FEI Company (NASDAQ:FEIC) Q1 2015 Earnings Conference Call - Final Transcript
Apr 28, 2015 • 05:00 pm ET
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Now looking to geographic booking. North American orders were down 10% year-over-year, driven by slower activity from our electronics customers in this geography. Orders in Europe were down 59% year-over-year, reflecting a weak euro, timing delays of several large orders and weakness from emerging regions. Asia was up 30% year-over-year. This growth was a result of increased activity in our electronics customers and the previously highlighted improvements in Science in China.
Moving to our guidance for the second quarter. We expect organic revenue to be approximately flat with Q2 2014. Factoring in an expected 6% negative currency impact, reported revenue is expected to be in the range of $216 million to $226 million. EPS for Q2 is expected to be in the range of $0.73 to $0.83. We expect gross margins in Q2 will be above 49%, with operating expense around $68 million.
For the full year 2015, we expect organic revenue growth to be in the range of 4% to 7% compared with 2014. At prevailing exchange rate, we estimate currency will have a negative impact of approximately 5% on our reported revenue growth. The revenue outlook incorporates the slow start to the year for our materials science customers. We're maintaining our full year 2015 EPS guidance range of $3.40 to $3.70.
Our confidence in improved second half revenue growth reflects a number of positive trends across our end market. We expect strong activity from electronics customers given our market leadership and the importance of our workflows to our customers' new technology development.
The pipeline and backlog from life science customers are strong and we expect another year of double-digit growth for this market in 2015. In materials science, a number of emerging geographies and peripheral European countries have started slowly, which has impacted bookings. We expect to recover in these geographies as 2015 progresses, complemented by a positive demand trend in the U.S. and signs of improvement in China.
We'll be hosting our Annual Investor Day in New York on June 4. The event will provide an opportunity to hear from various members of FEI's management team. We also expect to provide an update on our long-term growth target and capital deployment strategy. For additional information or to register to attend, please contact Jason.
With that, operator, we are now ready for questions.