Exhibit 99.1
For Release at 7:00 a.m. (EDT) on July, 29, 2004
Mykrolis Corporation Reports Second Quarter 2004 Financial Results
Sales of $73 million rise 4%; Operating income increases 28%
BILLERICA, Mass., July 29, 2004 – Mykrolis Corporation (NYSE: MYK), a leading supplier of components and subsystems to the semiconductor industry, announced today second quarter revenues of $73.3 million, a 4 percent increase from $70.5 million in the first quarter of 2004 and 72 percent higher than the comparable quarter a year ago.
The net income per diluted share for the quarter was $0.18, compared to $0.16 in the first quarter and a net loss per diluted share of $(0.14) in the second quarter a year ago.
Operating income was $10.4 million, or 14 percent of sales. Gross margin for the second quarter rose to 48.9 percent from 48.3 percent in the first quarter.
For the first six months of 2004, revenues of $143.9 million increased 73 percent from $83.2 million for the same period a year ago. Net income per diluted share for the first half of 2004 was $0.34, compared to a net loss per diluted share of $(0.27) a year ago.
C. William Zadel, Chairman and Chief Executive Officer, commented on the second quarter results: “We achieved a solid quarter. An increase in our gross margin combined with lower operating expenses contributed to operating income growth of 28 percent from the first quarter. Our sales mix of 70 percent consumable products versus 30 percent equipment reflected continued high capacity utilization and wafer start growth in the industry. Sales to Asia grew 19 percent to an all-time high, reflecting strong demand from semiconductor foundry customers and makers of flat panel displays.
“At Semicon West we introduced a number of consumable and equipment products for filtration, purification, and fluid delivery applications for leading edge processes and 300mm tools. We believe these will extend our unique position in the market as the leader in our industry for controlling and reducing micro-contaminants in the semiconductor fabrication process,” Zadel said.
Management Outlook
The company anticipates third quarter revenue will be in the range of $70 to $77 million and net income per diluted share will be in the range of $0.15 to $0.21.
Quarterly Earnings Call
Mykrolis will hold a conference call to discuss its results for the second quarter on Thursday, July 29, 2004 at 11:00 a.m. EDT (8:00 a.m. PDT). The conference call dial-in number is 1-800-915-4836; outside the U.S., the number is 973-317-5319. The conference call will also be webcast on the Mykrolis web site at www.mykrolis.com.
Revenue by Geographic Region (in millions of US dollars):
Q2 2004 | Q2 2003 | % Growth | |||||||
North America | $ | 20.4 | $ | 11.8 | 73 | % | |||
Japan | 26.9 | 14.6 | 84 | % | |||||
Asia | 19.5 | 11.8 | 65 | % | |||||
Europe | 6.5 | 4.5 | 44 | % | |||||
Total | $ | 73.3 | $ | 42.7 | 72 | % | |||
Q2 2004 | Q1 2004 | % Growth | |||||||
North America | $ | 20.4 | $ | 21.0 | -3 | % | |||
Japan | 26.9 | 26.7 | 1 | % | |||||
Asia | 19.5 | 16.4 | 19 | % | |||||
Europe | 6.5 | 6.4 | 2 | % | |||||
Total | $ | 73.3 | $ | 70.5 | 4 | % | |||
6 months 2004 | 6 months 2003 | % Growth | |||||||
North America | $ | 41.4 | $ | 22.4 | 85 | % | |||
Japan | 53.7 | 29.5 | 82 | % | |||||
Asia | 35.9 | 22.4 | 60 | % | |||||
Europe | 12.9 | 8.9 | 45 | % | |||||
Total | $ | 143.9 | $ | 83.2 | 73 | % |
About Mykrolis
Mykrolis Corporation, which reported sales of $186 million in fiscal 2003, 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 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 based in Billerica, Massachusetts. For more information, visitwww.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 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’s future operating results include, without limitation, the risk that a sustained industry recovery may be weaker than past recoveries, our inability to meet increasing demands for our products from our key customers; increased competition in our industry resulting in downward pressure on prices and reduced margins, as well as those risks described under the headings “Risks Relating to our Business and Industry”, “Risks Related to the Securities Markets and Ownership of Our Securities,” and “Risks Related to our Separation from Millipore” in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2003.
Mykrolis Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
7/3/2004 | 6/28/2003 | 7/3/2004 | 6/28/2003 | |||||||||||||
Net sales | $ | 73,335 | $ | 42,678 | $ | 143,850 | $ | 83,186 | ||||||||
Cost of sales | 37,440 | 24,072 | 73,886 | 48,048 | ||||||||||||
Gross profit | 35,895 | 18,606 | 69,964 | 35,138 | ||||||||||||
% of sales | 48.9 | % | 43.6 | % | 48.6 | % | 42.2 | % | ||||||||
Research & development expenses | 6,556 | 4,673 | 12,853 | 9,157 | ||||||||||||
Selling, general & admin. expenses | 19,056 | 16,187 | 38,725 | 32,539 | ||||||||||||
Restructuring and other charges | (88 | ) | 1,757 | (88 | ) | 1,757 | ||||||||||
Operating income (loss) | 10,371 | (4,011 | ) | 18,474 | (8,315 | ) | ||||||||||
% of sales | 14.1 | % | (9.4 | )% | 12.8 | % | (10.0 | )% | ||||||||
Other income, net | 405 | 1,174 | 879 | 1,834 | ||||||||||||
Income (loss) before income taxes | 10,776 | (2,837 | ) | 19,353 | (6,481 | ) | ||||||||||
Income tax expense | 3,055 | 2,698 | 4,645 | 4,411 | ||||||||||||
Net income (loss) | $ | 7,721 | $ | (5,535 | ) | $ | 14,708 | $ | (10,892 | ) | ||||||
% of sales | 10.5 | % | (13.0 | )% | 10.2 | % | (13.1 | )% | ||||||||
Basic income (loss) per share | $ | 0.19 | $ | (0.14 | ) | $ | 0.36 | $ | (0.27 | ) | ||||||
Basic weighted average shares outstanding | 41,420 | 39,795 | 41,207 | 39,761 | ||||||||||||
Diluted income (loss) per share | $ | 0.18 | $ | (0.14 | ) | $ | 0.34 | $ | (0.27 | ) | ||||||
Diluted weighted average shares outstanding | 43,599 | 39,795 | 43,509 | 39,761 |
Mykrolis Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited) | ||||||
July 3, 2004 | December 31, 2003 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 82,748 | $ | 70,503 | ||
Marketable securities | 14,425 | — | ||||
Accounts receivable, net | 58,706 | 46,698 | ||||
Inventories | 43,614 | 38,771 | ||||
Other current assets | 8,031 | 6,390 | ||||
Total current assets | 207,524 | 162,362 | ||||
Marketable securities | 4,964 | 14,266 | ||||
Property, plant and equipment, net | 67,223 | 71,033 | ||||
Goodwill and intangible assets, net | 24,037 | 24,939 | ||||
Other assets | 11,122 | 11,155 | ||||
Total assets | $ | 314,870 | $ | 283,755 | ||
Liabilities and shareholders’ equity | ||||||
Accounts payable | $ | 17,086 | $ | 12,613 | ||
Accrued expenses and other current liabilities | 37,971 | 36,086 | ||||
Total current liabilities | 55,057 | 48,699 | ||||
Other liabilities | 13,144 | 12,028 | ||||
Shareholders’ equity | 246,669 | 223,028 | ||||
Total liabilities and shareholders’ equity | $ | 314,870 | $ | 283,755 | ||
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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