Rofin-Sinar Sales, Net Income Slip
PLYMOUTH – Rofin-Sinar Technologies Inc. (Nasdaq: RSTI), the industrial laser manufacturer with dual headquarters in Plymouth and in Hamburg, Germany, Thursday reported lower sales and profits for its first fiscal quarter ended Dec. 31.
For the quarter, revenue was $131.6 million, down 4 percent from $137.1 million a year earlier. Net income was $8.1 million or 28 cents a share, down 46 percent from $14.9 million or 51 cents a share a year earlier.
“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,” said Gunther Braun, RSTI president and CEO. “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. 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.”
The company said the weakening of the United States dollar, mainly against the Euro, resulted in an increase in net sales of $900,000 million in the first quarter. Gross profit totaled $46.9 million, or 36 percent of net sales, compared to $56.4 million, or 41 percent of net sales, in the same period of fiscal year 2011.
Selling, general and administrative expenses were $24.7 or 19 percent of net sales, down $900,000 from a year earlier. Net R&D expenses increased by $1.9 million to $10.5 million (8 percent of net sales), compared to $8.6 million (6 percent of net sales) in the first quarter of fiscal year 2011.
Sales of laser products for macro applications decreased 10 percent to $46.4 million and accounted for 35 percent of total sales. Sales of lasers for marking and micro applications remained stable with $72.6 million and represented 55 percent of total sales. Sales of components decreased by 7 percent to $12.6 million and represented 10 percent of total sales.
On a geographical basis, revenues in North America increased by 1 percent, totaling $26.9 million, whereas net sales decreased by 1 percent in Europe, to $59.4 million, and by 11 percent in Asia, to $45.3 million.
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 27 to 30 cents.
With production facilities in the U.S., Germany, the United Kingdom, 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.
To listen to a replay of a conference call discussing these results, visit www.rofin.com.