Summary
Entegris, Inc. (ENTG) demonstrated robust growth in 2017, with net sales increasing by 14% to $1.34 billion, driven by strong demand in the semiconductor industry, particularly in gas and liquid filtration solutions, and specialty materials. The company's strategic focus on innovation and product development, coupled with expanding its global manufacturing and technical support facilities, positions it well to capitalize on the increasing complexity and purity requirements of advanced semiconductor manufacturing processes. Despite a significant increase in income tax expense due to the Tax Cuts and Jobs Act of 2017, Entegris maintained a healthy financial performance, with notable improvements in gross margin and operating income, underscoring its critical role in the semiconductor supply chain. The company operates across three key segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH). Each segment plays a vital role in the semiconductor manufacturing ecosystem, from providing high-purity chemicals and materials to ensuring contamination-free transport and processing. Entegris' diversified product portfolio and strong customer relationships, including with major semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company and Samsung Electronics, are key competitive strengths. The company's commitment to research and development, evidenced by consistent R&D spending, fuels its ability to introduce new, advanced solutions to meet evolving industry demands.
Financial Highlights
55 data points| Revenue | $1.34B |
| Cost of Revenue | $733.55M |
| Gross Profit | $608.99M |
| R&D Expenses | $106.95M |
| SG&A Expenses | $216.19M |
| Operating Income | $241.82M |
| Interest Expense | $32.34M |
| Net Income | $85.07M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 141.55M |
| Shares Outstanding (Diluted) | 143.52M |
Key Highlights
- 1Entegris reported a 14% increase in net sales for 2017, reaching $1.34 billion, driven by strong demand in the semiconductor industry.
- 2Gross profit increased by 20% to $609.0 million, with gross margin improving to 45.4% in 2017 from 43.3% in 2016.
- 3Operating income saw a significant rise of 55% to $241.8 million in 2017.
- 4The company operates through three distinct segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH), each contributing to its integrated solutions approach.
- 5Entegris highlighted its strong customer relationships, with its top ten customers accounting for 47% of net sales in 2017, including significant business with Taiwan Semiconductor Manufacturing Company and Samsung Electronics.
- 6R&D expenses remained stable at $107.0 million in both 2017 and 2016, reflecting a consistent commitment to innovation.
- 7The company acquired the microelectronic water and chemical filtration product line from W.L. Gore & Associates in April 2017, enhancing its product portfolio.