ATMI Reports Second Quarter Financial Results


DANBURY, Conn., July 25, 2007 (PRIME NEWSWIRE) -- ATMI, Inc. (Nasdaq:ATMI) today announced that revenues increased 12% to a record $92.4 million for the second quarter of 2007, compared with $82.5 million in the second quarter of 2006. Net income decreased 8% to $9.3 million, compared with $10.1 million a year ago, while earnings per diluted share were $0.26, compared with $0.27 per diluted share in the second quarter of 2006.

For the six months ended June 30, 2007, revenues were $174.6 million, up 10% from $159.4 million in the comparable 2006 period. Net income decreased 11% to $15.6 million from $17.5 million in the first half of 2006, and earnings per share decreased to $0.44 per diluted share from $0.46 per diluted share for the first half of 2006.

Doug Neugold, ATMI Chief Executive Officer, said, "This past quarter has been a good one for us. We began the quarter with a design quality problem in our packaging business and some costly, but important, ongoing patent litigation. During the quarter we solved the design problem and began refilling our supply chain with the redesigned product. On the legal front, our spending commitment for patent litigation to protect our intellectual property was rewarded by some recent success in the courts. Furthermore, the market environment for advanced logic production, which had been pretty weak since the middle of last year, strengthened noticeably in the quarter, complementing the strong memory environment of the last few quarters."

Neugold continued, "Our significant R&D investments and new product efforts are generating a lot of interest. Our RegenSi(sm) wafer reclamation/cleaning materials are in use at multiple fabs by multiple customers. In addition, our AutoClean(tm) technology for ion implanters is delivering substantial improvements in source life, tool utilization, and throughput for multiple customers. Both products are now fully released and should contribute to our second half revenue growth."

Dan Sharkey, Chief Financial Officer, said, "Second quarter revenues benefited from strong end-of-quarter sales, principally driven by our SDS(r)3 product ramp, as well as healthy deposition chemistry delivery equipment sales into memory fabs. Revenues in our packaging business are also recovering. Our operating expenses were higher than we anticipated in the quarter, primarily due to a $1.1 million contingent legal fee payable as a result of the favorable ruling we achieved in June."

Sharkey continued, "Initial SDS3 stocking orders were filled for several customers in the second quarter. However, SDS3 revenues in the third quarter are likely to be lower as those stocking orders are consumed and customer order patterns more closely reflect ongoing production. We estimate revenues in the $87 million to $92 million range for the third quarter, with diluted earning per share between $0.27 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, July 25, 2007. A replay of the call will be available for 48 hours at 800.642.1687 (access code 6644715). 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.

ATMI, AutoClean, RegenSi, and SDS are trademarks or registered trademarks in the United States, other countries, or both.

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 STATEMENTS OF INCOME
                  (in thousands, except per share data)
                             (Unaudited)

                            Three Months Ended        Six Months Ended
                            ------------------        ----------------
                                 June 30,                 June 30,
                                 --------                 --------
                              2007       2006        2007        2006
                              ----       ----        ----        ----
 Revenues                  $ 92,432   $ 82,484    $174,586    $159,420
 Cost of revenues            47,247     40,542      90,127      80,670
                           --------   --------    --------    --------
 Gross profit                45,185     41,942      84,459      78,750
 Operating expenses:
   Research and development   7,298      6,228      14,544      12,357
   Selling, general, and
    administrative           26,238     23,065      50,790      45,107
                           --------   --------    --------    --------
   Total operating 
    expenses                 33,536     29,293      65,334      57,464
                           --------   --------    --------    --------

 Operating income            11,649     12,649      19,125      21,286

 Other income, net            1,916      2,240       3,807       4,610
                           --------   --------    --------    --------

 Income before income taxes  13,565     14,889      22,932      25,896

 Income taxes                 4,294      4,839       7,338       8,416
                           --------   --------    --------    --------

 Net income                $  9,271   $ 10,050    $ 15,594    $ 17,480
                           ========   ========    ========    ========


 Diluted earnings per share   $0.26      $0.27       $0.44       $0.46

 Weighted-average shares
  outstanding                35,369     37,502      35,486      37,669




                               ATMI, INC.
                  SCHEDULE OF EQUITY-BASED COMPENSATION
                  (in thousands, except per share data)
                              (Unaudited)

                          Three Months Ended         Six Months Ended
                          ------------------         ----------------
                               June 30,                  June 30,
                               --------                  --------
                          2007 (a)    2006 (b)     2007 (c)    2006 (d)
                          --------    --------     --------    --------

 Cost of revenues         $    187    $    211     $    139    $    494
 Research and development      207         183          249         410
 Selling, general, &
  administrative             2,006       2,196        3,873       4,459
                          --------    --------     --------    --------
 Total equity-based
  compensation expense       2,400       2,590        4,261       5,363
                          --------    --------     --------    --------
 Benefit from income 
  taxes                        772         883        1,427       1,829
                          --------    --------     --------    --------

 Equity-based compensation
   Expense, net of income 
    taxes                 $  1,628    $  1,707     $  2,834    $  3,534
                          ========    ========     ========    ========

  (a) Amounts include amortization expense related to stock options of
      $1.4 million, and restricted stock awards of $1.0 million,
      recorded under FAS 123(R).

  (b) 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).

  (c) Amounts include amortization expense related to stock options of
      $2.6 million, and restricted stock awards of $1.5 million,
      recorded under FAS 123(R).

  (d) 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).


                                  ATMI, INC.
                           SUMMARY BALANCE SHEETS
                                (in thousands)

 Balance Sheet Highlights                  June 30,    December 31,
                                           -------     -----------
                                            2007           2006
                                            ----           ----
                                         (Unaudited)
                                         -----------
 Assets
    Cash & marketable securities (a)      $213,757        $204,687
    Accounts receivable, net                60,004          55,867
    Inventories, net                        46,209          47,339
    Other current assets                    24,603          24,341
                                          --------        --------
       Total current assets                344,573         332,234
    Property, plant, and equipment,
     net                                    95,111          92,719
    Marketable securities,
     non-current (a)                         7,065          14,379
    Other assets                            48,450          48,705
                                          --------        --------
         Total assets                     $495,199        $488,037
                                          --------        --------

 Liabilities and stockholders'
  equity
    Accounts payable                      $ 20,751        $ 20,144
    Other current liabilities               28,225          30,728
                                          --------        --------
      Total current liabilities             48,976          50,872
    Non-current liabilities                  3,874           1,669
    Stockholders' equity                   442,349         435,496
                                          --------        --------
       Total liabilities &
        stockholders' equity              $495,199        $488,037
                                          --------        --------

  (a) Total cash and marketable securities equaled $220.8 million and
      $219.1 million at June 30, 2007 and December 31, 2006,
      respectively.


            

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