Entegris Reports Results for Third Quarter of Fiscal 2007

CHASKA, Minnesota, UNITED STATES


CHASKA, Minn. and MINNEAPOLIS, Oct. 29, 2007 (PRIME NEWSWIRE) -- Entegris, Inc. (Nasdaq:ENTG) today reported its financial results for its fiscal third quarter ended September 29, 2007. Highlights for the quarter included:



  *  Sales of $151.8 million
  *  Net income per share of $0.07
  *  Modified gross margin improved 100 basis points to 43.7 percent
  *  Non-GAAP operating margin of 11.1 percent
  *  Non-GAAP EPS of $0.10
  *  Cash flow from operations of $25.1 million

Third-quarter sales were $151.8 million, versus $169.9 million for the prior-year period and $153.5 million for the second quarter of fiscal 2007.

Third-quarter net income was $8.4 million, or $0.07 per fully diluted share, which includes a loss from discontinued operations of $0.5 million net of tax. On a non-GAAP basis, third-quarter net income was $11.4 million, or $0.10 per diluted share. The non-GAAP result is adjusted to exclude the effects of merger-related and other restructuring charges. A reconciliation of GAAP to non-GAAP results is provided elsewhere in this release. The third-quarter results include total pretax stock-based compensation of $2.9 million, or $0.02 per fully diluted share, of which $0.4 million represents integration-related stock-based compensation expense.

Sales for the nine months ended September 29, 2007, were $464.9 million. Net income was $33.6 million, or $0.26 per diluted share, which includes a loss from discontinued operations of $1.6 million. On a non-GAAP basis, net income was $40.3 million, or $0.31 per diluted share.

Gideon Argov, president and chief executive officer, said: "We are pleased with our results for the third quarter, particularly in light of current industry conditions. Sales of unit-driven products, which were 61 percent of total third-quarter sales, were up from the second quarter. Sales of our capital spending-driven products, which were 39 percent of sales, declined 5 percent from the prior quarter, reflecting reduced industry spending."

Argov added: "Our third-quarter operating margin improved despite slightly lower sales. We also generated $25 million in cash from operations even as we continued to invest in key product, market, and manufacturing initiatives. With one of the broadest lines of innovative contamination control solutions in our markets, we believe our largely unit-driven business model provides a solid platform to maximize profitability and cash flow through the industry cycle."

Through the first nine months of fiscal 2007, the Company generated $99.2 million in cash from operations and ended the quarter with $125.9 million of cash and cash equivalents.

In October 2007, the Company initiated a series of transactions in the form of inter-company dividends and loans from its Japanese subsidiary that will allow approximately $100 million of its cash balances outside the U.S. to be used to support the Company's business development activity as well as potential stock repurchases. Of the $100 million, approximately $70 million relates to cash on hand and $30 million is to be funded by low-interest loans from Japanese banks. These transactions will likely result in an estimated $10 million U.S. tax benefit in the fourth quarter of fiscal 2007.

Outlook

For its fourth quarter ending December 31, 2007, the Company expects sales to be approximately $144 million to $152 million. Net income per diluted share is expected to range from $0.05 to $0.07, excluding any impact from the inter-company dividend. Non-GAAP net income per diluted share is expected to range from approximately $0.07 to $0.10, excluding any impact from the inter-company dividend. Non-GAAP net income per share amounts reflect pretax adjustments for merger-related amortization expense of $3.9 million and integration-related stock-based compensation expense of approximately $0.3 million.

Third-Quarter Results Conference Call Details

Entegris will hold a conference call to discuss its results for the 2007 third quarter on Monday, October 29, 2007, at 10:00 a.m. Eastern Time. Participants should dial 1-888-202-2422 (domestic callers) or 1-913-981-5545 (callers outside the U.S.); all callers should use passcode 8788461. A replay of the call can be accessed at 1-719-457-0820 using the same passcode. The webcast of the call may be accessed from the investor relations portion of the Entegris website at www.entegris.com.

About Entegris

Entegris is the global leader in materials integrity management, delivering a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in semiconductor and other high-tech industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

Non-GAAP Information

In addition to reporting results that are determined in accordance with generally accepted accounting principles in the U.S. (GAAP), the Company also reports non-GAAP results of operations that exclude certain expenses and charges. These non-GAAP results are provided as a complement to results provided in accordance with GAAP in order to provide investors with relevant and useful information about the Company's ongoing operations. As such, non-GAAP information primarily excludes expenses and charges resulting from purchase accounting and integration activities associated with the Company's August 2005 merger with Mykrolis Corporation and the August 2007 acquisition of Surmet Corporation. Earnings guidance for the quarter ending December 31, 2007 is disclosed on both a GAAP and a non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information discussed in this release is contained in the attached exhibits and on the Company's website at www.entegris.com.

Forward-Looking Statements

Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, which involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements which are modified by words such as "anticipate," "believe," "estimate," "expect," "forecast," "may," "will," "should" or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris' stock, future operating results of Entegris, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris' periodic public filings with the Securities and Exchange Commission, including the discussion described under the headings "Risks Relating to our Business and Industry," "Manufacturing Risks," "International Risks," and "Risks Related to Securities Markets and Ownership of Our Securities" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein. Entegris, Inc.



                            Entegris, Inc.
           Condensed Consolidated Statements of Operations
                (in thousands, except per share data)
                            (Unaudited)


                          Three months ended       Nine months ended
                          -------------------     --------------------
                         Sept. 29,   Sept. 30,   Sept. 29,   Sept. 30,
                            2007       2006        2007        2006
                          --------------------------------------------
 Net sales                $151,811   $169,880     $464,890   $ 505,582
 Cost of sales(a)           86,301     94,042      265,378     269,935
                          -------------------     --------------------
   Gross profit             65,510     75,838      199,512     235,647
 Selling, general and
  administrative
  expenses(b)               43,983     43,284      134,244     146,534
 Engineering, research
  and development
  expenses                   9,409      9,651       29,622      28,670
                          -------------------     --------------------
   Operating income         12,118     22,903       35,646      60,443
 Interest income, net         (140)    (2,846)      (5,516)     (6,765)
 Other loss (income),
  net(c)                        53       (702)      (5,997)     (2,296)
                          -------------------     --------------------
   Income before income
    taxes                   12,205     26,451       47,159      69,504
 Income tax expense          3,156      8,526       11,970      22,986
 Equity in net loss
  (earnings) of
  affiliates                    96        (93)          (8)       (288)
                          -------------------     --------------------
   Income from continuing
    operations               8,953     18,018       35,197      46,806
 (Loss) income from
  discontinued operations,
  net of taxes                (536)      (197)      (1,620)        561
                          --------------------------------------------
   Net income             $  8,417   $ 17,821     $ 33,577   $  47,367
                          ============================================

 Basic income (loss)
  per common share:
   Continuing operations  $   0.08   $   0.13     $   0.28   $    0.34
   Discontinued
    operations            $   0.00   $   0.00     $  (0.01)  $    0.00
   Net income             $   0.07   $   0.13     $   0.27   $    0.35
 Diluted income (loss)
  per common share:
   Continuing operations  $   0.08   $   0.13     $   0.28   $    0.33
   Discontinued
    operations            $   0.00   $   0.00     $  (0.01)  $    0.00
   Net income             $   0.07   $   0.13     $   0.26   $    0.34

 Weighted average
  shares outstanding:
   Basic                   114,333    135,538      125,251     136,624
   Diluted                 116,415    138,921      127,980     139,981
 
 a) Cost of sales for the three months and nine months ended
    September 29, 2007 include $0.8 million and $1.2 million,
    respectively, of merger-related and other restructuring
    charges, integration expenses, and integration-related
    stock-based compensation expense.  Cost of sales for the
    three months and nine months ended September 30, 2006 include
    $52 thousand and $2.2 million of merger-related and other
    restructuring charges, integration expenses, and
    integration-related stock-based compensation expense.

 b) Selling, general and administrative expenses for the three
    months and nine months ended September 29, 2007 include
    $4.0 million and $14.7 million, respectively, of merger-
    related and other restructuring charges, integration expense,
    integration-related stock-based compensation expense, and
    merger-related amortization of intangibles.  Selling, general
    and administrative expenses for the three months and nine
    months ended September 30, 2006 include $5.7 million and
    $25.8 million, respectively, of merger-related and other
    restructuring charges, integration expense, integration-
    related stock-based compensation expense, and merger-
    related amortization of intangibles.

 c) Other income, net for the nine months ended September 29, 2007
    includes a $6.1 million gain from the sale of an equity
    investment.


                            Entegris, Inc.
        GAAP to Non-GAAP Reconciliation of Statement of Operations
              For the Three Months Ended September 29, 2007
                   (in thousands, except per share data)
                             (Unaudited)


                             U.S. GAAP        Adjustments     Non-GAAP
                              ----------------------------------------
 Net sales                    $151,811         $     --       $151,811
 Cost of sales(a)               86,301              765         85,536
                              ----------------------------------------
   Gross profit                 65,510             (765)        66,275
 Selling, general and 
  administrative 
  expenses(b)                   43,983            3,990         39,993
 Engineering, research
  and development
  expenses                       9,409               --          9,409
                              ----------------------------------------
   Operating income             12,118           (4,755)        16,873
 Interest income, net             (140)              --           (140)
 Other loss, net                    53               --             53
                              ----------------------------------------
   Income before income
    taxes                       12,205           (4,755)        16,960
 Income tax expense              3,156           (1,788)         4,944
 Equity in net loss of
  affiliates                        96               --             96
                              ----------------------------------------
   Income from continuing
    operations                   8,953           (2,967)        11,920
 Loss from discontinued
  operations, net of
  taxes                           (536)              --           (536)
                              ----------------------------------------
   Net income                 $  8,417         $ (2,967)      $ 11,384
                              ========================================

 Basic income (loss)
  per common share:
   Continuing operations      $   0.08         $  (0.03)      $   0.10
   Discontinued
    operations                $   0.00               --       $   0.00
   Net income per common
    share                     $   0.07         $  (0.03)      $   0.10
 Diluted income (loss)
  per common share:
   Continuing operations      $   0.08         $  (0.03)      $   0.10
   Discontinued operations    $   0.00               --       $   0.00
   Net income per common
    share                     $   0.07         $  (0.03)      $   0.10

 Weighted average shares
  outstanding:
   Basic                       114,333          114,333        114,333
   Diluted                     116,415          116,415        116,415

 a) Cost of sales is adjusted for $0.8 million of merger-related
    and other restructuring charges, primarily the write-up of
    Surmet inventory to market, and integration-related stock-
    based compensation expense.

 b) Selling, general and administrative expenses are adjusted
    for $(0.1) million of integration expense and other
    restructuring, $0.4 million of integration-related stock-
    based compensation expense, and $3.7 million of merger-related
    amortization of intangibles.


                            Entegris, Inc.
        GAAP to Non-GAAP Reconciliation of Statement of Operations
              For the Three Months Ended September 30, 2006
                  (in thousands, except per share data)
                             (Unaudited)


                             U.S. GAAP      Adjustments     Non-GAAP
                              ----------------------------------------
 Net sales                    $169,880         $     --       $169,880
 Cost of sales(a)               94,042               52         93,990
                              ----------------------------------------
   Gross profit                 75,838              (52)        75,890
 Selling, general and
  administrative
  expenses(b)                   43,284            5,720         37,564
 Engineering, research
  and development
  expenses                       9,651               --          9,651
                              ----------------------------------------
   Operating income             22,903           (5,772)        28,675
 Interest income, net           (2,846)              --         (2,846)
 Other income, net                (702)              --           (702)
                              ----------------------------------------
   Income before income
    taxes                       26,451           (5,772)        32,223
 Income tax expense              8,526            (1794)        10,320
 Equity in net earnings
  of affiliates                    (93)              --            (93)
                              ----------------------------------------
   Income from continuing
    operations                  18,018           (3,978)        21,996
 Loss from discontinued
  operations, net of
  taxes                           (197)              --           (197)
                              ----------------------------------------
   Net income                 $ 17,821         $ (3,978)      $ 21,799
                              ========================================

 Basic income per
  common share:
   Continuing operations      $   0.13         $  (0.03)      $   0.16
   Discontinued operations    $   0.00               --       $   0.00
   Net income per common
     share                    $   0.13         $  (0.03)      $   0.16
 Diluted income per
  common share:
   Continuing operations      $   0.13         $  (0.03)      $   0.16
   Discontinued operations    $   0.00               --       $   0.00
   Net income per common
    share                     $   0.13         $  (0.03)      $   0.16

 Weighted average
  shares outstanding:
   Basic                       135,538          135,538        135,538
   Diluted                     138,921          138,921        138,921

  a) Cost of sales includes $52 thousand of merger-related and
     other restructuring charges, integration expenses, and
     integration-related stock-based compensation expense.

  b) Selling, general and administrative expenses include $5.7
     million of merger-related and other restructuring charges,
     integration expense, integration-related stock-based
     compensation expense, and merger-related amortization of
     intangibles.


                            Entegris, Inc.
       GAAP to Non-GAAP Reconciliation of Statement of Operations
              For the Nine Months Ended September 29, 2007
                  (in thousands, except per share data)
                              (Unaudited)


                             U.S. GAAP       Adjustments      Non-GAAP
                              ----------------------------------------
 Net sales                    $464,890         $     --       $464,890
 Cost of sales(a)              265,378            1,192        264,186
                              ----------------------------------------
   Gross profit                199,512           (1,192)       200,704
 Selling, general and
  administrative
  expenses(b)                  134,244           14,650        119,594
 Engineering, research
  and development
  expenses                      29,622               --         29,622
                              ----------------------------------------
   Operating income             35,646          (15,842)        51,488
 Interest income, net           (5,516)              --         (5,516)
 Other (income) loss,
  net(c)                        (5,997)          (6,068)            71
                              ----------------------------------------
   Income before income
    taxes                       47,159           (9,774)        56,933
 Income tax expense             11,970           (3,054)        15,024
 Equity in net earnings
  of affiliates                     (8)              --             (8)
                              ----------------------------------------
   Income from continuing
    operations                  35,197           (6,720)        41,917
 Loss from discontinued
  operations, net of
  taxes                         (1,620)              --         (1,620)
                              ----------------------------------------
   Net income                 $ 33,577         $ (6,720)      $ 40,297
                              ========================================

 Basic income (loss)
  per common share:
   Continuing operations      $   0.28         $  (0.05)      $   0.33
   Discontinued operations    $  (0.01)              --       $  (0.01)
   Net income                 $   0.27         $  (0.05)      $   0.32
 Diluted income (loss)
  per common share:
   Continuing operations      $   0.28         $  (0.05)      $   0.33
   Discontinued operations    $  (0.01)              --       $  (0.01)
   Net income                 $   0.26         $  (0.05)      $   0.31

 Weighted average
  shares outstanding:
   Basic                       125,251          125,251        125,251
   Diluted                     127,980          127,980        127,980

 a) Cost of sales includes $1.2 million of merger-related and
    other restructuring charges, integration expenses, and
    integration-related stock-based compensation expense.

 b) Selling, general and administrative expenses include $14.7
    million of merger-related and other restructuring charges,
    integration expense, integration-related stock-based
    compensation expense, and merger-related amortization of
    intangibles.

 c) Other income, net includes a $6.1 million gain from the sale
    of a minority investment interest.


                               Entegris, Inc.
        GAAP to Non-GAAP Reconciliation of Statement of Operations
               For the Nine Months Ended September 30, 2006
                     (in thousands, except per share data)
                                (Unaudited)

                             U.S. GAAP       Adjustments      Non-GAAP
                              ----------------------------------------
 Net sales                    $505,582         $     --       $505,582
 Cost of sales(a)              269,935            2,163        267,772
                              ----------------------------------------
   Gross profit                235,647           (2,163)       237,810
 Selling, general
  and administrative
  expenses(b)                  146,534           25,825        120,709
 Engineering,
  research and
  development expenses          28,670               --         28,670
                              ----------------------------------------
   Operating income             60,443          (27,988)        88,431
 Interest income, net           (6,765)              --         (6,765)
 Other income, net              (2,296)              --         (2,296)
                              ----------------------------------------
   Income before income
    taxes                       69,504          (27,988)        97,492
 Income tax expense             22,986           (9,238)        32,224
 Equity in net
  earnings of
  affiliates                      (288)              --           (288)
                              ----------------------------------------
   Income from
    continuing operations       46,806          (18,750)        65,556
 Income from
  discontinued
  operations, net of
  taxes                            561               --            561
                              ----------------------------------------
   Net income                 $ 47,367         $(18,750)      $ 66,117
                              ========================================

 Basic income per
  common share:
   Continuing operations      $   0.34         $  (0.14)      $   0.48
   Discontinued operations    $   0.00               --       $   0.00
   Net income                 $   0.35         $  (0.14)      $   0.48
 Diluted income per
  common share:
   Continuing operations      $   0.33         $  (0.13)      $   0.47
   Discontinued operations    $   0.00               --       $   0.00
   Net income                 $   0.34         $  (0.13)      $   0.47

 Weighted average
  shares outstanding:
   Basic                       136,624          136,624        136,624
   Diluted                     139,981          139,981        139,981

  a) Cost of sales includes $2.2 million of merger-related and
     other restructuring charges, integration expenses, and
     integration-related stock-based compensation expense.

  b) Selling, general and administrative expenses include $25.8
     million of merger-related and other restructuring charges,
     integration expense, integration-related stock-based
     compensation expense, and merger-related amortization of
     intangibles.


                               Entegris, Inc.
                  Condensed Consolidated Balance Sheets
                               (in thousands)
                                 (Unaudited)

                                       Sept. 29,              Dec. 31,
                                         2007                   2006
                                     ---------------------------------

 ASSETS 
 Cash, cash equivalents and 
  short-term  investments
                                       $125,873              $274,974
 Accounts receivable                    103,794               127,396
 Inventories                             81,148                93,426
 Deferred tax assets                     44,435                45,149
 Other current assets 
  and assets held for sale               14,552                15,376
                                     ---------------------------------
       Total current assets             369,802               556,321

 Property, plant and 
  equipment, net                        125,277               120,987

 Intangible assets                      488,788               463,408
 Deferred tax asset - 
  non-current                             7,105                 5,157
 Other assets                            21,124                11,745
                                     ---------------------------------
       Total assets                  $1,012,096            $1,157,618
                                     =================================


 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current maturities of 
  long-term debt & short-term 
  borrowings                            $25,409                  $401
 Accounts payable                        22,027                24,952
 Accrued liabilities                     50,210                56,479
 Income tax payable                       2,769                10,025
 Liabilities of discontinued 
  operations                              4,446                   842
                                     ---------------------------------
       Total current 
        liabilities                     104,861                92,699

 Long-term debt, less
  current maturities                     12,672                 2,995
 Other liabilities                       47,173                45,944
 Shareholders' equity                   847,390             1,015,980
                                     ---------------------------------
       Total liabilities and 
         shareholders' equity        $1,012,096            $1,157,618
                                     =================================


        

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