Buyout Pummels Profits At Plymouth Laser Maker Rofin

PLYMOUTH — Rofin-Sinar Technologies Inc. (Nasdaq: RSTI) said its sales and net income tumbled in the second fiscal quarter ended March 31 due to expenses associated with the company’s recent proxy contest and buyout by the Santa Clara, Calif.-based laser maker Coherent Inc.

The industrial laser maker reported net income of $529,000 or 2 cents a share, down from $8.7 million or 31 cents a share a year earlier. Revenue was $110.6 million, down from $122.7 million in the second fiscal quarter a year earlier.

For the first half of the fiscal year, net income was $7.1 million or 25 cents a share, down from $14.9 million or 53 cents a share a year earlier. Revenue was $223 million, down from $245.1 million a year earlier.

The company said profits were hurt by “non-recurring costs related to the recent proxy contest” and merger costs, and that sales were “lower than expected because of post-merger announcement delivery pushouts by customers.”

Sales of laser products for macro applications fell 6 percent $45.7 million, accounting for 41 percent of total sales. Sales of lasers for marking and micro applications fell 18 percent to $45.9 million, representing 42 percent of total sales. Quarterly shipments of laser units totaled 1,138, up from 1,082 a year earlier, of which 542 were delivered for macro applications and 596 for marking and micro applications. Sales of components rise 3 percent to $19 million, representing 17 percent of total sales.

For the second quarter of fiscal 2016, 46 percent of laser-related sales were from the machine tool industry, up from 36 percent in the prior year period); 10 percent from the automotive industry, down from 14 percent a year earlier; 15 percent from the semiconductor, electronics and photovoltaic industries, down from 18 percent a year earlier; and 29 percent from other industries, down from 32 percent a year earlier.

On a geographic basis, sales in North America were $23 million, a decrease of 22 percent, and $31.7 million in Asia, a decrease of 14 percent. Net sales fell 1 percent in Europe, to $55.9 million, largely due to exchange rate fluctuations.

In light of the pending transaction with Coherent, Rofin no longer expects to be providing forward guidance or conducting a conference call to discuss the results of its operations.

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