MKS Instruments Reports Q1 2011 Financial Results

ANDOVER, Mass., April 20, 2011 /PRNewswire/ -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that enable advanced processes and improve productivity, today reports first quarter 2011 financial results.

First Quarter Financial Results

Sales were $231.9 million, up 21% from $192.2 million in the first quarter of 2010 and up 6% from $219.0 million in the fourth quarter of 2010.

First quarter net income was $38.0 million, or $0.73 per diluted share, compared to net income of $29.2 million, or $0.58 per diluted share, in the first quarter of 2010 and $35.9 million, or $0.70 per diluted share, in the fourth quarter of 2010. Also in the first quarter, the board of directors authorized a quarterly cash dividend of $0.15 per share which was paid on March 18th.  

Non-GAAP net earnings, which exclude discontinued operations and special charges, were $38.2 million, or $0.73 per diluted share, compared to $28.9 million, or $0.57 per diluted share, in the first quarter of 2010 and $34.4 million, or $0.67 per diluted share, in the fourth quarter of 2010.

Leo Berlinghieri, Chief Executive Officer and President, said, "We achieved another revenue record in the first quarter, with continued strength in the semiconductor market and significant growth in the other advanced markets we serve. In particular, sales to the solar market nearly doubled from the fourth quarter, to just over $30 million, as we completed delivery of the first quarter plan for the orders we announced receiving from a thin film solar customer in China late last year; sales to all other markets also increased, up 3% sequentially to $66 million.

"Underlying demand for semiconductors has remained strong and our customers continue to invest in both advanced technology and capacity expansion with the expectation that the global economy will continue to recover and grow.  We also believe we will continue to see strength in the other advanced markets we serve.   We estimate that our second quarter sales may range from $220 to $240 million and, at this volume, our non-GAAP net earnings could range from $0.62 to $0.76 per share."

Conference Call Details

Management will discuss first quarter results on a conference call tomorrow at 8:30 a.m. (Eastern Time). Dial-in numbers are 1 (877) 941-2332 for domestic callers and 1 (480) 629-9722 for international callers. The call will be broadcast live and available for replay at www.mksinst.com. To hear a telephone replay through April 28, 2011, dial 1 (303) 590-3030, access code 4425390#.

Use of Non-GAAP Financial Results

The financial results that exclude discontinued operations, costs associated with acquisitions and special items, are not in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP). MKS' management believes the presentation of non-GAAP financial measures, which exclude discontinued operations, costs associated with acquisitions and special items, is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.

About MKS Instruments

MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. Our products are derived from our core competencies in pressure measurement and control, materials delivery, gas composition analysis, control and information technology, power and reactive gas generation, and vacuum technology. Our primary served markets are manufacturers of capital equipment for semiconductor devices, and for other thin film applications including flat panel displays, solar cells, light emitting diodes, data storage media, and other advanced coatings. We also leverage our technology in other markets with advanced manufacturing applications including medical equipment, pharmaceutical manufacturing, energy generation, and environmental monitoring.

Forward-Looking Statements

This release contains projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act regarding MKS' future growth and the future financial performance of MKS.  These projections or statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the projections or other forward-looking statements are the fluctuations in capital spending in the semiconductor industry, fluctuations in net sales to MKS' major customers, potential fluctuations in quarterly results, the challenges, risks and costs involved with integrating the operations of MKS and any acquired companies, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing and sourcing risks, volatility of stock price, international operations, financial risk management, and future growth subject to risks.  Readers are referred to MKS' filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for a discussion of these and other important risk factors concerning MKS and its operations. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE MKS Instruments, Inc.