10-KPeriod: FY2018

ENTEGRIS INC Annual Report, Year Ended Dec 31, 2018

Filed February 11, 2019For Securities:ENTG

Summary

Entegris, Inc. (ENTG) is a leading global supplier of microcontamination control products, specialty chemicals, and advanced materials handling solutions, primarily serving the semiconductor industry. The company's mission is to enhance customer manufacturing yields and device performance through innovative materials and purification technologies. ENTG operates through three segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH), offering a broad portfolio of approximately 21,000 products. A significant development for Entegris in early 2019 was the announcement of a definitive merger agreement with Versum Materials, Inc. This strategic move aimed to combine Entegris's capabilities with Versum's specialty materials expertise, subject to regulatory and shareholder approvals. The company reported strong financial performance in 2018, with net sales increasing by 15% year-over-year, driven by robust demand in the semiconductor industry, particularly in fluid handling, liquid chemistry filtration, and specialty materials. ENTG continues to invest significantly in R&D to maintain its technology leadership in an evolving industry landscape.

Financial Statements
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Key Highlights

  • 1Entegris is a key supplier to the semiconductor industry, providing critical products for microcontamination control, specialty chemicals, and materials handling.
  • 2The company announced a significant merger agreement with Versum Materials, Inc. in January 2019, aiming to create a more comprehensive solutions provider.
  • 3Entegris reported a 15% increase in net sales for 2018, reaching $1.55 billion, driven by strong demand in the semiconductor sector.
  • 4The company operates across three strategic segments: SCEM, MC, and AMH, each addressing critical aspects of the semiconductor manufacturing ecosystem.
  • 5Significant investment in R&D ($118.5 million in 2018) underscores Entegris's commitment to innovation and maintaining technology leadership.
  • 6International sales accounted for approximately 78% of total net sales in 2018, highlighting the company's global reach.
  • 7Entegris has strong customer relationships, with its top ten customers accounting for 44% of net sales in 2018, indicating a degree of customer concentration.

Frequently Asked Questions

Entegris Inc. is a global developer, manufacturer, and supplier of microcontamination control products, specialty chemicals, and advanced materials handling solutions. Its primary market is the semiconductor industry, where it aims to enhance manufacturing yields and device performance.

The announcement of a definitive merger agreement with Versum Materials, Inc. in January 2019 is a key event. This transaction is expected to create a more robust company with a broader portfolio of specialty materials and solutions for the semiconductor industry. The merger is subject to customary closing conditions, including regulatory and shareholder approvals.

In 2018, Entegris reported a 15% increase in net sales to $1.55 billion, driven by strong demand in the semiconductor industry. Net income was $240.8 million, a substantial increase from $85.1 million in 2017, partly due to lower U.S. corporate tax rates and improved operational performance.

Entegris operates in three key segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH). These segments cover essential aspects of the semiconductor manufacturing process, from materials supply to contamination control and product handling.