ATMI Inc. (ATMI, Financial) filed Quarterly Report for the period ended 2010-09-30.
Atmi Inc. has a market cap of $496.2 million; its shares were traded at around $15.75 with a P/E ratio of 18.1 and P/S ratio of 2. Atmi Inc. had an annual average earning growth of 28.1% over the past 5 years.ATMI is in the portfolios of Arnold Schneider of Schneider Capital Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Research and development (R&D) expense increased 55.1 percent to $12.9 million in the third quarter of 2010 from $8.3 million in the third quarter of 2009. The increase in R&D spending was caused by increased HPD licensing and maintenance contract costs ($2.4 million), higher employee spending ($1.0 million) driven by higher employee incentives of $0.6 million and increased payroll of $0.3 million, increased depreciation expense ($0.3 million), higher patent spending ($0.2 million), and increased outside services ($0.2 million). In 2010, we are anticipating an $8 million to $10 million increase in research and development spending related to our HPD platform activities, or approximately $3 million per quarter which began in the second quarter and continued into the third quarter.
R&D expense increased 24.1 percent to $35.0 million in the first nine months of 2010 compared to $28.2 million for the first nine months of 2009. The increase in 2010 spending was caused by increased HPD licensing/maintenance ($4.0 million) driven entirely by increased spending in the second and third quarters of 2010, including higher employee related spending ($2.0 million) driven by increased incentives of $1.3 million and higher equity-based compensation of $0.3 million, increased depreciation ($0.6 million), increased consumption of materials/consumables ($0.5 million), higher legal costs ($0.3 million), higher outside services spending ($0.3 million), increased travel ($0.3 million), and maintenance ($0.3 million), partially offset by significantly lower asset impairments ($1.6 million).
Selling, general and administrative (SG&A) expenses increased 32.4 percent to $22.1 million in the third quarter of 2010 from $16.7 million in the third quarter of 2009. The increase in the third quarter of 2010 is the result of increased employee related costs ($4.0 million) which were caused by higher incentives of $2.2 million, increased payroll of $0.7 million, increased 401K employer match costs of $0.4 million and higher equity-based compensation of $0.4 million. Also contributing to the SG&A increase in the third quarter was travel ($0.5 million), outside services ($0.5 million) and legal costs ($0.5 million), partially offset by lower depreciation ($0.4 million).
SG&A increased 8.5 percent to $62.5 million in the first nine months of 2010 from $57.7 million in the first nine months of 2009. The increase for the first nine months of 2010 was due to higher employee costs ($6.7 million) caused by higher incentives of $5.3 million, equity-based compensation of $1.4 million, increased travel and entertainment ($1.3 million), increased legal expenses ($1.0 million), and higher outside services ($1.0 million), partially offset by a reduction to bad debt expense ($1.9 million), increased distributor marketing reimbursements ($1.1 million) and significantly lower asset impairments ($1.9 million). The results in the first nine months of 2009 included $2.3 million of asset impairment charges related primarily to redundant enterprise management software and a $1.4 million charge to increase bad debt expense, due to customer bankruptcies and general economic conditions.
For the nine months ended September 30, 2010, other income (expense), net of $2.3 million was driven by a $2.5 million gain from the sale of a portion of our equity investment in Anji, a $0.5 million gain from the sale of a marketable equity security and the release of notes receivable reserves of $0.4 million, partially offset by losses from investments accounted for by the equity method ($0.9 million). Other income (expense) net, for the nine months ended September 30, 2009 primarily reflected losses from equity-method investments of $0.9 million.
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Atmi Inc. has a market cap of $496.2 million; its shares were traded at around $15.75 with a P/E ratio of 18.1 and P/S ratio of 2. Atmi Inc. had an annual average earning growth of 28.1% over the past 5 years.ATMI is in the portfolios of Arnold Schneider of Schneider Capital Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In the third quarter of 2010, our revenues grew by 30.8 percent compared to the third quarter of 2009, primarily due to improved consumer electronics demand which drove higher wafer starts and increased fab utilization during the third quarter of 2010. The growth in revenues, which was seen in all of our product lines, was the most pronounced for our copper materials, as customers began ramping advanced nodes, and SDS products. On a sequential quarter basis, our revenue improved 4.4 percent. Gross profit margin in the third quarter of 2010 improved to 48.1 percent compared to 45.5 percent in the prior year quarter, driven by stronger unit volumes and favorable product mix. Primarily as a result of the revenue increases on strong demand and a net gain of $2.5 million from the sale of a portion of our investment in Anji, our net income increased to $9.5 million ($0.30 per diluted share) in the third quarter of 2010 compared to a net income of $6.5 million ($0.21 per diluted share) in the third quarter of 2009. In 2010, we are anticipating an $8 million to $10 million increase in research and development spending related to our High-Productivity Development (HPD) platform and activities, or approximately $3 million per quarter. This increase, which began in the second quarter, continued in the third quarter.Research and development (R&D) expense increased 55.1 percent to $12.9 million in the third quarter of 2010 from $8.3 million in the third quarter of 2009. The increase in R&D spending was caused by increased HPD licensing and maintenance contract costs ($2.4 million), higher employee spending ($1.0 million) driven by higher employee incentives of $0.6 million and increased payroll of $0.3 million, increased depreciation expense ($0.3 million), higher patent spending ($0.2 million), and increased outside services ($0.2 million). In 2010, we are anticipating an $8 million to $10 million increase in research and development spending related to our HPD platform activities, or approximately $3 million per quarter which began in the second quarter and continued into the third quarter.
R&D expense increased 24.1 percent to $35.0 million in the first nine months of 2010 compared to $28.2 million for the first nine months of 2009. The increase in 2010 spending was caused by increased HPD licensing/maintenance ($4.0 million) driven entirely by increased spending in the second and third quarters of 2010, including higher employee related spending ($2.0 million) driven by increased incentives of $1.3 million and higher equity-based compensation of $0.3 million, increased depreciation ($0.6 million), increased consumption of materials/consumables ($0.5 million), higher legal costs ($0.3 million), higher outside services spending ($0.3 million), increased travel ($0.3 million), and maintenance ($0.3 million), partially offset by significantly lower asset impairments ($1.6 million).
Selling, general and administrative (SG&A) expenses increased 32.4 percent to $22.1 million in the third quarter of 2010 from $16.7 million in the third quarter of 2009. The increase in the third quarter of 2010 is the result of increased employee related costs ($4.0 million) which were caused by higher incentives of $2.2 million, increased payroll of $0.7 million, increased 401K employer match costs of $0.4 million and higher equity-based compensation of $0.4 million. Also contributing to the SG&A increase in the third quarter was travel ($0.5 million), outside services ($0.5 million) and legal costs ($0.5 million), partially offset by lower depreciation ($0.4 million).
SG&A increased 8.5 percent to $62.5 million in the first nine months of 2010 from $57.7 million in the first nine months of 2009. The increase for the first nine months of 2010 was due to higher employee costs ($6.7 million) caused by higher incentives of $5.3 million, equity-based compensation of $1.4 million, increased travel and entertainment ($1.3 million), increased legal expenses ($1.0 million), and higher outside services ($1.0 million), partially offset by a reduction to bad debt expense ($1.9 million), increased distributor marketing reimbursements ($1.1 million) and significantly lower asset impairments ($1.9 million). The results in the first nine months of 2009 included $2.3 million of asset impairment charges related primarily to redundant enterprise management software and a $1.4 million charge to increase bad debt expense, due to customer bankruptcies and general economic conditions.
For the nine months ended September 30, 2010, other income (expense), net of $2.3 million was driven by a $2.5 million gain from the sale of a portion of our equity investment in Anji, a $0.5 million gain from the sale of a marketable equity security and the release of notes receivable reserves of $0.4 million, partially offset by losses from investments accounted for by the equity method ($0.9 million). Other income (expense) net, for the nine months ended September 30, 2009 primarily reflected losses from equity-method investments of $0.9 million.
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