LeCroy CEO: On track for high end of FY08 guidance
LeCroy Corp. (Nasdaq: LCRY) CEO Tom Reslewic said the maker of electronic test equipment is seeing positive growth, steady sales and the firm has been able to translate the growth into profitability. Reslewic made the comments during a midday conference call.
“Looking forward with our lean cost structure and strong distribution channel, we think we’re in good position to realize the long-term profitability potential in our product pipeline,” Reslewic said. “With that as a background, we’re right on track for our plan for the year.”
The Chestnut Ridge, N.Y.-based company reiterated its fiscal 2008 revenue guidance for a range of $155 million to $165 million and operating income of between $12 million and $17 million.
“It seems clear that we’re well on our way to the high end of our earnings range for the year,” Reslewic said. “I still think sales will end in the middle of the range but earnings are on track to do a little better. Still, it’s unlikely to exceed the range.”
Before the opening, LeCroy reported second-quarter revenue of $40.6 million, which is slightly above analysts’ expectations of $40.09 million. During the year-ago quarter, the company posted $38.1 million in revenue.
“Orders were strong and we generated solid profit with significant cash,” CFO Sean O'Connor said.
LeCroy posted second-quarter net income of $1.2 million, or $0.10 per share, which is lower than Wall Street projections of earning $0.16 per share. A year earlier, the firm recorded a net loss of $7.7 million, or $0.67 per share.
Reslewic said the firm received 64% of its second-quarter orders during the first nine weeks of the period, up from 58% in the first quarter.
“The main event in our strong order story continues to be the performance of our European region,” Reslewic said. “We posted record orders in the European region.”
The chief executive said the firm is seeing “positive results” in the United States after a distribution channel restructuring. Prior to the restructuring, LeCroy had a shared sales force but now has a direct sales force.
In midday trading, LCRY shares are down 1.03%, or $0.09, at $8.66. Over the last 52 weeks, shares have ranged from $6.70 to $10.73.
