ATMI REPORTS FIRST QUARTER FINANCIAL RESULTS
Revenues Up 23% over 2000 on Strong SDS(r) and Packaging Sales
DANBURY, CT - April 18, 2001 - ATMI, Inc. (Nasdaq: ATMI) today
announced revenues grew 23% to $77.3 million for the first quarter,
compared with $63.0 million for the same period last year. First quarter
net income, before one-time gains, restructuring, and other charges, was
$7.9 million, or $0.26 per share, a 6% decline from $8.4 million, or $0.29
per share a year earlier. Including a net after-tax charge of $4.9 million
in the current quarter, net income was $3.0 million, or $0.10 per share. On
a sequential basis, revenues dropped 11%, from $86.8 million in the fourth
quarter of 2000, and net income - before one-time items - dropped 25% from
$10.8 million, or $0.35 per share.
Gene Banucci, ATMI CEO, said, "We are quite encouraged by several
aspects of our performance during the first quarter of 2001, which will
probably recognized as the first full quarter of this semiconductor
industry downturn. First, our consumable products, like the SDS(r) Gas
Source and our high-purity packaging, held up quite well with record
quarters in both revenues and operating profit. Second, we are encouraged
by our progress in both 300mm and advanced interconnect projects around the
world. We believe that once the marketplace stabilizes, these product lines
will provide extraordinary growth opportunities. Finally, following on our
previously announced initiative, we have begun our restructuring efforts at
ATMI, which has generated early sequential declines in SG&A expense in the
first quarter, but should show more meaningful expense savings in the
coming quarters. We previously indicated we would have to take a net
restructuring charge on the order of $6 million, however with certain
offsetting items, the net charge is $4.9 million."
"Unfortunately, there is no escaping an industry downturn of this
magnitude, whether you are a device manufacturer, equipment supplier, or
materials supplier. We now anticipate the next two quarters will be weaker
than originally forecast. Based on present chip production levels and our
customers' order patterns, we believe that during the second quarter we
will experience another 10-20% revenue decline - some of it from our
consumables products - which should put earnings per share into a
$0.10-$0.16 range for the quarter. Based on the same data, the third
quarter should be relatively flat, with the fourth quarter showing a marked
upturn."
Dan Sharkey, ATMI Chief Financial Officer, said, "Growth in our SDS
Gas Source and our packaging product lines helped to offset some of the
declines in our liquid materials and delivery systems businesses. Even so,
our Materials segment declined 6% sequentially, to $37.2 million. Within
our Technologies segment, stability in our Services businesses helped to
counterbalance the substantial decline in our Systems product lines.
Technologies' revenues of $40.1 million were off 15% from fourth quarter
levels. During the first quarter, we terminated our Emosyn agreement with
Swatch. The termination essentially precludes second quarter revenues, but
longer term will move Emosyn's gross margin and profit profile more towards
those of a standard fabless semiconductor business model."
"Finally, our restructuring is effectively speeding the
rationalization of multiple businesses acquired over the last several
years. We anticipate a net loss of 10% of our employee base as a result.
Our $4.9 million net after-tax charge represents previously announced
restructuring costs, offset by certain one-time gains recognized in the
first quarter." |
