MYK Mykrolis Corp

Mykrolis Corporation Reports Fourth Quarter 2004 Financial Results Revenues of $74 million Rise 4 Percent Sequentially BILLERICA, Mass., Jan. 27 /PRNewswire-FirstCall/ -- Mykrolis Corporation (NYSE:MYK), a leading supplier of components and subsystems to the semiconductor industry, announced today fourth quarter revenues of $74.0 million, 4 percent higher than $71.4 million in the third quarter of 2004, and 27 percent higher than the comparable quarter a year ago. Net income per diluted share for the fourth quarter was $0.17, which was even with $0.17 in the third quarter of 2004. The Company reported a net income per diluted share of $0.09 in the fourth quarter a year ago. For fiscal 2004, revenues of $289.2 million increased 56 percent from $185.9 million for the same period a year ago. Net income per diluted share for fiscal 2004 was $0.68, compared to a net loss per diluted share of $0.20 for the same period a year ago. In the fourth quarter, sales of consumable filtration and purification products were $51.6 million, or 70 percent of total sales, and sales of equipment were $22.4 million, or 30 percent of total sales. Gideon Argov, Chief Executive Officer, commented on the results: "The fourth quarter was a successful cap to a very successful year. Aided by favorable foreign exchange rates, sales for the quarter grew sequentially and exceeded our expectations. Demand for consumable filtration products and photochemical dispense equipment remained firm across our semiconductor device manufacturers and OEM customers in Japan and Asia. Strong growth in Europe contrasted weaker sales in North America, which reflected slower demand from US-based semiconductor OEM tool manufacturers for our equipment products. "Our balance sheet remains solid, as we reduced our inventories from the third quarter and we increased our cash balances to $130 million," Argov said. Management Outlook For the first quarter of 2005, the Company anticipates revenue will be in the range of $65 to $71 million and net income per diluted share will be in the range of $0.04 to $0.12. Quarterly Earnings Call Mykrolis will hold a conference call to discuss its results for the fourth quarter today, Thursday, January 27, 2005 at 10:00 a.m. ET (7:00 a.m. PT). The conference call dial-in number is 800-818-5264; outside the U.S., the number is 913-981-4910. 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 February 17, 2005 by calling 719-457-0820 with passcode of 375614. Revenue by Geographic Region (in millions of US dollars): Q4 2004 Q4 2003 % Growth North America $16.4 $15.2 8 % Japan 27.6 22.2 24 % Asia 22.0 15.8 39 % Europe 8.0 5.0 60 % --------- --------- --------- Total $74.0 $58.2 27 % Q4 2004 Q3 2004 % Growth North America $16.4 $18.8 -13 % Japan 27.6 26.5 4 % Asia 22.0 19.6 12 % Europe 8.0 6.5 23 % --------- --------- --------- Total $74.0 $71.4 4 % FY 2004 FY 2003 % Growth North America $76.4 $49.3 55 % Japan 107.8 67.5 60 % Asia 77.5 50.4 54 % Europe 27.5 18.7 47 % --------- --------- --------- Total $289.2 $185.9 56 % About Mykrolis Mykrolis develops and manufactures fluid management and micro-contamination 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, the Company serves related markets including manufacturers of flat panel displays, fiber optics, solar cells, optical disks and data storage devices. 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) Three Months Ended Twelve Months Ended 12/31/2004 12/31/2003 12/31/2004 12/31/2003 (unaudited) (unaudited) Net sales $73,977 $58,183 $289,230 $185,898 Cost of sales 39,846 32,838 151,321 105,269 -------- -------- -------- -------- Gross profit 34,131 25,345 137,909 80,629 % of sales 46.1 % 43.6 % 47.7 % 43.3 % Research & development expenses 6,332 5,591 25,739 19,110 Selling, general & admin. expenses 19,802 16,544 75,737 64,795 Restructuring and other charges (125) (178) (213) 2,111 -------- -------- -------- -------- Operating income (loss) 8,122 3,388 36,646 (5,387) % of sales 11.0 % 5.8 % 12.7 % (2.9%) Other income, net 1,098 610 2,289 2,260 -------- -------- -------- -------- Income (loss) before income taxes 9,220 3,998 38,935 (3,127) Income tax expense 2,024 342 9,734 4,977 -------- -------- -------- -------- Net income (loss) $7,196 $3,656 $29,201 $(8,104) % of sales 9.7 % 6.3 % 10.1 % (4.4%) ======== ======== ======== ======== Basic income (loss) per share $0.17 $0.09 $0.70 $(0.20) Basic weighted average shares outstanding 41,865 40,336 41,491 39,939 Diluted income (loss) per share $0.17 $0.09 $0.68 $(0.20) Diluted weighted average shares outstanding 43,076 42,757 43,240 39,939 Mykrolis Corporation Condensed Consolidated Balance Sheets (In thousands) (unaudited) Dec. 31, Dec. 31, 2004 2003 Assets Cash and cash equivalents $108,185 $70,503 Marketable securities 22,228 -- Accounts receivable, net 62,456 46,698 Inventories 41,835 38,771 Other current assets 4,351 6,390 -------- -------- Total current assets 239,055 162,362 Marketable securities -- 14,266 Property, plant and equipment, net 65,564 71,033 Goodwill and intangible assets, net 33,015 24,939 Other assets 12,882 11,155 -------- -------- Total assets $350,516 $283,755 ======== ======== Liabilities and shareholders' equity Accounts payable $14,887 $12,613 Accrued expenses and other current liabilities 52,933 36,086 -------- -------- Total current liabilities 67,820 48,699 Other liabilities 11,664 12,028 Shareholders' equity 271,032 223,028 -------- -------- Total liabilities and shareholders' equity $350,516 $283,755 ======== ======== 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, or Web site: http://www.mykrolis.com/

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