Flow International Announces Third Quarter Results
Second Quarter of Sequential Revenue Growth
KENT, Wash., March 9 /PRNewswire-FirstCall/ -- Flow International Corporation (Nasdaq: FLOW), the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, today reported results for its fiscal 2010 third quarter ended January 31, 2010.
For the quarter, Flow reported consolidated revenues of $45.4 million, a sequential increase of 8% compared to $42.0 million in the fiscal 2010 second quarter. This follows the previously reported 11% sequential revenue growth in the second quarter compared to first quarter of fiscal 2010. Revenue in the year-ago third quarter was $48.7 million.
The Company reported a fiscal 2010 third quarter GAAP net loss of $0.7 million or a loss of $0.02 per share, which includes a non-cash charge of $1.3 million for foreign currency adjustments primarily related to the liquidation of two dormant subsidiaries. Excluding these adjustments and the related tax effects, as well as the results of discontinued operations, pro forma net loss for the quarter was $0.3 million or $0.01 per share. This compares to a pro forma net loss of $0.2 million in the fiscal 2009 third quarter, which excludes non-recurring charges of $32.3 million related to a patent litigation settlement, a goodwill impairment charge, and severance expenses, as well as the related tax effects and the results of discontinued operations. As reported, including the above items, the year-ago quarter GAAP net loss was $21.4 million or $0.57 per share.
"This represents the second quarter of sequential growth in our revenue, and it was led by the strengthening of our Standard systems business," said Charley Brown, President and CEO of Flow. "While we feel that our business is stabilizing, we expect that, until the overall macroeconomic environment significantly improves, this stability will represent historically low levels."
Operations Review
For the fiscal 2010 third quarter:
- Standard Segment sales, which include sales of systems that do not require significant custom configuration as well as parts and services for those installed systems, were $37.0 million, an increase of $5.6 million or 18% sequentially from the fiscal year 2010 second quarter and a decrease of $4.2 million or 10% from the prior-year quarter.
- Advanced Segment sales, which include sales of complex aerospace and automation systems requiring specific custom configuration and advanced features as well as parts and services for those installed systems, were $8.3 million for the quarter as expected, a sequential decrease of $2.3 million or 22% from the fiscal year 2010 second quarter and an increase of $0.9 million or 12% from the prior-year quarter.
- Aggregate gross margin was 40.2% for the quarter, an increase from gross margin of 39.6% in the fiscal 2010 second quarter and 39.3% gross margin in the prior-year quarter.
- Total overall operating expenses for the quarter were $18.5 million. That compares to $18.7 million in the prior-year quarter, excluding $32.3 million in restructuring, impairment, and other operating charges, and to $16.9 million in the fiscal 2010 second quarter, excluding the $0.6 million gain recognized on the sale of the building in Taiwan. The fiscal 2010 third quarter includes increased costs associated with the implementation of Flow's Enterprise Resource Planning system and related depreciation and amortization, and the partial reinstatement of the temporary wage reductions and employee benefits that had previously been suspended since the fourth quarter of fiscal 2009.
Conference Call
Flow plans to hold a conference call to discuss these results today: Tuesday, March 9th at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The conference call may be heard by dialing 877-303-6620 or 224-357-2202. A 48-hour replay will be available following the call by dialing 800-642-1687 or 706-645-9291; the replay passcode is 60348022. A live audio Webcast of the conference call may be found in the investor section at www.flowcorp.com. A Webcast replay of the call will also be available for two weeks.
About Flow International
Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet cutting technology to industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit www.flowcorp.com.
This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward-looking. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on a number of risk factors, including those set forth in the Company's filings with the Securities and Exchange Commission. Forward- looking statements in this press release include, without limitation, statements regarding sequential growth in revenue and stabilizing revenue. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.
Contact: |
|
Flow Investor Relations |
|
Geoffrey Buscher |
|
253-813-3286 |
|
Flow International Corporation Consolidated Statements of Operations (Unaudited) US Dollars in thousands, except per share data Three months Nine months ended ended January 31, January 31, 2010 2009 2010 2009 ---- ---- ---- ---- Sales $45,356 $48,711 $125,145 $166,353 Cost of Sales 27,133 29,565 76,314 95,436 ------ ------ ------ ------ Gross Margin 18,223 19,146 48,831 70,917 ------ ------ ------ ------ Operating Expenses: Sales and Marketing 10,065 9,996 26,956 31,996 Research and Engineering 2,235 2,281 5,782 6,809 General and Administrative 6,198 6,418 19,391 22,586 Restructuring and Other Operating Charges - 32,278 4,222 34,158 --- ------ ----- ------ Operating Expenses 18,498 50,973 56,351 95,549 ------ ------ ------ ------ Operating Loss (275) (31,827) (7,520) (24,632) Interest Expense, net (429) (348) (1,774) (337) Other Income (Expense), net (1,218) 392 (866) (56) ------ --- ---- --- Loss Before Benefit for Income Taxes (1,922) (31,783) (10,160) (25,025) Benefit for Income Taxes 1,124 11,106 2,653 6,277 ----- ------ ----- ----- Loss from Continuing Operations (798) (20,677) (7,507) (18,748) Income (Loss) from Discontinued Operations, net of tax 51 (686) (1,089) (597) -- ---- ------ ---- Net Loss $(747) $(21,363) $(8,596) $(19,345) ===== ======== ======= ======== Basic and Diluted Loss Per Share: Loss from Continuing Operations $(0.02) $(0.55) $(0.18) $(0.50) Net Loss $(0.02) $(0.57) $(0.20) $(0.51) Weighted Average Shares Outstanding Used in Computing Basic and Diluted Loss Per Share (000): Basic and Diluted 46,879 37,639 42,490 37,609 Flow International Corporation Consolidated Balance Sheets (Unaudited) US Dollars in thousands January 31, April 30, 2010 2009 ---- ---- ASSETS: Current Assets: Cash $6,622 $10,117 Receivables, net 36,859 32,103 Inventories 22,031 21,480 Other Current Assets 11,004 31,543 ------ ------ Total Current Assets 76,516 95,243 Property and Equipment, net 21,674 22,983 Other Long-Term Assets 34,997 26,734 ------ ------ $133,187 $144,960 ======== ======== LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Notes Payable $2,150 $15,226 Current Portion of Long-Term Obligations 54 1,367 Accounts Payable and Other Accrued Liabilities 21,675 17,897 Other Current Liabilities 19,444 17,830 Reserve for Patent Litigation - 15,000 --- ------ Total Current Liabilities 43,323 67,320 Other Long-Term Liabilities 7,304 8,929 Subordinated Notes 7,775 6,000 ----- ----- Total Other Long-Term Liabilities 58,402 82,249 ====== ====== Shareholders’ Equity 74,785 62,711 ------ ------ $133,187 $144,960 ======== ======== Flow International Corporation Supplemental Data (Unaudited) US Dollars in thousands Three months Nine months ended ended January 31, January 31, 2010 2009 2010 2009 ---- ---- ---- ---- Sales Breakdown: Systems $31,905 33,739 $83,673 $115,997 Consumable Parts 13,451 14,972 41,472 50,356 ------ ------ ------ ------ Total $45,356 $48,711 $125,145 $166,353 ======= ======= ======== ======== Segment Revenue Breakdown: Standard $37,036 $41,269 $96,817 $149,898 Advanced 8,320 7,442 28,328 16,455 ----- ----- ------ ------ $45,356 $48,711 $125,145 $166,353 ======= ======= ======== ======== Segment Operating Income (Loss) Breakdown: Standard $978 $2,441 $(211) $21,592 Advanced 1,229 628 4,999 (3,417) All Other* (2,482) (34,896) (12,308) (42,807) ------ ------- ------- ------- $(275) $(31,827) $(7,520) $(24,632) ===== ======== ======= ======== * Includes corporate overhead expenses as well as general and administrative expenses of inactive subsidiaries that do not constitute segments. Depreciation and Amortization Expense $1,485 $1,113 $4,078 $3,210 Capital Spending $968 $1,920 $8,925 $6,862 Flow International Corporation Reconciliation of GAAP to Pro forma (Unaudited) US Dollars in thousands, except per share data Three months Nine months ended ended January 31, January 31, 2010 2009 2009 2008 ---- ---- ---- ---- GAAP Loss from Continuing Operations $(798) $(20,677) $(7,507) $(18,748) Adjustments: OMAX Termination Charge - - 3,219 - Restructuring and Other Operating Charges - 514 1,003 2,394 Goodwill Impairment - 2,764 - 2,764 Provision for Patent Litigation - 29,000 - 29,000 Write-off of Deferred Debt Issuance Costs - - 253 - Inventory Write-Off - - - 108 Liquidation of Dormant Foreign Subsidiaries 1,277 - 1,277 - Tax Effect of Adjustments (780) (11,765) (3,390) (11,765) ----- ----- ------- ------ Pro forma Income (Loss) from Continuing Operations $(301) $(164) $(5,146) $3,753 ----- ----- ------- ------ GAAP Net Loss $(747) $(21,363) $(8,596) $(19,345) Adjustments: OMAX Termination Charge - - 3,219 - Restructuring and Other Operating Charges - 514 1,003 2,394 Goodwill Impairment - 2,764 - 2,764 Provision for Patent Litigation - 29,000 - 29,000 Write-off of Deferred Debt Issuance Costs - - 253 - Inventory Write-Off - - - 108 Liquidation of Dormant Foreign Subsidiaries 1,277 - 1,277 - Discontinued Operations (51) 686 1,089 597 Tax Effect of Adjustments (780) (11,765) (3,390) (11,765) ----- ----- ------- ------ Pro forma Net Income (Loss) $(301) $(164) $(5,146) $3,753 ----- ----- ------- ------ Per Share Amounts GAAP Basic and Diluted Income (Loss) Per Share Income (Loss) from Continuing Operations $(0.02) $(0.55) $(0.18) $(0.50) Net Income (Loss) $(0.02) $(0.57) $(0.20) $(0.51) Pro forma Basic and Diluted Income (Loss) per Share Income (Loss) from Continuing Operations $(0.01) $(0.00) $(0.12) $0.10 Net Income (Loss) $(0.01) $(0.00) $(0.12) $0.10
SOURCE Flow International Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article