ZURICH, Switzerland & SYRACUSE, N.Y.--(BUSINESS WIRE)--Feb. 12, 2008--INFICON (SWX Swiss Exchange: IFCN), a leading, worldwide manufacturer of instrumentation and process control software for advanced industrial vacuum processes, today announced record financial results for the fourth quarter and year ended December 31, 2007.
Revenues for the fourth quarter of 2007 totaled USD 63.4 million compared to USD 55.8 million for the fourth quarter of 2006, representing a 13.7% increase. On a constant dollar basis, revenues for the quarter increased 8.9%. INFICON reported net income of USD 7.3 million, or USD 3.33 per diluted share. These results compared to net income of USD 6.9 million, or USD 2.93 per diluted share, for the fourth quarter of 2006. Cash generated by operating activities was USD 7.3 million compared to cash used of USD 1.6 million in the same quarter last year.
Revenues for the full year ended December 31, 2007 totaled USD 236.6 million compared to USD 211.7 million for 2006, representing an 11.7% increase. On a constant dollar basis, revenues increased 9.0%. Net income for the full year increased 11.2% to USD 24.5 million, or USD 10.59 per diluted share. This compares to net income of USD 22.0 million, or USD 9.30 per diluted share, for the previous year. Cash generated by operating activities was USD 30.2 million compared to USD 21.0 million last year.
"For INFICON, 2007 was another year of record results in sales and net income and good growth in many different markets," said Lukas Winkler, president and chief executive officer. "We are particularly pleased that our business showed strength in multiple product lines and geographic regions, demonstrating the effectiveness of our focus on several highly specialized markets with sustained, high-growth prospects.
"Fueled by dramatic expansion in China, sales to the refrigeration and air conditioning (RAC) market were a stand-out in the fourth quarter and the year as a whole. High-end INFICON refrigerant and multi-gas leak detectors are now widely viewed by RAC manufacturers in China as setting the standard in leak detection for quality control. Demand for our leak detectors also increased significantly in the US, Europe, Japan, and South America. We expect to continue gaining market share around the world in 2008.
"Robust sales to the semiconductor and vacuum coating markets also contributed to this year's strong fourth-quarter and full-year performance. Interest in our Stiletto Scanning-Laser Particle Detector, our whole suite of in situ sensors, and our FabGuard fault detection and analysis software has been growing among both OEMs and end-users. We are pleased with the level of thin film customer sales, which has increased following our acquisition of Maxtek, Inc. in the spring and Sigma Instruments last December.
"In the general vacuum processes market, we experienced solid growth throughout the year, helped by an increase in private label sales and the increasing diversification of our customer base. In the emergency response and security market, sales declined on a year-over-year basis, but were generally in line with our expectations for 2007. The large order for HAPSITES we recently announced from the State Environmental Protection Administration of China will have a positive impact on our 2008 results in this market."
Mr. Winkler continued, "We expect 2008 to be another good year across all our markets with multiple growth opportunities in areas such as the manufacture of photovoltaic solar panels, where we now offer targeted products due to our recent acquisition of Sigma Instruments. We believe our financial performance will also benefit from the innovative, high-quality products we have introduced and the many operational improvements we have made within our organization. Thus, as previously announced, our revenue target for 2008 is in the range of USD 250 - 260 million, with an operating margin in the range of 14.5 - 15.5%."
In line with the Company's financial performance, the INFICON Board of Directors intends to propose an annual cash dividend of CHF 8.00 per share for fiscal year 2007 at the Annual General Meeting of Shareholders on April 24, 2008. This represents an increase of 33% from CHF 6.00 per share for fiscal year 2006.
As previously announced, INFICON completed its 2007 share repurchase program on December 13, 2007, having repurchased a total of 235,587 shares or 10.0% of the registered share capital prior to the program's inception. The Company's Board intends to propose the cancellation of all repurchased shares and corresponding capital reduction at the ordinary Annual General Meeting of Shareholders on April 24, 2008.
INFICON will hold a joint Media-Analyst conference in Zurich on February 12, 2008 at 09:00 a.m. CET to discuss its financial results and outlook. The conference, which will take place at the Sofitel Zurich, Stampfenbachstrasse 60, will be recorded and an archived version will be posted with accompanying visuals in the Investor Relations section of the INFICON website, http://www.inficon.com, later in the day.
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INFICON is a leading, provider of innovative instrumentation, critical sensor technologies, and advanced process control software that enhance productivity and quality in sophisticated industrial vacuum processes. These analysis, measurement and control products are essential for gas leak detection in air conditioning/refrigeration manufacturing and 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. We also leverage our expertise in vacuum technology to provide unique, toxic chemical analysis products for emergency response, security, and environmental monitoring. INFICON has world-class manufacturing facilities in the United States and Europe and subsidiaries in China, France, Germany, Japan, Korea, Liechtenstein, Singapore, Switzerland, Taiwan, the United Kingdom and the United States. 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 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.