Exhibit 99.1
GSI GROUP REPORTS FOURTH QUARTER RESULTS
BILLERICA, Mass., Feb. 27 /PRNewswire-FirstCall/ -- GSI Group Inc., (Nasdaq:
GSIG), a supplier of precision technology and semiconductor systems, today
announced financial results for the fourth quarter and year ended December 31,
2006.
Revenue for the quarter ended December 31, 2006 rose 19% to $79.5 million,
compared to revenue of $66.5 million for the same period of 2005. Net income for
the quarter rose 8% to $4.7 million, or $0.11 per diluted share, compared to net
income for the same period in 2005 of $4.4 million, or $0.10 per diluted share,
a 10% increase in diluted earnings per share.
Revenue for the year ended December 31, 2006 rose 20% to $313.6 million,
compared to full year 2005 revenue of $260.8 million. For the full year 2006,
net income increased 125% to $21.7 million or $0.51 per diluted share, compared
to net income for full year 2005 of $9.7 million or $0.23 per diluted share, an
increase of 122% in diluted earnings per share.
Bookings for the fourth quarter ended December 31, 2006 were $81.7 million,
compared with bookings of $65.1 million in the third quarter of 2006. This was
driven by incoming orders for the wafer repair and encoder product lines. The
book to bill ratio was 1.0.
Fourth Quarter Highlights:
- Semiconductor Systems revenue of $34.3 million increased 39% over the
fourth quarter of 2005.
- Precision Technology revenue of $47.2 million increased 9% over the
fourth quarter of 2005.
- Cash and cash equivalents increased by $7.3 million in the fourth quarter
of 2006 to $138.3 million.
Dr. Sergio Edelstein, President and CEO commented "I am pleased with the
overall level of bookings during the quarter. Demand in four of our nine core
product lines, primarily wafer repair systems and encoders, drove the sequential
increase in bookings of 26%. Our Asian semiconductor customers are expanding
their manufacturing capacity to meet increasing demand in memory for
applications such as Microsoft Vista, which are now coming to market. In
addition, our new green-laser technology is being adopted by new wafer repair
customers."
The Company anticipates the following for the first quarter of 2007:
- Revenue to be in the range of $71.0 million to $74.0 million
- Diluted per share earnings, including restructuring charges related to
our U.K. operations, in the range of $2.0 to $2.5 million and including
the proceeds of an anticipated legal settlement are expected to be in the
range of $0.06 to $0.08.
Dial In: February 28th at 8:30 a.m. ET
GSI Group will host a conference call for investors at 8:30 a.m. Eastern on
February 28th. Participants are invited to join by dialing (706) 634-5123 with
an access code: 8783047. The replay will be available for two weeks by dialing
(706) 645-9291 with the replay passcode: 8783047. The conference call also will
be broadcast live over the Internet at www.gsig.com.
About GSI Group Inc.
GSI Group Inc. supplies precision technology to the global medical,
electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s
common shares are listed on Nasdaq (GSIG).
Certain statements in this news release may constitute forward-looking
statements within the meaning of the United States Private Securities Litigation
Reform Act of 1995, Section 27A of the United States Securities Act of 1933 and
Section 21E of the United States Securities Exchange Act of 1934. These
forward-looking statements may relate to anticipated financial performance,
management's plans and objectives for future operations, business prospects,
outcome of regulatory proceedings, market conditions, tax issues and other
matters. All statements contained in this news release that do not relate to
matters of historical fact should be considered forward-looking statements, and
are generally identified by words such as "anticipate," "believe," "estimate,"
"expect," "intend," "plan," "objective" and other similar expressions. Readers
should not place undue reliance on the forward- looking statements contained in
this news release. Such statements are based on management's beliefs and
assumptions and on information currently available to management and are subject
to risks, uncertainties and changes in condition, significance, value and
effect. Other risks include the fact that the Company's sales have been and are
expected to continue to be dependent upon customer capital equipment
expenditures, which are, in turn, affected by business cycles in the markets
served by those customers. Other factors include volatility in the semiconductor
industry, the risk of order delays and cancellations, the risk of delays by
customers in introducing their new products and market acceptance of products
incorporating subsystems supplied by the Company, risks of currency
fluctuations, risks to the Company of delays in its new products, our ability to
continue to reduce costs and capital expenditures, our ability to focus R&D
investment and integrate acquisitions, changes in applicable accounting
standards, tax regulations or other external regulatory rules and standards, and
other risks detailed in reports and documents filed by the Company with the
United States Securities and Exchange Commission and with securities regulatory
authorities in Canada. Such risks, uncertainties and changes in condition,
significance, value and effect, many of which are beyond the Company's control,
could cause the Company's actual results and other future events to differ
materially from those anticipated. The Company does not, however, assume any
obligation to update these forward- looking statements to reflect actual
results, changes in assumptions or changes in other factors affecting such
forward-looking statements.
For more information contact: Investor Relations, 978-439-5511, Ray Ruddy,
(ext. 6170).
GSI GROUP INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Current
Cash and cash equivalents $ 138,315 $ 69,286
Short-term investments - 26,757
Accounts receivable, less allowance of
$911 (December 31, 2005 - $1,592) 54,546 55,348
Income taxes receivable 5,755 2,517
Inventories 72,703 63,475
Deferred tax assets 7,925 10,630
Other current assets 11,559 20,357
Total current assets 290,803 248,370
Property, plant and equipment, net of
accumulated depreciation of $28,588
(December 31, 2005 - $20,608) 33,511 32,220
Deferred tax assets 20,099 20,124
Other assets 710 699
Long-term investments 693 613
Intangible assets, net of amortization of
$6,380 (December 31, 2005 - $4,035) 14,965 16,834
Patents and acquired technology, net of amortization
of $35,456 (December 31, 2005 - $30,359) 24,203 28,163
Goodwill 26,421 26,421
Total Assets $ 411,405 $ 373,444
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $ 14,002 $ 14,998
Income taxes payable - 2,475
Accrued compensation and benefits 13,455 9,212
Other accrued expenses 15,846 13,399
Total current liabilities 43,303 40,084
Deferred compensation 2,740 2,576
Deferred tax liabilities 12,342 13,252
Accrued long term restructuring 1,141 1,226
Accrued minimum pension liability 8,806 9,750
Total liabilities 68,332 66,888
Commitments and contingencies
Stockholders' equity
Common shares, no par value; Authorized shares:
unlimited; Issued and outstanding: 41,889,804
(December 31, 2005 - 41,628,171) 310,635 309,545
Additional paid-in capital 5,314 3,339
Retained earnings 29,431 7,688
Accumulated other comprehensive loss (2,307) (14,016)
Total stockholders' equity 343,073 306,556
$ 411,405 $ 373,444
GSI GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(U.S. GAAP and in thousands of U.S. dollars, except share amounts)
Three Months Ended Twelve Months Ended
--------------------------- ---------------------------
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Sales $ 79,458 $ 66,493 $ 313,609 $ 260,784
Cost of goods sold 46,808 37,944 183,448 156,914
Gross profit 32,650 28,549 130,161 103,870
Operating expenses:
Research and development
and engineering 8,204 6,703 30,639 25,671
Selling, general and
administrative and other 17,245 14,958 64,871 59,995
Amortization of
purchased intangibles 1,719 1,623 6,794 6,656
Restructuring 50 457 110 457
Other (167) (50) (672) (355)
Total operating expenses 27,051 23,691 101,742 92,424
Income from operations 5,599 4,858 28,419 11,446
Interest and other income, net 1,289 325 3,805 1,512
Foreign exchange transaction
gains (losses) (262) 315 (1,420) 906
Income before income taxes 6,626 5,498 30,804 13,864
Income tax provision 1,899 1,118 9,061 4,207
Net income $ 4,727 $ 4,380 $ 21,743 $ 9,657
Net income per common share:
Basic $ 0.11 $ 0.11 $ 0.52 $ 0.23
Diluted $ 0.11 $ 0.10 $ 0.51 $ 0.23
Weighted average common shares
outstanding (000's) 41,835 41,618 41,896 41,548
Weighted average common shares
outstanding for diluted net
income per common share (000's) 42,025 41,968 42,251 41,856
GSI GROUP INC.
Consolidated Analysis By Segment (unaudited)
(thousands of U.S. dollars)
Three Months Ended Twelve Months Ended
--------------------------- ---------------------------
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Sales:
Precision Technology Business $ 47,191 $ 43,144 $ 196,708 $ 179,480
Semiconductor Systems Business 34,289 24,589 127,605 88,201
Intersegment sales elimination (2,022) (1,240) (10,704) (6,897)
Total $ 79,458 $ 66,493 $ 313,609 $ 260,784
Gross profit %:
Precision Technology Business 37.7% 38.6% 39.6% 38.2%
Semiconductor Systems Business 42.9% 47.4% 40.9% 39.6%
Intersegment sales elimination -7.0% -11.8% - -2.1%
Total 41.1% 42.8% 41.5% 39.8%
GSI GROUP INC.
Consolidated Sales Analysis By Geographic Region (unaudited)
(millions of U.S. dollars)
Three Months Ended
-----------------------------------------
December 31, 2006 December 31, 2005
------------------- -------------------
% of % of
Sales Total Sales Total
-------- -------- -------- --------
North America $ 23.5 30% $ 26.9 41%
Latin and South America 0.2 - 0.3 -
Europe (EMEA) 11.4 14 10.8 16
Japan 20.3 26 11.0 17
Asia-Pacific, other 24.1 30 17.5 26
Total $ 79.5 100% $ 66.5 100%
Twelve Months Ended
-----------------------------------------
December 31, 2006 December 31, 2005
------------------- -------------------
% of % of
Sales Total Sales Total
-------- -------- -------- --------
North America $ 91.6 29% $ 104.8 40%
Latin and South America 1.3 - 1.4 1
Europe (EMEA) 50.6 16 44.7 17
Japan 56.5 18 44.7 17
Asia-Pacific, other 113.6 37 65.2 25
Total $ 313.6 100% $ 260.8 100%
SOURCE GSI Group Inc.
-0- 02/27/2007
/CONTACT: Investor Relations, Ray Ruddy of GSI Group Inc.,
+1-978-439-5511 (ext. 6170)/
/Company News On-Call: http://www.prnewswire.com/comp/107189.html /
/Web site: http://www.gsig.com /
(GSIG)