Rofin-Sinar Profit, Revenue Declines
PLYMOUTH -- Rofin-Sinar Technologies Inc. (Nasdaq: RSTI), the industrial laser maker with joint headquarters in Plymouth and in Hamburg, Germany, reported revenue of $131.7 million in the third fiscal quarter ended June 30, down 15 percent from $154.9 million in the same quarter a year earlier. Net income was $8.4 million or 29 cents a share, down 45 percent from $15.2 million or 52 cents a share a year earlier.
For the nine months, revenue was $382.7 million, down 8 percent from $428.2 million a year earlier. Net income was $24.5 million or 85 cents a share, down 43 percent from $42.8 million or $1.47 a share a year earlier.
"The quarterly results reflect the current global industrial economic environment for conventional laser technologies," said Rofin-Sinar president and CEO Gunther Braun. "The industrial material processing business continues to be influenced by the European debt crisis and the slower pace of GDP growth, mainly in China. The encouraging statements that we received from the Chinese machine tool industry in the spring time did not translate into substantially improved orders during the quarter. The automotive and semiconductor industries performed very well, while we experienced a lower level of activities in the solar industry. Despite the economic pressures, we are satisfied with our overall quarterly financial results, which were in line with our expectations. The global markets continue to be challenging and the currency translation into U.S. dollars will put further pressure on order entry and sales figures in the coming quarters as the US dollar strengthens. However, we believe that our solid backlog, combined with ongoing sales activities and focused efforts in the Asian markets will help us to deliver reasonable fourth quarter results."
For the quarter, selling, general and administrative expenses were $25.3 million, 19 percent of sales and down $3.4 million from a year earlier. Net R&D expenses increased by $2 million to $11.5 million (9 percent of net sales), compared to $9.5 million (6 percent of net sales) in the third quarter of fiscal year 2011.
Sales of laser products for macro applications decreased 16 percent to $53 million and accounted for 40 percent of total sales. Sales of lasers for marking and micro applications decreased 19 percent to $61.9 million and represented 47 percent of total sales. Sales of components 11 percent to $16.8 million and represented 13 percent of total sales.
On a geographical basis, revenues in North America increased 18 percent to $32 million, while net sales decreased 20 percent in Europe to $56.7 million, and 24 percent in Asia to $43 million.
Order entry for the quarter decreased 17 percent to $135.3 million compared to the third quarter of fiscal year 2011 and resulted in a backlog of $157 million as of June 30, mainly for laser products.
Rofin-Sinar also announced that its board authorized a share buyback of up to $20 million of the company's common stock over the next twelve months ending Aug. 10, 2013, subject to market conditions. The shares may be repurchased from time to time in open market transactions or privately negotiated transactions at the company's discretion.
For the fourth quarter ending Sept. 30, the company expects revenue to be in the range of $125 million to $130 million and earnings per share to be 25 to 28 cents a share.
More at www.rofin.com.
