HILLSBORO, Ore., Nov. 3, 2009 (GLOBE NEWSWIRE) -- FEI Company (Nasdaq:FEIC) reported increased earnings on comparable revenue for the third quarter ended October 4, 2009. Earnings per share exceeded company guidance, revenue was near the high end of guidance and the book-to-bill ratio in the quarter was 1.06 to 1.

For the quarter, net bookings were $149.7 million, including a $6.3 million upward revaluation of the backlog of unfilled orders due to changes in foreign exchange rates. Total bookings were 5% below second-quarter bookings of $157.8 million and 15% below last year's record third quarter total of $175.3 million. Net sales of $140.8 million were up slightly compared to the second quarter of 2009 and down 1% from the third quarter of 2008. The backlog at the end of the quarter was a record $345.7 million, of which approximately 90% is expected to ship in the next 12 months.

Net income for the third quarter of 2009 was $6.1 million, up 66% compared with $3.7 million in the second quarter of 2009 and up 53% compared with $3.9 million in last year's third quarter. Diluted earnings per share in the latest quarter were $0.16, compared with $0.10 in the second quarter of 2009 and $0.11 in the third quarter of 2008. Operating income in the quarter was $7.9 million, compared with $6.6 million in the second quarter of 2009 and $6.2 million in last year's third quarter. Restructuring expenses in the latest quarter reduced operating income by $0.6 million or $0.01 per diluted share. The tax rate for the latest quarter was 14.5%, compared with 28.4% in the second quarter and 29.8% in last year's third quarter.

During the quarter the company continued to improve its balance sheet and liquidity. Total cash and investments increased by $19.9 million in the quarter to $403.9 million, and shareholders' equity increased by $20.5 million to $564.0 million. Net cash provided by operating activities was positive $20.0 million for the quarter.

"FEI performed well in a seasonally weak quarter," said Don Kania, president and CEO of FEI. "Bookings were solid, as strength in Research and Industry, including orders related to U.S. science-based stimulus funding for science investment, offset expected variability in Electronics and Life Sciences. We expect improved bookings, revenue and earnings in the fourth quarter. Despite the weakening dollar, we expect to enter 2010 with good momentum, based on a record backlog, ongoing stimulus funding and an array of recently introduced new products."

Bookings and revenue comparisons for the company's market segments and other data are included in the supplementary information attached to this release, along with detailed statements of operations and balance sheets.

Results for the first nine months of 2008 have been adjusted for the effect of the required adoption on January 1, 2009 of guidance within the FASB's Accounting Standards Codification, Section 470-20, "Debt-Debt with Conversion and Other Options" -- formerly FSP No. APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Conversion)". The restatement reduced reported net income and diluted earnings per share for last year's first three quarters by $6.3 million and $0.15 per share. The restatement is related to the company's zero percent convertible notes. Because the notes were paid off in June 2008, there was no restatement of the Statement of Operations for the third quarter of 2008 or later periods.

Guidance for Q4 2009

Assuming a euro/dollar exchange rate of $1.45, FEI expects net sales in the fourth quarter of 2009 to be in the range of $145 million to $152 million. Bookings are expected to be at least $150 million. GAAP earnings per share are expected to be in the range of $0.16 to $0.21, including estimated restructuring charges of approximately $0.03 per share.

Investor Conference Call -- 2:00 p.m. Pacific time, Tuesday, November 3, 2009

Parties interested in listening to FEI's quarterly conference call may do so by dialing 1-877-941-1848 (domestic, toll-free) or 1-480-629-9722 (international) and asking for the FEI Third Quarter Earnings call, # 4175238. The call can also be accessed via the web by going to FEI's Investor Relations page at www.fei.com, where the webcast will also be archived. A telephone replay of the call will also be accessible for one month by dialing 1-800-406-7325 (U.S.) or 1-303-590-3030 (international) and entering the access code 4175238#.

About FEI

FEI (Nasdaq:FEIC) is a leading diversified scientific instruments company. It is a premier provider of electron and ion-beam microscopes and tools for nanoscale applications across many industries: industrial and academic materials research, life sciences, semiconductors, data storage, natural resources and more. With a 60-year history of technological innovation and leadership, FEI has set the performance standard in transmission electron microscopes (TEM), scanning electron microscopes (SEM) and DualBeams(TM), which combine a SEM with a focused ion beam (FIB). FEI's imaging systems provide 3D characterization, analysis and modification/prototyping with resolutions down to the sub-Angstrom (one-tenth of a nanometer) level. FEI's NanoPorts in North America, Europe and Asia provide centers of technical excellence where its world-class community of customers and specialists collaborate. FEI has approximately 1,800 employees and sales and service operations in more than 50 countries around the world. More information can be found at: www.fei.com.

The FEI Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6379

Safe Harbor Statement

This news release contains forward-looking statements that include our guidance for the fourth quarter of 2009 and future periods; the expected shipment of our backlog; expectations about operating expenses and restructuring expense; expectations for future revenue, earnings, bookings and backlog; expectations about foreign currency rates and the impact on our results; government economic stimulus spending; and product sales and performance, and performance of certain market segments. Factors that could affect these forward-looking statements include, but are not limited to, the global economic environment; the timing, size, execution and ultimate success of government stimulus programs; lower than expected customer orders and the potential weakness of the Research & Industry, Electronics and Life Sciences market segments; bankruptcy or insolvency of customers or suppliers; cyclical changes in the data storage and semiconductor industries, which are the major components of Electronics market revenue; fluctuations in foreign exchange, interest and tax rates; changes in tax rate and laws and accounting rules regarding taxes; the ongoing determination of the effectiveness of foreign exchange hedge transactions; valuation of the auction rate securities we hold and classification of them on the balance sheet; reduced profitability due to failure to achieve or sustain margin improvement in service or product manufacturing; the relative mix of higher-margin and lower-margin products; failure to achieve expected cost reductions and other improvements from restructuring plans; risks associated with shipping a high percentage of the company's quarterly revenue in the last month of the quarter; customer requests to defer planned shipments; failure of customers to adopt new technologies; increased competition and new product offerings from competitors; lower average sales prices and reduced margins on some product sales due to increased competition; failure of the company's products and technology to find acceptance with customers; delays in new product introduction and the inability to manufacture products in required volumes; inability to deploy products as expected or delays in shipping products due to technical problems or barriers; shipment delays due to supply chain problems; changes to or potential additional restructurings and reorganizations not presently anticipated; reduced sales due to geopolitical risks; changes in trade policies and tariff regulations; changes in the regulatory environment in the nations where we do business; additional selling, general and administrative or research and development expenses; additional costs related to future merger and acquisition activity; and failure of the company to achieve anticipated benefits of acquisitions and collaborations, including failure to achieve financial goals and integrate future acquisitions successfully.