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