News Release Details

Entegris Reports Sales of $148 Million for First Quarter of Fiscal 2008

Apr 30, 2008 at 12:00 AM EDT
Entegris Reports Sales of $148 Million for First Quarter of Fiscal 2008

CHASKA, Minn., April 30, 2008 (PRIME NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for the fiscal first quarter ended March 29, 2008. First-quarter sales were $148.2 million, versus $159.6 million for the same period a year ago and $161.3 million for the fourth quarter of fiscal 2007.

First-quarter net income was $1.1 million, or $0.01 per fully diluted share, which included severance charges of $3.8 million, or $0.02 per diluted share, related to cost-reduction measures. First-quarter results also included amortization expense of $5.1 million, or $0.04 per diluted share.

Gideon Argov, president and chief executive officer, said: "Capital spending trends in the semiconductor industry slowed as expected in the first quarter and contributed to lower revenues on a sequential basis, even with the favorable impact of the weaker U.S. dollar on sales. Although industry conditions were soft, we executed well on a number of key ongoing initiatives and held our gross margin even with the fourth-quarter level despite lower volume."

Argov continued: "Unit-driven sales, which include filtration and shipper products, declined 4 percent sequentially and represented 64 percent of total sales in the first quarter. Sales of capital-driven products, including wafer carriers and liquid systems, were down 14 percent from the fourth quarter and represented 36 percent of total first-quarter sales."

Argov added: "With our business expected to be flat in the second quarter as compared to the first quarter, we took steps to lower our operating costs by approximately $12 million on an annualized basis. Even with these reductions, we are continuing to invest in new products and markets to address the growing need for our advanced contamination control and microenvironment solutions."


For its fiscal second quarter ending June 30, 2008, the Company currently expects sales to be $144 million to $152 million. Net income per diluted share is expected to range from $0.04 to $0.06.

First-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the 2008 first quarter on Wednesday, April 30, 2008, at 10:00 a.m. Eastern Time. Participants should dial 1-888-244-2511 (for domestic callers) or 1-913-312-1409 (for callers outside the U.S.). A replay of the call can be accessed at 1-719-457-0820 using passcode 5245573. A webcast of the call can also be accessed from the investor relations section of Entegris' website at

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

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)

                                                    Three months ended
                                                   March 29, March 31,
                                                     2008      2007
 Net sales                                         $148,227  $159,571
 Cost of sales                                       86,743    91,063
  Gross profit                                       61,484    68,508
 Selling, general and administrative expenses        43,322    41,445
 Engineering, research and development expenses      10,501    10,534
 Amortization of intangible assets                    5,087     4,499
  Operating income                                    2,574    12,030
 Interest income, net                                    13     2,817
 Other expense, net                                    (627)      (24)
  Income before income taxes                          1,960    14,823
 Income tax expense                                     613     4,353
 Equity in net earnings of affiliates                  (138)      (24)
  Income from continuing operations                   1,485    10,494
 Loss from discontinued operations, net of taxes       (346)     (111)
  Net income                                       $  1,139  $ 10,383
 Basic income per common share:
  Continuing operations:                           $   0.01  $   0.08
  Discontinued operations                          $   0.00  $   0.00
  Net income per common share                      $   0.01  $   0.08
 Diluted income per common share:
  Continuing operations:                           $   0.01  $   0.08
  Discontinued operations                          $   0.00  $   0.00
  Net income per common share                      $   0.01  $   0.08

 Weighted average shares outstanding:
  Basic                                             114,159   132,194
  Diluted                                           114,956   135,233

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

                                                March 29,   Dec. 31,
                                                  2008        2007
 Cash, cash equivalents and short-term
  investments                                  $  138,893  $  160,655
 Accounts receivable                              116,407     112,053
 Inventories                                       76,284      73,120
 Deferred tax assets and deferred tax charges      23,568      23,238
 Other current assets and assets held for sale     16,294      13,555
   Total current assets                           371,446     382,621

 Property, plant and equipment, net               122,715     121,157

 Intangible assets                                485,153     478,495
 Deferred tax asset - non-current                  36,021      35,323
 Other assets                                      26,779      17,645
   Total assets                                $1,042,114  $1,035,241

 Current maturities of long-term debt          $   12,139  $    9,310
 Short-term borrowings                             15,042      17,802
 Accounts payable                                  30,413      24,260
 Accrued liabilities                               52,854      61,884
 Income tax payable                                    --      12,493
   Total current liabilities                      110,448     125,749

 Long-term debt, less current maturities           20,824      20,373
 Other liabilities                                 37,942      36,810
 Shareholders' equity                             872,900     852,309
   Total liabilities and shareholders' equity  $1,042,114  $1,035,241

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

                                                 Three months ended
                                                March 29,   March 31,
                                                  2008        2007
 Operating activities:
 Net income                                    $    1,139  $   10,383
 Adjustments to reconcile net income to net
  cash (used in) provided by operating
   Loss from discontinued operations                  346         111
   Depreciation                                     6,216       6,166
   Amortization                                     5,087       4,499
   Share-based compensation expense                 1,900       3,052
   Other                                            1,746         364
   Changes in operating assets and
    liabilities, excluding effects
    of acquisitions:
      Trade accounts receivable
       and notes receivable                         2,619      12,883
      Inventories                                     (88)      6,145
      Accounts payable and accrued
       liabilities                                 (5,739)    (16,272)
      Income taxes payable                        (13,344)     (2,392)
      Other                                          (272)        325
 Net cash (used in) provided by
  operating activities                               (390)     25,264
 Investing activities:
 Acquisition of property and equipment             (6,569)     (7,980)
 Purchase of equity investment                     (8,000)     (1,500)
 Purchases of short-term investments,
  net of maturities                                    --     (52,494)
 Other                                                 90         101
 Net cash used in investing activities            (14,479)    (61,873)
 Financing activities:
 Principal payments on short-term borrowings
  and long-term debt                               (4,775)        (93)
 Issuance of common stock                           1,720      11,417
 Repurchase and retirement of common stock        (12,095)         --
 Other                                               (609)      1,108
 Net cash (used in) provided by
  financing activities                            (15,759)     12,432
 Discontinued operations:
 Net cash (used in) operating activities             (670)         (3)
 Net cash (used in) discontinued operations          (670)         (3)
 Effect of exchange rate changes on cash
  and cash equivalents                              9,536       1,732
 Decrease in cash and cash equivalents            (21,762)    (22,448)
 Cash and cash equivalents at
  beginning of period                             160,655     154,806
 Cash and cash equivalents at end of period    $  138,893  $  132,358

CONTACT: Entegris, Inc.
Steve Cantor, VP of Corporate Relations