Record 4Q Sales of USD 55.8 Million and Net Income of USD 6.9 Million
2006 Net Income Up 42.0% to USD 22.0 Million; Sales Up 10.7% to USD 211.7 Million
Board Authorizes Share Repurchase Program and Proposes Dividend Increase to CHF 6.00 Per Share
SYRACUSE, N.Y. & ZURICH, Switzerland--(BUSINESS WIRE)--Feb. 13, 2007--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 fourth quarter and year ended December 31, 2006.
Revenues for the fourth quarter of 2006 totaled USD 55.8 million compared to USD 47.7 million for the fourth quarter of 2005, representing a 16.9% increase. On a constant dollar basis, revenues for the quarter increased 13.2%. Net income increased 32.8% to USD 6.9 million, or USD 2.89 per diluted share, compared to USD 5.2 million, or USD 2.20 per diluted share, in the fourth quarter of 2005. Cash used in operating activities was USD 1.6 million compared to cash provided of USD 6.5 million in the same quarter last year. This includes voluntary contributions of USD 11.1 million to the Company's pension plans.
Revenues for the full year ended December 31, 2006 were USD 211.7 million, compared to USD 191.3 million for 2005, representing a 10.7% increase. On a constant dollar basis, revenues increased 11.0%. Net income increased 42.0% for the period to USD 22.0 million, or USD 9.30 per diluted share, compared to net income of USD 15.5 million, or USD 6.64 per diluted share, in the previous period. Cash provided by operating activities was USD 21.0 million, compared to cash provided of USD 17.9 million in the prior year.
"INFICON turned in another excellent performance in the fourth quarter and set a revenue record for the year," said Lukas Winkler, president and chief executive officer. "We are pleased with the progress we made throughout 2006 in expanding the Company's sales, growing market share, and increasing profitability.
"In the fourth quarter, sales in the semiconductor and vacuum coating market continued at a strong pace, reflecting robust demand for a wide array of INFICON products, including advanced process control software, in situ sensors, leak detectors and vacuum gauges. Revenue in the general vacuum market, where we serve diverse industries primarily through our private label partners, rose to a record level, with all product lines contributing to our success, and the emergency response and security market rebounded.
"During the year as a whole, the semiconductor and vacuum coating market and the general vacuum market were our highest performers as a result of positive general economic trends and gains in market share. In the refrigeration and air conditioning market, we enjoyed a solid flow of orders for high-end leak detectors from air conditioning, appliance, and automotive manufacturers in the U.S., Asia and Europe. Our user-friendly, low-maintenance Protec P3000 helium leak detector gained many customers for INFICON in the U.S. and Asia. These successes more than offset the effect of lower sales to the emergency response and security market."
Mr. Winkler concluded, "We are optimistic about 2007, and our revenue goal for the year continues at the level we previously announced, now the equivalent of about 10% above 2006 sales, including potential acquisitions. With significant investments in R&D planned, we expect to achieve an operating margin of between 13% and 14%.
"Reflecting our strong financial performance, the INFICON Board of Directors intends to propose an increased annual cash dividend of CHF 6.00 per share for fiscal year 2006 at the Annual General Meeting of Shareholders on April 27, 2007. In addition, the Board has approved a share repurchase program of up to CHF 40 million to be completed over the course of 2007. The repurchase program is further evidence of our confidence in our company's future and continued ability to generate strong cash flow. We will provide further details, including the date on which the repurchase program will begin, through a separate announcement.
"Finally, I would also like to note that Corporate Management is planning to relocate to Switzerland in 2007 to communicate more easily within our global company and with the financial community."
The company will hold a joint Media-Analyst conference in Zurich on February 13, 2007 at 9:00 a.m. CET to discuss its financial results and outlook. The conference, which will take place at the Central Plaza Hotel, Central 1, 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 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. 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. 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.