BTU International Reports Second Quarter 2014 Results

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| Source: BTU International, Inc.

NORTH BILLERICA, Mass., July 29, 2014 (GLOBE NEWSWIRE) -- BTU International, Inc. (Nasdaq:BTUI), a leading supplier of advanced thermal processing equipment to the electronics manufacturing and alternative energy markets, today announced its financial results for the second quarter ended on June 29, 2014.

Second quarter net sales were $16.4 million, up 40.7 percent compared to $11.7 million in the preceding quarter, and up 15.4 percent compared to $14.2 million for the same quarter a year ago. Net income for the second quarter of 2014 was $0.6 million, or $0.06 per diluted share, compared to a net loss of $1.8 million, or ($0.19) per diluted share, in the preceding quarter, and compared to a net loss of $0.3 million, or ($0.03) per diluted share, in the second quarter of 2013.

Net sales for the six months ended June 29, 2014, were $28.1 million compared to $24.7 million for the first six months of 2013. Net loss for the first six months of 2014, was $1.2 million, or ($0.12) per diluted share, compared to a net loss of $3.4 million, or ($0.36) per diluted share, for the first six months of 2013.

Comments

Commenting on the company's performance, Paul J. van der Wansem, BTU chairman and CEO, said, "We are pleased with the strong showing of our electronics equipment business. This, combined with extra strength in our margins due to a favorable product mix and expense reductions, allowed us to get to the first profitable quarter since the sharp decline of the solar business."

Outlook

"Third quarter 2014 revenues are expected to be in the $14.5 to $15.5 million range based upon strength in orders from our electronics assembly customers. We booked a few technology solar orders, primarily for pilot line production, in anticipation of an expected return of capital spending for solar cell production in 2015. Our gross margins in the US will still be affected by factory under absorption in contrast to full absorption in our China factory," concluded van der Wansem.

Teleconference and Simultaneous Webcast

BTU will be discussing its financial results, along with its outlook for the third quarter of 2014, in a conference call to be held today, July 29, at 5:00 p.m. EDT. The dial-in number to participate in the conference call is 877-303-9139. A live and archived webcast of the conference call will be available on BTU's website at www.btu.com.

About BTU International

BTU International is a global supplier and technology leader of advanced thermal processing equipment and processes to the electronics manufacturing and alternative energy markets. BTU equipment is used in the production of printed circuit board assemblies and semiconductor packaging as well as in the manufacturing of solar cells and nuclear fuel. BTU has operations in North Billerica, Massachusetts and Shanghai, China with direct sales and service in the U.S.A., Asia and Europe. Information about BTU International is available at www.btu.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This news release contains expressed or implied forward-looking statements regarding, among other things, the company's expected revenues, gross margins and financial performance for the third quarter of fiscal year 2014. Such statements are neither promises nor guarantees but rather are subject to risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Such statements are made pursuant to the "safe harbor" provisions established by the federal securities laws, and are based on the assumptions and expectations of the company's management at the time such statements are made. Important factors that could cause actual results to differ include the acceptance of new products, particularly in the alternative energy market, general market conditions governing supply and demand, the impact of competitive products and pricing and other risks detailed in the company's filings with the Securities and Exchange Commission. Actual results may vary materially. Accordingly, you should not place undue reliance on any forward-looking statements. All information set forth in this press release is as of July 29, 2014, and, unless otherwise required by law, the company disclaims any obligation to revise or update this information in order to reflect future events or developments.

 
BTU INTERNATIONAL, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
         
  Three Months Ended Six Months Ended
  June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
         
Net sales  $ 16,435  $ 14,244  $ 28,120  $ 24,747
Costs of goods sold  9,559  8,850  17,085  16,623
         
Gross profit  6,876  5,394  11,035  8,124
         
Operating expenses:        
         
Selling, general and administrative  5,091  4,355  9,701  9,009
Research, development and engineering  1,029  1,017  2,240  2,151
         
Operating income (loss)  756  22  (906)  (3,036)
         
Interest income  7  11  18  23
Interest expense  (84)  (107)  (169)  (220)
Foreign exchange income (loss)  41  (38)  56  (114)
Other income   3  5  7  46
         
Income (loss) before provision for income taxes  723  (107)  (994)  (3,301)
         
Provision for income taxes  129  154  198  85
         
Net income (loss)  $ 594  $ (261)  $ (1,192)  $ (3,386)
         
Income (loss) per share:        
Basic  $ 0.06  $ (0.03)  $ (0.12)  $ (0.36)
Diluted  $ 0.06  $ (0.03)  $ (0.12)  $ (0.36)
         
Weighted average number of shares outstanding:        
Basic shares  9,560,454  9,532,140  9,558,671  9,531,559
Effect of dilutive options  45,531  --  --  --
         
Diluted shares  9,605,985  9,532,140  9,558,671  9,531,559
 
 
BTU INTERNATIONAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
     
  June 29, December 31,
Assets 2014 2013
     
Current assets    
Cash and cash equivalents  $ 10,032  $ 13,991
Accounts receivable, net  13,768  11,370
Inventories  11,875  9,831
Other current assets  937  1,126
     
Total current assets  36,612  36,318
     
Property, plant and equipment, net  2,860  3,386
     
Other assets, net  1,238  626
     
Total assets  $ 40,710  $ 40,330
     
Liabilities and stockholders' equity    
     
Current liabilities    
Current portion of long-term debt  $ 375  $ 367
Trade accounts payable  8,428  5,408
Other current liabilities  6,872  8,413
     
Total current liabilities  15,675  14,188
     
Long-term debt, less current portion  7,030  7,219
Other long-term liabilities  2  14
     
Total liabilities  22,707  21,421
     
Total stockholders' equity  18,003  18,909
     
Total liabilities and stockholders' equity  $ 40,710  $ 40,330
Company Contact:
Peter Tallian
Chief Operating Officer
BTU International, Inc.
Phone: (978) 667-4111