FSI International Inc. (FSII) filed Quarterly Report for the period ended 2010-11-27.
Fsi International Inc. has a market cap of $170 million; its shares were traded at around $4.41 with a P/E ratio of 14.2 and P/S ratio of 1.9. FSII is in the portfolios of Donald Smith of Donald Smith & Co., Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Sales revenues decreased to $10.9 million for the first quarter of fiscal 2011 as compared to $14.6 million for the first quarter of fiscal 2010. The decrease related primarily to the timing of requested shipments by several of our major customers. International sales were $8.3 million, representing 77% of total sales during the first quarter of fiscal 2011 and $7.8 million, representing 54% of total sales, during the first quarter of fiscal 2010.
Our cash, restricted cash, cash equivalents and marketable securities were approximately $34.4 million as of November 27, 2010, a decrease of $3.9 million from the end of fiscal 2010. The decrease was primarily due to $3.8 million of net cash used for operations and $0.5 million of capital expenditures.
Accounts receivable decreased $4.6 million from the end of fiscal 2010. The decrease in accounts receivable related primarily to a decrease in shipments to $15.6 million in the first quarter of fiscal 2011 as compared to $29.1 million in the fourth quarter of fiscal 2010. Accounts receivable will fluctuate quarter to quarter depending on individual customers timing of shipping dates, payment terms and cash flow conditions. In certain situations, extended payment terms may be granted to customers.
We filed a shelf registration statement with the SEC on March 30, 2010 to register an indeterminate number of shares of common stock, preferred stock, warrants and units, the aggregate initial offering price of which is not to exceed $50 million. On June 14, 2010, we closed on a public offering of 6.2 million shares of our common stock at a public offering price of $3.05 per share. Net proceeds from the sale of the shares, after underwriter discounts and commissions and other offering expenses, were approximately $17.6 million. Following the June 2010 stock offering, we have registered under the shelf registration statement an indeterminate number of shares of common stock, preferred stock, warrants and units with an aggregate initial offering price not to exceed $31 million.
As of November 27, 2010, our investment portfolio included ARS reported at a fair value of $3.6 million after reflecting a $0.2 million other than temporary impairment against $3.8 million par value. The other than temporary impairment was recorded in fiscal 2008. The interest rates of our ARS are reset every 28 days through an auction process and at the end of each reset period, investors can sell or continue to hold the securities at par.
We determined and recorded an other than temporary impairment of approximately $0.4 million as of August 28, 2008. Approximately $0.1 million of this other than temporary impairment was reversed in fiscal 2010 associated with the redemption of approximately $0.9 million ARS at par. Approximately $0.1 million of this other than temporary impairment was reversed in fiscal 2009 associated with the redemption of approximately $3.0 million ARS at par. If the issuers of the ARS are unable to successfully close future auctions or do not redeem the ARS, or the United States government fails to support its guaranty of the obligations, we may be required to record additional impairment charges.
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