HILLSBORO, Ore., April 18 /PRNewswire/AsiaNet/ -- FEI Company (Nasdaq: FEIC) today announced quarterly results for its first fiscal quarter of 1997. On February 21, 1997, FEI closed its business combination with Philips Electron Optics (PEO). Therefore, results shown are those of the combined company which reflects results for PEO for the full quarter with the addition of results for the pre-combination FEI for only the period from February 21, 1997 through the end of the quarter. Net sales for the quarter ended March 31, 1997, were $32,241,000. Net loss for the quarter was $(41,339,000). Included in first quarter expenses are approximately $40 million in non-recurring, non-cash charges related to the PEO transaction and related restructuring. Eliminating PEO non-recurring charges, pro forma earnings per share were $(0.057) per share on pro forma net income of $(1,014,000). Combined backlog at April 18, 1997 has risen to a level of approximately $56 million. "I am very excited about how the new company is coming together. The technical synergies we foresaw as competitive leverage points are coming to fruition and we expect to accelerate our sales penetration in the next two quarters," said Bill Whitward, President of FEI Company. "We are now positioned to attack a total world market in excess of $1 billion. "A number of product innovations and new features will be introduced in the coming months that will allow us to address our substantial new market opportunities," stated Dr. Lynwood Swanson, Chairman of FEI Company. "We will focus resources where they best match the market opportunities and will pursue a selected product portfolio that will build market share over time." "FEI will continue to be a "growth" company but with a more secure market position." Except for the historical statements contained herein, the matters discussed in this news release, including market, resource allocation and integration expectations, are forward looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: difficulties encountered in the integration of the operations of FEI Company and Philips Electron Optics; business conditions and growth in the electronics, life sciences and material sciences industries and the general economy, both domestic and international; lower than expected customer orders; competitive factors, including pricing pressures, technological developments and products offered by competitors; technological difficulties and resource constraints encountered in developing new products; and the timely flow of competitive new products and market acceptance of those products. FEI COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands except share and per share data) (Unaudited) Three Months Ended March 29, 1997 SALES $32,241 COST OF SALES 22,134 Gross Profit 10,107 OPERATING EXPENSES Research and Development Costs 2,769 Selling, General and Administrative 7,242 Total Operating Expenses 10,011 Amortization of Goodwill and Other Intangibles 38,353 Restructuring and Reorganization Costs 3,123 41,476 INCOME(LOSS) FROM OPERATIONS (41,380) OTHER INCOME (EXPENSE)) 41 INCOME BEFORE TAXES (41,339) TAX EXPENSE (BENEFIT) -- NET INCOME (LOSS) $(41,339) NET INCOME PER SHARE $(3.183) WEIGHTED AVERAGE SHARES * 12,986 PRO FORMA Adjustments to net income to reflect eliminations of non recurring charges to the PEO transaction, related restructuring and reorganization, and the activities of pre-combination FEI for the January 1, 1997 to February 21, 1997 stub period Net income (Loss) $(41,339) Amortization of Goodwill & Other Intangibles 38,046 Restructuring and Reorganization Costs 3,123 Step-up in FEI inventory value increasing COGS 1,333 Effects of the stub period activity (2,177) Adjustment to net income before taxes 40,325 Tax expense on adjustments -- PRO FORMA NET INCOME $(1,014) PRO FORMA NET INCOME PER SHARE $(0.057) WEIGHTED AVERAGE SHARES * 17,690 * Net Income Per Share results reflect reverse purchase accounting, treating PEO actual weighted average shares as outstanding for the entire quarter, with FEI shares included only from February 21 to March 29. PRO FORMA Net Income Per Share results reflect a full quarter for both FEI and PEO actual weighted average shares outstanding. SOURCE FEI Co. -0- 04/18/97 /CONTACT: William Langley, Chief Financial Officer of FEI Company, 503-640-7537/ (FEIC) end