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ROFIN-SINAR TECHNOLOGIES
- PRESS RELEASE -
Contact: Katharina Manok
Gunther Braun
ROFIN-SINAR
734-416-0206
- or -
011-49-40-733-63-4256
ROFIN-SINAR REPORTS RESULTS FOR SECOND QUARTER FISCAL YEAR 2011
Second quarter order entry, sales and net income
increased by 47%, 42% and 173%, respectively, year-over-year
Plymouth, MI / Hamburg, Germany -- May 5, 2011 -- 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 second fiscal quarter and six months ended March 31,
2011.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three months ended Six months ended
3/31/11 3/31/10 % Change 3/31/11 3/31/10 % Change
-------- -------- --------- -------- -------- --------
Net sales $136,206 $ 95,937 + 42 % $273,338 $188,907 + 45 %
Net income $ 12,691 $ 4,657 + 173 % $ 27,569 $ 8,242 + 234 %
Earnings per share
"Diluted" basis $ 0.43 $ 0.16 + 169 % $ 0.95 $ 0.28 + 239 %
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 29.3 million and 29.5 million
for each of the fiscal quarters and 29.1 million and 29.5 million for the
six month periods ended March 31, 2011 and 2010, respectively.
"We are very pleased with the new record level of bookings that we achieved
during the second quarter as well as the improvement in sales and net income
over the prior fiscal year. We experienced strong demand for our macro
products from the machine tool industry, and our micro and marking business
was positively affected by the flexible packaging and electronics markets.
We are also satisfied with our overall quarterly financial results, which
were in line with our expectations, even after considering that net income
was negatively impacted by the weakening of the US Dollar and the
anticipated revenue recognition delays during the quarter," commented
Gunther Braun, CEO and President of RSTI. "Despite these impacts on the
bottom-line results, we believe that our record backlog, combined with
ongoing sales activities and focused efforts in the Asian markets, will
result in a successful fiscal year 2011."
(page)
FINANCIAL REVIEW
Second Quarter
Net sales totaled $136.2 million for the second quarter ended March 31,
2011, a 42%, or $40.3 million, increase from the comparable quarter of
fiscal year 2010. The weakening of the US dollar, mainly against the Euro,
resulted in an increase in net sales of $1.7 million in the second quarter.
Gross profit totaled $54.8 million, or 40% of net sales, compared to $37.2
million, or 39% of net sales, in the same period last fiscal year. RSTI net
income amounted to $12.7 million, or 9% of net sales, compared to $4.7
million, or 5% of net sales, in the second quarter of fiscal year 2010. The
diluted per share calculation equaled $0.43 for the quarter based upon 29.3
million weighted-average common shares outstanding, compared to the diluted
per share calculation of $0.16 based upon 29.5 million weighted-average
common shares outstanding for the same period last fiscal year.
Comparing the second fiscal quarters 2011 and 2010, SG&A expenses increased
by $2.9 million to $26.1 million, representing 19% of net sales, and second
quarter R&D expenses increased by $1.7 million to $9.5 million, representing
7% of net sales.
Sales of laser products used for macro applications increased by 40% to
$55.7 million, accounting for 41% of total sales. Sales of lasers for
marking and micro applications increased by 45% to $66.3 million and
represented 49% of total sales. Sales of components increased by 39% to
$14.3 million and represented 10% of total sales.
Six Months
For the six months ended March 31, 2011, net sales totaled $273.3 million,
an increase of $84.4 million, or 45%, over the comparable period in 2010.
The fluctuation of the US dollar, mainly against the Euro, resulted in a
decrease in net sales of $4.8 million for the six month period. Gross profit
for the period was $111.1 million, $38.1 million higher than in the same
period in 2010. RSTI net income for the six month period ended March 31,
2011, totaled $27.6 million. The diluted per share calculation equaled $0.95
for the six month period based upon 29.1 million weighted-average common
shares outstanding.
Net sales of lasers for macro applications increased by $25.5 million, or
31%, to $107.0 million, while net sales of lasers for marking and micro
applications increased by $50.9 million, or 58%, to $138.5 million. Sales of
components of $27.8 million increased by $8.0 million, or 40%, versus the
comparable period in fiscal year 2010.
On a geographical basis, net sales in North America in the first six months
increased by 54% and totaled $51.5 million (2010: $33.4 million). In Europe,
net sales increased by 31% to $128.3 million (2010: $98.0 million) and in
Asia, net sales increased by 63% to $93.5 million (2010: $57.5 million).
Order Backlog
Order entry for the quarter increased by 47% to $159.3 million compared to
the second quarter last fiscal year and resulted in a new record backlog of
$169.4 million at March 31, 2011, mainly for laser products. As of March 31,
2011, ROFIN-SINAR had a book-to-bill ratio for the second quarter of 1.17.
(page)
Other Developments - Share Buyback
As of March 31, 2011, the Company has purchased approximately 1.1 million
shares of common stock under the buyback program it announced in May 2010 for
a total amount of $28.2 million.
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 38,000 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 EST, today, Thursday, May
5, 2011. This call is also being broadcast live over the internet in listen-
only mode. 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 Delia Cannan at Taylor
Rafferty in New York at +1-212-889-4350 or Emilia Whitbread at Taylor Rafferty
in London +44(0) 207 614 2900).
(Tables to follow)
(page)
ROFIN-SINAR TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share data)
Three months Six months
Ended Ended
(unaudited) (unaudited)
---------------------- ----------------------
3/31/11 3/31/10 3/31/11 3/31/10
---------- ---------- ---------- ----------
-Macro $ 55,653 $ 39,941 $ 107,016 $ 81,526
-Marking/Micro 66,279 45,656 138,500 87,546
-Components 14,274 10,340 27,822 19,835
---------- ---------- ---------- ----------
Net sales 136,206 95,937 273,338 188,907
Cost of goods sold 81,436 58,728 162,201 115,827
---------- ---------- ---------- ----------
Gross profit 54,770 37,209 111,137 73,080
Selling, general, and
administrative expenses 26,053 23,166 51,669 44,977
Intangibles amortization 644 546 1,286 1,178
Research and development expenses 9,502 7,826 18,129 15,544
---------- ---------- ---------- ----------
Income from operations 18,571 5,671 40,053 11,381
Other income (expense) ( 699) 1,186 217 1,426
---------- ---------- ---------- ----------
Income before income tax 17,872 6,857 40,270 12,807
Income tax expense 5,074 2,109 12,382 4,356
---------- ---------- ---------- ----------
Net Income 12,798 4,748 27,888 8,451
---------- ---------- ---------- ----------
Net income attributable to
non-controlling interest 107 91 319 209
---------- ---------- ---------- ----------
Net income attributable to
RSTI $ 12,691 $ 4,657 $ 27,569 $ 8,242
========== ========== ========== ==========
Net income attributable to RSTI per share
"diluted" basis * $ 0.43 $ 0.16 $ 0.95 $ 0.28
"basic" basis ** $ 0.45 $ 0.16 $ 0.97 $ 0.28
* 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 29.3 million and 29.5 million
for each of the fiscal quarters and 29.1 million and 29.5 million for the six
month periods ended March 31, 2011 and 2010, respectively.
** The basic per share calculation is based on the weighted-average shares
outstanding for each period presented, which was 28.5 million and 29.1 million
for the fiscal quarters and 28.4 million and 29.1 million for the six month
periods ending March 31, 2011 and 2010, respectively.
(page)
ROFIN-SINAR TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
3/31/11 9/30/10
----------- -----------
ASSETS
Cash, cash equivalents and
short-term investments $ 119,011 $ 116,319
Trade accounts receivable, net 105,664 97,639
Inventories net 187,408 151,759
Other current assets 27,697 21,638
----------- ----------
Total current assets 439,780 387,355
Net property and equipment 56,735 52,651
Other non-current assets 125,471 118,186
----------- ----------
Total non-current assets 182,206 170,837
----------- ----------
Total assets $ 621,986 $ 558,192
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt $ 5,185 $ 5,173
Accounts payable, trade 25,731 23,173
Other current liabilities 89,559 71,566
----------- ---------
Total current liabilities 120,475 99,912
Long-term debt 16,160 15,488
Other non-current liabilities 28,000 25,316
----------- ---------
Total liabilities 164,635 140,716
Net stockholders' equity 457,351 417,476
----------- ---------
Total liabilities and stockholders' equity $ 621,986 $ 558,192
=========== ==========
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 "Despite these impacts
on the bottom-line results, we believe that our record backlog, combined
with ongoing sales activities and focused efforts in the Asian markets, will
result in a successful fiscal year 2011" 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 fourth
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.
