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.