FEI Company (NASDAQ:FEIC) Q1 2016 Earnings Conference Call - Final Transcript
May 04, 2016 • 05:00 pm ET
Greetings and welcome to the FEI Company first quarter earnings conference call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host Mr. Jason Willey. Thank you Mr. Willey, you may begin.
Thank you, Tim and good afternoon, everyone. As the Operator said I'm Jason Willey, FEI's Senior Director of Investor Relations. With me today at our headquarters in Oregon are Don Kania, our President and CEO, Tony Trunzo, EVP and CFO, and Troy Matson, Senior Director of Finance who will be transitioning into heading up FEI's Investor Relations over the coming months.
We have again posted slides under Events and Presentations in the Investor Relations portion of our website. (Forward-Looking Cautionary Statements).
I will now turn the call over to Tony to go through the financials. Don will then discussion our business and outlook. We will then be glad to take your questions
Thank you, Jason and good afternoon, everybody. As Jason mentioned, we've posted slides on our website that provide additional detail on our Q1 performance. We began 2016 with solid results. Orders were $272 million, a first quarter record, while revenue and EPS came in above the mid point of the range we provided in early February. Q1 revenue of $229 million declined 1.8% organically compared to Q1 2015, inline with our expectations. Organic financial metrics exclude the impact of M&A and currency.
Included in revenue is approximately $14 million from the DCG systems acquisition. Note that we have rebranded the former DCG as our Electrical Fault Analysis business or EFA. Earnings per share for the first quarter were $0.56 with EFA having a negative impact of $0.04 per share. We exited the quarter with record backlog of $656 million. Science segment Q1 revenue was inline with our expectations at $107 million, down 0.8% on an organic basis compared with the same quarter last year. We saw growth from our service business as well as from Life Sciences customers.
While Q1 is a seasonably slow period for our Material Science business, results were also negatively impacted by timing of revenue on high end orders and ongoing softness in emerging markets and Japan. Our industry segment reported revenue of $122 million, down 2.7% compared with last year's first quarter on an organic basis. Strong growth in service revenue was offset by lower semiconductor product revenue driven by the timing of migration to next generation process modes.
Revenue from our three largest semiconductor customers was approximately 30% of total semiconductor product revenue. Similar to Q4 levels and well below the historical range of 40% to 50%. Our global service business posted another strong quarter with revenue of $66 million, up 11% on an organic basis compared with Q1 of last year. The performance in service was particularly strong at our semiconductor customers, driven by growth in our near-line offers in