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BTU International Reports Fourth Quarter and Fiscal Year 2008 Results

^{Published on 2009-02-24 14:16:14, Last Modified on 2009-02-24 14:18:36 - Market Wire}
 

NORTH BILLERICA, Mass.--([ BUSINESS WIRE ])--BTU International, Inc. (Nasdaq: BTUI), a leading supplier of advanced thermal processing equipment for the alternative energy and electronics manufacturing markets, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008.

Fourth quarter net sales were $14.7 million, down 28.6 percent compared to $20.6 million in the preceding quarter, and down 19.6 percent compared to $18.3 million for the same quarter a year ago. Net loss for the fourth quarter of 2008 was $2.2 million, or a loss of $0.23 per basic share, compared to a net income of $0.7 million, or $0.07 per diluted share, in the preceding quarter, and compared to a net income of $0.6 million, or $0.06 per diluted share, in the fourth quarter of 2007.

Net sales for the year were $72.3 million, up 13.4 percent compared to $63.7 million for the year 2007. Net loss for 2008 was $1.1 million, or a loss of $0.12 per basic share, compared to a net income of $1.9 million, or $0.20 per diluted share, for the year 2007.

Comments

Commenting on the company's performance, Paul J. van der Wansem, BTU chairman and CEO, said, "In spite of the current global economic crisis, our alternative energy business continued to grow in 2008 with sequential quarterly revenue increases. Fourth quarter revenues were up by 20 percent over the third quarter. For the year, alternative energy revenues grew by almost 70 percent, representing approximately 28 percent of our overall systems business.

"On the other hand, our electronics assembly equipment business followed industry trends and declined by 45 percent in the fourth quarter as compared to the third quarter."

BTU completed the year with a strong balance sheet. Cash flow for 2008 was a positive $2.4 million. At year end, the cash balance was $27.5 million, which the company believes will enable it to fund its growing alternative energy business.

Outlook

"During the past year," said van der Wansem, "we made a strategic choice to embark on a program of investment in our alternative energy business. As a result, we are in the process of introducing several new products for the solar industry, targeting the production of both silicon based and thin-films based solar cells.

"As regards our electronics business, we expect that the first half of 2009 will be very challenging. This business, which is driven to a large degree by consumer spending, could be down by over 50 percent in 2009, impacting our top line and bottom line performance with losses expected in the first two quarters.

"We are encouraged by the initial reception of the upcoming new solar product introductions and the continuing growth of our solar business, and we are optimistic about achieving increased revenues during the year. As our alternative energy business grows to become the major part of our business, we expect to become profitable in the second half.

"BTU has been through difficult business environments before, and we've proven our ability to come out the other side stronger than ever."

Teleconference and Simultaneous Webcast

BTU will be discussing its financial results, along with its outlook for the first quarter of 2009, in a conference call to be held today, February 24, at 5:00 p.m. Eastern Time. The dial-in number to participate in the conference call is 877-548-7907. A webcast of the conference call will be available on BTU's website at [ www.btu.com ]. Replays of the call will be available through March 10, 2009, and can be accessed at this website or by phone at (888) 203-1112, passcode: 9920496.

About BTU International

BTU International is a market-leading, global supplier of advanced thermal processing equipment to the alternative energy and electronics manufacturing markets. BTU equipment is used in solar cell, nuclear fuel and fuel cell manufacturing as well as in the production of printed circuit board assemblies and semiconductor packaging. 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 express or implied forward-looking statements regarding, among other things: (i) the company's expectation of the adequacy of its cash balances to fund operating losses and make new investments, (ii) the company's expectation of quarterly and fiscal year 2009 revenues and earnings, and (iii) and the company's expectation for continued growth in its sales in the alternative energy market and the decline in sales in the electronics market. 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 timely availability and acceptance of new products, 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, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2007. 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 February 24, 2009, 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.