Excel Technology Announces Results for Q2 2008

  
    
  
  
    
      Excel Technology, Inc. (NASDAQ: XLTC) today announced second quarter 
      results for the quarter ended June 27, 2008.
    
    
      
        Sales: Excel reported revenues of $40.7 million for the quarter 
        ended June 27, 2008 compared to $40.5 million in sales for the quarter 
        ended June 29, 2007, an increase of 0.4% or $0.2 million. Sales for 
        the six months decreased 1.8% to $80.0 million for the six months 
        ended June 27, 2008 as compared to $81.5 million for the same period 
        last year.
      
      
        Pretax Income decreased 4.2% to $6.3 million for the second 
        quarter of 2008 as compared to $6.5 million for the same period last 
        year. Pretax income decreased 7.8% for the six months ended June 27, 
        2008 to $11.9 million as compared to $12.9 million for the same period 
        last year.
      
      
        Net Income increased 2.1% to $4.6 million for the second 
        quarter of this year as compared to $4.5 million in the same period 
        last year. For the six months ending June 27, 2008 net income 
        decreased 2.5% to $8.9 million as compared to $9.2 million for the 
        same period last year.
      
    
    
      
        EPS: Net income per share on a diluted basis increased 13.5% to 
        $0.42 for the quarter ended June 27, 2008 compared to the $0.37 per 
        share on a diluted basis reported for the quarter ended June 29, 2007. 
        EPS for the six months ending June 27, 2008 increased 8.1% to 
        $0.80 per diluted share from $0.74 for the same period last year.
      
    
    
      Antoine Dominic, Chief Executive Officer stated, “Overall 
      we had a very good quarter in Revenues and Profit considering the 
      current macro economic condition. Our year-to-date bookings have 
      increased 9.5% over the same period last year, which is quite good. 
      These increased bookings are a direct result of increased new product 
      offerings, broadening our product portfolio and expanding our global 
      presence. We were unable to capitalize on our stock buy back program 
      during the quarter due to the on-going merger negotiations with GSI. We 
      have a healthy backlog going into the next quarter and we are optimistic 
      in achieving our objectives in 2008.”
    
    
      Alice Hughes Varisano, Chief Financial Officer, concluded, "Sales 
      increased 0.4% and decreased 1.8% for the quarter and six months ended 
      June 27, 2008 to $40.7 million from $40.5 million and to $80.0 million 
      from $81.5 million respectively. Bookings increased 26.6% and 9.5% for 
      the quarter and six months ended June 27, 2008 to $43.7 million from 
      $34.6 million and to $82.7 million from $75.5 million, respectively. 
      Operating income for the quarter ended June 27, 2008 increased 2.1% to 
      $5.8 million from $5.7 million. The Company’s 
      interest income decreased 50.4% for the quarter ended June 27, 2008 to 
      $418 thousand from $843 thousand due to decreased interest rates and the 
      cumulative cash utilized for the stock buy back. The backlog increased 
      24.6% to $37.4 million as compared to $30.0 million for the second 
      quarter of 2007.”
    
    
      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, 2007. 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
          
        
        
        
        
          
            FOR THE SIX MONTHS ENDED
          
        
      
      
        
        
        
          
            JUNE 27, 2008
          
        
        
           
        
        
          
            JUNE 29, 2007
          
        
        
        
        
          
            JUNE 27, 2008
          
        
        
           
        
        
          
            JUNE 29, 2007
          
        
      
      
        
          Net Sales & Services
        
        
          $
        
        
          40,705
        
        
        
        
          $
        
        
          40,532
        
        
        
        
          $
        
        
          80,039
        
        
        
        
          $
        
        
          81,473
        
      
      
        
          Cost of Sales and Services
        
        
          $
        
        
          
            22,092
          
        
        
        
        
          $
        
        
          22,470
        
        
        
        
          $
        
        
          44,328
        
        
        
        
          $
        
        
          45,570
        
      
      
        
          Gross Profit
        
        
          $
        
        
          18,613
        
        
        
        
          $
        
        
          18,062
        
        
        
        
          $
        
        
          35,711
        
        
        
        
          $
        
        
          35,903
        
      
      
        
          Operating Expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Selling & Marketing
        
        
          $
        
        
          5,167
        
        
        
        
          $
        
        
          4,619
        
        
        
        
          $
        
        
          9,934
        
        
        
        
          $
        
        
          8,946
        
      
      
        
          General & Administrative
        
        
          $
        
        
          3,823
        
        
        
        
          $
        
        
          3,944
        
        
        
        
          $
        
        
          7,497
        
        
        
        
          $
        
        
          8,118
        
      
      
        
          Research and Development
        
        
          $
        
        
          3,787
        
        
        
        
          $
        
        
          3,783
        
        
        
        
          $
        
        
          7,673
        
        
        
        
          $
        
        
          7,609
        
      
      
        
          Operating Income
        
        
          $
        
        
          5,836
        
        
        
        
          $
        
        
          5,716
        
        
        
        
          $
        
        
          10,607
        
        
        
        
        
        
          11,230
        
      
      
        
          Interest Income, net
        
        
          $
        
        
          418
        
        
        
        
          $
        
        
          843
        
        
        
        
          $
        
        
          1,051
        
        
        
        
          $
        
        
          1,624
        
      
      
        
          Other Income (Expense)
        
        
          $
        
        
          10
        
        
        
        
          $
        
        
          (18)
        
        
        
        
          $
        
        
          273
        
        
        
        
          $
        
        
          80
        
      
      
        
          Pre-Tax Income
        
        
          $
        
        
          6,264
        
        
        
        
          $
        
        
          6,541
        
        
        
        
          $
        
        
          11,931
        
        
        
        
          $
        
        
          12,934
        
      
      
        
          Provision for Income Taxes
        
        
          $
        
        
          1,655
        
        
        
        
          $
        
        
          2,028
        
        
        
        
          $
        
        
          2,995
        
        
        
        
          $
        
        
          3,766
        
      
      
        
          Net Income
        
        
          $
        
        
          4,609
        
        
        
        
          $
        
        
          4,513
        
        
        
        
          $
        
        
          8,936
        
        
        
        
          $
        
        
          9,168
        
      
      
        
           
        
      
      
        
          Net Income Per Common Share - Basic
        
        
          $
        
        
          0.42
        
        
        
        
          $
        
        
          0.37
        
        
        
        
          $
        
        
          0.82
        
        
        
        
          $
        
        
          0.76
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Weighted Average Common Shares Outstanding - Basic
          
        
        
        
        
          10,859
        
        
        
        
        
        
          12,063
        
        
        
        
        
        
          10,934
        
        
        
        
        
        
          12,085
        
      
      
        
           
        
      
      
        
          Net Income Per Common Share - Diluted
        
        
          $
        
        
          0.42
        
        
        
        
          $
        
        
          0.37
        
        
        
        
          $
        
        
          0.80
        
        
        
        
          $
        
        
          0.74
        
      
      
        
           
        
      
      
        
          
            Weighted Average Common Shares Outstanding - Diluted
          
        
        
        
        
          11,031
        
        
        
        
        
        
          12,352
        
        
        
        
        
        
          11,125
        
        
        
        
        
        
          12,380
        
      
    
    
      
        
          
            BALANCE SHEET & SELECTED FINANCIAL DATA
          
        
      
      
        
        
        
        
        
           
        
        
        
      
      
        
        
        
          
            JUNE 27, 2008
          
        
        
        
        
          
            DECEMBER 31, 2007
          
        
      
      
        
        
        
          
            (unaudited)
          
        
        
        
        
          
            (audited)
          
        
      
      
        
        
        
           
        
      
      
        
          Cash & Cash Equivalents
        
        
          $
        
        
          25,839
        
        
        
        
          $
        
        
          9,981
        
      
      
        
          Investments
        
        
          $
        
        
          --
        
        
        
        
          $
        
        
          47,550
        
      
      
        
          Accounts Receivable, net
        
        
          $
        
        
          26,493
        
        
        
        
          $
        
        
          24,008
        
      
      
        
          Inventory
        
        
          $
        
        
          35,793
        
        
        
        
          $
        
        
          33,792
        
      
      
        
          Other Current Assets
        
        
          $
        
        
          3,841
        
        
        
        
          $
        
        
          6,217
        
      
      
        
          
            Total Current Assets
          
        
        
          
            $
          
        
        
          
            91,966
          
        
        
        
        
          
            $
          
        
        
          
            121,548
          
        
      
      
        
          Investments
        
        
          $
        
        
          29,602
        
        
        
        
          $
        
        
          --
        
      
      
        
          Property, Plant & Equipment, net
        
        
          $
        
        
          24,116
        
        
        
        
          $
        
        
          24,679
        
      
      
        
          Other Non-Current Assets & Goodwill
        
        
          $
        
        
          34,707
        
        
        
        
          $
        
        
          34,305
        
      
      
        
          
            Total Assets
          
        
        
          
            $
          
        
        
          
            180,391
          
        
        
        
        
          
            $
          
        
        
          
            180,532
          
        
      
      
        
        
        
           
        
      
      
        
          Accounts Payable
        
        
          $
        
        
          6,438
        
        
        
        
          $
        
        
          5,090
        
      
      
        
          
            Accrued Expenses and Other Current Liabilities
          
        
        
          $
        
        
          11,155
        
        
        
        
          $
        
        
          8,659
        
      
      
        
          
            Total Current Liabilities
          
        
        
          
            $
          
        
        
          
            17,593
          
        
        
        
        
          
            $
          
        
        
          
            13,749
          
        
      
      
        
          Other Non-Current Liabilities
        
        
          $
        
        
          4,000
        
        
        
        
          $
        
        
          5,068
        
      
      
        
          Minority Interest in Subsidiary
        
        
          $
        
        
          150
        
        
        
        
          $
        
        
          128
        
      
      
        
          Stockholders' Equity
        
        
          $
        
        
          158,648
        
        
        
        
          $
        
        
          161,587
        
      
      
        
          
            Total Liabilities & Stockholders' Equity
          
        
        
          
            $
          
        
        
          
            180,391
          
        
        
        
        
          
            $
          
        
        
          
            180,532
          
        
      
      
        
          Working Capital
        
        
          $
        
        
          74,373
        
        
        
        
          $
        
        
          107,799