ROFIN-SINAR Reports Results for the First Quarter of Fiscal Year 2012

Feb 02, 2012, 08:00 ET from ROFIN-SINAR Technologies Inc.

PLYMOUTH, Mich. and HAMBURG, Germany, Feb. 2, 2012 /PRNewswire/ -- ROFIN-SINAR Technologies Inc. (NASDAQ: RSTI), one of the world's leading developers and manufacturers of high-performance laser beam sources and laser-based solutions, today announced results for its first fiscal quarter ended December 31, 2011.

FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data)

Three months ended

% Change

12 / 31 / 11

12 / 31 / 10

Net Sales

$131,570

$137,132

-    4%

RSTI Net Income

$8,077

$14,878

-  46%

Earnings Per Share "Diluted" Basis*

$0.28

$0.51

-   45%

*The diluted per share calculation is based on the weighted-average shares outstanding and the potential dilution from common stock equivalents (stock options) for each period presented, which was 29.0 million and 28.8 million for the fiscal quarters ended December 31, 2010 and 2011, respectively.

"The challenging macro-economic environment, caused especially by the European debt crisis and China's attempts to curb inflation, had a major impact on our first quarter order entry and sales. Lower demand came in particular from the machine tool and electronics industry, while laser sales for applications in the semiconductor and medical device industries improved slightly. Our net income reflects this lower revenue level, and takes into account postponed shipments by customers of approximately $10 million and an unfavorable product mix," commented Gunther Braun, CEO and President of RSTI. "We expect business conditions in China to improve as we have customer indications, based on more optimistic judgements about their future prospects, that this region is on track for revitalization. Therefore, we believe that we have experienced the bottom of the slowdown and will see better results in the next quarters."

FINANCIAL REVIEW

- First Quarter - Net sales totaled $131.6 million for the first quarter ended December 31, 2011, a 4% decrease over the comparable quarter of fiscal year 2011. The weakening of the US dollar, mainly against the Euro, resulted in an increase in net sales of $0.9 million in the first quarter. Gross profit totaled $46.9 million, or 36% of net sales, compared to $56.4 million, or 41% of net sales, in the same period of fiscal year 2011. RSTI net income amounted to $8.1 million, or 6% of net sales, compared to $14.9 million, or 11% of net sales, in the comparable quarter last fiscal year. The diluted per share calculation equaled $0.28 for the quarter based upon 28.8 million weighted-average common shares outstanding, compared to the diluted per share calculation of $0.51 based upon 29.0 million weighted-average common shares outstanding for the same period last fiscal year.

SG&A expenses in the amount of $24.7 million represented 19% of net sales and decreased by $0.9 million compared to last fiscal year's first quarter. Net R&D expenses increased by $1.9 million to $10.5 million (8% of net sales), compared to $8.6 million (6% of net sales) in the first quarter of fiscal year 2011.

Sales of laser products for macro applications decreased by 10% to $46.4 million and accounted for 35% of total sales. Sales of lasers for marking and micro applications remained stable with $72.6 million and represented 55% of total sales. Sales of components decreased by 7% to $12.6 million and represented 10% of total sales.

On a geographical basis, revenues in North America increased slightly by 1%, totaling $26.9 million, whereas net sales decreased marginally by 1% in Europe, to $59.4 million, and by 11% in Asia, to $45.3 million.

- Backlog - Order entry for the quarter decreased by 15% to $122.4 million compared to the first quarter of fiscal year 2011 and resulted in a backlog of $144.0 million as of December 31, 2011, mainly for laser products. As of December 31, 2011, ROFIN-SINAR had a book-to-bill ratio of 0.93 for the first quarter.

- Outlook - For the second quarter ending March 31, 2012, the Company expects revenues to be in the range of $130 million to $135 million and earnings per share to be in the range of $0.27 to $0.30. Actual results may differ from this forecast and are subject to the safe harbor statement discussed in more detail below.

With operational headquarters in Plymouth, Michigan, and Hamburg, Germany, ROFIN-SINAR Technologies Inc. designs, develops, engineers and manufactures laser sources and laser-based system solutions for a wide range of applications. With production facilities in the US, Germany, UK, Sweden, Finland, Switzerland, Singapore, and China, ROFIN-SINAR is one of the world's leading designers and manufacturers of industrial lasers and currently has more than 42,000 laser units installed worldwide and serves more than 4,000 customers. ROFIN-SINAR's shares trade on the NASDAQ Global Select Market under the symbol RSTI and are listed in Germany in the "Prime Standard" segment of the Frankfurt Stock Exchange under ISIN US7750431022. ROFIN is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index. Additional information is available on ROFIN-SINAR's home page: http://www.rofin.com.

A conference call is scheduled for 11:00 AM Eastern, today, Thursday, February 2, 2012. This call is also being broadcast live over the internet in listen-only mode. The record will be available on the Company's home page for approximately 90 days. For a live webcast, please go to http://www.rofin.com at least 10 minutes prior to the call in order to download and install any necessary software. For more information, please contact Bryan Degnan at King Worldwide in New York at +1-212-889-4350 or Miles Chapman at King Worldwide in London at +44(0) 207 614 2900.

(Tables to follow)

ROFIN-SINAR TECHNOLOGIES INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(in thousands, except per share data)

Three Months Ended

Twelve Months Ended

(unaudited)

(audited)

12/31/11

12/31/10

9/30/11

- Macro

$46,355

$51,363

$237,449

- Marking/Micro

72,575

72,221

302,330

- Components

12,640

13,548

57,984

Net Sales

131,570

137,132

597,763

Costs of goods sold

84,625

80,765

365,684

Gross profit

46,945

56,367

232,079

Selling, general and administrative expenses

24,719

25,616

107,510

Intangibles amortization

600

643

2,569

Research and development expenses

10,524

8,627

38,337

Income from operations

11,102

21,481

83,663

Other income

1,092

917

3,480

Income before income tax

12,194

22,398

87,143

Income tax expense

3,958

7,308

26,070

Net income

8,236

15,090

61,073

Net income attributable to the non-controlling interest

159

212

1,041

Net income attributable to RSTI

8,077

14,878

60,032

Net income attributable to RSTI per share

* "diluted" basis

$0.28

$0.51

$2.06

** "basic" basis

$0.28

$0.52

$2.11

*The diluted per share calculation is based on the weighted-average shares outstanding and the potential dilution from common stock equivalents (stock options) for each period presented, which was 28.8 million and 29.0 million for the fiscal quarters ending December 31, 2011 and 2010, respectively, and 29.1 million for the 12 month period ending September 30, 2011.

**The basic per share calculation is based on the weighted-average shares outstanding for each period presented, which was 28.5 million and 28.4 million for the fiscal quarters ending December 31, 2011 and 2010, respectively, and 28.4 million for the 12 month period ending September 30, 2011.

ROFIN-SINAR TECHNOLOGIES INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

12/31/11

09/30/11

ASSETS

Cash, cash equivalents and short-term investments

$114,888

$130,376

Trade accounts receivable, net

88,541

119,391

Inventories net

191,594

188,847

Other current assets

28,207

28,655

     Total current assets

423,230

467,269

Net property and equipment

68,396

65,554

Other non-current assets

131,691

121,123

     Total non-current assets

200,087

186,677

     Total assets

$623,317

$653,946

LIABILITIES AND STOCKHOLDERS' EQUITY

Short-term debt

5,264

8,121

Accounts payable, trade

19,656

27,082

Other current liabilities

78,910

98,738

     Total current liabilities

103,830

133,941

Long-term debt

13,997

14,742

Other non-current liabilities

26,427

26,646

     Total liabilities

144,254

175,329

     Net stockholders' equity

479,063

478,617

     Total liabilities and stockholders' equity

$623,317

$653,946

The Company's conference call will include discussions relative to the current quarter results and some comments regarding forward-looking guidance on future operating performance.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act.

Certain information in this press release that relates to future plans, events or performance, including statements such as "we expect business conditions in China to improve as we have customer indications, based on more optimistic judgements about their future prospects, that this region is on track for revitalization" or "we believe that we have experienced the bottom of the slowdown and will see better results in the next quarters" or "for the second quarter ending March 31, 2012, the Company expects revenues to be in the range of $130 million to $135 million and earnings per share to be in the range of $0.27 to $0.30" is forward-looking and is subject to important risks and uncertainties that could cause actual results to differ. Actual results could differ materially based on numerous factors, including currency risk, competition, risk relating to sales growth in CO2, diode, and solid-state lasers, cyclicality, conflicting patents and other intellectual property rights of fourth parties, potential infringement claims and future capital requirements, as well as other factors set forth in our annual report on Form 10-K. These forward-looking statements represent the Company's best judgment as of the date of this release based in part on preliminary information and certain assumptions which management believes to be reasonable. The Company disclaims any obligation to update these forward-looking statements.

Contact:

Katharina Manok

Gunther Braun

ROFIN-SINAR

734-416-0206

- or -

011-49-40-733-63-4256

SOURCE ROFIN-SINAR Technologies Inc.



RELATED LINKS

http://www.rofin.com