FEI CO

CIK:0000914329|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Net sales:
Products	$ 191,161	$ 163,585	$ 353,439	$ 327,644
Service	68,204	60,604	134,570	117,361
Total net sales	259,365	224,189	488,009	445,005
Cost of sales:
Products	93,645	78,825	176,310	160,326
Service	39,275	33,259	77,982	67,303
Total cost of sales	132,920	112,084	254,292	227,629
Gross profit	126,445	112,105	233,717	217,376
Operating expenses:
Research and development	29,968	23,128	57,613	46,450
Selling, general and administrative	64,117	43,093	113,356	88,915
Restructuring and reorganization	0	(21)	(102)	(142)
Total operating expenses	94,085	66,200	170,867	135,223
Operating income	32,360	45,905	62,850	82,153
Other expense:
Interest income	199	254	383	465
Interest expense	(349)	(140)	(803)	(234)
Other, net	(1,016)	(704)	(1,837)	(1,788)
Total other expense, net	(1,166)	(590)	(2,257)	(1,557)
Income before income taxes	31,194	45,315	60,593	80,596
Income tax expense	6,254	7,983	12,751	15,252
Net income	$ 24,940	$ 37,332	$ 47,842	$ 65,344
Basic net income per share	$ 0.61	$ 0.90	$ 1.17	$ 1.57
Diluted net income per share	0.60	0.89	1.16	1.55
Cash dividends declared per share	$ 0.3	$ 0.3	$ 0.6	$ 0.55
Shares used in per share calculations:
Basic (in shares)	40,922	41,629	40,890	41,711
Diluted (in shares)	41,389	42,044	41,304	42,142

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015
Cash flows from operating activities:
Net income	$ 47,842	$ 65,344
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,681	12,063
Amortization	7,657	5,715
Stock-based compensation	11,869	10,494
Gain (loss) on disposals of property, plant and equipment and other	2	(116)
Income taxes (receivable) payable, net	(15,972)	6,547
Deferred income taxes	(2,790)	(4,785)
Decrease (increase), net of acquisitions, in:
Receivables, net	(6,003)	9,980
Inventories	(7,466)	(19,942)
Other assets	(16,861)	4,329
Increase (decrease), net of acquisitions, in:
Accounts payable	(7,747)	218
Accrued payroll liabilities	(2,184)	584
Accrued warranty reserves	676	590
Deferred revenue	8,243	6,412
Accrued restructuring and reorganization	(235)	(6,894)
Other liabilities	(1,213)	(1,555)
Net cash provided by operating activities	29,499	88,984
Cash flows from investing activities:
Decrease in restricted cash	17,507	4,392
Acquisition of property, plant and equipment	(10,790)	(7,869)
Payments for acquisitions, net of cash acquired	0	(5,377)
Purchase of investments in marketable securities	0	(48,240)
Redemption of investments in marketable securities	0	62,679
Other	(493)	(1,772)
Net cash provided by investing activities	6,224	3,813
Cash flows from financing activities:
Dividends paid on common stock	(24,518)	(20,877)
Withholding taxes paid on issuance of vested restricted stock units	(3,445)	(2,427)
Proceeds from exercise of stock options and employee stock purchases	5,895	7,873
Excess tax benefit for share based payment arrangements	308	879
Repurchases of common stock	(943)	(30,224)
Net cash used in financing activities	(22,703)	(44,776)
Effect of exchange rate changes	3,414	(15,334)
Increase in cash and cash equivalents	16,434	32,687
Cash and cash equivalents:
Beginning of period	300,911	300,507
End of period	317,345	333,194
Supplemental Cash Flow Information:
Cash paid for income taxes, net	29,197	10,597
Cash paid for interest	694	145
Increase in fixed assets related to transfers from inventories	7,407	4,077
Dividends declared but not paid	12,305	12,479
Accrued purchases of plant and equipment	791	443
Accrued repurchases of common stock	$ 0	$ 1,271

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 03, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 317,345	$ 300,911
Restricted cash	8,330	19,119
Receivables, net of allowances for doubtful accounts of $2,118 and $2,789	233,627	213,128
Inventories	200,304	170,513
Deferred tax assets	0	10,566
Other current assets	69,612	33,614
Total current assets	829,218	747,851
Long-term investments in marketable securities	9,221	8,677
Long-term restricted cash	16,481	22,113
Property, plant and equipment, net of accumulated depreciation of $143,206 and $130,029	164,521	155,608
Intangible assets, net of accumulated amortization of $44,997 and $36,849	60,777	35,943
Goodwill	257,281	145,607
Deferred tax assets	18,125	6,719
Long-term inventories	54,402	47,109
Other assets, net	22,968	180,222
Total Assets	1,432,994	1,349,849
Current Liabilities:
Accounts payable	53,141	58,708
Accrued payroll liabilities	40,131	38,643
Accrued warranty reserves	15,796	14,107
Deferred revenue	115,076	101,155
Income taxes payable	10,290	12,124
Accrued restructuring and reorganization	432	655
Other current liabilities	61,434	52,630
Total current liabilities	296,300	278,022
Long-term deferred revenue	46,397	44,745
Other liabilities	47,404	37,006
Commitments and contingencies
Shareholders’ Equity:
Preferred stock - 500 shares authorized; none issued and outstanding	0	0
Common stock - 70,000 shares authorized; 41,016 and 40,855 shares issued and outstanding, no par value	547,901	533,062
Retained earnings	560,757	538,053
Accumulated other comprehensive loss	(65,765)	(81,039)
Total Shareholders’ Equity	1,042,893	990,076
Total Liabilities and Shareholders’ Equity	$ 1,432,994	$ 1,349,849