ATMI REPORTS 2002 ANNUAL AND FOURTH QUARTER RESULTS
DANBURY, CT - February 5, 2003 - ATMI, Inc. (Nasdaq: ATMI), a supplier of materials and services to the
world's leading semiconductor manufacturers, today announced financial
results for its fourth quarter, and for the year, 2002.
Revenues were $54.4 million in the fourth quarter, up 5% sequentially
from the third quarter, and 31% greater than the fourth quarter last year.
The net loss was $1.8 million, compared with the $25.2 million loss in the
third quarter of 2002, which included a special charge of $22.0 million,
after tax, and compared with a $4.6 million loss in the fourth quarter
last year. Loss per fully diluted share was $0.06 in the fourth quarter of
2002, contrasted with a per share loss of $0.84 in the third quarter of
2002, or a loss of $0.10 without the special charge in the third quarter
of 2002, and a loss of $0.15 in the fourth quarter of 2001.
For the year, revenues of $212.6 million were approximately flat
compared to 2001. Including the special charges of approximately $22.0
million, after tax, in the third quarter for a write-down of impaired
assets, the net loss for 2002 was $30.7 million, compared to a $9.7
million loss for 2001, which included special charges of $6.8 million,
after tax. Loss per fully diluted share was $1.03 in 2002, compared with a
loss of $0.33 in 2001. Without the special charges, the net loss for 2002
was $8.7 million, or $0.29 per fully diluted share, compared to a net loss
of $2.9 million, or $0.10 per fully diluted share, in 2001.
Gene Banucci, Chief Executive Officer, said, "It was another
difficult year in the semiconductor industry. However, we believe that the
worst is behind us. We are encouraged that wafer starts were up for 2002
by about 7%. As a result, our Materials business grew in 2002, but ATMI's
overall performance was undercut by the extraordinarily difficult
conditions in our Technologies businesses. This was symptomatic of the
semiconductor equipment industry as a whole, which saw revenues shrink by
approximately 30%. We do not believe 2003 is going to be a big recovery
year for equipment - we see it being relatively flat. However, we believe
wafer starts will continue to grow in 2003, by approximately 7% to 9%.
Therefore, absent unforeseen macroeconomic weakness, we believe 2003
should be a growth year for the industry, and ATMI as well."
Doug Neugold, ATMI President, said, "We spent 2002 making and
managing investments that will keep us on the growth track. In particular,
for advanced interconnect applications, we believe we are well-positioned
with our engineered offerings that include materials, delivery systems,
real-time process analysis, abatement, and comprehensive service. Our new,
state-of-the-art production facility for specialty semiconductor materials
at Post Mountain, outside of Austin, Texas, is now on line. Post Mountain
has been very well received by current and new customers alike because it
expands ATMI's capabilities to produce and analyze the vital
next-generation materials they need. We anticipate great things for Post
Mountain as it ramps to full production. Our investments in new tools,
instruments, and staff - supporting expanded research, development, and
process applications - are yielding results right now. ATMI's investments
in 2002 are strengthening our ability to achieve our goal of becoming the
key materials supplier in next-generation processes."
Dan Sharkey, Chief Financial Officer said, "ATMI's materials-related
products performed comparatively well financially in the fourth quarter.
We saw sequential growth in all of our major wafer start-driven product
lines. Declines in equipment product lines offset some of this growth.
However, we saw relatively flat, but more stable, revenues coming from our
epitaxy, life safety, and ventures businesses."
In the fourth quarter, ATMI's Materials segment, at $36.9 million,
produced 68% of total revenues, with a 51.5% gross profit margin.
Materials' revenues grew by 14% compared with the third quarter of 2002,
and were up 63% from $22.7 million in the fourth quarter of 2001. For the
year, Materials' revenues of $135.0 million improved 22% over last year.
The Technologies segment revenues were $17.5 million in the fourth
quarter, an 11% decline from $19.6 million in the third quarter of 2002,
and a decline of 7% from $18.7 million in the fourth quarter of 2001.
Technologies' gross profit margin was 16.5% for the fourth quarter of
2002. Year-over-year, Technologies' revenues decreased by 24% to $77.6
million, from $102.5 million in 2001, reflecting the decline in the major
driver of this segment, capital spending on fabrication equipment.
Sharkey continued, "For 2002, Materials generated 63% of total
revenues, with a gross margin of 50.5%. Technologies' gross margins for
2002 of 17% were well below long-term targets, based on underutilized
capacity in the epi service business, specific inventory write-downs in
the Emosyn and gallium arsenide epi businesses, and reduced volumes in the
equipment product lines."
"ATMI's stellar contributor for the year was the SDS(r)
sub-atmospheric gas packaging and delivery products. In fact, all our
packaging product lines managed to grow during these two worst years in
industry history, despite the extremely negative market environment. Our
biggest financial drain, the gallium arsenide epi facility, was written
off in the third quarter, as we exited that business and recognized a
$34.6 million pre-tax, $22.0 million after-tax, charge for impaired
assets. The 2002 investment in research and development continued at
comparable dollar levels, equivalent to 14% of revenues. Capital
expenditures during 2002 totaled $40.9 million, the majority for our new
Post Mountain materials manufacturing facility." |
