Earnings Call Excerpt
Electro Scientific Industries, Inc. (ESIO)
F4Q08 Earnings Call
May 08, 2008 5:00 pm ET
Executives
Chris Butterfield - Director of Investor Relations
Nicholas Konidaris - Chief Executive Officer
Paul Oldham - Chief Financial Officer
Analysts
Matthew Petkun – D.A. Davidson and Co.
Andy Aranda - Needham & Company
Presentation
Operator
Welcome everyone to the Electro Scientific Industries fiscal 2008 Q4 earnings release (Operator Instructions). Mr. Konidaris, you may begin your conference.
Chris Butterfield
With me today are Nick Konidaris, our CEO and Paul Oldham, our Chief Financial Officer. This conference call will cover our fiscal 2008 fourth quarter annual results. Before we go into the details of the call, I’d like to give you the required Safe Harbor Language. Some of what we will say we will include forward-looking statements concerning customer orders, shipments, revenue, gross margins, expenses, non-operating income and taxes.
These statements are subject to the Safe Harbor Provisions of the Private Securities and Litigation Reform Act of 1995. These statements include a number of risks and uncertainties that are discussed in more detail in today’s press release and our filings with the SEC. Actual results may differ materially from those forward-looking statements. This call also contains time-sensitive information we believe to be accurate today May 8th, 2008 and which could change in the future. This call is a property of ESI.
Now, I’ll turn the call over to ESI’s CEO, Nick Konidaris.
Nicholas Konidaris
While the fourth quarter of fiscal ’08 was characterized by lower capital spending due to weakness in the memory market, we enjoyed the fourth consecutive quarter of revenue over $70 million and delivered solid financial results. At $71 million, revenue was down 9% from the prior quarter primarily due to the impact of lower shipments. Earnings per share were $0.11 on a GAAP basis. However, orders for Q4 were $51 million down 51% from the third quarter leading to a 29% sequential decrease in shipments to $58 million.
As a result, we began to take actions to lower our cost structure consistent with the current amount. For fiscal ’08, which represents a 10 month period orders were $224 million down 18% from fiscal ’07 twelve-month results. The 2008 shipment of $245 million and revenue of $247 million were down only slightly from fiscal 2008 despite the shortened period. On a pro forma 10 month comparative basis, we estimate that orders were down 7%, shipments grew 19% and revenue increased 25%.
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