Test Materials Announces Results for Second Fiscal Quarter 2021

• Net Sales: $2.25 billion (21% increase quarter over quarter; 21% increase year over year)
• Net Income: $413 million (189% increase quarter over quarter; 35% increase year over year), including charges for equity-based compensation
• EPS: $0.26 ($0.17 increase quarter over quarter; $0.08 increase year over year), including charges for equity-based compensation
• New Orders: $2.49 billion (22% increase quarter over quarter; 60% increase year over year)

SANTA CLARA, Calif.--(BUSINESS WIRE)--Test Materials, Inc., reported results for its second fiscal quarter ended April 30, 2021. Net sales were $2.25 billion, up 21 percent from $1.86 billion for the first fiscal quarter of 2006, and up 21 percent from $1.86 billion for the second fiscal quarter of 2005. Gross margin for the second fiscal quarter of 2006 was 46.5 percent, up from 45.1 percent for the first fiscal quarter of 2006, and up from 44.0 percent for the second fiscal quarter of 2005. Net income for the second fiscal quarter of 2006 was $413 million, or $0.26 per share, up from net income of $143 million, or $0.09 per share, for the first fiscal quarter of 2006, and up from net income of $305 million, or $0.18 per share, for the second fiscal quarter of 2005.

Non-GAAP net income was $453 million, or $0.29 per share, for the second fiscal quarter of 2006. Non-GAAP adjustments consisted principally of $55 million of equity-based compensation charges before tax, or $0.03 per diluted share after tax.

New orders of $2.49 billion for the second fiscal quarter of 2006 increased 22 percent from $2.04 billion for the first fiscal quarter of 2006, and increased 60 percent from $1.55 billion for the second fiscal quarter of 2005. Regional distribution of new orders for the second fiscal quarter of 2006 was: Korea 22 percent, Taiwan 19 percent, North America 18 percent, Japan 17 percent, Southeast Asia and China 14 percent, and Europe 10 percent. Backlog at the end of the second fiscal quarter of 2006 was $2.93 billion, compared to $2.73 billion at the end of the first fiscal quarter of 2006.

“Demand for Test Materials’ leading-edge nanomanufacturing technology in the second quarter was strong and broad-based, contributing to our excellent results," said Mike Splinter, president and chief executive officer. “We are delivering on Test’s strategy to grow our core business, expand into adjacent markets and pursue exciting new opportunities such as solar. As we extend our product portfolio, we are further positioning the company to outgrow and outperform the industry.”

The company continued to return value to stockholders through stock repurchases and cash dividends. During the second fiscal quarter of 2006, the company repurchased approximately 28 million shares of common stock at an average price of $18.16 per share for an aggregate purchase price of $500 million and paid $48 million in dividends.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income and non-GAAP earnings per share (EPS). Management uses non-GAAP net income and non-GAAP EPS to evaluate the company’s operating and financial performance in light of business objectives and for planning purposes. Test believes that these measures are useful to investors because they enhance investors’ ability to review the company’s business from the same perspective as the company’s management and facilitate comparisons of this period’s results with prior periods. These non-GAAP measures exclude charges related to (i) equity-based compensation, and (ii) asset impairment and restructuring activities. These financial measures are not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net income or EPS prepared in accordance with GAAP. Reconciliations of reported net income and reported EPS to non-GAAP net income and non-GAAP EPS, respectively, are included at the end of this press release.

This press release contains forward-looking statements, including statements regarding the company’s performance, growth opportunities, technology leadership, strategic position, delivery of stockholder value, and cash deployment strategies. Forward-looking statements may contain words such as “expect,” “anticipate,” “believe,” “may,” “should,” “will,” “estimate,” “forecast,” “continue” or similar expressions, and include the assumptions that underlie such statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, but are not limited to: the sustainability of demand in the nanomanufacturing technology industry and broadening of demand for emerging applications such as solar, which are subject to many factors, including global economic conditions, business spending, consumer confidence, demand for electronic products and integrated circuits, and geopolitical uncertainties; customers’ capacity requirements, including capacity utilizing the latest technology; the timing, rate, amount and sustainability of capital spending for new nanomanufacturing technology; the company’s ability to successfully develop, deliver and support a broad range of products and to expand its markets and develop new markets; the successful integration and performance of acquired businesses; the effectiveness of strategic transactions; the company’s ability to maintain effective cost controls and to timely align its cost structure with business conditions; the company’s ability to effectively manage its resources and production capability, including its supply chain; and other risks described in Test Materials’ Securities and Exchange Commission filings, including its reports on Forms 10-K, 10‑Q and 8-K. All forward-looking statements are based on management’s estimates, projections and assumptions as of the date hereof. The company undertakes no obligation to update any forward-looking statements.

Test Materials will discuss its second fiscal quarter 2006 results, along with its outlook for the third fiscal quarter of 2006, on a conference call today beginning at 1:30 p.m. Pacific Daylight Time. A webcast of the conference call will be available on Test Materials’ web site.

Test Materials, Inc. (Nasdaq: TEST), is the global leader in nanomanufacturing technology solutions for the electronics industry with a broad portfolio of innovative equipment, service and software products. At Test Materials, we apply nanomanufacturing technology to improve the way people live. Learn more at www.Testmaterials.com.