Q Financial Supplement

Transcription

1 Reconcilation of GAAP and Non-GAAP Financial Measures Non-GAAP Net Income and Non-GAAP EPS (in thousands except per share data) Three Months Ending June 30, Low Range Guidance (1) High Range Guidance (1) Reconciliation to Non-GAAP Net Income GAAP net income 9,930 12,350 1,592 1,828 2,207 4,303 2,173 2,797 3,219 4,161 1,992 3,000 4,000 Non-GAAP adjustments to net income: Restructuring 1, (191) 1, Acquisition and acquisition related (557) - - (457) (100) , Amortization of intangibles 3,011 2, Subtotal pre-tax non-gaap adjustments 3,690 2, , , Income tax effect of non-gaap adjustments (1,170) (894) (291) (209) (161) (509) (253) (250) (196) (195) (687) (182) (182) Discrete tax items (1,246) (358) (1,246) (154) - (204) - (148) - - Non-GAAP net income 11,204 13,818 2,086 2,191 2,507 4,420 2,531 3,327 3,412 4,548 3,240 3,368 4,368 GAAP net income per diluted share Non-GAAP net income per diluted share Shares used in diluted share calculations 16,828 16,957 16,679 16,751 16,851 16,955 17,037 17,202 17,112 16,517 16,516 16,600 16,600 (1) For the second quarter of we are projecting revenue in the range of $38.0 million to $42.0 million, with diluted GAAP earnings per share in the range of $0.18 to $0.24, and non-gaap diluted earnings per share in the range of $0.20 to $0.26. Our guidance assumes a tax rate of 33%, consistent foreign currency exchange rates and no significant one-time charges. No acquisition related costs are included in this financial outlook. Page 1

2 Reconcilation of GAAP and Non-GAAP Financial Measures EBITDAS and Adjusted EBITDAS Revenue 136, ,978 33,685 32,995 32,749 36,593 31,742 36,044 35,781 40,411 34,803 Reconciliation to EBITDAS Income from Operations 13,284 17,891 2,602 2,928 3,614 4,140 2,799 4,040 4,512 6,540 2,877 Depreciation 3,335 3, Amortization 3,011 2, Stock Based Compensation 2,482 2, EBITDAS 22,112 26,283 4,665 5,328 5,838 6,281 4,783 6,015 6,695 8,790 5,099 EBITDAS % 16.3% 18.3% 13.8% 16.1% 17.8% 17.2% 15.1% 16.7% 18.7% 21.8% 14.7% Reconciliation to Adjusted EBITDAS EBITDAS 22,112 26,283 4,665 5,328 5,838 6,281 4,783 6,015 6,695 8,790 5,099 Restructuring 1, (191) 1, Acquisition and acquisition related (557) - - (457) (100) ,533 Adjusted EBITDAS 22,791 26,545 4,665 5,120 5,547 7,459 4,901 6,159 6,695 8,790 6,632 Adjusted EBITDAS % 16.8% 18.4% 13.8% 15.5% 16.9% 20.4% 15.4% 17.1% 18.7% 21.8% 19.1% Page 2

3 Reconcilation of GAAP and Non-GAAP Financial Measures Non-GAAP Adjustments by P&L Category Total pre-tax non-gaap adjustments included in operating income by P&L category Non-GAAP restructuring, acquisition and facility adjustments included in cost of goods sold Non-GAAP restructuring, acquisition and facility adjustments included in R&D Non-GAAP restructuring, acquisition and facility adjustments included in SG&A Non-GAAP amortization adjustments included in SG&A Total pre-tax non-gaap adjustments included in operating income (208) (291) 1, ,533 3,011 2, ,690 2, , ,083 Page 3

4 Select Expenses by P&L Category Stock based compensation by P&L category Stock based compensation included in cost of goods sold Stock based compensation included in R&D Stock based compensation included in SG&A ,928 2, Total stock based compensation expense 2,482 2, Amortization of intangibles by P&L category Amortization of intangibles included in cost of goods sold Amortization of intangibles included in R&D Amortization of intangibles included in SG&A ,011 2, Total amortization of intangibles 3,011 2, Page 4

5 Systems Business Segment and Probes Business Segment Systems Revenue 82,850 77,853 21,435 21,367 18,687 21,361 17,470 19,545 19,146 21,692 17,554 Cost of Sales 45,075 39,752 12,237 11,228 10,525 11,085 8,977 10,376 9,513 10,886 8,269 Gross Profit 37,775 38,101 9,198 10,139 8,162 10,276 8,493 9,169 9,633 10,806 9,285 Gross Margin 45.6% 48.9% 42.9% 47.5% 43.7% 48.1% 48.6% 46.9% 50.3% 49.8% 52.9% Probes Engineering Probes Revenue 18,911 20,754 4,794 4,520 4,374 5,223 4,931 4,425 4,996 6,402 5,639 Production Probes Revenue 34,261 45,371 7,456 7,108 9,688 10,009 9,341 12,074 11,639 12,317 11,610 Total Probes Revenue 53,172 66,125 12,250 11,628 14,062 15,232 14,272 16,499 16,635 18,719 17,249 Total Probes Cost of Sales 20,633 24,141 5,175 4,781 4,704 5,973 5,744 5,645 5,998 6,754 5,853 Total Probes Gross Profit 32,539 41,984 7,075 6,847 9,358 9,259 8,528 10,854 10,637 11,965 11,396 Total Probes Gross Margin 61.2% 63.5% 57.8% 58.9% 66.5% 60.8% 59.8% 65.8% 63.9% 63.9% 66.1% Total Company Revenue 136, ,978 33,685 32,995 32,749 36,593 31,742 36,044 35,781 40,411 34,803 Cost of Sales 65,708 63,893 17,412 16,009 15,229 17,058 14,720 16,021 15,511 17,640 14,122 Gross Profit 70,314 80,085 16,273 16,986 17,520 19,535 17,022 20,023 20,270 22,771 20,681 Gross Margin 51.7% 55.6% 48.3% 51.5% 53.5% 53.4% 53.6% 55.6% 56.7% 56.3% 59.4% Page 5

6 Forward-Looking Statements The statements in this release regarding our continued financial improvement and business model, our expectations relating to investment in new product development and positioning for continued success in and statements regarding projected revenue, GAAP earnings per share, and non-gaap earnings per share and assumptions supporting those projections, and other statements identified by terminology such as will, should, expects, estimates, predicts, and continue or other derivations of these or other comparable terms are forward-looking statements within the meaning of the Securities Litigation Reform act of Such statements are based on current expectations, estimates and projections about the Company s business based in part on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including: changes in demand for the Company s products; changes in product mix; potential delays and other factors affecting the timing of new product introductions; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; potential failure of expected market opportunities to materialize; changes in foreign exchange rates; our ability or delay in integrating acquired businesses; transaction expenses; and other risks discussed from time to time in the Company s Securities and Exchange Commission filings and reports, including the Company s Annual Report on Form 10-K for the year ended In addition, such statements could be affected by general industry and market conditions and growth rates and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), this financial supplement contains Non- GAAP financial measures which are defined below and are reconciled to GAAP financial measures: Non-GAAP net income is defined as GAAP net income before certain items (adjustments) such as : restructuring, facility move and project costs, acquisition-related expenses, the amortization of intangibles and discrete tax items that we believe are either not representative of our ongoing operating performance or affect the comparability of results over time. Non-GAAP net income should not be construed as a substitute for net income as defined by GAAP. However, we regard non- GAAP net income as a complement to GAAP net income in assessing our financial performance over time and in the future. Adjusted EBITDAS is defined as income from continuing operations before depreciation and amortization and stock-based compensation and certain other items (adjustments) such as: restructuring, facility move and project costs, and acquisition-related expenses that we believe are not representative of our ongoing operating performance. Adjusted EBITDAS should not be construed as a substitute for net income from continuing operations or net cash provided by (used in) operating activities (all as determined in accordance with GAAP) for the purpose of analyzing our operating performance, financial position and cash flows, as adjusted EBITDAS is not defined by GAAP. However, we regard adjusted EBITDAS as a complement to net income from continuing operations and other GAAP financial performance measures, by including an indirect measure of operating cash flow. Page 6