MYK Mykrolis Corp

Mykrolis Corporation Reports Second Quarter 2004 Financial Results Sales of $73 million rise 4%; Operating income increases 28% BILLERICA, Mass., July 29 /PRNewswire-FirstCall/ -- Mykrolis Corporation (NYSE:MYK), a leading supplier of components and subsystems to the semiconductor industry, announced today second quarter revenues of $73.3 million, a 4 percent increase from $70.5 million in the first quarter of 2004 and 72 percent higher than the comparable quarter a year ago. The net income per diluted share for the quarter was $0.18, compared to $0.16 in the first quarter and a net loss per diluted share of $(0.14) in the second quarter a year ago. Operating income was $10.4 million, or 14 percent of sales. Gross margin for the second quarter rose to 48.9 percent from 48.3 percent in the first quarter. For the first six months of 2004, revenues of $143.9 million increased 73 percent from $83.2 million for the same period a year ago. Net income per diluted share for the first half of 2004 was $0.34, compared to a net loss per diluted share of $(0.27) a year ago. C. William Zadel, Chairman and Chief Executive Officer, commented on the second quarter results: "We achieved a solid quarter. An increase in our gross margin combined with lower operating expenses contributed to operating income growth of 28 percent from the first quarter. Our sales mix of 70 percent consumable products versus 30 percent equipment reflected continued high capacity utilization and wafer start growth in the industry. Sales to Asia grew 19 percent to an all-time high, reflecting strong demand from semiconductor foundry customers and makers of flat panel displays. "At Semicon West we introduced a number of consumable and equipment products for filtration, purification, and fluid delivery applications for leading edge processes and 300mm tools. We believe these will extend our unique position in the market as the leader in our industry for controlling and reducing micro-contaminants in the semiconductor fabrication process," Zadel said. Management Outlook The company anticipates third quarter revenue will be in the range of $70 to $77 million and net income per diluted share will be in the range of $0.15 to $0.21. Quarterly Earnings Call Mykrolis will hold a conference call to discuss its results for the second quarter on Thursday, July 29, 2004 at 11:00 a.m. EDT (8:00 a.m. PDT). The conference call dial-in number is 1-800-915-4836; outside the U.S., the number is 973-317-5319. The conference call will also be webcast on the Mykrolis web site at http://www.mykrolis.com/. Revenue by Geographic Region (in millions of US dollars): Q2 2004 Q2 2003 % Growth North America $20.4 $11.8 73% Japan 26.9 14.6 84% Asia 19.5 11.8 65% Europe 6.5 4.5 44% ------- ------- ------- Total $73.3 $42.7 72% Q2 2004 Q1 2004 % Growth North America $20.4 $21.0 -3% Japan 26.9 26.7 1% Asia 19.5 16.4 19% Europe 6.5 6.4 2% ------- ------- ------- Total $73.3 $70.5 4% 6 months 2004 6 months 2003 % Growth North America $41.4 $22.4 85% Japan 53.7 29.5 82% Asia 35.9 22.4 60% Europe 12.9 8.9 45% ------- ------- ------- Total $143.9 $83.2 73% About Mykrolis Mykrolis Corporation, which reported sales of $186 million in fiscal 2003, is a worldwide developer, manufacturer and supplier of liquid and gas delivery systems, components and consumables used to precisely measure, deliver, control and purify the process liquids, gases and chemicals in the semiconductor manufacturing process. In addition, the Company's products are used to manufacture a range of other products, such as flat panel displays, high purity chemicals, photoresists, solar cells, gas lasers, optical disks and fiber optic cables. Mykrolis is based in Billerica, Massachusetts. For more information, visit http://www.mykrolis.com/. Mykrolis Forward looking Statement Disclaimer The matters discussed herein, as well as in future oral and written statements by management of Mykrolis Corporation that are forward-looking statements, are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. When used herein or in such statements, the words "anticipate", "believe", "estimate", "expect", "hope", "may", "will", "should" or the negative thereof and similar expressions as they relate to Mykrolis, its business or its management are intended to identify such forward-looking statements. Potential risks and uncertainties that could affect Mykrolis's future operating results include, without limitation, the risk that a sustained industry recovery may be weaker than past recoveries, our inability to meet increasing demands for our products from our key customers; increased competition in our industry resulting in downward pressure on prices and reduced margins, as well as those risks described under the headings "Risks Relating to our Business and Industry", "Risks Related to the Securities Markets and Ownership of Our Securities," and "Risks Related to our Separation from Millipore" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2003. Mykrolis Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Six Months Ended 7/3/2004 6/28/2003 7/3/2004 6/28/2003 Net sales $73,335 $42,678 $143,850 $83,186 Cost of sales 37,440 24,072 73,886 48,048 ----------- ----------- ----------- ----------- Gross profit 35,895 18,606 69,964 35,138 % of sales 48.9% 43.6% 48.6% 42.2% Research & development expenses 6,556 4,673 12,853 9,157 Selling, general & admin. expenses 19,056 16,187 38,725 32,539 Restructuring and other charges (88) 1,757 (88) 1,757 ----------- ----------- ----------- ----------- Operating income (loss) 10,371 (4,011) 18,474 (8,315) % of sales 14.1% (9.4%) 12.8% (10.0%) Other income, net 405 1,174 879 1,834 ----------- ----------- ----------- ----------- Income (loss) before income taxes 10,776 (2,837) 19,353 (6,481) Income tax expense 3,055 2,698 4,645 4,411 ----------- ----------- ----------- ----------- Net income (loss) $7,721 $ (5,535) $14,708 $ (10,892) % of sales 10.5% (13.0%) 10.2% (13.1%) ====== ====== ====== ====== Basic income (loss) per share $0.19 $(0.14) $0.36 $(0.27) Basic weighted average shares outstanding 41,420 39,795 41,207 39,761 Diluted income (loss) per share $0.18 $(0.14) $0.34 $(0.27) Diluted weighted average shares outstanding 43,599 39,795 43,509 39,761 Mykrolis Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) July 3, December 31, 2004 2003 Assets Cash and cash equivalents $82,748 $70,503 Marketable securities 14,425 --- Accounts receivable, net 58,706 46,698 Inventories 43,614 38,771 Other current assets 8,031 6,390 ----------- ----------- Total current assets 207,524 162,362 Marketable securities 4,964 14,266 Property, plant and equipment, net 67,223 71,033 Goodwill and intangible assets, net 24,037 24,939 Other assets 11,122 11,155 ----------- ----------- Total assets $314,870 $283,755 ====== ====== Liabilities and shareholders' equity Accounts payable $17,086 $ 12,613 Accrued expenses and other current liabilities 37,971 36,086 ----------- ----------- Total current liabilities 55,057 48,699 Other liabilities 13,144 12,028 Shareholders' equity 246,669 223,028 ----------- ----------- Total liabilities and shareholders' equity $314,870 $283,755 ====== ====== Contacts: Bertrand Loy, Chief Financial Officer Steve Cantor, Director of Investor Relations and Corporate Communications Tel#: 978-436-6500 Email: DATASOURCE: Mykrolis Corporation CONTACT: Bertrand Loy, Chief Financial Officer, or Steve Cantor, Director of Investor Relations and Corporate Communications both of Mykrolis Corporation, +1-978-436-6500, Web site: http://www.mykrolis.com/

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