ATMI Reports First Quarter 2012 Financial Results
25 April 2012 - 8:58PM
ATMI, Inc. (Nasdaq:ATMI) today reported financial
results for the first quarter of 2012, which include the effects of
the SDS Direct Transaction.
Revenues were $92.6 million for the first quarter of 2012 —
including a $2.5 million negative effect from the SDS Direct
Transaction — down 8% compared with $100.7 million in the first
quarter of 2011. Earnings per diluted share were $0.12, including a
$0.04 reduction in earnings per diluted share due to activities
associated with the SDS Direct Transaction, compared with earnings
per diluted share of $0.25 in the first quarter of 2011.
The attached tables contain a reconciliation of the U.S. GAAP
results to the non-GAAP measures for the first quarters of 2012 and
2011, excluding the effect from the SDS Direct Transaction. A table
containing segment information also is attached.
"Overall, the first quarter was a bit softer than expected in
both our Microelectronics and LifeSciences businesses. On the
Microelectronics side, excluding the impact of SDS, the decline in
first quarter revenue reflected lower sales of trailing edge
technology products resulting principally from slower than expected
wafer starts at certain customers, and a decline in sales to the
display panel market. In our LifeSciences business, the revenue
shortfall was the result of timing issues related to the ramping of
new single-use production lines," said Doug Neugold, chairman,
chief executive officer and president. "Looking
forward we believe wafer starts are increasing and are confident
that our Microelectronics business will improve consistent with
anticipated growth in wafer starts, as well as from the expected
impact of SDS and ramping new product sales. Across the board, we
see the strongest demand at technology's leading edge where our
customers are producing as many chips as their capacity will allow.
Our focus on solving their materials process issues is vitally
important to them as they work hard to ramp additional 28-nanometer
volume and capacity to meet customer demand."
Neugold continued, "Our SDS Direct integration work and
incremental transition spending is rapidly nearing conclusion. With
the exception of China, we have moved all of the planned business
directly under the ATMI umbrella. The feedback from customers
has been very reinforcing, and we have already initiated
collaboration discussions with end users and OEMs focused on
improving their processes, validating one of our primary reasons
for the deal."
"The Microelectronics industry softness in the quarter was
reflected in our results," said Tim Carlson, chief financial
officer. "Our Microelectronics revenues were consistent with the
industry bottoming during the quarter, particularly with certain
foundry customers. We continued to make additional
investments in LifeSciences, to speed product introductions and
increase market share, and beginning this quarter, we began
reporting segment results, which increases visibility of our
LifeSciences activities."
Carlson continued, "We had $2.3 million of SDS integration,
transition and operational spending during the quarter and
anticipate completing the China business transition during the
second quarter. Once completed, we anticipate incremental
revenues of $7 million to $8 million per quarter and $0.08 to $0.09
of incremental quarterly earnings per diluted share as compared to
our pre-transaction run-rate."
A conference call (dial-in: 877.766.0748) discussing the
Company's financial results and business outlook will begin at
11:00 a.m. Eastern time, April 25, 2012. A replay of the call will
be available for 48 hours at 855.859.2056 (access code 41878231).
An audio webcast of the conference call will be available for 30
days on atmi.com.
About ATMI
ATMI, Inc. provides specialty semiconductor materials, and
high-purity materials handling and delivery solutions designed to
increase process efficiencies for the worldwide semiconductor, flat
panel, and life sciences industries. For more information, please
visit http://www.atmi.com.
ATMI, the ATMI logo, and SDS are trademarks or
registered trademarks of Advanced Technology Materials, Inc., in
the United States, other countries, or both.
The ATMI, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5254
Use of Non-GAAP Measures
ATMI believes that a breakdown, presented on an income statement
line-item basis, of how the SDS Direct transaction contributed to
the change in net income and other line items is useful to an
understanding of the overall change in the consolidated results of
operations for ATMI from one reporting period to another. ATMI
presents such amounts related to the SDS Direct transaction in a
separate column following the dollar amounts shown for the
applicable period's results, booked in accordance with generally
accepted accounting principles (GAAP), and then by presenting a
third column showing the non-GAAP results excluding the effect of
the SDS Direct transaction.
Forward Looking Statements
Statements contained herein that relate to ATMI's future
performance, including, without limitation, statements with respect
to ATMI's anticipated results of operations or level of business
for 2012 or any other future period, are forward-looking statements
within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are based on current
expectations only and are subject to certain risks, uncertainties,
and assumptions, including, but not limited to, changes in
semiconductor industry growth (including, without limitation, wafer
starts) or ATMI's markets; competition, problems, or delays
developing, commercializing, and delivering new products;
customer-driven pricing pressure; potential loss of key customers;
problems or delays in integrating acquired operations and
businesses; uncertainty in the credit and financial markets;
ability to protect ATMI's proprietary technology; and other factors
described in ATMI's Form 10-K for the year ended December 31, 2011
and other subsequent filings with the Securities and Exchange
Commission. Such risks and uncertainties may cause actual results
to differ materially from those expressed in our forward-looking
statements. ATMI undertakes no obligation to update any
forward-looking statements.
|
|
ATMI,
INC. |
SUMMARY STATEMENTS OF
INCOME |
(in thousands, except
per share data) |
|
|
|
|
Three Months
Ended |
|
March 31, |
|
2012 |
2011 |
Revenues |
$92,574 |
$100,724 |
Cost of revenues |
48,392 |
52,633 |
Gross profit |
44,182 |
48,091 |
Operating expenses: |
|
|
Research and development |
14,489 |
13,451 |
Selling, general, &
administrative |
23,546 |
22,982 |
Total operating expenses |
38,035 |
36,433 |
|
|
|
Operating income |
6,147 |
11,658 |
|
|
|
Other income, net |
19 |
300 |
|
|
|
Income before income taxes |
6,166 |
11,958 |
|
|
|
Provision for income taxes |
2,304 |
3,951 |
|
|
|
Net income |
$3,862 |
$8,007 |
|
|
|
|
|
|
Earnings per diluted share |
$0.12 |
$0.25 |
|
|
|
Weighted average shares outstanding |
32,842 |
32,384 |
|
ATMI,
INC. |
SUMMARY BALANCE
SHEETS |
(in
thousands) |
|
|
|
|
March 31, |
December 31, |
|
2012 |
2011 |
|
(Unaudited) |
|
Assets |
|
|
Cash & marketable
securities (1) |
$104,531 |
$110,155 |
Accounts receivable,
net |
54,961 |
51,563 |
Inventories, net |
82,418 |
73,622 |
Other current assets |
38,156 |
35,848 |
Total current assets |
280,066 |
271,188 |
Property, plant, and
equipment, net |
115,412 |
116,275 |
Marketable securities,
non-current (1) |
3,329 |
3,329 |
Other assets |
122,400 |
122,894 |
Total assets |
$521,207 |
$513,686 |
|
|
|
Liabilities and stockholders' equity |
|
|
Accounts payable |
$27,426 |
$20,779 |
Other current
liabilities |
21,833 |
24,177 |
Total current
liabilities |
49,259 |
44,956 |
Non-current
liabilities |
19,048 |
18,399 |
Stockholders' equity |
452,900 |
450,331 |
Total liabilities &
stockholders' equity |
$521,207 |
$513,686 |
|
|
|
(1) Total cash and
marketable securities equaled $107.9 million and $113.5 million at
March 31, 2012 and December 31, 2011, respectively. |
|
|
|
|
ATMI,
INC. |
Segment
Results |
(in
thousands) |
|
|
|
|
|
|
Revenue |
Operating income
(loss) |
|
March
31, |
March
31, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Microelectronics |
$83,455 |
$89,901 |
$21,020 |
$24,216 |
LifeSciences |
9,109 |
10,575 |
(2,126) |
(459) |
All other |
10 |
248 |
(12,747) |
(12,099) |
Total |
92,574 |
100,724 |
6,147 |
11,658 |
|
|
|
|
|
Consolidated Total |
$92,574 |
$100,724 |
$6,147 |
$11,658 |
|
|
ATMI,
INC. |
RECONCILIATION OF U.S.
GAAP to NON-GAAP RESULTS |
(Non-GAAP Excludes
Effects of SDS Direct Transaction) |
(in millions, except
per share data)* |
|
|
|
|
|
|
Q1 |
|
|
|
|
|
|
US GAAP 2012 |
SDS Direct 2012 |
Non-GAAP 2012 |
US GAAP 2011 |
|
|
|
|
|
Revenues (1) |
$92.6 |
($2.5) |
$95.1 |
$100.7 |
|
|
|
|
|
Cost of Revenues (2) |
$48.4 |
($1.3) |
$49.7 |
$52.6 |
|
|
|
|
|
Gross Profit |
$44.2 |
($1.2) |
$45.4 |
$48.1 |
% of Revenue |
47.7% |
48.2% |
47.7% |
47.7% |
|
|
|
|
|
Operating Expense (3) |
$38.0 |
$1.0 |
$37.0 |
$36.4 |
|
|
|
|
|
Operating Profit |
$6.1 |
($2.2) |
$8.4 |
$11.7 |
% of Revenue |
6.6% |
|
8.8% |
11.6% |
|
|
|
|
|
Other Income |
$0.0 |
$0.0 |
$0.0 |
$0.3 |
|
|
|
|
|
Income Taxes |
$2.3 |
($0.8) |
$3.1 |
$4.0 |
Effective Tax Rate (4) |
37.4% |
36.7% |
37.0% |
33.0% |
|
|
|
|
|
Net Income |
$3.9 |
($1.4) |
$5.3 |
$8.0 |
|
|
|
|
|
EPS |
$0.12 |
($0.04) |
$0.16 |
$0.25 |
|
|
|
|
|
Shares |
32.8 |
32.8 |
32.8 |
32.4 |
|
|
|
|
|
|
(1) $2.5M adjustment for
inventory repurchases/burn, net of incremental revenues
realized |
(2) $1.3M adjustment for cost of
inventory associated with repurchased inventory/inventory burn,
partially offset by transition service costs and incremental costs
on revenues realized |
(3) $1.0M of incremental
operating expenses |
(4) Net tax effect of the items
above, at an effective tax rate of 36.7% |
|
|
|
|
|
* The table above contains
certain immaterial differences in totals, due to effects of
rounding |
CONTACT: Dan Sharkey,
Executive Vice President
203.207.9311
dsharkey@atmi.com
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