Financial Performance - Quarterly revenue reached $896 million, at the high end of guidance[1] - GAAP net income was $62 million, with net income per share of $0.92[1] - Adjusted EBITDA for the quarter was $232 million, exceeding the high-end of guidance[1] - Total net revenues for Q3 2024 reached $896 million, a 1% increase from $887 million in Q2 2024, but a 4% decrease from $932 million in Q3 2023[11] - Net income for Q3 2024 was $62 million, compared to $23 million in Q2 2024 and a loss of $1,772 million in Q3 2023[11] - Net income for the three months ended September 30, 2024, was $62 million, compared to $39 million for the same period in 2023, representing a 59% increase[13] - Non-GAAP net earnings for the three months ended September 30, 2024, were $116 million, compared to $98 million in the same period last year, reflecting an 18.4% increase[14] - Adjusted EBITDA for the three months ended September 30, 2024, was $232 million, compared to $228 million for the same period last year, indicating a 1.8% increase[15] Cash and Liquidity - Cash and cash equivalents stood at $861 million as of September 30, 2024[8] - Cash and cash equivalents as of September 30, 2024, were $861 million, slightly down from $875 million at the end of 2023[12] - Net cash provided by operating activities was $163 million for the three months ended September 30, 2024, up from $122 million in the previous quarter, indicating a 33.6% increase[14] - Free cash flow for the three months ended September 30, 2024, was $141 million, compared to $96 million in the previous quarter, showing a 47% increase[14] - Total cash and cash equivalents at the end of the period were $861 million, compared to $859 million at the end of the previous quarter, indicating a slight increase[13] Expenses and Costs - Research and development expenses increased to $70 million in Q3 2024 from $66 million in Q2 2024, indicating continued investment in innovation[11] - Operating expenses for the three months ended September 30, 2024, were $304 million, up from $292 million for the same period last year, marking a 4.1% increase[15] - The company incurred $3 million in acquisition and integration costs during the three months ended September 30, 2024[14] - Acquisition and integration costs related to the Atotech acquisition amounted to $6 million[20] - Restructuring and other costs primarily due to severance from global cost-saving initiatives totaled $6 million[20] - A ransomware incident incurred costs of $14 million, primarily for third-party consulting and cybersecurity enhancements[21] Debt and Equity - The company made a voluntary principal prepayment of $216 million in October 2024[1] - Long-term debt increased to $4,758 million as of September 30, 2024, compared to $4,696 million at the end of 2023[12] - Total stockholders' equity decreased to $2,398 million as of September 30, 2024, from $2,472 million at the end of 2023[12] - The company recorded a loss on extinguishment of debt of $5 million for the three months ended September 30, 2024, down from $38 million in the previous quarter[14] - The company recorded a loss on extinguishment of debt of $52 million during the period[18] Profitability Metrics - Gross margin improved to 48.2% in Q3 2024, compared to 45.7% in Q3 2023[7] - Non-GAAP diluted earnings per share was $1.72, up from $1.46 in Q3 2023[7] - Non-GAAP gross margin improved to 48.2% for the three months ended September 30, 2024, compared to 47.3% for the same period in 2023[15] - Non-GAAP income from operations was $195 million for the three months ended September 30, 2024, compared to $192 million for the same period last year, reflecting a 1.6% increase[15] - The company reported a non-GAAP operating margin of 21.8% for the three months ended September 30, 2024, compared to 21.7% for the same period last year[15] Strategic Focus - The integration of Atotech Limited is a key strategic focus for future growth opportunities[9] - The company is focused on maintaining strong profit margins and generating healthy cash flow[1] Impairments and Adjustments - The company experienced a goodwill and intangible asset impairment of $1.827 billion in the previous year, which is a significant factor in the overall financial performance[14] - Goodwill and intangible asset impairments reached $1.827 billion, attributed to softer industry demand in the personal computer and smartphone markets[21] - Non-GAAP adjustments included a tax effect of $69 million, resulting in a difference between GAAP and Non-GAAP tax rates[18] - The effective tax rate for non-GAAP income was 15.1% for the nine months ended September 30, 2024, compared to 20.5% for the same period in 2023[16] - The company recorded an excess and obsolescence inventory charge of $13 million related to a discontinued product line[18] Future Outlook - For Q4 2024, the company expects revenue of $910 million, plus or minus $40 million[2]

Quarterly revenue of $896 million, at the high end of guidance Quarterly GAAP net income of $62 million and net income per share of $0.92Quarterly Adjusted EBITDA of $232 million and Non-GAAP net earnings per diluted share of $1.72, exceeding the high-end of guidance ANDOVER, Mass., Nov. 06, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported third quarter 2024 financial results. “MKS delivered a strong third quar ...

ANDOVER, Mass., United States and KUALA LUMPUR, Malaysia, Oct. 24, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that transform the world, the Malaysian Investment Development Authority (MIDA) and InvestPenang today announced that MKS celebrated the groundbreaking ceremony of its super center factory in Penang, Malaysia to support the growing needs of semiconductor equipment for wafer fabrication in the region and globally. The state-of-the-art facility wil ...

ANDOVER, Mass., Oct. 14, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today announced that the Company will release third quarter 2024 financial results after market close on Wednesday, November 6, 2024. A conference call with management will be held on Thursday, November 7, 2024 at 8:30 a.m. (Eastern Time). A live and archived webcast of the call will be available on the company's website at https://investor.mks.com/. To ...

Investors interested in Electronics - Manufacturing Machinery stocks are likely familiar with MKS Instruments (MKSI) and Entegris (ENTG) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings e ...

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A month has gone by since the last earnings report for MKS Instruments (MKSI) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is MKS Instruments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. MKS Instruments Q2 Earnings Top Estimates, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-23621 MKS INSTRUMENTS, INC. (Exact name of registrant as specified in its charter) Massachusetts 04-2277512 (State or other jurisdict ...

Financial Data and Key Metrics Changes - MKS reported revenue of $887 million for Q2 2024, up 2% sequentially and at the high end of guidance, with EPS of $1.53, exceeding guidance [4][16] - Gross margin was 47.3%, reflecting strong financial execution and cost control, although it was down sequentially due to product mix and startup costs [18][21] - Operating income was $192 million, yielding an operating margin of 21.7%, above guidance [19] Business Line Data and Key Metrics Changes - Semiconductor revenue increased 5% sequentially to $369 million, driven by in-quarter demand conversion [16][24] - Electronics & Packaging revenue was $229 million, up 10% quarter-over-quarter, led by seasonal strength in chemistry and higher equipment sales [16][24] - Specialty Industrial market revenue decreased about 7% sequentially to $289 million, reflecting softness in vacuum and photonics products [12][17] Market Data and Key Metrics Changes - In the semiconductor market, early signs of improvement were noted, particularly in DRAM and Logic/Foundry segments [7][8] - Electronics & Packaging demand is primarily driven by investments in AI servers, although overall demand remains muted in PCs and smartphones [10][11] - Specialty Industrial market is stable but can be lumpy due to various end markets served [13][37] Company Strategy and Development Direction - MKS is focused on leveraging its proprietary product portfolio to gain market share, particularly in semiconductor and advanced packaging markets [6][15] - The company is investing in world-class optics to enhance its capabilities in lithography, metrology, and inspection applications [9][32] - MKS aims to drive profitable growth and improved cash generation while managing costs effectively [14][19] Management's Comments on Operating Environment and Future Outlook - Management noted muted market demand but expressed confidence in the company's positioning for future recovery [6][24] - The outlook for Q3 2024 anticipates revenue of $870 million, reflecting a continued slow path to market recovery [23][24] - Management expects second-half revenue to be relatively in line with first-half levels, indicating a cautious approach to market conditions [24][49] Other Important Information - The company closed the quarter with over $1.5 billion in liquidity, including cash and undrawn credit facilities [21][22] - MKS executed a $1.4 billion convertible note offering, which is expected to save over $75 million in annualized cash interest [20][22] Q&A Session Summary Question: Can you talk about the gross margin improvement? - Management indicated that gross margin reflects the proprietary nature of products and a favorable product mix, with some headwinds in specific divisions [26] Question: Are you seeing indications of NAND spending picking up? - Management noted that NAND spending seems to be delayed, and the market is still at the bottom [27] Question: How do you reconcile strong customer growth with muted trends? - Management explained that shorter lead times limit visibility, and in-quarter demand conversions are more unpredictable [30] Question: Can you provide more details on the strategic photonics win? - Management highlighted that this win is part of a multiyear strategy and is expected to contribute to growth as production ramps up [31] Question: How is the specialty industrial business trending? - Management views the specialty industrial market as stable but noted that it can be lumpy due to various sub-segments [36][37] Question: What is the outlook for the Electronics & Packaging business related to AI? - Management confirmed ongoing momentum in AI-related demand, although it still represents a small portion of the overall market [38] Question: What are the drivers behind the E&P performance in Q2? - Management stated that chemistry sales were the primary driver of the uptick in E&P performance [41] Question: How does new equipment sales impact consumables? - Management explained that consumables revenue is significantly lower than equipment sales but can provide long-term revenue opportunities [55]

MKS Instruments (MKSI) reported adjusted earnings of $1.53 per share in second-quarter 2024, up from the year-ago quarter's earnings of $1.32 per share. The figure beat the Zacks Consensus Estimate by 50%. Revenues of $887 million beat the consensus mark by 2.73% but declined 11.6% year over year. Products revenues (86.8% of total revenues) were $770 million, down 13% year over year. Services revenues (13.2% of total revenues) dropped 0.8% year over year to $117 million. Quarterly Update Revenues from the S ...