Rofin-Sinar Profits Fall On Flat Sales

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PLYMOUTH (WWJ) – The industrial laser maker Rofin-Sinar Technologies Inc. (Nasdaq: RSTI), based in Plymouth and in Hamburg, Germany, Thursday reported net income of $9.8 million for its fourth fiscal quarter ended Sept. 30, down 3 percent from $10.1 million in the same quarter a year earlier.

Earnings per share were 35 cents for both periods based on a difference in the number of shares for the two period, 28.4 million shares this year vs. 28.5 million last year.

For the fiscal year, net income was $34.8 million, up 1 percent from $34.5 million in the prior fiscal year. Earnings per share rose to $1.22 from $1.20 a year earlier.

Revenue for the quarter was $147.6 million, virtually unchanged from $147.5 million a year earlier. For the year, revenue was $560.1 million, up 4 percent from $540.1 million a year earlier.

“We have delivered good fourth quarter and fiscal year performance which was above our guidance,” said Rofin-Sinar president and CEO Gunther Braun. “Net sales, net income and earnings per share turned out better than our projected estimates, while gross profit was challenged by a less favorable product mix towards a larger portion of fiber lasers. We experienced the strongest quarter for sales in fiscal year 2013 in the medical device industry and a solid quarter in sales for the machine tool, consumer electronics and semiconductor industries. On a geographical basis, sales to all countries within Europe were strong, North American business was stable, and Asian sales were weaker, mainly due to softer sales in China. This quarter was also marked by a lower level of order entry across all geographical regions. August and September order entry was below expectations, mainly due to a lack of bigger volume orders from China and less orders from the medical device industry in North America. European orders improved slightly quarter-on-quarter, but could not compensate for the reduction in other geographical regions. Despite the low beginning backlog, we believe that our book-to-bill ratio will improve based on current sales projects and new product introductions, especially in ultra-short pulse technology.”

For the quarter, selling, general and administrative sales were $24.1 million or 16 percent of sales, down $600,000 from last year. Net research and development expenses were $10 million, down $500,000 from last year, representing 7 percent of sales.

Sales of laser products for macro applications decreased 3 percent to $53.5 million and accounted for 36 percent of total sales. Sales of lasers for marking and micro applications decreased 2 percent to $73.9 million and represented 50 percent of total sales. Sales of components increased 20 percent to $20.2 million and represented 14 percent of total sales.

On a geographical basis, revenues in North America decreased 1 percent to $30.4 million and 15 percent in Asia to $45.1 million. Net sales in Europe rose 13 percent to $72.1 million.

For the 12 months, sales of lasers for macro applications increased $9.2 million, or 4 percent to $214.6 million and net sales of lasers for marking and micro applications rose $500,000 to $272.7 million. Sales of components increased $10.3 million, or 16 percent, to $72.8 million compared to fiscal year 2012.

On a geographical basis, net sales in North America in the twelve months decreased 3 percent and totaled $114.9 million (2012: $117.8 million). In Europe, net sales increased 4 percent to $250.3 million (2012: $239.6 million) and in Asia, net sales increased 7 percent to $194.9 million (2012: $182.7 million).

Order entry decreased 10 percent to $123.5 million for the quarter and 1 percent to $531.1 million for the fiscal year compared to the corresponding periods in fiscal year 2012. The backlog, mainly for laser products, amounted to $118 million as of Sept. 30.

For the first quarter ending Dec. 31, the company expects revenues to be in the range of $122 million to $127 million and earnings per share to be in the range of 6 to 8 cents.

To listen to a replay of a conference call discussing these results, visit http://www.rofin.com.

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