ATMI Reports Fourth Quarter and 2004 Results

ATMI Reports Fourth Quarter and 2004 Results 


DANBURY, Conn., Feb. 2  /PRNewswire-FirstCall/ -- ATMI, Inc. (NASDAQ:ATMI), a
supplier of materials and materials packaging to the world's leading
semiconductor manufacturers, today announced financial results for its fourth
quarter, and for the year 2004.

RESULTS FOR THE FOURTH QUARTER OF 2004

Revenues from continuing operations were $64.9 million in the fourth quarter,
an increase of 24% from the fourth quarter of last year, and up 1% sequentially
from the third quarter of 2004. Income from continuing operations was $3.9
million, or $0.13 per diluted share, which includes a $0.09 per share special
charge related to the write-down of a strategic equity investment. Excluding
this special charge, income from continuing operations in the fourth quarter
was $0.22 per diluted share. Income from continuing operations was $5.6
million, or $0.18 per diluted share, in the fourth quarter of last year, which
included both a $0.03 per diluted share special charge related to a write-down
of a strategic equity investment and a $0.10 per diluted share one-time tax
benefit. Income from continuing operations in the third quarter of 2004 was
$6.4 million, or $0.20 per diluted share.

Overall, net income for the fourth quarter was $6.9 million, or $0.22 per
diluted share, which includes a $0.01 per diluted share loss from discontinued
operations and a gain of $0.10 per diluted share on the sale of the one
remaining discontinued operation. For the fourth quarter last year, net income
was $5.2 million, or $0.17 per diluted share, including a $0.01 loss per
diluted share from discontinued operations.

RESULTS FOR THE FULL YEAR OF 2004

For 2004, revenues from continuing operations were $246.3 million, up 43% from
$171.6 million in 2003. Income from continuing operations was $20.1 million, or
$0.64 per diluted share, including a $0.09 per diluted share charge for a
strategic equity investment write-down. In 2003, income from continuing
operations was $2.0 million, or $0.06 per diluted share, including a $0.12 per
diluted share net charge for special items consisting of a one-time tax benefit
offset by a strategic equity investment write-down and other special charges.
Overall, net income was $31.5 million, or $1.00 per diluted share in 2004,
including $0.26 per diluted share in gains from sales of discontinued
operations, and $0.10 per diluted share of income from the actual operations of
discontinued businesses during the year. That compares with a loss of $9.9
million in 2003, or $0.32 per diluted share, including a $0.38 loss per diluted
share from the operations of discontinued businesses during the year.

COMMENTS

Doug Neugold, ATMI Chief Executive Officer, said, "2004 was an important year
for the Company. With the completion of our divestiture activity, we ended 2004
and start 2005 focused on our three key offerings: SDS(R) for implant gas
delivery, performance materials used in high growth, advanced copper
interconnect processes, and packaging products for photoresist and other
performance materials where process efficiency is demanded. This mix gives us
stability, even when overall wafer starts slow, or temporarily contract.

"For 2005, we have set aggressive targets for increasing our focus on key
customers, expanding our presence in Asia, improving our position at the
leading edge with new products and services for advanced devices, and growing
market share for existing devices. ATMI's model of providing products that
enable leading edge processes offers ATMI significant growth opportunities. Our
wafer start-driven model and our market strength in emerging technology nodes
enhance our ability to generate profit and positive cash flow despite the
frequently cyclical market environment."

Dan Sharkey, ATMI Chief Financial Officer, said, "The strength from our product
lines that sell into advanced technology applications drove sequential growth
in a quarter where global wafer starts were down by almost 10%. A favorable
product mix, driven primarily by a strong quarter for our liquid packaging
products, drove sequentially better gross margins, at 51.5% for the quarter,
and operating profitability at $0.22 per share. We begin 2005 with an extremely
strong balance sheet, supported by almost $240 million in cash, as our
completed divestitures in 2004, all at above book value, generated almost $100
million. For the first quarter of 2005, with the expectations that copper lines
are still running at high capacity, and that worldwide wafer starts will be
relatively flat, we anticipate revenues in the range of $63 million to $67
million, with earnings between $0.17 and $0.23 per share."

ATMI provides specialty materials and materials packaging to the worldwide
semiconductor industry. For more information, please visit
http://www.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 2005 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.

Note: A conference call (800.289.0743) discussing financial results will begin
at 11:00 a.m. Eastern time, February 2nd, 2005. A replay (888.203.1112, PIN
580958) of the call will be available for 48 hours. An audio webcast of the
conference call will be available for 30 days on http://www.atmi.com/ .

                                ATMI, INC.
                     SUMMARY STATEMENTS OF OPERATION
                  (in thousands, except per share data)

                              Three Months Ended       Twelve Months Ended
                                 December 31,              December 31,
                              2004         2003         2004         2003

  Revenues                  $64,871      $52,352     $246,291     $171,634
  Cost of revenues           31,481       25,597      122,415       89,902
  Gross profit               33,390       26,755      123,876       81,732
  Operating expenses
    R & D                     4,826        5,361       19,577       19,170
    S, G, & A                18,353       15,061       66,920       54,145
    Restructuring &
     other charges                -            -            -        1,731

                             23,179       20,422       86,497       75,046

  Operating income           10,211        6,333       37,379        6,686

  Other expense, net         (4,351)      (2,271)      (6,915)      (9,315)

  Income from continuing
   operations before taxes    5,860        4,062       30,464       (2,629)

  Income taxes  (benefit)     1,932       (1,550)      10,358       (4,617)

  Income (loss) from
   continuing operations      3,928        5,612       20,106        1,988

  Income (loss) from
   discontinued operations     (276)        (366)       3,313      (11,907)

  Gain on disposal of
   discontinued
   operations                 3,258            -        8,083            -

  Net income (loss)          $6,910       $5,246      $31,502     ($ 9,919)

  Diluted earnings
   (loss) per share:
  Income from
   continuing
   operations                 $0.13        $0.18        $0.64        $0.06


  Income (loss) from
   discontinued
   operations                ($0.01)      ($0.01)       $0.10       ($0.38)
  Gain on disposal of
   discontinued
   operations                 $0.10            -        $0.26            -
  Net Income (loss)           $0.22        $0.17        $1.00       ($0.32)

  Weighted average
   shares outstanding        31,704       31,309       31,650       31,208


                                ATMI, INC.
                          SUMMARY BALANCE SHEETS
                              (in thousands)

  Balance Sheet Highlights                  December 31,     December 31,
                                                2004             2003
  Assets
     Cash & marketable securities             $238,960         $128,700
     Accounts receivable, net                   43,680           38,439
     Inventory, net                             36,918           21,564
     Assets held for sale                            -           84,736

     Other current assets                       31,340           16,280
        Total current assets                   350,898          289,719
     Fixed assets, net                          69,758           64,673
     Other assets                               49,444           60,050
          Total assets                        $470,100         $414,442

  Liabilities and stockholders' equity
     Accounts payable                         $ 16,174         $ 11,743
     Short-term debt                               220            1,047
     Liabilities held for sale                       -            7,196
     Other current liabilities                  37,876           24,799
       Total current liabilities                54,270           44,785
     Long-term debt                            115,084          115,290
     Other long-term liabilities                 3,169              116
     Stockholders' equity                      297,577          254,251
        Total liabilities &
         stockholders' equity                 $470,100         $414,442


DATASOURCE: ATMI, Inc.



CONTACT:  Dean Hamilton of ATMI, [phone] Direct, or

[phone], ext. 4202, 



Web site:  http://www.atmi.com/ 

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