MKS Instruments posts sharply lower earnings

MKS Instruments Inc., an Andover company that makes control and measurement products for the semiconductor industry, posted sharply lower second-quarter profit today and projected third-quarter earnings below analyst estimates, sending its shares into a tailspin.

For the three months ended June 13, net income sank 59 percent to $9.2 million, or 18 cents per share, from $22.5 million, or 39 cents per share, during the same period last year.

Excluding amortization of acquired intangible assets and special items, MKS Instruments' second-quarter earnings plunged to $10.5 million, or 21 cents per share, from $25.1 million, or 43 cents per share, in the year-ago period.

Quarterly sales dropped 16 percent to $171 million from $204 million.

Analysts polled by Thomson Financial, on average, predicted earnings of 25 cents per share on sales of $175 million. Those estimates often exclude special items.

"After a strong first quarter with double-digit sequential growth in the semiconductor market, we saw sharply lower demand in the second quarter as this market weakened," Leo Berlinghieri, the company's president and chief executive, said in a statement.

"However, our solar business continued to ramp, and sales to non-semiconductor markets grew by 17 percent to 45 percent of sales," he said.

In the third quarter, the company expects some incremental weakness in semiconductor capital equipment spending, he said.

Berlinghieri predicted that third-quarter profit could range from 9 cents to 16 cents per share on sales of $155 million to $165 million. Excluding special items, profit could range from 12 cents to 19 cents per share, he said.

Analysts expect third-quarter income of 25 cents per share.

Shares of MKS Instruments dropped $4.46, or 18.3 percent, to $19.94 in midday trading on the Nasdaq Stock Market. The stock has ranged from $15.90 to $26.98 over the past year. (AP)