UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 1998
ROFIN-SINAR TECHNOLOGIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-21377 38-3306461
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(State of other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
45701 Mast Street, Plymouth, MI 48170
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(Address of principal executive offices) (Zip Code)
(734) 455-5400
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report)
<PAGE>
ITEM 5 - OTHER EVENTS
The registrant released its earnings for the second quarter of fiscal 1998 on
May 12, 1998 per the attached exhibit.
ITEM 7 - FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
A) Not Applicable
B) Not Applicable
C) Exhibits:
99 - Press Release dated May 12, 1998
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.
ROFIN-SINAR TECHNOLOGIES, INC.
By: /s/ GUNTHER BRAUN
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Gunther Braun
Chief Financial Officer
Dated: June 4, 1998
<PAGE>
- PRESS RELEASE -
Contact: USA Derek Heins
Rofin-Sinar
313-455-5400
- or-
Europe Thorsten Frauenpreiss
Rofin-Sinar
++49-40-73363-256
ROFIN-SINAR REPORTS RESULTS FOR SECOND QUARTER FISCAL 1998; SALES OF $30
MILLION AND NET INCOME OF $1.9 MILLION
Plymouth, MI / Hamburg, Germany, May 12th, 1998 - ROFIN-SINAR Technologies,
Inc. (NASDAQ: RSTI), one of the world's leading developers and manufacturers
of high performance laser sources, today announced results for its second
fiscal quarter and half-year ended March 31, 1998.
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Three months ended Six months ended
---------------------------- ----------------------------
03/31/98 03/31/97 % Change 03/31/98 03/31/97 % Change
-------- -------- -------- -------- -------- --------
Net sales $ 29,961 $ 33,435 -10% $ 58,173 $ 67,469 -14%
Net Income $ 1,933 $ 2,488 -22% $ 3,971 $ 5,166 -23%
Earnings per share
"Diluted" Basis $ 0.17 $ 0.21 -19% $ 0.34 $ 0.45 -24%
The diluted earnings per share calculation is based on the weighted-average
shares outstanding and the potential dilution from common stock equivalents
(stock options) for each period presented, which was 11.6 million for the
fiscal quarters ending March 31, 1998 and 1997, and for the six month
periods, respectively.
Dr. Peter Wirth, Chairman and CEO commented, "Last year's second quarter was
one of the strongest in our history, and our sales and profit figures were
not able to reach the same levels this year due to a lower level of activity
at select customer groups in North America."
"Despite the effect of costs associated with our new UK operation, we were
able to achieve a net margin of 6.5%. On the technology front, this was the
first quarter where we shipped more of our Slab-lasers than conventional fast
axial flow lasers, a clear breakthrough for this proprietary technology."
<PAGE>
FINANCIAL REVIEW
SECOND QUARTER
For the second quarter ended March 31, 1998, net sales totaled $30.0 million,
10% below the comparable period in 1997. The US-dollar continued to
strengthen in relation to European currencies and the Japanese Yen resulting
in a negative impact of $1.9 million or 6% of sales in the quarterly
comparison.
Gross profit was 36.7% of sales ($11.0 million) and net income totaled $1.9
million, 19% lower than the corresponding prior year period. Net income was
6.5% of sales, compared to 7.4% in the second quarter of fiscal 1997.
Earnings per share diluted equaled $0.17 based upon 11.6 million common
shares outstanding.
Compared to the second quarter ending March 31, 1997, net sales of laser
products for cutting and welding applications decreased by 22% to $19.9
million, while net sales of lasers for marking and microwelding increased by
27% to $10.0 million.
R&D net spending was $2.2 million, or 7.3% of net sales, compared to $2.7
million, or 8.1% of net sales, in the second quarter of fiscal 1997.
Governmental grants accounted for $0.6 million this quarter versus zero in
the comparable period last year.
SIX MONTHS
For the six months ended March 31, 1998, net sales totaled $58.2 million, a
decrease of $9.3 million over the comparable period in 1997. The decrease was
caused by the strengthening of the US dollar, which had a negative impact of
$4.7 million, and the high volume of welding lasers to one automotive
supplier in the comparable period last year. Gross profit for the period was
$22.0 million, only $2.2 million lower than in 1997. Six months net income in
1998 totaled $4.0 million, with earnings per share of $0.34 on a diluted
basis.
On a geographical basis, Rofin-Sinar's largest single market was still North
America, where net sales in the first six months totaled $17.2 million (1997:
$25.3 million), a 32% decrease. In Europe/Asia, net sales decreased by 3% to
$41.0 million (1997: $42.2 million) and would have been $4.7 million, or 8%,
higher based on last year's exchange rates.
Order entry for the second quarter was $28.6 million. This resulted in an
order backlog on March 31, 1998 of $29.5 million.
In the coming quarters, the company expects that the demand for cutting and
welding lasers will be affected by a slower than anticipated market in North
America and a slowdown in Japan. The company believes that its significant
investment in diode technology and low-power CO2 lasers has put it in a
strong competitive position to exploit current and new markets, while its
success with the proprietary Slab-laser technology is expected to continue.
Headquartered in Plymouth, Michigan, and Hamburg, Germany, Rofin-Sinar
Technologies, Inc. designs, develops, engineers and manufactures industrial
laser products for cutting, welding and marking a wide range of materials.
With production facilities in the US, Germany, UK and Japan, Rofin-Sinar is
one of the world's leading designers and manufacturers of industrial lasers
and currently has more than 5000 laser units installed worldwide and serves
more than 1500 customers. Rofin-Sinar's shares trade on the NASDAQ National
Market System under the symbol RSTI. Additional information is available on
Rofin-Sinar's home page: http://www.rofin.com.
<PAGE>
ROFIN-SINAR TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share data)
Three Months Ended Six Months Ended
(unaudited) (unaudited)
---------------------- ----------------------
03/31/98 03/31/97 03/31/98 03/31/97
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- - Cutting/Welding $ 19,945 $ 25,521 $ 38,940 $ 50,921
- - Marking 10,016 7,914 19,233 16,548
Net Sales 29,961 33,435 58,173 67,469
Costs of goods sold 18,974 21,311 36,164 43,232
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Gross profit 10,987 12,124 22,009 24,237
Selling, general and
administrative expenses 5,900 5,651 11,320 11,533
Research and development
expenses 2,186 2,719 4,714 4,876
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Income from operations 2,901 3,754 5,975 7,828
Other expense (income) (437) (574) (820) (844)
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Income before income taxes 3,338 4,328 6,795 8,672
Income tax expense 1,405 1,840 2,824 3,506
Net income 1,933 2,488 3,971 5,166
========== ========== ========== ==========
Net income per common share
"diluted" basis $ 0.17 $ 0.21 $ 0.34 $ 0.45
The diluted earnings per share calculation is based on the weighted-average
shares outstanding and the potential dilution from common stock equivalents
(stock options) for each period presented, which was 11.6 million for the
fiscal quarters ending March 31, 1998 and 1997, and for the six month
periods, respectively.
<PAGE>
ROFIN-SINAR TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(UNAUDITED) (AUDITED)
At At
03/31/98 09/30/97
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ASSETS
Cash and cash equivalents $ 38,280 $ 40,743
Trade accounts receivable, net 31,114 27,148
Inventories net 30,373 28,731
Other current assets 5,061 5,345
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Total current assets 104,828 101,967
Net Property and equipment 22,019 22,118
Other non-current assets 7,592 8,104
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Total non-current assets 29,611 30,222
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Total assets $134,439 $132,189
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LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt $ 15,741 $ 18,569
Accounts payable, trade 7,859 5,837
Other current liabilities 19,749 22,554
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Total current liabilities 43,349 46,960
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Long-term debt 3,249 0
Other non-current liabilities 3,498 3,303
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Total liabilities 50,096 50,263
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Net stockholders' equity 84,343 81,926
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Total liabilities and
stockholders' equity $134,439 $132,189
========== ==========
Certain information included in this press release is forward-looking and is
subject to important risks and uncertainties that could cause actual results
to differ. Actual results could differ materially based on numerous factors,
including currency risk, competition, risk relating to sales growth in CO2-,
Nd:YAG lasers and Diode lasers, cyclicality, conflicting patents and other
intellectual property rights of third parties, potential infringement claims
and future capital requirements. These forward looking statements represent
the Company's best judgment as of the date of this release based in part on
preliminary information and certain assumptions which management believes to
be reasonable. The Company disclaims any obligation to update these forward
looking statements.
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