INFICON Announces Second Quarter 2004 Results; Company Reports Record Quarterly Sales of $49.8 Million; Operating Margin Increases to 11.3%
SYRACUSE, N.Y. & ZURICH, Switzerland--(BUSINESS WIRE)--July 21, 2004--INFICON (SWX Swiss Exchange and NASDAQ:IFCN), a leading manufacturer of vacuum instrumentation and process control software for the semiconductor and vacuum-coating industries and other industrial applications, today announced results for the second quarter ended June 30, 2004.
Revenues for the second quarter of 2004 were $49.8 million, compared to $36.2 million for the second quarter of 2003, representing a 37% increase. On a constant dollar basis, revenues grew 33%. Net income for the second quarter of 2004 was $4.1 million ($1.75 per diluted share - $0.18 per ADS) compared to a net loss for the second quarter of 2003 of $1.6 million ($0.67 per diluted share - $0.07 per ADS).
Revenues for the six months ended June 30, 2004 were $97.1 million compared to $75.1 million for the same period in 2003, representing a 29% increase. On a constant dollar basis, revenues grew 24%. Net income for the period was $7.6 million ($3.26 per diluted share - $0.33 per ADS) compared to a net loss of $1.5 million ($0.66 per diluted share - $0.07 per ADS) last year. As of June 30, 2004, the company had $48.0 million in cash and cash equivalents, having generated $12.6 million from operations during the first six months of the year.
Lukas Winkler, president and chief executive officer, commented, "This quarter's record sales reflect increased demand from end-users in the semiconductor and vacuum coating markets, with especially strong sales of in situ metrology products such as FabGuard(R), where we benefited from a significant order from one of our largest customers. We also had continuing strong orders for vacuum control products from data storage OEMs and experienced a resurgence in the refrigeration and air conditioning markets, where demand for INFICON leak detectors for both manufacturing operations and the service sector was high. We were also pleased to see increased international sales of our Environmental Health and Safety products."
"In addition to producing revenue growth for the sixth consecutive quarter, we again improved our operating margin from continuing operations, raising it to 11.3%. This increased operational leverage represents our company's best performance in three years and helped produce a significant increase in cash on our balance sheet, now at a record high for INFICON."
"In the third quarter of 2004, we expect our results to be much improved over the third quarter of 2003, although on a sequential basis, we expect results to be lower than 2004, reflecting normal seasonal buying patterns in certain product lines and rather volatile order flow in our Environmental Health and Safety product lines. Given these patterns, we are forecasting revenues of approximately $47 million, a 25% increase from third quarter of 2003, and net income of approximately $2.3 million ($1.00 per diluted share or $0.10 per ADS) in the third quarter of fiscal 2004."
Semiconductor Vacuum Instrumentation segment revenues were $13.2 million in the second quarter of 2004, compared to $8.1 million in the same quarter of 2003. General Vacuum Instrumentation segment revenues for the second quarter of 2004 were $36.6 million, compared to $28.1 million in the same period last year.
Conference Call Information
INFICON will hold a conference call to discuss its second quarter 2004 results on Wednesday, July 21, 2004 at 10.00 a.m. EDT/4.00 p.m. CET. To access the conference call, please dial +1.706.634.1033 by 9.50 a.m. EDT/3.50 p.m. CET. A live webcast of the conference call will also be available in the Investor Relations section of the INFICON website, www.inficon.com. To access the replay, please dial +1.800.642.1687 (international callers dial +1.706.645.9291), reservation number 8387209. The replay will be available until 11.59 p.m. EDT on July 28/5:59 a.m. CET on July 29.
INFICON is a leading developer, manufacturer and supplier of innovative vacuum 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 and toxic chemical analysis to the air conditioning/refrigeration, emergency response and industrial hygiene markets. Headquartered in Syracuse, New York, INFICON has world-class manufacturing facilities in the United States and Europe and worldwide offices in the U.S., China, France, Germany, Japan, Korea, Liechtenstein, Singapore, Switzerland, Taiwan, and the United Kingdom. For more information about INFICON and its products, please visit the Company's website at 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. Forward-looking statements can be identified by the use of words such as "may", "believe", "will", "expect", "project", "forecast," "assume", "estimate", "anticipate", "plan", "continue", "resumes", "opportunity," "potential", or "guidance". 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 on Form 20-F for fiscal 2003 and the Company's reports on Form 6-K filed with the Securities and Exchange Commission during 2004. 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.