Exhibit 99.1
BTU International Reports First Quarter 2010 Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--May 4, 2010--BTU International, Inc. (Nasdaq: BTUI), a leading supplier of advanced thermal processing equipment to the alternative energy and electronics manufacturing markets, today announced its financial results for the first quarter ended on April 4, 2010.
First quarter net sales were $17.2 million, up 42.5 percent compared to $12.1 million in the preceding quarter, and up 75.3 percent compared to $9.8 million for the same quarter a year ago. Net loss for the first quarter of 2010 was $ 0.3 million, or a loss of $0.03 per diluted share, compared to a net loss of $3.9 million, or a loss of $0.42 per diluted share, in the preceding quarter, and compared to a net loss of $4.6 million, or a loss of $0.49 per diluted share, in the first quarter of 2009.
Comments
Commenting on the company’s performance, Paul J. van der Wansem, BTU chairman and CEO, said, “Net sales of $17.2 million for the first quarter exceeded our guidance and reflected a strengthening of our electronics business with a solid contribution from our alternative energy business. Although we continue to have active discussions with key solar customers regarding future orders, several of these projects have seen delays. First quarter operating results approached break-even with a small loss on an after tax basis.
Outlook
“Although our forward looking visibility remains limited, we expect our second quarter revenues to be essentially flat compared to the first quarter with continued strong bookings in our electronics business. We are experiencing increased quoting activity in our alternative energy business, especially solar, and expect additional growth in our solar business later this year. Based on an expected greater mix of electronics business in the second quarter, we expect that our overall margins will be lower as compared to the first quarter," concluded van der Wansem.
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its outlook for the second quarter of 2010, in a conference call to be held today, May 4, at 8:30 a.m. Eastern Daylight Savings Time. The dial-in number to participate in the conference call is (877) 303-9139. A webcast of the conference call will be available on BTU’s website at www.btu.com. Replays of the call will be available through May 18, 2010, and can be accessed at this website or by phone at (800) 642-1687, pass code 64263110.
About BTU International
BTU International is a market-leading, global supplier of advanced thermal processing equipment to the alternative energy and electronics assembly markets. BTU’s equipment and expertise are used in the manufacturing of solar cells and nuclear fuel as well as the production of printed circuit board assemblies and semiconductor packaging. BTU has design and manufacturing operations in North Billerica, Massachusetts and Shanghai, China with direct sales and service worldwide. Information about BTU International is available at www.btu.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
This news release contains expressed or implied forward-looking statements regarding, among other things, the company's net sales forecast and expectation of growth in the electronics markets and growth in the alternative energy markets. Such statements are neither promises nor guarantees but rather are subject to risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Such statements are made pursuant to the “safe harbor” provisions established by the federal securities laws, and are based on the assumptions and expectations of the company’s management at the time such statements are made. Important factors that could cause actual results to differ include the acceptance of new products, particularly in the alternative energy market, general market conditions governing supply and demand, the impact of competitive products and pricing and other risks detailed in the company’s filings with the Securities and Exchange Commission, including but not limited to the company’s Annual Report on Form 10-K for the year ended December 31, 2009. Actual results may vary materially. Accordingly, you should not place undue reliance on any forward-looking statements. All information set forth in this press release is as of May 4, 2010, and, unless otherwise required by law, the company disclaims any obligation to revise or update this information in order to reflect future events or developments.
| BTU INTERNATIONAL, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except share and per share data) | ||||||||
| (unaudited) | ||||||||
Three Months Ended | ||||||||
| April 4, 2010 | March 29, 2009 | |||||||
| Net sales | $ | 17,192 | $ | 9,806 | ||||
| Costs of goods sold | 10,096 | 8,367 | ||||||
| Gross profit | 7,096 | 1,439 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 5,539 | 3,930 | ||||||
| Research, development | ||||||||
| and engineering | 1,638 | 1,977 | ||||||
| Operating income (loss) | (81 | ) | (4,468 | ) | ||||
| Interest income | 2 | 82 | ||||||
| Interest expense | (159 | ) | (155 | ) | ||||
| Foreign exchange gain/(loss) | 65 | (59 | ) | |||||
| Other income | 17 | 29 | ||||||
| Loss before provision | ||||||||
| for income taxes | (156 | ) | (4,571 | ) | ||||
| Provision (benefit) for income taxes | 137 | (17 | ) | |||||
| Net loss | $ | (293 | ) | $ | (4,554 | ) | ||
| Loss per share: | ||||||||
| Basic | $ | (0.03 | ) | $ | (0.49 | ) | ||
| Diluted | $ | (0.03 | ) | $ | (0.49 | ) | ||
| Weighted average number of | ||||||||
| shares outstanding: | ||||||||
| Basic shares | 9,253,081 | 9,284,318 | ||||||
| Effect of dilutive options | - | - | ||||||
| Diluted shares | 9,253,081 | 9,284,318 | ||||||
| BTU INTERNATIONAL, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (in thousands, except share data) | |||||||||
| (unaudited) | |||||||||
| April, 4, | December 31, | ||||||||
| Assets | 2010 | 2009 | |||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 21,850 | $ | 25,397 | |||||
| Accounts receivable | 10,734 | 10,333 | |||||||
| Inventories | 14,244 | 14,533 | |||||||
| Other current assets | 2,451 | 1,283 | |||||||
| Total current assets | 49,279 | 51,546 | |||||||
| Property, plant and equipment, net | 6,014 | 6,332 | |||||||
| Other assets, net | 689 | 916 | |||||||
| Total assets | $ | 55,982 | $ | 58,794 | |||||
| Liabilities and stockholders' equity | |||||||||
| Current liabilities | |||||||||
| Current portion of long-term debt | $ | 315 | $ | 310 | |||||
| Trade accounts payable | 5,243 | 5,527 | |||||||
| Other current liabilities | 6,126 | 8,577 | |||||||
| Total current liabilities | 11,684 | 14,414 | |||||||
| Long-term debt, less current portion | 8,610 | 8,687 | |||||||
| Total liabilities | 20,294 | 23,101 | |||||||
| Total stockholders' equity | 35,688 | 35,693 | |||||||
| Total liabilities and stockholders' equity | $ | 55,982 | $ | 58,794 | |||||
CONTACT:
Company Contact:
BTU International, Inc.
Peter Tallian, 978-667-4111
Chief Financial Officer
or
Agency Contact:
For BTU International, Inc.
Bill Monigle, 941-497-1622
IR Counsel