-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E52ytJIiGwmGS4WZKvo1LSbhdjnN7FstqfvVnIoSwmajGDg9FfJtTCP8H6yGZtYG NFtSN/k88cCoNpbHQcdOfA== 0001144204-08-025213.txt : 20080430 0001144204-08-025213.hdr.sgml : 20080430 20080430163728 ACCESSION NUMBER: 0001144204-08-025213 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080430 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080430 DATE AS OF CHANGE: 20080430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GSI GROUP INC CENTRAL INDEX KEY: 0001076930 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 980110412 STATE OF INCORPORATION: A3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25705 FILM NUMBER: 08790316 BUSINESS ADDRESS: STREET 1: 39 MANNING ROAD STREET 2: . CITY: BILLERICA STATE: MA ZIP: 01821 BUSINESS PHONE: 978-439-5511 MAIL ADDRESS: STREET 1: 39 MANNING ROAD STREET 2: . CITY: BILLERICA STATE: MA ZIP: 01821 FORMER COMPANY: FORMER CONFORMED NAME: GSI LUMONICS INC DATE OF NAME CHANGE: 19990401 FORMER COMPANY: FORMER CONFORMED NAME: GSI LUMONICS DATE OF NAME CHANGE: 19990331 FORMER COMPANY: FORMER CONFORMED NAME: LUMONICS INC DATE OF NAME CHANGE: 19990115 8-K 1 v112268_8k.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------- 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): April 30, 2008 GSI GROUP INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada ---------------------------------------------- (State or other jurisdiction of incorporation) 000-25705 98-0110412 - -------------------------------------------------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 39 Manning Road, Billerica, Massachusetts 01821 ------------------------------------------------------------ (Address of principal executive offices, including zip code) (978) 439-5511 ---------------------------------------------------- (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 220.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) - -------------------------------------------------------------------------------- ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On April 30, 2008, GSI Group Inc. (the "Company") issued a press release announcing its financial position and results of operations as of and for the fiscal quarter ended March 28, 2008. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements of Businesses Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Shell Company Transactions. Not applicable. (d) Exhibits. 99.1 Press Release issued April 30, 2008 The information in this Current Report on Form 8-K (including the press release attached as Exhibit 99.1 hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless the Company expressly sets forth in such future filing that such information is to be considered "filed" or incorporated by reference therein. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GSI GROUP INC. (Registrant) Date: April 30, 2008 By: /s/ Robert L. Bowen ------------------------------------ Robert L. Bowen Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press Release issued April 30, 2008. EX-99.1 2 v112268_ex99-1.txt GSI Group Reports First Quarter Results BILLERICA, MA April 30, 2008: GSI Group Inc., (Nasdaq: GSIG), a supplier of precision technology and semiconductor systems, today announced financial results for the first quarter ended March 28, 2008. First quarter revenue was $71.7 million, compared to $86.5 million in the fourth quarter of 2007 and $74.2 million for the first quarter of 2007. Excluding restructuring charges, operating profit was $1.5 million in the first quarter versus $7.7 million in the fourth quarter and $6.1 million in the first quarter of 2007. GAAP net income for the quarter was $2.1 million, or $0.05 per diluted share, compared to the fourth quarter results of $4.7 million, or $0.11 per diluted share, and $3.2 million, or $0.08 per diluted share in the first quarter of 2007. First quarter bookings were $56.1 million, compared to $87.5 million in the fourth quarter of 2007 and $76.9 million in the first quarter of 2007. The book-to-bill ratio was 0.78. The backlog as of March 28, 2008 was $74.8 million, compared with $79.3 million in the first quarter of 2007. The backlog as of March 28, 2008 includes deferred revenue of $11.7 million. Dr. Sergio Edelstein, President and CEO commented, "I am pleased with the gains we have made in our Precision Technology segment. The semiconductor and printed circuit board markets softened during the first quarter and we are using this cyclical period to position ourselves for the next upturn and to gain greater operational efficiency. We remain focused on executing our strategy of market penetration, new product launches, building our presence in Asia and integrating our company to optimize efficiency." Gross margin was 38.1% in the first quarter, versus 38.0% in the fourth quarter 2007. Operating expenses, excluding restructuring charges were $25.9 million in the first quarter compared to $25.2 million in the fourth quarter. Stock based compensation was $0.8 million in the first quarter versus $0.7 million in the fourth quarter 2007. Cash and cash equivalents were $170.7 million, down $1.1 million from the fourth quarter. First quarter cash usage includes disbursements of $3.1 million in connection with the Company's previously announced stock buyback program. The Company anticipates the following for the second quarter of 2008: - - Revenue to be in the range of $64.0 million to $68.0 million - - Diluted earnings per share, including restructuring charges, at approximately breakeven. Dial In: May 1st at 8:30 a.m. ET GSI Group will host a conference call for investors at 8:30 a.m. Eastern on May 1st. Participants are invited to join by dialing (706) 634-5123 with an access code: 43049719. The replay will be available for two weeks by dialing (706) 645-9291 with the replay passcode: 43049719. The conference call also will be broadcast live over the Internet at www.gsig.com. About GSI Group Inc. GSI Group Inc. supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are listed on Nasdaq (GSIG). Certain statements in this news release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements may relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, tax issues and other matters. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "objective" and other similar expressions. Readers should not place undue reliance on the forward- looking statements contained in this news release. Such statements are based on management's beliefs and assumptions and on information currently available to management and are subject to risks, uncertainties and changes in condition, significance, value and effect. Other risks include the fact that the Company's sales have been and are expected to continue to be dependent upon customer capital equipment expenditures, which are, in turn, affected by business cycles in the markets served by those customers. Other factors include volatility in the semiconductor industry, the risk of order delays and cancellations, the risk of delays by customers in introducing their new products and market acceptance of products incorporating subsystems supplied by the Company, risks of currency fluctuations, risks to the Company of delays in its new products, our ability to continue to reduce costs and capital expenditures, our ability to focus R&D investment and integrate acquisitions, changes in applicable accounting standards, tax regulations or other external regulatory rules and standards, and other risks detailed in reports and documents filed by the Company with the United States Securities and Exchange Commission and with securities regulatory authorities in Canada. Such risks, uncertainties and changes in condition, significance, value and effect, many of which are beyond the Company's control, could cause the Company's actual results and other future events to differ materially from those anticipated. The Company does not, however, assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements. For more information contact: Investor Relations, 978-439-5511, Ray Ruddy, (ext. 6170) GSI GROUP INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars, except share amounts)
March 28, December 31, 2008 2007 ---------- ---------- ASSETS Current Assets Cash and cash equivalents ............................................. $ 170,652 $ 171,714 Accounts receivable, less allowance of $408 (December 31, 2007 -- $372) 72,629 73,527 Income taxes receivable ............................................... 13,129 12,241 Inventories ........................................................... 66,926 65,522 Deferred tax assets ................................................... 8,264 8,249 Other current assets .................................................. 6,926 7,394 ---------- ---------- Total current assets ............................................ 338,526 338,647 Property, plant and equipment, net of accumulated depreciation of $33,103 (December 31, 2007 -- $32,263) ................................ 33,439 30,817 Deferred tax assets ......................................................... 9,982 9,887 Other assets ................................................................ 1,051 713 Long-term investments ....................................................... 975 854 Intangible assets, net of amortization of $9,203 (December 31, 2007 -- $8,603) .......................................................... 12,349 12,817 Patents and acquired technology, net of amortization of $41,348 (December 31, 2007 -- $40,122) ........................................... 18,993 20,054 Goodwill .................................................................... 26,421 26,421 ---------- ---------- Total Assets ...................................... $ 441,736 $ 440,210 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable ...................................................... $ 14,505 $ 17,504 Income taxes payable .................................................. 1,018 1,411 Accrued compensation and benefits ..................................... 8,537 10,369 Deferred revenue ...................................................... 11,688 9,949 Deferred tax liabilities .............................................. 286 286 Other accrued expenses ................................................ 9,729 9,353 ---------- ---------- Total current liabilities ....................................... 45,763 48,872 Deferred tax liabilities .................................................... 7,645 7,589 Accrued long term restructuring ............................................. 1,019 938 Income taxes payable ........................................................ 3,253 3,537 Accrued pension liability ................................................... 4,681 4,481 Other long term liabilities ................................................. 1,106 676 ---------- ---------- Total liabilities ............................................... 63,467 66,093 Commitments and contingencies Stockholders' equity Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 41,855,293 (December 31, 2007--42,161,592) . 307,875 310,970 Additional paid-in capital ............................................ 9,043 8,245 Retained earnings ..................................................... 50,436 48,329 Accumulated other comprehensive income ................................ 10,915 6,573 ---------- ---------- Total stockholders' equity ...................................... 378,269 374,117 ---------- ---------- Total Liabilities and Stockholders' Equity ................ $ 441,736 $ 440,210 ========== ==========
GSI GROUP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars, except per share amounts)
Three Months Ended ----------------------------------- March 28, 2008 March 30, 2007 -------------- -------------- Sales ........................................................... $ 71,680 $ 74,204 Cost of goods sold .............................................. 44,353 44,769 -------------- -------------- Gross profit .................................................... 27,327 29,435 Operating expenses: Research and development and engineering .................. 7,875 7,657 Selling, general, administrative and other ................ 16,317 13,939 Amortization of purchased intangibles ..................... 1,679 1,729 Restructuring expense (benefit) ........................... (317) 2,353 -------------- -------------- Total operating expenses ............................ 25,554 25,678 -------------- -------------- Income from operations .......................................... 1,773 3,757 Other income (expense) .................................... 121 47 Interest income ........................................... 1,166 1,545 Interest expense .......................................... (18) (57) Foreign exchange transaction (losses) gains ............... 59 (371) -------------- -------------- Income before income taxes ...................................... 3,101 4,921 Income tax provision ............................................ 994 1,721 -------------- -------------- Net income ...................................................... $ 2,107 $ 3,200 ============== ============== Net income per common share: Basic ..................................................... $ 0.05 $ 0.08 Diluted ................................................... $ 0.05 $ 0.08 Weighted average common shares outstanding (000's) .............. 41,972 42,001 Weighted average common shares outstanding for diluted net income per common share (000's) ..................................... 42,204 42,252
GSI GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars)
Three Months Ended ------------------------------------ March 28, 2008 March 30, 2007 -------------- -------------- Cash flows from operating activities: Net income for the year ............................................. $ 2,107 $ 3,200 Adjustments to reconcile net income to net cash provided by operating activities: Earnings from equity investment ............................... (106) (47) Depreciation and amortization ................................. 3,867 4,124 Unrealized loss on derivatives ................................ 14 53 Stock-based compensation ...................................... 790 329 Deferred income taxes ......................................... (53) 15 Changes in current assets and liabilities: Accounts receivable ........................................... 557 (5,107) Inventories ................................................... (870) 1,529 Other current assets .......................................... 290 6,010 Accounts payable, accruals and taxes receivable ............... (2,660) (2,173) -------------- -------------- Cash provided by operating activities ............................... 3,936 7,933 Cash flows (used in) from investing activities: Other additions to property, plant and equipment .............. (4,202) (1,842) Other disposals to property, plant and equipment .............. -- 54 Increase in other assets ...................................... (338) (2) Decrease in other liabilities ................................. 501 18 -------------- -------------- Cash (used in) from investing activities ............................ (4,039) (1,772) Cash flows from (used in) financing activities: Purchase of treasury stock .................................... (3,113) (474) Excess tax benefit of stock options ........................... -- 54 Issue of share capital (net of issue costs) ................... 18 3,233 -------------- -------------- Cash provided by (used in) financing activities ..................... (3,095) 2,813 Effect of exchange rates on cash and cash equivalents ............... 2,136 147 -------------- -------------- Increase (decrease) in cash and cash equivalents .................... (1,062) 9,121 Cash and cash equivalents, beginning of period ...................... 171,714 138,315 -------------- -------------- Cash and cash equivalents, end of period ............................ $ 170,652 $ 147,436 ============== ==============
GSI GROUP INC. Consolidated Analysis By Segment (unaudited) (thousands of U.S. dollars) Three Months Ended March 28, March 30, 2008 2007 ------------ ------------ Sales: Precision Technology Business .... $ 44,035 $ 43,625 Semiconductor Systems Business ... 28,767 31,857 Intersegment sales elimination (1) (1,122) (1,278) ------------ ------------ Total ............................ $ 71,680 $ 74,204 ============ ============ Gross profit %: Precision Technology Business .... 38.4% 35.9% Semiconductor Systems Business ... 36.0% 43.6% Intersegment sales elimination ... (6.2%) 8.2% Total ............................ 38.1% 39.7% (1) Sales of Precision Technology products to Semiconductor segment Consolidated Sales Analysis By Geographic Region (unaudited)
Three Months Ended ------------------------------------------------------------------- March 28, 2008 March 30, 2007 ------------------------------- ------------------------------- % of % of Sales Total Sales Total ------------ ------------ ------------ ------------ North America ......... $ 31.9 45% $ 24.1 32% Latin and South America 0.1 -- 0.2 -- Europe (EMEA) ......... 12.3 17 12.8 17 Japan ................. 12.8 18 13.8 19 Asia-Pacific, other ... 14.6 20 23.2 32 ------------ ------------ ------------ ------------ Total .............. $ 71.7 100% $ 74.2 100% ============ ============ ============ ============
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