This excerpt taken from the FLOW 8-K filed Feb 5, 2007.
2007 FIRST HALF RESULTS
Global Revenues up 16% and Net Income up 360%
in the First Half of Fiscal 2007
KENT, Wash., February 2, 2007 Flow International Corporation (Nasdaq: FLOW), the worlds leading developer and manufacturer of industrial waterjet machines used for cutting and cleaning applications around the world, today reported results for the six months ended October 31, 2006. For comparison purposes, fiscal 2007 first and second quarter financial schedules are also included at the end of this press release. On February 1, the Company filed with the Securities and Exchange Commission its Form 10-Qs for the quarters ended July 31 and October 31, 2006, bringing Flow back into compliance with the SECs filing requirements.
For the six months ended October 31, 2006, Flow reported an increase in consolidated sales of 16% to $107.8 million. Net income was $4.8 million, or $0.13 basic and diluted earnings per share. Results for the six months included a loss on the sale of discontinued operations of $726,000 related to the settlement of a working capital dispute with the purchaser of the Companys Avure business. Income from continuing operations for the six months ended October 31, 2006, was $5.5 million, $0.15 basic and diluted earnings per share. Earnings included approximately $1.5 million in costs related to the investigation in Asia.
By comparison, for the first six months ended October 31, 2005, Flow reported consolidated sales of $92.7 million and net income of $1.0 million or $0.03 basic and diluted earnings per share. Net Income was impacted by the gain on sale of the garnet distribution business, the loss on the sale of Avure and the fair value adjustment on warrants issued, totaling a net reduction of approximately $2.5 million. Income from continuing operations for the six months ended October 31, 2005 was $1.2 million or $0.04 basic and $0.03 diluted earnings per share.
Weve had six months of strong growth, with sales up 16% despite the significant internal resources diverted to complete the four-month investigation in Asia, said Stephen R. Light, Flows President and Chief Executive Officer. With strength in standard waterjet markets and flash memory markets, as with job shops and metal fabricators, the widespread global demand for our waterjets and the underlying pump technology continues unabated across an increasingly diverse range of industries. We continue to add bench-strength at the executive level and throughout our organization to ensure that we have the resources to manage our growth.