FSI International Posts 3Q Financial Results

FSI International, a manufacturer of capital equipment for the microelectronics industry, reported financial results for the third quarter of fiscal 2009 and for the first nine months ended May 30.

In a release dated June 30, the company stated:

Fiscal 2009 Third Quarter and First Nine Months

- Sales for the third quarter of fiscal 2009 were $15.4 million, including the ORION system revenue that was deferred at the end of the second quarter, compared to $20.3 million for the same period in fiscal 2008. The company's net loss for the third quarter of fiscal 2009 was $2.8 million, or $0.09 per share, compared to a net loss of $1.4 million, or $0.05 per share, for the third quarter of fiscal 2008.

- Sales for the first nine months of fiscal 2009 were $36.3 million, compared to $64.2 million for the same period of fiscal 2008. The company's net loss for the first nine months of fiscal 2009 was $17.6 million, or $0.57 per share, as compared to a net loss of $4.6 million, or $0.15 per share for the first nine months of fiscal 2008.

- In the first nine months of fiscal 2009, we recorded approximately $4.0 million, or $0.13 per share, of severance costs associated with the March 2009 restructuring and headcount and cost reduction initiatives and an increase in the company's inventory obsolescence reserves. There were no severance or significant obsolescence costs recorded in the first nine months of fiscal 2008.

Don Mitchell, FSI chairman and chief executive officer, said, "In March 2009, we implemented a further reduction in management salaries, established two shutdown weeks, reduced our headcount and enacted other cost reduction initiatives. Since the start of fiscal 2009, the company has implemented headcount and other cost reductions that are expected to reduce the company's annual operating cost by approximately $11 to $12 million. With these actions we believe our quarterly breakeven revenue level has been lowered to between $14 and $17 million.

"Our third quarter cash used in operating activities was held to $394,000. As a result of the cost reduction initiatives implemented in fiscal 2009, the company's quarterly operating cash flow neutral revenue level is believed to be in the $12 to $14 million range, depending on the gross margin rate and shipment/accounts receivable collection timing."

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