PLYMOUTH — Rofin-Sinar Technologies Inc. (Nasdaq: RSTI), the industrial laser maker with dual headquarters in Plymouth and Hamburg, Germany, reported net income of $6.2 million or 22 cents a share in its first fiscal quarter ended Dec. 31, nearly triple the figure from the same quarter a year ago, $2.3 milion or 8 cents a share.
Revenue was $122.4 million, up from $121.2 million in the same quarter a year earlier.
The company said sales were cut by $7.1 million due to a stronger United States dollar, mainly against the Euro. Nearly 70 percent of the company’s revenue occurs outside the United States, so exchange rate volatility can serously affect RSTI.
Gunther Braun, RSTI president and CEO, said the company’s results were also hurt by “volume-related, under-absorbed fixed costs, timing for revenue recognition on certain orders, and a less favorable product mix.” Helping results, he said, was a reduction in operating expenses.
Braun added that the company expects European and North American business conditions to be stable throughout the calendar year, assuming that European monetary policy does not have a significant influence on the economy. The company also said it expects its Asian business to improve over the year, mostly due to the Chinese government’s initiatives in infrastructure, green and semiconductor technologies, as well as stable business in other Asian markets.
Selling, general and administrative expenses were $24.1 million for the quarter, down $1.3 million from a year earlier. Research and development expenses were $10.6 million, down $900,000 from a year earlier.
Sales of laser products for macro applications fell 3 percent to $47.7 million, accounting for 39 percent of total sales. Sales of lasers for marking and micro applications rose 3 percent to $57.6 million, 47 percent of total sales. Sales of components rose 6 percent to $17.1 million, 14 percent of total sales.
On a geographical basis, revenues in North America rose 10 percent to $27.1 million and by 5 percetn in Asia, to $39 million, and fell 5 percent in Europe to $56.3 million.
Order entry for the quarter fell 13 percent to $122.7 million compared to the first quarter of fiscal year 2014, resulting in a backlog of $141.6 million as of Dec. 31, mainly for laser products.
For the second quarter ending March 31, taking into account the anticipated impact of the average exchange rate, the Company expects sales to be in the range of $121 million to $126 million and earnings per share to be in the range of 21 cents to 23 cents.
For the fiscal year ending September 30, 2015, the Company is updating its guidance because of the current negative impact of the average exchange rates. This updated guidance does not reflect any material change in the operating assumptions underlying the company’s earlier guidance for its fiscal year. The Company now expects sales to range between $515 million to $535 million and net income profitability at the mid-point of the sales range to be around 7 percent of net sales.
Rofin-Sinar’s products range from single laser-beam sources to highly complex systems, covering all key laser technologies such as CO2 lasers, fiber, solid-state and diode lasers, and the entire power spectrum, from single-digit watts up to multiple kilowatts, as well as a comprehensive spectrum of wavelengths or pulse durations and an extensive range of laser components.
Rofin-Sinar currently has more than 52,000 laser units installed worldwide and serves more than 4,000 customers.
For a replay of a conference call discussing these results, visit www.rofin.com.