updated 5/4/2011 2:25:01 AM ET 2011-05-04T06:25:01

Revenue Up 32% From Q1-2010 and 6% From Q4-2010

EPS Was $0.54, vs. $0.11 in Q1-2010 and $0.52 in Q4-2010

HILLSBORO, Ore., May 3, 2011 (GLOBE NEWSWIRE) -- For the first quarter of 2011, FEI Company (Nasdaq:FEIC) reported the highest quarterly revenue and earnings in the company's history. Bookings and backlog also continued at high levels, and the company guided to further revenue and earnings increases in the second quarter of 2011.

Revenue of $197.0 million was up 32% compared to $149.1 million in the first quarter of 2010 and up 6% from $186.1 million in the fourth quarter of 2010.

Net income was $22.3 million or $0.54 per diluted share, compared with $4.1 million or $0.11 per diluted share in the first quarter of 2010 and $21.3 million or $0.52 per diluted share in the fourth quarter of 2010.

The gross margin in the first quarter was 43.6%, compared with 39.7% in the first quarter of 2010 and 45.0% in the fourth quarter of 2010. Operating income was 16.2% of sales in the quarter, compared with 3.7% in the first quarter of 2010 and 15.4% in the fourth quarter of 2010.

For the first quarter, net bookings were $190.8 million, up 14% from the first quarter of 2010 and down 13% from the record level of the fourth quarter of 2010. The backlog at the end of the quarter was $465.7 million, the second highest in company history. The book-to-bill ratio for the quarter was 0.97 to 1.

Gross cash, investments and restricted cash increased by $28.0 million to $451.8 million at the end of the quarter.

"We've started 2011 with revenue and earnings at the highest level in our history," said Don Kania, president and CEO of FEI. "Gross margins moderated from the fourth quarter as expected, as operating margins increased. Bookings remained strong with 31% year-over-year growth in both Life Sciences and Research and Industry, and 14% growth in Electronics.  For the second quarter, we expect revenue to be strong with improved gross margins, and we continue to expect growth for 2011."

Bookings and revenue comparisons for the company's market segments and other data are included in the supplementary information attached to this release, along with detailed statements of operations and balance sheets. 

Guidance for Q2 2011

Assuming a euro exchange rate of $1.45, FEI expects revenue in the second quarter of 2011 to be in the range of $195 million to $210 million. Bookings are expected to be in the range of $177 million to $197 million. GAAP earnings per share are expected to be in the range of $0.55 to $0.61.

Investor Conference Call -- 2:00 p.m. Pacific time, Tuesday, May 3, 2011

Parties interested in listening to FEI's quarterly conference call may do so by dialing 1-877-941-1466 (U.S., toll-free) or 1-480-629-9677 (international and toll), with the conference title: FEI First Quarter Earnings Call, Conference ID 4435139. A telephone replay of the call will be available at 1-800-406-7325 (U.S., toll-free) or 1-303-590-3030 (international and toll) with the passcode: 4435139#. The call can also be accessed via the web by going to FEI's Investor Relations page at www.fei.com , where the webcast will also be archived.

About FEI

FEI (Nasdaq:FEIC) is a leading diversified scientific instruments company. It is a premier provider of electron and ion-beam microscopes and tools for nanoscale applications globally and across many industries: industrial and academic materials research, life sciences, semiconductors, data storage, natural resources and more. With a history of over 60 years of technological innovation and leadership, FEI has set the performance standard in transmission electron microscopes (TEM), scanning electron microscopes (SEM) and DualBeams™, which combine a SEM with a focused ion beam (FIB). FEI's imaging systems provide 3D characterization, analysis and modification/prototyping with resolutions down to the sub-Ångström (one-tenth of a nanometer) level. FEI has over 1,800 employees and sales and service operations in more than 50 countries around the world. More information can be found at: www.fei.com.

The FEI Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6379

Safe Harbor Statement

This news release contains forward-looking statements that include statements regarding our guidance for the second quarter of 2011 and future periods, the expected shipment of our backlog; expectations for future bookings; expectations about foreign currency rates; expected tax rates; expectations for product sales and expectations about gross margins. Forward-looking statements may also be identified by words and phrases that refer to future expectations, such as "believe", "guidance", "expect", "expects", "are expected", "will", "estimate", "assuming" and other similar words and phrases. Factors that could affect these forward-looking statements include, but are not limited to, the global economic environment; lower than expected customer orders and potential weakness of the Research & Industry, Electronics and Life Sciences market segments; our ability to manufacture product at expected volumes; supply chain limitations; bankruptcy or insolvency of customers or suppliers; cyclical changes in the data storage and semiconductor industries, which are the major components of Electronics market revenue; fluctuations in foreign exchange, interest and tax rates; changes in tax rate and laws, accounting rules regarding taxes or agreements with tax authorities; the ongoing determination of the effectiveness of foreign exchange hedge transactions; reduced profitability due to failure to achieve or sustain margin improvement in service or product manufacturing; the relative mix of higher-margin and lower-margin products; failure to achieve expected cost reductions and other improvements from restructuring plans; risks associated with shipping a high percentage of the company's quarterly revenue in the last month of the quarter; customer requests to defer planned shipments; increased competition and new product offerings from competitors; lower average sales prices and reduced margins on some product sales due to increased competition; failure of the company's products and technology, including new products, to find acceptance with customers; inability to deploy products as expected or delays in shipping products due to technical problems or barriers; potential shipment or supply chain disruptions due to natural disasters or terrorist attacks; changes to or potential additional restructurings and reorganizations not presently anticipated; reduced sales due to geopolitical risks; changes in trade policies and tariff regulations; changes in the regulatory environment in the nations where we do business; additional selling, general and administrative or research and development expenses; reduced governmental spending due to budget constraints; additional costs related to future merger and acquisition activity; and failure of the company to achieve anticipated benefits of acquisitions and collaborations, including failure to achieve financial goals and integrate future acquisitions successfully. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update forward-looking statements.

FEI Company and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
       
       
       
       
       
  April 3, December 31, April 4,
ASSETS 2011 2010 2010
   --   --   -- 
CURRENT ASSETS:      
 Cash and cash equivalents  $ 367,265  $ 277,617  $ 143,546
 Short-term investments in marketable securities 3,362 44,026 190,628
 Short-term restricted cash 30,250 22,114 11,191
 Receivables, net 178,755 183,254 160,719
 Inventories, net 179,487 155,964 132,092
 Deferred tax assets 10,514 11,505 2,839
 Other current assets  38,601  23,126  47,933
       
 Total current assets 808,234 717,606 688,948
       
Non-current investments in marketable securities 12,572 38,662 24,451
       
Long-term restricted cash 38,352 41,377 38,188
       
Non-current inventories 48,402 47,976 43,036
       
Property plant and equipment, net 81,799 80,681 79,615
       
Goodwill 44,832 44,800 44,809
       
Deferred tax assets 869 1,072 3,711
       
Other assets, net  15,077  12,248  14,650
       
TOTAL  $ 1,050,137  $ 984,422  $ 937,408
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
       
CURRENT LIABILITIES:      
 Accounts payable  $ 55,656  $ 51,529  $ 39,600
 Accrued liabilities 48,497 51,209 34,348
 Deferred revenue 86,232 81,445 70,318
 Income taxes payable 9,287 3,715 3,859
 Accrued restructuring, reorganization and relocation  3,070 4,884 30
 Short-term line of credit  --   --  47,250
 Other current liabilities   31,352  31,306  46,273
       
 Total current liabilities 234,094 224,088 241,678
       
Convertible debt 89,012 89,012 100,000
       
Other liabilities 41,283 38,148 32,906
       
SHAREHOLDERS' EQUITY:      
 Preferred stock - 500 shares authorized; none issued and outstanding  --   --   -- 
 Common stock - 70,000 shares authorized; 38,690, 38,280, and 37,921 shares      
 issued and outstanding at April 3, 2011, December 31, 2010, and April 4, 2010 520,968 509,145 488,385
 Retained earnings 97,336 75,024 25,580
 Accumulated other comprehensive income   67,444  49,005  48,859
       
 Total shareholders' equity  685,748  633,174  562,824
       
TOTAL  $ 1,050,137  $ 984,422  $ 937,408
 
 
FEI Company and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
       
  Thirteen Weeks Ended
  April 3, December 31, April 4,
  2011 2010 2010
       
NET SALES:      
 Products  $ 156,032   $ 145,548   $ 111,877 
 Service and components  40,928   40,522   37,222 
 Total net sales  196,960   186,070   149,099 
       
COST OF SALES:      
 Products  83,595   75,087   64,688 
 Service and components  27,461   27,261   25,206 
 Total cost of sales  111,056   102,348   89,894 
       
 Gross margin  85,904   83,722   59,205 
       
OPERATING EXPENSES:      
 Research and development   17,940   17,584   17,132 
 Selling, general and administrative  35,782   36,851   35,575 
 Restructuring, reorganization and relocation  285   562   914 
 Total operating expenses  54,007   54,997   53,621 
       
OPERATING INCOME  31,897   28,725   5,584 
       
OTHER INCOME (EXPENSE), NET  (222)  (643)  (636)
       
INCOME BEFORE TAXES  31,675   28,082   4,948 
       
INCOME TAX EXPENSE (BENEFIT)  9,363   6,738   844 
       
NET INCOME  $ 22,312   $ 21,344   $ 4,104 
       
BASIC NET INCOME PER SHARE DATA  $ 0.58   $ 0.56   $ 0.11 
       
DILUTED NET INCOME PER SHARE DATA  $ 0.54   $ 0.52   $ 0.11 
       
WEIGHTED AVERAGE SHARES OUTSTANDING:      
 Basic  38,478   38,209   37,891 
 Diluted  42,101   41,676   38,308 
 
 
FEI Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
       
       
  Thirteen Weeks Ended (1)
  April 3, December 31, April 4,
  2011 2010 2010
       
       
NET SALES:      
 Products 79.2% 78.2% 75.0%
 Service and components 20.8% 21.8% 25.0%
 Total net sales 100.0% 100.0% 100.0%
       
COST OF SALES:      
 Products 42.4% 40.4% 43.4%
 Service and components 13.9% 14.7% 16.9%
 Total cost of sales 56.4% 55.0% 60.3%
       
GROSS MARGIN:      
 Products 46.4% 48.4% 42.2%
 Service and components 32.9% 32.7% 32.3%
 Gross margin 43.6% 45.0% 39.7%
       
OPERATING EXPENSES:      
 Research and development  9.1% 9.5% 11.5%
 Selling, general and administrative 18.2% 19.8% 23.9%
 Restructuring, reorganization and relocation 0.1% 0.3% 0.6%
 Total operating expenses 27.4% 29.6% 36.0%
       
OPERATING INCOME 16.2% 15.4% 3.7%
       
OTHER INCOME (EXPENSE), NET -0.1% -0.3% -0.4%
       
INCOME BEFORE TAXES 16.1% 15.1% 3.3%
       
INCOME TAX EXPENSE (BENEFIT) 4.8% 3.6% 0.6%
       
NET INCOME 11.3% 11.5% 2.8%
       
       
(1) Percentages may not add due to rounding.      
 
 
FEI COMPANY
Supplemental Data Table 
($ in millions, except per share amounts)
(Unaudited)
       
  Q1 Ended Q4 Ended Q1 Ended
  3-Apr-2011 31-Dec-2010 4-Apr-2010
Income Statement Highlights      
Consolidated sales $197.0 $186.1 $149.1
Gross margin 43.6% 45.0% 39.7%
Stock compensation expense $2.8 $2.5 $2.8
Net income $22.3 $21.3 $4.1
Diluted net income per share  $0.54 $0.52 $0.11
Interest income add back included in the calculation of diluted EPS $0.5 $0.5 $0.0
Sales Highlights      
Sales by Market Segment      
 Electronics $61.4 $80.7 $41.3
 Research & Industry $70.7 $47.3 $46.5
 Life Sciences $24.0 $17.6 $24.1
 Service and Components $40.9 $40.5 $37.2
Sales by Geography       
USA & Canada $63.6 $68.0 $46.2
Europe $58.1 $62.0 $45.5
Asia-Pacific and Rest of World $75.3 $56.1 $57.4
Gross Margin by Market Segment      
 Electronics 51.8% 53.7% 45.1%
 Research & Industry 43.6% 42.3% 39.9%
 Life Sciences 41.2% 40.7% 41.6%
 Service and Components 32.9% 32.7% 32.3%
Bookings and Backlog      
 Total $190.8 $218.4 $167.9
 Book-to-bill ratio 0.97 1.17 1.13
 Backlog - total $465.7 $471.9 $373.4
 Backlog - Service and Components $88.5 $81.3 $82.7
Bookings by Market Segment      
 Electronics $64.5 $76.2 $56.4
 Research & Industry $55.1 $77.6 $41.9
 Life Sciences $23.1 $23.5 $17.7
 Service and Components $48.1 $41.1 $51.9
Bookings by Geography      
USA & Canada $48.5 $80.9 $54.3
Europe $65.5 $59.5 $49.7
Asia-Pacific and Rest of World $76.8 $78.0 $63.9
Balance Sheet Highlights       
Cash, equivalents, investments, restricted cash $451.8 $423.8 $408.0
Operating cash generated (used) $9.7 $52.5 $2.3
Accounts receivable $178.8 $183.3 $160.7
Days sales outstanding (DSO) 83 90 98
Inventory turnover 2.6 2.6 2.7
Fixed asset investment  $1.9 $3.6 $2.6
Depreciation expense  $4.5 $4.5 $4.3
Working capital $574.1 $493.5 $447.3
Headcount (permanent and temporary) 1,844 1,813 1,789
Euro average rate 1.366 1.360 1.385
Euro ending rate 1.409 1.339 1.359
CONTACT:  FEI Company
          Fletcher Chamberlin
          Treasurer & Communications Director
          (503) 726-7710
          fletcher.chamberlin@fei.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.10%
$30K home equity loan FICO 5.20%
$75K home equity loan FICO 4.65%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.36%
13.34%
Cash Back Cards 17.87%
17.82%
Rewards Cards 17.11%
17.07%
Source: Bankrate.com