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FEI Reports First Quarter 2016 Results

HILLSBORO, Ore., May 04, 2016 (GLOBE NEWSWIRE via COMTEX) --

FEI Company FEIC, +0.28% today reported results for the first quarter of 2016. First quarter revenue of $229 million was up 3.5% compared with $221 million for the first quarter of 2015. First quarter organic revenue was down 1.8% compared with the first quarter of 2015. The company's backlog of orders at the end of the first quarter of 2016 was a record $656 million compared with $510 million at the end of the first quarter of 2015, and $591 million at the end of the fourth quarter of 2015. Bookings for the first quarter of 2016 were $272 million, resulting in a book-to-bill ratio of 1.19-to-1.

Diluted earnings per share computed on the basis of accounting principles generally accepted in the United States (GAAP) were $0.56 for the first quarter of 2016, compared with $0.66 in the first quarter of 2015. Net income for the quarter was $23 million compared with $28 million in the first quarter of 2015.

Gross margin for the first quarter was 46.9%, compared with 47.7% for the first quarter of 2015. Operating margin was 13.3% for the first quarter of 2016 compared to 16.4% for the first quarter of 2015. Adjusted EBITDA for the first quarter of 2016 was $41 million compared with $45 million for the first quarter of 2015. A reconciliation of adjusted EBITDA to GAAP operating income is included in a table attached to this press release.

Reported revenue from the December 2015 acquisition of DCG Systems, Inc. was $14 million during the first quarter of 2016. The DCG business had an 80 basis point negative impact on gross margin and $1.8 million negative impact on net income, or $0.04 per share, during the first quarter of 2016.

Net cash provided by operating activities for the first quarter of 2016 was $28 million, up from $23 million for the first quarter of 2015. During the quarter, the company paid cash dividends of $12 million, invested $6.1 million in plant and equipment and repurchased 12,599 shares of its common stock at an average price of $74.87.

"We had a solid start to 2016," commented Don Kania, president and CEO. "Our Science Group drove record first quarter orders, underpinned by robust cryo-EM activity as new customer enthusiasm for our structural biology solutions continues to build.

"Our record backlog positions us for accelerated revenue and profitability growth as 2016 progresses. In the semiconductor market, we expect a healthier spending environment in the second quarter and the back half of the year."

Outlook

For the second quarter of 2016, the company expects reported revenue to be in the range of $250 million to $260 million. On an organic basis, excluding revenue from DCG and potential foreign exchange impacts, second quarter 2016 revenue is expected to grow in the range of 5.0% to 8.0% compared with the second quarter of 2015. Second quarter GAAP earnings per fully diluted share are expected to be in the range of $0.80 to $0.90. This range is based on an expected tax rate for the quarter of approximately 21%.

For full year 2016, the company continues to expect reported revenue to be in the range of $1.02 billion to $1.05 billion. On an organic basis, excluding revenue from DCG and potential foreign exchange impacts, revenue is expected to grow in the range of 3.5% to 6.5%, compared with 2015. Adjusted EBITDA is expected to be in the range of $235 million to $245 million. GAAP earnings per fully diluted share are expected to be in the range of $3.55 to $3.70. This range is based on an expected tax rate for the full year of approximately 21%.

Investor Conference Call - 2:00 p.m. Pacific Time, Wednesday, May 4, 2016

Parties interested in listening to FEI's quarterly conference call may do so by dialing 1-877-407-8293 (U.S., toll-free) or +1-201-689-8349 (international and toll), with the conference title: FEI First Quarter Earnings Conference Call. The call can also be accessed via the web by going to FEI's Investor Relations page at http://investor.fei.com/event, where the webcast will also be archived.

Non-GAAP Financial Measures

This press release includes Adjusted EBITDA, a non-GAAP financial measure. The company calculates Adjusted EBITDA by excluding depreciation, amortization, certain restructuring costs, and certain integration costs from GAAP operating income. Reconciliations of Adjusted EBITDA to GAAP operating income are included in a table attached to this press release. Investors and potential investors are encouraged to review these reconciliations.

FEI's management uses this non-GAAP financial measure because it excludes items that are generally not directly related to the performance of the company's core business operations and therefore provides useful supplemental information to management and investors regarding the performance of the company's business operations, facilitates comparisons to the company's historical operating results, and enhances investors' ability to review the company's business from the same perspective as management.

The non-GAAP financial measures that are provided are not intended to be used in isolation and should not be considered a substitute for any other performance measure determined in accordance with GAAP. Investors and potential investors are cautioned that there are material limitations associated with the use of...


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