MKS Instruments Reports Revised Guidance for First Quarter 2009, Reductions in Workforce, Special Charges and Announces First Quarter 2009 Earnings Conference Call
ANDOVER, Mass., April 3 /PRNewswire-FirstCall/ -- MKS Instruments, Inc.
(Nasdaq: MKSI), a global provider of technologies that enable advanced
processes and improve productivity, today announced that it expects that first
quarter revenue and non-GAAP net loss to be near the low end of its guidance.
The Company also expects its GAAP net loss will be below the low end of the
guidance primarily as a result of charges associated with reductions in
workforce and special charges incurred in the quarter.
The Company now expects that revenues will range from $74 million to $76
million, at the low end of its original guidance of $75 million, and expects a
non-GAAP net loss of ($0.41) to ($0.38) per basic share, also at the low end
of its original guidance of ($0.40) per basic share. The Company will take
special charges during the quarter ranging from $6.0 million to $7.5 million,
net of tax, or $0.12 to $0.15 per basic share as detailed below. As a result,
MKS now expects the GAAP results to be a net loss of ($0.57) to ($0.54) per
basic share, as compared to previously announced guidance of a GAAP net loss
of ($0.46) to ($0.31) per basic share.
Included in the estimated GAAP net loss were special charges associated
with reductions in workforce, resulting in a charge in the quarter of
approximately $6.3 million to $7.0 million, and a charge for excess, obsolete
and committed inventory purchases of approximately $11.6 million to $12.3
million caused by the reduced demand for the Company's products. These
charges were partially offset by a first quarter 2009 tax benefit of
approximately $5.4 million as a result of a recently completed federal income
tax audit.
Leo Berlinghieri, Chief Executive Officer and President, said, "As we
previously announced, we implemented a reduction in work force early in the
quarter. However, due to the uncertain effect of the global financial crisis
and its impact on demand from our semiconductor equipment OEM customers and
the other markets we serve, it was necessary to take further actions to reduce
our costs and our headcount during the quarter. We implemented a
restructuring and an additional reduction in workforce at the end of the
quarter, resulting in a combined reduction during the quarter of approximately
600 people, representing approximately 23% of our worldwide headcount. These
reductions were done with consideration to both our ability to grow in diverse
markets and to respond to the demand and innovation requirements from the
semiconductor equipment industry, when the economy begins to recover. As a
result of these actions, we expect annual compensation-related savings of
approximately $40 million."
Management will discuss first quarter financial results and provide a
second quarter outlook on a conference call scheduled for Wednesday, April 22,
2009 at 8:30 a.m. (Eastern Time). Dial-in numbers are 1-800-240-6709 for
domestic callers and 303-262-2140 for international callers. The call will be
broadcast live and available for replay at www.mksinstruments.com. To hear a
telephone replay through April 29, 2009, dial 303-590-3000, pass code
11129318#.
The financial results that exclude certain charges and special items are
not in accordance with Accounting Principles Generally Accepted in the United
States of America (GAAP). MKS' management believes the presentation of
non-GAAP financial measures, which exclude costs associated with acquisitions
and special items, is useful to investors for comparing prior periods and
analyzing ongoing business trends and operating results.
MKS Instruments, Inc. is a global provider of instruments, subsystems and
process control solutions that measure, control, power, monitor and analyze
critical parameters of advanced manufacturing processes to improve process
performance and productivity. Our products are derived from our core
competencies in pressure measurement and control, materials delivery, gas
composition analysis, electrostatic charge management, control and information
technology, power and reactive gas generation, and vacuum technology. Our
primary served markets are manufacturers of capital equipment for
semiconductor devices, and for other thin film applications including flat
panel displays, solar cells, data storage media, and other advanced coatings.
We also leverage our technology in other markets with advanced manufacturing
applications including medical equipment, pharmaceutical manufacturing, energy
generation, and environmental monitoring.
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 Securities
and Exchange Commission, including its most recent Annual Report on Form 10-K,
for a discussion of these and other important risk factors concerning MKS and
its operations. MKS is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE MKS Instruments, Inc.
CONTACT:
Ronald C. Weigner, Vice President, Chief Financial Officer &
Treasurer, +1-978-645-5576
Web Site: http://www.mksinst.com
(MKSI)