Spectra-Physics Reports 24 Percent Revenue Growth

MOUNTAIN VIEW, Calif., July 30 -- Citing a well balanced business mix Spectra-Physics Inc., a majority-owned subsidiary of Thermo Electron Corp., reported that second-quarter net sales were $54.5 million, up 24 percent from $43.8 million for the second quarter of 2000. The company's book-to-bill ratio was 1.01, compared with 1.15 for the year-earlier quarter and with 1.07 for the prior quarter.

Second-quarter 2001 pro forma net income -- which excludes special pre-tax charges of $6.5 million related to excess inventories, a previously announced restructuring and legal expenses associated with certain litigation -- was $179,000, or $0.01 per diluted share. This compares with pro forma net income of $1.3 million, or $0.08 per diluted share, for the second quarter of 2000, which excludes a special pre-tax credit of $0.1 million. Including the special pre-tax charges, second-quarter 2001 net loss was $3.7 million, or a loss of $0.22 per diluted share.

"We sustained a healthy growth rate across four of our six major markets in the second quarter and first half of 2001, despite continued uncertainty in optical networking and semiconductor manufacturing," said Patrick L. Edsell, chairman, president and CEO of Spectra-Physics. "Even in a sluggish economy, our balanced business mix kept orders ahead of sales. Early in the second quarter, we effected an 11 percent reduction in force and centralized all European distribution operations in one location. We plan to continue managing costs and expenses cautiously, without compromising our strategic investments in telecommunications, computer and microelectronics manufacturing, and other high-growth market opportunities."