Exhibit 99.1
Mykrolis Corporation Reports Revenues of $77.4 Million and EPS of $0.16 for Second Quarter
Shareholders Overwhelmingly Approve Merger with Entegris
BILLERICA, Mass., August 3, 2005 – Mykrolis Corporation (NYSE: MYK) reported today that sales for the second quarter ended July 2, 2005 of $77.4 million increased 5 percent sequentially from $73.6 million in the first quarter of 2005 and were 6 percent above $73.3 million in the comparable quarter a year ago.
Net income per diluted share for the second quarter was $0.16, which compared to net income per diluted share of $0.13 in the first quarter and to net income per diluted share of $0.18 in the second quarter a year ago. The operating results for the second quarter included $1.4 million in restructuring and other charges and $1.5 million in merger-related expenses. The $1.4 million in restructuring and other charges resulted from a realignment of the gas delivery business and personnel reductions.
For the first six months of 2005, revenues of $151.0 million increased 5 percent from $143.9 million for the same period a year ago. Net income per diluted share for the first half of 2005 was $0.29, compared to a net income per diluted share of $0.34 a year ago. Net income in the first half of 2005 included the aforementioned restructuring and other charges and merger-related expenses.
Consumable filtration and purification products represented 72 percent and equipment represented 28 percent of second quarter revenues. The company’s mix of customers was 39 percent OEM and 61 percent semiconductor and microelectronics device makers in the second quarter.
Gideon Argov, Chief Executive Officer, commented: “We were very pleased with our second quarter results. Revenues were propelled by record-level demand by Asian semiconductor makers and foundries, as well as the strong performance of Extraction Systems, which we acquired in March, 2005. Current industry indicators are pointing to increasing utilization levels on the part of many of our customers in the second half of 2005, which should bode well for continuing unit-driven demand for our consumable filtration and purification products.”
Bertrand Loy, Chief Financial Officer, added: “We achieved a gross margin of 50.4 percent in the second quarter, a record high for Mykrolis since it became a public company in 2001. The increase in gross margin reflected favorable product and customer mix and the benefits of the manufacturing optimization initiatives that Mykrolis undertook during the past four years. Cash flow from operations of $8.2 million in part reflected the continued improvements in working capital management. With cash, cash equivalents, and marketable securities of $112 million and no debt at the end of the quarter our financial position is very strong.”
Shareholders Approve Merger
Separately, stockholders overwhelmingly approved the proposed merger between Mykrolis and Entegris at the company’s Special Meeting of Stockholders in Lieu of Annual Meeting held today. Of the outstanding Mykrolis shares voted on the merger proposal approximately 99 percent were cast in favor of the merger. At its special meeting of shareholders, Entegris shareholders also approved the merger. Pursuant to the terms of the merger agreement, each share of Mykrolis common stock will be exchanged for 1.39 shares of Entegris common stock. The merger is expected to close on August 6, 2005.
Revenue by Geographic Region ($’s millions):
Q2 2005 | Q2 2004 | % Growth | |||||||
North America | $ | 20.0 | $ | 20.4 | -2 | % | |||
Japan | 25.1 | 26.9 | -7 | % | |||||
Asia | 25.2 | 19.5 | 29 | % | |||||
Europe | 7.1 | 6.5 | 9 | % | |||||
Total | $ | 77.4 | $ | 73.3 | 6 | % | |||
Q2 2005 | Q1 2005 | % Growth | |||||||
North America | $ | 20.0 | $ | 18.0 | 11 | % | |||
Japan | 25.1 | 26.9 | -7 | % | |||||
Asia | 25.2 | 21.7 | 16 | % | |||||
Europe | 7.1 | 7.0 | 1 | % | |||||
Total | $ | 77.4 | $ | 73.6 | 5 | % | |||
6 Months 2005 | 6 Months 2004 | % Growth | |||||||
North America | $ | 38.1 | $ | 41.4 | -8 | % | |||
Japan | 52.0 | 53.7 | -3 | % | |||||
Asia | 46.9 | 35.9 | 31 | % | |||||
Europe | 14.0 | 12.9 | 9 | % | |||||
Total | $ | 151.0 | $ | 143.9 | 5 | % |
About Mykrolis
Mykrolis develops and manufactures fluid management and microcontamination control components and integrated systems for the semiconductor industry. The company’s product line comprises consumables and equipment that measure, control and purify liquids, gases and chemicals critical to the manufacturing process. In addition to the semiconductor industry, Mykrolis serves related markets including manufacturers of flat panel displays, bulk chemicals, and data storage devices. Mykrolis is based in Billerica, Massachusetts. 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 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/A for the fiscal year ended December 31, 2004.
Mykrolis Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
7/2/2005 | 7/3/2004 | 7/2/2005 | 7/3/2004 | |||||||||||||
Net sales | $ | 77,405 | $ | 73,335 | $ | 150,999 | $ | 143,850 | ||||||||
Cost of sales | 38,372 | 37,440 | 77,205 | 73,886 | ||||||||||||
Gross profit | 39,033 | 35,895 | 73,794 | 69,964 | ||||||||||||
% of sales | 50.4 | % | 48.9 | % | 48.9 | % | 48.6 | % | ||||||||
Research & development expenses | 7,425 | 6,556 | 14,491 | 12,853 | ||||||||||||
Selling, general & admin. expenses | 21,322 | 19,056 | 43,191 | 38,725 | ||||||||||||
Restructuring and other charges | 1,435 | (88 | ) | 1,435 | (88 | ) | ||||||||||
Operating income | 8,851 | 10,371 | 14,677 | 18,474 | ||||||||||||
% of sales | 11.4 | % | 14.1 | % | 9.7 | % | 12.8 | % | ||||||||
Other income, net | 634 | 405 | 2,085 | 879 | ||||||||||||
Income before income taxes | 9,485 | 10,776 | 16,762 | 19,353 | ||||||||||||
Income tax expense | 2,273 | 3,055 | 4,019 | 4,645 | ||||||||||||
Net income | $ | 7,212 | $ | 7,721 | $ | 12,743 | $ | 14,708 | ||||||||
% of sales | 9.3 | % | 10.5 | % | 8.4 | % | 10.2 | % | ||||||||
Basic income per share | $ | 0.17 | $ | 0.19 | $ | 0.30 | $ | 0.36 | ||||||||
Basic weighted average shares outstanding | 42,120 | 41,420 | 42,044 | 41,207 | ||||||||||||
Diluted income per share | $ | 0.16 | $ | 0.18 | $ | 0.29 | $ | 0.34 | ||||||||
Diluted weighted average shares outstanding | 43,845 | 43,599 | 43,752 | 43,509 |
Mykrolis Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited) July 2, 2005 | Dec. 31, 2004 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 83,564 | $ | 88,185 | ||
Marketable securities | 28,034 | 42,228 | ||||
Accounts receivable, net | 58,858 | 62,456 | ||||
Inventories | 43,399 | 41,835 | ||||
Other current assets | 5,751 | 4,351 | ||||
Total current assets | 219,606 | 239,055 | ||||
Property, plant and equipment, net | 63,355 | 65,564 | ||||
Goodwill and intangible assets, net | 51,529 | 33,015 | ||||
Other assets | 14,008 | 13,334 | ||||
Total assets | $ | 348,498 | $ | 350,968 | ||
Liabilities and shareholders’ equity | ||||||
Accounts payable | $ | 16,379 | $ | 14,887 | ||
Accrued expenses and other current liabilities | 38,776 | 52,902 | ||||
Total current liabilities | 55,155 | 67,789 | ||||
Other liabilities | 12,408 | 11,664 | ||||
Shareholders’ equity | 280,935 | 271,515 | ||||
Total liabilities and shareholders’ equity | $ | 348,498 | $ | 350,968 | ||
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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