Summary
Entegris, Inc. (ENTG) reported for the quarter ending June 29, 2013, a decline in net sales for both the three-month and six-month periods compared to the prior year, primarily due to continued softness in semiconductor industry spending. Net sales for the three months ended June 29, 2013, were $177.5 million, down 6% from $188.2 million in the same period last year. For the first six months of 2013, net sales were $342.6 million, a 6% decrease from $363.6 million in the comparable 2012 period. This sales performance led to a corresponding decrease in gross profit and net income, with diluted EPS reported at $0.14 for the quarter and $0.26 for the six months, down from $0.16 and $0.29 respectively in the prior year. Despite the revenue challenges, the company made strategic acquisitions, including Jetalon Solutions, Inc., to bolster its Contamination Control Solutions segment. Entegris maintained a strong liquidity position with $343.4 million in cash and cash equivalents at quarter-end and no outstanding debt. The company also managed its operating expenses effectively, with SG&A expenses flat for the quarter and down 5% for the first six months year-over-year, and increased its investment in R&D. Management indicated that overall demand improved sequentially, particularly from leading-edge fabs, though industry utilization rates remained below peak levels.
Financial Highlights
49 data points| Revenue | $177.54M |
| Cost of Revenue | $99.97M |
| Gross Profit | $77.57M |
| R&D Expenses | $13.43M |
| SG&A Expenses | $35.40M |
| Operating Income | $26.39M |
| Interest Expense | $40K |
| Net Income | $19.78M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 139.25M |
| Shares Outstanding (Diluted) | 139.75M |
Key Highlights
- 1Net sales decreased by 6% for both the three-month and six-month periods ended June 29, 2013, compared to the prior year, driven by weakness in the semiconductor industry.
- 2Net income for the quarter was $19.8 million ($0.14 per diluted share), down from $21.7 million ($0.16 per diluted share) in the same period last year.
- 3The company acquired Jetalon Solutions, Inc. on April 1, 2013, for $16.5 million (including contingent consideration) to enhance its Contamination Control Solutions segment.
- 4Cash and cash equivalents remained strong at $343.4 million as of June 29, 2013, with no outstanding debt.
- 5Gross margin slightly decreased to 43.7% for the quarter and 42.2% for the six months, compared to 44.0% and 43.7% respectively in the prior year, impacted by lower sales and factory utilization.
- 6SG&A expenses decreased by 2% for the quarter and 5% for the six months, demonstrating effective cost management.
- 7R&D expenses increased slightly, indicating continued investment in product development.
- 8The effective tax rate decreased to 26.0% for the six-month period in 2013, down from 33.2% in 2012, partly due to a research expenditure credit.