MKS Instruments, Inc. Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the First Quarter of 2016
January 28, 2016 at 03:00 am IST
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MKS Instruments, Inc. announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2015. For the quarter, the company reported total net revenues of $172,387,000, income from operations of $22,205,000, income from operations before income taxes of $23,046,000 and net income of $25,522,000 or $0.48 per basic and diluted share compared to the total net revenues of $203,021,000, income from operations of $38,554,000, income from operations before income taxes of $38,945,000 and net income of $34,192,000 or $0.64 per basic and diluted share for the same quarter a year ago. Non-GAAP net earnings were $18,377,000 or $0.34 per share compared to the $29,052,000 or $0.54 per share for the same quarter year ago. Non-GAAP income from operations was $24,891,000 compared to the $40,779,000 for the same quarter year ago. Total revenue was down 18% from the third quarter and down 15% from the same quarter a year ago, primarily as a result of an industry-wide slowdown in capital spending, which occurred during the quarter.
For the year, the company reported total net revenues of $813,524,000, income from operations of $156,612,000, income from operations before income taxes of $159,468,000 and net income of $122,297,000 or $2.28 per diluted share compared to the total net revenues of $780,869,000, income from operations of $135,142,000, income from operations before income taxes of $136,393,000 and net income of $115,778,000 or $2.16 per diluted share for the previous year. Non-GAAP net earnings were $119,073,000 or $2.22 per share compared to the $101,179,000 or $1.89 per share for the previous year. Non-GAAP income from operations was $163,870,000 compared to the $145,229,000 for the previous year. In 2015, free cash flow was approximately $125 million, up more than 40% from 2014.
Based on current business levels, the company expects that sales in the first quarter of 2016 may range from $165 to $185 million, and at these volumes, non-GAAP net earnings could range from $0.25 to $0.38 per share and GAAP net income could range from $0.23 to $0.36 per share, GAAP net income could range from $12.4 million to $19 million and non-GAAP net income could range from $13.6 million to $20.2 million. The net interest income is estimated to be approximately $600,000. The company expects first quarter income tax rate to be approximately 28%, reflecting projected geographical mix of taxable income and also includes the effect of a U.S. research and development credit, which was reinstated in the fourth quarter of 2015.
MKS Instruments, Inc. is engaged in delivering technology solutions. The Company's segments include Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Materials Solutions Division (MSD). The VSD segment delivers technology solutions to edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment provides a range of instruments, components, and subsystems to semiconductor manufacturing, electronics and packaging and specialty industrial applications. The MSD segment develops process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing.
MKS Instruments, Inc. Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the First Quarter of 2016