Exhibit 99.1
BTU International Reports First Quarter 2006 Results;
Quarterly Net Income Increased to $2.6 Million on Sales of $20.9 Million
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--April 20, 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 first quarter ended April 2, 2006.
Net sales for the quarter were $20.9 million, up 64 percent compared to
$12.8 million for the first quarter of 2005, and up 8 percent compared to sales
of $19.3 million in the preceding quarter.
Net income for the 2006 first quarter was up substantially at $2.6 million,
or $0.28 per diluted share, compared to a net income of $167,000, or $0.02 per
diluted share, reported in the first quarter of 2005, and up 25 percent compared
to a net income of $2.1 million, or $0.25 per diluted share in the preceding
quarter.
Commenting on the company's performance, Paul J. van der Wansem, chairman
and CEO, said, "Our organization has continued to make good progress, especially
in terms of cost reductions throughout our global operations and the further
expansion of our China operations."
Late in the quarter, BTU expanded its product offering with infrared
technology through the acquisition of the products, trademarks and other related
assets of Radiant Technology Corporation (RTC). "We expect to see increased
bookings and shipments for the RTC product lines as time progresses," said van
der Wansem.
Outlook
"Overall for the year, we expect to see continued sales growth: based upon
the current outlook for the electronics industry, as well as a healthy growth
rate in the energy generation markets. We believe that the second quarter will
be similar or up in sales with results ahead of 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 2006, in a conference call to be held tomorrow, Friday,
April 21, 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 May 5, 2006, and can be accessed at these
websites or by phone at (888) 203-1112 (pass code 9812124).
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 equipment 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
second quarter, (ii) the company's expectation for results to be ahead in the
second quarter over the first quarter. 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, 2005. 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 April 20,
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 BALANCE SHEETS
(in thousands)
(unaudited)
April, December
2 31,
Assets 2006 2005
------------ ------------
Current assets
Cash and cash equivalents $18,207 $15,460
Accounts receivable 20,916 16,519
Inventories 15,488 13,933
Other current assets 447 489
------------ ------------
Total current assets 55,058 46,401
------------ ------------
Property, plant and equipment, net 2,402 2,343
Other assets, net 1,973 161
------------ ------------
Total assets $59,433 $48,905
============ ============
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $302 $183
Borrowings under line of credit - -
Other current liabilities 11,665 10,850
------------ ------------
Total current liabilities 11,967 11,033
Long-term debt, less current portion 9,714 5,106
Long-term deferred compensation 283 283
------------ ------------
Total liabilities 21,964 16,422
------------ ------------
Total stockholders' equity 37,469 32,483
------------ ------------
Total liabilities and
stockholders' equity $59,433 $48,905
============ ============
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended
---------------------------
April 2, April 3,
2006 2005
------------- -------------
Net sales $20,935 $12,792
Costs of goods sold 12,903 8,277
------------- -------------
Gross profit 8,032 4,515
Operating expenses:
Selling, general and administrative 4,405 3,444
Research, development
and engineering 928 772
------------- -------------
Operating income 2,699 299
Interest income 91 1
Interest expense (70) (133)
Other income (loss), net (45) -
------------- -------------
Income before provision
for income taxes 2,675 167
Provision for income taxes (54) -
------------- -------------
Net income $2,621 $167
============= =============
Income per share:
Basic $0.29 $0.02
Diluted $0.28 $0.02
Weighted average number of
shares outstanding:
Basic shares 9,009,347 7,218,624
Effect of dilutive options 398,100 71,996
------------- -------------
Diluted shares 9,407,447 7,290,620
============= =============
CONTACT: BTU International, Inc.
Tom Kealy, 978-667-4111 Ext. 106
Vice President, CAO
or
For BTU International
Bill Monigle, 603-424-1184
IR Counsel