July 12, 2007 -- Flow International Corporation, the world's leading developer and manufacturer of industrial waterjet machines used for cutting and cleaning applications around the world, today reported results for its fiscal 2007 fourth quarter and year ended April 30, 2007. For the quarter, Flow reported consolidated sales of $53.4 million and a net loss of $3.1 million or $0.08 basic and diluted loss per share. Net loss from continuing operations for the quarter was $3.2 million or $0.09 basic and diluted loss per share. The current results include a $2.9 million expense related to the amortization of the retiring CEO's employment contract and $450,000 for expenses related to the now-completed Korea investigation.

By comparison, in the year-ago fourth quarter Flow reported consolidated sales of $65.2 million and net income of $8.7 million or $0.25 basic and $0.23 diluted earnings per share. The year-ago fourth quarter results include a $575,000 restructuring expense, which represented the remaining lease and related costs on a vacated Wixom, Michigan facility.

Stephen R. Light, Flow's President and Chief Executive Officer, commented: "The slowdown during our fourth fiscal quarter in a few markets, including aerospace and domestic housing, was not unexpected. While demand continues to increase for our aerospace customers, they have yet to make the decision to increase production. We also believe that many of our North American customers are awaiting the rollout of the 87,000 psi hyperpressure pump across our entire product line during fiscal 2008.

"In addition, our Asia business was significantly impacted as a result of two now-completed investigations and subsequent reorganizations of certain senior management in those geographies. Our ability to sell into those markets was severely limited while the investigations were ongoing. Those issues are behind us. While demand in some markets is not growing as rapidly as it had -- most notably semiconductors, which has been beset by overcapacity and heavy pricing pressure -- others continue to pick up, and we have been ramping to meet the growing demand for waterjets."

In February 2007, Stephen Light announced his plans to retire from Flow upon appointment of a new CEO. Charles "Charley" Brown was recently named incoming CEO and will assume responsibilities from Mr. Light upon Mr. Light's retirement.

Source: Flow International Corporation