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mks MKS Instruments Reports Second Quarter 2021 Financial Results July 28 , 2021 • Record revenue of $ 750 million , up 38 % year - over - year • Record Non - GAAP net earnings of $ 168 million , up 88 % year - over - year , and GAAP net income of $ 147 million , up 99 % year - over - year • Record operating cash flow of $ 165 million , up 19 % year - over - year , and record free cash flow of $ 149 million , up 26 % year - over - year ANDOVER , Mass . , July 28 , 2021 ( GLOBE NEWSWIRE ) -- MKS Instruments , Inc. ( NASDAQ : MKSI ) , a global provider of technologies that enable advanced processes and improve productivity , today reported second quarter 2021 financial results . " We delivered yet another quarter of record revenue and earnings , despite facing increasing supply constraints of certain components , " said John T.C. Lee , President and Chief Executive Officer . " Our unique Surround the Chamber Ⓡ portfolio continued to see strong demand and design win activity across a broad array of applications , while revenue from our Advanced Markets accelerated further in the quarter , growing more than 40 % year - over - year . Business levels remain strong and excluding the headwinds we are seeing with supply constraints , we would have expected revenue in the third quarter to grow sequentially . " Mr. Lee added , " With the closing of the acquisition of Photon Control Inc. and the announcement of our agreement to acquire Atotech Limited , MKS is well - positioned to lead the way in addressing the challenges of miniaturization and complexity in semiconductor and advanced electronics manufacturing , and I am very excited about the opportunities that lie ahead . ” " We are pleased to deliver second quarter gross margins that exceeded the midpoint of our guidance , and combined with strong operating leverage , this enabled us to generate robust Non - GAAP operating margin expansion of 190 basis points sequentially , and 610 basis points year - over - year , " said Seth H. Bagshaw , Senior Vice President and Chief Financial Officer . Mr. Bagshaw added , “ Our record operating and free cash flow in the quarter is a strong validation of our profitability and working capital management , and we expect to further enhance our cash generation profile with our anticipated acquisition of Atotech . " Third Quarter 2021 Outlook Based on current business levels and certain supply constraints , the Company expects revenue in the third quarter of 2021 of $ 720 million , plus or minus $ 30 million . At these volumes , the Company expects Non - GAAP net earnings per diluted share of $ 2.74 , plus or minus $ 0.26 . Conference Call Details A conference call with management will be held on Thursday , July 29 , 2021 at 8:30 a.m. ( Eastern Time ) . To access a live webcast of the conference call and related presentation materials management will refer to during the call , visit MKS ' website at mksinst.com and click on Company - Investor Relations . The webcast and related presentation materials will be listed in the calendar of events . To participate by telephone , please dial ( 877 ) 212-6076 for domestic callers or ( 707 ) 287-9331 for international callers , provide the operator with Conference ID 1346544 , and access the presentation materials on MKS ' website . Participants are asked to access the live webcast or dial in at least 15 minutes in advance to ensure a timely connection . An archive of the webcast and related presentation materials will be available on MKS ' website . About MKS Instruments MKS Instruments , Inc. is a global provider of instruments , systems , subsystems and process control solutions that measure , monitor , deliver , analyze , power and control critical parameters of advanced manufacturing processes to improve process performance and productivity for our customers . Our products are derived from our core competencies in pressure measurement and control , flow measurement and control , gas and vapor delivery , gas composition analysis , electronic control technology , reactive gas generation and delivery , power generation and delivery , vacuum technology , lasers , photonics , optics , precision motion control , vibration control and laser - based manufacturing systems solutions . We also provide services relating to the maintenance and repair of our products , installation services and training . Our primary served markets include semiconductor , industrial technologies , life and health sciences , and research and defense . Additional information can be found at mksinst.com . Use of Non - GAAP Financial Results This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles ( " Non - GAAP financial measures " ) . These Non - GAAP financial measures should be viewed in addition to , and not as a substitute for , MKS ' reported GAAP results , and may be different from Non - GAAP financial measures used by other companies . In addition , these Non - GAAP financial measures are not based on any comprehensive set of accounting rules or principles . 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 . MKS is not providing a quantitative reconciliation of forward - looking Non - GAAP gross margin , operating expenses , interest expense , net , tax rate , net earnings and net earnings per diluted share to the most directly comparable GAAP financial measures because it is unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts . These items include , but are not limited to , acquisition and integration costs , acquisition inventory step - up , amortization of intangible assets , restructuring and other expense , asset impairment , and the income tax effect of these items . These items are uncertain , depend on various factors , including , but not limited to , our pending acquisition of