Exhibit 99.1
BTU International Reports Fourth Quarter and Fiscal Year 2006 Results
2006 - Net Income Doubles - Sales up by 18 Percent
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 20, 2007--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 fourth quarter and fiscal year ended December 31,
2006.
Net sales for the year 2006 increased to $78.3 million, up 18
percent compared to $66.4 million for the year 2005. Net income for
2006 was up 100 percent at $9.2 million, or $0.98 per diluted share,
compared to a net income of $4.6 million, or $0.60 per share for 2005.
Fourth quarter net sales were $16.6 million, down 9 percent
compared to $18.3 million in the preceding quarter, and down 14
percent compared to $19.3 million for the same quarter a year ago. Net
income for the fourth quarter of 2006 was $1.0 million, or $0.11 per
diluted share, compared to a net income of $2.3 million, or $0.25 per
diluted share, in the preceding quarter, and compared to a net income
of $2.1 million, or $0.25 per diluted share, in the fourth quarter of
2005.
Commenting on the Company's performance, Paul J. van der Wansem,
Chairman and CEO, said, "In the first half of 2006 our business in
equipment for electronics assembly was very strong, however, this was
followed by a persistent slowdown in the second half. The alternative
energy business was up, driven by a substantial increase in the solar
energy segment. Overall, we are pleased with the significant progress
made and the Company's ability to leverage its business model -
improving product margins, increasing investment in new product
development and continuing on a profitable course despite the recent
downturn."
Outlook
"Based upon our current knowledge, we expect the business level
and results for the first quarter of 2007 to be similar with those of
the last quarter of 2006," said Van der Wansem. "Industry forecasts
indicate further growth in the demand for electronics, which is likely
to drive an improvement in future orders for capital equipment for
semi-packaging and PC board assembly applications. In addition we are
focusing on the solar and nuclear energy markets as significant growth
opportunities for 2007 and beyond. The Company anticipates doubling
its alternative energy business this year."
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its
outlook for the first quarter of 2007, in a conference call to be held
today, February 20, at 5:00 p.m. Eastern Time. A webcast of the
conference call will be available on BTU's Web site at www.btu.com or
at www.streetevents.com. Replays of the call will be available through
March 9, 2007, and can be accessed at these Web sites or by phone at
(888) 203-1112, pass code 4434574.
About BTU International
BTU International is a leading supplier of advanced thermal
processing equipment for the electronics manufacturing and alternative
energy generation markets. BTU manufactures solder reflow furnaces for
printed circuit board assembly as well as for semiconductor 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 that results in the first quarter will be similar to
results in the preceding quarter, (ii) the Company's expectation for
business in the electronics manufacturing market and alternative
energy generation market, and (iii) the Company's expectation for
continuing profitability. 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 Quarterly Report on Form 10-Q for the quarter ended October
1, 2006. 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 20,
2007, 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 December December December
31, 2006 31, 2005 31, 2006 31, 2005
----------- ----------- ----------- -----------
Net sales $ 16,563 $ 19,267 $ 78,289 $ 66,407
Costs of goods sold 9,507 12,201 46,554 42,575
----------- ----------- ----------- -----------
Gross profit 7,056 7,066 31,735 23,832
Operating expenses:
Selling, general
and administrative 4,406 4,055 17,139 15,343
Research,
development and
engineering 1,506 674 5,065 3,206
Operating income 1,144 2,337 9,531 5,283
Interest income 244 1 667 3
Interest expense (173) (146) (562) (566)
Other income, net (176) - (225) -
----------- ----------- ----------- -----------
Income before
provision for income
taxes 1,039 2,192 9,411 4,720
Provision for income
taxes (21) (101) (189) (101)
----------- ----------- ----------- -----------
Net income $ 1,018 $ 2,091 $ 9,222 $ 4,619
=========== =========== =========== ===========
Income per share:
Basic $ 0.11 $ 0.27 $ 1.01 $ 0.62
Diluted $ 0.11 $ 0.25 $ 0.98 $ 0.60
Weighted average
number of shares
outstanding:
Basic shares 9,177,977 7,849,093 9,120,708 7,421,146
Effect of dilutive
options 250,551 429,858 319,341 251,171
----------- ----------- ----------- -----------
Diluted shares 9,428,528 8,278,951 9,440,049 7,672,317
=========== =========== =========== ===========
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December December
31, 31,
Assets 2006 2005
-------- --------
Current assets
Cash and cash equivalents $25,100 $15,460
Accounts receivable 16,149 16,519
Inventories 17,357 13,933
Other current assets 528 489
-------- --------
Total current assets 59,134 46,401
-------- --------
Property, plant and equipment, net 4,156 2,343
Other assets, net 2,397 161
-------- --------
Total assets $65,687 $48,905
======== ========
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 268 $ 183
Trade accounts payable 5,023 6,069
Other current liabilities 5,029 4,781
-------- --------
Total current liabilities 10,320 11,033
Long-term debt, less current portion 9,552 5,106
Long-term deferred compensation 283 283
Long-term liabilities 600 -
-------- --------
Total liabilities 20,755 16,422
-------- --------
Total stockholders' equity 44,932 32,483
-------- --------
Total liabilities and stockholders' equity $65,687 $48,905
======== ========
CONTACT: Company Contact:
BTU International, Inc.
Tom Kealy, 978-667-4111 Ext. 106
Vice President, CAO
or
Agency Contact:
IR Counsel
For BTU International
Bill Monigle, 941-497-1622