FSI’s earnings exceed expectations

Minneapolis, Minnesota–FSI International, Inc., a manufacturer of capital equipment for the microelectronics industry, recently reported financial results for the fiscal 2001 first quarter (Q1) ended November 25, 2000. Sales for fiscal 2001 Q1 increased 128%, to $70.4 million, compared to $30.9 million for the same period of fiscal 2000.

The company’s net income for Q1 of fiscal 2001 was $7.7 million or $0.29 per share (diluted) compared to a net loss of $10.6 million or $0.44 per share (diluted) in fiscal 2000 Q1.

In the first quarter of fiscal 2000, FSI recorded an in-process research and development write-off of $6.4 million or $0.27 per share (diluted) and a gain of approximately $5.4 million or $0.23 per share (diluted) on the sale of Metron Technology stock. Also in Q1 of fiscal 2000, the company recorded a $400,000 loss or $0.01 per share (diluted) from the sale of discontinued operations.

“We are pleased with the improvement we made in our operating margin as a percent of sales in the quarter,” said Don Mitchell, president and chief executive officer of FSI International. “We are continuing to recognize the benefits of our Lean Enterprise programs.”

FSI began fiscal 2001 with approximately $185 million in backlog. Despite customer-requested shipment delays and a few order cancellations during Q1, the company maintains a strong backlog.(a) Prior to the delays and cancellations, FSI’s book-to-bill ratio for the quarter was above 1.0. Customers can cancel orders or delay shipment; therefore, backlog is not necessarily indicative of sales in future periods.

“Given our current backlog and anticipated orders, we continue to expect 2001 sales to exceed $300 million,” continued Mitchell. “We expect fiscal 2001 second quarter sales of approximately $75 million and remain on track toward reaching our fiscal 2001 operating margin goal of 9% of sales.”


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