What happened
Shares of Electro Scientific Instruments (ESIO +0.00%) have jumped today, up by 15% as of 1:30 p.m. EDT, after the company reported strong fiscal first-quarter earnings.
So what
Revenue in the first quarter rose to $72.7 million, which led to non-GAAP net income of $13 million, or $0.38 per share. On a GAAP basis, net income was $2.9 million, or $0.08 per share.
In a statement, CEO Michael Burger said, "Orders in the first quarter more than doubled from a year ago to $76.6 million, driven by flex drilling and good demand in Service and Component Test." The company also continues to make progress with its restructuring program.
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Now what
In terms of guidance, Electro Scientific expects revenue in the second quarter to be in the range of $63 million to $70 million, with non-GAAP earnings per share of $0.25 to $0.30. Burger noted that the "broad market environment is healthier than it was a year ago," while acknowledging that the industry is susceptible to seasonal fluctuations.
On the conference call, Burger said that just about all of the cost-reduction actions associated with the restructuring have been completed, and a new management team is onboard with a new organizational structure that should improve execution. The company has also been working to reduce its fixed-cost structure, which should be "fully realized" by the end of the current quarter.
