8-KEarnings & ResultsRegulation FDExhibits & Filings

ENTEGRIS INC 8-K Report, Financial Results (Feb 18, 2014)

Filed February 18, 2014For Securities:ENTG

Summary

This Form 8-K filing by Entegris, Inc. (ENTG) on February 18, 2014, primarily serves to amend previously reported financial results for the fourth quarter and full year ended December 31, 2013. The company identified an error in its Japan manufacturing subsidiary's inventory valuation due to the incorrect application of an exchange rate, leading to an overstatement of consolidated inventory by $2.5 million as of December 31, 2013. This inventory adjustment resulted in a downward revision of reported financial figures. Specifically, gross profit, net income, and earnings per share (both GAAP and non-GAAP) for the fourth quarter of 2013 and the full year 2013 were reduced. Investors should note the revised net income for Q4 2013 is $20.5 million, or $0.15 per share (a $0.02 decrease), and the revised non-GAAP EPS for the full year 2013 is $0.57 per share (also a $0.02 decrease). The company also reiterates its use of non-GAAP financial measures to provide additional insights into operating performance.

Key Highlights

  • 1Entegris, Inc. filed an 8-K on February 18, 2014, to revise previously issued financial results.
  • 2An inventory valuation error was identified at the company's Japan manufacturing subsidiary.
  • 3The error stemmed from applying an incorrect exchange rate in calculating inventory value.
  • 4Consolidated inventory was reduced by $2.5 million as of December 31, 2013.
  • 5Gross profit and net income for Q4 2013 were reduced by $2.5 million.
  • 6Revised Q4 2013 net income is $20.5 million, or $0.15 per share (down from $0.17).
  • 7Revised full-year 2013 non-GAAP EPS is $0.57 per share (down from $0.59).

Frequently Asked Questions

This 8-K filing is to report a correction to previously announced financial results for the fourth quarter and full year ended December 31, 2013. The company discovered an error in its inventory valuation at its Japan manufacturing subsidiary.

The error occurred because an incorrect exchange rate was used when calculating the value of inventory held by the company's Japan manufacturing subsidiary. This led to an overstatement of the consolidated inventory by $2.5 million as of December 31, 2013.

The $2.5 million overstatement in inventory resulted in a $2.5 million reduction in consolidated gross profit and net income for the fourth quarter of 2013. This also led to a reduction in both GAAP and non-GAAP earnings per share for the quarter and the full year 2013.

For the fourth quarter of 2013, the revised GAAP net income per share is $0.15 (a decrease of $0.02 from the initial report), and the revised non-GAAP net income per share is $0.16 (also a $0.02 decrease). For the full year ended December 31, 2013, the revised non-GAAP earnings per share is $0.57 (a $0.02 decrease).