DANBURY, Conn., Oct. 25, 2006 (PRIMEZONE) -- ATMI, Inc. (Nasdaq:ATMI), a supplier of specialty materials and high-purity materials handling and delivery solutions to the world's leading semiconductor manufacturers, today announced revenues of $82.1 million for the third quarter of 2006, an increase of 18% from $69.7 million in the third quarter of 2005. Net income for the quarter increased by 38% to $11.4 million from $8.3 million in the third quarter of 2005, and earnings per share increased to $0.31 per diluted share from $0.22 per diluted share in the third quarter of 2005. Earnings per share includes a one-time $0.04 per diluted share tax benefit in 2006 and equity-based compensation expense of $0.05 per diluted share in the third quarter of 2006, compared to $0.01 per diluted share in the third quarter of 2005, inclusive of the adoption of FAS 123(R) in 2006.
For the nine months ended September 30, 2006, revenues were $241.5 million, up 18% from $205.1 million in the comparable 2005 period. Net income increased 29% to $28.8 million from $22.3 million in the first nine months of 2005, and earnings per share increased to $0.77 per diluted share from $0.62 per diluted share for the first nine months of 2005. Earnings per share includes a one-time $0.04 per diluted share tax benefit in 2006 and equity-based compensation expense of $0.14 per diluted share in the first nine months of 2006, compared to $0.03 per diluted share in the first nine months of 2005, inclusive of the adoption of FAS 123(R) in 2006.
Doug Neugold, ATMI Chief Executive Officer, said, "We are pleased with our performance this quarter, as we achieved strong revenues during a period when flat panel display market demand temporarily softened and global wafer starts were relatively flat. We see continued strong demand for advanced generation materials, as well as materials that address some short term opportunities for the industry. In particular, we're experiencing great interest in our RegenSi(tm) wafer reclaim/cleaning material, and our in-situ cleans technology for the implant process. Our ViaForm Extreme(tm) copper material was named a best-known process at another of our key customers, and we are seeing escalating interest for our NOWTrak(r) Radio Frequency Identification-based materials tracking solution from several of the world's leading integrated circuit producers. These are excellent examples of the importance our customers place on working with us to improve their process efficiency."
Neugold continued, "We've had a fantastic response to our Asia Technology Development Center in Taiwan, which we officially opened in September during Semicon Taiwan. With Taiwan representing nearly 20% of ATMI's sales, and with more than 55% of our revenues coming from the Asia-Pacific region, the Center puts more materials expertise and support right where our customers have asked us to put it: locally."
Dan Sharkey, Chief Financial Officer said, "Revenues were up 18% year-over-year, reflecting the growth tied to our market position at the ramping 90 and 65 nanometer technology nodes. Gross margins were 51% on the strength of product mix momentum, compared with 50.4% a year ago. Operating margin has improved from 14.7% last year to 15.2% this year, even with the added effect of over $2 million of equity-based compensation in 2006 pursuant to FAS 123(R). During the quarter, we recognized a non-recurring $1.7 million tax benefit, due to a provision adjustment arising from a change in certain facts and circumstances, which had a $0.04 per diluted share effect. Our balance sheet reflects continued share repurchases during the quarter, consistent with our expanded program, which added an additional $150 million authorization in August to our previous $75 million share repurchase plan. Through the end of the third quarter, we have deployed a total of $80 million on our repurchase programs."
Sharkey continued, "Based on our assessment of the overall health of the industry and our market position in key sectors, despite what we believe will be a relatively flat wafer start environment, we are estimating fourth quarter revenues to range between $83 million and $87 million, with diluted earnings per share in the $0.28 to $0.32 range."
A conference call (dial-in: 888.822.9375) discussing the Company's recent financial results and business outlook will begin at 11:00 a.m. Eastern time, October 25, 2006. A replay of the call will be available for 48 hours (dial-in: 800.642.1687, PIN 8030128). An audio webcast of the conference call will be available for 30 days on atmi.com.
ATMI provides specialty materials and high-purity materials handling and delivery solutions to the worldwide semiconductor industry. For more information, please visit atmi.com.
Statements contained herein that relate to ATMI's future performance, including, without limitation, statements with respect to ATMI's anticipated results of operations or level of business for 2006 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only and are subject to certain risks, uncertainties, and assumptions, including, but not limited to, changes in semiconductor industry growth (including, without limitation, wafer starts) or ATMI's markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses; and other factors described in ATMI's filings with the Securities and Exchange Commission. Such risks and uncertainties may cause actual results to differ materially from those expressed in our forward-looking statements. ATMI undertakes no obligation to update any forward-looking statements.
ATMI, INC.
SUMMARY INCOME STATEMENTS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $ 82,124 $ 69,736 $241,544 $205,102
Cost of revenues 40,216 34,595 120,886 100,965
-------- -------- -------- --------
Gross profit 41,908 35,141 120,658 104,137
Operating expenses:
Research and development 6,673 5,745 19,030 16,740
Selling, general, and
administrative 22,775 19,152 67,882 57,092
-------- -------- -------- --------
Total operating expenses 29,448 24,897 86,912 73,832
-------- -------- -------- --------
Operating income 12,460 10,244 33,746 30,305
Other income, net 2,089 1,827 6,699 2,791
-------- -------- -------- --------
Income before income taxes 14,549 12,071 40,445 33,096
Income taxes 3,195 3,818 11,611 10,825
-------- -------- -------- --------
Net income $ 11,354 $ 8,253 $ 28,834 $ 22,271
======== ======== ======== ========
Diluted earnings per share $ 0.31 $ 0.22 $ 0.77 $ 0.62
Weighted-average
shares outstanding 36,314 38,078 37,232 35,688
ATMI, INC.
SCHEDULE OF EQUITY BASED COMPENSATION
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------- ---------------
2006(a) 2005(b) 2006(c) 2005(d)
------ ------ ------ ------
Cost of revenues $ 248 $ -- $ 742 $ --
Research and development 205 -- 615 --
Selling, general, and
administrative 2,055 561 6,514 1,660
------ ------ ------ ------
Total equity-based compensation
expense 2,508 561 7,871 1,660
------ ------ ------ ------
Benefit from income taxes 855 176 2,684 540
------ ------ ------ ------
Net equity-based
compensation expense $1,653 $ 385 $5,187 $1,120
====== ====== ====== ======
(a) Amounts include equity-based compensation expense related to
stock options of $1.4 million, employee stock purchase plan of
$0.1 million, and restricted stock awards of $1.0 million,
recorded under FAS 123(R).
(b) Amounts include equity-based compensation expense related to
restricted stock awards of $0.6 million, recorded under APB 25.
(c) Amounts include equity-based compensation expense related to
stock options of $4.7 million, employee stock purchase plan of
$0.4 million, and restricted stock awards of $2.5 million,
recorded under FAS 123(R).
(d) Amounts include equity-based compensation expense related to
restricted stock awards of $1.7 million, recorded under APB 25.
ATMI, INC.
SUMMARY BALANCE SHEETS
(in thousands)
Balance Sheet Highlights September 30, December 31,
2006 2005
-------- --------
(Unaudited)
Assets
Cash & marketable securities (a) $197,033 $209,851
Accounts receivable, net 54,887 47,125
Inventory, net 46,951 39,850
Other current assets 24,363 21,675
-------- --------
Total current assets 323,234 318,501
Fixed assets, net 88,797 82,821
Marketable securities, non-current (a) 20,308 46,286
Other assets 49,879 52,228
-------- --------
Total assets $482,218 $499,836
-------- --------
Liabilities and stockholders' equity
Accounts payable $ 18,504 $ 11,910
Other current liabilities 28,586 31,746
-------- --------
Total current liabilities 47,090 43,656
Non-current liabilities 1,291 3,460
Stockholders' equity 433,837 452,720
-------- --------
Total liabilities &
stockholders' equity $482,218 $499,836
-------- --------
(a) Total cash and marketable securities equaled $217.3 million
and $256.1 million at September 30, 2006 and December 31, 2005,
respectively.