MKS achieved a record net income of $954 million in the third quarter

On November 2, MKS Instruments, an American semiconductor equipment manufacturer, announced its financial results for the third quarter of 2022. The latest financial report shows that its Q3 revenue in 2022 reached a record $954 million. Net profit decreased from US $132 million (US $2.38 per share) in the same period of last year to US $6 million (US $0.09 per share); The gross profit margin is 40.8%. Non GAAP earnings per share were $2.74, compared with $2.79 in the same period last year.

(Photo source: MKS Instruments financial report)

Income of each business segment
In the third quarter of 2022, the revenue of each business segment of MKS Instruments is as follows:
- Net revenue of semiconductor market is 541 million dollars;
- The net income of the advanced electronic market is 185 million dollars;
- The net income of special industrial market was 173 million dollars.

In the above business segments, the advanced electronic terminal market represents the revenue from PCB, solar energy, display and electronic component applications. Special industrial end markets represent revenues from industrial, life and health sciences, research and defense applications. In addition, the semiconductor terminal market of MKS remains unchanged.

Senior comments
For the business and performance of MKS Instruments in this quarter, President and CEO John T.C. Lee commented: "Based on the strong demand of the market for vacuum and photonic solutions, we achieved strong results in the third quarter. Although the demand from the semiconductor and advanced electronics markets is expected to weaken in the fourth quarter and 2023, we believe that MKS will continue to change with its market leading position in the key technologies of advanced equipment manufacturing, its successful operating record, and our important revenue base for consumables and services And even stronger than when we entered this market. "

He added: "The third quarter also marked a significant progress for MKS in its long-term strategy, as we completed the acquisition of Atotech Limited. Atotech expanded the value and capabilities of MKS by further consolidating its leadership in key chemical solutions for advanced electronics and special industrial applications. We are very pleased to welcome more than 4000 new employees to join the family of MKS."

Seth H. Bagshaw, Senior Vice President and Chief Financial Officer of MKS Instruments, said: "Our revenue exceeded the midpoint of our guidance range, and it was the non GAAP operating profit margin that increased by 100 basis points in a row. This performance proved our record of prudent cost management. At the end of the third quarter, our net leverage ratio was 3.3. We have a long history of rapidly repaying debt after each major acquisition, and we will focus on doing so again in the next few quarters."

Latest personnel appointment
On November 1, MKS Instruments announced that Henry C. Chang had joined MKS as Senior Vice President and General Manager of Asia, effective from November 1. Chang previously served as President of Alcon China, and served in Danaher Corporation, Thermo Fisher Scientific, 3M and other companies. During his tenure at MKS, Chang will lead the sales organizations of the Vacuum Solutions Department and Photon Solutions Department in the Asia Pacific region, and be responsible for the relevant functional organizations in the Asia Pacific region.

Q4 Outlook
Since the beginning of this year, the share price of MKS Instruments has fallen by about 52.1%. As of September 30, 2022, the Company had $885 million in cash and short-term investments, $5.2 billion in outstanding principal of secured term loans, and up to $500 million in additional borrowing capacity under the revolving credit facility. In the third quarter of 2022, the Company paid a cash dividend of $12 million ($0.22 per diluted share).

According to the current business level, regulatory environment and some supply chain restrictions, the company is expected to generate revenue of $1 billion (± $50 million) in the fourth quarter of 2022, and the diluted net profit per share of non GAAP is expected to be $1.34 (± $0.27).

Source: OFweek