10-QPeriod: Q2 FY2010

ENTEGRIS INC Quarterly Report for Q2 Ended Apr 3, 2010

Filed April 29, 2010For Securities:ENTG

Summary

Entegris Inc. (ENTG) reported a significant financial turnaround in its first quarter of 2010, ending April 3, 2010. The company experienced a dramatic increase in net sales, which surged by 172% year-over-year to $160.5 million, reaching the highest levels since the fourth quarter of 2007. This growth was primarily driven by a recovery in the semiconductor industry following the 2008-2009 downturn, with sales volumes increasing significantly across all operating segments. The operational improvement translated directly to the bottom line, with Entegris reporting a net income of $16.6 million ($0.12 per diluted share) compared to a net loss of $37.7 million ($0.34 per diluted share) in the prior year period. Gross margin improved substantially to 45.6% from 8.5%, driven by higher sales volumes and improved factory utilization. The company also demonstrated strong cash flow from operations, totaling $28.0 million, and effectively managed its debt levels, reducing total short-term and long-term debt to $51.2 million from $71.8 million at the end of 2009. Overall, the filing indicates a robust recovery and a positive outlook for Entegris.

Financial Highlights

5 data points
Beta

Revenue

$160.51M

45.6% Gross Margin

Net Income

$16.55M

10.3% Net Margin

EPS (Diluted)

$0.12

Financial Statements
Beta
Revenue$160.51M
Gross Profit$73.15M
Net Income$16.55M
EPS (Basic)$0.13
EPS (Diluted)$0.12

Key Highlights

  • 1Net sales dramatically increased by 172% year-over-year to $160.5 million, reaching a multi-year high.
  • 2The company returned to profitability, reporting a net income of $16.6 million, a significant improvement from a net loss of $37.7 million in the prior year period.
  • 3Gross margin expanded significantly to 45.6% from 8.5%, driven by increased sales volume and improved factory utilization.
  • 4Operating cash flow was strong at $28.0 million for the quarter.
  • 5Total debt was reduced to $51.2 million from $71.8 million at the end of the previous year.
  • 6All three operating segments (CCS, ME, ESM) showed substantial year-over-year sales growth and improved profitability.

Frequently Asked Questions

The primary driver was the recovery in the semiconductor industry following the severe downturn in 2008-2009. Increased sales volumes across Entegris' product lines, fueled by higher customer utilization rates and improved capital spending in the sector, led to the substantial revenue growth.

Entegris experienced a dramatic improvement in profitability. They reported a net income of $16.6 million in Q1 2010, a significant turnaround from a net loss of $37.7 million in Q1 2009. This was largely due to increased sales, higher gross margins, and better operational efficiency.

The company generated $28.0 million in cash from operations in the quarter. Cash and cash equivalents increased to $73.3 million. Furthermore, Entegris reduced its total short-term and long-term debt to $51.2 million, down from $71.8 million at the end of 2009, indicating a strengthening financial position.

In the prior year period (Q1 2009), Entegris incurred $4.6 million in restructuring charges and a $4.1 million charge for the fair value mark-up of acquired inventory sold. In contrast, the current quarter (Q1 2010) had no such significant charges, contributing to the improved year-over-year comparison.