Exhibit 99.1
[MYKROLIS LOGO APPEARS HERE]
Mykrolis Corporation Reports Profit for Fourth Quarter 2003
Sales increase 31 percent sequentially to $58 million; EPS of $0.09
BILLERICA, Mass., January 29, 2004 – Mykrolis Corporation (NYSE: MYK), a leading supplier of components and systems to the semiconductor industry, announced today fourth quarter revenues of $58.2 million, a 31 percent increase from $44.5 million in the third quarter of 2003 and a 25 percent increase from the comparable quarter a year ago.
The net income per diluted share for the quarter of $0.09 compared to a net loss per diluted share of $(0.02) in the third quarter and a net loss per diluted share of $(0.21) in the fourth quarter a year ago.
For fiscal 2003, revenues were $185.9 million, up 4 percent from $178.4 million in fiscal 2002. Net loss per diluted share was $(0.20), which compared to a net loss per diluted share of $(0.80) for a year ago.
C. William Zadel, Chairman and Chief Executive Officer, commented on the fourth quarter results: “The quarter marked a major milestone for Mykrolis, as we achieved profitability for the first time as an independent company. Our results reveal the operating leverage we believe exists in our company as a result of the steps we have taken to streamline the organization and to reduce costs.”
Mr. Zadel continued, “An acceleration of demand through the end of the year, particularly in Japan and Asia, contributed to robust fourth quarter sales that were above our revised guidance. Equipment sales increased 42 percent, driven by higher demand from our OEM customers in Japan as well as in North America. Sales of consumables grew 26 percent from the third quarter, as key Asian chip makers expanded the scope of their annual preventative maintenance programs to change-out filters in anticipation of continued high levels of fab production output.”
Management Outlook
“With the recovery in the semiconductor equipment industry clearly underway, we believe we are prepared to meet the demands of our customers. Reflecting some seasonal impact as a result of our customers’ preventative maintenance programs in the fourth quarter, we anticipate first quarter sales in the range of $62 to $67 million and net income per diluted share in the range of $0.09 to $0.14,” Zadel said.
Revenue by Geographic Region ($’s millions):
Q4 2003 | Q4 2002 | % Growth | |||||||
North America | $ | 15.2 | $ | 13.2 | 15.2 | % | |||
Japan | 22.2 | 17.3 | 28.3 | % | |||||
Asia | 15.8 | 11.3 | 39.8 | % | |||||
Europe | 5.0 | 4.7 | 6.4 | % | |||||
Total | $ | 58.2 | $ | 46.5 | 25.2 | % | |||
Q4 2003 | Q3 2003 | % Growth | |||||||
North America | $ | 15.2 | $ | 11.7 | 29.9 | % | |||
Japan | 22.2 | 15.8 | 40.5 | % | |||||
Asia | 15.8 | 12.1 | 30.6 | % | |||||
Europe | 5.0 | 4.9 | 2.0 | % | |||||
Total | $ | 58.2 | $ | 44.5 | 30.8 | % | |||
FY 2003 | FY 2002 | % Growth | |||||||
North America | $ | 49.3 | $ | 55.3 | -10.8 | % | |||
Japan | 67.5 | 63.3 | 6.6 | % | |||||
Asia | 50.4 | 41.8 | 20.6 | % | |||||
Europe | 18.7 | 18.0 | 3.9 | % | |||||
Total | $ | 185.9 | $ | 178.4 | 4.2 | % |
Quarterly Earnings Call
Mykrolis will hold a conference call to discuss its results for the fourth quarter on Thursday, January 29, 2003 at 10:00 a.m. EST (7:00 a.m. PST). The conference call dial-in number is 800-915-4836; outside the U.S., the number is 973-317-5319. A replay of the call can be accessed at 973-709-2089 (passcode: 324420). The conference call will also be webcast on the investor relations portion of the Mykrolis web site at www.mykrolis.com.
About Mykrolis
Mykrolis Corporation, based in Billerica, Massachusetts, is a worldwide developer, manufacturer and supplier of liquid and gas delivery systems, components and consumables used to precisely measure, deliver, control and purify the process liquids, gases and chemicals, as well as the deionized water, photoresists and vacuum systems utilized in the semiconductor manufacturing process. In addition, the Company’s products are used to manufacture a range of other products, such as flat panel displays, high purity chemicals, photoresists, solar cells, gas lasers, optical disks and fiber optic cables. Mykrolis is formerly Millipore Microelectronics, Inc. For more information, visit www.mykrolis.com.
Mykrolis Forward looking Statement Disclaimer
The matters discussed herein, as well as in future oral and written statements by management of Mykrolis Corporation that are forward-looking statements, are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. When used herein or in such statements, the words “anticipate”, “believe”, “estimate”, “expect”, “hope”, “may”, “will”, “should” or the negative
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thereof and similar expressions as they relate to Mykrolis, its business or its management are intended to identify such forward-looking statements. Potential risks and uncertainties that could affect Mykrolis’ future operating results include, without limitation, the risk that a sustained industry recovery may be delayed, may not materialize at all or may be weaker than past recoveries, the risk that the transfer of manufacturing to our new facility may disrupt our ability to fill customer orders, as well as those risks described under the headings “Risks Relating to our Business and Industry”, “Risks Related to Securities Markets and Ownership of Our Common Stock,” and “Risks Related to our Separation from Millipore” in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Report on Form 10-Q for the fiscal period ended September 27, 2003.
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Mykrolis Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2003 | 12/31/2002 | 12/31/2003 | 12/31/2002 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Net sales | $ | 58,183 | $ | 46,464 | $ | 185,898 | $ | 178,449 | ||||||||
Cost of sales | 32,838 | 32,075 | 105,269 | 118,783 | ||||||||||||
Gross profit | 25,345 | 14,389 | 80,629 | 59,666 | ||||||||||||
Selling, general & admin. expenses | 16,544 | 14,342 | 64,795 | 67,809 | ||||||||||||
Research & development expenses | 5,590 | 5,032 | 19,110 | 19,685 | ||||||||||||
Restructuring and other charges | (178 | ) | 5,182 | 2,111 | 5,182 | |||||||||||
Operating income (loss) | 3,389 | (10,167 | ) | (5,387 | ) | (33,010 | ) | |||||||||
Other income, net | 610 | 1,496 | 2,260 | 3,367 | ||||||||||||
Income (loss) before income taxes | 3,999 | (8,671 | ) | (3,127 | ) | (29,643 | ) | |||||||||
Income tax expense (benefit) | 342 | (452 | ) | 4,977 | 2,118 | |||||||||||
Net income (loss) | $ | 3,657 | $ | (8,219 | ) | $ | (8,104 | ) | $ | (31,761 | ) | |||||
Basic net income (loss) per share | $ | 0.09 | $ | (0.21 | ) | $ | (0.20 | ) | $ | (0.80 | ) | |||||
Basic weighted average shares outstanding | 40,336 | 39,722 | 39,939 | 39,628 | ||||||||||||
Diluted net income (loss) per share | $ | 0.09 | $ | (0.21 | ) | $ | (0.20 | ) | $ | (0.80 | ) | |||||
Diluted weighted average shares outstanding | 42,757 | 39,722 | 39,939 | 39,628 | ||||||||||||
Reconciliation of net income (loss) to pro forma net income (loss): | ||||||||||||||||
Add: Restructuring and other charges | $ | (178 | ) | $ | 5,182 | $ | 2,111 | $ | 5,182 | |||||||
Pro forma net income (loss) | $ | 3,479 | $ | (3,037 | ) | $ | (5,993 | ) | $ | (26,579 | ) | |||||
Pro forma basic net income (loss) per share | $ | 0.09 | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.67 | ) | |||||
Pro forma diluted net income (loss) per share | $ | 0.08 | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.67 | ) |
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Mykrolis Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited) December 31, 2003 | December 31, 2002 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 70,503 | $ | 74,085 | ||
Accounts receivable, net | 46,698 | 39,971 | ||||
Inventories | 38,771 | 41,821 | ||||
Other current assets | 10,986 | 4,946 | ||||
Total current assets | 166,958 | 160,823 | ||||
Marketable securities | 14,266 | — | ||||
Property, plant and equipment, net | 71,033 | 74,833 | ||||
Goodwill and intangible assets, net | 24,939 | 19,403 | ||||
Other assets | 11,155 | 12,130 | ||||
Total assets | $ | 288,351 | $ | 267,189 | ||
Liabilities and shareholders’ equity | ||||||
Accounts payable | $ | 12,613 | $ | 10,288 | ||
Accrued expenses and other current liabilities | 40,683 | 34,250 | ||||
Total current liabilities | 53,296 | 44,538 | ||||
Other liabilities | 12,027 | 10,007 | ||||
Shareholders’ equity | 223,028 | 212,644 | ||||
Total liabilities and shareholders’ equity | $ | 288,351 | $ | 267,189 | ||
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Contacts:
Bertrand Loy, Chief Financial Officer
Steve Cantor, Director of Investor Relations and Corporate Communications
Tel#: 978-436-6500
Email: investor_relations@mykrolis.com
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