RofinSinar Technologies Inc. (RSTI, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $680.56 million; its shares were traded at around $23.54 with a P/E ratio of 29.06 and P/S ratio of 1.18. RofinSinar Technologies Inc. had an annual average earning growth of 24.1% over the past 5 years.
Ended June 30, Ended June 30,
- -
2009 2008 2009 2008
- - - -
Net sales 100% 100% 100% 100%
Cost of goods sold 65% 58% 63% 57%
Gross profit 35% 42% 37% 43%
Selling, general and
administrative expenses 30% 18% 25% 19%
Research and development expenses 11% 7% 10% 7%
Intangibles amortization 1% 1% 1% 1%
Income (loss) from operations (8)% 16% 1% 16%
Income (loss) before income taxes
and minority interest (7)% 16% 3% 16%
Net income (loss) (6)% 11% 2% 10%
Net Sales - Net sales of $76.6 million and $259.1 million represent decreases
of $73.1 million, or 49%, and $161.9 million, or 38%, for the three and nine-
month periods ended June 30, 2009, as compared to the corresponding period in
fiscal 2008. The decrease for the three months ended June 30, 2009, resulted
from a net sales decrease of $51.9 million, or 47%, in Europe and Asia, and a
decrease of $21.2 million, or 53%, in North America, compared to the
corresponding period in fiscal 2008. The decrease for the nine months ended
June 30, 2009, compared to the corresponding period in fiscal 2008, resulted
from a net sales decrease of $115.7 million, or 36%, in Europe and Asia, and
a decrease of $46.2 million, or 46%, in North America. The U.S. dollar
strenghtened against foreign currencies, primarily against the Euro, which
had an unfavorable effect on net sales of $6.9 million and $25.3 million for
the three and nine-month periods ended June 30, 2009.
- 23 -
Net sales of laser products for macro applications decreased by $29.3
million, or 49%, to $31.0 million and by $79.1 million, or 44%, to $102.6
million for the three and nine-month periods ended June 30, 2009, as compared
to the corresponding periods of fiscal 2008. The decrease can be mainly
attributed to the lower demand for our lasers for macro applications in the
machine tool and automotive industry.
Gross Profit - Our gross profit of $26.7 million and $96.6 million for the
three and the nine-month periods ended June 30, 2009, represents decreases of
$36.2 million, or 58%, and $85.6 million, or 47%, from the corresponding
periods of fiscal year 2008. As a percentage of sales, gross profit
decreased from 42% to 35% for the three-month period ended June 30, 2009, and
from 43% to 37% for the nine-month period ended June 30, 2009, as compared to
the corresponding periods in fiscal year 2008. The decrease in our gross
margins was mainly the result of the low level of business with the
corresponding lower absorption of fixed costs, a decrease in our service and
spare parts revenue and in our components business, as well as the additional
costs associated with the headcount reductions amounting to $0.9 million and
$1.0 million during the three and nine month periods ended June 30, 2009.
Gross profit was unfavorably affected by $2.1 million and $7.9 million for
the three and nine-month periods ended June 30, 2009, respectively, due to
the strengthening of the U.S. dollar against foreign currencies, primarily
against the Euro.
Selling, General and Administrative Expenses - Selling, general and
administrative ("SG&A") expenses of $23.2 million and $65.7 million for the
three and nine-month periods ended June 30, 2009, represent decreases of $4.1
million, or 15%, and $13.2 million, or 17%, from the corresponding periods of
fiscal 2008. The decrease in SG&A expenses is mainly a result of cost
reductions in labor, travelling, as well as lower commissions related to the
lower level of revenues, partially offset by additional costs related to
headcount reductions of $1.3 million and $1.8 million for the three and nine
month periods, as well as high unrealized exchange losses resulting from the
revaluation of trade accounts receivables at June 30, 2009. Additionally,
SG&A, a significant portion of which is incurred in foreign currencies, was
favorably affected by $2.2 million and $5.5 million for the three and nine-
month periods ended June 30, 2009, respectively, due to the strengthening of
the U.S. dollar against foreign currencies, primarily the Euro. As a
percentage of net sales, SG&A expenses increased from 18% to 30% and from 19%
to 25% for the three and nine-month periods during the respective periods.
Income Tax Expense - Income tax benefit of $0.8 million and income tax
expense of $2.8 million for the three and nine-month periods ended June 30,
2009, represents an effective tax rate of 14% and 41% for the three and nine-
month periods, compared to 33% for the corresponding periods of the prior
year. The higher overall effective income tax rate is primarily due to
additional State taxes and Federal income taxes related to the repatriation
of foreign income in combination with the low level of taxable income.
Income tax expense, a significant portion of which is incurred in foreign
currencies, was unfavorably affected by $0.2 million and favorably affected
by $0.7 million for the three and nine-month periods ended June 30, 2009, due
to the strengthening of the U.S. dollar against foreign currencies, primarily
the Euro.
Read the The complete ReportRSTI is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
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 $680.56 million; its shares were traded at around $23.54 with a P/E ratio of 29.06 and P/S ratio of 1.18. RofinSinar Technologies Inc. had an annual average earning growth of 24.1% over the past 5 years.
Highlight of Business Operations:
Three Months Nine MonthsEnded June 30, Ended June 30,
- -
2009 2008 2009 2008
- - - -
Net sales 100% 100% 100% 100%
Cost of goods sold 65% 58% 63% 57%
Gross profit 35% 42% 37% 43%
Selling, general and
administrative expenses 30% 18% 25% 19%
Research and development expenses 11% 7% 10% 7%
Intangibles amortization 1% 1% 1% 1%
Income (loss) from operations (8)% 16% 1% 16%
Income (loss) before income taxes
and minority interest (7)% 16% 3% 16%
Net income (loss) (6)% 11% 2% 10%
Net Sales - Net sales of $76.6 million and $259.1 million represent decreases
of $73.1 million, or 49%, and $161.9 million, or 38%, for the three and nine-
month periods ended June 30, 2009, as compared to the corresponding period in
fiscal 2008. The decrease for the three months ended June 30, 2009, resulted
from a net sales decrease of $51.9 million, or 47%, in Europe and Asia, and a
decrease of $21.2 million, or 53%, in North America, compared to the
corresponding period in fiscal 2008. The decrease for the nine months ended
June 30, 2009, compared to the corresponding period in fiscal 2008, resulted
from a net sales decrease of $115.7 million, or 36%, in Europe and Asia, and
a decrease of $46.2 million, or 46%, in North America. The U.S. dollar
strenghtened against foreign currencies, primarily against the Euro, which
had an unfavorable effect on net sales of $6.9 million and $25.3 million for
the three and nine-month periods ended June 30, 2009.
- 23 -
Net sales of laser products for macro applications decreased by $29.3
million, or 49%, to $31.0 million and by $79.1 million, or 44%, to $102.6
million for the three and nine-month periods ended June 30, 2009, as compared
to the corresponding periods of fiscal 2008. The decrease can be mainly
attributed to the lower demand for our lasers for macro applications in the
machine tool and automotive industry.
Gross Profit - Our gross profit of $26.7 million and $96.6 million for the
three and the nine-month periods ended June 30, 2009, represents decreases of
$36.2 million, or 58%, and $85.6 million, or 47%, from the corresponding
periods of fiscal year 2008. As a percentage of sales, gross profit
decreased from 42% to 35% for the three-month period ended June 30, 2009, and
from 43% to 37% for the nine-month period ended June 30, 2009, as compared to
the corresponding periods in fiscal year 2008. The decrease in our gross
margins was mainly the result of the low level of business with the
corresponding lower absorption of fixed costs, a decrease in our service and
spare parts revenue and in our components business, as well as the additional
costs associated with the headcount reductions amounting to $0.9 million and
$1.0 million during the three and nine month periods ended June 30, 2009.
Gross profit was unfavorably affected by $2.1 million and $7.9 million for
the three and nine-month periods ended June 30, 2009, respectively, due to
the strengthening of the U.S. dollar against foreign currencies, primarily
against the Euro.
Selling, General and Administrative Expenses - Selling, general and
administrative ("SG&A") expenses of $23.2 million and $65.7 million for the
three and nine-month periods ended June 30, 2009, represent decreases of $4.1
million, or 15%, and $13.2 million, or 17%, from the corresponding periods of
fiscal 2008. The decrease in SG&A expenses is mainly a result of cost
reductions in labor, travelling, as well as lower commissions related to the
lower level of revenues, partially offset by additional costs related to
headcount reductions of $1.3 million and $1.8 million for the three and nine
month periods, as well as high unrealized exchange losses resulting from the
revaluation of trade accounts receivables at June 30, 2009. Additionally,
SG&A, a significant portion of which is incurred in foreign currencies, was
favorably affected by $2.2 million and $5.5 million for the three and nine-
month periods ended June 30, 2009, respectively, due to the strengthening of
the U.S. dollar against foreign currencies, primarily the Euro. As a
percentage of net sales, SG&A expenses increased from 18% to 30% and from 19%
to 25% for the three and nine-month periods during the respective periods.
Income Tax Expense - Income tax benefit of $0.8 million and income tax
expense of $2.8 million for the three and nine-month periods ended June 30,
2009, represents an effective tax rate of 14% and 41% for the three and nine-
month periods, compared to 33% for the corresponding periods of the prior
year. The higher overall effective income tax rate is primarily due to
additional State taxes and Federal income taxes related to the repatriation
of foreign income in combination with the low level of taxable income.
Income tax expense, a significant portion of which is incurred in foreign
currencies, was unfavorably affected by $0.2 million and favorably affected
by $0.7 million for the three and nine-month periods ended June 30, 2009, due
to the strengthening of the U.S. dollar against foreign currencies, primarily
the Euro.
Read the The complete ReportRSTI is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
