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Sep 30, 2023

MKS Q3 2023 Earnings Report

MKS Instruments reported strong profitability despite muted demand, exceeding guidance for Non-GAAP gross and operating margins.

Key Takeaways

MKS Instruments reported Q3 2023 financial results with revenue of $932 million, in-line with guidance. The company achieved strong profitability through disciplined cost management and favorable product mix, exceeding the high-end of guidance for Non-GAAP gross and operating margins.

Revenue of $932 million, in-line with the midpoint of guidance.

GAAP gross margin of 45.7% and Non-GAAP gross margin of 47.1%, above the high-end of guidance.

GAAP operating margin of 12.6% and Non-GAAP operating margin of 21.8%, above the high-end of guidance.

GAAP net income per diluted share of $0.58 and Non-GAAP net earnings per diluted share of $1.46, above the high-end of guidance.

Total Revenue
$932M
Previous year: $954M
-2.3%
EPS
$1.46
Previous year: $2.74
-46.7%
Operating Margin
12.6%
Previous year: 25.1%
-49.8%
Gross Profit
$426M
Previous year: $390M
+9.2%
Cash and Equivalents
$859M
Previous year: $884M
-2.8%
Free Cash Flow
$142M
Previous year: $173M
-17.9%
Total Assets
$9.14B
Previous year: $11.4B
-19.6%

MKS

MKS

MKS Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, the Company expects revenue of $840 million, plus or minus $40 million, Adjusted EBITDA of $185 million, plus or minus $20 million, and Non-GAAP net earnings per diluted share of $0.85, plus or minus $0.27.