FSI International (Nasdaq: FSII) reported earnings on March 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 25 (Q2), FSI International beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
FSI International reported revenue of $38.5 million. The three analysts polled by S&P Capital IQ predicted sales of $32.1 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $30.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The three earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.09 for Q2 were 31% lower than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.5%, 990 basis points worse than the prior-year quarter. Operating margin was 9.8%, 620 basis points worse than the prior-year quarter. Net margin was 9.6%, 640 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $50.4 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $150.2 million. The average EPS estimate is $0.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 116 rating the stock outperform, and nine members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give FSI International a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FSI International is outperform, with an average price target of $6.08.

Over the decades, small-cap stocks, like FSI International have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.