ESI Announces First Quarter Sales and Earnings
PR Newswire - September 17, 1998 16:20
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PORTLAND, Ore., Sept. 17 /PRNewswire/ -- Electro Scientific Industries, Inc. (Nasdaq: ESIO) reported sales for the first quarter of fiscal 1999 of $45.2 million with earnings of $1.2 million or $0.11 per diluted share. This compares with sales of $57.1 million and earnings of $8.1 million or $0.71 per diluted share in the first quarter of fiscal 1998, excluding merger related costs.
"Our customers, in all geographic regions, are looking for immediate value in their equipment investments," said Donald R. VanLuvanee, ESI's Chief Executive Officer and President. "We are focusing our efforts on those activities that translate into enabling capability and cost reduction for our customers."
VanLuvanee continues, "With the effect of global economic uncertainty, visibility going forward remains low. Book-to-ship time continues to decrease, resulting in backlog of $13 million on August 31, 1998 versus $22 million on May 31, 1998."
ESI's first quarter gross margin was adversely impacted by lower sales volume and a sales shift to lower margin products. The financial position of the Company remains strong, with no long-term debt.
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 the Company's Annual Report on Form 10-K and interim reports on Form 10-Q.
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 1999 Results
(In thousands, except per share data)
Operating Results: Three Months Ended
Aug-98 May-98 Aug-97
Net sales $45,192 $55,034 $57,119
Gross margin 22,400 27,787 32,235
Operating expenses:
Selling, service and administrative 13,466 14,552 13,569
Research, engineering and development 7,473 7,194 6,786
Merger related expenses - Dynamotion 0 0 11,124
Total operating expenses 20,939 21,746 31,479
Operating income 1,461 6,041 756
Interest income 369 370 490
Other income (expense) 43 (119) 57
Income before income taxes 1,873 6,292 1,303
Provision for income taxes 632 0 3,221
Net income $1,241 $6,292 $(1,918)
Net income per share - Basic $0.11 $0.56 $(0.17)
Net income per share - Diluted $0.11 $0.54 $(0.17)
Pro-forma EPS - Basic * $0.11 N/A $0.75
Pro-forma EPS - Diluted * $0.11 N/A $0.71
* Excludes the acquired research and development charge and transaction costs of mergers in fiscal 1998.
Electro Scientific Industries, Inc.
Analysis of FY 1999 Results
(Dollars in thousands)
Three Months Ended
Aug-98 May-98 Aug-97
Sales detail:
Semiconductor yield
improvement systems $14,683 $12,189 $17,771
Capacitor production equipment 7,816 13,772 15,563
Laser fine tuning systems 6,948 8,596 6,392
Electronic packaging 11,688 15,434 7,585
Vision systems 4,057 5,043 9,808
Total $45,192 $55,034 $57,119
Gross margin % 49.6% 50.5% 56.4%
Selling, service and
administrative expense % 29.8% 26.4% 23.8%
Research, engineering and
development expense % * 16.5% 13.1% 11.9%
Operating income margin % * 3.2% 11.0% 20.8%
Effective tax rate % * 33.8% 0.0% 31.3%
Average shares outstanding - Basic 11,384 11,304 10,968
Average shares outstanding - Diluted 11,654 11,722 11,590
* Excludes the acquired research and developmentcharge and transaction costs of mergers in fiscal 1998.
Electro Scientific Industries, Inc.
FY 1999 Results
(Amounts in thousands)
Financial Position As Of: Aug-98 May-98 Feb-98
Cash and S/T investments $31,513 $38,916 $37,760
Trade receivables 69,569 61,890 63,060
Inventory 49,491 49,805 53,058
Deferred tax assets 4,788 4,788 3,966
Other current assets 5,315 3,558 2,785
Total current assets 160,676 158,957 160,629
Property and equipment, net 28,746 27,638 25,474
Deferred tax assets 2,692 2,692 4,042
Other assets 10,835 10,156 7,912
Total assets $202,949 $ 199,443 $198,057
Current liabilities $18,455 $17,162 $25,608
Long-term debt 0 0 0
Shareholders' equity 184,494 182,281 172,449
Total liabilities and equity $202,949 $ 199,443 $198,057
End of period shares outstanding 11,397 11,368 11,165
SOURCE Electro Scientific Industries, Inc.
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