Atmi Inc. (MM) (NASDAQ:ATMI)
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ATMI Reports Third Quarter 2004 Results
DANBURY, Conn., Oct. 20 /PRNewswire-FirstCall/ -- ATMI, Inc. (NASDAQ:ATMI), a
supplier of materials and materials packaging to the world's leading
semiconductor manufacturers, today announced revenues of $64.4 million for the
third quarter of 2004, an increase of 52% from $42.3 million in the third
quarter of 2003, and an increase of 6% over $61.0 million in the second quarter
of 2004.
Continuing operations in the third quarter generated income of $6.4 million, or
$0.20 per diluted share. In the third quarter of 2003, continuing operations
generated a loss of $4.7 million, or $0.16 per diluted share, including $4.2
million in special charges related to asset impairments as a result of
transitioning product lines to a new manufacturing facility, a write down in
the Company's strategic investment portfolio, and a charge related to acquired
in-process research and development. In the second quarter of 2004, continuing
operations generated income of $5.8 million, or $0.18 per diluted share.
Overall, net income for the third quarter was $10.6 million, or $0.34 per
diluted share, which includes earnings of $0.03 per diluted share from the
performance of discontinued operations, and a gain of $0.11 per diluted share
from sale of the epitaxial services and Emosyn discontinued operations. For the
third quarter of 2003, net loss was $10.8 million, or $0.36 per diluted share,
which included a loss of $0.20 per diluted share from the performance of
discontinued operations. Net income for the second quarter of 2004 was $7.9
million, or $0.25 per diluted share, including $0.06 per diluted share from the
performance of discontinued operations and a gain of $0.01 per diluted share
related to the sale of the life safety systems and fab services discontinued
operations.
For the nine months ended September 30, 2004, revenue from continuing
operations totaled $181.4 million, an increase of 52% compared with $119.3
million for the same period in 2003. Income from continuing operations was
$16.2 million, or $0.51 per diluted share, compared with a loss of $3.6
million, or $0.12 per diluted share, in the same period last year, including
$5.1 million in special charges related to asset impairments as a result of
transitioning product lines to a new manufacturing facility, a write down in
the Company's strategic investment portfolio, and a charge related to acquired
in-process research and development. Overall net income for the first nine
months of 2004 was $24.6 million, or $0.78 per diluted share, which includes
$0.12 per diluted share from the performance of discontinued operations, and a
gain of $0.15 per diluted share from sale of five of the six discontinued
operations. For the first nine months of 2003, net loss was $15.2 million, or
$0.50 per diluted share, which included a loss of $0.38 from the performance of
discontinued operations.
Doug Neugold, ATMI President and Chief Operating Officer, said, "Our third
quarter performance is an example of what we believe our wafer start-driven
business model can achieve in a difficult environment. While we, like the rest
of the industry, have some exposure to capital equipment push-outs and
reductions in wafer starts, those declines for the most part represent trailing
edge technologies. In ATMI's case, this is offset by the growth in emerging
technology nodes -- 130 nanometer and below -- where we realize more than 30%
of our business. Our customers are aggressively ramping these processes, a
trend we expect to continue."
Dan Sharkey, ATMI Chief Financial Officer, said, "ATMI's materials product
lines showed continued growth during the third quarter. Gross margins
sequentially improved to 50.6%, in an environment where volume manufacturing is
ramping to meet additional copper-related materials demand beyond our
customers' initial forecasts and our local inventories. Proceeds from sales of
our discontinued epitaxial services and Emosyn smart card businesses added over
$50 million in cash to our balance sheet during the quarter. We continue to
actively pursue the disposal of our abatement systems business, our only
remaining discontinued operation, which we hope to complete by the end of
2004."
Gene Banucci, ATMI Chairman and Chief Executive Officer, said, "ATMI's third
quarter is distinct directionally from those of many participants in the
semiconductor supply chain. We expect pressures on the supply chain to continue
in the fourth quarter as wafer start growth goes negative from essentially flat
in the third quarter. Our best estimate at present is that wafer starts will
shrink 7-10% during the fourth quarter and return to a growth mode in the first
quarter of 2005. As far as ATMI is concerned, we anticipate that our copper
wafer start-driven base of business will enable us to mitigate much of the
impact of the global trend."
ATMI provides specialty materials and materials packaging to the worldwide
semiconductor industry. For more information, please visit http://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 2004, 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 or ATMI's markets; competition, problems, or delays developing and
commercializing new products; problems or delays in integrating acquired
operations and businesses into ATMI; problems or delays associated with any
restructuring activity, including resolution of the various discontinued
elements of ATMI's Technologies segment; and other factors discussed in ATMI's
filings with the Securities and Exchange Commission. Such risks and
uncertainties could cause actual results to differ from those projected. ATMI
undertakes no obligation to publicly update or revise any forward-looking
statements, whether because of new information, future events or otherwise.
Note: A conference call (800.289.0544) discussing financial results will begin
at 11:00 a.m. Eastern time, October 20th, 2004. A replay (888.203.1112, PIN
732967) of the call will be available for 48 hours. An audio webcast of the
conference call will be available for 30 days on http://atmi.com/.
ATMI, INC.
SUMMARY STATEMENTS OF OPERATION
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Revenues $64,423 $42,260 $181,420 $119,282
Cost of revenues 31,843 25,691 90,934 64,305
Gross profit 32,580 16,569 90,486 54,977
Operating expenses
R & D 5,224 5,335 14,751 13,809
S, G, & A 16,687 13,882 48,567 39,084
Restructuring &
other charges -- 1,731 -- 1,731
21,911 20,948 63,318 54,624
Operating income
(loss) 10,669 (4,379) 27,168 353
Other expense, net (981) (3,629) (2,564) (7,046)
Income (loss) before
taxes 9,688 (8,008) 24,604 (6,693)
Income taxes (benefit) 3,293 (3,352) 8,426 (3,069)
Income (loss) from
continuing operations 6,395 (4,656) 16,178 (3,624)
Income (loss) from
operations
of discontinued
operations 755 (6,117) 3,589 (11,541)
Gain on disposal of
discontinued
operations 3,468 -- 4,825 --
Net income (loss) $10,618 ($10,773) $24,592 ($15,165)
Diluted earnings
(loss) per
share from
continuing
operations $0.20 ($0.16) $0.51 ($0.12)
Diluted earnings
(loss) per
share from
operations of
discontinued
operations $0.03 ($0.20) $0.12 ($0.38)
Diluted earnings per
share from gain
on disposal
of discontinued
operations $0.11 -- $0.15 --
Diluted earnings
(loss) per share $0.34 ($0.36) $0.78 ($0.50)
Weighted average
shares 31,603 30,214 31,668 30,109
outstanding
ATMI, INC.
SUMMARY BALANCE SHEETS
(in thousands)
Balance Sheet Highlights September 30, December 31,
2004 2003
Assets
Cash & marketable securities $225,805 $128,700
Accounts receivable, net 39,844 38,439
Inventory, net 34,313 21,564
Assets held for sale 13,513 84,736
Other current assets 23,256 16,280
Total current assets 336,731 289,719
Fixed assets, net 68,058 64,673
Other assets 57,616 60,050
Total assets $462,405 $414,442
Liabilities and stockholders' equity
Accounts payable $16,398 $11,743
Short-term debt 680 1,047
Liabilities held for sale 7,979 7,196
Other current liabilities 36,017 24,799
Total current liabilities 61,074 44,785
Long-term debt 115,101 115,290
Other long-term liabilities 204 116
Stockholders' equity 286,026 254,251
Total liabilities & stockholders'
equity $462,405 $414,442
DATASOURCE: ATMI, Inc.
CONTACT: Dean Hamilton of ATMI, +1-203-207-9349 Direct, or
+1-203-794-1100, ext. 4202,
Web site: http://www.atmi.com/