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FEI Company Finalizes Financial Statements and Files Form 10-K
HILLSBORO, Ore., Feb 29, 2008 (BUSINESS WIRE) --
FEI Company (Nasdaq:FEIC) filed its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission today. The Form 10-K reports that the company's annual revenue for 2007 was $592.5 million and its fourth quarter revenue was $150.2 million. Both totals are $2.3 million lower than the preliminary results released by the company on February 4, 2008. Net income was $57.9 million or $1.35 per diluted share for the year and $15.6 million or $0.36 per diluted share for the fourth quarter. Those results are $1.6 million or $0.04 per share below the preliminary results. The revised financial results reflect the company's determination, during the completion of its financial statements, that $1.3 million of revenue related to a limited number of transactions involving multiple deliverables should be deferred and that service revenue should be adjusted downward by $1.0
million. The company anticipates recognizing the $1.3 million in revenue from transactions involving multiple deliverables in 2008. Balance sheets, statements of operations and supplemental information consistent with the Form 10-K filing are attached to this press release. About FEI FEI (Nasdaq:FEIC) is a global leader in providing innovative instruments for nanoscale imaging, analysis and prototyping. FEI focuses on delivering solutions that provide groundbreaking results and accelerate research, development and manufacturing cycles for its customers in semiconductor and data storage, academic and industrial R&D and life sciences markets. With R&D centers in North America and Europe, and sales and service operations in more than 50 countries around the world, FEI's Tools for Nanotech(TM) are bringing the nanoscale within the grasp of leading researchers and
manufacturers. More information can be found online at: www.fei.com. Safe Harbor Statement This news release contains forward-looking statements that include expectations for some revenue to be recognized in 2008 instead of 2007. Factors that could affect these forward-looking statements include, but are not limited to, delays in shipping products for technical performance, component supply or other reasons, as well as potential changes in shipment plans requested by customers from whom the company has purchase orders. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update
forward-looking statements.
FEI Company and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
December SeptemberDecember
31, 30, 31,
ASSETS 2007 2007 2006
----------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 280,593 $222,419$110,656
Short-term investments in marketable
securities 152,041 198,362 234,202
Short-term restricted cash 20,984 12,973 20,172
Receivables 157,120 176,468 144,955
Inventories 138,762 137,243 97,470
Deferred tax assets 4,788 4,996 4,386
Other current assets 36,273 40,941 33,474
----------------------------
Total current assets 790,561 793,402 645,315
Non-current investments in marketable
securities 12,758 12,708 34,900
Long-term restricted cash 24,621 9,298 6,131
Non-current service inventories 42,168 41,134 37,920
Property plant and equipment, net 74,700 68,083 60,394
Purchased technology, net 2,862 3,268 4,494
Goodwill 40,864 40,875 40,900
Deferred tax assets 2,641 9,479 542
Other assets, net 16,834 19,141 7,483
----------------------------
TOTAL $1,008,009 $997,388$838,079
============================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 31,156 $ 50,083$ 45,118
Accrued payroll liabilities 26,115 26,212 20,736
Accrued warranty reserves 6,585 6,902 5,716
Accrued agent commissions 9,119 6,871 6,175
Deferred revenue 60,681 61,564 48,992
Income taxes payable 3,106 6,987 9,203
Accrued restructuring, reorganization
and relocation 580 598 2,439
Current portion of convertible debt 195,882 45,882 -
Other current liabilities 29,266 31,241 29,276
----------------------------
Total current liabilities 362,490 236,340 167,655
Convertible debt 115,000 265,000 310,882
Deferred tax liabilities 4,479 4,204 4,062
Other liabilities 38,646 35,119 5,572
SHAREHOLDERS' EQUITY:
Preferred stock - 500 shares authorized;
none issued and outstanding - - -
Common stock - 70,000 shares authorized;
36,405, 36,252 and 34,052 shares issued
and outstanding at December 31, 2007,
September 30, 2007 and December 31,
2006 395,904 390,168 348,479
Retained earnings (accumulated deficit) 26,398 10,533 (36,041)
Accumulated other comprehensive income 65,092 56,024 37,470
----------------------------
Total shareholders' equity 487,394 456,725 349,908
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TOTAL $1,008,009 $997,388$838,079
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FEI Company and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Thirteen Weeks Ended Year Ended
----------------------------- -------------------
December September December December December
31, 30, 31, 31, 31,
2007 2007 2006 2007 2006
--------- --------- --------- --------- ---------
NET SALES:
Products $117,938 $113,565 $107,822 $465,088 $360,643
Service and
components 32,270 32,223 32,462 127,422 118,848
--------- --------- --------- --------- ---------
Total net
sales 150,208 145,788 140,284 592,510 479,491
--------- --------- --------- --------- ---------
COST OF SALES:
Products 65,995 61,249 58,499 252,546 197,742
Service and
components 24,525 23,307 22,880 93,544 85,303
--------- --------- --------- --------- ---------
Total cost of
sales 90,520 84,556 81,379 346,090 283,045
--------- --------- --------- --------- ---------
Gross profit 59,688 61,232 58,905 246,420 196,446
--------- --------- --------- --------- ---------
OPERATING EXPENSES:
Research and
development 18,159 16,414 16,112 66,042 57,528
Selling, general
and
administrative 33,499 30,915 28,508 124,160 100,279
Amortization of
purchased
technology 450 444 438 1,777 2,034
Merger costs - - - - 484
Restructuring,
reorganization
and relocation 132 - (27) (272) 12,609
Asset impairment - - - - 465
--------- --------- --------- --------- ---------
Total
operating
expenses 52,240 47,773 45,031 191,707 173,399
--------- --------- --------- --------- ---------
OPERATING INCOME 7,448 13,459 13,874 54,713 23,047
--------- --------- --------- --------- ---------
OTHER INCOME
(EXPENSE):
Interest income 6,498 5,902 4,154 22,372 13,150
Interest expense (2,444) (2,218) (2,110) (8,735) (7,355)
Gain on investment
disposals and
impairment, net - 511 - 1,167 -
Other expense, net (230) (1,034) (538) (3,492) (723)
--------- --------- --------- --------- ---------
Total other
income, net 3,824 3,161 1,506 11,312 5,072
--------- --------- --------- --------- ---------
INCOME FROM
CONTINUING
OPERATIONS BEFORE
TAXES 11,272 16,620 15,380 66,025 28,119
INCOME TAX EXPENSE
(BENEFIT) (4,331) 3,236 3,481 8,077 10,467
--------- --------- --------- --------- ---------
INCOME FROM
CONTINUING
OPERATIONS 15,603 13,384 11,899 57,948 17,652
DISCONTINUED
OPERATIONS:
Gain (loss) from
discontinued
operations - - (580) - (947)
Gain on disposal,
net of income
taxes 263 - 3,335 390 3,335
--------- --------- --------- --------- ---------
INCOME FROM
DISCONTINUED
OPERATIONS 263 - 2,755 390 2,388
--------- --------- --------- --------- ---------
NET INCOME $ 15,866 $ 13,384 $ 14,654 $ 58,338 $ 20,040
========= ========= ========= ========= =========
BASIC NET INCOME PER
SHARE DATA:
From continuing
operations $ 0.43 $ 0.37 $ 0.35 $ 1.62 $ 0.52
========= ========= ========= ========= =========
From discontinued
operations $ 0.01 $ 0.00 $ 0.08 $ 0.01 $ 0.07
========= ========= ========= ========= =========
DILUTED NET INCOME
PER SHARE DATA:
From continuing
operations $ 0.36 $ 0.31 $ 0.30 $ 1.35 $ 0.47
========= ========= ========= ========= =========
From discontinued
operations $ 0.01 $ 0.00 $ 0.06 $ 0.01 $ 0.06
========= ========= ========= ========= =========
WEIGHTED AVERAGE
SHARES OUTSTANDING:
Basic 36,323 36,216 33,886 35,709 33,818
========= ========= ========= ========= =========
Diluted 46,477 46,419 44,079 46,254 39,752
========= ========= ========= ========= =========
FEI Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Thirteen Weeks Ended (1) Year Ended (1)
--------------------------- -----------------
December September December December December
31, 30, 31, 31, 31,
2007 2007 2006 2007 2006
-------- --------- -------- -------- --------
NET SALES:
Products 78.5% 77.9% 76.9% 78.5% 75.2%
Service 21.5% 22.1% 23.1% 21.5% 24.8%
-------- --------- -------- -------- --------
Total net
sales 100.0% 100.0% 100.0% 100.0% 100.0%
COST OF SALES:
Products 43.9% 42.0% 41.7% 42.6% 41.2%
Service 16.3% 16.0% 16.3% 15.8% 17.8%
-------- --------- -------- -------- --------
Total cost of
sales 60.3% 58.0% 58.0% 58.4% 59.0%
-------- --------- -------- -------- --------
Gross profit 39.7% 42.0% 42.0% 41.6% 41.0%
-------- --------- -------- -------- --------
OPERATING EXPENSES:
Research and
development 12.1% 11.3% 11.5% 11.1% 12.0%
Selling, general and
administrative 22.3% 21.2% 20.3% 21.0% 20.9%
Amortization of
purchased technology 0.3% 0.3% 0.3% 0.3% 0.4%
Restructuring,
reorganization and
relocation 0.1% 0.0% 0.0% 0.0% 2.6%
Asset impairment 0.0% 0.0% 0.0% 0.0% 0.1%
Merger costs 0.0% 0.0% 0.0% 0.0% 0.0%
-------- --------- -------- -------- --------
Total
operating
expenses 34.8% 32.8% 32.1% 32.4% 36.2%
-------- --------- -------- -------- --------
OPERATING INCOME 5.0% 9.2% 9.9% 9.2% 4.8%
-------- --------- -------- -------- --------
OTHER INCOME (EXPENSE):
Interest income 4.3% 4.0% 3.0% 3.8% 2.7%
Interest expense -1.6% -1.5% -1.5% -1.5% -1.5%
Gain on investment
disposals and
impairment, net 0.0% 0.4% 0.0% 0.2% 0.0%
Other expense, net -0.2% -0.7% -0.4% -0.6% -0.2%
-------- --------- -------- -------- --------
Total other expense, net 2.5% 2.2% 1.1% 1.9% 1.1%
-------- --------- -------- -------- --------
INCOME FROM CONTINUING
OPERATIONS BEFORE TAXES 7.5% 11.4% 11.0% 11.1% 5.9%
-------- --------- -------- -------- --------
INCOME TAX EXPENSE
(BENEFIT) -2.9% 2.2% 2.5% 1.4% 2.2%
-------- --------- -------- -------- --------
INCOME FROM CONTINUING
OPERATIONS 10.4% 9.2% 8.5% 9.8% 3.7%
-------- --------- -------- -------- --------
DISCONTINUED OPERATIONS:
Loss from discontinued
operations 0.0% 0.0% -0.4% 0.0% -0.2%
Gain on disposal, net
of income taxes 0.2% 0.0% 2.4% 0.1% 0.7%
-------- --------- -------- -------- --------
INCOME FROM DISCONTINUED
OPERATIONS 0.2% 0.0% 2.0% 0.1% 0.5%
-------- --------- -------- -------- --------
NET INCOME 10.6% 9.2% 10.4% 9.8% 4.2%
-------- --------- -------- -------- --------
(1) Percentages may not add due to rounding.
FEI COMPANY
Supplemental Data Table 1
($ in millions, except per share amounts)
(Unaudited)
----------------------------------------------------------------------
Q4 Ended Q3 Ended Q4 Ended
12/31/2007 9/30/2007 12/31/2006
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Income Statement Highlights
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Consolidated sales $ 150.2 $ 145.8 $ 140.3
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Gross margin 39.7% 42.0% 42.0%
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R&D spending $ 18.2 $ 16.4 $ 16.1
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R&D (% of sales) 12.1% 11.3% 11.5%
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SG&A $ 33.5 $ 30.9 $ 28.5
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SG&A (% of sales) 22.3% 21.2% 20.3%
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Stock compensation expense - COGS$ 0.4 $ 0.2 $ 0.2
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Stock compensation expense - R&D $ 0.3 $ 0.3 $ 0.2
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Stock compensation expense - SG&A$ 1.5 $ 0.7 $ 1.4
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Net income from continuing
operations $ 15.6 $ 13.4 $ 11.9
----------------------------------------------------------------------
Net income from discontinued
operations $ 0.3 $ 0.0 $ 2.8
----------------------------------------------------------------------
Net income $ 15.9 $ 13.4 $ 14.7
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Diluted earnings per share from
continuing operations $ 0.36 $ 0.31 $ 0.30
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Diluted earnings per share from
discontinued operations $ 0.01 $ 0.00 $ 0.06
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Interest income add back included
in the calculation of diluted
EPS $ 1.2 $ 1.2 $ 1.2
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Sales by Market Segment
----------------------------------------------------------------------
NanoElectronics $ 33.0 $ 48.1 $ 42.4
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NanoResearch & Industry $ 67.8 $ 51.6 $ 55.3
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NanoBiology $ 17.1 $ 13.9 $ 10.1
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Service and Components $ 32.3 $ 32.2 $ 32.5
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Sales by Geography
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North America $ 63.2 $ 46.5 $ 49.9
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Europe $ 63.8 $ 61.5 $ 52.2
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Asia Pacific $ 23.2 $ 37.8 $ 38.2
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Bookings
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Total $ 156.3 $ 153.3 $ 171.7
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Book-to-bill ratio 1.04 1.05 1.22
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Backlog - total $ 310.8 $ 305.7 $ 305.9
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Backlog - Service and Components $ 54.7 $ 58.5 $ 46.8
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Bookings by Market Segment
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NanoElectronics $ 39.6 $ 28.8 $ 49.7
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NanoResearch & Industry $ 63.2 $ 80.2 $ 65.1
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NanoBiology $ 24.0 $ 11.2 $ 23.9
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Service and Components $ 29.5 $ 33.1 $ 33.0
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Balance Sheet Highlights
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Cash, equivalents, investments,
restricted cash $ 491.0 $ 455.8 $ 406.1
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Operating cash generated (used) $ 34.8 $ 11.4 $ 24.4
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Accounts receivable $ 157.1 $ 176.5 $ 145.0
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Days sales outstanding (DSO) 95 110 94
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Inventory turnover 2.6 2.6 3.5
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Inventories $ 138.8 $ 137.2 $ 97.5
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Property, plant and equipment $ 74.7 $ 68.1 $ 60.4
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Fixed asset investment (during
quarter) $ 7.3 $ 5.1 $ 2.1
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Depreciation expense $ 3.8 $ 3.4 $ 3.3
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Current liabilities $ 362.5 $ 236.3 $ 167.7
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Working capital $ 428.1 $ 557.1 $ 477.7
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Shareholders' equity $ 487.4 $ 456.7 $ 349.9
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Headcount (permanent and
temporary) 1,866 1,851 1,683
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SOURCE: FEI Company FEI Company
Fletcher Chamberlin, Investor Relations, 503-726-7710
fletcher.chamberlin@fei.com
Copyright Business Wire 2008
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