MKS Instruments, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the third quarter of 2024, net revenues totaled $896 million, a decrease from $932 million in the same quarter of 2023. For the nine-month period, revenues were $2,652 million, down from $2,730 million year-over-year. The decline in revenue was primarily attributed to softened demand in the semiconductor market, particularly for deposition and etching equipment, although there were increases in sales of lithography, metrology, and inspection products.

Despite the revenue decline, MKS Instruments achieved a gross profit of $432 million for the third quarter of 2024, slightly up from $426 million in the same quarter of 2023. The gross profit margin improved to 48.2%, reflecting better cost management and operational efficiencies. Income from operations for the third quarter rose to $128 million, compared to $118 million in the prior year, while income before income taxes increased significantly to $60 million from $22 million. Net income for the third quarter was $62 million, up from $39 million in the same period last year, resulting in a net income per share of $0.92, compared to $0.59 in 2023.

For the nine months ended September 30, 2024, MKS Instruments reported a net income of $99 million, a substantial recovery from a net loss of $1,772 million in the same period of 2023. This turnaround was supported by improved operational performance and a reduction in interest expenses, which decreased due to refinancing efforts and a voluntary prepayment of debt.

The company also undertook strategic initiatives, including the realignment of its Optical Sensing Products from the Photonics Solutions Division to the Vacuum Solutions Division to better align with semiconductor products. Additionally, MKS Instruments completed a private offering of $1.4 billion in convertible senior notes in May 2024, with proceeds used to repay existing borrowings and fund ongoing operations.

Restructuring charges for the nine months ended September 30, 2024, amounted to $6 million, primarily related to severance costs from a global cost-saving initiative. The company maintained a strong cash position, with cash and cash equivalents at $861 million as of September 30, 2024, slightly down from $875 million at the end of 2023.

Overall, MKS Instruments demonstrated resilience in profitability despite revenue challenges, supported by strategic realignments and effective cost management.