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Dec 31, 2022

MKS Q4 2022 Earnings Report

Reported record quarterly revenue and exceeded guidance

Key Takeaways

MKS Instruments reported record quarterly revenue of $1.09 billion, up 42% year-over-year, exceeding the high-end of guidance. Quarterly GAAP net income per diluted share was $0.81 and quarterly Non-GAAP net earnings per diluted share was $2.00, also exceeding the high-end of guidance. The company's manufacturing and service operations are in the recovery phase following a ransomware incident.

Record quarterly revenue of $1.09 billion, up 42% year-over-year, exceeding the high-end of guidance

Quarterly GAAP net income per diluted share of $0.81 and quarterly Non-GAAP net earnings per diluted share of $2.00, exceeding the high-end of guidance

Quarterly GAAP net income of $54 million and quarterly Adjusted EBITDA of $282 million, exceeding the high-end of guidance

Quarterly operating cash flow of $184 million and free cash flow of $130 million

Total Revenue
$1.09B
Previous year: $764M
+42.0%
EPS
$2
Previous year: $3.02
-33.8%
Operating Margin
15%
Previous year: 23.8%
-37.0%
Gross Profit
$485M
Previous year: $355M
+36.8%
Cash and Equivalents
$909M
Previous year: $966M
-5.9%
Free Cash Flow
$130M
Previous year: $171M
-23.9%
Total Assets
$11.5B
Previous year: $4.54B
+153.2%

MKS

MKS

MKS Revenue by Segment

Forward Guidance

The Company anticipates the ransomware incident identified on February 3, 2023 to have a material impact on the Company's first quarter results. The full scope of the costs and related impacts of the incident has not yet been determined. As a result, the Company will not provide its usual first quarter guidance at this time. Prior to the ransomware event, the Company expected revenue in the first quarter of approximately $1 billion. The Company currently estimates the impact from the incident on first quarter revenue to be at least $200 million. The Company expects to resume its normal guidance practice for the second quarter.

Challenges Ahead

  • The ransomware incident identified on February 3, 2023 is anticipated to have a material impact on the Company's first quarter results.
  • The full scope of the costs and related impacts of the incident has not yet been determined.
  • The Company will not provide its usual first quarter guidance at this time.
  • The Company currently estimates the impact from the incident on first quarter revenue to be at least $200 million.