Laser Maker's Profit Plunges

PLYMOUTH — The industrial laser maker Rofin-Sinar Technologies Inc. (Nasdaq: RSTI) saw its net income fall 38 percent in its fiscal year’s second quarter, which ended March 31.

Net income for the quarter was $4.5 million or 16 cents a share, down from $7.4 million or 26 cents a share a year earlier. Revenue for the quarer was $126.6 million, down 2 percent from $131.1 million a year earlier.

For the six months, net income was $6.7 million, down 59 percent from $16.3 million in the same quarter a year earlier. Six-month revenue was $249.8 million, down 9 percent from $273.4 million a year earlier.

Despite the decline, RSTI CEO and president Gunther Braun said the company was “happy to deliver a better than projected gross margin and results at the high end of our guidance.” He said the company’s sales were hurt by a soft machine tool market in China, partially offset by improvements in Europe. Sales in North America continue to lag due to softness in the medical device and automotive industries, Braun said.

He said the company is already seeing improvements in sales from the recent closing of the purchase of the assets of FiLaser.

For the quarter, selling, general and administrative expenses were $27.7 million, up from $25.9 million a year earlier. Research and development expense was unchanged at $11.6 million.

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

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

Order entry for the quarter decreased 8 percent 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.

For the third quarter ending June 30, the company said it expects revenues to be in the range of $132 million to $137 million with earnings per share in the range of 20 to 24 cents.

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