SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
January 28, 2008
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 28, 2008 the Registrant announced results for its fourth
quarter ended December 31, 2007. 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 stock-
based compensation. 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 28, 2008.
Signatures
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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 28, 2008
EXCEL TECHNOLOGY, INC.
By: /s/ Alice Varisano
.......................
Alice Varisano
Chief Financial Officer
FOR IMMEDIATE RELEASE Contact: Alice Varisano, CFO
or
Investor Relations
631-784-6175
EXCEL TECHNOLOGY ANNOUNCES RECORD RESULTS
FOR FOURTH QUARTER AND FOR THE YEAR 2007
FOURTH QUARTER RESULTS
Sales: $41.1 million for 2007 vs. $38.3 million
for 2006(7.2% increase)
Pretax Income: $6.4 million for 2007 vs. $5.1 million for
2006 (25.2% increase)
Non-GAAP Pretax Income: $6.9 million for 2007 vs. $5.1 million for
2006 (35.0% increase)
Net Income: $4.7 million for 2007 vs. $3.7 million
for 2006 (26.6% increase)
Non-GAAP Net Income: 5.0 million for 2007 vs. $3.7 million for
2006 (35.1%) increase
EPS: $0.40 for 2007 vs. $0.30 for 2006 per
diluted share (34.0% increase)
Non-GAAP EPS: $0.42 for 2007 vs. $0.30 for 2006 per
diluted share (43.0% increase)
YEAR TO DATE RESULTS
Sales: $160.0 million for 2007 vs. $154.5 million
for 2006 (3.6% increase)
Pretax Income: $24.6 million for 2007 vs. $20.4 million
for 2006 (20.6% increase)
Non-GAAP Pretax Income: $27.5 million for 2007 vs. $20.6 million
for 2006 (33.6% increase)
Net Income: $17.7 million for 2007 vs. $14.0 million
for 2006 (26.5% increase)
Non-GAAP Net Income: 19.6 million for 2007 vs. $14.1 million
for 2006 (38.4% increase)
EPS: $1.46 for 2007 vs. $1.12 for 2006 per
diluted share (30.2% increase)
Non-GAAP EPS: $1.61 for 2007 vs. $1.13 for 2006 per
diluted share (42.2% increase)
(Non-GAAP excludes stock-based compensation expense)
EAST SETAUKET, N.Y., January 28, 2008 - Excel Technology, Inc. (NASDAQ:
XLTC) today announced the results for the quarter and year ended
December 31, 2007.
- Sales: Excel reported sales of $41.1 million for the quarter ended
December 31, 2007 compared to $38.3 million in sales for the
quarter ended December 31, 2006, an increase of 7.2% or $2.8
million. Sales for the year increased 3.6% to $160.0 million for
the year ended December 31, 2007 as compared to $154.5 million for
the same period last year.
- Pretax Income increased 25.2% to $6.4 million for the fourth
quarter of 2007 as compared to $5.1 million for the same period
last year. Pretax income increased 20.6% for the year ended
December 31, 2007 to $24.6 million as compared to $20.4 million for
the same period last year.
Non-GAAP Pretax Income increased 35.0% to $6.9 million for the
quarter ended December 31, 2007 (excludes stock-based compensation
expense of $525 thousand) from $5.1 million for the quarter ended
December 31, 2006 (excludes stock-based compensation expense of $17
thousand). For the year, non-GAAP pretax income increased 33.6% to
$27.5 million (excludes stock-based compensation expense of $2.8
million) as compared to $20.6 million for the same period last year
(excludes stock-based compensation expense of $113 thousand).
- Net Income increased 26.6% to $4.7 million for the fourth quarter
of this year as compared to $3.7 million in the same period last
year. For the year ended December 31, 2007 net income increased
26.5% to $17.7 million as compared to $14.0 million for the same
period last year.
Non-GAAP Net Income increased 35.1% to $5.0 million for the fourth
quarter of 2007 (excludes stock-based compensation expense, net of
taxes, of $338 thousand) from $3.7 million for the same period last
year (excludes stock-based compensation expense, net of taxes, of
$17 thousand). Non-GAAP net income increased 38.4% to $19.6
million for the year ended December 31, 2007 (excludes stock-based
compensation expense, net of taxes of $1.8 million) from $14.1
million for the same period last year (excludes stock-based
compensation expense, net of taxes of $113 thousand).
- EPS: Net income per share on a diluted basis increased 34.0%
recording $0.40 for the quarter ended December 31, 2007 compared to
the $0.30 per share on a diluted basis reported for the quarter
ended December 31, 2006. EPS for the year ended December 31, 2007
increased 30.2% to $1.46 per diluted share from $1.12 for the same
period last year.
Non-GAAP EPS: Net income per share on a diluted basis increased
43.0% recording $0.42 for the quarter ended December 31, 2007
(excludes stock-based compensation expense, net of taxes, of $0.02)
compared to $0.30 per share on a diluted basis for the quarter
ended December 31, 2006 (excludes stock-based compensation expense
of less than $0.01). For the year ended December 31, 2007, non-GAAP
diluted EPS increased 42.2% to $1.61 (excluding stock-based
compensation, net of taxes of $0.15) compared to $1.13 (excluding
stock-based compensation of $0.01) for the same period last year.
Antoine Dominic, Chief Executive Officer, stated, "Excel attained new
highs in sales, net income, EPS and bookings for the fourth quarter and
the year ended 2007. Last year, we focused our efforts on re-launching
our strategies and rebuilding the organization due to the disruptions
created by the failed merger with Coherent. Considering this, I think
Excel executed plans well for which I am quite pleased. During the year
we expanded our product portfolio and our global presence, which enabled
us to penetrate and enter new markets and applications. During the year
we have repurchased over 10% of our outstanding shares and still
maintained a healthy cash and investments balance of $58 million with no
debt. We have a healthy backlog going into 2008 and plan to build on
2007 achievements."
Alice Hughes Varisano, Chief Financial Officer, concluded, "The Company
achieved record sales for the fourth quarter and for the year ended
December 31, 2007. Sales increased 7.2% from $38.3 million to $41.1
million for the quarter and 3.6% from $154.5 million to $160.0 million
for the year ended December 31, 2007. The Company also achieved record
net income both on a GAAP and Non-GAAP basis for the quarter and the
year. Net income for the quarter on a GAAP and Non-GAAP basis of $4.7
million and $5.0 million was an increase of 26.6% and 35.1%,
respectively, as compared to the quarter ended December 31, 2006. The
Company's cash and investments balance at the end of the year is $58
million after utilizing $25.4 million of cash during the year to
repurchase 969 thousand shares of its stock. The stock buy back program
was authorized in November 2006 to repurchase 2 million shares. The
Company had purchased 1.1 million of its shares through December 31,
2007 and as of this press release an additional 200 thousand shares, in
the first quarter of 2008, which to date is greater than 10% of its
outstanding shares. Bookings for the fourth quarter were $45 million
with a backlog at the end of the fourth quarter of $35 million."
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, 2006. 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
2007 2006 2007 2006
......... ......... .......... ..........
Net Sales and Services $ 41,103 $ 38,343 $ 160,023 $ 154,496
Cost of Sales and Services $ 23,417 $ 22,713 $ 90,271 $ 85,602
......... ......... .......... ..........
Gross Profit $ 17,686 $ 15,630 $ 69,752 $ 68,894
Operating Expenses:
Selling & Marketing $ 4,618 $ 4,393 $ 17,671 $ 18,745
General & Administrative $ 3,879 $ 3,362 $ 15,930 $ 13,051
Research and Development $ 3,563 $ 3,716 $ 14,834 $ 14,523
Merger and Merger Related
and Deferred Compensation
Expenses $ 0 $ 0 $ 0 $ 5,069
......... ......... .......... ..........
Operating Income $ 5,626 $ 4,159 $ 21,317 17,506
Interest Income $ 715 $ 774 $ 3,041 $ 2,545
Other Income, net $ 39 $ 162 $ 287 $ 391
......... ......... .......... ..........
Pretax Income $ 6,380 $ 5,095 $ 24,645 $ 20,442
Provision for Income Taxes $ 1,730 $ 1,421 $ 6,913 $ 6,423
......... ......... .......... ..........
Net Income $ 4,650 $ 3,674 $ 17,732 $ 14,019
......... ......... .......... ..........
......... ......... .......... ..........
Net Income Per Common
Share-Diluted $ 0.40 $ 0.30 $ 1.46 $ 1.12
Weighted Average Common
Shares Outstanding -
Diluted 11,750 12,437 12,131 12,488
FOR THE QUARTER FOR THE YEAR
ENDED DECEMBER 31 ENDED DECEMBER 31
2007 2006 2007 2006
......... ......... .......... ..........
Reconciliation of GAAP
pretax income to Non-GAAP pretax income
Pretax Income $ 6,380 $ 5,095 $ 24,645 $ 20,442
Stock-based compensation $ 525 $ 17 $ 2,817 $ 113
......... ......... .......... ..........
Non-GAAP pretax income $ 6,905 $ 5,112 $ 27,462 $ 20,555
......... ......... .......... ..........
......... ......... .......... ..........
Reconciliation of GAAP net income to
Non-GAAP net income
Net Income $ 4,650 $ 3,674 $ 17,732 $ 14,019
Stock-based compensation,
net of taxes $ 338 $ 17 $ 1,823 $ 113
......... ......... .......... ..........
Non-GAAP net income $ 4,988 $ 3,691 $ 19,555 $ 14,132
......... ......... .......... ..........
......... ......... .......... ..........
Reconciliation of GAAP income per common share
to Non-GAAP income per common share
GAAP income per common share:
Basic $ 0.40 $ 0.30 $ 1.49 $ 1.16
Diluted $ 0.40 $ 0.30 $ 1.46 $ 1.12
Stock-based compensation
Basic $ 0.03 $ 0 $ 0.15 $ 0.01
Diluted $ 0.02 $ 0 $ 0.15 $ 0.01
Non-GAAP income
per common share:
Basic $ 0.43 $ 0.31 $ 1.64 $ 1.17
Diluted $ 0.42 $ 0.30 $ 1.61 $ 1.13
BALANCE SHEET & SELECTED FINANCIAL DATA
(unaudited and in thousands )
DECEMBER 31, 2007 DECEMBER 31, 2006
................. .................
Cash $ 9,981 $ 9,903
Investments $ 47,550 $ 53,220
Accounts Receivable, net $ 24,008 $ 22,716
Inventory $ 33,792 $ 34,906
Other Current Assets $ 6,217 $ 3,445
............ ...........
Total Current Assets $ 121,548 $ 124,190
Property, Plant & Equipment, net $ 24,679 $ 25,503
Other Non-Current Assets & Goodwill $ 34,305 $ 32,286
............ ...........
Total Assets $ 180,532 $ 181,979
............ ...........
............ ...........
Accounts Payable $ 5,090 $ 6,386
Accrued Expenses and
Other Current Liabilities $ 8,649 $ 7,256
............ ...........
Total Current Liabilities $ 13,749 $ 13,642
Other Non-Current Liabilities $ 5,068 $ 4,546
Minority Interest in Subsidiary $ 128 $ 66
Stockholders' Equity $ 161,587 $ 163,725
............ ...........
Total Liabilities &
Stockholders' Equity $ 180,532 $ 181,979
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............ ...........
Working Capital $ 107,799 $ 110,548
The non-GAAP financial measures used in this press release are not
prepared in accordance with generally accepted accounting principles and
may be different from non-GAAP financial measures used by other
companies. The Company's management refers to these non-GAAP financial
measures in making operating decisions because they provide meaningful
supplemental information regarding the Company's operating comparisons
to the Company's historical operating results. We include these non-
GAAP financial measures (which should be viewed as a supplement to, and
not a substitute for, their comparable GAAP measures) in this press
release because we believe they are useful to investors in allowing for
greater transparency to supplemental information used by management in
its financial and operational decision-making. For a reconciliation of
our GAAP and non-GAAP financial results, please refer to our
Reconciliation of Reported GAAP Results to Non-GAAP Measures, presented
in this release.