Revenue Up 32% From Q1-2010 and 6% From Q4-2010
EPS Was $0.54, vs. $0.11 in Q1-2010 and $0.52 in Q4-2010
HILLSBORO, Ore., May 3, 2011 (GLOBE NEWSWIRE) -- For the first quarter of 2011, FEI Company (Nasdaq:FEIC) reported the highest quarterly revenue and earnings in the company's history. Bookings and backlog also continued at high levels, and the company guided to further revenue and earnings increases in the second quarter of 2011.
Revenue of $197.0 million was up 32% compared to $149.1 million in the first quarter of 2010 and up 6% from $186.1 million in the fourth quarter of 2010.
Net income was $22.3 million or $0.54 per diluted share, compared with $4.1 million or $0.11 per diluted share in the first quarter of 2010 and $21.3 million or $0.52 per diluted share in the fourth quarter of 2010.
The gross margin in the first quarter was 43.6%, compared with 39.7% in the first quarter of 2010 and 45.0% in the fourth quarter of 2010. Operating income was 16.2% of sales in the quarter, compared with 3.7% in the first quarter of 2010 and 15.4% in the fourth quarter of 2010.
For the first quarter, net bookings were $190.8 million, up 14% from the first quarter of 2010 and down 13% from the record level of the fourth quarter of 2010. The backlog at the end of the quarter was $465.7 million, the second highest in company history. The book-to-bill ratio for the quarter was 0.97 to 1.
Gross cash, investments and restricted cash increased by $28.0 million to $451.8 million at the end of the quarter.
"We've started 2011 with revenue and earnings at the highest level in our history," said Don Kania, president and CEO of FEI. "Gross margins moderated from the fourth quarter as expected, as operating margins increased. Bookings remained strong with 31% year-over-year growth in both Life Sciences and Research and Industry, and 14% growth in Electronics. For the second quarter, we expect revenue to be strong with improved gross margins, and we continue to expect growth for 2011."
Bookings and revenue comparisons for the company's market segments and other data are included in the supplementary information attached to this release, along with detailed statements of operations and balance sheets.
Guidance for Q2 2011
Assuming a euro exchange rate of $1.45, FEI expects revenue in the second quarter of 2011 to be in the range of $195 million to $210 million. Bookings are expected to be in the range of $177 million to $197 million. GAAP earnings per share are expected to be in the range of $0.55 to $0.61.
Investor Conference Call -- 2:00 p.m. Pacific time, Tuesday, May 3, 2011
Parties interested in listening to FEI's quarterly conference call may do so by dialing 1-877-941-1466 (U.S., toll-free) or 1-480-629-9677 (international and toll), with the conference title: FEI First Quarter Earnings Call, Conference ID 4435139. A telephone replay of the call will be available at 1-800-406-7325 (U.S., toll-free) or 1-303-590-3030 (international and toll) with the passcode: 4435139#. The call can also be accessed via the web by going to FEI's Investor Relations page at , where the webcast will also be archived.
About FEI
FEI (Nasdaq:FEIC) is a leading diversified scientific instruments company. It is a premier provider of electron and ion-beam microscopes and tools for nanoscale applications globally and across many industries: industrial and academic materials research, life sciences, semiconductors, data storage, natural resources and more. With a history of over 60 years of technological innovation and leadership, FEI has set the performance standard in transmission electron microscopes (TEM), scanning electron microscopes (SEM) and DualBeams™, which combine a SEM with a focused ion beam (FIB). FEI's imaging systems provide 3D characterization, analysis and modification/prototyping with resolutions down to the sub-Ångström (one-tenth of a nanometer) level. FEI has over 1,800 employees and sales and service operations in more than 50 countries around the world. More information can be found at: www.fei.com.
The FEI Company logo is available at
Safe Harbor Statement
This news release contains forward-looking statements that include statements regarding our guidance for the second quarter of 2011 and future periods, the expected shipment of our backlog; expectations for future bookings; expectations about foreign currency rates; expected tax rates; expectations for product sales and expectations about gross margins. Forward-looking statements may also be identified by words and phrases that refer to future expectations, such as "believe", "guidance", "expect", "expects", "are expected", "will", "estimate", "assuming" and other similar words and phrases. Factors that could affect these forward-looking statements include, but are not limited to, the global economic environment; lower than expected customer orders and potential weakness of the Research & Industry, Electronics and Life Sciences market segments; our ability to manufacture product at expected volumes; supply chain limitations; bankruptcy or insolvency of customers or suppliers; cyclical changes in the data storage and semiconductor industries, which are the major components of Electronics market revenue; fluctuations in foreign exchange, interest and tax rates; changes in tax rate and laws, accounting rules regarding taxes or agreements with tax authorities; the ongoing determination of the effectiveness of foreign exchange hedge transactions; reduced profitability due to failure to achieve or sustain margin improvement in service or product manufacturing; the relative mix of higher-margin and lower-margin products; failure to achieve expected cost reductions and other improvements from restructuring plans; risks associated with shipping a high percentage of the company's quarterly revenue in the last month of the quarter; customer requests to defer planned shipments; increased competition and new product offerings from competitors; lower average sales prices and reduced margins on some product sales due to increased competition; failure of the company's products and technology, including new products, to find acceptance with customers; inability to deploy products as expected or delays in shipping products due to technical problems or barriers; potential shipment or supply chain disruptions due to natural disasters or terrorist attacks; changes to or potential additional restructurings and reorganizations not presently anticipated; reduced sales due to geopolitical risks; changes in trade policies and tariff regulations; changes in the regulatory environment in the nations where we do business; additional selling, general and administrative or research and development expenses; reduced governmental spending due to budget constraints; additional costs related to future merger and acquisition activity; and failure of the company to achieve anticipated benefits of acquisitions and collaborations, including failure to achieve financial goals and integrate future acquisitions successfully. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update forward-looking statements.
CONTACT: FEI Company Fletcher Chamberlin Treasurer & Communications Director (503) 726-7710 [email protected]
