ATMI Reports Third Quarter Financial Results; Revenues Up 31% Over Q3 2001, But Down 10% Sequentially
PR NEWSWIRE - October 16, 2002 06:01
DANBURY, Conn., Oct 16, 2002 /PRNewswire-FirstCall via COMTEX/ -- ATMI, Inc. (Nasdaq: ATMI), today reported revenues of $52.1 million and, including a previously announced asset impairment charge, a loss of $0.84 per share for the quarter ended September 30, 2002. This compares to the third quarter 2001 loss per share of $0.30, inclusive of certain special charges. Excluding special charges, the third quarter 2002 loss was $0.10 per share, as compared to a $0.21 loss per share in the third quarter of 2001. Revenues increased 31% over the year-ago period, but declined 10% from the second quarter of 2002.
The special charge recognized this quarter was taken to reflect the impaired value of ATMI's gallium arsenide epitaxial services business. The amount of this charge is $34.6 million, or $22.0 million after tax. For the nine-month period ended September 30, 2002, revenues were $158.2 million, and the loss per share was $0.97. Revenues were down 8% compared to $172.0 million in the same period in 2001, when ATMI lost $0.17 per share. Before special items, the loss per share was $0.23 for the first nine months of 2002, as compared to $0.06 profit per share in the first nine months of 2001.
Gene Banucci, ATMI's Chief Executive Officer, said, "The semiconductor industry turned down suddenly during the third quarter, led by double-digit wafer start declines at the major foundries. This rapid change in direction -- along with an apparent channel build-up in our SDS(R) Gas Source product line -- caused a major perturbation in revenues for the quarter. Just as importantly, the wafer start slowdown delivered a jolt to industry expectations, and equipment orders were either pushed out or cancelled at the last minute."
"Given this shift, we rigorously reviewed our product portfolio and cost position. In order to give our gallium arsenide business a better chance to succeed, we have signed a Letter of Intent to contribute those assets to a venture that will be positioned as a global, low-cost producer, with leading-edge technology. We expect to announce details of the venture soon, but with or without this transaction, it is appropriate to reflect the impaired value of the assets now."
Doug Neugold, President, said, "Concurrent with our strategic repositioning, we have made substantial progress in extending our core materials business during the quarter. ATMI is presently well-positioned in several processes, most notably chemical vapor deposition, ion implant, and photolithography strip materials. We expect that electrochemical deposition of copper will be of major importance going forward. ATMI is creating a "process efficiency package" for electrochemical copper process technology that we believe will make us a market leader. In addition to our CuChem(TM) analytical product and NOWPak(R) packaging for electrochemical materials, we purchased Microbar's copper delivery and abatement product lines during the quarter. We also announced a strategic partnership with Metara on third generation analytical tools, and expect to shortly enter the copper electroplating materials market.
Dan Sharkey, Chief Financial Officer, said, "Our Materials segment revenues declined 10% sequentially during the quarter, to $32.5 million. Gross margins were 48% for this segment, compared to 52% last quarter, primarily driven by a negative mix shift from reduced SDS sales. Year-over-year for the quarter, revenues improved 49% from $21.8 million. On a year-to-date basis, the Materials segment revenues are up 11%, to $98.0 million."
"The Technologies segment continues to track the capital equipment marketplace, with few large sales. This segment's gross margins of 20% remain depressed, primarily affected by the results of our epi service businesses. Revenues were $19.5 million, a decline of 9% from the second quarter, yet still 9% above last year's third quarter levels of $17.9 million. For the nine months, revenues in this segment are down 28%, to $60.1 million."
ATMI provides specialty materials, and related equipment and services, to the worldwide semiconductor industry. As the Source of Semiconductor Process Efficiency, ATMI helps customers improve wafer yields and lower operating costs. For more information, please visit atmi.com. |
