Electro Scientific Industries Inc. (ESIO, Financial) filed Quarterly Report for the period ended 2010-07-03.
Electro Scientific Industries Inc. has a market cap of $302.2 million; its shares were traded at around $10.86 with and P/S ratio of 2. ESIO is in the portfolios of David Nierenberg of D3 Family of Funds, Third Avenue Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Net operating expenses of $23.1 million in the first quarter of 2011 decreased $0.2 million compared to the prior quarter. This decrease was primarily due to acquisition settlement proceeds of $0.9 million received in the first quarter of 2011 and a decrease of $0.4 million in depreciation expense, partially offset by a $1.2 million increase in share-based compensation expense. Share-based compensation expense increased primarily due to immediate vesting of annual board of director share grants and annual employee grants.
Operating loss was $1.6 million in the first quarter of 2011, a decrease of $4.0 million compared to operating income of $2.4 million in the prior quarter. The decrease was primarily due to lower gross profit.
At July 3, 2010, our principal sources of liquidity were cash and cash equivalents of $54.2 million, short-term investments of $114.9 million and accounts receivable of $33.5 million. We also held $10.8 million in restricted cash as collateral for commercial letters of credit. Our current ratio was 6.7 and we held no long-term debt. Working capital of $257.5 million was up slightly compared to the April 3, 2010 balance of $253.7 million.
Net cash flows provided by operating activities totaled $14.8 million for the quarter ended July 3, 2010 due to net income of $0.2 million, non-cash items totaling $3.1 million and $11.5 million from net reductions within working capital. The primary sources of cash from working capital reductions consisted of $5.5 million from decreases in trade receivables, $3.9 million from net decreases in inventories, and $3.8 million from increases in accounts payable and accrued liabilities, partially offset by decreases in deferred revenue of $2.7 million.
For the quarter ended July 3, 2010, net cash used in investing activities of $0.2 million was due to the purchase of securities of $81.3 million, purchases of property, plant and equipment of $1.3 million, and increases in other assets of $0.2 million, partially offset by $82.6 million in proceeds from maturities of securities. Net cash provided by financing activities of $0.1 million was primarily due to excess tax benefit on share-based compensation, partially offset by net cash used in stock plan activity.
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Electro Scientific Industries Inc. has a market cap of $302.2 million; its shares were traded at around $10.86 with and P/S ratio of 2. ESIO is in the portfolios of David Nierenberg of D3 Family of Funds, Third Avenue Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales of $58.5 million for the first quarter of 2011 decreased $1.1 million compared to $59.6 million for the prior quarter. The sequential decrease in net sales reflects lower IMG sales, following shipment of the large order received in the third quarter of 2010, largely offset by increased sales in many of our other key markets in the first quarter of 2011. Sales for our SG products increased $13.4 million as we were able to meet the near term capacity requirements of our memory repair customers. PCG sales increased $8.7 million due to significant prior quarter backlog as MLCC customers expand capacity. IMG sales decreased $23.2 million due to the shipment of a large order in the prior quarter.Net operating expenses of $23.1 million in the first quarter of 2011 decreased $0.2 million compared to the prior quarter. This decrease was primarily due to acquisition settlement proceeds of $0.9 million received in the first quarter of 2011 and a decrease of $0.4 million in depreciation expense, partially offset by a $1.2 million increase in share-based compensation expense. Share-based compensation expense increased primarily due to immediate vesting of annual board of director share grants and annual employee grants.
Operating loss was $1.6 million in the first quarter of 2011, a decrease of $4.0 million compared to operating income of $2.4 million in the prior quarter. The decrease was primarily due to lower gross profit.
At July 3, 2010, our principal sources of liquidity were cash and cash equivalents of $54.2 million, short-term investments of $114.9 million and accounts receivable of $33.5 million. We also held $10.8 million in restricted cash as collateral for commercial letters of credit. Our current ratio was 6.7 and we held no long-term debt. Working capital of $257.5 million was up slightly compared to the April 3, 2010 balance of $253.7 million.
Net cash flows provided by operating activities totaled $14.8 million for the quarter ended July 3, 2010 due to net income of $0.2 million, non-cash items totaling $3.1 million and $11.5 million from net reductions within working capital. The primary sources of cash from working capital reductions consisted of $5.5 million from decreases in trade receivables, $3.9 million from net decreases in inventories, and $3.8 million from increases in accounts payable and accrued liabilities, partially offset by decreases in deferred revenue of $2.7 million.
For the quarter ended July 3, 2010, net cash used in investing activities of $0.2 million was due to the purchase of securities of $81.3 million, purchases of property, plant and equipment of $1.3 million, and increases in other assets of $0.2 million, partially offset by $82.6 million in proceeds from maturities of securities. Net cash provided by financing activities of $0.1 million was primarily due to excess tax benefit on share-based compensation, partially offset by net cash used in stock plan activity.
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