MKS Instruments, Inc. 's ( MKSI ) first quarter
2013 earnings of 7 cents per share beat the Zacks Consensus
Estimate of 3 cents by a solid 133.3%. However, earnings of this
company, a leading provider of instruments and solutions to
semiconductor equipment manufacturers, plunged 83.7% year over year
due to a downfall in the semiconductor and associated markets.
MKSI generated revenues of $141.6 million in the first quarter,
declining 25.8% year over year. Revenues came in at the higher end
of the company's guidance of $125.0 million to $145.0 million, led
by sequential improvements in the semiconductor market. Revenues
surpassed the Zacks Consensus Estimate of $135.0 billion by
Revenue from Products decreased 29.1% in the quarter to $116.6
million while revenue from Services decreased 5.1% in the quarter
to $25.0 million.
During the quarter, gross margin was recorded at approximately
38.6%, indicating a decrease of 530 basis points from the year-ago
Selling, general and administrative expenses, as a percentage of
net sales, were recorded at 24.1% compared with 17.9% recorded a
year ago. On the other hand, research & development (R&D)
expenditure, as a percentage of net sales, was 10.8%, up from 8.5%
recorded a year ago.
Operating margin was recorded at 3.7% in the quarter, sinking
from 17.5% in the year-ago comparable quarter.
Balance Sheet/Cash Flow
Exiting the first quarter, MKS' cash and cash equivalents stood
at approximately $266.7 million versus $287.6 million at the end of
fourth quarter of 2012.
Capital expenditure in the quarter was recorded at $3.4 million,
against $4.6 million recorded in the first quarter of 2012.
MKSI acquired the European company, Alter SRL in the quarter for
a total consideration of $2.5 million, along with a debt assumption
Management expects the semiconductor market to revive slowly in
the future followed by other markets. Thus, for second quarter of
2013, MKS' sales are expected to be in the range of $145.0 million
to $165.0 million. Earnings per share are expected to lie within 4
cents to 18 cents in the coming quarter.
Currently, MKSI carries a Zacks Rank #3 (Hold). Other stocks
worth a look in the diversified machinery industry are
Mattson Technology Inc. ( MTSN ), TMS
International Corp. ( TMS ) and
Tessera Technologies Inc. ( TSRA ); each carrying
a Zacks Rank #2 (Buy).MKS INSTRUMENTS (MKSI): Free Stock Analysis
ReportMATTSON TECH (MTSN): Free Stock Analysis ReportTMS INTL CP-A (TMS): Free Stock Analysis ReportTESSERA TEC INC (TSRA): Free Stock Analysis
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