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Sep 30, 2021

MKS Q3 2021 Earnings Report

MKS Instruments reported strong Q3 2021 results driven by semiconductor market growth and advanced markets growth, despite supply chain constraints.

Key Takeaways

MKS Instruments reported Q3 2021 revenue of $742 million, a 26% increase year-over-year. Non-GAAP net earnings were $155 million, up 45% year-over-year, and GAAP net income was $132 million, up 44% year-over-year. The company expects Q4 2021 revenue of $760 million, plus or minus $30 million, and Non-GAAP net earnings per diluted share of $2.85, plus or minus $0.26.

Revenue increased by 26% year-over-year to $742 million.

Semiconductor Market revenue grew by 36% year-over-year.

Non-GAAP net earnings increased by 45% year-over-year to $155 million.

The company anticipates the Atotech acquisition to close by the end of 2021.

Total Revenue
$742M
Previous year: $590M
+25.8%
EPS
$2.79
Previous year: $1.93
+44.6%
Operating Margin
27.1%
Previous year: 19.7%
+37.6%
Gross Profit
$348M
Previous year: $262M
+33.0%
Cash and Equivalents
$633M
Previous year: $493M
+28.4%
Free Cash Flow
$133M
Previous year: $123M
+7.8%
Total Assets
$4.37B
Previous year: $3.75B
+16.4%

MKS

MKS

MKS Revenue by Segment

Forward Guidance

Based on current business levels and certain supply chain constraints and excluding any contribution from Atotech Limited, the Company expects revenue in the fourth quarter of 2021 of $760 million, plus or minus $30 million. At these volumes, the Company expects Non-GAAP net earnings per diluted share of $2.85, plus or minus $0.26.

Positive Outlook

  • Revenue guidance for Q4 2021 is $760 million, plus or minus $30 million.
  • Non-GAAP net earnings per diluted share for Q4 2021 is expected to be $2.85, plus or minus $0.26.
  • The company's strong financial model.
  • The pending acquisition of Atotech is proceeding as planned.
  • The company expects the transaction to close by the end of 2021.

Challenges Ahead

  • Guidance excludes any contribution from Atotech Limited.
  • Guidance is based on current business levels and certain supply chain constraints.
  • Manufacturing and sourcing risks, including supply chain disruptions and component shortages.
  • Fluctuations in capital spending in the semiconductor industry and other advanced manufacturing markets.
  • Challenges, risks and costs involved with integrating the operations of the companies we have acquired.