Call of the Week: A Laser Company on Target for Growth

Robert Maltbie  |

This week's top idea from Singular Research is GSI Group, Inc. (GSIG), which supplies laser-based solutions, laser scanning devices and precision motion and optical control technologies to various global markets, including industrial, electronics, medical, and scientific industries. We currently have a Buy rating on the company and have maintained a price target of $15.

The company recently announced its fourth quarter results and Q4 revenues were in line with Singular's expectations. GSI's earnings did beat our estimates.

For Q4, GSI reported revenues of $79.8 million, compared to revenues of $91.6 million from the year prior. The decrease had been expected due to the softening of demand in the printed circuit board markets. GAAP net income was $3.9 million, or $0.11 per share, compared to the prior quarter loss of $1.7 million, or $0.05 per share.

Some of the reasons for why we like GSI's prospects include the company being able to bring debt levels down, as expected. In addition, it's 12 X 12 cost savings program is on track. The 12 X 12 program is a 12-month program is targeting an annualized cost savings of as much as $5 million by eliminating up to 12 facilities.

The company also said it started shipping its 1-kilowatt Fiber Laser in the fourth quarter and announced plans for a multi-kilowatt product launch sometime in the latter part of 2012. Singular also expects to raise our EPS estimate for 2012, but that is pending a review of the company's 10-K filing.

Disclosures: To read Singular Research’s important disclosures, click here. For the full March 2012  Market Indicator & Strategy Report, and other research reports from Singular Research, click here.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CHMT Chemtura Corp. n/a n/a n/a 0 Trade
GSIG GSI Group Inc. n/a n/a n/a n/a



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