Fei (FEIC) 8-K FEI Reports Record Revenue and Earnings for the First Quarter of 2011

Exhibit 99.1

NEWS RELEASE

For more information contact:

FEI Company

Fletcher Chamberlin

Treasurer & Communications Director

(503) 726-7710

fletcher.chamberlin@fei.com

FEI Reports Record Revenue and Earnings for the First Quarter of 2011

Revenue up 32% from Q1-2010 and 6% from Q4-2010

EPS was $0.54, vs. $0.11 in Q1-2010 and $0.52 in Q4-2010

HILLSBORO, Ore., May 3, 2011 – For the first quarter of 2011, FEI Company (NASDAQ: FEIC) reported the highest quarterly revenue and earnings in the company’s history. Bookings and backlog also continued at high levels, and the company guided to further revenue and earnings increases in the second quarter of 2011.

Revenue of $197.0 million was up 32% compared to $149.1 million in the first quarter of 2010 and up 6% from $186.1 million in the fourth quarter of 2010.

Net income was $22.3 million or $0.54 per diluted share, compared with $4.1 million or $0.11 per diluted share in the first quarter of 2010 and $21.3 million or $0.52 per diluted share in the fourth quarter of 2010.

The gross margin in the first quarter was 43.6%, compared with 39.7% in the first quarter of 2010 and 45.0% in the fourth quarter of 2010. Operating income was 16.2% of sales in the quarter, compared with 3.7% in the first quarter of 2010 and 15.4% in the fourth quarter of 2010.

For the first quarter, net bookings were $190.8 million, up 14% from the first quarter of 2010 and down 13% from the record level of the fourth quarter of 2010. The backlog at the end of the quarter was $465.7 million, the second highest in company history. The book-to-bill ratio for the quarter was 0.97 to 1.

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Gross cash, investments and restricted cash increased by $28.0 million to $451.8 million at the end of the quarter.

“We’ve started 2011 with revenue and earnings at the highest level in our history,” said Don Kania, president and CEO of FEI. “Gross margins moderated from the fourth quarter as expected, as operating margins increased. Bookings remained strong with 31% year-over-year growth in both Life Sciences and Research and Industry, and 14% growth in Electronics. For the second quarter, we expect revenue to be strong with improved gross margins, and we continue to expect growth for 2011.”

Bookings and revenue comparisons for the company’s market segments and other data are included in the supplementary information attached to this release, along with detailed statements of operations and balance sheets.

Guidance for Q2 2011

Assuming a euro exchange rate of $1.45, FEI expects revenue in the second quarter of 2011 to be in the range of $195 million to $210 million. Bookings are expected to be in the range of $177 million to $197 million. GAAP earnings per share are expected to be in the range of $0.55 to $0.61.

Investor Conference Call — 2:00 p.m. Pacific time, Tuesday, May 3, 2011

Parties interested in listening to FEI’s quarterly conference call may do so by dialing 1-877-941-1466 (U.S., toll-free) or 1-480-629-9677 (international and toll), with the conference title: FEI First Quarter Earnings Call, Conference ID 4435139. A telephone replay of the call will be available at 1-800-406-7325 (U.S., toll-free) or 1-303-590-3030 (international and toll) with the passcode: 4435139#. The call can also be accessed via the web by going to FEI’s Investor Relations page atwww.fei.com, where the webcast will also be archived.

About FEI

FEI (Nasdaq: FEIC) is a leading diversified scientific instruments company. It is a premier provider of electron and ion-beam microscopes and tools for nanoscale applications globally and across many industries: industrial and academic materials research, life sciences, semiconductors, data storage, natural resources and more. With a history of over 60 years of technological innovation and leadership, FEI has set the performance standard in transmission electron

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microscopes (TEM), scanning electron microscopes (SEM) and DualBeams™, which combine a SEM with a focused ion beam (FIB). FEI’s imaging systems provide 3D characterization, analysis and modification/prototyping with resolutions down to the sub-Ångström (one-tenth of a nanometer) level. FEI has over 1,800 employees and sales and service operations in more than 50 countries around the world. More information can be found at:www.fei.com.

Safe Harbor Statement

This news release contains forward-looking statements that include statements regarding our guidance for the second quarter of 2011 and future periods; expected shipment of our backlog; expectations for future bookings; expectations about foreign currency rates; expected tax rates; expectations for product sales and expectations about gross margins. Forward-looking statements may also be identified by words and phrases that refer to future expectations, such as “believe”, “guidance”, “expect”, “expects”, “are expected”, “will”, “estimate”, “assuming” and other similar words and phrases. Factors that could affect these forward-looking statements include, but are not limited to, the global economic environment; lower than expected customer orders and potential weakness of the Research & Industry, Electronics and Life Sciences market segments; our ability to manufacture product at expected volumes; supply chain limitations; bankruptcy or insolvency of customers or suppliers; cyclical changes in the data storage and semiconductor industries, which are the major components of Electronics market revenue; fluctuations in foreign exchange, interest and tax rates; changes in tax rate and laws, accounting rules regarding taxes or agreements with tax authorities; the ongoing determination of the effectiveness of foreign exchange hedge transactions; reduced profitability due to failure to achieve or sustain margin improvement in service or product manufacturing; the relative mix of higher-margin and lower-margin products; failure to achieve expected cost reductions and other improvements from restructuring plans; risks associated with shipping a high percentage of the company’s quarterly revenue in the last month of the quarter; customer requests to defer planned shipments; increased competition and new product offerings from competitors; lower average sales prices and reduced margins on some product sales due to increased competition; failure of the company’s products and technology, including new products, to find acceptance with customers; inability to deploy products as expected or delays in shipping products due to technical problems or barriers; potential shipment or supply chain disruptions due to natural disasters or terrorist attacks; changes to or potential additional restructurings and reorganizations not presently anticipated; reduced sales due to geopolitical risks; changes in trade policies and tariff regulations; changes in the regulatory environment in the nations where we do business; additional selling, general and administrative or research and development expenses; reduced governmental spending due to budget constraints; additional costs related to future merger and acquisition activity; and failure of the company to achieve anticipated benefits of acquisitions and collaborations, including failure to achieve financial goals and integrate future acquisitions successfully. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update forward-looking statements.

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FEI Company and Subsidiaries

Consolidated Balance Sheets

(In thousands)

(Unaudited)

	April 3, 2011		December 31, 2010		April 4, 2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	367,265	$	277,617	$	143,546
Short-term investments in marketable securities		3,362		44,026		190,628
Short-term restricted cash		30,250		22,114		11,191
Receivables, net		178,755		183,254		160,719
Inventories, net		179,487		155,964		132,092
Deferred tax assets		10,514		11,505		2,839
Other current assets		38,601		23,126		47,933
Total current assets		808,234		717,606		688,948
Non-current investments in marketable securities		12,572		38,662		24,451
Long-term restricted cash		38,352		41,377		38,188
Non-current inventories		48,402		47,976		43,036
Property plant and equipment, net		81,799		80,681		79,615
Goodwill		44,832		44,800		44,809
Deferred tax assets		869		1,072		3,711
Other assets, net		15,077		12,248		14,650
TOTAL	$	1,050,137	$	984,422	$	937,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	55,656	$	51,529	$	39,600
Accrued liabilities		48,497		51,209		34,348
Deferred revenue		86,232		81,445		70,318
Income taxes payable		9,287		3,715		3,859
Accrued restructuring, reorganization and relocation		3,070		4,884		30
Short-term line of credit		—		—		47,250
Other current liabilities		31,352		31,306		46,273
Total current liabilities		234,094		224,088		241,678
Convertible debt		89,012		89,012		100,000
Other liabilities		41,283		38,148		32,906
SHAREHOLDERS’ EQUITY:
Preferred stock - 500 shares authorized; none issued and outstanding		—		—		—
Common stock - 70,000 shares authorized; 38,690, 38,280, and 37,921 shares issued and outstanding at April 3, 2011, December 31, 2010, and April 4, 2010		520,968		509,145		488,385
Retained earnings		97,336		75,024		25,580
Accumulated other comprehensive income		67,444		49,005		48,859
Total shareholders’ equity		685,748		633,174		562,824
TOTAL	$	1,050,137	$	984,422	$	937,408

FEI Company and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Thirteen Weeks Ended
	April 3, 2011			December 31, 2010			April 4, 2010
NET SALES:
Products	$	156,032		$	145,548		$	111,877
Service and components		40,928			40,522			37,222
Total net sales		196,960			186,070			149,099
COST OF SALES:
Products		83,595			75,087			64,688
Service and components		27,461			27,261			25,206
Total cost of sales		111,056			102,348			89,894
Gross margin		85,904			83,722			59,205
OPERATING EXPENSES:
Research and development		17,940			17,584			17,132
Selling, general and administrative		35,782			36,851			35,575
Restructuring, reorganization and relocation		285			562			914
Total operating expenses		54,007			54,997			53,621
OPERATING INCOME		31,897			28,725			5,584
OTHER INCOME (EXPENSE), NET		(222	)		(643	)		(636	)
INCOME BEFORE TAXES		31,675			28,082			4,948
INCOME TAX EXPENSE (BENEFIT)		9,363			6,738			844
NET INCOME	$	22,312		$	21,344		$	4,104
BASIC NET INCOME PER SHARE DATA	$	0.58		$	0.56		$	0.11
DILUTED NET INCOME PER SHARE DATA	$	0.54		$	0.52		$	0.11
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		38,478			38,209			37,891
Diluted		42,101			41,676			38,308

FEI Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

	Thirteen Weeks Ended(1)
	April 3, 2011			December 31, 2010			April 4, 2010
NET SALES:
Products		79.2	%		78.2	%		75.0	%
Service and components		20.8	%		21.8	%		25.0	%
Total net sales		100.0	%		100.0	%		100.0	%
COST OF SALES:
Products		42.4	%		40.4	%		43.4	%
Service and components		13.9	%		14.7	%		16.9	%
Total cost of sales		56.4	%		55.0	%		60.3	%
GROSS MARGIN:
Products		46.4	%		48.4	%		42.2	%
Service and components		32.9	%		32.7	%		32.3	%
Gross margin		43.6	%		45.0	%		39.7	%
OPERATING EXPENSES:
Research and development		9.1	%		9.5	%		11.5	%
Selling, general and administrative		18.2	%		19.8	%		23.9	%
Restructuring, reorganization and relocation		0.1	%		0.3	%		0.6	%
Total operating expenses		27.4	%		29.6	%		36.0	%
OPERATING INCOME		16.2	%		15.4	%		3.7	%
OTHER INCOME (EXPENSE), NET		-0.1	%		-0.3	%		-0.4	%
INCOME BEFORE TAXES		16.1	%		15.1	%		3.3	%
INCOME TAX EXPENSE (BENEFIT)		4.8	%		3.6	%		0.6	%
NET INCOME		11.3	%		11.5	%		2.8	%

(1) Percentages may not add due to rounding.

FEI COMPANY

Supplemental Data Table

($ in millions, except per share amounts)

(Unaudited)

	Q1 Ended 3-Apr-2011			Q4 Ended 31-Dec-2010			Q1 Ended 4-Apr-2010
Income Statement Highlights
Consolidated sales	$	197.0		$	186.1		$	149.1
Gross margin		43.6	%		45.0	%		39.7	%
Stock compensation expense	$	2.8		$	2.5		$	2.8
Net income	$	22.3		$	21.3		$	4.1
Diluted net income per share	$	0.54		$	0.52		$	0.11
Interest income add back included in the calculation of diluted EPS	$	0.5		$	0.5		$	0.0
Sales Highlights
Sales by Market Segment
Electronics	$	61.4		$	80.7		$	41.3
Research & Industry	$	70.7		$	47.3		$	46.5
Life Sciences	$	24.0		$	17.6		$	24.1
Service and Components	$	40.9		$	40.5		$	37.2
Sales by Geography
USA & Canada	$	63.6		$	68.0		$	46.2
Europe	$	58.1		$	62.0		$	45.5
Asia-Pacific and Rest of World	$	75.3		$	56.1		$	57.4
Gross Margin by Market Segment
Electronics		51.8	%		53.7	%		45.1	%
Research & Industry		43.6	%		42.3	%		39.9	%
Life Sciences		41.2	%		40.7	%		41.6	%
Service and Components		32.9	%		32.7	%		32.3	%
Bookings and Backlog
Total	$	190.8		$	218.4		$	167.9
Book-to-bill ratio		0.97			1.17			1.13
Backlog - total	$	465.7		$	471.9		$	373.4
Backlog - Service and Components	$	88.5		$	81.3		$	82.7
Bookings by Market Segment
Electronics	$	64.5		$	76.2		$	56.4
Research & Industry	$	55.1		$	77.6		$	41.9
Life Sciences	$	23.1		$	23.5		$	17.7
Service and Components	$	48.1		$	41.1		$	51.9
Bookings by Geography
USA & Canada	$	48.5		$	80.9		$	54.3
Europe	$	65.5		$	59.5		$	49.7
Asia-Pacific and Rest of World	$	76.8		$	78.0		$	63.9
Balance Sheet Highlights
Cash, equivalents, investments, restricted cash	$	451.8		$	423.8		$	408.0
Operating cash generated (used)	$	9.7		$	52.5		$	2.3
Accounts receivable	$	178.8		$	183.3		$	160.7
Days sales outstanding (DSO)		83			90			98
Inventory turnover		2.6			2.6			2.7
Fixed asset investment	$	1.9		$	3.6		$	2.6
Depreciation expense	$	4.5		$	4.5		$	4.3
Working capital	$	574.1		$	493.5		$	447.3
Headcount (permanent and temporary)		1,844			1,813			1,789
Euro average rate		1.366			1.360			1.385
Euro ending rate		1.409			1.339			1.359