneficial as the electronics industry is growing."
Geographically, sales for the fourth quarter of 2003 were as follows: approximately 47% in the Americas, 39% in Asia-Pacific, including Japan, and 14% in Europe. For the same period in 2002, sales were distributed as follows: 50% in the Americas, 34% in Asia-Pacific, including Japan, and 16% in Europe.
"We are experiencing improved demand in all three segments of our business in this most recent quarter," said Mr. Winston. "There appears to be a gradual economic recovery driven initially by the consumer electronic markets, and more recently joined by the business sector stimulating demand for manufacturing equipment which requires our components, lasers and systems. We are maintaining a cautiously optimistic approach to the recovery as we continue to focus on cost controls and operational efficiency improvements."
For the fiscal year 2003, sales rose 16.7% to $185.6 million from $159.1 million in 2002. The 2003 net loss of $2.2 million, or $0.05 per diluted share was an improvement of $25.5 million over the loss of $27.7 million, or $0.68 per diluted share for 2002. Increased revenues, combined with operating expense reductions of $13.9 million were the primary factors to this performance improvement.
Operating expenses for the fourth quarter 2003 included $0.7 million for a pension plan underfunding (the plan was frozen in 2003) and $0.7 million reported as restructuring costs for excess facilities in Munich, Germany. The Company expensed $0.4 million related to the resolution of a legal matter.
As of December 31, 2003, headcount was 1,067, up from 793 at year-end 2002. This increase was mainly due to the acquisitions of Spectron laser product lines, DRC's Encoder division and Westwind Air Bearings.
Business Segment Reporting
In comparing the fourth quarter sales in 2003 with the same period in
2002:
* Laser Systems' increase of $5.1 million is attributed mostly to trim and
test equipment.
* The Laser group increase of $2.7 million was from JK series product and
the acquired Spectron products.
* The Components segment increase of $3.6 million was generated from the
Westwind and DRC acquisitions.
The Laser Systems segment contributed an operating profit of $5.1 million for the fourth quarter 2003, as compared to a loss of $2.4 million in the same period last year. This improvement was generated by a combination of higher sales volume, margin improvements and lower operating expenses in the fourth quarter 2003, as compared to the same period in 2002. Operating expenses were $1.5 million lower in the Laser Systems segment in the fourth quarter 2003 compared to the same quarter in 2002.
The Laser group had operating income of $1.0 million in the fourth quarter 2003 versus a loss of $0.5 million in the same period last year, driven primarily by increased sales volume and margin improvement.
The Components segment reported operating income of $3.7 million for the fourth quarter 2003. This was a decrease of $0.2 million from the same period last year. The decrease in operating income was caused by higher material and operating costs.
Financial Condition
At December 31, 2003, cash, cash equivalents, short-term investments and other investments totaled $107.3 million, compared to $150.0 million at December 31, 2002. The Company continues to operate debt-free. During the fourth quarter 2003, the acquisition of Westwind Air Bearings was completed requiring a net cash outlay of $34.9 million. Cash flow from operations was $13.9 million for the fourth quarter in 2003, driven by tax refunds and increased payables and accruals. These were partially offset by growth in receivables. In the fiscal year 2003, cash flow from operations was $22.0 million versus $11.7 million in the prior year.
[Harry: If I had to guess I would assume most of the group came from semi equipment relate gear in the laser systems segment as it showed organic growth last Q. Possible benefit for CYMI.] |
