EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

Entegris Reports Sales of $148 million and EPS of $0.04

for Second Quarter of Fiscal 2008

The Company to Restate First-Quarter Gross Margin and EPS Upward

CHASKA (Minneapolis), Minn., July 29, 2008 – 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  
     June 28,
2008
    March 29,
2008
Restated
    June 30,
2007
    June 28,
2008
    June 30,
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 expenses

     37,105       43,322       39,830       80,427       81,274  

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, net of taxes

     (592 )     (343 )     (973 )     (935 )     (1,084 )
                                        

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, 2008    December 31, 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, 2008     June 30, 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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