This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Flow International Provides Preliminary Fourth Quarter Results

Announces Cost Reduction Initiatives Retains UBS and Commences Process to Evaluate Strategic Alternatives

KENT, Wash., June 7, 2013 (GLOBE NEWSWIRE) -- Flow International Corporation (Nasdaq:FLOW), the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, today provided a financial update and announced certain steps it is undertaking to reduce operating expenses and to enhance shareholder value.

For the 2013 fiscal fourth quarter ended April 30, 2013, the Company expects revenues to be approximately $58 million and operating profit to approximate breakeven. This compares to 2012 fiscal fourth quarter revenues of $63.4 million and operating income of $2.4 million.

"Prior to this quarter, we achieved record sales in three of the last four quarters and sequential growth in nine of the past ten quarters. In our recently completed fiscal fourth quarter, however, there was renewed uncertainty in the marketplace and orders were relatively uneven," said Charley Brown, President and CEO of Flow. "While we continue to experience robust demand in certain markets, we believe that macro-economic uncertainty is making some customers more cautious. That caution was evident in our fiscal fourth quarter and it continues today, leading us to expect similar revenues in our 2014 fiscal first quarter." 

Mr. Brown added, "We have already taken action to reduce our operating costs by approximately 10 percent, or $9 million on an annualized basis. In addition, we are in the process of increasing gross profit margins by 10 points on a recently launched line of new products, which should result in an additional annualized cost reduction of approximately $4 million. We expect to fully realize the benefits of our $13 million of annualized cost reduction initiatives by the end of fiscal 2014."

As a result of the cost reduction and other initiatives, the Company expects to record restructuring charges and other non-recurring costs of approximately $1.0 million in the 2014 fiscal first quarter. Excluding these charges, with revenue levels similar to the fourth quarter of fiscal year 2013, Flow expects to deliver operating income of approximately $2.0 million in the 2014 fiscal first quarter.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.98 0.36%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $238.50 -1.40%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs