News Release Details


Entegris Reports Sales of $148 Million and EPS of $0.04 for Second Quarter of Fiscal 2008

Jul 29, 2008 at 12:00 AM EDT
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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SOURCE: Entegris, Inc.

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