ATMI Reports First Quarter 2006 Financial Results; Revenues Up 16% On Strong Customer Demand.DANBURY Danbury (dăn`bĕr'ē, –bərē), city (1990 pop. 65,585), Fairfield co., SW Conn.; settled 1685, inc. as a city 1889. , Conn. -- ATMI ATMI American Textile Manufacturers Institute ATMI Association for Technology in Music Instruction ATMI Advanced Technology Materials, Inc. ATMI Application-to-Transaction Manager Interface ATMI According to My Information ATMI Atm Interface Unit , Inc. (Nasdaq: ATMI), a supplier of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. materials and high-purity materials handling Materials handling The loading, moving, and unloading of materials. The hundreds of different ways of handling materials are generally classified according to the type of equipment used. and delivery solutions to the world's leading semiconductor manufacturers, today announced revenues of $76.9 million for the first quarter of 2006, representing an increase of 16% from $66.1 million in the first quarter of 2005. Net income for the quarter increased by 23% to $7.4 million, and earnings per share increased to $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus $0.19 per diluted share in the first quarter of 2005. Earnings per share includes share-based compensation expense of $0.05 per diluted share in the first quarter of 2006, compared to $0.01 per diluted share in the first quarter of 2005, reflecting the adoption of FAS 123(R) in 2006. Doug DOUG Dumb Old Utility Guy Neugold, ATMI Chief Executive Officer, said, "Revenue growth was strong in the quarter. The 90-nanometer chip generation is starting to close in on its volume production sweet spot and 65-nanometer chip producers are at the beginning of some very steep production ramps, which bodes well for ATMI. Product development activity level with our key customers at 45-nanometer and 32-nanometer technology generations is also very high. As a result, we are enthusiastic about our growth outlook. Our focus on 'innovation generation' has us in the middle of our customers' increasing demand for new, high performance semiconductor materials Semiconductor materials are insulators at absolute zero temperature that conduct electricity in a limited way at room temperature (see also Semiconductor). The defining property of a semiconductor material is that it can be doped with impurities that alter its electronic properties and materials packaging." Neugold continued, "Start-up Start-up The earliest stage of a new business venture. inefficiencies while ramping a new, high-volume manufacturing line in our packaging operation negatively affected our gross margins in the quarter, more so than we expected; now, in the second quarter, that manufacturing line is rapidly approaching the efficiency levels we originally expected." Dan Sharkey Sharkey may refer to: People
A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. from our continuing revenue growth. Our expectation is that this will result in progressive improvement during 2006 in our profit margins and faster time-to-market for new product innovations. During the second quarter, we estimate revenues in the $77 million-$81 million range, with diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of in the $0.21-$0.25 range." A conference call (800.289.0743) discussing financial results will begin at 11:00 a.m. Eastern time, April 26, 2006. A replay (888.203.1112, passcode 2417163) of the call will be available for 48 hours. An audio webcast of the conference call will be available for 30 days on atmi.com. ATMI provides specialty materials and high-purity materials handling and delivery solutions to the worldwide semiconductor industry. For more information, please visit atmi.com. Statements contained herein that relate to ATMI's future performance, including, without limitation, statements with respect to ATMI's anticipated results of operations or level of business for 2006 or any other future period, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on current expectations only and are subject to certain risks, uncertainties, and assumptions, including, but not limited to, changes in semiconductor industry growth (including, without limitation, wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. starts) or ATMI's markets; competition, problems, or delays developing and commercializing new products; problems or delays in integrating acquired operations and businesses; and other factors described in ATMI's filings with the Securities and Exchange Commission. Such risks and uncertainties may cause actual results to differ materially from those expressed in our forward-looking statements. ATMI undertakes no obligation to update any forward-looking statements.
ATMI, INC.
SUMMARY INCOME STATEMENTS
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------
2006 2005
-------- --------
Revenues $76,936 $66,097
Cost of revenues 40,128 31,913
-------- --------
Gross profit 36,808 34,184
Operating expenses:
Research and development 6,129 5,284
Selling, general & administrative 22,042 19,434
-------- --------
Total operating expenses 28,171 24,718
Operating income 8,637 9,466
Other income (expense), net 2,370 (333)
-------- --------
Income before income taxes 11,007 9,133
Income taxes 3,577 3,082
-------- --------
Net income $7,430 $6,051
======== ========
Diluted earnings per share $0.20 $0.19
Weighted average shares outstanding 37,809 32,004
ATMI, INC.
SCHEDULE OF SHARE-BASED COMPENSATION
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------
2006 (1) 2005 (2)
-------- --------
Cost of revenues $283 --
Research and development 227 --
Selling, general & administrative 2,185 $550
-------- --------
Total share-based compensation expense 2,695 550
-------- --------
Benefit from income taxes 919 192
-------- --------
Net share-based compensation expense $1,776 $358
======== ========
(1) Amounts include amortization expense related to stock options of
$1.5 million, employee stock purchase plan of $0.2 million, and
restricted stock awards of $1.0 million, recorded under FAS
123(R).
(2) Amounts include amortization expense related to restricted stock
awards of $0.6 million, recorded under APB 25.
ATMI, INC.
SUMMARY BALANCE SHEETS
(in thousands)
Balance Sheet Highlights March 31, December
2006 31,
(unaudited) 2005
----------- ---------
Assets
Cash & marketable securities (1) $217,116 $209,851
Accounts receivable, net 48,677 47,125
Inventory, net 43,050 39,850
Other current assets 22,071 21,675
----------- ---------
Total current assets 330,914 318,501
Fixed assets, net 83,566 82,821
Marketable securities, non-current (1) 36,266 46,286
Other assets 51,297 52,228
----------- ---------
Total assets $502,043 $499,836
----------- ---------
Liabilities and stockholders' equity
Accounts payable $12,505 $11,910
Other current liabilities 29,652 32,268
----------- ---------
Total current liabilities 42,157 44,178
Non-current liabilities 2,805 3,460
Stockholders' equity 457,081 452,198
----------- ---------
Total liabilities & stockholders' equity $502,043 $499,836
----------- ---------
(1) Total cash and marketable securities equaled $253.4 million and
$256.1 million at March 31, 2006 and December 31, 2005,
respectively.
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