SYRACUSE, N.Y. & ZURICH, Switzerland--(BUSINESS WIRE)--April 26, 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 first quarter ended March 31, 2006.
Revenues for the first quarter of 2006 totaled $48.7 million compared to $50.0 million for the first quarter of 2005, representing a 2.7% decrease. On a constant dollar basis, revenues for the quarter increased 2.3%. Excluding the sales attributable to Electro Dynamics Crystal Corp. (EDC), whose assets INFICON acquired on February 28, 2006, revenues increased 1.2% on a constant dollar basis. Net income increased 23% to $4.8 million, or $2.02 per diluted share, compared to $3.9 million, or $1.67 per diluted share, in the first quarter of 2005. Cash provided by operating activities was $4.7 million compared to cash used of $0.7 million in the same quarter last year.
Lukas Winkler, president and chief executive officer, commented, "Our first quarter results again demonstrate the progress we have made in enhancing our company's business processes and streamlining our structure to improve our operating leverage. Our strategy of providing technology solutions that enable our customers to achieve significant productivity improvements also contributed to our bottom-line results. Although our overall level of sales for the first quarter of 2006 was essentially flat compared to the same period last year, the momentum in our business environment accelerated significantly as the quarter progressed.
"In the semiconductor and vacuum coating markets, demand increased from both end-users and original equipment makers. Sales of INFICON advanced process control software to a U.S. chipmaker also contributed to our solid performance, although these positive trends were tempered by continued weakness in the equipment market for optical data storage and flat panel displays. A highlight of the quarter was our acquisition of EDC, a premier manufacturer and our major supplier of quartz-based products, which are essential for thin film monitoring and control instruments. This provides a significant competitive advantage through supply chain vertical integration which is improving both revenue and profits. The integration of EDC is proceeding quickly and smoothly.
"In the general vacuum processes market, we experienced one of our best quarters ever with broad-based sales of gauges, leak detectors and gas analyzers. Our robust performance reflects improved economic trends in Europe and Asia and well-received new products by our private label partners.
"Reflecting the normal seasonal trends, sales in the refrigeration and air conditioning market began slowly, but activity gradually picked up during the quarter. However, revenue did not reach the record first quarter of the prior year. Late last year, we successfully introduced the Protec P3000 Helium Leak Detector - powered by Wise Technology(TM). It has been quickly adopted by our customers due to innovative performance enhancements resulting from our 'design for high performance and lower cost' program.
"Sales to environmental health and security customers declined from last year's first quarter. While we saw a decrease in activity in the U.S., we are experiencing very positive international penetration. In addition, we see continued diversification in geography, customer type and order mix - an important goal for this product line.
"In sum, our first-quarter performance and business outlook reinforce our confidence that we have the right strategy for INFICON to achieve profitable growth. We remain committed to our goals of increasing the company's operational efficiency, achieving growth - organically and through small acquisitions - and gaining market share by introducing innovative products that offer our customers significant cost advantages. Using this approach, we expect INFICON will deliver revenue growth of 5-10% and an operating margin of approximately 12% for the full year 2006."
The INFICON Board of Directors has proposed a par value repayment of CHF 5.00 per share and a dividend of CHF 5.00 per share for the business year 2005 to be voted on at the Annual General Meeting of Shareholders on May 4, 2006. If approved, the ex-dividend date will be May 9, 2006 and the par value repayment is planned for July 31, 2006.
Conference Call and Visual Presentation: INFICON will hold an earnings teleconference, including presentation slides that will be webcast, on April 26, 2006 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 April 26 through 5:59 a.m. May 3 CET/11:59 p.m. ET on May 2. To access the replay, please dial +1.706.645.9291, conference ID #7694727. 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. 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. INFICON is a publicly listed company, registered with the Swiss Stock Exchange (SWX). 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.