INFICON achieves solid full year 2008 results despite slow-down in fourth quarter

Fourth quarter sales affected by global slow-down The worldwide slow-down reached several of the company’s target markets: Sales for the fourth quarter of 2008 totaled USD 55.7 million, down 12.2% from USD 63.4 million recorded in the same quarter of 2007. Excluding a negative effect of foreign currency translation of 1.4% and a sales contribution of 0.9% related to the December 2007 acquisition of Sigma Instruments, quarterly sales decreased organically by 11.7%. Income from operations totaled USD 6.3 million, a decrease of 26.4% compared with USD 8.5 million in the 2007 fourth quarter. Net income for the 2008 fourth quarter decreased 47.3% to USD 4.0 million compared with USD 7.5 million recorded in the prior year period. On a per diluted share basis, net income fell 46.5% to USD 1.84 compared with USD 3.44 in last year’s fourth quarter.

“Sales to General Vacuum customers lost some momentum in the fourth quarter while sales to the Emergency Response & Safety market actually rose over last year’s same period. However, sales in both the Semiconductor & Vacuum Coating and the Refrigeration & Air Conditioning markets were significantly impacted by cautious customer spending and prolonged year-end holidays,” explained CEO and President Lukas Winkler.

Full year 2008 results For the full year 2008, sales to the General Vacuum and the Emergency Response & Safety markets both grew, while revenues from the Semiconductor & Vacuum Coating and the Refrigeration & Air Conditioning markets declined by single-digit figures. INFICON achieved total sales for fiscal 2008 of USD 256.5 million, representing an 8.4% increase over the USD 236.6 million recorded for fiscal 2007. Organic growth accounted for 1.3% of the increase, foreign currency exchange effect for 5.2%, and sales from acquisitions made in 2007 for 1.9%.

For the full year 2008, income from operations rose 1.4% to USD 33.3 million compared with USD 32.9 million in 2007, and net income decreased 1.8% to USD 24.3 million from USD 24.8 million. On a per diluted share basis, net income rose 5.2% to USD 11.26 compared with USD 10.70 in 2007.

Cash flow and strong balance sheet enable cash dividend Cash provided by operating activities in the fourth quarter was USD 9.7 million compared to USD 7.3 million in the same quarter last year. Operating cash flow for the full year 2008 totaled USD 29.6 million after USD 30.2 million for 2007, and INFICON closed the year with a strong equity ratio of 76.6%. The company’s Board of Directors intends to propose a cash dividend of CHF 6.00 per share for 2008 at the May 5, 2009 Annual General Meeting of Shareholders.

Mr. Winkler concluded, “Our diversified technology portfolio serves various global markets. This wide market base reduces for INFICON the impact of what has turned into a broad, global economic recession. Our flexible cost structure, quick action to decrease expenses, our strong cash position as well as a balance sheet without any long-term debt, all constitute substantial advantages in today’s extremely challenging environment. Nonetheless, visibility remains very limited and we have therefore decided to defer providing financial guidance for 2009.”

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