Exhibit 99.1
BTU International Reports Third Quarter 2007 Results
Strong Alternative Energy Business and Improvement in Electronics
Business Fuels Sequential Revenue and Earnings Growth
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 23, 2007--BTU
International, Inc. (Nasdaq: BTUI), a leading supplier of advanced
thermal processing equipment for the electronics manufacturing and
alternative energy markets, today announced its financial results for
the third quarter ended September 30, 2007.
Net sales for the third quarter were $16.5 million, compared to
$13.8 million in the preceding quarter, and compared to $18.3 million
for the third quarter of 2006. Net income for the 2007 third quarter
was $0.5 million, or $0.06 per diluted share, compared to net income
of $0.2 million, or $0.02 per diluted share reported in the preceding
quarter, and compared to net income of $2.3 million, or $0.25 per
diluted share, in the third quarter of 2006.
Net sales for the first nine months were $45.5 million compared to
$61.7 million for the first nine months of 2006. Net income for the
nine months ended September 30, 2007 was $1.4 million, or $0.15 per
diluted share, compared to a net income of $8.2 million, or $0.87 per
diluted share, for the first nine months of 2006.
Commenting on the company's performance, Paul J. van der Wansem,
chairman and CEO, said, "In line with our guidance, results for the
third quarter were up significantly as compared to the preceding
quarter. Both the electronics and alternative energy sectors
demonstrated growth, with the largest growth rate seen in the
energy-related portion of our business."
Outlook
"We expect that our efforts related to the alternative energy
market will allow us to rapidly increase market share in this sector,"
said van der Wansem. "Our team has developed and introduced several
new products designed to help our customers drive down the cost per
watt of energy production. The company participates in many rapidly
growing alternative energy applications, including silicon-based solar
cells, thin-film solar and nuclear fuel, as well as solid oxide fuel
cells.
"Looking forward to the fourth quarter, we expect continuing
growth based on a strengthening backlog in our energy business, and
business from the electronics sector comparable to the third quarter.
Fourth quarter revenues are expected to increase, compared to the
third quarter, by approximately 10 percent, with earnings up by
approximately 60 percent."
Teleconference and Simultaneous Webcast
BTU will be discussing its financial results, along with its
outlook for the fourth quarter of 2007, in a conference call to be
held today, October 23, at 5:00 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 9, 2007, and can be accessed at these websites or by phone at
(888) 203-1112, passcode: 8746071.
About BTU International
BTU International is a market-leading, global supplier of advanced
thermal processing equipment to the electronics manufacturing and
alternative energy generation markets. BTU equipment is used in the
production of printed circuit board assemblies and semiconductor
packaging as well as in solar cell, nuclear fuel and fuel cell
manufacturing. BTU has operations in North Billerica, MA and Shanghai,
China with direct sales and service in the USA, Asia and Europe.
Information about BTU International is available 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 a strengthening backlog, increasing market share and
continuing growth in the alternative energy segment, (ii) the
company's expectation of electronic sector business levels in the
fourth quarter being comparable to those of the third quarter, (iii)
the company's expectation for increased revenues and earnings in the
fourth quarter, (iv) and the company's expectation for continued
growth and success. . 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 July 1,
2007. 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 23, 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.
-- Financial Tables Follow --
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended Nine Months Ended
----------------------- -----------------------
September October 1, September October 1,
30, 2007 2006 30, 2007 2006
----------- ----------- ----------- -----------
Net sales $ 16,522 $ 18,254 $ 45,456 $ 61,726
Costs of goods sold 9,347 10,627 25,781 37,047
----------- ----------- ----------- -----------
Gross profit 7,175 7,627 19,675 24,679
Operating expenses:
Selling, general
and administrative 5,127 3,871 13,792 12,733
Research,
development and
engineering 1,284 1,377 4,179 3,559
----------- ----------- ----------- -----------
Operating income 764 2,379 1,704 8,387
Interest income 221 193 732 423
Interest expense (163) (157) (450) (389)
Foreign Exchange
Gain/Loss (204) (20) (520) (53)
Other loss, net (3) 2 110 5
----------- ----------- ----------- -----------
Income before
provision for income
taxes 615 2,397 1,576 8,373
Provision for income
taxes (92) (48) (188) (168)
----------- ----------- ----------- -----------
Net income $ 523 $ 2,349 $ 1,388 $ 8,205
=========== =========== =========== ===========
Income per share:
Basic $ 0.06 $ 0.26 $ 0.15 $ 0.90
Diluted $ 0.06 $ 0.25 $ 0.15 $ 0.87
Weighted average
number of shares
outstanding:
Basic shares 9,275,349 9,161,509 9,283,618 9,100,874
Effect of dilutive
options 175,102 270,753 185,999 292,944
----------- ----------- ----------- -----------
Diluted shares 9,450,451 9,432,262 9,469,617 9,393,818
=========== =========== =========== ===========
BTU INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
September 30, December 31,
Assets 2007 2006
------------- ------------
Current assets
Cash and cash equivalents $ 26,069 $ 25,100
Accounts receivable 16,549 16,149
Inventories 16,974 17,357
Other current assets 713 528
------------- ------------
Total current assets 60,305 59,134
------------- ------------
Property, plant and equipment, net 5,133 4,156
Other assets, net 2,399 2,397
------------- ------------
Total assets $ 67,837 $ 65,687
============= ============
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt $ 273 $ 268
Trade accounts payable 6,131 5,023
Other current liabilities 3,538 5,029
------------- ------------
Total current liabilities 9,942 10,320
Long-term debt, less current portion 9,337 9,552
Long-term liabilities 600 883
------------- ------------
Total liabilities 19,879 20,755
------------- ------------
Total stockholders' equity 47,958 44,932
------------- ------------
Total liabilities and stockholders'
equity $ 67,837 $ 65,687
============= ============
CONTACT: Company Contact:
BTU International, Inc.
Tom Kealy, 978-667-4111
Vice President, CAO
or
Agency Contact:
For BTU International
Bill Monigle, 941-497-1622
IR Counsel