Summary
Entegris, Inc. (ENTG) is a global developer, manufacturer, and supplier of yield-enhancing materials and solutions for the semiconductor and other high-technology industries. In 2014, the company significantly expanded its operations through the acquisition of ATMI, Inc. for approximately $1.1 billion, which was funded by issuing $820 million in debt. This acquisition notably boosted Entegris' net sales by 39% to $962 million in 2014, primarily through the addition of ATMI's $245 million in sales. However, the integration of ATMI also led to increased Selling, General, and Administrative (SG&A) expenses, as well as higher Engineering, Research, and Development (ER&D) costs. Despite the revenue growth, net income for 2014 saw a substantial decrease to $7.9 million ($0.06 per diluted share) from $74.5 million ($0.53 per diluted share) in 2013, largely due to merger-related expenses, including inventory fair value adjustments and increased interest expenses from the new debt. Looking ahead, Entegris is focused on leveraging its technology leadership, global presence, operational excellence, and strong customer relationships to maintain its competitive edge in the highly cyclical semiconductor industry. The company's strategy includes continued investment in R&D to address evolving customer needs for advanced manufacturing processes and contamination control.
Financial Highlights
51 data points| Revenue | $962.07M |
| Cost of Revenue | $585.39M |
| Gross Profit | $376.68M |
| R&D Expenses | $87.71M |
| SG&A Expenses | $231.83M |
| Operating Income | $21.35M |
| Interest Expense | $33.35M |
| Net Income | $7.89M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 139.31M |
| Shares Outstanding (Diluted) | 140.06M |
Key Highlights
- 1The company completed a significant acquisition of ATMI, Inc. in April 2014 for approximately $1.1 billion, substantially increasing net sales by 39% to $962 million in 2014.
- 2Despite increased sales driven by the ATMI acquisition, net income decreased significantly to $7.9 million in 2014 from $74.5 million in 2013, primarily due to merger-related expenses and increased debt.
- 3The ATMI acquisition shifted the product mix, with unit-driven products comprising 74% of sales in 2014, up from 66% in 2013.
- 4Operating income saw a sharp decline in 2014 to $21.4 million from $94.2 million in 2013, largely impacted by merger costs and increased amortization of intangible assets.
- 5Entegris operates in two key segments: Critical Materials Handling (CMH) and Electronic Materials (EM), with EM showing substantial sales growth in 2014 due to the ATMI acquisition.
- 6The company experienced an increase in long-term debt to $767 million as of December 31, 2014, primarily to fund the ATMI acquisition.
- 7R&D expenses increased significantly by 59% to $87.7 million in 2014, reflecting continued investment in advanced materials and technologies, including the integration of ATMI's R&D capabilities.