maker of the "flow jet" as seen on "American Chopper"
Get Profile for:
Flow International Corp.
23500-64th Avenue South
Kent, WA 98032
United States - Map
Phone: 253-850-3500
Fax: 253-813-3285
Web Site: http://www.flowcorp.com
DETAILS
Index Membership: N/A
Sector: Industrial Goods
Industry: Machine Tools & Accessories
Full Time Employees: 756
BUSINESS SUMMARY
Flow International Corporation engages in the development and manufacture of ultrahigh-pressure (UHP) waterjet and abrasive waterjet cutting and machining technology for manufacturing and surface preparation cleaning markets worldwide. It also provides specialty engineered robotic systems designed for material removal and separation of various materials and for factory automation. The company's product line includes waterjet cutting and industrial cleaning systems, as well as UHP food processing, UHP industrial presses, and automated assembly systems. It provides system solutions for industries, including aerospace, automotive, stone and tile, tool and die, job shop, paper, industrial cleaning, and food production. Flow International sells its products directly, as well as through distributors or agents. The company, formerly known as Flow Systems, Inc., was founded in 1974. Flow International is headquartered in Kent, Washington with additional offices in Indiana, Michigan, Louisiana, Canada, Germany, Sweden, Taiwan, Japan, and China.
----------------------------------------------------------------------------------------------
big beat, top and bottom.
Flow International Announces Fiscal 2008 Third Quarter Results
Thursday March 6, 6:00 am ET
EPS Triples on 18% Increase in Revenues
KENT, Wash., March 6 /PRNewswire-FirstCall/ -- Flow International Corporation (Nasdaq: FLOW - News), the world's leading developer and manufacturer of industrial waterjet machines used for cutting and cleaning applications around the world, today reported results for its fiscal 2008 third quarter ended January 31, 2008.
For the quarter, Flow reported that consolidated sales grew 18% over the prior-year quarter to $66.3 million. Earnings increased more than threefold to $0.16 per basic and diluted share compared to $.05 in the prior-year quarter. Net income totaled $5.9 million, up from $2.0 million last year.
"Our results this quarter further demonstrate the potential strength in global demand for our unique cutting solutions," said Charley Brown, Flow's President and Chief Executive Officer. "The vast majority of global shapecutting continues to be performed by saws, blades, and other traditional methods. We're working to change that through ongoing innovation and continuing to build market awareness of the superior benefits of waterjets. Our industry-leading 87,000 psi waterjet systems are generating strong interest in our domestic markets and abroad."
Operations Review
For the fiscal 2008 third quarter, compared to the prior-year quarter:
* System sales grew 17% to $49.1 million globally, on increased
marketplace awareness of the advantages of waterjets in general, as
well as from recent product development and technology enhancements
by Flow. Revenues from consumables increased 22% to $17.2 million
globally, as the Company continues to increase its installed base of
machines.
* In North America Waterjet the standard systems and spare parts
business increased 18% to a record $30.3 million as a result of
ongoing market penetration and adoption of the Hyperpressure 87,000
psi product line. Aerospace industry revenues, which can fluctuate
considerably depending on the timing of individual project's
manufacturing schedules and shipments, increased 1% to $2.8 million.
Flow continues to be optimistic regarding the aerospace business and
expects that the shift in the timing of several large commercial
aerospace systems orders will lead to increased revenues during the
coming quarters.
* Europe and South America sales, which comprise the Other
International Waterjet segment, increased 34% to $17.5 million on
continued strong demand for standard shapecutting systems and spare
parts, as well as a weak U.S. dollar relative to the Euro. Asia
sales increased 1% to $9.8 million, reflecting the first quarterly
increase in a year, indicating that the business has begun to
recover from the impacts of the ongoing slowdown in the flash memory
semiconductor industry and last year's internal investigations.
* The Canada-based Applications segment increased 22% to $5.8 million,
mostly on the strengthening Canadian Dollar. In September, Flow
announced that it would no longer pursue sales of non-waterjet
automation systems in order to focus solely on sales of systems that
integrate waterjet cutting technology. The last non-waterjet system
has now left the factory and is in the installation process.
* Gross margins, which continued to show improvement from earlier in
the year, were 42%, consistent with the prior-year period. Operating
expenses were down 10% due to tight expense control combined with
lower professional fees including the year-over-year impact of the
Asia Investigations that were concluded in March 2007.
Omax Acquisition Update
As previously announced, on December 4, 2007, Flow entered into an exclusive option agreement to negotiate the acquisition of OMAX Corporation, a Kent, WA-based privately held provider of precision-engineered, computer-controlled, abrasive waterjet systems. On February 6, 2008, Flow received a request for additional information and documentary material from the Federal Trade Commission (FTC) in connection with the proposed acquisition. Flow is cooperating fully with the FTC to provide the necessary information and expects to complete the acquisition.
Conference Call
Flow plans to hold a conference call to discuss these results today: Thursday, March 6 at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time). The conference call may be heard by dialing 1-303-262-2054. A 48-hour replay will be available following the call by dialing 1-303-590-3000; the replay passcode is 11109620. A live audio Webcast of the conference call may be found in the investor section at http://www.flowcorp.com. A Webcast replay of the call will also be available for two weeks.
About Flow International
Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet cutting technology to industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit http://www.flowcorp.com.
Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with continuing to increase its installed base of machines, being optimistic regarding the aerospace business and the expectation of increased aerospace revenues during the coming quarters, the recovery of the Asia business has begun, strong demand for standard shapecutting systems and spare parts, and the expectation that the OMAX acquisition will be completed, Other risks are described in the Company's filings with the Securities and Exchange Commission (the "SEC") over the last 12 months, copies of which are available from the SEC or may be obtained from the Company.
-----------------------------------------
currently up19%
volume strong on FLOW