ROFIN-SINAR Reports Results For Third Quarter Fiscal Year 2012 - Board of Directors authorizes share buyback program -

PLYMOUTH, Mich. and HAMBURG, Germany, Aug. 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 third fiscal quarter and nine months ended June 30, 2012.

 

FINANCIAL HIGHLIGHTS

 

(dollars in thousands, except per share data)

 


Three months ended


Nine months ended










06/30/12

06/30/11

% Change

06/30/12

06/30/11

% Change








Net sales

$131,657

$154,911

- 15 %

$392,661

$428,249

- 8 %

RSTI net income

$8,356

$15,248

- 45 %

$24,466

$42,817

- 43 %

Earnings per share "Diluted" basis*

 

$0.29

 

$0.52

 

- 44 %

 

$0.85

 

$1.47

 

- 42 %

 

*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 29.2 million for each of the fiscal quarters and for the nine month periods ending June 30, 2012 and 2011, respectively.

"The quarterly results reflect the current global industrial economic environment for conventional laser technologies. The industrial material processing business continues to be influenced by the European debt crisis and the slower pace of GDP growth, mainly in China. The encouraging statements that we received from the Chinese machine tool industry in the spring time did not translate into substantially improved orders during the quarter. The automotive and semiconductor industries performed very well, while we experienced a lower level of activities in the solar industry. Despite the economic pressures, we are satisfied with our overall quarterly financial results, which were in line with our expectations," commented Gunther Braun, CEO and President of RSTI. "The global markets continue to be challenging and the currency translation into US dollars will put further pressure on order entry and sales figures in the coming quarters as the US dollar strengthens. However, we believe that our solid backlog, combined with ongoing sales activities and focused efforts in the Asian markets will help us to deliver reasonable fourth quarter results."

FINANCIAL REVIEW

- Third Quarter -
Net sales totaled $131.7 million for the third quarter ended June 30, 2012, a 15% decrease over the comparable quarter of fiscal year 2011. Gross profit totaled $49.3 million, or 37% of net sales, compared to $60.7 million, or 39% of net sales, in the same period of fiscal year 2011. RSTI net income amounted to $8.4 million, or 6% of net sales, compared to $15.2 million, or 10% of net sales, in the comparable quarter last fiscal year. The diluted per share calculation equaled $0.29 for the quarter based upon 28.8 million weighted-average common shares outstanding, compared to the diluted per share calculation of $0.52 based upon 29.2 million weighted-average common shares outstanding for the same period last fiscal year.

SG&A expenses in the amount of $25.3 million represented 19% of net sales and decreased by $3.4 million compared to last fiscal year's third quarter. Net R&D expenses increased by $2.0 million to $11.5 million (9% of net sales), compared to $9.5 million (6% of net sales) in the third quarter of fiscal year 2011.

Sales of laser products for macro applications decreased by 16% to $53.0 million and accounted for 40% of total sales. Sales of lasers for marking and micro applications decreased by 19% to $61.9 million and represented 47% of total sales. Sales of components increased by 11% to $16.8 million and represented 13% of total sales.

On a geographical basis, revenues in North America increased by 18%, totaling $32.0 million, whereas net sales decreased by 20% in Europe to $56.7 million, and by 24% in Asia to $43.0 million.

- Nine Months -
For the nine months ended June 30, 2012, net sales totaled $392.7 million, a decrease of $35.6 million, or 8%, over the comparable period in 2011. The fluctuation of the US dollar, mainly against the Euro, resulted in a decrease in net sales of $10.0 million for the nine month period. Gross profit for the period was $145.1 million, $26.7 million lower than in the same period in 2011. RSTI net income for the nine month period ended June 30, 2012, totaled $24.5 million. The diluted per share calculation equaled $0.85 for the nine month period based upon 28.8 million weighted-average common shares outstanding.

Net sales of lasers for macro applications decreased by $19.9 million, or 12%, to $150.2 million, while net sales of lasers for marking and micro applications decreased by $18.4 million, or 9%, to $196.9 million. Sales of components of $45.6 million increased by $2.7 million, or 6%, versus the comparable period in fiscal year 2011.

On a geographical basis, net sales in North America in the first nine months increased by 10% and totaled $87.0 million (2011: $78.8 million). In Europe, net sales decreased by 12% to $175.9 million (2011: $199.1 million) and in Asia, net sales decreased by 14% to $129.8 million (2011: $150.3 million).  

- Backlog -
Order entry for the quarter decreased by 17% to $135.3 million compared to the third quarter of fiscal year 2011 and resulted in a backlog of $157.0 million as of June 30, 2012, mainly for laser products. As of June 30, 2012, ROFIN-SINAR had a book-to-bill ratio of 1.03 for the third quarter.

- Other Developments: Share Buyback -
The Board of Directors yesterday authorized the Company to initiate a share buyback of up to $20.0 million of the Company's Common Stock over the next twelve months ending August 10, 2013, subject to market conditions. The shares may be repurchased from time to time in open market transactions or privately negotiated transactions at the Company's discretion.

- Outlook -
For the fourth quarter ending September 30, 2012, the Company expects revenues to be in the range of $125 million to $130 million and earnings per share to be in the range of $0.25 to $0.28. 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: www.rofin.com.

A conference call is scheduled for 11:00 AM Eastern, today, Thursday, August 2, 2012. This call is also being broadcast live over the internet in listen-only mode. A recording will be available on the Company's home page for approximately 90 days. For a live webcast, please go to 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

Nine months

Ended


(unaudited)

(unaudited)







06/30/12

06/30/11

06/30/12

06/30/11








- Macro

$52,959

$63,078

$150,224

$170,094


- Marking/Micro

61,914

76,780

196,836

215,279


- Components

16,784

15,053

45,601

42,876


Net Sales

131,657

154,911

392,661

428,249








Costs of goods sold

82,312

94,243

247,533

256,444








Gross profit

49,345

60,668

145,128

171,805


Selling, general and administrative expenses

 

25,303

 

28,731

 

76,405

 

80,399


Intangibles amortization

525

669

1,662

1,956


Research and development expenses

11,477

9,499

32,102

27,628








Income from operations

12,040

21,769

34,959

61,822








Other income (expense)

1,134

424

2,703

640








 

Income before income tax

 

13,174

 

22,193

 

37,662

 

62,462








Income tax expense

4,574

6,669

12,610

19,051








Net income

8,600

15,524

25,052

43,411








Net income attributable to non-controlling interest

 

244

 

276

 

586

 

594








Net income attributable to RSTI

8,356

15,248

24,466

42,817








Net income attributable to RSTI per share

*"diluted" basis

 

$0.29

 

$0.52

 

$0.85

 

$1.47


**"basic" basis

$0.29

$0.54

$0.86

$1.51








* 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 29.2 million for each of the fiscal quarters and the nine month periods ending June 30, 2012 and 2011, respectively.

 

**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 both fiscal quarters and for the nine month periods ending June 30, 2012 and 2011, respectively.


ROFIN-SINAR TECHNOLOGIES INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)









06/30/12

09/30/11






ASSETS









Cash, cash equivalents and short-term investments        


$96,985

$130,376


Trade accounts receivable, net                      


95,383

119,391


Inventories net                                      


204,641

188,847


Other current assets                                   


28,698

28,655



Total current assets


425,707

467,269


Net property and equipment         


74,521

65,554


Other non-current assets                                      


130,795

121,123



Total non-current assets


205,316

186,677








Total assets


$631,023

$653,946






LIABILITIES AND STOCKHOLDERS' EQUITY









Short-term debt                   


10,244

8,121


Accounts payable, trade          


26,588

27,082


Other current liabilities                       


72,746

98,738



Total current liabilities


109,578

133,941


Long-term debt                                    


6,199

14,742


Other non-current liabilities               


26,301

26,646



Total liabilities


142,078

175,329








Net stockholders' equity


488,945

478,617








Total liabilities and stockholders' equity


$631,023

$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 "The global markets continue to be challenging and the currency translation into US dollars will put further pressure on order entry and sales figures in the coming quarters as the US dollar strengthens. However, we believe that our solid backlog, combined with ongoing sales activities and focused efforts in the Asian markets will help us to deliver reasonable fourth quarter results" or "For the fourth quarter ending September 30, 2012, the Company expects revenues to be in the range of $125 million to $130 million and earnings per share to be in the range of $0.25 to $0.28" 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, fiber, 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.



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