Rofin-Sinar reports 2Q 2014 results

May 27, 2014
Laser sources and laser-based solutions developer Rofin-Sinar Technologies (RSTI) has posted results for its second fiscal quarter, which ended March 31, 2014.

Plymouth, MI, and Hamburg, Germany - Laser sources and laser-based solutions developer Rofin-Sinar Technologies (RSTI) has posted results for its second fiscal quarter, which ended March 31, 2014.

Related: Rofin acquires FiLaser's assets including laser cutting technology

Net sales for the second quarter totaled $128.6 million, a 2-percent decrease over the comparable quarter of fiscal year 2013. Gross profit totaled $46.3 million, or 36 percent of net sales, compared to $46.8 million and 36 percent of net sales, in the same period of fiscal year 2013. Net income amounted to $4.5 million, compared to $7.4 million in the second quarter of last fiscal year, representing 3 and 6 percent of net sales. The diluted per share calculation equaled $0.16 for the quarter based upon 28.3 million weighted-average common shares outstanding, compared to the diluted per share calculation of $0.26 based upon 28.4 million weighted-average common shares outstanding for the same period last fiscal year.

"We are happy to deliver a better than projected gross margin and results at the high end of our guidance. Sales in our macro business were affected by the softer business environment in Asia, especially in China to the machine tool industry, whereas sales in Europe for marking and micro applications have improved across the industries, with the exception of solar applications. Business in North America has not yet strengthened, mainly suffering from a slow medical device industry and automotive industry," commented Gunther Braun, CEO and president of RSTI. "We recently closed the acquisition of FiLaser's assets and are already seeing promising interest in this new technology for brittle material applications. We expect this to contribute to our sales towards the second half of calendar year 2014. In addition, we have experienced increased demand for our high-power laser products out of Asia towards the end of the quarter, which should support third quarter sales."

Selling, general, and administrative (SG&A) expenses totaling $27.7 million represented 22 percent of net sales and increased by $1.8 million compared to last fiscal year's second quarter. Net R&D expenses in both periods were $11.6 million and 9 percent of net sales.

Sales of laser products for macro applications decreased by 16 percent to $46.8 million, accounting for 36 percent of total sales. Sales of lasers for marking and micro applications increased by 12 percent to $65.9 million, representing 51 percent of total sales. Sales of components decreased by 4 percent to $15.9 million, representing 13 percent of total sales.

On a geographical basis, revenues decreased by 17 percent in North America and in Asia, totaling $24.1 million and $37.1 million, respectively, whereas net sales in Europe increased by 17 percent to $67.4 million during the second quarter of fiscal year 2014.

Order entry for the quarter decreased by 8% to $127.5 million compared to the second quarter of fiscal year 2013, resulting in a backlog of $136.3 million as of March 31, 2014, mainly for laser products. The book-to-bill ratio for the second quarter of 2014 was 0.99.

As of March 31, 2014, the Company has purchased approximately 0.2 million shares of common stock under the buyback program it announced in February 2014 for a total amount of $5.6 million.

For the third quarter ending June 30, 2014, the company expects revenues to be in the range of $132-137 million, with earnings per share in the range of $0.20-0.24.

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Industrial Laser Solutions Editors

We edited the content of this article, which was contributed by outside sources, to fit our style and substance requirements. (Editors Note: Industrial Laser Solutions has folded as a brand and is now part of Laser Focus World, effective in 2022.)

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