Summary
Entegris, Inc. reported a significant recovery in its financial performance for the six months ended July 3, 2010, compared to the same period in 2009, which was heavily impacted by the global economic recession. Net sales more than doubled year-over-year, driven by a broad recovery across its semiconductor-focused segments: Contamination Control Solutions (CCS), Microenvironments (ME), and Entegris Specialty Materials (ESM). This sales rebound, coupled with improved factory utilization and a favorable product mix shift towards higher-margin capital-driven products, led to a substantial improvement in gross profit and a return to profitability. The company's balance sheet shows an increase in cash and cash equivalents and a significant reduction in long-term debt. While capital expenditures remain controlled, operational cash flow has strengthened, enabling debt reduction. The company has also amended its revolving credit facility, reducing its commitment but gaining flexibility in certain covenants. Management expresses confidence in its ability to meet working capital and investment requirements for the next twelve months through existing cash, credit facilities, and operational cash flow.
Financial Highlights
29 data points| Revenue | $167.57M |
| Cost of Revenue | $90.45M |
| Gross Profit | $77.13M |
| R&D Expenses | $10.74M |
| SG&A Expenses | $36.59M |
| Operating Income | $26.43M |
| Interest Expense | $1.67M |
| Net Income | $18.39M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 131.57M |
| Shares Outstanding (Diluted) | 132.87M |
Key Highlights
- 1Net sales for the six months ended July 3, 2010, increased by 132% to $328.1 million compared to $141.6 million in the prior year period, indicating a strong market recovery.
- 2The company returned to profitability, reporting a net income attributable to Entegris, Inc. of $34.9 million ($0.26 per diluted share) for the six months ended July 3, 2010, a significant improvement from a net loss of $60.2 million ($0.54 per diluted share) in the prior year period.
- 3Gross margin improved significantly to 45.8% for the first six months of 2010 from 20.3% in the comparable period of 2009, driven by higher sales volumes and better factory utilization.
- 4Cash flow from operations was robust at $55.8 million for the first six months of 2010, allowing for a reduction in outstanding debt by $45.8 million.
- 5Total debt (short-term and long-term) decreased to $26.3 million as of July 3, 2010, down from $71.8 million at the end of 2009.
- 6The company's revolving credit facility commitment was reduced from $121.7 million to $60.0 million in May 2010, with outstanding borrowings of $20.4 million as of July 3, 2010.
- 7The company's three reportable segments (CCS, ME, and ESM) all experienced substantial year-over-year net sales growth and improved profitability.