ESI Announces Fourth Quarter and Full Year Fiscal 2018 Results

Electro Scientific Industries Inc (NASDAQ:ESIO), an innovator of laser based manufacturing solutions for the microtechnology industry announced results for its fiscal 2018 fourth quarter and year ended March 31, 2018.

The company’s fourth quarter orders of $111.8 million which reflects 36 percent year over year growth. Fiscal 2018 orders of the company were at $451.4 million which is up 144 percent from fiscal 2017.

As quoted in the press release:

• Fourth quarter and fiscal 2018 revenue of $113.4 million and $367.9 million, respectively; each more than doubled the revenue in fiscal 2017

• Backlog of $148.4 million, primarily expected to ship in the first half of fiscal 2019

• Fiscal 2018 GAAP operating margin of 20.6%. Non-GAAP operating margin was 27.4%.

• Fiscal 2018 GAAP EPS of $3.27 and non-GAAP EPS of $2.78. For the fourth quarter GAAP EPS was $2.10 and non-GAAP EPS was $1.02, exceeding one dollar for the first time in recent history.

• Fiscal 2018 operating cash flow of $67.4 million, leading to total cash and investments balance of $125.0 million

Fourth Quarter Results

Fourth quarter revenue was $113.4 million, compared to $49.9 million in the fourth quarter of last fiscal year and $110.8 million last quarter. GAAP net income was $75.1 million or $2.10 per diluted share, compared to a net loss of $17.9 million or $0.54 per share last year, as the Company’s strong financial performance over the last twelve months triggered the reversal of our tax valuation allowance, resulting in a fourth quarter tax credit of approximately $41 million. On a non-GAAP basis net income was $36.5 million or $1.02 per diluted share, compared to $2.9 million or $0.09 per diluted share last year and net income of $35.6 million or $0.99 per diluted share last quarter.

Michael Burger, ESI’s president and CEO, stated, “We delivered another quarter of exceptional financial results, which closed out a defining and transformative year for ESI. Our team executed well and capitalized on strong market conditions, positioning us for future success.”

Based on current market and backlog conditions, revenues for the first quarter of fiscal 2019 are expected to be between $97 and $111 million. Non-GAAP earnings per diluted share is expected to be $0.75 to $0.95.

Burger concluded, “We enter our fiscal 2019 with a product portfolio that is retaining or growing market share. In this coming fiscal year we expect to introduce significant new products that will expand our addressable market, extend our competitive advantage, generate incremental revenue, and increase our exposure to secular growth drivers. Our markets will naturally cycle, and our visibility into the timing of those cycles remains limited. That said, the long-term technology trends and drivers indicate solid growth across our markets, and our new products should enable us to retain or grow share. Through the cycles our technology advantages and lower fixed cost base should allow us to generate solid earnings in all market conditions.”

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