MINNEAPOLIS (Dec. 18, 2007) -- FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for its fiscal 2008 first quarter ended November 24, 2007.
First Quarter Results
Sales for the first quarter of fiscal 2008 were $22.4 million, as compared to $37.7 million for the same period of fiscal 2007 and $19.9 million last quarter. The Company’s net loss for the first quarter of fiscal 2008 was $2.1 million, or $0.07 per share, compared to net income of $1.9 million, or $0.06 per share for the first quarter of fiscal 2007 and a net loss of $6.5 million or $0.21 per share last quarter.
“Our improved financial performance in the first quarter of fiscal 2008 as compared to the fourth quarter of fiscal 2007 reflects the impact of the cost reduction programs implemented last quarter,” said Don Mitchell, FSI chairman and chief executive officer. “Through cost control and headcount reduction activities we reduced our first quarter combined selling, general and administrative and engineering, research and development expenses by $3.2 million, or 22 percent, from the fourth quarter fiscal 2007 combined level, which included $1.1 million of severance cost.”
Orders for the first quarter of fiscal 2008 of $15.0 million were below the $17 to $21 million guidance the Company provided during its fourth quarter conference call, primarily due to continued weak industry conditions and customer initiated delays. Fiscal 2008 second quarter orders, including the receipt of orders that were originally anticipated during the first quarter, are expected to be between $23.0 and $26.0 million.
Balance Sheet
On November 24, 2007, the Company maintained a strong balance sheet with approximately $98 million in assets, including $23 million in cash, restricted cash, cash equivalents and marketable securities. During the first quarter of fiscal 2008, the Company used $1.2 million of net cash in operating activities. At the end of the first quarter, the Company had a current ratio of 4.1 to 1.0 and a book value of $2.57 per share.
Outlook
Based on the backlog and deferred revenue levels at the end of the first quarter and anticipated second quarter orders, the Company expects second quarter fiscal 2008 revenues to be between $23 and $25 million.* A portion of the expected revenue is subject to either receiving purchase orders or obtaining timely acceptance from the Company’s customers.
Based upon the anticipated gross profit margin improvement in the quarter, due to the sale of products with higher profit margins than in the first quarter of fiscal 2008, and the operating expense run rate, the Company expects to report between a $1.0 million loss and breakeven for the second quarter.
The Company expects to use less than $1.0 million of net cash for operating activities in the second quarter.* Depreciation and amortization is expected to be between $1.0 and $1.1 million in the second quarter.
Conference Call Details
Investors will have the opportunity to listen to the conference call at 3:30 p.m. CT today over the Internet. The webcast is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About FSI
FSI International, Inc. is a global supplier of surface conditioning equipment, technology and support services for microelectronics manufacturing. Using the Company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray, vapor and CryoKinetic technologies, customers are able to achieve their process performance, flexibility and productivity goals. The Company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. FSI maintains a web site at http://www.fsi-intl.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain “forward-looking” statements (*), including, but not limited to, expected orders, expected revenues, expected financial results, expected cash usage, other expected financial performance for the second quarter of fiscal 2008. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in industry conditions; order delays or cancellations; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for the Company’s products and its ability to meet demand; global trade policies; worldwide economic and political stability; the Company’s successful execution of internal performance plans; the cyclical nature of the Company’s business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the level of new orders; the timing and success of current and future product and process development programs; the success of the Company’s distributor in Japan; the success of the Company’s direct distribution organization; legal proceedings; and the potential impairment of long-lived assets; as well as other factors listed herein or from time to time in the Company’s SEC reports, including our latest 10-K annual report and our 10-Q quarterly reports. The Company assumes no duty to update the information in this press release.