ATMI REPORTS FOURTH QUARTER AND YEAR 2000 RESULTS
Revenues Up 46% for Quarter and 48% for the Year
DANBURY, CT -- February 7, 2001 -- ATMI, Inc. (Nasdaq: ATMI), a
supplier of materials and services to the world's leading semiconductor
manufacturers, today announced higher revenue and income for the fourth
quarter ended December 31, 2000, compared with the same quarter in 1999.
Fourth quarter revenues rose 46% to $86.8 million compared with $59.4
million for the same period a year earlier. Fourth quarter net income was
$10.6 million, or $0.35 per share, a 54% increase compared with net income
of $6.9 million, or $0.24 per share a year earlier. This comparison does
not include a one-time charge in the fourth quarter of 1999.
For the full year, revenues rose 48% to $300.0 million compared with
$202.5 million for fiscal 1999. Net income, excluding one-time gains or
expenses, increased 105% to $40.0 million, or $1.32 per share, compared
with $19.5 million, or $0.68 per share, in the period a year earlier.
Including one-time items, net income for the year increased almost
four-fold to $43.7 million, or $1.44 per share, compared with $10.8
million, or $0.38 per share, for 1999.
"We posted outstanding results for 2000 with revenues up nearly 50%
and net income more than doubled," said Gene Banucci, Chief Executive
Officer. "However, earnings in the fourth quarter were hurt by higher SG&A
costs and a decline in gross margins from the third quarter. The lower
gross margins were due in part to the rapid growth of the Company's Emosyn
smart-card venture, whose margins are well below those for ATMI's other
businesses. Other contributors included expenses associated with the
pre-startup phase of the Company's new III-V epi facility. We expect that
their dampening effect on overall gross margins will continue."
"Contributors to the increase in our SG&A (selling, general, and
administrative) costs included the accelerated implementation of a new
worldwide enterprise system, intellectual property litigation-related legal
expenses, and the continuing integration of acquired facilities," Banucci
said. "Nonetheless, in this rapidly changing business environment, we know
our overall SG&A expense level is unacceptable and we are determined to
change that situation. Consequently, we are planning on restructuring
certain company operations to reduce costs. An estimated $8-10 million
pre-tax charge will likely be taken during the first quarter, for which we
expect payback within 18 months."
Looking ahead, Banucci said, "We have long indicated our belief that
ATMI should grow at twice the rate of wafer starts, which we believe will
be about 5% this year. Based on this assumption, we expect to grow
approximately 10% overall, even in this difficult operating environment.
Our 'Materials Lifecycle Solution' strategy -- in which ATMI provides a
full suite of materials-related products, including thin film materials,
packaging, delivery systems, sensing and environmental control -- seems to
be gaining strong momentum among our customers. However, given our current
projection of a 20% reduction in spending among our capital equipment
customers, we expect profits to be under pressure throughout the year.
Furthermore, we expect most of the equipment slowdown to be felt in the
first half of the year, with overall revenues anticipated to drop
sequentially by 10-15% in the first quarter, followed by a flat second
quarter, after which growth is expected to resume. Based on these revenue
projections and our targeted cost reduction initiatives, we believe
earnings estimates in the $0.24-0.30/share range, exclusive of one-time
charges or gains, are appropriate for each of the first two quarters at
this time."
Dan Sharkey, ATMI Chief Financial Officer, said, "During the fourth
quarter, our Materials segment grew almost 12% sequentially, to $39.6
million fueled primarily by growth in our SDS(r) Gas Source product line as
recently installed implanters began consuming our product. We have seen
continued strength in our Materials segment moving into 2001. The product
lines within our Technologies segment showed revenue growth to $47.3
million, 9% above third quarter levels, with Emosyn revenue growth making
up for the flatness in our Systems product lines. We expect the Systems
business to continue to soften, as we are experiencing push-outs and
cancellations by certain Systems customers."
"With an industry downturn staring us in the face, we think it's the
right time to rapidly accelerate our infrastructure cost reduction
efforts," Sharkey said. "In the last downturn, we aggressively added
products, customers, and sales territories through targeted acquisitions
and R&D. In this downturn, to complement our cost reduction activities, we
again expect to demonstrate ATMI's ability to improve its market share
across its product lines."
ATMI provides specialty materials, and related equipment systems and
services for the worldwide semiconductor industry. Related equipment
includes delivery, treatment, monitoring, and analytical process monitoring
systems. Services include material management, equipment servicing, and
thin film wafer deposition. |
