MKS Cites Market Downturn as Company Issues Third-Quarter Earnings

MKS Instruments posted third-quarter revenue of $932 million, with earnings per share registering at $0.58. Adjusted for nonrecurring costs, earnings per share hit $1.46.

According to MKS president and CEO John T.C. Lee, said the company delivered strong quarterly profitability despite what he called a “muted demand environment” across MKS’ end markets.

In a presentation to investors, the company noted shrinking demand in the semiconductor market in particular, falling 17% quarter over quarter and 32% year over year. Photonics demand, the company said, remained resilient for lithography, metrology, and inspection.

In electronics and packaging, the company saw 8% growth measured quarter over quarter, which it attributed to seasonal consumer electronics production and slightly higher printed circuit board and package substrate production ahead of the Golden Week holidays in Asia, as well as shipments of high-density interconnection laser drilling for low-Earth-orbit satellite communications space.

The specialty industrial market held largely flat, as the company noted modest weakness in solar and LED applications, as well as its sequentially stable position in general metal finishing for automotive applications.

For the fourth quarter of 2023, the company expects revenue to fall in the $800 million to $880 million range; adjusted EBITDA of $185 million, plus or minus $20 million; and non-GAAP net earnings per diluted share of $0.85, plus or minus $0.27. According to Lee, the company remains active in talks with a range of customers in diverse application areas.