Plymouth, Mich. and Hamburg, Germany - Rofin-Sinar Technologies Inc. (RSTI) has announced results for its 2QFY13. Net sales totaled $131.1 million for the second quarter ended March 31, 2013, a 1% increase over the comparable quarter of fiscal year 2012. Gross profit totaled $46.8 million, or 36% of net sales, compared to $48.8 million, or 38% of net sales, in the same period of fiscal year 2012.
"During the second quarter we experienced significantly higher sales in our MACRO product lines, mainly driven by the machine tool industry, while our MICRO & MARKING business declined as expected, triggered by weaker sales to the electronics and semiconductor industries. Due to the timing of revenue recognition, we achieved an overall result that was in line with the lower end of our guidance for the second quarter," said Gunther Braun, CEO and president of RSTI.
"On a geographical basis, North American and Asian order entry softened compared to the second quarter of last year, while European order entry reached its highest level since the third quarter of 2011," added Braun. "We expect a stable environment for laser material processing even when global business conditions are taken into consideration."
Related article: Rofin ends fiscal 2012 on high note, keeps conservative outlook
In other 2Q details, RSTI's net income amounted to $7.4 million, compared to $8.0 million in the second quarter last fiscal year, and represented 6% of net sales in both periods. The diluted per share calculation equaled $0.26 for the quarter based upon 28.4 million weighted-average common shares outstanding, compared to the diluted per share calculation of $0.28 based upon 28.8 million weighted-average common shares outstanding for the same period last fiscal year.
SG&A expenses in the amount of $25.9 million represented 20% of net sales and decreased by $0.5 million compared to last fiscal year's second quarter. Net R&D expenses increased by $1.5 million to $11.6 million (9% of net sales), compared to $10.1 million (8% of net sales) in the second quarter of fiscal year 2012.
Sales of laser products for macro applications increased by 9% to $55.6 million and accounted for 42% of total sales. Sales of lasers for marking and micro applications decreased by 5% to $59.1 million and represented 45% of total sales. Sales of components increased by 2% to $16.4 million and represented 13% of total sales.
On a geographical basis, revenues increased in North America by 3%, totaling $28.9 million, and by 8% in Asia, to $44.8 million, whereas net sales in Europe decreased by 4% to $57.4 million during the second quarter of fiscal year 2013.
Past six months
For the six months ended March 31, 2013, net sales totaled $273.4 million, an increase of $12.4 million, or 5%, over the comparable period in 2012. The fluctuation of the US dollar, mainly against the Euro, resulted in a decrease in net sales of $2.8 million for the six-month period. Gross profit for the period was $97.0 million, $1.2 million higher than in the same period in 2012. RSTI net income for the six-month period ended March 31, 2013, totaled $16.3 million. The diluted per share calculation equaled $0.57 for the six-month period based upon 28.3 million weighted-average common shares outstanding.
Net sales of lasers for macro applications increased by $6.7 million, or 7%, to $104.0 million, while net sales of lasers for marking and micro applications increased by $1.2 million, or 1%, to $136.1 million. Component sales of $33.3 million represented an increase of $4.5 million, or 16%, versus the comparable period in fiscal year 2012.
On a geographical basis, net sales increased in North America in the first six months by 1% and totaled $55.5 million (2012: $54.9 million), and by 15% in Asia to $100.0 million (2012: $86,8 million), whereas revenues in Europe decreased by 1% to $117.9 million (2012: $119.3 million).
Backlog
Order entry for the quarter of $138.3 million was level with the second quarter of fiscal year 2012 and resulted in a backlog of $149.2 million as of March 31, 2013, mainly for laser products. For the second quarter of 2013, ROFIN reached a book-to-bill ratio of 1.05.
Outlook
For the third quarter ending June 30, 2013, the Company expects revenues to be in the range of $132 million to $137 million and earnings per share to be in the range of $0.26 to $0.28. Actual results may differ from this forecast and are subject to the safe harbor statement discussed in more detail below.
With over 35 years of experience, Rofin-Sinar Technologies is a leading developer, designer and manufacturer of lasers and laser-based system solutions for industrial material processing applications. The Company focuses on developing key innovative technologies and advanced production methods for a wide variety of industrial applications based on a broad scope of technologies. The product portfolio ranges from single laser-beam sources to highly complex systems, covering all of the key laser technologies such as CO2 lasers, fiber, solid-state and diode lasers, and the entire power spectrum, from single-digit watts up to multi-kilowatts, as well as a comprehensive spectrum of wavelengths and an extensive range of laser components.
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