ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release of Excel Technology, Inc., issued
October 18, 2007.
Signatures
..........
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: October 18, 2007
EXCEL TECHNOLOGY, INC.
By: /s/ Antoine Dominic
.......................................
Antoine Dominic
President, Chief Executive Officer and
Director
(Principal Executive Officer)
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FOR IMMEDIATE RELEASE Contact: Alice Varisano, CFO
or
Investor Relations, 631-784-6175
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EXCEL TECHNOLOGY ANNOUNCES RESULTS FOR Q3 2007
Sales: $37.4 million for 2007 vs. $40.3 million
for 2006 (7.1% decrease)
Pretax Income: $5.3 million for 2007 vs. $3.7 million for
2006 (43.5% increase)
Non-GAAP Pretax Income: $6.0 million for 2007 vs. $3.7 million for
2006 (60.3% increase)
Net Income: $3.9 million for 2007 vs. $2.5 million for
2006 (57.3% increase)
Non-GAAP Net Income: 4.3 million for 2007 vs. $2.5 million for
2006 (73.0%) increase
EPS: $0.33 for 2007 vs. $0.20 for 2006 per
diluted share (63.7% increase)
Non-GAAP EPS: $0.36 for 2007 vs. $0.20 for 2006 per
diluted share (80.1% increase)
(Non-GAAP-excludes stock-based compensation expense)
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EAST SETAUKET, N.Y., October 18, 2007 - Excel Technology, Inc. (NASDAQ:
XLTC) today announced results for the quarter ended September 28, 2007.
- Sales: Excel reported sales of $37.4 million for the quarter ended
September 28, 2007 compared to $40.3 million in sales for the
quarter ended September 29, 2006, a decrease of 7.1% or $2.9
million. Sales for the nine months increased 2.4% to $118.9
million for the nine months ended September 28, 2007 as compared to
$116.2 million for the same period last year.
- Pretax Income increased 43.5% to $5.3 million for the third quarter
of 2007 as compared to $3.7 million for the same period last year.
Pretax income increased 19.0% for the nine months ended September
28, 2007 to $18.3 million as compared to $15.3 million for the same
period last year.
- Non-GAAP Pretax Income increased 60.3% to $6.0 million for the
quarter ended September 28, 2007 (excludes stock-based compensation
expense of $650 thousand) from $3.7 million for the quarter ended
September 29, 2006 (excludes stock-based compensation expense of
$18 thousand). For the nine month period, non-GAAP pretax income
increased 33.1% to $20.6 million (excludes stock-based compensation
expense of $2.3 million) as compared to $15.4 million for the same
period last year (excludes stock-based compensation expense of $95
thousand).
- Net Income increased 57.3% to $3.9 million for the third quarter of
this year as compared to $2.5 million in the same period last year.
For the nine months ending September 28, 2007 net income increased
26.4% to $13.1 million as compared to $10.3 million for the same
period last year.
- Non-GAAP Net Income increased 73.0% to $4.3 million for the third
quarter of 2007 (excludes stock-based compensation expense, net of
taxes, of $422 thousand) from $2.5 million for the same period last
year (excludes stock-based compensation expense, net of taxes, of
$18 thousand). Non-GAAP net income increased 39.5% to $14.6
million for the nine months ending September 28, 2007 (excludes
stock-based compensation expense, net of taxes of $1.5 million)
from $10.4 million for the same period last year (excludes stock-
based compensation expense, net of taxes of $95 thousand).
- EPS: Net income per share on a diluted basis increased 63.7%
recording $0.33 for the quarter ended September 28, 2007 compared
to the $0.20 per share on a diluted basis reported for the quarter
ended September 29, 2006. EPS for the nine months ending September
28, 2007 increased 28.9% to $1.07 per diluted share from $0.83 for
the same period last year.
- Non-GAAP EPS: Net income per share on a diluted basis increased
80.1% recording $0.36 for the quarter ended September 28, 2007
(excludes stock-based compensation expense, net of taxes, of $0.03)
compared to $0.20 per share on a diluted basis for the quarter
ended September 29, 2006 (excludes stock-based compensation expense
of less than $0.01). For the nine months ending September 28, 2007,
non-GAAP diluted EPS increased 42.3% to $1.19 (excluding stock-
based compensation, net of taxes of $0.12) compared to $0.83
(excluding stock-based compensation of less than $0.01) for the
same period last year.
Antoine Dominic, Chief Executive Officer, stated, "Although our sales
were lower than we planned our earnings were quite good. Revenues for
the quarter were lower as a result of push backs and lower sales from
our light and color measurement products due to the slow down in capital
spending in the flat panel market; scientific and research market due to
the internal disruption in our sales network from the failed merger; and
our system sales due to a shift from an indirect sales network to a
direct sales network. We believe that the impact of these factors will
be overcome in the near term as we are anticipating higher revenues in
the fourth quarter and for the year 2007 as compared to 2006. We are on
track to achieve a new high in revenues, earnings, and EPS in 2007.
Considering the disruptions from the failed merger our results are quite
satisfying. Our stock buy back program has resulted in the repurchase
of approximately 6% of the outstanding shares. We anticipate our
projected earnings growth coupled with the stock repurchases should
positively impact EPS in 2008."
Alice Hughes Varisano, Chief Financial Officer, concluded, "The
Company's pretax profit margins improved as it achieved 16% on revenues
for the quarter (on a non-GAAP basis), which equates to a 72% increase
compared to (non-GAAP) the same period last year. Pretax income, for
the quarter, increased 43.5% to $5.3 million compared to the same period
last year and 19.0%, for the nine months, compared to the same period
last year. Net income after tax increased 57.3% to $3.9 million (73.0%
to $4.3 million on a non-GAAP basis) compared to $2.5 (both GAAP and
non-GAAP) in the same period last year. Net income after tax includes
$422 thousand non-cash stock-based compensation expense which had a $.03
per share effect on diluted earnings per share. During the first nine
months of 2007, the Company utilized $15.9 million of its cash to
repurchase 617 thousand shares of its common stock. Since the stock
buyback plan was announced in October 2006, the Company has bought back
almost 700 thousand shares. The Company's cash and investment balance
is $58.1 million as of September 28, 2007, with no debt. The Company
had bookings of $38 million during this quarter and in the same period
in 2006.
This news release contains forward-looking statements, which are based
on current expectations. Actual results could differ materially from
those discussed or implied in the forward-looking statements as a result
of various factors including future economic, competitive, regulatory,
and market conditions, future business decisions, market acceptance of
the Company's products, and those factors discussed in the Company's
Form 10-K for the year ended December 31, 2006. In light of the
significant uncertainties inherent in such forward-looking statements,
they should not be regarded as a representation that the Company's
objectives and plans will be achieved, and they should not be relied
upon by investors when making an investment decision. Words such as
"believes," "anticipates," "expects," "intends," "may," and similar
expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying such statements.
Excel and its wholly owned subsidiaries manufacture and market
photonics-based solutions, consisting of laser systems and electro-
optical components, primarily for industrial and scientific
applications.
FINANCIAL SUMMARY
(unaudited and in thousands, except per share data)
FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPT 28, SEPT 29, SEPT 28, SEPT 29,
2007 2006 2007 2006
........ ........ ........ ........
Net Sales & Services $ 37,446 $ 40,299 $118,919 $116,154
Cost of Sales
and Services $ 21,285 $ 22,350 $ 66,855 $ 62,890
........ ........ ........ ........
Gross Profit $ 16,161 $ 17,949 $ 52,064 $ 53,264
Operating Expenses:
Selling & Marketing $ 4,107 $ 4,611 $ 13,053 $ 14,352
General & Administrative $ 3,933 $ 3,724 $ 12,051 $ 9,689
Research and Development $ 3,662 $ 3,527 $ 11,271 $ 10,807
Merger related and deferred
compensation expenses $ 0 $ 2,875 $ 0 $ 2,875
Merger expenses $ 0 $ 210 $ 0 $ 2,194
........ ........ ........ ........
Operating Income $ 4,459 $ 3,002 $ 15,689 $ 13,347
Interest Income $ 703 $ 755 $ 2,327 $ 1,772
Other Income (Expense) $ 168 $ (43) $ 248 $ 228
........ ........ ........ ........
Pretax Income $ 5,330 $ 3,714 $ 18,264 $ 15,347
Provision for
Income Taxes $ 1,417 $ 1,226 $ 5,183 $ 5,002
........ ........ ........ ........
Net Income $ 3,913 $ 2,488 $ 13,081 $ 10,345
........ ........ ........ ........
........ ........ ........ ........
Net Income Per Common
Share-Diluted $ 0.33 $ 0.20 $ 1.07 $ 0.83
Weighted Average
Common Shares
Outstanding - Diluted 12,030 12,522 12,263 12,505
FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPT 28, SEPT 29, SEPT 28, SEPT 29,
2007 2006 2007 2006
........ ........ ........ ........
Reconciliation of GAAP
pretax income to
Non-GAAP pretax income
Pretax Income $ 5,330 $ 3,714 $ 18,264 $ 15,347
Stock-based compensation $ 650 $ 18 $ 2,292 $ 95
........ ........ ........ ........
Non-GAAP pretax income $ 5,980 $ 3,732 $ 20,556 $ 15,442
........ ........ ........ ........
........ ........ ........ ........
Reconciliation of GAAP
net income to Non-GAAP
net income
Net Income $ 3,913 $ 2,488 $ 13,081 $ 10,345
Stock-based compensation,
net of taxes $ 422 $ 18 $ 1,485 $ 95
........ ........ ........ ........
Non-GAAP net income $ 4,335 $ 2,506 $ 14,566 $ 10,440
........ ........ ........ ........
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Reconciliation of GAAP
income per common share
to Non-GAAP income per
common share
GAAP income per common share:
Basic $ 0.33 $ 0.21 $ 1.09 $ 0.86
Diluted $ 0.33 $ 0.20 $ 1.07 $ 0.83
Stock-based compensation
Basic $ 0.03 $ 0 $ 0.12 $ 0
Diluted $ 0.03 $ 0 $ 0.12 $ 0
Non-GAAP income per
common share:
Basic $ 0.36 $ 0.21 $ 1.22 $ 0.86
Diluted $ 0.36 $ 0.20 $ 1.19 $ 0.83
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BALANCE SHEET & SELECTED FINANCIAL DATA
SEPTEMBER 28, 2007 DECEMBER 31, 2006
(UNAUDITED) (AUDITED)
Cash $ 7,519 $ 9,903
Investments $ 50,550 $ 53,220
Accounts Receivable, net $ 23,937 $ 22,716
Inventory $ 36,569 $ 34,906
Other Current Assets $ 6,109 $ 3,445
.......... .........
Total Current Assets $ 124,684 $ 124,190
Property, Plant & Equipment, net $ 24,876 $ 25,503
Other Non-Current Assets & Goodwill $ 34,053 $ 32,286
.......... .........
Total Assets $ 183,613 $ 181,979
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Accounts Payable $ 5,149 $ 6,386
Accrued Expenses and
Other Current Liabilities $ 8,147 $ 7,256
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Total Current Liabilities $ 13,296 $ 13,642
Other Non-Current Liabilities $ 4,651 $ 4,546
Minority Interest of Subsidiary $ 133 $ 66
Stockholders' Equity $ 165,533 $ 163,725
.......... .........
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Total Liabilities & Stockholders' Equity $ 183,613 $ 181,979
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Working Capital $ 111,388 $ 110,548
The non-GAAP financial measures used in this press release are not
prepared in accordance with generally accepted accounting principles and
may be different from non-GAAP financial measures used by other
companies. The Company's management refers to these non-GAAP financial
measures in making operating decisions because they provide meaningful
supplemental information regarding the Company's operating comparisons
to the Company's historical operating results. We include these non-
GAAP financial measures (which should be viewed as a supplement to, and
not a substitute for, their comparable GAAP measures) in this press
release because we believe they are useful to investors in allowing for
greater transparency to supplemental information used by management in
its financial and operational decision0making. For a reconciliation of
our GAAP and non-GAAP financial results, please refer to our
Reconciliation of Reported GAAP Results to Non-GAAP Measures, presented
in this release.