CHASKA, Minn. Materials and materials supply company Entegris Inc. has reported net income of $8.9 million on sales of $99.5 million in the fourth quarter of its fiscal 2004 year, ended August 28, 2004.
The Q4 income compared with $2.3 million in the prior-year period and $9.2 million in the 2004 third quarter. The sales revenue also climbed from $71.5 million in the fiscal 2003 fourth quarter and $98.6 million in the fiscal 2004 third quarter.
The fourth quarter capped a good fiscal year for the company, the company said but the company is expecting the current quarter's sales to be 10 percent to 15 percent down on the previous quarter due to some push out of wafer fab facilitization due to concerns over rising levels of inventory.
For fiscal 2004, Entegris reported record sales of $346.8 million, up 38 percent from fiscal 2003 sales of $251.1 million. Net income for the year was $24.8 million compared with $1.3 million in fiscal 2003.
This marks Entegris' 38th consecutive year of annual profitability, the company commented. Also, the company ended the year with a record $133 million in cash and short-term investments, achieved by generating $48 million in cash from operations in fiscal 2004.
"As widely reported, market conditions in the semiconductor industry became more tenuous during the latter part of the fiscal 2004 fourth quarter," said Jim Dauwalter, Entegris' president and chief executive officer, in a statement. "Even with the softening of market conditions, we reported fourth-quarter sales within our guidance range. Sales in our semiconductor market were sequentially flat with the third quarter. Our materials-consumption-driven product sales increased in the low single-digit percentage range. Wafer carrier products declined somewhat, offset by strong demand for our fluid handling solutions," he added.
"Currently semiconductor fab utilization rates remain high," Dauwalter said, "Consistent with general conditions in the semiconductor industry, we anticipate sales for our materials-consumption-driven products to remain relatively stable in the first quarter of fiscal 2005. Many OEM and sub-component suppliers to the semiconductor industry have recently announced weakness in the market, a trend confirmed by our customers. Therefore, we believe fiscal 2005 first quarter capital-spending will decline, particularly related to 200-mm or smaller wafer size fabs. We expect sales for our other markets of data storage, life sciences, global services and fuel cell to be flat to slightly up, hinging on broad economic conditions. Based on current market conditions, we anticipate total Entegris sales to decline about 10 to 15 percent from the $99.4 million reported in the fiscal 2004 fourth quarter."