Summary
Entegris, Inc. (ENTG) filed its 2010 Form 10-K on February 24, 2011, reporting on its performance for the fiscal year ended December 31, 2010. The company, a global developer and manufacturer of products for the semiconductor and other high-technology industries, demonstrated a significant recovery from the 2009 downturn. Net sales increased by 73% to $688.4 million, driven by a broad-based rebound in its core semiconductor markets. This recovery was reflected across all three operating segments: Contamination Control Solutions (CCS), Microenvironments (ME), and Specialty Materials (SMD). The company achieved a substantial improvement in profitability, with gross margin rising to 45.1% from 34.6% in the prior year, largely due to increased sales volume and improved factory utilization. This financial turnaround resulted in net income attributable to Entegris of $84.4 million, or $0.63 per diluted share, a significant improvement from a net loss of $57.7 million in 2009. Entegris's business strategy emphasizes a comprehensive product offering, diversified revenue streams between consumable and capital-expense driven products, technology leadership, and a global presence, which appear to be contributing to its resilience and recovery.
Financial Highlights
48 data points| Revenue | $688.42M |
| Cost of Revenue | $377.77M |
| Gross Profit | $310.64M |
| R&D Expenses | $43.93M |
| SG&A Expenses | $147.05M |
| Operating Income | $106.43M |
| Interest Expense | $3.60M |
| Net Income | $84.36M |
| EPS (Basic) | $0.64 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 131.69M |
| Shares Outstanding (Diluted) | 133.17M |
Key Highlights
- 1Significant revenue recovery: Net sales surged 73% year-over-year to $688.4 million in 2010, indicating a strong rebound from the 2009 industry downturn.
- 2Improved profitability: Gross margin expanded significantly to 45.1% in 2010 from 34.6% in 2009, driven by higher sales volumes and better factory utilization.
- 3Return to net income: The company reported a net income of $84.4 million ($0.63 per diluted share) in 2010, a substantial improvement from a net loss of $57.7 million ($0.49 per diluted share) in 2009.
- 4Balanced revenue model: Sales mix shifted slightly towards capital-expense driven products (37%) from 30% in 2009, suggesting a recovery in capacity expansion spending alongside robust consumable product sales (63%).
- 5Strong segment performance: All three operating segments—Contamination Control Solutions, Microenvironments, and Specialty Materials—experienced significant sales increases and improved profitability.
- 6Global reach: International sales continued to represent a substantial portion of revenue (approximately 71% in 2010), highlighting the company's global market penetration.
- 7Strengthened balance sheet: Shareholders' equity increased by 33% to $459.6 million, and the company reduced its debt, ending the year with no outstanding long-term debt.