BTU International Inc. (BTUI, Financial) filed Quarterly Report for the period ended 2010-07-04.
Btu International Inc. has a market cap of $50 million; its shares were traded at around $5.4 with and P/S ratio of 1.1. BTUI is in the portfolios of Chuck Royce of Royce& Associates.
Selling, General and Administrative (SG&A). SG&A second quarter expenses in 2010 versus the second quarter of 2009 increased by $0.4 million or 9.8% from $4.8 million to $5.2 million. SG&A expenses for the first six months of 2010 versus the same period in 2009 increased by $2.1 million or 23.9% from $8.7 million to $10.8 million. For both the second quarter and the first six months of 2010 as compared to the respective periods in 2009, the SG&A increase occurred primarily in commission expense resulting from increased revenue in 2010 versus 2009.
Research, Development and Engineering (RD&E). RD&E expenses decreased by $0.3 million or 17.9% from $1.9 million in the second quarter of 2009 to $1.6 million in the second quarter of 2010. RD&E expenses decreased by $0.7 million or 17.5% to $3.2 million for the first six months of 2010 as compared to $3.9 million for the same period in 2009. The reductions are the result of the Companys actions to reduce R&D prototype model costs, as new products were introduced.
Foreign Exchange loss. The foreign exchange gain in the second quarter of 2010 was $40,000 as compared to a loss of $177,000 in the second quarter of 2009. For the first six months of 2010 the foreign exchange gain was $106,000 as compared to a loss of $235,000 for the same period in 2009. The Companys primary exposure to foreign exchange losses result from U.S. dollar denominated balance sheet accounts recorded at the Companys China and UK operations and China RMB denominated balance sheet accounts recorded at the Companys U.S. headquarters.
Income Taxes. During the three and six months ended July 4, 2010, we recorded an income tax provision of approximately $564,000 and $701,000, respectively as compared to $198,000 and $181,000 respectively for the three and six months ended June 28, 2009. The Companys income tax provision primarily relates to income and withholding taxes related to our China operations.
During the six months ended July 4, 2010, the Company used net cash of approximately $5.7 million from operating activities. This use of cash was primarily the result of an increase in accounts receivable of $6.1 million, a reduction in customer deposits of $2.5 million, a decrease in accrued expenses of $0.7 million; offset by depreciation and amortization of $1.1 million, an increase in accounts payable of $1.0 million, stock based compensation of $0.6, and a decrease in net inventory of $1.0 million.
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Btu International Inc. has a market cap of $50 million; its shares were traded at around $5.4 with and P/S ratio of 1.1. BTUI is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales for the first six months 2010 versus the same period in 2009 increased by $14.6 million or 70.9%. For the Companys electronic market systems, sales increased by $11.0 million or 155.5%; for alternative energy systems, sales increased by $3.8 million or 36.7%. Parts, service and other market systems decreased by $0.2 million. The Companys six month 2010 alternative energy systems sales growth versus the same period in 2009 is the result of increased revenue for both nuclear and solar products. The substantial growth in the first six months of 2010, as compared to the same period in 2009, for the Companys electronic market systems revenue, particularly in China, represents the continuing recovery of demand for our electronic products from the economic recession.Selling, General and Administrative (SG&A). SG&A second quarter expenses in 2010 versus the second quarter of 2009 increased by $0.4 million or 9.8% from $4.8 million to $5.2 million. SG&A expenses for the first six months of 2010 versus the same period in 2009 increased by $2.1 million or 23.9% from $8.7 million to $10.8 million. For both the second quarter and the first six months of 2010 as compared to the respective periods in 2009, the SG&A increase occurred primarily in commission expense resulting from increased revenue in 2010 versus 2009.
Research, Development and Engineering (RD&E). RD&E expenses decreased by $0.3 million or 17.9% from $1.9 million in the second quarter of 2009 to $1.6 million in the second quarter of 2010. RD&E expenses decreased by $0.7 million or 17.5% to $3.2 million for the first six months of 2010 as compared to $3.9 million for the same period in 2009. The reductions are the result of the Companys actions to reduce R&D prototype model costs, as new products were introduced.
Foreign Exchange loss. The foreign exchange gain in the second quarter of 2010 was $40,000 as compared to a loss of $177,000 in the second quarter of 2009. For the first six months of 2010 the foreign exchange gain was $106,000 as compared to a loss of $235,000 for the same period in 2009. The Companys primary exposure to foreign exchange losses result from U.S. dollar denominated balance sheet accounts recorded at the Companys China and UK operations and China RMB denominated balance sheet accounts recorded at the Companys U.S. headquarters.
Income Taxes. During the three and six months ended July 4, 2010, we recorded an income tax provision of approximately $564,000 and $701,000, respectively as compared to $198,000 and $181,000 respectively for the three and six months ended June 28, 2009. The Companys income tax provision primarily relates to income and withholding taxes related to our China operations.
During the six months ended July 4, 2010, the Company used net cash of approximately $5.7 million from operating activities. This use of cash was primarily the result of an increase in accounts receivable of $6.1 million, a reduction in customer deposits of $2.5 million, a decrease in accrued expenses of $0.7 million; offset by depreciation and amortization of $1.1 million, an increase in accounts payable of $1.0 million, stock based compensation of $0.6, and a decrease in net inventory of $1.0 million.
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