Inficon has announced financial results for the fourth quarter and year ended December 31, 2006. Revenues for the fourth quarter of 2006 totaled USD 55.8 million compared to USD 47.7 million for the fourth quarter of 2005, representing a 16.9 percent increase. On a constant dollar basis, revenues for the quarter increased 13.2 percent. Net income increased 32.8 percent to USD 6.9 million, or USD 2.89 per diluted share, compared to USD 5.2 million, or USD 2.20 per diluted share, in the fourth quarter of 2005. Cash used in operating activities was USD 1.6 million compared to cash provided of USD 6.5 million in the same quarter last year. This includes voluntary contributions of USD 11.1 million to the Company's pension plans.
Revenues for the full year ended December 31, 2006 were USD 211.7 million, compared to USD 191.3 million for 2005, representing a 10.7 percent increase. On a constant dollar basis, revenues increased 11.0 percent. Net income increased 42.0 percent for the period to USD 22.0 million, or USD 9.30 per diluted share, compared to net income of USD 15.5 million, or USD 6.64 per diluted share, in the previous period. Cash provided by operating activities was USD 21.0 million, compared to cash provided of USD 17.9 million in the prior year.
"INFICON turned in another excellent performance in the fourth quarter and set a revenue record for the year," said Lukas Winkler, president and chief executive officer. "We are pleased with the progress we made throughout 2006 in expanding the Company's sales, growing market share, and increasing profitability.
"In the fourth quarter, sales in the semiconductor and vacuum coating market continued at a strong pace, reflecting robust demand for a wide array of Inficon products, including advanced process control software, in situ sensors, leak detectors and vacuum gauges. Revenue in the general vacuum market, where we serve diverse industries primarily through our private label partners, rose to a record level, with all product lines contributing to our success, and the emergency response and security market rebounded.
"During the year as a whole, the semiconductor and vacuum coating market and the general vacuum market were our highest performers as a result of positive general economic trends and gains in market share. In the refrigeration and air conditioning market, we enjoyed a solid flow of orders for high-end leak detectors from air conditioning, appliance, and automotive manufacturers in the US, Asia and Europe. Our user-friendly, low-maintenance Protec P3000 helium leak detector gained many customers for Inficon in the US and Asia. These successes more than offset the effect of lower sales to the emergency response and security market."
Mr. Winkler concluded: "We are optimistic about 2007, and our revenue goal for the year continues at the level we previously announced, now the equivalent of about 10 percent above 2006 sales, including potential acquisitions. With significant investments in R&D planned, we expect to achieve an operating margin of between 13 percent and 14 percent.
"Reflecting our strong financial performance, the Inficon Board of Directors intends to propose an increased annual cash dividend of CHF 6.00 per share for fiscal year 2006 at the Annual General Meeting of Shareholders on April 27, 2007. In addition, the Board has approved a share repurchase program of up to CHF 40 million to be completed over the course of 2007. The repurchase program is further evidence of our confidence in our company's future and continued ability to generate strong cash flow. We will provide further details, including the date on which the repurchase program will begin, through a separate announcement.
"Finally, I would also like to note that Corporate Management is planning to relocate to Switzerland in 2007 to communicate more easily within our global company and with the financial community."
