FLOWE Flow International (MM)

KENT, Wash., Dec. 2 /PRNewswire-FirstCall/ -- Flow International Corporation (NASDAQ:FLOWE), the world's leading supplier of ultrahigh-pressure waterjet products, yesterday reported results and filed the Form 10-Q for its fiscal 2006 first quarter ended July 31, 2005. FLOW had previously announced preliminary first quarter financial results on September 15, 2005. Compared to the previously announced results, the Company has made adjustments to cost of sales, operating expenses and to items below the operating income line. The effect of these adjustments, compared to the previously announced preliminary results, is shown below. The adjustments did not impact previously announced sales or cash flows for the quarter. -- Operating income decreased by $508,000 to $1.9 million. Net income decreased by $686,000 to $22,000 and earnings per basic and diluted earnings per share decreased from $0.02 to $0.00. This decrease was primarily the result of the recording of additional costs related to the disposition of Avure, contracts in progress, and compensation expense Final results for the fiscal 2006 first quarter ended July 31, 2005 are reported in the financial tables that follow. With the filing of its Form 10-Q, the Company will again be in compliance with NASDAQ listing requirements. About Flow International Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet cutting technology to industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit http://www.flowcorp.com/. Contact: John Leness General Counsel 253-850-3500 Flow International Corporation Consolidated Statement of Operations (Unaudited) Dollars in thousands, except per share data Three months ended July 31, 2005 2004 % Change Sales $49,729 $48,982 2% Cost of sales 29,106 31,087 -6% Gross margin 20,623 17,895 15% Operating expenses: Marketing 8,545 7,309 17% Research and engineering 2,691 2,604 3% General and administrative 7,366 5,728 29% Restructuring 98 -- NM Financial Consulting -- 623 -100% Operating expenses 18,700 16,264 15% Operating income 1,923 1,631 18% Interest expense, net (798) (3,095) -74% Other expense, net (226) (170) -33% Income (loss) before taxes 899 (1,634) NM Income tax provision (877) (706) -24% Net Income (loss) $22 $(2,340) NM Earnings (loss) per share: Basic $0.00 $(0.15) NM Diluted $0.00 (0.15) NM Weighted average shares outstanding (000): Basic 34,299 15,686 Diluted 36,012 15,686 NM = not meaningful Flow International Corporation Statement of Operations Operations Breakdown (Unaudited) Dollars in thousands, except per share data Three Months ended July 31, 2005 Flow Avure Waterjet Technologies Consolidated Systems Sales $41,986 $7,743 $49,729 Cost of sales 24,252 4,854 29,106 Gross margin 17,734 2,889 20,623 Operating expenses 15,568 3,132 18,700 Operating income (loss) 2,166 (243) 1,923 Three Months ended July 31, 2004 Flow Avure Waterjet Technologies Consolidated Systems Sales $38,299 $10,683 $48,982 Cost of sales 24,326 6,761 31,087 Gross margin 13,973 3,922 17,895 Operating expenses 12,940 3,324 16,264 Operating income (loss) 1,033 598 1,631 Flow International Corporation Supplemental Data (Unaudited) Dollars in thousands Three months ended July 31, 2005 2004 % Change Divisional revenue breakdown: Flow Waterjet Systems: Systems $28,721 $25,900 11% Consumable parts and services 13,265 12,399 7% Total 41,986 38,299 10% Avure Technologies Fresher Under Pressure 2,337 3,868 -40% General Press 5,406 6,815 -21% Total 7,743 10,683 -28% $49,729 $48,982 2% Geographic revenue breakdown: United States $28,954 $26,979 7% Rest of Americas 4,181 4,895 -15% Europe 10,826 10,757 1% Asia 5,768 6,351 -9% $49,729 $48,982 2% Depreciation and amortization expense $1,165 $1,322 -12% Capital spending $519 $329 58% Flow International Corporation Condensed Balance Sheet Data (Unaudited) Dollars in thousands July 31, April 30, 2005 2005 % Change Cash, including restricted cash $17,746 $13,445 32% Receivables, net 28,047 38,325 -27% Inventories 26,034 24,218 7% Total current assets 80,366 84,666 -5% Total assets 112,512 118,467 -5% Total debt $17,617 $19,147 -8% Total liabilities 82,156 87,356 -6% Total shareholders' equity 28,178 28,710 -2% DATASOURCE: Flow International Corporation CONTACT: John Leness, General Counsel of Flow International Corporation, +1-253-850-3500 Web site: http://www.flowcorp.com/

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