looka a little light, but seems to be holding up--maybe we have seen the bottom
ATMI Reports Third Quarter Financial Results; Semiconductor Industry Slowdown Reduces Revenues and Profits
DANBURY, Conn.--(BUSINESS WIRE)--Oct. 21, 1998--ATMI, Inc.
(Nasdaq:ATMI), today announced financial results for its third
quarter, ending September 30th.
These results have been restated to reflect the acquisition of
NOW Technologies through a pooling-of-interests transaction which
closed in August 1998. Revenues for the quarter were $21.7 million,
down 11% sequentially from $24.5 million in the second quarter of
1998. Excluding one-time charges, net income was $1.1 million, $0.05
per share, down from $1.7 million, $.07 per share, last quarter.
For the nine months ended September 30th, revenues were $76.8
million, as compared to $85.1 million last year, a decline of 10%.
Excluding one-time charges, net income decreased 30% to $7.4 million,
from $10.6 million a year ago. Earnings per share were $0.34, down 35%
from EPS of $0.52 for the nine months in 1997. Including one-time
charges, EPS for the quarter and nine months ended September 30th were
$(0.05) and $0.23, respectively.
Gene Banucci, ATMI CEO, said, "ATMI tracks two primary
semiconductor industry indicators - semiconductor unit volume, which
drives our materials business, and capacity expansions, which drive
our equipment business. There is no capacity expansion activity to
speak of now, thus our EcoSys semiconductor environmental equipment
business is off approximately 50% year to year - and accounted for
nearly 65% of ATMI's overall revenue decline in the quarter.
"Although there were some bright spots in semiconductor unit
demand during the quarter, overall demand seems to be flat with the
second quarter. In general, our materials businesses responded
accordingly, with the exception of our SDS(TM) Gas Source product line
that declined 29%, accounting for the remainder of the Company's
overall sequential revenue decline. However, we expect SDS Gas Source
revenue growth to resume, since customer inventory levels appear low,
and SDS Gas Source market share versus conventional technologies is
expanding. In addition, customers' enthusiasm for SDS Gas Source
products for chemical vapor deposition (CVD) and bulk gas delivery
continues to grow."
Dan Sharkey, ATMI CFO, said, "We are pleased to have closed the
acquisition of NOW Technologies during the quarter, adding another
business focused on semiconductor consumables into the ATMI family.
The current quarter's results include a previously announced $3
million one-time charge. This charge represents the costs to complete
the NOW acquisition, along with restructuring costs within our EcoSys
business, and an increase in general business reserves, deemed
necessary by the weakened industry environment."
ATMI provides products and services for semiconductor device
manufacture, including thin film materials and delivery systems
marketed through ADCS, environmental equipment marketed through
EcoSys, thin film deposition services marketed through Epitronics,
sub-atmospheric gas delivery systems marketed through NovaSource, and
high-purity materials packaging systems marketed through NOW. |
