BILLERICA, Mass.–(BUSINESS WIRE)–Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s first quarter ended March 30, 2024.
Bertrand Loy, Entegris’ president and chief executive officer, said: “We are pleased with our positive start to the year. Sales of $771 million were at the high end of our guidance. Adjusted EBITDA and non-GAAP EPS were above our guidance, even while we increased critical R&D investments. During the quarter, we sold the Pipeline and Industrial Materials (PIM) business, completing all our planned divestitures of non-core assets. Using the PIM sale proceeds and cash on hand, we paid down over $400 million of debt during the quarter.”
Mr. Loy added: “For 2024, our view of the semiconductor industry has not changed. We believe that the market is healthier, with normalizing inventories of semiconductors and a more stable demand environment. We continue to expect a gradual market recovery throughout the year. In addition, we expect Entegris will continue to outgrow the market and show leverage in our model.”
“We remain very optimistic about the long-term growth prospects for the semiconductor industry and Entegris,” he said. “The industry is entering a period of unprecedented technology change and device complexity. Our core competencies in materials science and materials purity, coupled with our unique ability to co-optimize solutions that shorten time to yield, have become increasingly critical for our customers. All of this means the market is moving toward Entegris, translating into rapidly expanding content per wafer and strong outperformance for us for years to come.”
Quarterly Financial Results Summary
(in thousands, except percentages and per share data)
|
GAAP Results |
Mar 30, 2024 |
Apr 1, 2023 |
Dec 31, 2023 |
|
Net sales |
$771,025 |
$922,396 |
$812,291 |
|
Gross margin – as a % of net sales |
45.6% |
43.5% |
42.4% |
|
Operating margin – as a % of net sales |
15.3% |
1.5% |
12.4% |
|
Net income (loss) |
$45,266 |
($88,166) |
$37,977 |
|
Diluted earnings (loss) per common share |
$0.30 |
($0.59) |
$0.25 |
|
|
|
|
|
|
Non-GAAP Results |
Mar 30, 2024 |
Apr 1, 2023 |
Dec 31, 2023 |
|
Adjusted gross margin – as a % of net sales |
45.6% |
44.3% |
42.4% |
|
Adjusted operating margin – as a % of net sales |
23.1% |
22.2% |
20.7% |
|
Adjusted EBITDA – as a % of net sales |
29.0% |
27.3% |
26.0% |
|
Diluted non-GAAP earnings per common share |
$0.68 |
$0.65 |
$0.65 |
Second-Quarter Outlook
For the Company’s guidance for the second quarter ending June 29, 2024, the Company expects sales of $790 million to $810 million. The midpoint of this guidance range represents an 8.5% sequential increase, excluding the impact of divestitures. GAAP net income of $64 million to $71 million and diluted earnings per common share is expected to be between $0.42 and $0.47. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.68 to $0.73, reflecting net income on a non-GAAP basis in the range of $103 million to $110 million. The Company also expects adjusted EBITDA of approximately 28% of sales.
Segment Results
The Company operates in three segments:
Materials Solutions (MS): MS provides materials-based solutions, such as chemical mechanical planarization slurries and pads, deposition materials, process chemistries and gases, formulated cleans, etchants and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership.
Microcontamination Control (MC): MC offers advanced filtration solutions that improve customers’ yield, device reliability and cost; by filtering and purifying critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.
Advanced Materials Handling (AMH): AMH develops solutions that improve customers’ yields by protecting critical materials during manufacturing, transportation, and storage; including products that monitor, protect, transport and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor, life sciences and other high-technology industries.
About Entegris
Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com.
