Summary
Entegris, Inc. (ENTG) reported a strong second quarter and first half of 2011, demonstrating significant year-over-year growth in net sales and profitability. Net sales for the three months ended July 2, 2011, reached $209.2 million, a 25% increase compared to the prior year, marking the highest quarterly sales in the company's history. This growth was driven by strong performance across all operating segments, indicating a healthy demand environment in the semiconductor and related industries. The company also saw substantial improvements in net income, with diluted EPS rising to $0.24 for the quarter compared to $0.14 in the same period last year. Operationally, Entegris has strengthened its financial position, with cash and cash equivalents increasing significantly. The company successfully renegotiated its credit facility, securing a $30 million revolving credit line maturing in 2014, while maintaining compliance with all debt covenants. Management expressed confidence in the company's liquidity and ability to meet its obligations, projecting third-quarter 2011 sales between $180 million and $190 million. Investors should note the positive sales momentum, improved profitability, and stable financial footing as key takeaways from this report.
Financial Highlights
45 data points| Revenue | $209.20M |
| Cost of Revenue | $114.06M |
| Gross Profit | $95.14M |
| R&D Expenses | $12.46M |
| SG&A Expenses | $39.13M |
| Operating Income | $40.99M |
| Interest Expense | $570K |
| Net Income | $32.52M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 134.53M |
| Shares Outstanding (Diluted) | 136.11M |
Key Highlights
- 1Net sales for the three months ended July 2, 2011, increased 25% year-over-year to $209.2 million, the highest quarterly sales in the company's history.
- 2Net income attributable to Entegris, Inc. for the quarter was $32.5 million ($0.24 per diluted share), a substantial increase from $18.4 million ($0.14 per diluted share) in the prior year's quarter.
- 3Cash and cash equivalents and short-term investments grew to $191.5 million as of July 2, 2011, indicating strong cash generation and improved liquidity.
- 4The company's gross profit margin remained robust, at 45.5% for the second quarter of 2011, demonstrating effective cost management amidst increased sales.
- 5All three operating segments (Contamination Control Solutions, Microenvironments, and Specialty Materials) reported net sales increases, reflecting broad-based market demand.
- 6Entegris entered into a new $30 million revolving credit facility maturing in June 2014, replacing a prior facility, and remains in compliance with all debt covenants.
- 7The company is projecting third quarter 2011 sales in the range of $180 million to $190 million, suggesting continued positive business trends.