MKS Instruments Reports Q3 2009 Financial Results
ANDOVER, Mass., Oct. 22 /PRNewswire-FirstCall/ -- MKS Instruments, Inc. (Nasdaq: MKSI), a global provider of technologies that enable advanced processes and improve productivity, today reported third quarter 2009 financial results.
Sales were
Third quarter net loss was
Non-GAAP net earnings, which exclude amortization of acquired intangible assets and special items, totaled
Management will discuss third quarter financial results on a conference call today at
The financial results that exclude certain charges and special items are not in accordance with Accounting Principles Generally Accepted in
This release contains projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act regarding MKS' future growth and the future financial performance of MKS. These projections or statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the projections or other forward-looking statements are the fluctuations in capital spending in the semiconductor industry, fluctuations in net sales to MKS' major customers, potential fluctuations in quarterly results, the challenges, risks and costs involved with integrating the operations of MKS and any acquired companies, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing and sourcing risks, volatility of stock price, international operations, financial risk management, and future growth subject to risks. Readers are referred to MKS' filings with the
MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
------------------
September 30, September 30, June 30,
2009 2008 2009
---- ---- ----
Net sales $106,262 $157,364 $79,155
Cost of sales 66,783 94,425 53,627
------ ------ ------
Gross profit 39,479 62,939 25,528
Research and development 12,114 19,228 12,285
Selling, general and
administrative 24,385 33,760 25,909
Amortization of acquired
intangible assets 871 1,963 1,011
Goodwill and asset impairment
charges - - 208,497
Restructuring 168 - 68
----- ----- ------
Income (loss) from operations 1,941 7,988 (222,242)
Gain on investments - 506 -
Interest income, net 263 1,326 213
--- ----- ---
Income (loss) before income taxes 2,204 9,820 (222,029)
Provision (benefit) for
income taxes 6,177 3,029 (14,895)
----- ----- -------
Net income(loss) $(3,973) $6,791 $(207,134)
======= ====== =========
Net income (loss) per share:
Basic $(0.08) $0.14 $(4.20)
Diluted $(0.08) $0.14 $(4.20)
Weighted average shares outstanding:
Basic 49,461 48,730 49,307
Diluted 50,298 49,898 49,307
The following supplemental Non-GAAP earnings information is presented
to aid in understanding MKS' operating results:
GAAP net income (loss) $(3,973) $6,791 $(207,134)
Adjustments (net of tax, if applicable):
Amortization of acquired
intangible assets 871 1,963 1,011
Restructuring and related
items (Note 1) 168 - 68
Goodwill and asset impairment
charges (Note 2) - - 208,497
Expense for income taxes
(Note 3) - 819 -
Proforma tax adjustments 4,497 (709) (11,629)
----- ---- -------
Non-GAAP net earnings (loss)
(Note 4) $1,563 $8,864 $(9,187)
====== ====== =======
Non-GAAP net earnings (loss)
per share (Note 4) $0.03 $0.18 $(0.19)
===== ===== ======
Weighted average shares
outstanding - diluted 50,298 49,898 49,307
Note 1 : The three month periods ended September 30, 2009 and June 30,
2009 include $168 and $68 , respectively, of restructuring charges
primarily for severance related costs.
Note 2 : The three month period ended June 30, 2009 includes a $208,497
write-down for the impairment of goodwill, intangible assets and other
long-lived assets.
Note 3: The three month period ended September 30, 2008 includes a net
tax expense for discrete items of $819 attributable to the booking of a
valuation allowance on state tax credits of $2,651 partially offset by a
benefit of $1,832 for discrete items related to the reversal of FIN 48
reserve items as a result of a statute of limitations expiration.
Note 4 : The Non-GAAP net earnings (loss) and Non-GAAP net earnings (loss)
per share amounts exclude amortization of acquired intangible assets,
acquisition and disposition related charges and special items, net of
applicable income taxes.
MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Nine Months Ended
September 30,
-------------
2009 2008
---- ----
Net sales $262,136 $521,814
Cost of sales 186,780 306,480
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Gross profit 75,356 215,334
Research and development 39,862 59,263
Selling, general and administrative 78,516 100,282
Amortization of acquired intangible assets 3,535 7,052
Goodwill and asset impairment charges 208,497 -
Restructuring 5,856 -
----- -----
Income (loss)from operations (260,910) 48,737
Impairment of investments - (906)
Interest income, net 1,485 5,138
----- -----
Income (loss) before income taxes (259,425) 52,969
Provision (benefit) for income taxes (31,819) 16,562
------- ------
Net income(loss) $(227,606) $36,407
========= =======
Net income (loss) per share:
Basic $(4.62) $0.73
Diluted $(4.56) $0.71
Weighted average shares outstanding:
Basic 49,254 50,051
Diluted 49,942 51,112
The following supplemental Non-GAAP earnings information is presented to
aid in understanding MKS' operating results:
GAAP net income (loss) $(227,606) $36,407
Adjustments (net of tax, if applicable):
Amortization of acquired intangible assets 3,535 7,052
Excess & obsolete inventory adjustment (Note 1) 12,900 -
Restructuring and related items (Note 2) 4,558 -
Goodwill and asset impairment charges (Note 3) 208,497 -
Foreign exchange gain from legal entity
restructuring
(Note 4) - (2,669)
Expense (benefit) for income taxes (Note 5) (6,370) 819
Proforma tax adjustments (14,179) (1,630)
------- ------
Non-GAAP net earnings (loss)(Note 6) $(18,665) $39,979
======== =======
Non-GAAP net earnings (loss) per share (Note 6) $(0.37) $0.78
Weighted average shares outstanding - diluted 49,942 51,112
Note 1 : Cost of Sales for the nine month period ended September 30, 2009
includes $12,900 of special charges for excess, obsolete and committed
inventory purchases.
Note 2 : The nine month period ended September 30, 2009 includes $5,856
of restructuring charges primarily for severance related costs offset by
a credit of $1,298 for the reversal of previously expensed equity
compensation charges of terminated employees.
Note 3 : The nine month period ended September 30, 2009 includes a
$208,497 write-down for the impairment of goodwill, intangible assets and
other long-lived assets.
Note 4 : Selling, general and administrative expenses for the nine month
period ended September 30, 2008 includes a foreign exchange gain of $2,669
related to the Company's legal entity restructuring of certain foreign
operations.
Note 5 : The nine month period ended September 30, 2009 includes a benefit
of $6,370 attributable to the reversal of FIN 48 reserve items as a result
of a Federal audit close. The nine month period ended September 30, 2008
includes a net tax expense for discrete items of $819 attributable to the
booking of a valuation allowance on state tax credits of $2,651 partially
offset by a benefit of $1,832 for discrete items related to the reversal
of FIN 48 reserve items as a result of a statute of limitations
expiration.
Note 6 : The Non-GAAP net earnings (loss) and Non-GAAP net earnings (loss)
per share amounts exclude amortization of acquired intangible assets,
acquisition and disposition related charges and special items, net of
applicable income taxes.
MKS Instruments, Inc.
Unaudited Consolidated Balance Sheet
(In thousands)
September 30, December 31,
2009 2008
---- ----
ASSETS
Cash and short-term investments $265,218 $278,869
Trade accounts receivable 72,166 85,350
Inventories 116,156 131,519
Other current assets 63,013 32,990
------- -------
Total current assets 516,553 528,728
Property, plant and equipment, net 70,193 82,017
Goodwill 144,511 337,765
Other acquired intangible assets 5,835 21,069
Other assets 13,333 15,360
------- -------
Total assets $750,425 $984,939
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LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt $10,563 $18,678
Accounts payable 22,148 19,320
Accrued expenses and other liabilities 31,805 37,937
------ ------
Total current liabilities 64,516 75,935
Long-term debt 118 396
Other long-term liabilities 18,704 21,910
Stockholders' equity:
Common stock 113 113
Additional paid-in capital 642,987 637,938
Retained earnings 13,822 241,428
Other stockholders' equity 10,165 7,219
------ -----
Total stockholders' equity 667,087 886,698
------- -------
Total liabilities and stockholders'
equity $750,425 $984,939
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SOURCE
Ronald C. Weigner, Vice President, Chief Financial Officer & Treasurer of MKS Instruments, Inc., +1-978-645-5576