MYK Mykrolis Corp

Mykrolis Corporation Reports Third Quarter 2004 Financial Results BILLERICA, Mass., Oct. 28 /PRNewswire-FirstCall/ -- Mykrolis Corporation (NYSE:MYK), a leading supplier of components and subsystems to the semiconductor industry, announced today third quarter revenues of $71.4 million, 60 percent higher than the comparable quarter a year ago and 3 percent lower than $73.3 million in the second quarter of 2004. Net income per diluted share for the quarter was $0.17, which included a nonrecurring net benefit of $1.0 million. The Company reported a net loss per diluted share of $(0.02) in the third quarter a year ago, and net income per diluted share of $0.18 in the second quarter of 2004. Operating income of $10.0 million, or 14 percent of sales, declined from $10.4 million in the second quarter. For the first nine months of 2004, revenues of $215.3 million increased 69 percent from $127.7 million for the same period a year ago. Net income per diluted share for the first nine months of 2004 was $0.51, compared to a net loss per diluted share of $(0.30) for the same period a year ago. Third quarter sales of consumable filtration and purification products were 69 percent of total sales versus equipment products representing 31 percent of total sales. C. William Zadel, Chairman and Chief Executive Officer, commented on the third quarter results: "We achieved steady performance across many of our product areas and markets despite a softening in business conditions particularly for capital equipment. Sales for the consumable portion of our product lines were generally stable, reflecting continued high utilization rates at our fab and foundry customers, particularly in Asia. "Lower sales in North America reflected a softening in orders from semiconductor OEM tool manufacturers which are the largest purchasers of our gas delivery equipment products. "During the quarter we completed the acquisition of Bentec Scientific, a privately held manufacturer of roller brushes used to clean wafers in the post-CMP (chemical mechanical planarization) process. We believe CMP will be one of the fastest growing segments in the industry and this acquisition augments our line of consumable CMP products," Zadel said. Management Outlook The Company anticipates fourth quarter revenue will be in the range of $65 to $72 million and net income per diluted share will be in the range of $0.07 to $0.15. Quarterly Earnings Call Mykrolis will hold a conference call to discuss its results for the third quarter on Thursday, October 28, 2004 at 11:00 a.m. EDT (8:00 a.m. PDT). The conference call dial-in number is 800-289-0569; outside the U.S., the number is 913-981-5542. The conference call will also be webcast on the Mykrolis web site at http://www.mykrolis.com/. A replay of the call will be available upon demand through November 17, 2004 by calling 719-457-0820 with passcode of 829942. Revenue by Geographic Region (in millions of US dollars): Q3 2004 Q3 2003 % Growth North America $18.8 $11.7 61% Japan 26.5 15.8 68% Asia 19.6 12.1 62% Europe 6.5 4.9 33% --------- --------- ------- Total $71.4 $44.5 60% Q3 2004 Q3 2003 % Growth North America $18.8 $20.4 -8% Japan 26.5 26.9 -1% Asia 19.6 19.5 1% Europe 6.5 6.5 0% --------- ------- ------- Total $71.4 $73.3 -3% 9 months 2004 9 months 2003 % Growth North America $60.1 $34.0 77% Japan 80.2 45.3 77% Asia 55.5 34.6 60% Europe 19.5 13.8 41% --------- --------- ------- Total $215.3 $127.7 69% 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 and/or shorter 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 as well as those risks identified in our other reports and filings with the Securities and Exchange Commission. Mykrolis Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended 10/2/2004 9/27/2003 10/2/2004 9/27/2003 Net sales $71,403 $44,529 $215,253 $127,715 Cost of sales 37,589 24,383 111,475 72,431 ----------- ----------- ----------- ----------- Gross profit 33,814 20,146 103,778 55,284 % of sales 47.4% 45.2% 48.2% 43.3% Research & development expenses 6,554 4,362 19,407 13,519 Selling, general & admin. expenses 17,210 15,712 55,935 48,251 Restructuring and other charges --- 532 (88) 2,289 ----------- ----------- ----------- ----------- Operating income (loss) 10,050 (460) 28,524 (8,775) % of sales 14.1% (1.0%) 13.3% (6.9%) Other income (expense), net 312 (184) 1,191 1,650 ----------- ----------- ----------- ----------- Income (loss) before income taxes 10,362 (644) 29,715 (7,125) Income tax expense 3,065 224 7,710 4,635 ----------- ----------- ----------- ----------- Net income (loss) $7,297 $ (868) $22,005 $ (11,760) % of sales 10.2% (1.9%) 10.2% (9.2%) ====== ====== ====== ====== Basic income (loss) per share $0.18 $ (0.02) $0.53 $ (0.30) Basic weighted average shares outstanding 41,696 39,874 41,368 39,799 Diluted income (loss) per share $0.17 $ (0.02) $0.51 $ (0.30) Diluted weighted average shares outstanding 42,698 39,874 43,278 39,799 Mykrolis Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) Oct. 2, Dec. 31, 2004 2003 Assets Cash and cash equivalents $91,691 $70,503 Marketable securities 19,265 --- Accounts receivable, net 58,002 46,698 Inventories 42,568 38,771 Other current assets 4,235 6,390 ----------- ----------- Total current assets 215,761 162,362 Marketable securities --- 14,266 Property, plant and equipment, net 64,930 71,033 Goodwill and intangible assets, net 33,566 24,939 Other assets 11,070 11,155 ----------- ----------- Total assets $325,327 $283,755 ====== ====== Liabilities and shareholders' equity Accounts payable $ 14,387 $ 12,613 Accrued expenses and other current liabilities 46,280 36,086 ----------- ----------- Total current liabilities 60,667 48,699 Other liabilities 11,574 12,028 Shareholders' equity 253,086 223,028 ----------- ----------- Total liabilities and shareholders' equity $325,327 $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/

Copyright