MKS Instruments Reports Q3 2011 Financial Results

ANDOVER, Mass., Oct. 19, 2011 (GLOBE NEWSWIRE) -- MKS Instruments, Inc.
(Nasdaq:MKSI), a global provider of technologies that enable advanced processes
and improve productivity, today reports third quarter 2011 financial results.

Third Quarter Financial Results

Sales were $194.5 million, down 12.1% from $221.3 million in the third quarter
of 2010 and down 13.4% from $224.5 million in the second quarter of 2011.

Third quarter net income was $30.4 million, or $0.57 per diluted share, compared
to net income of $38.6 million in the third quarter of 2010, or $0.76 per
diluted share, and $38.6 million in the second quarter of 2011, or $0.73 per
diluted share.

Non-GAAP net earnings were $30.6 million, or $0.58 per diluted share, compared
to $36.8 million, or $0.72 per diluted share, in the third quarter of 2010 and a
record $38.8 million, or $0.73 per diluted share, in the second quarter of 2011.

Cash and investments, net of short-term borrowings, were $533.8 million at the
end of the quarter, while stockholders' equity, net of intangible assets and
goodwill, was $831.2 million at quarter end.

Leo Berlinghieri, Chief Executive Officer and President, said, "Order levels
began to decline in May and continued to decline until the middle of the third
quarter. However, since then, orders have remained fairly stable. In conditions
like these, our proven strategy is to remain nimble, aggressively identify and
pursue new opportunities while simultaneously controlling costs.

"Based upon recent business levels and general business outlook, we estimate
that our fourth quarter sales may range from $145 to $165 million and at this
volume, our non-GAAP net earnings could range from $0.18 to $0.31 per diluted
share."

Conference Call Details

A conference call with management will be held on Thursday, October 20, 2011 at
8:30 a.m. (Eastern Time). To participate in the conference call, please dial
(877) 212-6076 for domestic callers and (707) 287-9331 for international
callers, and an operator will connect you. Participants will need to provide the
operator with the Conference ID of 11366013, which has been reserved for this
call. A live and archived webcast of the call will also be available on the
company's website at www.mksinst.com.

Use of Non-GAAP Financial Results

Non-GAAP net earnings and Non-GAAP net earnings per share amounts exclude
discontinued operations, amortization of acquired intangible assets, costs
associated with acquisitions and disposition related charges, and certain
adjustments to income tax rates. These non-GAAP measures are not in accordance
with Accounting Principles Generally Accepted in the United States of America
(GAAP). MKS' management believes the presentation of these non-GAAP financial
measures is useful to investors for comparing prior periods and analyzing
ongoing business trends and operating results.

About MKS Instruments

MKS Instruments, Inc. is a global provider of instruments, subsystems and
process control solutions that measure, control, power, monitor and analyze
critical parameters of advanced manufacturing processes to improve process
performance and productivity. Our products are derived from our core
competencies in pressure measurement and control, materials delivery, gas
composition analysis, control and information technology, power and reactive gas
generation, and vacuum technology. Our primary served markets are manufacturers
of capital equipment for semiconductor devices, and for other thin film
applications including flat panel displays, solar cells, light emitting diodes,
data storage media, and other advanced coatings. We also leverage our technology
in other markets with advanced manufacturing applications including medical
equipment, pharmaceutical manufacturing, energy generation, and environmental
monitoring.

Forward-Looking Statements

This release contains projections or other forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of
the Securities Act, and Section 21E of the Securities Exchange Act regarding
MKS' future growth and the future financial performance of MKS. These
projections or statements are only predictions. Actual events or results may
differ materially from those in the projections or other forward-looking
statements set forth herein. Among the important factors that could cause actual
events to differ materially from those in the projections or other
forward-looking statements are the fluctuations in capital spending in the
semiconductor industry, and other advanced manufacturing markets, fluctuations
in net sales to MKS' major customers, potential fluctuations in quarterly
results, the challenges, risks and costs involved with integrating the
operations of MKS and any acquired companies, dependence on new product
development, rapid technological and market change, acquisition strategy,
manufacturing and sourcing risks, volatility of stock price, international
operations, financial risk management, and future growth subject to risks.
Readers are referred to MKS' filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, for a discussion of these and other important risk factors
concerning MKS and its operations. MKS is under no obligation to, and expressly
disclaims any obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise.

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)

Three Months Ended (Note 1)
----------------------------------

September September
30, 30, June 30,
2011 2010 2011
---------- ---------- ----------

Net revenues $ 194,508 $ 221,323 $ 224,487

Cost of revenues 106,830 122,820 119,499
---------- ---------- ----------
Gross profit 87,678 98,503 104,988

Research and development 14,331 15,070 15,582
Selling, general and
administrative 31,984 28,247 31,851
Amortization of intangible
assets 251 250 250
---------- ---------- ----------
Income from operations 41,112 54,936 57,305

Interest income, net 272 35 309
---------- ---------- ----------

Income from continuing
operations before income taxes 41,384 54,971 57,614

Provision for income taxes 11,011 18,370 19,013
---------- ---------- ----------
Income from continuing
operations 30,373 36,601 38,601
Income from discontinued
operations, net of taxes -- 2,035 --
---------- ---------- ----------

Net income $ 30,373 $ 38,636 $ 38,601
========== ========== ==========

Basic income per share:
Continuing operations $ 0.58 $ 0.73 $ 0.74

Discontinued operations -- 0.04 --
---------- ---------- ----------
Net income $ 0.58 $ 0.77 $ 0.74

Diluted income per share:
Continuing operations $ 0.57 $ 0.72 $ 0.73

Discontinued operations -- 0.04 --
---------- ---------- ----------
Net income $ 0.57 $ 0.76 $ 0.73

Cash dividends per common share $ 0.15 $ -- $ 0.15

Weighted average shares
outstanding:
Basic 52,456 50,226 52,346
Diluted 52,992 50,994 52,906

The following supplemental
Non-GAAP earnings information
is presented to aid in
understanding MKS' operating
results:

Income from continuing
operations $ 30,373 $ 36,601 $ 38,601

Adjustments (net of tax, if
applicable):
Amortization of acquired
intangible assets 251 250 250

Proforma tax adjustments (67) (66) (65)
---------- ---------- ----------

Non-GAAP net earnings (Note 2) $ 30,557 $ 36,785 $ 38,786
========== ========== ==========

Non-GAAP net earnings per share
(Note 2) $ 0.58 $ 0.72 $ 0.73
========== ========== ==========
Weighted average shares
outstanding 52,992 50,994 52,906

Note 1: During 2010, the Company sold two product lines that no
longer met the Company's long-term strategic objectives. The
results of operations of the two product lines have been classified
as discontinued operations in the consolidated statements of
operations for the prior year period provided.

Note 2: The Non-GAAP net earnings and Non-GAAP net earnings per
share amounts exclude results of discontinued operations,
amortization of acquired intangible assets, acquisition and
disposition related charges and special items, net of applicable
income taxes.

MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)

Nine Months Ended
September 30, (Note 1)
----------------------

2011 2010
---------- ----------

Net revenues $ 650,846 $ 634,136

Cost of revenues 351,819 352,819
---------- ----------
Gross profit 299,027 281,317

Research and development 46,809 46,899
Selling, general and administrative 96,542 86,961
Amortization of intangible assets 751 1,033

Gain on sale of asset -- (682)
---------- ----------
Income from operations 154,925 147,106

Interest income, net 852 614
---------- ----------

Income from continuing operations
before income taxes 155,777 147,720

Provision for income taxes 48,760 48,977
---------- ----------
Income from continuing operations 107,017 98,743
Income from discontinued
operations, net of taxes -- 7,895
---------- ----------

Net income $ 107,017 $ 106,638
========== ==========

Basic income per share:
Continuing operations $ 2.06 $ 1.98

Discontinued operations -- 0.16
---------- ----------
Net income $ 2.06 $ 2.13

Diluted income per share:
Continuing operations $ 2.03 $ 1.94

Discontinued operations -- 0.16
---------- ----------
Net income $ 2.03 $ 2.10

Cash dividends per common share $ 0.45 $ --

Weighted average shares
outstanding:
Basic 52,070 49,965
Diluted 52,761 50,821

The following supplemental Non-GAAP
earnings information is presented
to aid in understanding MKS'
operating results:

Income from continuing operations $ 107,017 $ 98,743

Adjustments (net of tax, if
applicable):
Amortization of acquired
intangible assets 751 1,033
Gain on sale of asset (Note 2) -- (682)

Proforma tax adjustments (197) (48)
---------- ----------

Non-GAAP net earnings (Note 3) $ 107,571 $ 99,046
========== ==========

Non-GAAP net earnings per share
(Note 3) $ 2.04 $ 1.95
========== ==========
Weighted average shares outstanding 52,761 50,821

Note 1: During 2010, the Company sold two product lines
that no longer met the Company's long-term strategic
objectives. The results of operations of the two product
lines have been classified as discontinued operations in
the consolidated statements of operations for the prior
year period provided.

Note 2: The nine month period ended September 30, 2010
includes a $682 gain on the sale of a vacated facility.

Note 3: The Non-GAAP net earnings and Non-GAAP net earnings
per share amounts exclude results of discontinued
operations, amortization of acquired intangible assets,
acquisition and disposition related charges and special
items, net of applicable income taxes.

MKS Instruments, Inc.
Unaudited Consolidated Balance Sheet
(In thousands)

September December
30, 31,
2011 2010
------------ ----------

ASSETS

Cash and short-term
investments $ 525,839 $ 431,933
Trade accounts receivable,
net 125,517 138,181
Inventories 161,059 156,429

Other current assets 37,913 26,352
------------ ----------
Total current assets 850,328 752,895

Property, plant and
equipment, net 69,891 68,976
Goodwill 140,084 140,020
Intangible assets, net 1,307 1,743
Long-term marketable
securities 9,260 --

Other assets 16,842 18,779
------------ ----------

Total assets $ 1,087,712 $ 982,413
============ ==========

LIABILITIES AND
STOCKHOLDERS' EQUITY

Short-term borrowings $ 1,302 $ --
Accounts payable 22,572 36,427
Accrued expenses and other
liabilities 59,057 73,259
------------ ----------
Total current
liabilities 82,931 109,686

Other liabilities 32,169 25,688

Stockholders' equity:
Common stock 113 113
Additional paid-in capital 703,405 663,792
Retained earnings 254,701 171,356

Other stockholders' equity 14,393 11,778
------------ ----------
Total stockholders'
equity 972,612 847,039
------------ ----------

Total liabilities and
stockholders' equity $ 1,087,712 $ 982,413
============ ==========

CONTACT: Seth H. Bagshaw
Vice President, Chief Financial Officer & Treasurer
Telephone: 978.645.5578