ESI Announces FY1998 Third Quarter Earnings
PR Newswire - March 16, 1998 16:01
%CPR %ERN ESIO V%PRN P%PRN
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PORTLAND, Ore., March 16 /PRNewswire/ -- Electro Scientific Industries,
Inc. (Nasdaq: ESIO) announced third quarter sales of $57.6 million and
operating income of $10.5 million, excluding merger related expenses of
$3.5 million. These results compare to second quarter sales of $59.9 million
and operating income of $10.9 million.
The new accounting standard for reporting earnings per share (EPS), SFAS
No. 128, is effective this period. Third quarter basic EPS was $0.67 and
diluted EPS was $0.65 excluding merger costs. Previously reported EPS figures
are the equivalent of basic earnings per share -- e.g., ESI's second quarter
basic EPS was $0.72 and diluted EPS was $0.70.
In announcing the results, Donald R. VanLuvanee, ESI's CEO and President
said, "The results this quarter reflect the strength of our products and the
diversification of our revenue stream. The 56% gross margin performance is
indicative of ESI's high value products, during a time when our customers face
substantial uncertainty."
VanLuvanee continued, "We continue to monitor the instability in the Asian
financial markets and have seen economic pressures decrease demand from some
Asian customers. Third quarter growth in ESI's advanced packaging and circuit
fine-tuning businesses, along with continued strong demand for our electronic
components systems, offset the effect of lower memory yield improvement and
vision systems sales."
All results reflect the pooling-of-interest merger with Applied
Intelligent Systems, Inc., completed on December 1, 1997. Year-to-date
results include a pooling merger with Chip Star and a purchase merger with
Dynamotion in June 1997. First quarter results also include merger related
costs of $11.1 million. These costs include a one-time acquired research and
development charge and transaction costs. Backlog as of February 28, 1998,
was $30 million, compared to $32 million on November 30, 1997.
Statements in this press release may include forward looking statements
that involve a number of risks and uncertainties that could cause actual
results to materially differ, either better or worse, from those discussed.
Such risks and uncertainties are numerous and are identified in filings with
the SEC, including the Company's Annual Report on Form 10-K and interim
reports on Form 10-Q for fiscal 1998.
About ESI
ESI, headquartered in Portland, Oregon, designs and manufactures
sophisticated products used around the world in electronics manufacturing
including: laser manufacturing systems for semiconductor yield improvement;
production and test equipment for the manufacture of surface mount ceramic
capacitors; laser trim systems for precise electrical tuning of circuits;
precision laser and mechanical drilling systems for electronic interconnect;
and machine vision systems. Electro Scientific Industries is traded on the
Nasdaq National Market System under the symbol, "ESIO." ESI's web site is
esio.com.
Electro Scientific Industries, Inc.
FY 1998 Results
(In thousands, except per share data)
Operating Results:
Three Months Ended Nine Months Ended
Feb-98 Feb-97 Feb-98 Feb-97
Net sales $57,594 $45,764 $174,585 $125,842
Gross margin 32,299 25,011 97,140 68,186
Operating expenses:
Selling, service
and administrative 14,321 11,162 42,593 31,638
Research, engineering
and development 7,499 5,212 21,317 16,292
Merger related expenses 3,510 0 14,634 0
Total operating expenses 25,330 16,374 78,544 47,930
Operating income 6,969 8,637 18,596 20,256
Interest income 435 392 1,345 1,129
Other income (expense) 295 91 619 (776)
Income before income taxes 7,699 9,120 20,560 20,609
Provision for income taxes 3,165 3,100 9,969 8,491
Net income $4,534 $6,020 $10,591 $12,118
Net income per
share - Basic $0.41 $0.57 $0.96 $1.15
Net income per
share - Diluted $0.40 $0.55 $0.93 $1.11
Pro-forma EPS - Basic * $0.67 $0.57 $2.13 $1.15
Pro-forma EPS - Diluted * $0.65 $0.55 $2.07 $1.11
* Excludes the acquired research and development charge and transaction
costs of mergers in fiscal 1998.
Electro Scientific Industries, Inc.
Analysis of FY 1998 Results
(Dollars in thousands)
Three Months Ended Nine Months Ended
Feb-98 Feb-97 Feb-98 Feb-97
Sales detail:
Semiconductor yield
improvement systems $14,781 $14,195 $49,164 $46,568
Capacitor production
equipment 17,698 14,474 50,826 33,951
Laser fine tuning
systems 6,830 7,511 18,108 21,618
Electronic packaging 11,337 3,072 29,287 7,545
Vision systems 6,948 6,512 27,200 16,160
Total $57,594 $45,764 $174,585 $125,842
Gross margin % * 56.1% 54.7% 55.6% 54.2%
Selling, service and
administrative
expense % * 24.9% 24.4% 24.4% 25.1%
Research, engineering
and development
expense % * 13.0% 11.4% 12.2% 12.9%
Operating income
margin % * 18.2% 18.9% 19.0% 16.1%
Effective tax rate % * 34.0% 34.0% 33.3% 41.2%
Average shares
outstanding - Basic 10,973 10,507 11,006 10,494
Average shares
outstanding - Diluted 11,306 11,000 11,343 10,875
* Excludes the acquired research and development charge and transaction
costs of mergers in fiscal 1998.
Electro Scientific Industries, Inc.
FY 1998 Results
(Amounts in thousands)
Financial Position As Of: Feb-98 Nov-97 May-97
Cash and S/T investments $37,760 $44,916 $48,175
Trade receivables 63,060 56,391 54,321
Inventory 53,058 45,459 35,023
Deferred tax assets 3,966 3,966 3,966
Other current assets 2,785 2,123 675
Total current assets 160,629 152,855 142,160
Property and equipment, net 25,474 24,335 19,033
Deferred tax assets 4,042 4,042 1,042
Other assets 7,912 9,028 5,115
Total assets $198,057 $190,260 $167,350
Current liabilities $25,608 $23,628 $20,655
Long-term debt 0 0 0
Shareholders' equity 172,449 166,632 146,695
Total liabilities and equity $198,057 $190,260 $167,350
End of period shares outstanding 11,165 11,080 10,594
SOURCE Electro Scientific Industries, Inc.
/CONTACT: investors, Joe Reinhart, 503-671-5500, or press, Kimberly
McAlear, 503-671-5233, both of Electro Scientific Industries, Inc./ |
