DANBURY, Conn., July 26, 2006 (PRIMEZONE) -- ATMI, Inc. (Nasdaq:ATMI), a supplier of specialty materials and high-purity materials handling and delivery solutions to the world's leading semiconductor manufacturers, today announced revenues of $82.5 million for the second quarter of 2006, an increase of 19% from $69.3 million in the second quarter of 2005. Net income for the quarter increased by 26% to $10.1 million from $8.0 million in the second quarter of 2005, and earnings per share increased to $0.27 per diluted share from $0.22 per diluted share in the second quarter of 2005. Earnings per share includes share-based compensation expense of $0.05 per diluted share in the second quarter of 2006, compared to $0.01 per diluted share in the second quarter of 2005, inclusive of the adoption of FAS 123(R) in 2006.
For the six months ended June 30, 2006, revenues were $159.4 million, up 18% from $135.4 million in the comparable 2005 period. Net income increased 25% to $17.5 million from $14.0 million in the first half of 2005, and earnings per share increased to $0.46 per diluted share from $0.41 per diluted share for the first half of 2005. Earnings per share includes share-based compensation expense of $0.09 per share for the first half of 2006, compared to $0.02 per diluted share in the first half of 2005, inclusive of the adoption of FAS 123(R) in 2006.
Doug Neugold, ATMI Chief Executive Officer, said, "Our strong second quarter results reflect the momentum of both our advanced-generation chip materials as well as our more broadly used products. We expect to see continued momentum and strong financial performance through the second half of the year as our customers continue to expand their 65-nanometer and 90-nanometer production volumes, even though global wafer start growth may flatten."
Neugold continued, "Key customers are intensifying their efforts to reduce manufacturing costs and improve production throughput efficiencies, giving us significant opportunities to demonstrate how ATMI's products and technologies can improve their production yields, reduce their overall cost of manufacturing, and speed their time to market for new technology ramps."
Dan Sharkey, Chief Financial Officer said, "Strong SDS-3 volumes and higher cleaning materials shipments for advanced technology lines drove our strong revenue growth, highlighting our increasing new product sales. As expected, our gross margins for the second quarter increased sequentially from the first quarter, to 50.8% from 47.8%, in part reflecting that the inefficiencies resulting from ramping our new liquids packaging plant are behind us."
Sharkey continued, "In light of our strong second quarter results and the prospect of a relatively flat wafer start environment, particularly at the foundries, we estimate third quarter revenues in the $80 to $85 million range, and diluted earnings per share in the $0.24 to $0.29 range. In the second quarter, ATMI purchased $18 million of stock under our previously announced $75 million share repurchase program, bringing the repurchase total to $42 million to date."
A conference call (dial-in: 888.822.9375) discussing the company's recent financial results and business outlook will begin at 11:00 a.m. Eastern time, July 26, 2006. A replay of the call will be available for 48 hours (dial-in: 800.642.1687; access code 837809). An audio webcast of the conference call will be available for 30 days on atmi.com.
ATMI provides specialty materials and high-purity materials handling and delivery solutions 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 2006 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 and commercializing new products; problems or delays in integrating acquired operations and businesses; and other factors described in ATMI's 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 INCOME STATEMENTS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2006 2005 2006 2005
---- ---- ---- ----
Revenues $ 82,484 $ 69,269 $159,420 $135,366
Cost of revenues 40,542 34,457 80,670 66,370
-------- -------- -------- --------
Gross profit 41,942 34,812 78,750 68,996
Operating expenses:
Research and development 6,228 5,711 12,357 10,995
Selling, general, and
administrative 23,065 18,506 45,107 37,940
-------- -------- -------- --------
Total operating expenses 29,293 24,217 57,464 48,935
-------- -------- -------- --------
Operating income 12,649 10,595 21,286 20,061
Other income, net 2,240 1,297 4,610 964
-------- -------- -------- --------
Income before income taxes 14,889 11,892 25,896 21,025
Income taxes 4,839 3,925 8,416 7,007
-------- -------- -------- --------
Net income $ 10,050 $ 7,967 $ 17,480 $ 14,018
======== ======== ======== ========
Diluted earnings per share $ 0.27 $ 0.22 $ 0.46 $ 0.41
Weighted-average shares
outstanding
37,502 37,034 37,669 34,533
ATMI, INC.
SCHEDULE OF SHARE-BASED COMPENSATION
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2006(1) 2005(2) 2006(3) 2005(4)
------- ------- ------- -------
Cost of revenues $ 211 $ -- $ 494 $ --
Research and development 183 -- 410 --
Selling, general, and
administrative 2,196 549 4,459 1,099
------- ------- ------- -------
Total share-based
compensation expense 2,590 549 5,363 1,099
------- ------- ------- -------
Benefit from income
taxes 883 178 1,829 364
------- ------- ------- -------
Net share-based
compensation expense $ 1,707 $ 371 $ 3,534 $ 735
======= ======= ======= =======
(1) Amounts include amortization expense related to stock
options of $1.8 million, employee stock purchase plan of $0.2
million, and restricted stock awards of $0.6 million,
recorded under FAS 123(R).
(2) Amounts include amortization expense related to restricted
stock awards of $0.5 million, recorded under APB 25.
(3) Amounts include amortization expense related to stock
options of $3.4 million, employee stock purchase plan of $0.3
million, and restricted stock awards of $1.6 million,
recorded under FAS 123(R).
(4) Amounts include amortization expense related to restricted
stock awards of $1.1 million, recorded under APB 25.
ATMI, INC.
SUMMARY BALANCE SHEETS
(in thousands)
Balance Sheet Highlights June 30, December 31,
-------- ------------
2006 2005
---- ----
(Unaudited)
Assets
Cash & marketable securities (a) $219,151 $209,851
Accounts receivable, net 53,439 47,125
Inventory, net 46,106 39,850
Other current assets 24,015 21,675
-------- --------
Total current assets 342,711 318,501
Fixed assets, net 86,586 82,821
Marketable securities, non-current (a) 23,247 46,286
Other assets 48,356 52,228
-------- --------
Total assets $500,900 $499,836
-------- --------
Liabilities and stockholders' equity
Accounts payable $ 16,277 $ 11,910
Other current liabilities 27,285 31,746
-------- --------
Total current liabilities 43,562 43,656
Non-current liabilities 1,800 3,460
Stockholders' equity 455,538 452,720
-------- --------
Total liabilities & stockholders' equity $500,900 $499,836
-------- --------
(a) Total cash and marketable securities equaled $242.4 million and
$256.1 million at June 30, 2006 and December 31, 2005,
respectively.