Excel Technology Announces Record Results for Q1 2007

  
    
  
  
    
      Excel Technology, Inc. (NASDAQ: XLTC) today announced record results for 
      the quarter ended March 30, 2007.
    
    
      
        Sales: Excel reported record revenues of $40.9 million for the 
        quarter ended March 30, 2007 compared to $36.3 million in sales for 
        the quarter ended March 31, 2006, an increase of 12.7% or $4.6 million.
      
      
        Pretax Income increased 12.4% to $6.4 million for the first 
        quarter of 2007 as compared to $5.7 million for the same period last 
        year.
      
    
            Non-GAAP Pretax Income increased 26.3% to $7.2 million for the
        quarter ended March 30, 2007 (excludes stock-based
        compensation expense of $791 thousand) from $5.7 million for
        the quarter ended March 31, 2006 (excludes stock-based
        compensation expense of $50 thousand).
    
      
        Net Income increased 20.4% to $4.7 million for the first 
        quarter of this year as compared to $3.9 million in the same period 
        last year.
      
    
            Non-GAAP Net Income increased 33.7% to $5.2 million for the
        first quarter of 2007 (excludes stock-based compensation
        expense, net of taxes, of $580 thousand) from $3.9 million for
        the same period last year (excludes stock-based compensation
        expense, net of taxes, of $50 thousand).
    
      
        EPS: Net income per share on a diluted basis increased 22.6% 
        recording a record $0.38 for the quarter ended March 30, 2007 compared 
        to the $0.31 per share on a diluted basis reported for the quarter 
        ended March 31, 2006.
      
    
            Non-GAAP EPS: Net income per share on a diluted basis
        increased 35.9% recording a record $0.42 for the quarter ended
        March 30, 2007 (excludes stock-based compensation expense, net
        of taxes, of $0.04) compared to $0.31 per share on a diluted
        basis for the quarter ended March 31, 2006 (excludes stock-
        based compensation expense of less than $0.01).
    
      Antoine Dominic, Chief Executive Officer, stated, "Our focus on 
      re-executing our growth strategy over the past six months continues to 
      yield positive results as evidenced by our first quarter revenue and 
      profit achievements. Excel’s objectives of 
      broadening its global presence, expanding its product portfolio and 
      penetrating new application opportunities are all contributing 
      positively towards our growth. The Company continues to emphasize 
      innovation, as the key ingredient to achieve its organic growth 
      strategies. Our commitment to research and development of nearly 10% of 
      sales has resulted in an increased flow of new product offerings which 
      has been well received in the market. Operational profit margins 
      continue to rise as we capitalize on increased operational efficiencies 
      as sales levels grow. Bookings and backlog are good and we maintained a 
      very healthy balance sheet with over $65 million in cash. We are 
      actively looking for strategic acquisitions to further complement and 
      accelerate our organic growth. We have started the year well and plan to 
      build on this success.”
    
    
      Alice Hughes Varisano, Chief Financial Officer, concluded, "The Company 
      increased its sales by 12.7% to report record revenues of $41 million 
      for the quarter ended March 30, 2007. Pretax profits increased 12.4% to 
      $6.4 million compared to the same period last year and 25.5% compared to 
      the prior quarter. Net income after tax increased 20.4% to $4.7 million 
      (33.7% to $5.2 million on a non-GAAP basis) compared to $3.9 million 
      (both GAAP and non-GAAP) in the same period last year. Net income after 
      tax includes $580 thousand non-cash stock-based compensation expense 
      which had an over $.04 per share effect on diluted earnings per share. 
      The Company’s cash and investment balance is 
      $65.2 million as of March 30, 2007, with no debt. The backlog at the end 
      of the first quarter of 2007 was $36 million equal to the backlog as of 
      the end of the fourth quarter of 2006.”
    
    
      This news release contains forward-looking statements, which are based 
      on current expectations. Actual results could differ materially from 
      those discussed or implied in the forward-looking statements as a result 
      of various factors including future economic, competitive, regulatory, 
      and market conditions, future business decisions, market acceptance of 
      the Company’s products, and those factors 
      discussed in the Company’s Form 10-K for the 
      year ended December 31, 2006. In light of the significant uncertainties 
      inherent in such forward-looking statements, they should not be regarded 
      as a representation that the Company’s 
      objectives and plans will be achieved, and they should not be relied 
      upon by investors when making an investment decision. Words such as 
      "believes," "anticipates," "expects," "intends," "may," and similar 
      expressions are intended to identify forward-looking statements, but are 
      not the exclusive means of identifying such statements.
    
    
      Excel and its wholly owned subsidiaries manufacture and market 
      photonics-based solutions, consisting of laser systems and 
      electro-optical components, primarily for industrial and scientific 
      applications.
    
    
      
        
          
            FINANCIAL SUMMARY
          
          
            (unaudited and in thousands, except per share data)
          
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
          
            FOR THE QUARTER ENDED
          
        
      
      
        
        
        
        
        
        
        
          
            MARCH 30
          
        
        
        
        
        
        
          
            MARCH 31
          
        
      
      
        
        
        
        
        
        
        
          
            2007 
          
        
        
        
        
        
        
          
            2006 
          
        
      
      
        
           
        
      
      
        
          Net Sales & Services
        
        
        
        
          $
        
        
          40,941 
        
        
        
        
          $
        
        
          36,325 
        
      
      
        
          Cost of Sales and Services
        
        
        
        
          $
        
        
          23,100 
        
        
        
        
          $
        
        
          19,056 
        
      
      
        
          Gross Profit
        
        
        
        
          $
        
        
          17,841 
        
        
        
        
          $
        
        
          17,269 
        
      
      
        
          Operating Expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Selling & Marketing
        
        
        
        
          $
        
        
          4,327 
        
        
        
        
          $
        
        
          4,776 
        
      
      
        
          General & Administrative
        
        
        
        
          $
        
        
          4,174 
        
        
        
        
          $
        
        
          2,895 
        
      
      
        
          Research and Development
        
        
        
        
          $
        
        
          3,826 
        
        
        
        
          $
        
        
          3,625 
        
      
      
        
          Operating Income
        
        
        
        
          $
        
        
          5,514 
        
        
        
        
          $
        
        
          5,973 
        
      
      
        
          Interest Income
        
        
        
        
          $
        
        
          781 
        
        
        
        
          $
        
        
          435 
        
      
      
        
          Other Income (Expense)
        
        
        
        
          $
        
        
          98 
        
        
        
        
          $
        
        
          (721)
        
      
      
        
          Pre-Tax Income
        
        
        
        
          $
        
        
          6,393 
        
        
        
        
          $
        
        
          5,687 
        
      
      
        
          Provision for Income Taxes
        
        
        
        
          $
        
        
          1,738 
        
        
        
        
          $
        
        
          1,820 
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          4,655 
        
        
        
        
          $
        
        
          3,867 
        
      
      
        
          Net Income Per Common Share - Diluted
        
        
        
        
          $
        
        
          0.38 
        
        
        
        
          $
        
        
          0.31 
        
      
      
        
          Weighted Average Common Shares
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Outstanding - Diluted
        
        
        
        
        
        
          12,409 
        
        
        
        
        
        
          12,614 
        
      
    
    
      
        
        
        
        
        
          
            FOR THE QUARTER ENDED
          
        
      
      
        
        
        
        
        
          
            MARCH 30
          
        
        
        
        
          
            MARCH 31
          
        
      
      
        
        
        
        
        
          
            2007 
          
        
        
        
        
          
            2006 
          
        
      
      
        
          
            Reconciliation of GAAP net income to
          
        
        
        
        
        
        
        
        
        
      
      
        
          
            Non-GAAP net income
          
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
          $
        
        
          4,655 
        
        
        
        
          3,867 
        
      
      
        
          Stock-based compensation, net of taxes
        
        
          $
        
        
          580 
        
        
        
        
          50 
        
      
      
        
          Non-GAAP net income
        
        
          $
        
        
          5,235 
        
        
        
        
          3,917 
        
      
      
        
           
        
      
      
        
          
            Reconciliation of GAAP income per common
          
        
        
        
        
        
        
        
        
        
      
      
        
          
            share to Non-GAAP income per common share
          
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          GAAP income per common share:
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
          $
        
        
          0.38 
        
        
        
        
          0.32 
        
      
      
        
          Diluted
        
        
          $
        
        
          0.38 
        
        
        
        
          0.31 
        
      
      
        
          Stock-based compensation
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
          $
        
        
          0.05 
        
        
        
        
          -- 
        
      
      
        
          Diluted
        
        
          $
        
        
          0.04 
        
        
        
        
          -- 
        
      
      
        
          Non-GAAP income per common share:
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
          $
        
        
          0.43 
        
        
        
        
          0.32 
        
      
      
        
          Diluted
        
        
          $
        
        
          0.42 
        
        
        
        
          0.31 
        
      
    
    
      
        
          
            BALANCE SHEET & SELECTED FINANCIAL DATA
          
        
      
      
        
           
        
      
      
        
        
        
        
        
        
        
          
            MARCH 30, 2007
          
        
        
        
        
        
        
          
            DECEMBER 31, 2006
          
        
      
      
        
        
        
        
        
        
        
          (UNAUDITED)
        
        
        
        
        
        
          (AUDITED)
        
      
      
        
          Cash
        
        
        
        
          $
        
        
          8,731 
        
        
        
        
          $
        
        
          9,903 
        
      
      
        
          Investments
        
        
        
        
          $
        
        
          56,450 
        
        
        
        
          $
        
        
          53,220 
        
      
      
        
          Accounts Receivable, net
        
        
        
        
          $
        
        
          27,397 
        
        
        
        
          $
        
        
          22,716 
        
      
      
        
          Inventory
        
        
        
        
          $
        
        
          34,756 
        
        
        
        
          $
        
        
          34,906 
        
      
      
        
          Other Current Assets
        
        
        
        
          $
        
        
          3,669 
        
        
        
        
          $
        
        
          
            3,445 
          
        
      
      
        
          
            Total Current Assets
          
        
        
        
        
          
            $
          
        
        
          
            131,003 
          
        
        
        
        
          
            $
          
        
        
          
            124,190 
          
        
      
      
        
          Property, Plant & Equipment, net
        
        
        
        
          $
        
        
          25,437 
        
        
        
        
          $
        
        
          25,503 
        
      
      
        
          Other Non-Current Assets & Goodwill
        
        
        
        
          $
        
        
          
            33,697 
          
        
        
        
        
          $
        
        
          32,286 
        
      
      
        
          
            Total Assets
          
        
        
        
        
          
            $
          
        
        
          
            190,137 
          
        
        
        
        
          
            $
          
        
        
          
            181,979 
          
        
      
      
        
          Accounts Payable
        
        
        
        
          $
        
        
          6,959 
        
        
        
        
          $
        
        
          6,386 
        
      
      
        
          Accrued Expenses and
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other Current Liabilities
        
        
        
        
          $
        
        
          
            7,976 
          
        
        
        
        
          $
        
        
          7,256 
        
      
      
        
          
            Total Current Liabilities
          
        
        
        
        
          
            $
          
        
        
          
            14,935 
          
        
        
        
        
          
            $
          
        
        
          
            13,642 
          
        
      
      
        
          Other Non-Current Liabilities
        
        
        
        
          $
        
        
          4,547 
        
        
        
        
          $
        
        
          4,546 
        
      
      
        
          Minority Interest of Subsidiary
        
        
        
        
          $
        
        
          65 
        
        
        
        
          $
        
        
          66 
        
      
      
        
          Stockholders' Equity
        
        
        
        
          $
        
        
          170,590 
        
        
        
        
          $
        
        
          163,725 
        
      
      
        
          
            Total Liabilities & Stockholders' Equity
          
        
        
        
        
          
            $
          
        
        
          
            190,137 
          
        
        
        
        
          
            $
          
        
        
          
            181,979 
          
        
      
      
        
          Working Capital
        
        
        
        
          $
        
        
          116,068 
        
        
        
        
          $
        
        
          110,548 
        
      
    
    
      The non-GAAP financial measures used in this press release are not 
      prepared in accordance with generally accepted accounting principles and 
      may be different from non-GAAP financial measures used by other 
      companies. The Company's management refers to these non-GAAP financial 
      measures in making operating decisions because they provide meaningful 
      supplemental information regarding the Company's operating comparisons 
      to the Company's historical operating results. We include these non-GAAP 
      financial measures (which should be viewed as a supplement to, and not a 
      substitute for, their comparable GAAP measures) in this press release 
      because we believe they are useful to investors in allowing for greater 
      transparency to supplemental information used by management in its 
      financial and operational decision-making. For a reconciliation of our 
      GAAP and non-GAAP financial results, please refer to our Reconciliation 
      of Reported GAAP Results to Non-GAAP Measures, presented in this release.