MKS Instruments has reported third quarter 2007 financial results. Sales were $181.0 million, down 12 percent from $205.5 million in the third quarter of 2006 and down 11 percent from $204.0 million in the second quarter of 2007. Net income totaled $21.4 million, or $0.37 per diluted share, compared to $27.9 million, or $0.50 per diluted share, in the third quarter of 2006, and $22.5 million, or $0.39 per diluted share, in the second quarter of 2007.
Non-GAAP net earnings, which exclude amortization of acquired intangible assets and special items, totaled $22.0 million, or $0.38 per diluted share, compared to $28.9 million, or $0.52 per diluted share, in the third quarter of 2006, and $25.1 million, or $0.43 per diluted share, in the second quarter of 2007.
The financial results that exclude certain charges and special items are not in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP). MKS' management believes the presentation of non-GAAP financial measures, which exclude costs associated with acquisitions and special items, is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.
Leo Berlinghieri, Chief Executive Officer and President, said: "After we achieved double-digit sales growth year over year in the first half of 2007, our business declined in the third quarter, primarily as a result of the industry-wide slowdown in semiconductor capital equipment spending. Despite lower sales, we delivered stronger than expected financial results. While we are quite optimistic about our long-term growth opportunities, we remain cautious about the near term outlook. Looking ahead to the fourth quarter, we expect sales could range from $165 to $173 million. Net income could range from $0.19 to $0.24 per diluted share on 58 million shares outstanding, and non-GAAP net earnings could range from $0.23 to $0.28 per diluted share."
