SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
..................................
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
January 30, 2007
Date of report (Date of earliest event reported)
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EXCEL TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-19306 11-2780242
(State or Other Juris- (Commission File No.) (IRS Employer
diction of Incorporation) Identification No.)
41 Research Way, East Setauket, NY 11733
(Address of principal executive offices, including zip code)
(631) 784-6175
(Registrant's telephone number, including area code)
..................................
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any
of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 30, 2007 the Registrant announced results for its fourth
quarter ended December 31, 2006. A copy of the press release is attached
as an exhibit.
Use of Non-GAAP Financial Information
To supplement Excel's consolidated financial statements presented in
accordance with GAAP, Excel uses non-GAAP measures of certain components
of financial performance, including net income and earnings per diluted
share, which are adjusted from results based on GAAP to exclude merger,
merger related and one-time deferred compensation expenses and stock-based
compensation ("special items") associated with the now terminated merger
with Coherent. The presentation of non-GAAP financial results is not meant
to be considered in isolation or as a substitute for, or superior to, GAAP
results. Investors should be aware that non-GAAP measures have inherent
material limitations as an analytical tool and should be read only in
conjunction with the company's consolidated financial statements prepared
in accordance with GAAP. These non-GAAP financial measures may also be
different from non-GAAP financial measures used by other companies. These
non-GAAP adjustments are provided to enhance the user's overall
understanding of Excel's current financial performance and its prospects
for the future. Specifically, Excel believes the non-GAAP results provide
useful information to both management and investors by excluding certain
expenses and charges that Excel believes are not indicative of its
operational performance.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release of Excel Technology, Inc., issued
January 30, 2007.
Signatures
..........
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: January 30, 2007
EXCEL TECHNOLOGY, INC.
By: /s/ Antoine Dominic
.......................................
Antoine Dominic
President, Chief Executive Officer and
Director
(Principal Executive Officer)
FOR IMMEDIATE RELEASE Contact: Alice Varisano, CFO
or
Investor Relations
631-784-6175
EXCEL TECHNOLOGY ANNOUNCES RESULTS
FOR FOURTH QUARTER AND FOR THE YEAR 2006
EAST SETAUKET, N.Y., January 30, 2007 - Excel Technology, Inc. (NASDAQ:
XLTC) today announced the results for the quarter and year ended
December 31, 2006. Revenues of $38.3 million and $154.5 million for the
quarter and year ended December 31, 2006, respectively, were 5.2% and
12.2% higher than the $36.4 million and $137.7 million for the quarter
and year ended December 31, 2005, respectively. Pre-tax profits were
$5.1 million for the fourth quarter of this year compared to $6.0
million in the same period last year, a decrease of 15.0%. For the year
ended December 31, 2006, pre-tax profits were $20.4 million compared to
$20.7 million in 2005, a decrease of 1.4%. Net income was $3.7 million
for the fourth quarter of this year as compared to $4.4 million in the
same period last year, a decrease of 15.9%. For the year ended December
31, 2006, net income was $14.0 million compared to $15.2 million for the
same period in 2005. Net income per share on a diluted basis of $0.30
for the quarter ended December 31, 2006 was 16.7% lower than the $0.36
per share on a diluted basis reported for the same period in 2005. For
the year ended December 31, 2006, net income per share on a diluted
basis was $1.12 in 2006 compared to $1.24 in 2005.
Non-GAAP Net Income and EPS: Net income for 2006 would have been $17.5
million (unaudited) excluding merger, merger related and deferred
compensation and stock based compensation expenses ("special items") of
$5.2 million or $3.5 million net of tax. These "special items" had a
$0.28 cents per diluted share effect on EPS. EPS without these charges
would have been $1.40 per diluted share for the year ended December 31,
2006 (unaudited).
Antoine Dominic, Chief Executive Officer, stated, "We are quite pleased
with our revenues for the year and the quarter. Our gross profit and
margins were affected negatively during the quarter due to a provision
for excess inventory and lower margins associated with a newly
introduced product during the initial phase of production. During the
year we launched several new products that helped us in achieving our
record bookings of $157 million. Our market development efforts, which
were hindered in 2006 due to the pending merger are now back on track
and we plan to further expand our organic growth. Having just completed
our sixth consecutive year of growth in revenues and profits (excluding
merger costs), we hope to build on these achievements in 2007. In
addition to increasing our market presence and new product
introductions, we plan to continue our emphasis on increased operational
efficiencies that will result in higher profit growth rates in relation
to sales. We have a healthy backlog going into 2007 and we are
optimistic about our future."
Alice Hughes Varisano, Chief Financial Officer, concluded, "The Company
increased its sales 12.2% to $154.5 million for the year ended December
31, 2006. Pre tax profits increased 23.7% (excluding special items) to
$25.6 million compared to the same period last year. Net income after
tax increased 15.1% (excluding special items) to $17.5 million compared
to 2005. The pre-tax profits increased more than net income due to the
effective tax rate increasing from 26.4% to 31.4% in 2006. The increase
in the tax rate was due in part to increased non-deductible expenses and
the reduction of a tax exposure liability due to a settlement in 2005
that did not reoccur in 2006. The Company increased its cash by $12.8
million resulting in a cash and investment balance of $63.1 million as
of December 31, 2006, with no debt. The Company utilized $2.0 million
of cash during the quarter in order to repurchase 79,500 shares of its
stock. Year to date bookings at December 31, 2006 were $157 million, an
increase of $13 million over the same period in the prior year. The
backlog at the end of the fourth quarter 2006 was $36 million an
increase of $3 million compared to $33 million backlog for the fourth
quarter of 2005. Now that the failed merger is behind the Company, we
are focused on building upon our achievements of 2006."
This news release contains forward-looking statements, which are based
on current expectations. Actual results could differ materially from
those discussed or implied in the forward-looking statements as a result
of various factors including future economic, competitive, regulatory,
and market conditions, future business decisions, market acceptance of
the Company's products, and those factors discussed in the Company's
Form 10-K for the year ended December 31, 2005. In light of the
significant uncertainties inherent in such forward-looking statements,
they should not be regarded as a representation that the Company's
objectives and plans will be achieved, and they should not be relied
upon by investors when making an investment decision. Words such as
"believes," "anticipates," "expects," "intends," "may," and similar
expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying such statements.
Excel and its wholly owned subsidiaries manufacture and market
photonics-based solutions, consisting of laser systems and electro-
optical components, primarily for industrial and scientific
applications.
FINANCIAL SUMMARY
(unaudited and in thousands, except per share data)
FOR THE QUARTER FOR THE YEAR
ENDED DECEMBER 31 ENDED DECEMBER 31
2006 2005 2006 2005
........ ........ ......... .........
Net Sales & Services $ 38,343 $ 36,364 $ 154,496 $ 137,717
Cost of Sales and Services $ 22,713 $ 19,227 $ 85,602 $ 72,295
........ ........ ......... .........
Gross Profit $ 15,630 $ 17,137 $ 68,894 $ 65,422
Operating Expenses:
Selling & Marketing $ 4,393 $ 4,865 $ 18,745 $ 18,959
General & Administrative $ 3,362 $ 2,952 $ 13,051 $ 12,448
Research and Development $ 3,716 $ 3,629 $ 14,523 $ 14,477
........ ........ ......... .........
Operating Income (without
merger related & deferred
compensation expenses) $ 4,159 $ 5,691 $ 22,575 $ 19,538
Merger and Merger Related and
Deferred Compensation Expense $ 0 $ 0 $ (5,069) $ 0
Interest Income $ 774 $ 386 $ 2,545 $ 1,180
Other Income (Expense) $ 162 $ (115) $ 391 $ (47)
........ ........ ......... .........
Pre-Tax Income $ 5,095 $ 5,962 $ 20,442 $ 20,671
Provision for Income Taxes $ 1,421 $ 1,610 $ 6,423 $ 5,463
........ ........ ......... .........
Net Income $ 3,674 $ 4,352 $ 14,019* $ 15,208
........ ........ ......... .........
........ ........ ......... .........
Net Income Per Common Share -
Diluted $ 0.30 $ 0.36 $ 1.12* $ 1.24
Weighted Average Common
Shares Outstanding - Diluted 12,437 12,254 12,488 12,246
Reconciliation of GAAP to non-GAAP net income and EPS
* Net income as reported under GAAP of $14,019, excluding the merger,
merger related and deferred compensation expenses, and stock based
compensation ("special items") net of tax effect, of approximately
$3,530 for the year ended December 31, 2006 (or 28 cents per diluted
share) would have been $17,549 (unaudited). EPS without these charges
would have been $1.40 per diluted share for the year ended December 31,
2006 (unaudited).
BALANCE SHEET & SELECTED FINANCIAL DATA
(unaudited)
DECEMBER 31, 2006 DECEMBER 31, 2005
................. .................
Cash $ 9,903 $ 16,303
Investments $ 53,220 $ 34,000
Accounts Receivable, net $ 22,716 $ 22,879
Inventory $ 34,906 $ 30,269
Other Current Assets $ 3,445 $ 3,013
......... .........
Total Current Assets $ 124,190 $ 106,464
Property, Plant & Equipment, net $ 25,503 $ 25,983
Other Non-Current Assets & Goodwill $ 32,286 $ 31,591
......... .........
Total Assets $ 181,979 $ 164,038
......... .........
......... .........
Accounts Payable $ 6,386 $ 4,829
Accrued Expenses and
Other Current Liabilities $ 7,256 $ 6,979
......... .........
Total Current Liabilities $ 13,642 $ 11,808
Other Non-Current Liabilities $ 4,546 $ 3,492
Minority Interest in Net Income
of Subsidiary $ 66 $ 48
Stockholders' Equity $ 163,725 $ 148,690
......... .........
Total Liabilities & Stockholders' Equity $ 181,979 $ 164,038
......... .........
......... .........
Working Capital $ 110,548 $ 94,656