10-KPeriod: FY2016

ENTEGRIS INC Annual Report, Year Ended Dec 31, 2016

Filed February 17, 2017For Securities:ENTG

Summary

Entegris, Inc. (ENTG), a global leader in microcontamination control products and advanced materials solutions, demonstrated strong performance in its 2016 fiscal year. The company reported a significant increase in net sales, up 9% year-over-year to $1.175 billion, driven primarily by growing demand from the semiconductor industry. This growth was fueled by higher fab utilization, increased capital spending, and strong sales in key product areas like advanced deposition materials, wafer handling, and wet etch/CMP products. Financially, Entegris saw a robust increase in net income to $97.1 million, up from $80.3 million in the prior year, translating to diluted EPS of $0.68. The company also generated substantial operating cash flow, reinforcing its financial stability. Entegris's business is strategically organized into three segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH), and Microcontamination Control (MC), all contributing to its integrated solutions approach for high-technology manufacturing. The company continues to invest in R&D to maintain its technological leadership and expand its offerings in adjacent markets, positioning itself for sustained growth in the dynamic semiconductor ecosystem.

Financial Statements
Beta

Key Highlights

  • 1Net sales increased by 9% to $1.175 billion in 2016, driven by strong demand in the semiconductor industry.
  • 2Net income rose to $97.1 million, with diluted EPS of $0.68, indicating improved profitability.
  • 3The company generated significant operating cash flow of $207.6 million, underscoring its financial health.
  • 4Entegris operates through three key segments: SCEM, AMH, and MC, providing a comprehensive suite of solutions for semiconductor manufacturing.
  • 5Investments in R&D remain a priority, with $107.0 million spent in 2016 to drive innovation and new product development.
  • 6Geographically, Asia Pacific represents the largest market, accounting for 56% of sales in 2016.
  • 7The company actively repurchased shares under its authorized program, returning value to shareholders.

Frequently Asked Questions

Entegris develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions for the semiconductor and other high-technology industries. Their offerings include high-purity process chemistries and gases, advanced materials, solutions for monitoring and protecting critical liquid chemistries and substrates, and systems for purifying liquid chemistries and gases.

In 2016, Entegris reported net sales of $1.175 billion, a 9% increase from the prior year. Net income grew to $97.1 million, and diluted earnings per share were $0.68. The company also generated strong operating cash flow of $207.6 million.

Entegris's revenue is primarily driven by the semiconductor industry's manufacturing activity, specifically factors like semiconductor fab utilization and production volume (unit-driven demand), and capital spending for new or upgraded fabrication equipment and facilities (capital-driven demand). Emerging technologies like the Internet of Things, autonomous cars, and AI also contribute to demand.

Key risks include the cyclical nature of the semiconductor industry, intense competition, reliance on a few key customers, challenges in technological innovation and new product introductions, potential supply chain disruptions due to single or limited-source suppliers, and risks associated with international operations and currency fluctuations.