| Entegris Inc., which supplies products used to process and make semiconductors, said Thursday it swung to a third-quarter profit, but the company issued disappointing guidance, sending shares down in premarket trading. Net income for the third quarter rose to $17.8 million, or 13 cents per share, from a loss of $18 million, or 16 cents per share, a year ago. The latest period includes various merger-related and other restructuring charges, as well as 2 cents per share in stock options costs. Excluding these, income was 16 cents per share. Sales from continuing operations climbed 41 percent to $171.3 million from $121.3 million a year ago. The company said unit-driven sales, which accounted for 61 percent of the total, were about even sequentially, while capital-driven sales, or 39 percent of total sales, declined as expected from a particularly strong second quarter. The company said gross margin suffered primarily because of isolated manufacturing inefficiencies at a North American facility as well as lower production levels. According to Thomson Financial, analysts expected the company to earn 17 cents per share on revenue of $177.5 million. Looking ahead to the fourth quarter, Entegris expects to earn 11 cents to 14 cents per share, excluding items, or 9 cents to 12 cents per share including items. Sales are pegged between $155 million and $163 million. The estimates fell short of the average analyst estimate of 17 cents per share and sales of $178.9 million. In premarket trading, shares of Entegris fell 5.3 percent, or 57 cents, to $10.22. |
