DANBURY, Conn., Feb. 7, 2007 (PRIME NEWSWIRE) -- ATMI, Inc. (Nasdaq:ATMI) today reported revenue, net income, and diluted earnings per share for both the fourth quarter and full year ended December 31, 2006.
For the fourth quarter, revenues increased 10% to $84.4 million, compared with $76.7 million in the fourth quarter of 2005. Net income increased 32% to $11.1 million, compared with $8.5 million a year earlier, while earnings per diluted share increased 41% to $0.31, compared to $0.22 per diluted share for the fourth quarter of 2005.
For the full year, revenues increased 16% to $325.9 million, compared with $281.8 million in 2005. Net income for 2006 increased 30% to $40.0 million, compared with $30.7 million last year, and earnings per diluted share increased 27% to $1.08 versus $0.85 for 2005.
Earnings per share results for 2006 include equity-based compensation expense of $0.03 per diluted share for the fourth quarter and $0.17 per diluted share for the full year, compared to $0.01 per diluted share in the fourth quarter of 2005 and $0.04 per diluted share for the full year 2005.
"We continued to grow at double the rate of overall semiconductor manufacturing wafer starts in 2006, which reflects the importance our top-tier customers place on ATMI's process efficiency materials expertise and products," said Doug Neugold, Chief Executive Officer. "Key customers continue their longer term focus on advanced process technologies. As recent technical announcements by leading device makers have made clear, semiconductor processing is about to step up to a new level of sophistication and complexity."
Neugold continued, "Alongside the expansion of opportunities for ATMI in logic chips for the 45-nanometer generation, memory manufacturers are beginning to shift into copper materials, which should enhance our future growth. This year we will introduce several new process efficiency products -- like AutoClean(tm) for in-situ ion implantation chamber cleaning and RegenSi(tm) for wafer reclaim cleaning. These new processes have broad application in substantially reducing fab downtime across all technology generations, thereby offering significant value to customers and enlarging potential revenue opportunities for ATMI."
Dan Sharkey, Chief Financial Officer, said, "ATMI's product sales were strong for the fourth quarter. Gross margins were 50.6% for the fourth quarter, up about 200 basis points year-over-year, although below the level we had targeted, as strong memory demand pulled through higher volumes of lower margin products.
"Operating expenses declined as a percentage of revenues," Sharkey said. "Operating margins increased from 13.2% in the fourth quarter of 2005 to 15.7% in the fourth quarter of 2006, including about $930,000 of incremental expense in the fourth quarter of 2006 related to FAS 123(R). We anticipate continued operating leverage from strong revenue growth resulting from our focus on new products and new value-added process efficiency solutions.
"We are optimistic about our growth and performance outlook for 2007 and expect first quarter 2007 revenues in the range of $84 to $88 million, with earnings per diluted share between $0.28 and $0.32."
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, February 7, 2007. A replay of the call will be available for 48 hours (dial-in: 800.642.1687, with ID code 8030404). 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 2007 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $ 84,369 $ 76,652 $325,913 $281,754
Cost of revenues 41,644 39,286 162,530 140,251
-------- -------- -------- --------
Gross profit 42,725 37,366 163,383 141,503
Operating expenses:
Research and development 7,187 5,544 26,217 22,284
Selling, general, and
administrative 22,267 21,718 90,149 78,810
-------- -------- -------- --------
Total operating expenses 29,454 27,262 116,366 101,094
-------- -------- -------- --------
Operating income 13,271 10,104 47,017 40,409
Other income, net 2,140 2,184 8,839 4,975
-------- -------- -------- --------
Income before income taxes 15,411 12,288 55,856 45,384
Income taxes 4,284 3,837 15,895 14,662
-------- -------- -------- --------
Net income $ 11,127 $ 8,451 $ 39,961 $ 30,722
======== ======== ======== ========
Diluted earnings per share $ 0.31 $ 0.22 $ 1.08 $ 0.85
Weighted-average
shares outstanding 35,728 37,906 36,859 36,276
ATMI, INC.
SCHEDULE OF EQUITY BASED COMPENSATION
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------- ---------------
2006(1) 2005(2) 2006(3) 2005(4)
------ ------ ------ ------
Cost of revenues $ 168 $ --- $ 910 $ ---
Research and development 158 --- 773 ---
Selling, general, and
administrative 1,167 566 7,681 2,226
------ ------ ------ ------
Total equity based compensation
expense 1,493 566 9,364 2,226
------ ------ ------ ------
Benefit from income taxes 500 180 3,137 720
------ ------ ------ ------
Net equity based compensation
expense $ 993 $ 386 $6,227 $1,506
====== ====== ====== ======
(1) Amounts include equity-based compensation expense related to
stock options of $0.9 million, employee stock purchase plan of
$0.1 million, and restricted stock awards of $0.5 million,
recorded under FAS 123(R).
(2) Amounts include equity-based compensation expense related to
restricted stock awards of $0.6 million, recorded under APB 25.
(3) Amounts include equity-based compensation expense related to
stock options of $5.8 million, employee stock purchase plan of
$0.5 million, and restricted stock awards of $3.1 million,
recorded under FAS 123(R).
(4) Amounts include equity-based compensation expense related to
restricted stock awards of $2.2 million, recorded under APB 25.
ATMI, INC.
SUMMARY BALANCE SHEETS
(in thousands)
December 31,
---------------------
Balance Sheet Highlights 2006 2005
-------- --------
Assets
Cash & marketable securities(1) $204,687 $209,851
Accounts receivable, net 55,867 47,125
Inventory, net 47,339 39,850
Other current assets 24,341 21,675
-------- --------
Total current assets 332,234 318,501
Fixed assets, net 92,719 82,821
Marketable securities, non-current(1) 14,379 46,286
Other assets 48,705 52,228
-------- --------
Total assets $488,037 $499,836
-------- --------
Liabilities and stockholders' equity
Accounts payable $ 20,144 $ 11,910
Other current liabilities 30,728 31,746
-------- --------
Total current liabilities 50,872 43,656
Non-current liabilities 1,669 3,460
Stockholders' equity 435,496 452,720
-------- --------
Total liabilities & stockholders' equity $488,037 $499,836
-------- --------
(1) Total cash and marketable securities equaled $219.1 million
and $256.1 million at December 31, 2006 and December 31, 2005,
respectively.