Writedown Saps GSI Earnings; Revenues Climb
BEDFORD, Mass., March 6, 2015 — Earnings at GSI Group Inc. took a hit in 2014 due to lowered expectations for the company’s NDS Surgical Imaging subsidiary.
GSI reported a net loss of $24.3 million, compared to net income of $7.3 million in 2013. The company said the writedown did not affect its cash flow or operations.
Its 2014 adjusted EBITDA (the company’s income before deducting taxes, interest and other considerations) was $56 million, representing 11 percent year-over-year growth. Revenue for the year was $364.7 million, an increase of 15 percent from 2013, primarily as a result of GSI’s acquisition of Jadak last March. Jadak contributed $45.4 million in revenue.
“We delivered financial results in line with our expectations, while making significant progress against our strategic priorities,” said CEO John Roush. “By leveraging the success of our productivity initiatives and investing in new products for both advanced industrial and medical applications, we believe we are well positioned to deliver profitable revenue growth in 2015.”
The company expects revenue of approximately $380 million in 2015, representing organic growth of 4 to 5 percent.
Meanwhile, the company last month acquired Applimotion Inc. of Loomis, Calif., for $13 million in cash. Applimotion develops motor and motion control technology for OEM equipment suppliers.
GSI develops photonics and motion-control components and subsystems to OEMs in the medical equipment and advanced industrial technology markets. Technologies include laser sources, laser scanning and beam delivery products, optical data collection and machine vision technologies, medical visualization and informatics solutions.
For more information, visit www.gsig.com.
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