UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | April 26, 2007 |
MKS Instruments, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
| Massachusetts | 000-23621 | 04-2277512 |
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_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 90 Industrial Way, Wilmington, Massachusetts | 01887 | |
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_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
| Registrant’s telephone number, including area code: | 978-284-4000 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On April 26, 2007, MKS Instruments, Inc. announced its financial results for the quarter ended March 31, 2007. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated April 26, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MKS Instruments, Inc. | ||||
| April 26, 2007 | By: |
Ronald C. Weigner
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| Name: Ronald C. Weigner | ||||
| Title: VP & CFO | ||||
Exhibit Index
| Exhibit No. | Description | |
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99.1
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Press Release dated April 26, 2007 |
(MKS LOGO)
EXHIBIT 99.1
Contact: Ronald C. Weigner
Vice President and Chief Financial Officer
Telephone: 978.284.4000
MKS Instruments Reports First Quarter 2007 Financial Results
Record sales on strong demand for process-critical technologies
Wilmington, Mass., April 26, 2007 — MKS Instruments, Inc. (NASDAQ: MKSI), a leading worldwide provider of process control technologies for improving productivity in semiconductor and other advanced manufacturing processes, today reported first quarter 2007 financial results.
MKS reported record quarterly sales of $211.4 million, up 18 percent from $179.1 million in the first quarter of 2006, and up 6 percent from $199.9 million in the fourth quarter of 2006.
Net income increased by 77 percent to $27.3 million, or $0.48 per diluted share, from $15.4 million, or $0.28 per diluted share, in the first quarter of 2006, and by 3 percent from $26.5 million, or $0.47 per diluted share, in the fourth quarter of 2006.
Non-GAAP net earnings, which exclude amortization of acquired intangible assets and special items, increased by 53 percent to $29.9 million, or $0.52 per diluted share, from $19.6 million, or $0.35 per diluted share, in the first quarter of 2006, and by 15 percent from $25.9 million, or $0.46 per diluted share, in the fourth quarter of 2006.
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.
Leo Berlinghieri, Chief Executive Officer and President, said, “After achieving an outstanding 2006, we generated record first quarter sales on strong demand for our process-critical technologies in the semiconductor market, as our customers’ process performance and productivity requirements continued to increase.
“We are focused on leveraging our broad technology portfolio to grow our business in key semiconductor process areas and in attractive, less cyclical non-semiconductor market sectors. Our outlook anticipates variations in customer order patterns across markets. Considering these fluctuations, and given our higher than expected 6 percent sequential growth in the first quarter and the semiconductor industry’s more cautious outlook, we anticipate that second quarter 2007 sales could range from $195 to $205 million. Net income could range from $0.36 to $0.42 per diluted share on approximately 58.0 million shares outstanding. Non-GAAP net earnings could range from $0.41 to $0.47 per diluted share.”
Management will discuss first quarter financial results on a conference call today at 8:30 a.m. (Eastern Time). Dial-in numbers are 1-800-218-4007 for domestic callers and 303-262-2130 for international callers. The call will be broadcast live and available for replay at www.mksinstruments.com. To hear a telephone replay through May 3, 2007, dial 303-590-3000, pass code 11087365#.
MKS Instruments, Inc. is a leading worldwide provider of process control solutions for improving productivity in advanced manufacturing processes such as semiconductor device manufacturing; thin-film manufacturing for flat panel displays, data storage media, architectural glass and electro-optical products; and technology for medical imaging equipment and other markets. Our instruments, components and subsystems incorporate sophisticated technologies to power, measure, control, and monitor increasingly complex gas-related semiconductor manufacturing processes, thereby enhancing our customers’ uptime, yield and throughput, and return on invested capital.
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.
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MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | ||||||||||||
| March 31, 2007 | March 31, 2006 | December 31, 2006 | ||||||||||
Net sales |
$ | 211,432 | $ | 179,061 | $ | 199,895 | ||||||
Cost of sales |
118,570 | 105,316 | 112,638 | |||||||||
Gross profit |
92,862 | 73,745 | 87,257 | |||||||||
Research and development |
18,299 | 16,057 | 18,018 | |||||||||
Selling, general and administrative |
34,576 | 29,765 | 34,621 | |||||||||
Amortization of acquired intangible assets |
4,107 | 5,254 | 4,020 | |||||||||
Purchase of in-process technology |
— | 800 | — | |||||||||
Income from operations |
35,880 | 21,869 | 30,598 | |||||||||
Interest income, net |
3,305 | 1,430 | 2,797 | |||||||||
Income before income taxes |
39,185 | 23,299 | 33,395 | |||||||||
Provision for income taxes |
11,895 | 7,864 | 6,902 | |||||||||
Net income |
$ | 27,290 | $ | 15,435 | $ | 26,493 | ||||||
Net income per share: |
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Basic |
$ | 0.48 | $ | 0.28 | $ | 0.47 | ||||||
Diluted |
$ | 0.48 | $ | 0.28 | $ | 0.47 | ||||||
Weighted average shares outstanding: |
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Basic |
56,354 | 54,660 | 55,914 | |||||||||
Diluted |
57,326 | 55,269 | 56,561 | |||||||||
The following supplemental Non-GAAP earnings
information is presented to aid in
understanding MKS’ operating results: |
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GAAP net income |
$ | 27,290 | $ | 15,435 | $ | 26,493 | ||||||
Adjustments (net of tax, if applicable): |
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Amortization of acquired intangible assets |
4,107 | 5,254 | 4,020 | |||||||||
Purchase of in-process technology |
— | 800 | — | |||||||||
Benefit for income taxes (NOTE 1) |
— | — | (3,129 | ) | ||||||||
Tax effect of adjustments |
(1,514 | ) | (1,905 | ) | (1,481 | ) | ||||||
Non-GAAP net earnings (NOTE 2) |
$ | 29,883 | $ | 19,584 | $ | 25,903 | ||||||
Non-GAAP net earnings per share (NOTE 2) |
$ | 0.52 | $ | 0.35 | $ | 0.46 | ||||||
Weighted average shares outstanding — diluted |
57,326 | 55,269 | 56,561 | |||||||||
NOTE 1: The three month period ended December 31, 2006 includes a net tax benefit of $3,129 attributable to the impact on prior 2006 quarters of the retroactive extension of the R&D tax credit from January 1, 2006 through December 31, 2006 and to a reduction of the valuation allowance on state tax credits.
NOTE 2: The Non-GAAP net earnings and Non-GAAP net earnings 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)
| March 31, 2007 | December 31, 2006 | |||||||
ASSETS |
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Cash and short-term investments |
$ | 313,257 | $ | 289,957 | ||||
Trade accounts receivable |
131,817 | 123,658 | ||||||
Inventories |
157,356 | 149,820 | ||||||
Other current assets |
31,362 | 28,003 | ||||||
Total current assets |
633,792 | 591,438 | ||||||
Property, plant and equipment, net |
78,851 | 79,463 | ||||||
Long-term investments |
2,463 | 2,816 | ||||||
Goodwill |
323,715 | 323,973 | ||||||
Other acquired intangible assets |
40,275 | 43,104 | ||||||
Other assets |
2,608 | 2,926 | ||||||
Total assets |
$ | 1,081,704 | $ | 1,043,720 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Short-term debt |
$ | 22,080 | $ | 23,021 | ||||
Accounts payable |
43,533 | 38,541 | ||||||
Accrued expenses and other liabilities |
57,564 | 58,424 | ||||||
Total current liabilities |
123,177 | 119,986 | ||||||
Long-term debt |
6,037 | 6,113 | ||||||
Other long-term liabilities |
19,794 | 16,402 | ||||||
Stockholders’ equity: |
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Common stock |
113 | 113 | ||||||
Additional paid-in capital |
691,030 | 680,164 | ||||||
Retained earnings |
231,413 | 210,877 | ||||||
Other stockholders’ equity |
10,140 | 10,065 | ||||||
Total stockholders’ equity |
932,696 | 901,219 | ||||||
Total liabilities and stockholders’ equity |
$ | 1,081,704 | $ | 1,043,720 | ||||