8-KEarnings & ResultsFinancial EventsExhibits & Filings

ENTEGRIS INC 8-K Report, Financial Results (Jul 29, 2008)

Filed July 29, 2008For Securities:ENTG

Summary

Entegris, Inc. (ENTG) filed an 8-K on July 29, 2008, primarily to announce its second-quarter 2008 financial results and to disclose a restatement of its first-quarter 2008 financial statements due to identified accounting errors. The restatement concerns an understatement of gross margin and net income for the quarter ended March 29, 2008. While the restatement involves an increase of approximately $2.5 million in gross margin and $1.7 million in net income ($0.02 per diluted share), the company emphasizes that these errors did not affect revenue or cash flows. The errors stemmed from the accounting treatment of foreign exchange impact on inter-company profit elimination and an incorrect journal entry related to manufacturing variances. Entegris is in the process of evaluating the implications for its internal controls and expects to provide further information in an amended 10-Q filing.

Key Highlights

  • 1Entegris announced its Q2 2008 financial results via press release on July 29, 2008.
  • 2The company identified accounting errors in its financial statements for the quarterly period ended March 29, 2008.
  • 3These errors led to an understatement of gross margin and net income for the Q1 2008 period.
  • 4The restatement will increase Q1 2008 gross margin by approximately $2.5 million and net income by $1.7 million ($0.02 per diluted share).
  • 5The identified errors did not impact reported revenue or cash flows.
  • 6The errors were primarily related to foreign exchange accounting for inter-company profit elimination and a journal entry for manufacturing variances.
  • 7Entegris is assessing the impact of these errors on its internal controls and will provide an update in a subsequent filing.

Frequently Asked Questions

The primary reasons for this 8-K filing are to announce Entegris's second-quarter 2008 financial results and to disclose that the company will be restating its financial statements for the first quarter ended March 29, 2008, due to accounting errors.

The errors resulted in an understatement of gross margin by approximately $2.5 million and net income by $1.7 million, which equates to $0.02 per diluted share for the quarter ended March 29, 2008. Importantly, these errors did not affect revenue or cash flows.

The errors were caused by an incorrect accounting treatment for the impact of foreign exchange on inter-company profit elimination, particularly in a volatile foreign exchange environment, and, to a lesser extent, an incorrect journal entry related to the capitalization of manufacturing variances.

Entegris expects to file an amended Form 10-Q (10-Q/A) on or about August 7, 2008, which will include its restated consolidated financial statements for the quarterly fiscal period ended March 29, 2008.