MKS Instruments: 4Q 2005 net sales up 5% on previous quarter

MKS Instruments, Inc., which provides process control technologies for advanced manufacturing processes including architectural glass, saw its 4Q 2005 net sales rise 5% to USD 129.2 million from USD 1…

MKS Instruments, Inc., which provides process control technologies for advanced manufacturing processes including architectural glass, saw its 4Q 2005 net sales rise 5% to USD 129.2 million from USD 122.5 million in the 3Q of 2005, although they were down 1% from USD 130.9 million in the 4Q of 2004. For calendar year 2005, net sales were USD 509.3 million compared to USD 555.1 million for 2004. Fourth quarter GAAP net earnings rose to USD 12.1 million from USD 7.2 million in the 3Q 2005. Fourth quarter 2004 GAAP net earnings of USD 24.1 million included a USD 16.7 million non-cash adjustment to reverse a valuation allowance against net deferred tax assets. Excluding the adjustment, 4Q 2004 GAAP net earnings were USD 7.4 million. Fourth quarter non-GAAP net earnings, which exclude amortization of acquired intangible assets and special items, rose to USD 12.1 million versus USD 9.2 million for the 3Q of 2005 and USD 11.1 million for the 4Q of 2004. Full year 2005 GAAP net earnings were USD 34.6 million, or USD 0.63 per diluted share, compared to USD 69.8 million, or USD 1.28 per diluted share in 2004. Non-GAAP net earnings for 2005 were USD 39.5 million, or USD 0.72 per share, compared to USD 62.9 million, or USD 1.15 per diluted share, in 2004. Leo Berlinghieri, Chief Executive Officer and President, said, “I am pleased to report that 4Q sales and earnings exceeded our guidance. We saw order momentum from semiconductor OEMs and device manufacturers as the quarter progressed.” Results for the 1Q 2006 will include the effect of two recent acquisitions and stock compensation expense of around USD 0.03 per share related to the adoption of SFAS 123 [R]. Mr. Berlinghieri said, “Our guidance reflects strong demand for our technology and solutions that improve semiconductor process performance and productivity. Based on current customer order patterns, we estimate that 1Q 2006 sales could range from USD 160 to USD 165 million. GAAP net earnings could range from USD 0.17 to USD 0.20 per diluted share on 55 million shares outstanding. Non-GAAP net earnings, which exclude amortization of acquired intangible assets, stock compensation expense, and special items, could range from USD 0.27 to USD 0.30 per share”. MKS Instruments, Inc. is a provider of process control solutions for advanced manufacturing processes such as semiconductor device manufacturing; thin-film manufacturing for flat panel displays, data storage media, architectural glass and electro-optical products; and technology for medical imaging equipment.