Flow International Announces Fiscal 2010 First Quarter Results

Contact: Flow Investor Relations Geoffrey Buscher 253-813-3286 investors@flowcorp.com

Flow International Corporation Consolidated Statements of Operations (Unaudited) US Dollars in thousands, except per share data Three months ended July 31, 2009 2008 % Change ---- ---- -------- Sales $37,752 $57,065 -34% Cost of Sales 23,776 30,934 -23% ------ ------ Gross Margin 13,976 26,131 -47% ------ ------ Operating Expenses: Sales and Marketing 7,916 10,098 -22% Research and Engineering 1,697 2,250 -25% General and Administrative 7,122 8,590 -17% Restructuring and Other Operating Charges 4,823 1,436 NM ----- ----- Operating Expenses 21,558 22,374 -4% ------ ------ Operating Income (Loss) (7,582) 3,757 NM Interest Income (Expense), net (924) 49 NM Other Income, net 502 391 28% --- --- Income (Loss) before taxes (8,004) 4,197 NM Income Tax Benefit (Provision) 606 (2,664) NM --- ------ Income (Loss) from Continuing Operations (7,398) 1,533 NM Discontinued Operations, net of tax (1,148) 70 NM ------ -- Net Income (Loss) $(8,546) $1,603 NM ======= ====== Per share amounts: Basic Income (Loss) from Continuing Operations $(0.20) $0.04 NM Basic Net Income (Loss) $(0.23) $0.04 NM Diluted Income (Loss) from Continuing Operations $(0.20) $0.04 NM Diluted Net Income (Loss) $(0.23) $0.04 NM Weighted Average Shares Outstanding (000): Basic 37,748 37,591 Diluted 37,748 38,101 NM = not meaningful Flow International Corporation Consolidated Balance Sheets (Unaudited) US Dollars in thousands July 31, April 30, 2009 2009 % Change ---- ---- -------- ASSETS: Current Assets: Cash $6,761 $10,117 -33% Receivables, net 31,116 32,103 -3% Inventories 20,271 21,480 -6% Other Current Assets 13,643 31,543 -57% ------ ------ Total Current Assets 71,791 95,243 Property and Equipment, net 22,266 22,983 -3% Other Long-Term Assets 34,250 26,734 28% ------ ------ $128,307 $144,960 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY: Current Liabilities: Notes Payable $16,589 $15,226 9% Current Portion of Long-Term Obligations 648 1,367 -53% Accounts Payable and Other Accrued Liabilities 20,194 17,897 13% Other Current Liabilities 20,762 17,830 16% Reserve for Patent Litigation - 15,000 NM --- ------ Total Current Liabilities 58,193 67,320 Other Long-Term Liabilities 7,710 8,929 -14% Subordinated Notes 7,433 6,000 24% ----- ----- Total Other Long-Term Liabilities 73,336 82,249 ------ ------ Shareholders' Equity 54,971 62,711 -12% ------ ------ $128,307 $144,960 ======== ======== Flow International Corporation Supplemental Data (Unaudited) US Dollars in thousands Three months ended July 31, 2009 2008 % Change ---- ---- -------- Sales Breakdown: Systems $24,403 $39,088 -38% Consumable Parts 13,349 17,977 -26% ------ ------ Total $37,752 $57,065 -34% ======= ======= Segment Revenue Breakdown: Standard $28,367 $52,754 -46% Advanced 9,385 4,311 118% ----- ----- $37,752 $57,065 -34% ======= ======= Segment Operating Income (Loss) Breakdown: Standard $(2,552) $10,433 NM Advanced 1,791 (2,468) NM All Other* (6,547) (4,225) -55% Intersegment Eliminations (274) 17 NM ---- -- $(7,582) $3,757 NM ======= ====== * Includes corporate overhead expenses as well as general and administrative expenses of inactive subsidiaries that do not constitute segments. Depreciation and Amortization Expense $1,232 $1,050 17% Capital Spending $4,472 $1,300 244% Flow International Corporation Reconciliation of GAAP to Proforma (Unaudited) US Dollars in thousands, except per share data Three months ended July 31, 2009 2008 ---- ---- GAAP Income (Loss) from Continuing Operations $(7,398) $1,533 Adjustments: OMAX Termination Charge 3,219 - Restructuring and Other Operating Charges 1,604 1,436 Write-off of Deferred Debt Issuance Costs 253 - Inventory Write-Off - 108 Tax Effect of Adjustments (384) - ------- ------ Proforma Income (Loss) from Continuing Operations $(2,707) $3,077 ------- ------ GAAP Net Income (Loss) $(8,546) $1,603 Adjustments: OMAX Termination Charge 3,219 - Restructuring and Other Operating Charges 1,604 1,436 Write-off of Deferred Debt Issuance Costs 253 - Inventory Write-Off - 108 Discontinued Operations 1,148 70 Tax Effect of Adjustments (384) - ------- ------ Proforma Net Income (Loss) $(2,707) $3,217 ------- ------ Per Share Amounts GAAP Basic and Diluted Income (Loss) Per Share Income (Loss) from Continuing Operations $(0.20) $0.04 Net Income (Loss) $(0.23) $0.04 Proforma Basic and Diluted Income (Loss) per Share Income (Loss) from Continuing Operations $(0.07) $0.08 Net Income (Loss) $(0.07) $0.08