UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 0-12853
ELECTRO SCIENTIFIC INDUSTRIES, INC.
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Oregon |
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93-0370304 |
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(State or
other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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13900 N.W. Science Park Drive, Portland, Oregon |
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97229 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number: (503) 641-4141
Registrant’s web address: www.esi.com
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
The number of shares outstanding of the Registrant’s Common Stock at March 30, 2004 was 28,093,491 shares.
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Consolidated Condensed Balance Sheets – February 28, 2004 and May 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1
PART I - FINANCIAL INFORMATION
ELECTRO SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
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February 28, |
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May 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
41,874 |
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$ |
31,017 |
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Marketable securities |
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221,455 |
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211,343 |
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Restricted securities |
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6,196 |
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9,422 |
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Total cash and securities |
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269,525 |
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251,782 |
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Trade receivables, net of allowances of $871 and $2,245, respectively |
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44,255 |
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37,160 |
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Income tax refund receivable |
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32,274 |
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16,499 |
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Inventories, net |
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51,536 |
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42,067 |
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Shipped systems pending acceptance |
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5,443 |
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7,058 |
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Deferred income taxes |
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14,794 |
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14,794 |
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Assets held for sale |
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8,842 |
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6,451 |
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Other current assets |
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3,238 |
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3,445 |
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Total current assets |
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429,907 |
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379,256 |
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Long-term marketable securities |
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25,388 |
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53,452 |
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Long-term restricted securities |
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— |
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3,018 |
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Total long-term securities |
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25,388 |
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56,470 |
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Property, plant and equipment, net of accumulated depreciation of $40,687 and $35,091, respectively |
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34,657 |
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36,592 |
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Deferred income taxes |
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5,820 |
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5,188 |
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Other assets |
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8,623 |
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13,796 |
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Total assets |
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$ |
504,395 |
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$ |
491,302 |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
14,567 |
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$ |
4,395 |
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Accrued liabilities |
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20,110 |
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21,477 |
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Deferred revenue |
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16,620 |
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13,222 |
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Total current liabilities |
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51,297 |
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39,094 |
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Convertible subordinated notes |
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142,542 |
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141,891 |
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Total liabilities |
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193,839 |
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180,985 |
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Shareholders’ equity: |
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Preferred stock, without par value; 1,000 shares authorized; no shares issued |
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— |
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— |
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Common stock, without par value; 100,000 authorized; 28,091 and 27,843 shares issued and outstanding, respectively |
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145,774 |
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140,231 |
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Retained earnings |
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165,207 |
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169,475 |
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Accumulated other comprehensive income (loss) |
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(425 |
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611 |
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Total shareholders’ equity |
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310,556 |
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310,317 |
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Total liabilities and shareholders’ equity |
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$ |
504,395 |
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$ |
491,302 |
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The accompanying notes are an integral part of these statements.
2
ELECTRO SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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For the Three Months Ended |
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For the Nine Months Ended |
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Feb. 28, 2004 |
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Mar. 1, 2003 |
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Feb. 28, 2004 |
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Mar. 1, 2003 |
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Net sales |
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$ |
58,770 |
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$ |
31,631 |
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$ |
125,399 |
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$ |
114,407 |
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Cost of sales |
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35,444 |
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32,175 |
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81,570 |
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96,134 |
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Gross profit |
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23,326 |
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(544 |
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43,829 |
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18,273 |
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Operating expenses: |
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Selling, service and administration |
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13,502 |
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16,140 |
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41,408 |
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47,261 |
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Research, development and engineering |
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5,429 |
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5,706 |
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16,593 |
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20,618 |
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18,931 |
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21,846 |
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58,001 |
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67,879 |
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Operating income (loss) |
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4,395 |
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(22,390 |
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(14,172 |
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(49,606 |
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Interest income |
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1,764 |
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2,358 |
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5,660 |
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7,680 |
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