10-KPeriod: FY2007

ENTEGRIS INC Annual Report, Year Ended Dec 31, 2007

Filed March 3, 2008For Securities:ENTG

Summary

Entegris, Inc.'s 2007 Form 10-K details a challenging year marked by a 6.9% decline in net sales to $626.2 million, primarily driven by a slowdown in the semiconductor industry. Despite this, the company continues to be a key supplier of materials integrity management solutions, with a diverse product portfolio serving the semiconductor and data storage sectors. The company actively managed its financial resources, repurchasing $251.4 million of its stock in a tender offer and investing in a specialty coatings business. Financially, Entegris reported a net income of $44.4 million, down from $63.5 million in 2006, reflecting lower sales and a decrease in gross margin to 42.5%. The company also highlighted efforts to address a material weakness in internal controls related to income tax accounting. Despite industry cyclicality and competitive pressures, Entegris remains focused on technological leadership and global presence to drive future growth.

Key Highlights

  • 1Net sales decreased by 6.9% to $626.2 million in 2007, reflecting a slowdown in the semiconductor industry.
  • 2Net income for 2007 was $44.4 million, down from $63.5 million in 2006, with diluted EPS at $0.36.
  • 3Gross margin declined to 42.5% in 2007 from 45.3% in 2006 due to lower factory utilization and integration-related costs.
  • 4Entegris repurchased approximately $251.4 million of its common stock in a 'Dutch Auction' tender offer during the second quarter of 2007.
  • 5The company acquired a specialty coatings business in August 2007 for $44.9 million to expand its offerings.
  • 6A material weakness in internal control over financial reporting related to income tax accounting was identified and is being remediated.
  • 7International sales represented approximately 74% of net sales in 2007, highlighting the company's global reach.

Frequently Asked Questions

For the fiscal year ended December 31, 2007, Entegris reported net sales of $626.2 million, a decrease of 6.9% compared to 2006. Net income was $44.4 million, or $0.36 per diluted share, down from $63.5 million ($0.46 per diluted share) in the prior year. The gross margin decreased to 42.5% from 45.3%.

Entegris actively managed its capital by repurchasing approximately $251.4 million of its common stock through a tender offer completed in June 2007. Additionally, the company invested $44.9 million in acquiring a specialty coatings business in August 2007.

Entegris faces significant risks related to the cyclical nature of the semiconductor industry, which can lead to volatile demand and revenue. Other challenges include intense competition, the need to maintain technological leadership, dependence on key customers, and potential disruptions in its supply chain. The company also noted a material weakness in internal controls related to income tax accounting.

Entegris is a worldwide developer, manufacturer, and supplier of materials integrity management solutions, primarily serving the microelectronics, semiconductor, and data storage industries. Its products are categorized as unit-driven/consumable products (approximately 60% of 2007 sales) and capital-expense driven products (approximately 40% of 2007 sales).