Summary
Entegris, Inc. reported a strong first quarter for 2017, with net sales increasing by 19% year-over-year to $317.4 million. This growth was driven by robust demand across all segments, particularly from semiconductor industry customers, who benefited from high fab utilization and increased capital spending. The company's gross profit also saw a significant increase, rising 22% to $139.6 million, with gross margins improving to 44.0% from 43.0% in the prior year period. Net income more than doubled to $32.5 million ($0.23 per diluted share) from $16.2 million ($0.11 per diluted share) in the same period last year, reflecting strong sales performance and operational efficiencies. The company also maintained a healthy cash position, with $391.2 million in cash and cash equivalents at the end of the quarter, and generated $33.4 million in cash from operating activities. An acquisition of a product line from W.L. Gore & Associates was also completed shortly after the quarter ended, indicating continued strategic growth initiatives.
Financial Highlights
49 data points| Revenue | $317.38M |
| Cost of Revenue | $177.78M |
| Gross Profit | $139.60M |
| R&D Expenses | $27.24M |
| SG&A Expenses | $50.49M |
| Operating Income | $50.92M |
| Interest Expense | $8.47M |
| Net Income | $32.51M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 141.50M |
| Shares Outstanding (Diluted) | 143.31M |
Key Highlights
- 1Net sales increased 19% to $317.4 million for the three months ended April 1, 2017, compared to $267.0 million for the same period in 2016, driven by strong demand in the semiconductor industry.
- 2Gross profit increased 22% to $139.6 million, with gross margin improving to 44.0% from 43.0% year-over-year.
- 3Net income more than doubled to $32.5 million ($0.23 per diluted share) from $16.2 million ($0.11 per diluted share) in the prior year quarter.
- 4Operating cash flow was strong at $33.4 million for the quarter, while capital expenditures were $22.0 million.
- 5Cash and cash equivalents stood at $391.2 million as of April 1, 2017, providing a solid liquidity position.
- 6Segment performance was strong across the board, with Specialty Chemicals and Engineered Materials (SCEM) up 13%, Microcontamination Control (MC) up 29%, and Advanced Materials Handling (AMH) up 17% in net sales.
- 7The company announced the acquisition of the microelectronic water and chemical filtration product line from W.L. Gore & Associates for $20.0 million, effective April 24, 2017.