Robotic Vision Systems Reports First Quarter Financial Results

NASHUA, NEW HAMPSHIRE -- Robotic Vision Systems, Inc. (RVSI) (RVSI.PK) today reported results for its fiscal year 2004 first quarter ended December 31, 2003.

First quarter revenues were $10,337,000 compared to $10,388,000 in fiscal 2003’s first quarter and $13,500,000 in fiscal 2003’s fourth quarter.  RVSI’s net loss in fiscal 2004’s first quarter was $4,637,000, or $0.31 net loss per share; compared to a net loss of $8,534,000 or $0.70 net loss per share in fiscal 2003’s first quarter; and $3,486,000, or $0.27 net loss per share in fiscal 2003’s fourth quarter.

Orders for the quarter ended December 31, 2003 were $12,533,000, yielding a book-to-bill ratio of 1.20 to 1.

The above results incorporate consolidated revenues for both the Semiconductor Equipment Group and Acuity CiMatrix.  All results are inclusive of unusual gains and losses, and reflect the one-for-five reverse stock split effected in November 2003.

‘‘We believe the first quarter was the final page of an old story,’‘ said Pat V. Costa, Chairman and CEO of RVSI. ‘‘Part of our attention during the quarter was diverted by the need to complete our line of credit, which we did at the beginning of December.   Moreover, we were not able to convert all of our shippable backlog into revenue, and we faced long vendor lead times on certain parts.’‘ 

‘‘This current quarter is a very different story,’‘ Mr. Costa said.  ‘‘Through yesterday, incoming orders are more than double the level of the same time last quarter and, in the current quarter, we  know of few impediments to shipping against backlog.  What’s especially encouraging is that, on the order front at our Semiconductor Equipment Group, the very strong improvement in the current quarter comes in spite of the typical two-week shutdown most Asian test, assembly, and packaging houses take for the lunar new year in late January or early February.’‘

Second Quarter Outlook
‘‘We entered the quarter with backlog of $10.1 million, we believe we can see bookings in a range of $16 million to $19 million,’‘ Mr. Costa said.  ‘‘Based on those figures, we believe we can see recognizable revenue in the March quarter  from $15 million to $17 million.  It is clear that this is going to be a quarter of dramatically improved P&L performance.  We do not promise operating profitability in this quarter, but neither do we rule it out.’‘

‘‘Beyond the current quarter, I am extremely encouraged by the positive direction the business is taking as indicated by the rising rate of bookings and shipments, and I believe that the balance of FY04 should show sequential, sustained improvement.’‘

About RVSI
Robotic Vision Systems, Inc. (RVSI) (RVSI.PK) has the most comprehensive line of machine vision systems available today. Headquartered in Nashua, New Hampshire, with offices worldwide, RVSI is the world leader in vision-based semiconductor inspection and Data Matrix-based unit-level traceability. Using leading-edge technology, RVSI joins vision-enabled process equipment, high- performance optics, lighting, and advanced hardware and software to assure product quality, identify and track parts, control manufacturing processes, and ultimately enhance profits for companies worldwide. Serving the semiconductor, electronics, aerospace, automotive, pharmaceutical and packaging industries, RVSI holds more than 100 patents in a broad range of technologies. 

Forward Looking Statement
Except for the historical information herein, certain matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to: the historical cyclical nature of the semiconductor industry, risks in products and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timely development and release of new products, strategic suppliers and customers, the effect of the company's accounting policies and other risk factors detailed in the Company's annual report on Form 10-K, and other filings with the Securities and Exchange Commission.

For further information contact: 
Neal H. Sanders
(781) 302-2439