SAN JOSE, Calif. Attempting to rebound from its executive scandal of the last two years, equipment manufacturer Electro Scientific Industries Inc. missed by $0.10 Wall Street EPS expectations for the first quarter of 2005.
The company reported Thursday (Sept. 23) that sales for first quarter of 2005 were $76 million, up 248 percent over first quarter 2004 sales of $20.9 million.
In 2003, the company was forced to restate revenues for its August and November 2002 quarters after it was discovered that company's former CEO, James Dooley and its former controller James Dolenz had allegedly inflated revenues .
Those former executives are currently being indicted by the SEC for fraud, ESI has settled related investor class action suits, and is now rebuilding.
And Sept. 23 the company reported net income for first quarter was $10.6 million, or $0.38 per basic share and $0.36 per diluted share, compared with net income of $16.2 million, or $0.57 per basic share and $0.54 per diluted share in the fourth quarter and a net loss of $9.4 million, or $0.34 per basic and diluted share in the first quarter a year ago.
The earnings number fell $0.10 short of analysts expectations of $0.46 earnings per share.
The company reported today that operating income for Q1, 2005 was $15.4 million, compared with operating income of $16.8 million in the fourth quarter and an operating loss of $15.5 million in the first quarter a year ago.
Meanwhile, net orders for the first quarter were $67.6 million, a decrease of 35 percent compared with $104.7 million in the fourth quarter and an increase of 58 percent compared with $42.7 million in the first quarter of 2004.
Backlog decreased to $68.2 million for August 28, 2004 compared to $78.5 million at May 29, 2004. Deferred revenue increased for Q1, 2005 to $17.2 million compared to $12.0 million at May 29, 2004.
In a release issued by the company today, the company's CFO Mike Dodson, said the company's balance sheet remains strong, as cash and investments were up $4 million from the fourth quarter to reach $337 million. "The increase was primarily due to our strong operating performance," concluded Dodson in the release.
The company's new president and CEO Nick Konidaris said in the release "there is very little visibility" in the current environment. However, we believe demand will decrease for at least another quarter. As a result, we expect order volume in the second quarter to be in the range of $50 million to $60 million. Consistent with the decrease in the order forecast, we believe second quarter shipments and revenues will be in the range of $60 million to $70 million. We plan to manage our margins and operating expenses in accordance with our target operating model."