News Release Details
Entegris Reports Sales of $148 Million and EPS of $0.04 for Second Quarter of Fiscal 2008
CHASKA, Minn., Jul 29, 2008 (PrimeNewswire via COMTEX News Network) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the fiscal second quarter ended June 28, 2008. Second-quarter sales were $147.9 million, versus $153.5 million for the same period a year ago and $148.2 million for the first quarter of fiscal 2008.
Second-quarter net income was $4.9 million, or $0.04 per diluted share, which included amortization expense of $4.6 million, or $0.04 per diluted share. These results compared to net income of $14.8 million, or $0.11 per diluted share, for the second quarter a year ago and to restated net income of $2.9 million, or $0.02 per diluted share reported for the first quarter of 2008.
Sales for the six months ended June 28, 2008 were $296.2 million. First-half net income was $7.8 million, or $0.07 per diluted share, on a restated basis. Amortization expense for the first half of 2008 was $9.6 million, or $0.08 per diluted share.
Gideon Argov, president and chief executive officer, said: "Despite a challenging industry environment, we held second-quarter sales even with the first quarter while achieving improvements in our operating results and generating $31 million of cash from operations. Second-quarter sales to semiconductor-related customers reflected higher sales to chip makers which offset lower OEM spending on capital-driven products such as photochemical pumps and fluid handling components."
Argov continued: "Looking forward, we remain focused on reducing our costs, achieving traction with our new products, and furthering our materials science strategy to build a diversified materials-based business as demonstrated by our recent agreement to acquire Poco Graphite."
Outlook
For its fiscal third quarter ending September 27, 2008, the Company currently expects sales to be $140 million to $146 million. Net income per diluted share is expected to range from $0.03 to $0.05. The Company expects third-quarter amortization expense to be $4.3 million, or $0.04 per diluted share.
First Quarter Restatement
Entegris announced that it will file a Form 10-Q/A with the Securities and Exchange Commission to restate its financial results for the first quarter of fiscal year 2008, which ended March 29, 2008. The restatement, which does not affect revenue or cash flows, is expected to result in an upward correction to gross margin of approximately $2.5 million and an upward correction to net income of $1.7 million. The Company expects to file its restated financial statements concurrent with its filing of the Form 10-Q for the second quarter of fiscal 2008 on or about August 7, 2008.
Second-Quarter Results Conference Call Details
Entegris will hold a conference call to discuss its results for the second quarter on Tuesday, July 29, 2008, at 10:00 a.m. Eastern Time. Participants should dial 1-888-219-1420 (for domestic callers) or 1-913-312-1420 (for callers outside the U.S.). A replay of the call can be accessed at 1-719-457-0820 using passcode 8327674. 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, India, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.
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, 2007, 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 Six months ended
---------------------------- ------------------
March 29,
June 28, 2008 June 30, June 28, June 30,
2008 Restated 2007 2008 2007
------------------------------------------------
Net sales $147,947 $148,227 $153,508 $296,174 $313,079
Cost of sales 88,060 84,239 88,014 172,299 179,078
---------------------------- ------------------
Gross profit 59,887 63,988 65,494 123,875 134,001
Selling, general
and
administrative 37,105 43,322 39,830 80,427 81,274
expenses
Engineering,
research and
development
expenses 10,362 10,501 9,679 20,863 20,213
Amortization of
intangible
assets 4,552 5,087 4,487 9,639 8,986
---------------------------- ------------------
Operating
income 7,868 5,078 11,498 12,946 23,528
Interest expense
(income), net 81 (13) (2,559) 68 (5,376)
Other expense
(income), net 249 627 (6,074) 876 (6,050)
---------------------------- ------------------
Income before
income taxes 7,538 4,464 20,131 12,002 34,954
Income tax
expense 2,021 1,394 4,461 3,415 8,814
Equity in net
earnings of
affiliates (8) (138) (80) (146) (104)
---------------------------- ------------------
Income from
continuing
operations 5,525 3,208 15,750 8,733 26,244
Loss from
discontinued
operations, (592) (343) (973) (935) (1,084)
net of taxes
---------------------------- ------------------
Net income $ 4,933 $ 2,865 $ 14,777 $ 7,798 $ 25,160
======== ======== ======== ======== ========
Basic income
(loss) per
common share:
Continuing
operations: $ 0.05 $ 0.03 $ 0.12 $ 0.08 $ 0.20
Discontinued
operations $ (0.01) $ 0.00 $ (0.01) $ (0.01) $ (0.01)
---------------------------- ------------------
Net income per
common share $ 0.04 $ 0.03 $ 0.11 $ 0.07 $ 0.19
Diluted income
(loss) per
common share:
Continuing
operations: $ 0.05 $ 0.03 $ 0.12 $ 0.08 $ 0.20
Discontinued
operations $ (0.01) $ 0.00 $ (0.01) $ (0.01) $ (0.01)
---------------------------- ------------------
Net income per
common share $ 0.04 $ 0.02 $ 0.11 $ 0.07 $ 0.19
Weighted average
shares
outstanding:
Basic 112,870 114,159 129,225 113,515 130,709
Diluted 113,581 114,956 132,293 114,268 133,763
Entegris, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 28, Dec. 31,
2008 2007
---------------------
ASSETS
Cash, cash equivalents and short-term
investments $ 132,408 $ 160,655
Accounts receivable 107,592 112,053
Inventories 70,886 73,120
Deferred tax assets and deferred tax
charges 23,389 23,238
Other current assets and assets held for
sale 14,153 13,555
---------------------
Total current assets 348,428 382,621
Property, plant and equipment, net 119,072 121,157
Intangible assets 473,614 478,495
Deferred tax asset - non-current 35,849 35,323
Other assets 28,432 17,645
---------------------
Total assets $1,005,395 $1,035,241
=====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt $ 11,491 $ 9,310
Short-term borrowings 4,691 17,802
Accounts payable 28,060 24,260
Accrued liabilities 55,067 61,884
Income tax payable 1,623 12,493
---------------------
Total current liabilities 100,932 125,749
Long-term debt, less current maturities 14,737 20,373
Other liabilities 36,158 36,810
Shareholders' equity 853,568 852,309
---------------------
Total liabilities and shareholders' equity $1,005,395 $1,035,241
=====================
Entegris, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended
------------------------------------------------------------------
June 28, June 30,
2008 2007
------------------------------------------------------------------
Operating activities:
Net income $ 4,933 $ 14,777
Adjustments to reconcile net income to net
cash (used in) provided by operating
activities:
Loss from discontinued operations 592 973
Depreciation 6,084 6,375
Amortization 4,552 4,487
Share-based compensation expense 2,323 2,701
Gain on sale of equity investments --- (6,068)
Other 443 (1,037)
Changes in operating assets and liabilities,
excluding effects of acquisitions:
Trade accounts receivable and notes
receivable 5,511 11,219
Inventories 5,046 6,802
Accounts payable and accrued liabilities 1,648 5,185
Income taxes payable 817 3,349
Other (1,155) 28
------------------------------------------------------------------
Net cash provided by operating activities 30,794 48,791
------------------------------------------------------------------
Investing activities:
Acquisition of property and equipment (5,226) (7,202)
Purchase of equity investments (2,982) (4,440)
Proceeds from sale of equity investments --- 6,568
Proceeds from sale or maturities of short-term
investments, net of purchases --- 171,587
Other 829 940
------------------------------------------------------------------
Net cash (used in) provided by investing
activities (7,379) 167,453
------------------------------------------------------------------
Financing activities:
Principal payments on short-term borrowings
and long-term debt (14,523) (95)
Proceeds from short-term borrowings --- 25,000
Issuance of common stock 466 15,898
Repurchase and retirement of common stock (12,308) (251,404)
Other (13) 1,117
------------------------------------------------------------------
Net cash used in financing activities (26,378) (209,484)
------------------------------------------------------------------
Discontinued operations:
------------------------------------------------------------------
Net cash provided by (used in) discontinued
operations 651 (289)
------------------------------------------------------------------
Effect of exchange rate changes on cash and
cash equivalents (4,173) (2,294)
------------------------------------------------------------------
(Decrease) increase in cash and cash
equivalents (6,485) 4,177
Cash and cash equivalents at beginning of
period 138,893 132,358
------------------------------------------------------------------
Cash and cash equivalents at end of period $ 132,408 $ 136,535
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This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: Entegris, Inc.
Entegris, Inc.
Steve Cantor, VP of Corporate Relations
978-436-6750
irelations@entegris.com