EXHIBIT 99.1
BTU International Reports Third Quarter 2006 Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 24, 2006--BTU
International, Inc. (Nasdaq NM: BTUI), a leading supplier of advanced
thermal processing equipment for the electronics manufacturing and
alternative energy generation markets, today announced its financial
results for the third quarter ended October 1, 2006.
Net sales for the quarter ended October 1, 2006, were $18.3
million, down two percent compared to $18.5 million for the third
quarter of 2005, and down 19 percent compared to sales of $22.5
million in the preceding quarter.
Net income for the 2006 third quarter was up 48 percent at $2.3
million, or $0.25 per diluted share, compared to a net income of $1.6
million, or $0.20 per diluted share, reported in the third quarter of
2005, and down 27 percent compared to a net income of $3.2 million, or
$0.34 per diluted share, in the preceding quarter.
Net sales for the first nine months of 2006 were $61.7 million, an
increase of 31 percent compared to the same period last year. Net
income for the nine months ended October 1, 2006, more than tripled to
$8.2 million, or $0.87 per diluted share, compared to a net income of
$2.5 million, or $0.34 per diluted share, for the first nine months of
2005.
Commenting on the company's performance, Paul J. van der Wansem,
chairman and CEO, said, "Although our third quarter sales were below
our earlier expectations, our cost control programs and higher product
margins contributed to a solid quarterly profit. Our solar energy
business continued to be strong, while we experienced softness in the
electronics markets."
Outlook
"We are enthusiastic about the long-term market opportunities in
solar energy and electronics and are expanding the development of new
products for these sectors. Near term, sales for the fourth quarter
are expected to be equal to the third quarter plus-or-minus five
percent with earnings per share in the $0.22 to $0.27 range,"
concluded van der Wansem.
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its
outlook for the fourth quarter of 2006, in a conference call to be
held today, October 24, 2006, at 05:00 p.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 November 10, 2006, and can be accessed at these websites or by
phone at (888) 203-1112, pass code 4155112.
About BTU International
BTU International is a market-leading supplier of advanced thermal
processing equipment to the electronics manufacturing and alternative
energy generation markets. BTU manufactures reflow ovens 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 results in the fourth quarter, (ii) the company's
expectation for continuing profitability, and (iii) the company's
expectation for business in the Electronics Manufacturing and
Alternative 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, 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 October 24, 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
(unaudited)
(in thousands, except share and per share data)
Three Months Ended Nine Months Ended
----------------------- -----------------------
October 1, October 2, October 1, October 2,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales $ 18,254 $ 18,543 $ 61,726 $ 47,141
Costs of goods sold 10,627 11,880 37,047 30,375
----------- ----------- ----------- -----------
Gross profit 7,627 6,663 24,679 16,766
Operating expenses:
Selling, general
and administrative 3,871 4,031 12,733 11,288
Research,
development and
engineering 1,377 893 3,559 2,532
----------- ----------- ----------- -----------
Operating income 2,379 1,739 8,387 2,946
Interest income 193 2 423 2
Interest expense (157) (149) (389) (420)
Other income (loss) ,
net (18) (1) (48) -
----------- ----------- ----------- -----------
Income before
provision for income
taxes 2,397 1,591 8,373 2,528
Provision for income
taxes (48) - (168) -
----------- ----------- ----------- -----------
Net income $ 2,349 $ 1,591 $ 8,205 $ 2,528
=========== =========== =========== ===========
Income per share:
Basic $ 0.26 $ 0.22 $ 0.90 $ 0.35
Diluted $ 0.25 $ 0.20 $ 0.87 $ 0.34
Weighted average
number of shares
outstanding:
Basic shares 9,161,509 7,383,503 9,100,874 7,282,603
Effect of dilutive
options 270,753 395,873 292,944 219,673
----------- ----------- ----------- -----------
Diluted shares 9,432,262 7,779,376 9,393,818 7,502,276
=========== =========== =========== ===========
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited) (Audited)
October 1, December 31,
Assets 2006 2005
----------- ------------
Current assets
Cash and cash equivalents $ 20,113 $ 15,460
Accounts receivable 19,415 16,519
Inventories 16,780 13,933
Other current assets 850 489
----------- ------------
Total current assets 57,158 46,401
----------- ------------
Property, plant and equipment, net 3,972 2,343
Other assets, net 2,347 161
----------- ------------
Total assets $ 63,477 $ 48,905
=========== ============
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 253 $ 183
Trade accounts payable 3,977 6,069
Other current liabilities 5,140 4,781
----------- ------------
Total current liabilities 9,370 11,033
Long-term debt, less current portion 9,639 5,106
Long-term deferred compensation 283 283
Long-term liabilities 600 -
----------- ------------
Total liabilities 19,892 16,422
----------- ------------
Total stockholders' equity 43,585 32,483
----------- ------------
Total liabilities and
stockholders' equity $ 63,477 $ 48,905
=========== ============
CONTACT: Company Contact:
BTU International, Inc.
Tom Kealy, 978-667-4111 Ext. 106
Vice President, CAO
or
Agency Contact:
Bill Monigle Associates
Bill Monigle, 941-497-1622
President