RofinSinar Technologies Inc. (RSTI) filed Annual Report for the period ended 2009-09-30.
Rofin-Sinar Technologies designs, develops, engineers, manufactures and markets laser products for cutting, welding and marking a wide range of industrial materials. Through its global manufacturing, distribution and service network, the company provides a comprehensive range of laser solutions to three principal target markets for material processing lasers: the machine tool, automotive, and semiconductor/electronics industries. Rofinsinar Technologies Inc. has a market cap of $674.2 million; its shares were traded at around $23.32 with a P/E ratio of 75.2 and P/S ratio of 1.9. Rofinsinar Technologies Inc. had an annual average earning growth of 24.1% over the past 5 years.
Highlight of Business Operations:
Based on the revised 2008 industry data of the Optoelectronics Report for laser products used for macro (cutting and welding) applications and marking and micro (fine cutting, fine welding, perforating and structuring) applications combined, the Company had a worldwide market share (based on sales volume) in 2008 of approximately 23%. Due to the severe global economic downturn there are no reliable industry forecasts available for 2009 to calculate market share. The Company has sold more than 49,000 laser sources since 1975 and currently has over 3,000 active customers (including multinational companies with multiple facilities purchasing from the Company). During fiscal 2009, 2008, and 2007, approximately 40%, 41%, and 43%, respectively, of the Company’s revenues related to sales of laser products for macro applications, approximately 12%, 10%, and 9% respectively, related to sales of components, and approximately 48%, 49%, and 48%, respectively, related to sales of laser products for marking and micro applications.
Through its global manufacturing, distribution and service network, the Company provides a comprehensive range of laser sources and laser-based system solutions to the following principal target markets: the machine tool, automotive, the semiconductor, electronics, and photovoltaic industries. The Company sells directly to end-users and to original equipment manufacturers (“OEMs”) (principally in the machine tool industry) that integrate Rofin’s laser sources with other system components. Many of Rofin’s customers are among the largest global participants in their respective industries. During fiscal 2009, 2008, and 2007, 20%, 25%, and 23%, respectively, of the Company’s sales were in North America, 57%, 51%, and 55%, respectively, were in Europe, and 23%, 24%, and 22%, respectively, were in Asia. See Note 15, “Geographic Information”, to the consolidated financial statements for further information.
On December 9, 2004, the Company purchased an additional 5% of the share capital of Rofin-Sinar U.K. Ltd. (“RS UK”) through Rofin-Sinar Technologies Europe S.L. (“RSTE”) under an option agreement between the Company and the minority shareholders. The Company held 76% of the share capital as a result of this purchase. On December 2, 2005, the Company purchased an additional 4% of the share capital of RS UK through RSTE under this option agreement. The Company held 80% of the share capital of RS UK as a result of this purchase. This purchase resulted in goodwill of $0.5 million. On December 2, 2006, the Company purchased an additional 1% of the share capital of RS UK through RSTE under this option agreement. This purchase resulted in goodwill of $0.2 million. Finally, effective December 3, 2007, the Company purchased the remaining 19% of the share capital of RS UK through RSTE under this option. The Company now holds 100% of the share capital of RS UK. This purchase resulted in goodwill of $5.6 million.
On March 23, 2006, the Company acquired 40% of the share capital of H2B Photonics GmbH, Garbsen (Germany) through its wholly owned subsidiary Carl Baasel Lasertechnik GmbH & Co. KG (“CBL”). H2B Photonics GmbH specializes in the development, manufacturing and sales of laser-based systems used to cut brittle materials, such as glass, to produce perfectly cut edges. Effective May 14, 2007, the Company purchased an additional 45% of the share capital of H2B Photonics GmbH, Garbsen (Germany) through CBL. The Company currently holds 85% of the share capital of H2B Photonics GmbH. This purchase resulted in goodwill of approximately $0.1 million.
Effective February 28, 2007, the Company acquired 80% of the common stock of m2k-laser GmbH, Freiburg (Germany), through its wholly-owned subsidiary Rofin-Sinar Laser GmbH. m2k-laser GmbH develops and manufactures semiconductor lasers based on the III-V compounds GaAs and GaSb for use predominantly in the scientific industry. Additionally, the parties have agreed on a put/call option exercisable beginning in 2012 for the remaining 20% of the common stock. Accordingly, the Company’s financial statements present m2k-laser GmbH as if it was 100%-owned. This purchase resulted in goodwill of approximately $0.6 million.
RSTI is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
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