GSI Group Reports First Quarter Results

GSI Group Inc., a supplier of precision technology and semiconductor systems, announced financial results for the first quarter ended March 28, 2008. First quarter revenue was $71.7 million, compared to $86.5 million in the fourth quarter of 2007 and $74.2 million for the first quarter of 2007.

Excluding restructuring charges, operating profit was $1.5 million in the first quarter versus $7.7 million in the fourth quarter and $6.1 million in the first quarter of 2007. GAAP net income for the quarter was $2.1 million, or $0.05 per diluted share, compared to the fourth quarter results of $4.7 million, or $0.11 per diluted share, and $3.2 million, or $0.08 per diluted share in the first quarter of 2007.

First quarter bookings were $56.1 million, compared to $87.5 million in the fourth quarter of 2007 and $76.9 million in the first quarter of 2007. The backlog as of March 28, 2008 was $74.8 million, compared with $79.3 in the first quarter of 2007. The backlog as of March 28, 2008 includes deferred revenue of $11.7 million. Gross margin was 38.1% in the first quarter, versus 38.0% in the fourth quarter 2007. Operating expenses, excluding restructuring charges were $25.9 million in the first quarter compared to $25.2 million in the fourth quarter.

Stock based compensation was $0.8 million in the first quarter versus $0.7 million in the fourth quarter 2007. Cash and cash equivalents were $170.7 million, down $1.1 million from the fourth quarter. First quarter cash usage includes disbursements of $3.1 million in connection with the company’s previously announced stock buyback program. The company anticipates the following for the second quarter of 2008: – Revenue to be in the range of $64.0 million to $68.0 million – Diluted earnings per share, including restructuring charges, at approximately breakeven.