Exhibit 99.1
For Release at 7:00 a.m. (EST) on October, 28, 2004
Mykrolis Corporation Reports Third Quarter 2004 Financial Results
BILLERICA, Mass., October 28, 2004 – Mykrolis Corporation (NYSE: MYK), a leading supplier of components and subsystems to the semiconductor industry, announced today third quarter revenues of $71.4 million, 60 percent higher than the comparable quarter a year ago and 3 percent lower than $73.3 million in the second quarter of 2004.
Net income per diluted share for the quarter was $0.17, which included a nonrecurring net benefit of $1.0 million. The Company reported a net loss per diluted share of $(0.02) in the third quarter a year ago, and net income per diluted share of $0.18 in the second quarter of 2004.
Operating income of $10.0 million, or 14 percent of sales, declined from $10.4 million in the second quarter.
For the first nine months of 2004, revenues of $215.3 million increased 69 percent from 127.7 million for the same period a year ago. Net income per diluted share for the first nine months of 2004 was $0.51, compared to a net loss per diluted share of $(0.30) for the same period a year ago.
Third quarter sales of consumable filtration and purification products were $49.4 million, or 69 percent of total sales. Sales of equipment products were $21.9 million, or 31 percent of total sales.
C. William Zadel, Chairman and Chief Executive Officer, commented on the third quarter results: “We achieved steady performance across many of our product areas and markets despite a softening in business conditions particularly for capital equipment. Sales for the consumable portion of our product lines were generally stable, reflecting continued high utilization rates at our fab and foundry customers, particularly in Asia.
“Lower sales in North America reflected a softening in orders from semiconductor OEM tool manufacturers which are the largest purchasers of our gas delivery equipment products.
“During the quarter we completed the acquisition of Bentec Scientific, a privately held manufacturer of roller brushes used to clean wafers in the post-CMP (chemical mechanical planarization) process. We believe CMP will be one of the fastest growing segments in the industry and this acquisition augments our line of consumable products,” Zadel said.
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Management Outlook
The Company anticipates fourth quarter revenue will be in the range of $65 to $72 million and net income per diluted share will be in the range of $0.07 to $0.15.
Quarterly Earnings Call
Mykrolis will hold a conference call to discuss its results for the third quarter on Thursday, October 28, 2004 at 11:00 a.m. EDT (8:00 a.m. PDT). The conference call dial-in number is 800-289-0569; outside the U.S., the number is 913-981-5542. The conference call will also be webcast on the Mykrolis web site atwww.mykrolis.com. A replay of the call will be available upon demand through November 17, 2004 by calling 719-457-0820 with passcode of 829942.
Revenue by Geographic Region (in millions of US dollars):
| | | | | | | | | |
| | | Q3 2004
| | Q3 2003
| | % Growth
| |
North America | | $ | 18.8 | | $ | 11.7 | | 61 | % |
Japan | | | 26.5 | | | 15.8 | | 68 | % |
Asia | | | 19.6 | | | 12.1 | | 62 | % |
Europe | | | 6.5 | | | 4.9 | | 33 | % |
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Total | | $ | 71.4 | | $ | 44.5 | | 60 | % |
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| | | Q3 2004
| | Q2 2004
| | % Growth
| |
North America | | $ | 18.8 | | $ | 20.4 | | -8 | % |
Japan | | | 26.5 | | | 26.9 | | -1 | % |
Asia | | | 19.6 | | | 19.5 | | 1 | % |
Europe | | | 6.5 | | | 6.5 | | 0 | % |
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Total | | $ | 71.4 | | $ | 73.3 | | -3 | % |
| | | |
| | | 9 months 2004
| | 9 months 2003
| | % Growth
| |
North America | | $ | 60.1 | | $ | 34.0 | | 77 | % |
Japan | | | 80.2 | | | 45.3 | | 77 | % |
Asia | | | 55.5 | | | 34.6 | | 60 | % |
Europe | | | 19.5 | | | 13.8 | | 41 | % |
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Total | | $ | 215.3 | | $ | 127.7 | | 69 | % |
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.
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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 and/or shorter 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 as well as those risks identified in our other reports and filings with the Securities and Exchange Commission.
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Mykrolis Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
| | | Nine Months Ended
| |
| | | 10/2/2004
| | | 9/27/2003
| | | 10/2/2004
| | | 9/27/2003
| |
Net sales | | $ | 71,403 | | | $ | 44,529 | | | $ | 215,253 | | | $ | 127,715 | |
Cost of sales | | | 37,589 | | | | 24,383 | | | | 111,475 | | | | 72,431 | |
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Gross profit | | | 33,814 | | | | 20,146 | | | | 103,778 | | | | 55,284 | |
% of sales | | | 47.4 | % | | | 45.2 | % | | | 48.2 | % | | | 43.3 | % |
| | | | |
Research & development expenses | | | 6,553 | | | | 4,362 | | | | 19,407 | | | | 13,519 | |
Selling, general & admin. expenses | | | 17,211 | | | | 15,712 | | | | 55,935 | | | | 48,251 | |
Restructuring and other charges | | | — | | | | 532 | | | | (88 | ) | | | 2,289 | |
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Operating income (loss) | | | 10,050 | | | | (460 | ) | | | 28,524 | | | | (8,775 | ) |
% of sales | | | 14.1 | % | | | (1.0 | )% | | | 13.3 | % | | | (6.9 | )% |
Other income (expense), net | | | 312 | | | | (184 | ) | | | 1,191 | | | | 1,650 | |
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Income (loss) before income taxes | | | 10,362 | | | | (644 | ) | | | 29,715 | | | | (7.125 | ) |
Income tax expense | | | 3,065 | | | | 224 | | | | 7,710 | | | | 4,635 | |
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Net income (loss) | | $ | 7,297 | | | $ | (868 | ) | | $ | 22,005 | | | $ | (11,760 | ) |
% of sales | | | 10.2 | % | | | (1.9 | )% | | | 10.2 | % | | | (9.2 | )% |
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Basic income (loss) per share | | $ | 0.18 | | | $ | (0.02 | ) | | $ | 0.53 | | | $ | (0.30 | ) |
Basic weighted average shares outstanding | | | 41,696 | | | | 39,874 | | | | 41,368 | | | | 39,799 | |
| | | | |
Diluted income (loss) per share | | $ | 0.17 | | | $ | (0.02 | ) | | $ | 0.51 | | | $ | (0.30 | ) |
Diluted weighted average shares outstanding | | | 42,698 | | | | 39,874 | | | | 43,278 | | | | 39,799 | |
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Mykrolis Corporation
Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | |
| | | (unaudited) Oct. 2, 2004
| | December 31, 2003
|
| | |
Assets | | | | | | |
Cash and cash equivalents | | $ | 91,691 | | $ | 70,503 |
Marketable securities | | | 19,265 | | | — |
Accounts receivable, net | | | 58,002 | | | 46,698 |
Inventories | | | 42,568 | | | 38,771 |
Other current assets | | | 4,235 | | | 6,390 |
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Total current assets | | | 215,761 | | | 162,362 |
Marketable securities | | | — | | | 14,266 |
Property, plant and equipment, net | | | 64,930 | | | 71,033 |
Goodwill and intangible assets, net | | | 33,566 | | | 24,939 |
Other assets | | | 11,070 | | | 11,155 |
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Total assets | | $ | 325,327 | | $ | 283,755 |
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Liabilities and shareholders’ equity | | | | | | |
Accounts payable | | $ | 14,387 | | $ | 12,613 |
Accrued expenses and other current liabilities | | | 46,280 | | | 36,086 |
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Total current liabilities | | | 60,667 | | | 48,699 |
Other liabilities | | | 11,574 | | | 12,028 |
Shareholders’ equity | | | 253,086 | | | 223,028 |
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Total liabilities and shareholders’ equity | | $ | 325,327 | | $ | 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
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