Portland, Ore. – Electro Scientific Industries, a supplier of laser-based manufacturing solutions for the microprocessing industry, has reported results for its fiscal 2011 fourth quarter ended April 2, 2011 and the full fiscal year 2011.
Revenue in the fourth quarter for ESI was $71.6 million, compared to $67.2 million in the third quarter of 2011 and $59.6 million in the same quarter one year ago.
On a GAAP basis, net income was $6.0 million or $0.21 per diluted share, compared to $2.4 million or $0.08 per diluted share in the prior quarter. On a non-GAAP basis, excluding the impact of purchase accounting, equity compensation, and non-recurring items, fourth quarter net income was $6.5 million or $0.22 per diluted share, compared to $5.9 million or $0.21 per diluted share in the third quarter.
"The fourth quarter represented a strong finish to a great year for ESI," stated Nick Konidaris, president and CEO of ESI. "We reported our highest quarterly revenue and operating profit in over three years, and we generated nearly $30 million in operating cash flow."
Orders for the fourth quarter were $72.5 million, compared to $77.9 million in the prior quarter and up from $54.2 million in the corresponding quarter last year.
Konidaris continued, "The Interconnect and Micromachining Group had its second highest order level, following record performance last quarter. In addition, strength in the DRAM and LED markets, especially mobile DRAM, drove higher orders in our semiconductor business."
Revenue increased 6.5% sequentially, with strong shipments of interconnect and micromachining systems. Gross margin was 44%, compared to 45% last quarter and 43% in the prior year quarter.
Fiscal 2011 revenue was $257 million, up 72% compared to $149 million in fiscal 2010. On a GAAP basis, fiscal 2011 net income was $7.9 million or $0.28 per diluted share, compared to net loss of $12.0 million or $0.44 per share in the prior year. On a non-GAAP basis, excluding the impact of purchase accounting, equity compensation, and non-recurring items, net income was $16.0 million or $0.56 per diluted share, compared to a net loss of $6.6 million or $0.24 per share in 2010.
Konidaris added, "Fiscal 2011 was an outstanding year for ESI, with dramatic improvement in all operating metrics. The investments we made in innovation and new initiatives are driving growth, and we believe position us well heading into 2012."
Balance sheet and cash flow
At quarter end, cash and investments totaled $205 million. Cash flow from operations was $29 million for the quarter and $51 million for fiscal year 2011, as a result of higher profitability and improved working capital efficiency.
Based on current business conditions, ESI expects revenues for the first quarter of fiscal 2012 to be between $75 and $80 million. Non-GAAP earnings per share are expected to be $0.24 to $0.28, excluding the impact of purchase accounting, equity compensation, and non-recurring items.