News Release Details
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."
Outlook
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 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.
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
-------------------
March 29, March 31,
2008 2007
-------------------
Net sales $148,227 $159,571
Cost of sales 86,743 91,063
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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
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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)
(Unaudited)
March 29, Dec. 31,
2008 2007
----------------------
ASSETS
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
======================
LIABILITIES AND SHAREHOLDERS' EQUITY
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)
(Unaudited)
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
activities:
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
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Net cash (used in) provided by
operating activities (390) 25,264
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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
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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
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Net cash (used in) provided by
financing activities (15,759) 12,432
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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
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CONTACT: Entegris, Inc.
Steve Cantor, VP of Corporate Relations
978-436-6750
irelations@entegris.com