Summary
Entegris, Inc. (ENTG) reported a strong second quarter for fiscal year 2016, with net sales increasing by 8% year-over-year to $303.1 million, driven by improved demand in the semiconductor industry, particularly from higher fab utilization rates and increased capital spending. This revenue growth translated into improved profitability, with net income rising to $32.9 million, or $0.23 per diluted share, up from $24.4 million, or $0.17 per diluted share, in the prior year's comparable quarter. The company's gross profit margin also saw a slight improvement to 45.9% due to increased sales and better factory utilization. Operationally, the company demonstrated solid cash flow generation, with $78.5 million in cash provided by operating activities for the first six months of the year, alongside prudent management of capital expenditures. The balance sheet remains robust, with cash and cash equivalents increasing to $373.7 million. Entegris continues to manage its debt effectively, with long-term debt decreasing year-over-year. The company's two primary segments, Critical Materials Handling (CMH) and Electronic Materials (EM), both contributed positively to the overall growth, with CMH showing a notable increase in sales and segment profit.
Financial Highlights
50 data points| Revenue | $303.05M |
| Cost of Revenue | $163.85M |
| Gross Profit | $139.21M |
| R&D Expenses | $28.15M |
| SG&A Expenses | $53.60M |
| Operating Income | $46.40M |
| Interest Expense | $9.09M |
| Net Income | $32.89M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 140.95M |
| Shares Outstanding (Diluted) | 141.72M |
Key Highlights
- 1Net sales increased 8% to $303.1 million for the three months ended July 2, 2016, compared to $280.7 million in the prior year period, driven by strong semiconductor industry demand.
- 2Net income rose significantly to $32.9 million ($0.23 per diluted share) for the quarter, compared to $24.4 million ($0.17 per diluted share) in the prior year.
- 3Gross profit margin improved slightly to 45.9% from 45.6% year-over-year, attributed to higher sales and improved factory utilization.
- 4The company generated $78.5 million in cash from operating activities for the first six months of the fiscal year, indicating strong operational cash flow.
- 5Cash and cash equivalents increased to $373.7 million as of July 2, 2016, up from $349.8 million at the end of 2015.
- 6Long-term debt decreased to $632.2 million from $656.0 million at the end of 2015, reflecting debt repayment efforts.
- 7Both operating segments, Critical Materials Handling (CMH) and Electronic Materials (EM), reported sales growth, with CMH showing particularly strong performance.