Electro Scientific Industries, Inc. (NASDAQ: ESIO) is a leading supplier of innovative manufacturing solutions for the microtechnology industry. Leveraging a range of laser-based technologies, the company helps industrial designers and process engineers control the power of light in order to transform materials used in the manufacture of key components for consumer electronics, wearable devices and semiconductor circuits.
Amongst an expansive portfolio of solutions and products, ESI’s advanced printed circuit board (PCB) solutions are particularly intriguing, as global demand for these circuit boards has been on the rise in recent years. According to a report by IPC, the global trade association serving the printed board and electronics assembly industries, total North American PCB shipments were up 9.7 percent year-over-year in June 2016 (http://nnw.fm/a57Xf). North American PCB orders, on the other hand, were down 9.7 percent in June from the previous year, creating potential for near-term softness in the market. However, ESI’s leadership team remains optimistic regarding the company’s current trajectory.
“Our core markets have good long-term growth drivers, we have a leading position, and we expect to see business levels return as capacity utilization increases,” Ed Grady, a member of the company’s board of directors, stated in a recent news release.
Since its founding in 1944, ESI’s commitment to delivering world-class systems expertise has helped in establish a position at the head of the evolving microtechnology space. With the proliferation of mobile technologies, the company has emerged as a market leader in providing laser drilling systems that meet the unique challenges presented by flexible PCB processing. Today, ESI provides production services for all of the world’s top 10 flexible circuit manufacturers.
Earlier this month, ESI gave prospective investors some additional insight into the company’s position within the microtechnology industry through the release of its financial results for its first quarter of fiscal 2017, which ended July 2, 2016. ESI achieved an 11 percent year-over-year increase in revenues for the quarter while making “significant strides in the placement and qualifications of our new products with multiple customers,” according to Grady. ESI recently set the stage for sustained growth throughout the balance of fiscal 2017 when it announced Michael Burger, former CEO of Cascade Microtech, Inc., as its next president and CEO. This change is set to take effect in early October.
“I look forward to taking the lead at ESI,” Burger stated in a news release. “The company has a long history of technology and market leadership. The company has made great progress to get back on a growth and profitability path and I believe we will continue to have many exciting opportunities in the future.”
Another recent move by ESI to shore up near-term growth was the acquisition of Visicon Technologies, Inc., a leading supplier of high-accuracy and high-throughput measurement and defect detection systems. In addition to bringing a strong portfolio of standalone defect detection systems for the medical device and consumer electronics markets under the ESI umbrella, the acquisition is expected to add roughly $10-20 million of annual revenue to the company’s books, making it accretive on an adjusted basis by the end of fiscal 2017. By diversifying its offerings, ESI will also look to enhance its ability to differentiate in the evolving laser micromachining market, effectively bolstering an industry position that it’s maintained for upward of seven decades.
For more information, visit www.ESI.com
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