Targeted Stock: Electro Scientific Industries, Inc. (NASDAQ: ESIO)

On Monday, Electro Scientific Industries, Inc. (NASDAQ: ESIO) shares recorded trading volume 435,066 shares as compared to its average volume of 684,393 shares. The shares price traded between $14.82 and $15.49 during the last trading session above/below with -0.47 percent at $14.9. The company has 34.14M shares outstanding and market value of 511.044M. Over the one year trading period, the stock has a peak price of $27.72 and its down is recorded at $14.82.

Electro Scientific Industries, Inc. (ESIO), an innovator of laser-based manufacturing solutions for the micro technology industry, recently reported results for its fiscal 2019 first quarter ended June 30, 2018. Financial measures are provided on both a GAAP and a non-GAAP basis. Non-GAAP results exclude the impact of purchase accounting, equity compensation, restructuring, and other items shown in the non-GAAP reconciliation table below.

First quarter revenue was $110.6M, contrast to $72.7M in the first quarter of last fiscal year. GAAP net income was $31.1M or $0.87 per diluted share, contrast to net income of $2.9M or $0.08 per diluted share one year ago. On a non-GAAP basis net income was $34.6M or $0.96 per diluted share, contrast to net income of $13.0M or $0.38 per share in the previous fiscal year’s first quarter.

Balance Sheet and Cash Flow
At quarter end, total cash, restricted cash and current investments raised to $131.0M. The company generated $9.8M of cash from operations during the quarter despite sequential raises in inventory and accounts receivable that resulted from the timing of consumer shipments.

Second Quarter 2019 Outlook
Based on current market and backlog conditions, revenues for fiscal 2019 second quarter are predictable to be between $80 and $90M. Non-GAAP earnings per diluted share is predictable to be $0.52 to $0.62.

Burger concluded, “I’m happy to see the same technology trends toward connected devices, automotive and 5G that led to strong demand for flex products have now resulted in raised demand for our MLCC test tools, strengthening our belief that overall company demand will remain above historical levels for the foreseeable future.”

The company will hold a conference call recently at 5:00 p.m. ET. The call will include a review of the financial results, operational performance and business outlook, followed by a question and answer session. The conference call can be accessed by calling 888-419-5570 (domestic participants) or 617-896-9871 (international participants). The conference ID number is 93200917. A live audio webcast can be accessed at www.esi.com.

Discussion of Non-GAAP Financial Measures
In this press release, we have presented financial measures which have not been determined in accordance with generally accepted accounting principles (GAAP) and are therefore non-GAAP financial measures. Non-GAAP, or adjusted, financial measures exclude the impact of purchase accounting, equity compensation, restructuring, and other items. We believe that this presentation of non-GAAP financial measures allows investors to assess the company’s operating performance by comparing it to previous periods on a more consistent basis. We have included a reconciliation of various non-GAAP financial measures to those measures stated in accordance with GAAP. Because our calculation of non-GAAP financial measures may differ from similar measures used by other companies, investors should be careful when comparing our non-GAAP financial measures to those of other companies.

Return on assets ratio of the Company was 43.60 percent and return on equity ratio was 63.60 percent while its return on investment ratio was 41.50 percent. The stock price switched down -8.82 percent 20-Days Simple Moving Average, dropped -21.55 percent from 50-Days Simple Moving Average and fell -21.94 percent from 200 Days Simple Moving Average.