ATMI Atmi Inc. (MM)

ATMI Reports First Quarter Financial Results DANBURY, Conn., April 21 /PRNewswire-FirstCall/ -- ATMI, Inc. , a supplier of materials and materials packaging to the world's leading semiconductor manufacturers, today announced revenues of $56.0 million for the first quarter of 2004, an increase of 51% from $37.0 million in the first quarter of 2003, and an increase of 7% over $52.4 million in the fourth quarter of 2003. Continuing operations in the first quarter generated income of $4.0 million, or $0.12 per diluted share. In the first quarter of last year, income from continuing operations was $0.9 million, or $0.03 per diluted share. In the fourth quarter of 2003, continuing operations generated income of $5.6 million, or $0.18 per diluted share, which included a one-time $0.10 per share tax benefit and a $0.03 per share charge for an investment write-down. Overall, net income for the first quarter was $6.1 million, or $0.19 per diluted share, which includes $0.04 per share from activities of discontinued operations, and a gain of $0.03 per share related to the sale of the gallium nitride business. For the first quarter of 2003, net loss was $1.6 million, or $0.05 per diluted share, which included a loss of $0.08 per share from discontinued operations. Net income for the fourth quarter of 2003 was $5.2 million, or $0.17 per diluted share, which included a $0.01 per share loss from discontinued operations and the one-time tax benefit of $0.10 per share, partially offset by the $0.03 per share investment write-down. Gene Banucci, ATMI Chief Executive Officer, said, "The semiconductor industry continued to grow strongly during the first quarter. We believe overall worldwide wafer starts were up, on the order of 3-4% sequentially, with growth rates in Taiwan exceeding 7%. We expect continued industry growth in the second quarter, and believe that growth in wafer starts for the year will come in slightly above our previous range of 9-11%." Doug Neugold, ATMI Chief Operating Officer, said, "The first quarter showed broad-based strength. SDS(R) sub-atmospheric gas storage and delivery and materials packaging product sales were strong. Overall gross margin didn't reach the levels we wanted during the quarter because of additional costs to expedite product deliveries to Taiwan on stronger than expected demand, combined with costs related to scaling manufacturing on certain new products. We anticipate improving gross margin levels in the second half. In the copper materials market, our ST-250 post-etch stripping product appears to be gaining traction worldwide. So much so, we are already preparing capacity expansions for this, and related, product lines." Dan Sharkey, Chief Financial Officer said, "During the quarter, we completed the first divestiture of our businesses held for sale, with the sale of our Gallium Nitride business to Cree for $10.25 million in cash. With buyer interest in the remaining businesses quite high, negotiations on a number of the other discontinued businesses are well underway." ATMI provides specialty materials and materials packaging to the worldwide semiconductor industry. For more information, please visit atmi.com. 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 2004 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 or ATMI's markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses into ATMI; problems or delays associated with any restructuring activity, or implementing any strategy, including resolution of the various discontinued elements of ATMI's Technologies segment; and other factors discussed in ATMI's filings with the Securities and Exchange Commission. Such risks and uncertainties could cause actual results to differ from those projected. ATMI undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Note: A conference call (800.289.0544) discussing financial results will begin at 11:00 a.m. Eastern time, April 21st, 2004. A replay (888.203.1112, PIN 12085) of the call will be available for 48 hours. An audio webcast of the conference call will be available for 30 days on atmi.com. ATMI, INC. SUMMARY STATEMENTS OF OPERATION (in thousands, except per share data) Three Months Ended March 31, 2004 2003 Revenues $56,019 $37,039 Cost of revenues 28,792 18,894 Gross profit 27,227 18,145 Operating expenses R & D 4,741 4,203 S, G, & A 15,684 12,627 20,425 16,830 Operating income 6,802 1,315 Other expense, net (697) (19) Income before income taxes 6,105 1,296 Income taxes (2,137) (372) Income from continuing operations 3,968 924 Income (loss) from operations of discontinued operations 1,120 (2,542) Gain on disposal of discontinued operations 1,024 -- Net income (loss) $6,112 ($1,618) Diluted earnings per share from continuing operations $0.12 $0.03 Diluted earnings (loss) per share from operations of discontinued operations $0.04 ($0.08) Diluted earnings per share from gain on disposal of discontinued operations $0.03 -- Diluted earnings (loss) per share $0.19 ($0.05) Weighted average shares outstanding 31,739 30,913 ATMI, INC. SUMMARY BALANCE SHEETS (in thousands) Balance Sheet Highlights March 31, December 31, 2004 2003 Assets Cash & marketable securities $137,730 $128,700 Accounts receivable, net 48,945 38,439 Inventory, net 30,637 21,564 Assets held for sale 71,980 84,736 Other current assets 17,422 16,280 Total current assets 306,714 289,719 Fixed assets, net 65,903 64,673 Other assets 59,059 60,050 Total assets $431,676 $414,442 Liabilities and stockholders' equity Accounts payable $13,013 $11,743 Short-term debt 947 1,047 Liabilities held for sale 8,695 7,196 Other current liabilities 29,566 24,799 Total current liabilities 52,221 44,785 Long-term debt 115,203 115,290 Other long-term liabilities 105 116 Stockholders' equity 264,147 254,251 Total liabilities & stockholders' equity $431,676 $414,442 DATASOURCE: ATMI, Inc. CONTACT: Dean Hamilton of ATMI, direct, +1-203-207-9349, +1-203-794-1100 ext. 4202, Web site: http://www.atmi.com/

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