Financial Performance - For the three months ended March 31, 2024, total net revenues were $868 million, a decrease of $25 million or 3% compared to the prior quarter, but an increase of $74 million or 9% compared to the same period last year [116]. - Semiconductor market revenues were $351 million, down $11 million or 3% from the prior quarter, but up $42 million or 14% year-over-year due to prior year order fulfillment issues related to a ransomware event [119]. - Electronics and packaging market revenues decreased by $18 million or 8% from the prior quarter and by $14 million or 6% year-over-year, primarily due to softness in the consumer electronics market [121]. - Specialty industrial market revenues increased by $4 million or 1% from the prior quarter and by $46 million or 17% year-over-year, mainly due to lower revenue in the prior year period from the ransomware event [126]. - Total net revenues for the three months ended March 31, 2024, were $868 million, a decrease from $893 million in the prior quarter but an increase from $794 million in the same period last year [134]. Profitability Metrics - Gross profit margin improved to 47.8% for the three months ended March 31, 2024, compared to 46.0% in the prior quarter and 42.2% in the same period last year [130]. - Net income for the three months ended March 31, 2024, was 1.7%, a recovery from a net loss of 7.6% in the prior quarter [130]. - The cost of revenues decreased to 52.2% of total net revenues for the three months ended March 31, 2024, down from 54.0% in the prior quarter [130]. - Gross margin as a percentage of net revenues increased to 47.8% for the three months ended March 31, 2024, compared to 46.0% in the prior quarter and 42.2% in the same period last year [137]. Research and Development - Research and development expenses increased to 8.1% of total net revenues for the three months ended March 31, 2024, compared to 7.8% in the prior quarter [130]. - Research and development expenses for the three months ended March 31, 2024, were $70 million, flat compared to the prior quarter and a decrease of $2 million from the same period last year [143]. - The company continues to focus on developing new products to meet evolving customer needs, particularly in semiconductor and electronics markets [145]. - The company expects to continue significant investment in research and development to support market expansion and product advancements [146]. Cash Flow and Investments - Net cash provided by operating activities was $67 million for the three months ended March 31, 2024, resulting from a net income of $15 million [163]. - Net cash used in investing activities was $18 million for the three months ended March 31, 2024, all attributed to capital expenditures [164]. - Net cash used in financing activities was $72 million for the three months ended March 31, 2024, primarily due to net proceeds from Incremental Tranche B Loans [165]. - Cash and cash equivalents and short-term investments totaled $846 million as of March 31, 2024, down from $875 million at the end of 2023 [162]. Debt and Financing - The company entered into a credit agreement providing for a senior secured term loan facility of $5.6 billion and a revolving credit facility of $500 million [167]. - As of March 31, 2024, the outstanding principal of the Term Loan Facility was $4.89 billion with a weighted average interest rate of 7.6% [189]. - The company has the ability to incur additional incremental debt facilities up to $1,011 million or 75% of consolidated EBITDA, plus voluntary prepayments and an unlimited amount subject to leverage ratio tests [182]. - The total net leverage ratio must not exceed 5.25 to 1.00 for fiscal quarters ending December 31, 2023, through September 30, 2024, with an annual step-down of 0.25:1.00 [183]. - As of March 31, 2024, there were no borrowings under the Revolving Facility, which has a maturity date in August 2027 [189]. - The company has lines of credit and financing facilities with Japanese subsidiaries providing for aggregate borrowings of up to $20 million as of March 31, 2024, with no borrowings under these arrangements [190]. - The Credit Agreement contains negative covenants restricting the ability to incur additional indebtedness, pay dividends, and engage in certain transactions [186]. Tax and Other Expenses - The effective tax rate for the three months ended March 31, 2024 was 23.1%, higher than the U.S. statutory tax rate, primarily due to foreign withholding taxes and U.S. base erosion tax [159]. - Interest expense for the three months ended March 31, 2024 was $81 million, compared to $82 million for the same period in 2023, indicating a slight decrease [156]. - Loss on extinguishment of debt for the three months ended March 31, 2024 was $9 million, up from $8 million in the previous quarter [157]. - Other (income) expense, net for the three months ended March 31, 2024 was a loss of $3 million, compared to a gain of $12 million in the previous quarter [158]. Market Risk and Compliance - The company is currently evaluating the impact of new accounting standards on its disclosures, including segment reporting and income tax disclosures [195][196]. - There were no material changes in the company's exposure to market risk from December 31, 2023, to March 31, 2024 [198]. - The company has used derivative instruments for risk management, including foreign exchange forward contracts and interest rate swaps [191]. - As of March 31, 2024, the company was in compliance with all covenants under the Credit Agreement [187].

MKS Instruments (MKSI) reported adjusted earnings of $1.18 per share in first-quarter 2024, up from the year-ago quarter’s earnings of 48 cents. The figure beat the Zacks Consensus Estimate by 57.33%.Revenues of $868 million beat the consensus mark by 0.73% and increased 9.3% year over year.Products revenues (86.9% of total revenues) were $754 million, up 5.9% year over year.Services revenues (13.1% of total revenues) rallied 39% year over year to $114 million. Quarterly UpdateRevenues from the Semiconducto ...

Financial Data and Key Metrics - Q1 2024 revenue was $868 million, exceeding the midpoint of guidance [2] - Adjusted EBITDA was $217 million, representing a 25% margin and exceeding the high end of guidance [2][25] - Net earnings per diluted share were $1.18, exceeding the high end of guidance [2] - Gross margin was 47.8%, exceeding the high end of guidance [62] - Operating margin was 20.2%, exceeding the high end of guidance [5] - Net leverage ratio was 4.3x based on trailing 12 months adjusted EBITDA of $940 million [38] - Free cash flow was $49 million and unlevered free cash flow was $108 million [38] Business Line Data and Key Metrics - Semiconductor market revenue was $351 million, above the high end of guidance and down 3% sequentially [61] - Electronics and packaging market revenue was $208 million, in line with guidance and down 8% sequentially [36] - Specialty industrial market revenue was $309 million, above the midpoint of guidance and up 1% sequentially [24] - Consumables and services revenue comprised 42% of total revenue across all end markets [24] Market Data and Key Metrics - Semiconductor market demand remains muted due to low NAND equipment spending, but inventories are more balanced compared to previous quarters [33] - Electronics and packaging market saw a slight pickup in demand for plating equipment lines driven by AI server demand [21] - Specialty industrial market revenue was slightly better than expected, driven by Life and Health Sciences and research and defense markets [22] Company Strategy and Industry Competition - The company is focused on managing costs while investing in innovation to capitalize on future opportunities [5] - AI is identified as a powerful secular trend driving growth in the industry [8] - The company is well-positioned for the next cyclical upturn due to its differentiated product and technology portfolio [6] - The acquisition of Atotech has contributed significantly to gross and operating margins, with cost synergies exceeding targets [37] Management Commentary on Operating Environment and Future Outlook - The company expects a slow recovery in the semiconductor and electronics and packaging markets in the second half of 2024 [30][40] - Early signs of improvement in memory pricing and demand tied to AI applications are encouraging [58] - The company is prepared to support higher run rates and capacity expansions as needed [68] Other Important Information - The company refinanced its term loan and completed a $50 million voluntary debt prepayment in Q1 [25] - Q2 2024 revenue is expected to be $860 million plus or minus $40 million, with semiconductor revenue expected to be $335 million plus or minus $15 million [64] - Q2 2024 adjusted EBITDA is expected to be $197 million plus or minus $23 million [41] Q&A Session Summary Question: Recovery timing for memory and leading-edge markets [68] - The company expects a slow recovery in the second half of 2024 but is prepared for potential inflections in demand [68] Question: Advanced packaging opportunities and complexity [69][70] - AI is driving demand for more complex substrates, benefiting the company's laser drilling, chemistry, and plating equipment solutions [69][70] Question: Pricing environment and Atotech's impact on margins [72] - Pricing has been strong, with Atotech contributing significantly to gross margins across all divisions [72] Question: NAND inventory burn-down and revenue opportunities [94][95] - NAND inventory burn-down is expected to continue into the second half of 2024, with revenue opportunities tied to node upgrades [94][95] Question: Free cash flow and net leverage [104][106] - The company is focused on deleveraging, with free cash flow and net leverage dependent on profitability and revenue growth [104][106] Question: Services gross margin strength [97][98] - Services gross margins were strong due to favorable product mix, pricing, and reduced cost pressures [97][98]

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MKS Instruments (MKSI) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 57.33%. A quarter ago, it was expected that this maker of analysis and processing equipment for semiconductor companies would post earnings of $0.89 per share when it actually produced earnings of $1.17, delivering ...

EXHIBIT 99.1 MKS Instruments Reports First Quarter 2024 Financial Results Andover, MA, May 8, 2024 -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported first quarter 2024 financial results. "MKS delivered strong results in the first quarter despite a soft end-market demand environment," said John T.C. Lee, President and Chief Executive Officer. "With markets expected to improve later this year, we are in an outstanding position with cri ...

ANDOVER, Mass., May 08, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ:MKSI), a global provider of enabling technologies that transform our world, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.22 per share, payable on June 7, 2024, to shareholders of record as of May 28, 2024. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors. About MKS Instr ...

ANDOVER, Mass., May 06, 2024 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ:MKSI), a global provider of enabling technologies that transform our world, has been recognized as an outstanding supplier by Samsung Electro-Mechanics (SEMCO), a world-class company that develops and produces major electronics components, for the development and trial production of new products with MKS' Atotech team in Korea. "This recognition reflects the strong partnership and deep trust that has been established between MKS ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File number 0-23621 MKS INSTRUMENTS, INC. (Exact Name of Registrant as Specified in Its Charter) Massachusetts 04-22775 ...

Financial Data and Key Metrics Changes - For Q4 2023, the company reported revenue of $893 million, adjusted EBITDA of $218 million, and net earnings per diluted share of $1.17, all exceeding the high end of guidance [1][29][64] - Full year 2023 revenue totaled $3.6 billion, down 19% year-over-year, with adjusted EBITDA of $863 million and net earnings per diluted share of $4.43 [17][33][64] - The fourth quarter operating margin was 20.3%, significantly above guidance due to higher revenue and prudent cost control [41][64] Business Line Data and Key Metrics Changes - Semiconductor revenue for Q4 was $362 million, down 1% sequentially and 28% year-over-year, driven by a decline in global semiconductor capital equipment spending [62][33] - Electronics and Packaging revenue for Q4 was $226 million, reflecting a stable but muted demand environment [5][62] - Specialty Industrial revenue for Q4 was $305 million, down 3% year-over-year, with consumables and services revenue comprising 41% of total revenue [30][33] Market Data and Key Metrics Changes - The Semiconductor market showed better-than-expected demand in certain product categories, but overall demand remained muted due to a downturn in NAND equipment spending [2][4] - The Electronics and Packaging market experienced stable demand, consistent with production volumes in PCs, smartphones, and servers [5][25] - Specialty Industrial market demand remained stable, with expectations for Q1 2024 to align with Q4 levels [35][66] Company Strategy and Development Direction - The company is focused on innovation, cost control, and managing its balance sheet to drive growth and value creation [1][20] - MKS is positioning itself as a critical enabler of advanced electronics, particularly in the semiconductor and packaging markets, with a strong emphasis on R&D for next-generation designs [22][24] - The integration of Atotech is expected to enhance capabilities and provide a higher mix of consumables and services revenue, with targeted cost synergies on track [20][31] Management's Comments on Operating Environment and Future Outlook - Management anticipates a slow recovery in end markets, with the second half of 2024 expected to show improvement [23][51] - The company expects Q1 2024 revenue to decline sequentially due to typical seasonality and muted demand [4][25] - Management expressed confidence in the company's ability to navigate challenges and capitalize on long-term growth opportunities [39][50] Other Important Information - The company exited Q4 with over $1.3 billion in liquidity and successfully refinanced $744 million in secured term loans [42][72] - The company generated operating cash flow of $319 million and free cash flow of $232 million for the year [68] - The company received industry accolades, including being named one of America's most responsible companies for 2024 [37] Q&A Session Summary Question: How should we think about total revenue and guidance for the first quarter? - Management indicated that visibility is limited, but they expect the first half to be consistent with current levels, with potential improvement in the second half [51][74] Question: How does the company view its performance relative to WFE? - Management noted that while WFE is expected to be flat, they believe their performance will align with industry trends, with inventory levels stabilizing [54][78] Question: What is the outlook for the E&P business and laser systems? - Management acknowledged that demand remains muted but noted that improvements in utilization rates could lead to increased CapEx in the future [57][80] Question: Can you provide insights on the PCB part of the business? - Management stated that CapEx for lasers is lumpy, and while smartphone volumes may grow, they do not expect significant immediate demand for PCB drilling equipment [79][80] Question: What is the outlook for cash flow stability? - Management expressed optimism about cash flow becoming more robust as revenues pick up, despite Q1 typically having lower free cash flow due to timing of compensation payments [85][96]