EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO

 

Mykrolis Corporation Reports Revenues of $77.4 Million and EPS of $0.16 for Second Quarter

 

Shareholders Overwhelmingly Approve Merger with Entegris

 

BILLERICA, Mass., August 3, 2005 – Mykrolis Corporation (NYSE: MYK) reported today that sales for the second quarter ended July 2, 2005 of $77.4 million increased 5 percent sequentially from $73.6 million in the first quarter of 2005 and were 6 percent above $73.3 million in the comparable quarter a year ago.

 

Net income per diluted share for the second quarter was $0.16, which compared to net income per diluted share of $0.13 in the first quarter and to net income per diluted share of $0.18 in the second quarter a year ago. The operating results for the second quarter included $1.4 million in restructuring and other charges and $1.5 million in merger-related expenses. The $1.4 million in restructuring and other charges resulted from a realignment of the gas delivery business and personnel reductions.

 

For the first six months of 2005, revenues of $151.0 million increased 5 percent from $143.9 million for the same period a year ago. Net income per diluted share for the first half of 2005 was $0.29, compared to a net income per diluted share of $0.34 a year ago. Net income in the first half of 2005 included the aforementioned restructuring and other charges and merger-related expenses.

 

Consumable filtration and purification products represented 72 percent and equipment represented 28 percent of second quarter revenues. The company’s mix of customers was 39 percent OEM and 61 percent semiconductor and microelectronics device makers in the second quarter.

 

Gideon Argov, Chief Executive Officer, commented: “We were very pleased with our second quarter results. Revenues were propelled by record-level demand by Asian semiconductor makers and foundries, as well as the strong performance of Extraction Systems, which we acquired in March, 2005. Current industry indicators are pointing to increasing utilization levels on the part of many of our customers in the second half of 2005, which should bode well for continuing unit-driven demand for our consumable filtration and purification products.”

 

Bertrand Loy, Chief Financial Officer, added: “We achieved a gross margin of 50.4 percent in the second quarter, a record high for Mykrolis since it became a public company in 2001. The increase in gross margin reflected favorable product and customer mix and the benefits of the manufacturing optimization initiatives that Mykrolis undertook during the past four years. Cash flow from operations of $8.2 million in part reflected the continued improvements in working capital management. With cash, cash equivalents, and marketable securities of $112 million and no debt at the end of the quarter our financial position is very strong.”


Shareholders Approve Merger

 

Separately, stockholders overwhelmingly approved the proposed merger between Mykrolis and Entegris at the company’s Special Meeting of Stockholders in Lieu of Annual Meeting held today. Of the outstanding Mykrolis shares voted on the merger proposal approximately 99 percent were cast in favor of the merger. At its special meeting of shareholders, Entegris shareholders also approved the merger. Pursuant to the terms of the merger agreement, each share of Mykrolis common stock will be exchanged for 1.39 shares of Entegris common stock. The merger is expected to close on August 6, 2005.

 

Revenue by Geographic Region ($’s millions):

 

     Q2 2005

   Q2 2004

   % Growth

 

North America

   $ 20.0    $ 20.4    -2 %

Japan

     25.1      26.9    -7 %

Asia

     25.2      19.5    29 %

Europe

     7.1      6.5    9 %
    

  

  

Total

   $ 77.4    $ 73.3    6 %
     Q2 2005

   Q1 2005

   % Growth

 

North America

   $ 20.0    $ 18.0    11 %

Japan

     25.1      26.9    -7 %

Asia

     25.2      21.7    16 %

Europe

     7.1      7.0    1 %
    

  

  

Total

   $ 77.4    $ 73.6    5 %
     6 Months 2005

   6 Months 2004

   % Growth

 

North America

   $ 38.1    $ 41.4    -8 %

Japan

     52.0      53.7    -3 %

Asia

     46.9      35.9    31 %

Europe

     14.0      12.9    9 %
    

  

  

Total

   $ 151.0    $ 143.9    5 %

 

About Mykrolis

 

Mykrolis develops and manufactures fluid management and microcontamination control components and integrated systems for the semiconductor industry. The company’s product line comprises consumables and equipment that measure, control and purify liquids, gases and chemicals critical to the manufacturing process. In addition to the semiconductor industry, Mykrolis serves related markets including manufacturers of flat panel displays, bulk chemicals, and data storage devices. Mykrolis is based in Billerica, Massachusetts. For more information, visit 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/A for the fiscal year ended December 31, 2004.


Mykrolis Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

 

     Three Months Ended

    Six Months Ended

 
     7/2/2005

    7/3/2004

    7/2/2005

    7/3/2004

 

Net sales

   $ 77,405     $ 73,335     $ 150,999     $ 143,850  

Cost of sales

     38,372       37,440       77,205       73,886  
    


 


 


 


Gross profit

     39,033       35,895       73,794       69,964  

% of sales

     50.4 %     48.9 %     48.9 %     48.6 %

Research & development expenses

     7,425       6,556       14,491       12,853  

Selling, general & admin. expenses

     21,322       19,056       43,191       38,725  

Restructuring and other charges

     1,435       (88 )     1,435       (88 )
    


 


 


 


Operating income

     8,851       10,371       14,677       18,474  

% of sales

     11.4 %     14.1 %     9.7 %     12.8 %

Other income, net

     634       405       2,085       879  
    


 


 


 


Income before income taxes

     9,485       10,776       16,762       19,353  

Income tax expense

     2,273       3,055       4,019       4,645  
    


 


 


 


Net income

   $ 7,212     $ 7,721     $ 12,743     $ 14,708  

% of sales

     9.3 %     10.5 %     8.4 %     10.2 %
    


 


 


 


Basic income per share

   $ 0.17     $ 0.19     $ 0.30     $ 0.36  

Basic weighted average shares outstanding

     42,120       41,420       42,044       41,207  

Diluted income per share

   $ 0.16     $ 0.18     $ 0.29     $ 0.34  

Diluted weighted average shares outstanding

     43,845       43,599       43,752       43,509  


Mykrolis Corporation

Condensed Consolidated Balance Sheets

(In thousands)

 

     (unaudited)
July 2,
2005


   Dec. 31,
2004


Assets

             

Cash and cash equivalents

   $ 83,564    $ 88,185

Marketable securities

     28,034      42,228

Accounts receivable, net

     58,858      62,456

Inventories

     43,399      41,835

Other current assets

     5,751      4,351
    

  

Total current assets

     219,606      239,055

Property, plant and equipment, net

     63,355      65,564

Goodwill and intangible assets, net

     51,529      33,015

Other assets

     14,008      13,334
    

  

Total assets

   $ 348,498    $ 350,968
    

  

Liabilities and shareholders’ equity

             

Accounts payable

   $ 16,379    $ 14,887

Accrued expenses and other current liabilities

     38,776      52,902
    

  

Total current liabilities

     55,155      67,789

Other liabilities

     12,408      11,664

Shareholders’ equity

     280,935      271,515
    

  

Total liabilities and shareholders’ equity

   $ 348,498    $ 350,968
    

  

 

###

 

Contacts:

 

Bertrand Loy, Chief Financial Officer

Steve Cantor, Director of Investor Relations and Corporate Communications

Tel#: 978-436-6500

Email: investor_relations@mykrolis.com