INFICON Announces Second Quarter 2006 Results; Revenues Reach Record High in Second Quarter; Net Income Increases to $4.5 Million; Company Honored with Top Product Innovation Award
SYRACUSE, N.Y. & ZURICH, Switzerland--(BUSINESS WIRE)--July 18, 2006--INFICON (SWX Swiss Exchange: IFCN), a leading manufacturer of instrumentation and process control software for the semiconductor and vacuum-coating industries and other industrial applications, today announced financial results for the second quarter ended June 30, 2006.
Revenues for the second quarter of 2006 totaled $52.8 million compared to $48.0 million for the second quarter of 2005, representing a 9.9% increase. On a constant dollar basis, revenues for the quarter increased 10.9%. Excluding the sales attributable to Electro Dynamics Crystal Corp. (EDC), whose assets INFICON acquired on February 28, 2006, revenues increased 7.7% on a constant dollar basis. Net income increased 37.7% to $4.5 million, or $1.89 per diluted share, compared to $3.3 million, or $1.39 per diluted share, in the second quarter of 2005. Cash provided by operating activities was $4.8 million compared to cash provided of $4.2 million in the same quarter last year.
Revenues for the six months ended June 30, 2006 were $101.5 million compared to $98.1 million for the same period in 2005, representing a 3.5% increase. On a constant dollar basis, revenues increased 6.7%. Excluding the sales attributable to EDC, revenues increased 4.6% on a constant dollar basis. Net income for the period was $9.3 million, or $3.91 per diluted share, compared to net income of $7.2 million, or $3.07 per diluted share, the previous year.
Lukas Winkler, president and chief executive officer, commented, "INFICON is on track to meet our goals for 2006. We are pleased with our sales growth for the period, which produced a record quarter performance, and with the increased operating leverage our company is achieving. Our bottom-line results have been enhanced by the many initiatives we have implemented to optimize the alignment of our resources, simplify our organization, and design our products for lower cost.
"In the semiconductor and vacuum coating market, sales to both end-users and original equipment makers were strong. We are pleased that our FabGuard Sensor Integration and Analysis System continues to gain market share, and that end-users, especially memory chip makers, are increasingly using FabGuard to achieve process improvements and cost advantages through its ability to provide real-time, on-line diagnosis of tool performance.
"Last week at SEMICON West, we introduced two new innovative products that address the productivity issues in semiconductor manufacturing, including the newest in INFICON vacuum gauges, expanding the ceramic capacitance diaphragm product line that incorporates our patented ceramic technology. We also introduced a new test chamber for reliable, automated leak testing of airtight sealed parts like IC packages, quartz crystals and laser diodes.
"During the quarter, we successfully completed the integration of EDC, a premier manufacturer of quartz-based products that are essential for thin film monitoring and control instruments. As expected, the acquisition was accretive to earnings.
"We experienced another solid quarter in the general vacuum processes market with sales of vacuum gauges, leak detectors and gas analyzers. Our continued robust performance was due to the successful adoption by our private label partners of new products combined with favorable economic conditions in Europe.
"Sales to the refrigeration and air conditioning market reached record levels, driven by increased demand by manufacturing companies in all geographic areas for our high-end leak detection instruments. The newly introduced Protec P3000 Helium Leak Detector - powered by our innovative Wise Technology(TM) for demanding production environments - continued to be well-received by our customers. We were gratified to learn recently that the Protec P3000 has been honored with a prestigious R&D 100 Award, presented annually by R&D Magazine to recognize the 100 most technologically significant new products and processes of the year.
"Sales to environmental health and security customers declined from last year's second quarter due to decreased activity in the U.S. However, we continue to expand international sales and are responding to diverse growth opportunities for the HAPSITE Chemical Identification System, including product development for new applications."
INFICON will reduce its share capital from CHF 10.00 to 5.00 per share by a par value repayment of CHF 5.00 per share on July 31, 2006. Through this par value repayment, combined with the gross dividend of CHF 5.00 distributed on May 9, 2006, INFICON shareholders will have received a gross total of CHF 10.00 for each INFICON registered share this year.
Conference Call and Visual Presentation: INFICON will hold an earnings teleconference, including presentation slides, that will be webcast on July 18 at 4:00 p.m. Central European Summer Time/10:00 a.m. Eastern Daylight Time. To access the teleconference, please dial +1.706.634.1033. The audio and visual webcast will be available in the Investor Relations section of the INFICON website. Please visit www.inficon.com where our presentation will be available 20 minutes prior to the teleconference and webcast.
A replay of the teleconference will be available from 7:00 p.m. CET/1:00 p.m. ET on July 18 through 5:59 a.m. July 26 CET/11:59 p.m. ET on July 25. To access the replay, please dial +1.706.645.9291, conference ID #1930314. The webcast will be archived on the INFICON website.
Email Alerts: The latest financial information from INFICON can automatically be sent via Email Alert; sign up is available in the Investor Relations section of the INFICON website.
INFICON is a leading developer, manufacturer and supplier of innovative instrumentation, critical sensor technologies, and advanced process control software for the semiconductor and vacuum-coating industries and other industrial applications. These analysis, measurement and control products are vital to original equipment manufacturers (OEMs) and end-users in the complex manufacturing of semiconductors, flat panel displays, magnetic and optical storage media and precision optics. INFICON also provides essential instrumentation for gas leak detection to the air conditioning/refrigeration industries and toxic chemical analysis for the emergency response and security markets. With executive offices in Syracuse, New York, INFICON has world-class manufacturing facilities in the United States and Europe and subsidiaries in the U.S., China, France, Germany, Japan, Korea, Liechtenstein, Singapore, Switzerland, Taiwan, and the United Kingdom. INFICON registered shares (IFCN) are listed on the SWX Swiss Stock Exchange. For more information about INFICON and its products, please visit www.inficon.com.
This press release and oral statements or other written statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements address, among other things, our strategic objectives, trends in vacuum technology and in the industries that employ vacuum instrumentation, such as the semiconductor and related industries and the anticipated effects of these trends on our business. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. Some of these risks and uncertainties are discussed in the company's Annual Report for fiscal 2005. As a consequence, our current and anticipated plans and our future prospects, results of operations and financial condition may differ from those expressed in any forward-looking statements made by or on behalf of our company. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.