Jul 22, 2009

Entegris Reports Second Quarter Results

Operating Loss Narrows On 40 Percent Sequential Sales Increase and Lower Costs

CHASKA, Minn., Jul 22, 2009 (GlobeNewswire via COMTEX) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the fiscal second quarter ended June 27, 2009.

The Company recorded second-quarter sales of $82.6 million and a net loss of $22.5 million, or $0.20 per share. These results included amortization of intangible assets of $4.9 million and restructuring charges of $5.5 million. The company reported sales of $59.0 million in the first quarter ended March 29, 2009 and sales of $147.9 million in the second quarter a year ago.

Gideon Argov, president and chief executive officer, said: "Our second-quarter results rebounded sharply from the severely depressed levels we experienced in the first quarter of this year, driven primarily by increased demand for our unit-driven liquid filtration and wafer shipping products used in the manufacturing of semiconductors and other electronics products.

"The higher sales, combined with the permanent and temporary cost reductions we implemented in the first quarter, contributed to a significant narrowing of our second-quarter operating loss. Our EBITDA loss for purposes of our bank covenants improved from $15.9 million in the first quarter to $4.3 million in the second quarter, and was well below the $45 million cumulative EBITDA loss allowed for under our bank covenants. We expect that with current business trends we are in the position to generate positive EBITDA beginning in the third quarter," Argov said.

In the second quarter, total funded debt was $151.7 million, reflecting a decrease of $13.4 million from the first quarter. The Company's ending cash balance was $84.1 million.

Segment Information (table of results contained at the end of this release)

Contamination Control Solutions sales increased 39 percent sequentially from the first quarter of 2009. The growth reflected increased demand for liquid filtration products and chemical containers, which was driven by increased semiconductor fab utilization rates, particularly in Asia.

Microenvironments product sales increased 78 percent sequentially from the first quarter of 2009. The growth was primarily due to improved demand for wafer shippers needed to support increased production in the semiconductor industry.

Entegris Specialty Materials sales decreased 12 percent sequentially from the first quarter of 2009. The decline related to softening in the non-semiconductor portions of the Entegris Specialty Materials business, which are sensitive to broader industrial market demand trends that have lagged the second-quarter upturn in the unit-driven semiconductor business.

Second-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the second quarter on Wednesday, July 22, 2009, at 9:00 a.m. Eastern Time. Participants should dial 1-866-290-0920 (for domestic callers) or 1-913-312-0720 (for callers outside the U.S.). A replay of the call can be accessed at 1-719-457-0820 using passcode 4554427. A webcast of the call can also be accessed from the investor relations section of Entegris' website at www.entegris.com.

About Entegris

Entegris is a leading provider of a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in the semiconductor and other high-tech industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

The Entegris, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3700

Forward-Looking Statements

Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements that include such words as "anticipate," "believe," "estimate," "expect," "forecast," "may," "will," "should" or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris' stock, Entegris' future operating results, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris' periodic public filings with the Securities and Exchange Commission, including discussions appearing under the headings "Risks Relating to our Business and Industry," "Manufacturing Risks," "International Risks," and "Risks Related to Securities Markets and Ownership of Our Securities" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein.


                   Entegris, Inc. and Subsidiaries
           Condensed Consolidated Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)

                                               Three months ended
                                          ----------------------------
                                          June 27,  June 28,  March 29,
                                            2009      2008      2009
                                          ----------------------------
 Net sales                                 $82,576  $147,947   $59,038
 Cost of sales                              58,846    88,060    49,955
 Amortization of acquired inventory
  step-up to fair value                         --        --     4,065
                                          ----------------------------
   Gross profit                             23,730    59,887     5,018
 Selling, general and administrative
  expenses                                  25,685    37,105    29,721
 Engineering, research and development
  expenses                                   7,843    10,362     8,904
 Amortization of intangible assets           4,931     4,552     4,981
 Restructuring charges                       5,452        --     4,634
                                          ----------------------------
   Operating (loss) income                 (20,181)    7,868   (43,222)
 Interest expense (income), net              2,577        81     1,847
 Other (income) expense, net                 1,537       249    (5,222)
                                          ----------------------------
   (Loss) income before income taxes       (24,295)    7,538   (39,847)
 Income tax (benefit) expense               (2,252)    2,021    (2,598)
 Equity in net loss (earnings) of
  affiliates                                   449        (8)      496
                                          ----------------------------
   (Loss) income from continuing
    operations                             (22,492)    5,525   (37,745)
 Loss from discontinued operations, net
  of taxes                                      --      (592)       --
                                          ----------------------------
   Net (loss) income                      ($22,492)   $4,933  ($37,745)
                                          ============================

 Basic (loss) income per common share:
   Continuing operations                    ($0.20)    $0.05    ($0.34)
   Discontinued operations                      --     (0.01)       --
   Net (loss) income per common share       ($0.20)    $0.04    ($0.34)
 Diluted (loss) income per common share:
   Continuing operations                    ($0.20)    $0.05    ($0.34)
   Discontinued operations                      --     (0.01)       --
   Net (loss) income per common share       ($0.20)    $0.04    ($0.34)
 Weighted average shares outstanding:
   Basic                                   112,694   114,382   112,348
   Diluted                                 112,694   114,865   112,348


                   Entegris, Inc. and Subsidiaries
           Condensed Consolidated Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)

                                                     Six months ended
                                                    ------------------
                                                    June 27,  June 28,
                                                      2009      2008
                                                    ------------------
 Net sales                                          $141,614  $296,174
 Cost of sales                                       108,801   172,299
 Amortization of acquired inventory step-up to
  fair value                                           4,065        --
                                                    ------------------
   Gross profit                                       28,748   123,875
 Selling, general and administrative expenses         55,406    80,427
 Engineering, research and development expenses       16,747    20,863
 Amortization of intangible assets                     9,912     9,639
 Restructuring charges                                10,086        --
                                                    ------------------
   Operating (loss) income                           (63,403)   12,946
 Interest expense (income), net                        4,425        68
 Other (income) expense, net                          (3,686)      876
                                                    ------------------
   (Loss) income before income taxes                 (64,142)   12,002
 Income tax (benefit) expense                         (4,850)    3,415
 Equity in net loss (earnings) of affiliates             945      (146)
                                                    ------------------
   (Loss) income from continuing operations          (60,237)    8,733
 Loss from discontinued operations, net of taxes          --      (935)
                                                    ------------------
   Net (loss) income                                $(60,237)   $7,798
                                                    ==================

 Basic (loss) income per common share:
   Continuing operations                              $(0.54)    $0.08
   Discontinued operations                                --    $(0.01)
   Net (loss) income per common share                 $(0.54)    $0.07
 Diluted (loss) income per common share:
   Continuing operations                              $(0.54)    $0.08
   Discontinued operations                                --    $(0.01)
   Net (loss) income per common share                 $(0.54)    $0.07
 Weighted average shares outstanding:
   Basic                                             112,521   115,075
   Diluted                                           112,521   115,560


                   Entegris, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets
                            (In thousands)
                             (Unaudited)

                                              June 27,    December 31,
                                                2009          2008
                                            ------------  ------------
 ASSETS
 Cash and cash equivalents                       $84,066      $115,033
 Accounts receivable                              58,863        70,535
 Inventories                                      81,924       102,189
 Deferred tax assets, deferred tax charges
  and refundable income taxes                     11,862        14,661
 Other current assets and assets held for
  sale                                             8,476        10,710
                                            ------------  ------------
   Total current assets                          245,191       313,128

 Property, plant and equipment, net              146,393       159,738

 Intangible assets                                83,258        93,139
 Deferred tax assets - non-current                12,397        13,315
 Other assets                                     19,508        18,504
                                            ------------  ------------
   Total assets                                 $506,747      $597,824
                                            ============  ============

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current maturities of long-term debt             17,090       $13,166
 Short-term borrowings                             4,183            --
 Accounts payable                                 18,242        21,782
 Accrued liabilities                              30,665        36,971
 Income tax payable and deferred
 tax liabilities                                   7,161         7,437
                                            ------------  ------------
   Total current liabilities                      77,341        79,356

 Long-term debt, less current maturities         130,394       150,516
 Other liabilities                                25,242        31,782
 Shareholders' equity                            273,770       336,170
                                            ------------  ------------
   Total liabilities and shareholders'
    equity                                      $506,747      $597,824
                                            ============  ============


                   Entegris, Inc. and Subsidiaries
           Condensed Consolidated Statements of Cash Flows
                            (In thousands)
                             (Unaudited)

                                Three months ended   Six months ended
 ---------------------------------------------------------------------
                                June 27,  June 28,  June 27,  June 28,
                                  2009      2008      2009      2008
 ---------------------------------------------------------------------
 Operating activities:
 Net (loss) income              $(22,492)   $4,933  $(60,237)   $7,798
 Adjustments to reconcile net
  (loss) income to net cash used
  in operating activities:
 Loss from discontinued
  operations                          --       592        --       935
 Depreciation                      7,903     6,084    16,173    12,300
 Amortization                      4,931     4,552     9,912     9,639
 Stock-based compensation
  expense                          2,369     2,323     4,179     4,223
 Charge for fair value mark-up
  of acquired inventory               --        --     4,065        --
 Other                            (2,474)    3,022     1,997     4,451
 Changes in operating assets and
  liabilities, excluding effects
  of acquisitions:
 Trade accounts receivable and
  notes receivable                (6,381)    5,511     9,786     8,130
 Inventories                       9,855     2,467    11,450      (345)
 Accounts payable and accrued
  liabilities                     (1,595)    1,648    (4,429)   (4,091)
 Income taxes payable and
  refundable income taxes          9,693       340     3,840   (12,222)
 Other                             1,404    (1,098)   (3,068)     (837)
 ---------------------------------------------------------------------
 Net cash provided by (used in)
  operating activities             3,213    30,374    (6,332)   29,981
 ---------------------------------------------------------------------
 Investing activities:
 Acquisition of property and
  equipment                       (2,459)   (5,226)  (10,399)  (11,795)
 Purchase of equity investment        --    (2,982)       --   (10,982)
 Other                               185       829       236       919
 ---------------------------------------------------------------------
 Net cash used in investing
  activities                      (2,274)   (7,379)  (10,163)  (21,858)
 ---------------------------------------------------------------------
 Financing activities:
 Payments on short-term
  borrowings and long-term debt (139,018)  (14,523) (306,951)  (19,298)
 Proceeds from short-term and
  long-term borrowings           125,000        --   296,510        --
 Repurchase and retirement of
  common stock                        --   (12,308)       --   (24,403)
 Issuance of common stock             --       466       570     2,186
 Payments for debt issuance
  costs                              (36)      (13)   (3,500)     (622)
 ---------------------------------------------------------------------
 Net cash used in financing
  activities                     (14,054)  (26,378)  (13,371)  (42,137)
 ---------------------------------------------------------------------
 Net cash provided by
  discontinued operations             --     1,061        --       394
 ---------------------------------------------------------------------
 Effect of exchange rate changes
  on cash                          1,731    (4,163)   (1,101)    5,373
 ---------------------------------------------------------------------
 Decrease in cash and cash
  equivalents                    (11,384)   (6,485)  (30,967)  (28,247)
 Cash and cash equivalents at
  beginning of period             95,450   138,893   115,033   160,655
 ---------------------------------------------------------------------
 Cash and cash equivalents at
  end of period                  $84,066  $132,408   $84,066  $132,408
 =====================================================================


                   Entegris, Inc. and Subsidiaries
                         Segment Information
                            (In thousands)
                             (Unaudited)

 Net Sales                                     Three Months Ended
                                          -----------------------------
                                          June 27,  June 28,  March 29,
                                            2009      2008      2009
                                          -----------------------------
 Contamination Control Solutions           $47,541   $87,262   $34,287
 Microenvironments                          26,176    58,691    14,682
 Entegris Specialty Materials                8,859     1,994    10,069
   Total                                   $82,576  $147,947   $59,038
 ----------------------------------------------------------------------


 Segment (loss) profit                         Three Months Ended
                                          -----------------------------
                                          June 27,  June 28,  March 29,
                                            2009      2008      2009
                                          -----------------------------
 Contamination Control Solutions            $3,181   $20,584   $(8,259)
 Microenvironments                            (155)   10,651   (10,048)
 Entegris Specialty Materials               (1,047)      683       617
 Amortization of intangibles,
  restructuring                            (22,160)  (24,050)  (25,532)
  and other charges, and unallocated
  expense
 Operating (loss) income                  $(20,181)   $7,868  $(43,222)
 ----------------------------------------------------------------------

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SOURCE: Entegris, Inc.

Entegris, Inc. Steve Cantor, VP of Corporate Relations 978-436-6750 irelations@entegris.com