Exhibit 99.1
BTU International Reports Fourth Quarter and Fiscal Year 2005 Results;
Fourth Quarter Net Income $2.1 Million on Sales of $19.3 Million
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 16, 2006--BTU International,
Inc. (Nasdaq NM: BTUI), a leading supplier of advanced thermal processing
equipment for the electronics manufacturing and energy generation markets, today
announced its financial results for the fourth quarter and fiscal year ended
December 31, 2005.
Fourth quarter net sales were $19.3 million, up 4 percent compared to $18.5
million in the preceding quarter, and up 41 percent compared to $13.6 million
for the same quarter a year ago. Net income for the fourth quarter of 2005 was
$2.1 million, or $0.25 per diluted share, up 31 percent compared to a net income
of $1.6 million, or $0.20 per diluted share, in the preceding quarter, and
compared to a net income of $70,000, or $0.01 per diluted share, in the fourth
quarter of 2004.
Net sales for the year 2005 increased to $66.4 million, up 22 percent
compared to $54.6 million for the year 2004. Net income for 2005 was $4.6
million, or $0.60 per diluted share. This compares to a net loss for 2004 of
$4.2 million, or a loss of $0.58 per share, which included a one-time
restructuring charge of $1.6 million, or $0.23 per share.
Commenting on the company's performance, Paul J. van der Wansem, chairman
and CEO, said, "We are pleased with the results of our continuing efforts to
reduce costs, increase productivity, gain market share in key strategic areas
and grow the business. Much of the credit for our growth is due to our emphasis
on globalization and having the right products and resources in the right place
at the right time."
During the fourth quarter of 2005 BTU completed a public offering of common
stock, which resulted in net proceeds to the company of approximately $16
million.
Earlier this month, BTU announced that it had entered into a purchase and
sale agreement under which BTU will acquire the product lines, trademarks and
other related assets of Radiant Technology Corporation (RTC). Commenting on the
acquisition, Van der Wansem said, "The RTC technology and products provide a
good fit with BTU's strategic expansion of the energy generation segment of our
business and the inclusion of the RTC product line within BTU's family of
products will provide for a stronger competitive position in a global market
place." This acquisition is subject to customary closing conditions, including
approval by RTC's shareholders. BTU anticipates that the acquisition will close
by early March.
Outlook
"Most of our markets look strong going into 2006. However, visibility for
the total year remains somewhat limited," said Van der Wansem. "Based on our
current knowledge, we expect the first quarter of 2006 to deliver revenues ahead
of those achieved in the quarter just completed, with earnings to be the same
with upside potential. Overall, we expect the year 2006 to be another growth
year for BTU."
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its outlook for
the first quarter of 2006, in a conference call to be held tomorrow, Friday,
February 17, at 11:00 a.m. Eastern Time. A webcast of the conference call will
be available on BTU's website at www.btu.com or at www.streetevents.com. Replays
of the call will be available through March 3, 2006, and can be accessed at
these websites or by phone at (888) 203-1112 (pass code 8115420).
About BTU International
BTU International is a market-leading supplier of advanced thermal
processing equipment to the electronics manufacturing and energy generation
markets. BTU manufactures reflow furnaces for printed circuit board assembly as
well as for wafer-level packaging and die-level packaging. BTU also provides
thermal process solutions for the solar cell, fuel cell and nuclear fuel
industries. BTU, with headquarters in North Billerica, MA, operates worldwide
with direct sales and service offices in the USA, Asia and Europe. Information
about BTU International is available on BTU's website at www.btu.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995
This news release contains express or implied forward-looking statements
regarding, among other things, (i) the company's expectation of sales in the
first quarter 2006 slightly ahead of those of the fourth quarter 2005, (ii) the
company's expectation for continuing profitability, and (iii) the company's
expectation for business in the Electronics Manufacturing and Energy Generation
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 timely availability and
acceptance of new products, 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, 2004. 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 February 16, 2006, 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)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Net sales $ 19,267 $ 13,624 $ 66,407 $ 54,639
Costs of goods sold 12,201 9,932 42,575 41,503
----------- ----------- ----------- -----------
Gross profit 7,066 3,692 23,832 13,136
Operating expenses:
Selling,
general and
administrative 4,055 2,562 15,343 11,528
Research,
development
and engineering 674 903 3,206 3,691
Restructuring
Charges - - - 1,648
----------- ----------- ----------- -----------
Operating income (loss) 2,337 227 5,283 (3,731)
Interest income 1 - 3 18
Interest expense (146) (155) (566) (470)
Other income, net - (2) - 2
----------- ----------- ----------- -----------
Income (loss)
before provision
for income taxes 2,192 70 4,720 (4,181)
Provision for
income taxes (101) - (101) -
----------- ----------- ----------- -----------
Net income (loss) $ 2,091 $ 70 $ 4,619 $ (4,181)
=========== =========== =========== ===========
Income (loss) per share:
Basic $ 0.27 $ 0.01 $ 0.62 $ (0.58)
Diluted $ 0.25 $ 0.01 $ 0.60 $ (0.58)
Weighted average
number of shares
outstanding:
Basic shares 7,849,093 7,196,612 7,421,146 7,185,091
Effect of
dilutive options 429,858 69,249 251,171 -
----------- ----------- ----------- -----------
Diluted shares 8,278,951 7,265,861 7,672,317 7,185,091
=========== =========== =========== ===========
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, December 31,
Assets 2005 2004
------------- ------------
Current assets
Cash and cash equivalents $ 15,460 $ 372
Accounts receivable 16,519 9,170
Inventories 13,933 13,354
Other current assets 489 646
------------- ------------
Total current assets 46,401 23,542
------------- ------------
Property, plant and equipment, net 2,343 2,689
Other assets, net 161 827
------------- ------------
Total assets $ 48,905 $ 27,058
============= ============
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 183 $ 173
Borrowings under line of credit - 2,185
Other current liabilities 10,850 8,248
------------- ------------
Total current liabilities 11,033 10,606
Long-term debt, less current portion 5,106 5,289
Long-term deferred compensation 283 512
------------- ------------
Total liabilities 16,422 16,407
------------- ------------
Total stockholders' equity 32,483 10,651
------------- ------------
Total liabilities and
stockholders' equity $ 48,905 $ 27,058
============= ============
CONTACT: BTU International, Inc.
Vice President, CAO
Tom Kealy, 978-667-4111 Ext. 106
or
Agency:
For BTU International
IR Counsel
Bill Monigle, 603-424-1184