Rofin-Sinar Reports Results for the First Quarter Fiscal 2005 Strong S

    Business Editors/High-Tech Editors

    PLYMOUTH, Mich. & HAMBURG, Germany--(BUSINESS WIRE)--Feb. 7, 2005--Rofin-Sinar Technologies Inc. (NASDAQ:RSTI), one of the world's leading developers and manufacturers of high-performance laser beam sources and laser-based solutions, today announced results for its first fiscal quarter ended December 31, 2004.

    FINANCIAL HIGHLIGHTS

    (dollars in thousands, except per share data)

Three months ended % Change

------------------------------------- 12/31/04 12/31/03 -------------------------------------

Net Sales $91,357 $71,058 + 29% Net Income $8,518 $5,205 + 64% Earnings Per Share Diluted Basis $0.55 $0.41

    The diluted earnings per share calculation is based on the weighted-average shares outstanding and the potential dilution from common stock equivalents (stock options) for each period presented, which was 15.5 million and 12.5 million for the fiscal quarters ending December 31, 2004 and 2003.
    "We are very pleased with our first quarter results", commented Guenther Braun, interim Chairman and CEO of RSTI. "Revenues and margins were solid in all business segments. Driven by contributions from our recently acquired companies, PRC and Lee Laser, as well as continued organic growth, we achieved a new record high in order entry."

    FINANCIAL REVIEW

    Net sales totaled $91.4 million for the first quarter ended December 31, 2004, a 29% increase over the comparable quarter of fiscal 2004. Gross profit totaled $36.2 million, or 40% of net sales, compared to $27.8 million, or 39% of net sales in the same period of fiscal year 2004. Net income amounted to $8.5 million, or 9% of net sales, compared to $5.2 million or 7% of net sales in the comparable quarter last fiscal year. Diluted earnings per share equaled $0.55 for the quarter based upon 15.5 million weighted average common shares outstanding, compared to diluted earnings per share of $0.41 based upon 12.5 million weighted average common shares outstanding for the same period last fiscal year.
    The weakening of the US-Dollar, mainly against the Euro, resulted in an increase in net sales of $4.9 million in the first quarter.
    SG&A increased by $2.9 million to $16.9 million, representing 19% of net sales. In addition, the amortization expense in the first quarter of fiscal 2005 increased by $1.1 million over the comparable period last year to $1.6 million (2% of net sales) due to the intangibles acquired with PRC and Lee Laser. Net R&D expenses increased by $0.8 million to $5.8 million and represent 6% of net sales.
    Sales of lasers for marking and micro applications increased by 21% to $42.2 million and represent 46% of total revenues. Sales of laser products used for macro applications increased by 36% to $49.2 million, accounting for the remaining 54% of total sales.
    Net sales in North America doubled to $28.4 million, which is a new quarterly record. In Europe/Asia, net sales increased by 11% to $63.0 million.
    Order entry in the quarter was a record high of $103.2 million and resulted in a record order backlog of $84.6 million on December 31, 2004. This corresponds to an increase in order backlog of $11.8 million, or 16% from the previous quarter.

    OUTLOOK

    "Our goals for the next fiscal quarters include continuing our expansion in Asia with the formation of a Chinese subsidiary, and further capitalizing on our large product portfolio and broad technology base," commented Guenther Braun.
    With operational headquarters in Plymouth, Michigan, and Hamburg, Germany, Rofin-Sinar Technologies Inc. designs, develops, engineers and manufactures laser sources and laser-based system solutions for a wide range of applications. With production facilities in the US, Germany, UK, Sweden, Singapore and Japan, Rofin-Sinar is one of the world's leading designers and manufacturers of industrial lasers and currently has more than 20,000 laser units installed worldwide and serves more than 3,000 customers. Rofin-Sinar's shares trade on the Nasdaq National Market System under the symbol RSTI and are listed in Germany in the "Prime Standard" of the Frankfurt Stock Exchange under ISIN US7750431022. Additional information is available on Rofin-Sinar's home page: http://www.rofin.com.

    A conference call is scheduled for 11:00 AM EST, today, Monday, February 7, 2005. This call is also being broadcast live over the internet in listen-only mode. For live webcasting, go to http://www.rofin.com at least 10 minutes prior to the call in order to download and install any necessary software. (For more information, please contact Yuhau Lin at 212-889-4350 or Mark Walter at +44(0) 207 936 0400)

    ROFIN-SINAR TECHNOLOGIES INC.

    CONSOLIDATED STATEMENTS OF EARNINGS

    (in thousands, except per share data)

Three Months Twelve Ended Months Ended (audited)

12/31/04 12/31/03 9/30/04 --------- --------- ---------

- Macro $49,127 $36,129 $158,820 - Marking/Micro 42,230 34,929 163,808 Net Sales 91,357 71,058 322,628

Costs of goods sold 55,185 43,224 190,473 --------- --------- ---------

Gross profit 36,172 27,834 132,155

Selling, general and administrative expenses 16,859 13,978 58,336 Intangibles amortization 1,566 449 2,389 Research and development expenses 5,784 5,027 20,473 --------- --------- ---------

Income from operations 11,963 8,380 50,957

Other expenses (income) (1,208) (473) 171 --------- --------- ---------

Income before income tax and minority interest 13,171 8,853 50,786

Income tax expense 4,589 3,385 17,648 --------- --------- ---------

Income before minority interest 8,582 5,468 33,138

Minority interest 64 263 708 --------- --------- ---------

Net income 8,518 5,205 32,430 ========= ========= =========

Net income per common share (a)"diluted" basis $0.55 $0.41 $2.31 (b)"basic" basis $0.57 $0.44 $2.41

    (a) The basic net income per common share calculation is based on the weighted-average shares outstanding for each period presented, which was 15.0 million and 12.0 million for the fiscal quarters ending December 31, 2004 and 2003, and 13.5 million for the 12 month period ending September 30, 2004.
    (b) The diluted net income per common share calculation is based on the weighted-average shares outstanding and the potential dilution from common stock equivalents (stock options) for each period presented, which was 15.5 million and 12.5 million for the fiscal quarters ending December 31, 2004 and 2003, and 14.0 million for the 12 month period ending September 30, 2004.

    ROFIN-SINAR TECHNOLOGIES INC.

    CONSOLIDATED BALANCE SHEETS

    (dollars in thousands)

At At 12/31/04 9/30/04

ASSETS Cash and cash equivalents $ 97,487 $100,266 Trade accounts receivable, net 76,967 80,314 Inventories net 118,475 106,420 Other current assets 13,571 10,633 Total current assets 306,500 297,633 Net property and equipment 37,653 34,128 Other non-current assets 87,761 82,045 Total non-current assets 125,414 116,173

Total assets $ 431,914 $413,806

LIABILITIES AND STOCKHOLDERS' EQUITY Short-term debt 35,648 49,819 Accounts payable, trade 16,295 17,306 Other current liabilities 64,478 66,968 Total current liabilities 116,421 134,093 Long-term debt 15,850 4,983 Other non-current liabilities 18,579 17,346 Total liabilities 150,850 156,422

Net stockholders' equity 281,064 257,384

Total liabilities and stockholders' equity $ 431,914 $413,806

    The Company's conference call will include discussions relative to the current quarter results and some comments regarding forward-looking guidance on future operating performance.
    "Safe Harbor" Statement Under the Private Securities Litigation Reform Act.

    Certain information in this press release that relates to future plans, events or performance, including statements such as formation of a Chinese subsidiary and to capitalize on our large product portfolio and our broad technology base is forward-looking and is subject to important risks and uncertainties that could cause actual results to differ. Actual results could differ materially based on numerous factors, including currency risk, competition, risk relating to sales growth in CO2, diode, and Nd:YAG lasers, cyclicality, conflicting patents and other intellectual property rights of third parties, potential infringement claims and future capital requirements, as well as other factors set forth in our annual report on form 10-K. These forward-looking statements represent the Company's best judgment as of the date of this release based in part on preliminary information and certain assumptions which management believes to be reasonable. The Company disclaims any obligation to update these forward-looking statements.

--30--AC/lo*

CONTACT: Rofin-Sinar Thorsten Frauenpreiss or Guenther Braun 734-416-0206 or 011-49-40-733-63-256

KEYWORD: MICHIGAN GERMANY INTERNATIONAL EUROPE INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS EARNINGS SOURCE: Rofin-Sinar Technologies Inc.

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