PLYMOUTH – Rofin-Sinar Technologies Inc., the industrial laser maker with dual headquarters in Plymouth and Hamburg, Germany, reported lower revenue and net income for the second fiscal quarter and the first six months of the fiscal year ended March 31.
For the quarter, revenue was $129.4 million, down 5 percent from $136.2 million a year earlier. For the six months, revenue was $261 million, down 5 percent from $273.3 million a year earlier.
Net income for the quarter was $8 million or 28 cents a share, down 37 percent from $12.7 million or 43 cents a share a year earlier. For the six months, net income was $16.1 million or 56 cents a share, down 42 percent from $27.6 million or 95 cents a share a year earlier.
“The weak economic environment which we faced at the end of calendar year 2011 carried over into the early part of 2012, leading to a slow start to our second quarter,” said Gunther Braun, president and CEO. “During the quarter, however, we experienced recovered demand from the machine tool industry as well as a solid business in the medical device and solar industries, whereas sales to the electronics industry declined. We were able to improve gross margins on a sequential basis due to a favorable product mix and improved manufacturing cost. The cost reduction program for our fiber laser product portfolio is on track and we are cautiously optimistic, given the current booking trend with strong order entry in February and March, that we will deliver better results in the upcoming quarters.”
For the quarter, selling, general and administrative expense was $26.4 million, up $300,000 from a year earlier. Net research and development expenses grew to $10.1 million or 8 percent of sales from $9.5 million or 7 percent of sales a year earlier.
Sales of laser products for macro applications decreased by 9 percent to $50.9 million and accounted for 39 percent of total sales. Sales of lasers for marking and micro applications decreased by 6 percent to $62.3 million and represented 48 percent of total sales. Sales of components increased by 13 percent to $16.2 million and represented 13 percent of total sales.
On a geographical basis, revenues in North America increased by 12 percent, totaling $28 million, whereas net sales decreased by 13 percent in Europe, to $59.9 million, and by 3 percent in Asia, to $41.5 million.
Order entry for the quarter decreased by 13 percent to $138.8 million compared to the second quarter of fiscal year 2011 and resulted in a backlog of $153.3 million as of March 31, mainly for laser products.
For the third quarter ending June 30, 2012, the company said it 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.
To listen to a replay of a conference call discussing these results, visit www.rofin.com