Rofin-Sinar Net Income Jumps 61% For Fiscal Year

PLYMOUTH — Rofin-Sinar Technologies Inc. (Nasdaq: RSTI), the industrial laser maker with dual headquarters in Plymouth and Hamburg, Germany, reported net income of $14.8 million or 52 cents a share in the fourth fiscal quarter ended Sept. 30, up from $12 million or 43 cents a share in the same quarter a year earlier.

Revenue was $142 million, down from $146.1 million a year earlier.

For the fiscal year, net income was $41.3 million or $1.46 a share, up from $25.2 million or 89 cents a share in the prior fiscal yaer. Revenue was $519.6 million, down from $530.1 million a year earlier.

RSTI president and CEO Thomas Merk noted that the fourth quarter “was our strongest quarter in fiscal year 2015, with both earnings and revenues surpassing our guidance. We continue to see the positive effects of our cost optimization strategies, including our consolidation efforts, and were able to further improve gross profit margin to 40 percent for the quarter. Our third-generation high-power fiber laser business is progressing very well. We further improved our margins in the manufacturing of these lasers through better fixed cost absorption and scaling effects derived from higher business volume. On a sequential basis, we were able to increase quarterly unit sales by roughly 50 percent and it is our target to achieve a growth rate of this magnitude in fiscal year 2016. In our second growth area, the ultrashort pulse lasers, we are also gaining momentum. In this segment, we see future growth in the medical device, automotive and photovoltaic industries. On a sequential basis, revenues from ultrashort pulse lasers more than doubled. We made more first installations for the cutting of brittle materials in Asia and Europe and were granted an additional fundamental patent in the U.S. With our efficiency and cost reduction program that we announced in the second quarter, we continue to proactively target further cost control, while actively promoting sales and development in key areas and markets. Coupling these initiatives on the cost side with our strong product portfolio, we feel well-positioned for a successful fiscal year 2016.”

The company said the stronger U.S. dollar against the Euro produced a decrease in net sales of $13.7 million.

During the fourth quarter, selling, general and administrative expenses were $24.2 million, down $2.9 million from a year earlier. Net research and development expenses were $9.8 million, down $1.7 million from a year earlier.

Sales of laser products for macro applications fell 3 percent to $55.6 million and accounted for 39 percent of total sales. Sales of lasers for marking and micro applications fell 6 percent to $65.5 million and represented 46 percent of total sales. Sales of components rose 8 percent to $20.9 million and represented 15 percent of total sales.

On a geographical basis, revenues were stable in North America, totaling $28.1 million, fell 7 percent to $48.5 million in Asia, and were flat at $65.4 million in Europe during the fourth quarter of fiscal year 2015.

For the full fiscal year, the strong dollar vs. the Euro resulted in a decrease in net sales of $49.3 million. Sales of lasers for macro applications fell 4 percent to $200.3 million and net sales of lasers for marking and micro applications fell 2.9 percent to $243.1 million. Sales of components rose 8 percent to $76.2 million.

On a geographical basis, fiscal year sales rose 10 percent in North America to $112.1 million, fell 9 percent in Europe to $232.9 million and rose 2 percent in Asia to $174.6 million.

The company expects revenue for its current fiscal year, which will end Sept. 30, 2016, to be between $525 million and $545 million. Earnings per share are predicted to be between $1.70 and $1.90, representing year-over-year growth of 23 percent at the mid-point of the range.

Taking into account the company’s traditionally seasonally lower first quarter, likely to be further impacted by the ongoing adverse currency effects and slower economic environment in Asia, the company said it expects sales to be in the range of $113 million to $118 million and earnings per share to be in the range of 19 to 24 cents for the first fiscal quarter ending December 31, 2015.

To listen to a conference call discussing these results, visit http://www.rofin.com.

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