Millipore Revenues Up 7 Percent in Q2 - Company Financial Information

Edge: Work-Group Computing Report, August 2, 1999

Millipore Corporation (NYSE:MIL) has announced that its second quarter revenues were $187 million, up 7 percent from the same period last year. Earnings were $0.32 per share compared to $0.15 per share last year. For the year to date, revenues were up 2 percent. Earnings for the year to date were $0.58 compared to $0.47 last year, excluding certain one-time events recorded in the first quarter of last year.

C. William Zadel, Millipore's Chairman and CEO noted: "Our Biopharmaceutical & Research business segment showed strong second quarter growth of 11 percent. This business segment is seventy-five percent of our overall business. Growth was fueled by the need for our products in life science research, drug discovery, biopharmaceutical manufacturing, as well as quality control of new therapeutics.

"Revenue growth in this segment was broad-based across product lines and geographies. In the second quarter we also made a strategic acquisition of a chromatography media company, BioProcessing Limited, that enables us to better serve our biotechnology customers in the promising area of monoclonal antibodies."

Zadel continued: "Our Microelectronics business segment is starting to benefit from the industry's recovery. We achieved our third sequential quarter of improved revenues in microelectronics, and we are looking forward to continued gains as the industry ramps up. Several new products were launched at last week's Semicon West trade show for both liquid and gas processing. Also, the profitability of this business segment has significantly improved with our plant consolidation and restructuring actions."

In conclusion, Zadel said: "Earnings and profitability are heading in the right direction and we look forward to continued improvement in the second half of 1999."

Millipore's revenue growth by business segment and geographic area was ($'s in millions):

Revenues by Business Segment
                                                         % Growth
                                   Q2     Q2       %       Local
                                  1998    1999  Growth    Currency
Biopharmaceutical &
Research (1)                      $126   $140     11%      11%
Microelectronics (2)                49     47     (4%)     (7%)

        TOTAL                     $175   $187      7%       6%


Revenues by Geographic Area
                                                      % Growth
                                Q2      Q2      %        Local
                               1998    1999  Growth     Currency

Americas                       $ 73   $ 77      6%       7%
Europe                           59     58     (1%)      3%
Asia / Pacific                   43     52     18%       7%

        TOTAL                  $175   $187      7%       6%

     Footnotes:

(1) Millipore's Biopharmaceutical & Research business segment includes products and services provided to pharmaceutical companies, biotechnology companies, food and beverage companies, university and government laboratories, and research institutes.

(2) Millipore's Microelectronics business segment includes products and services provided to semiconductor fabrication companies as well as OEM suppliers to those companies.

Millipore is a multinational, high technology company that applies its purification technology to critical research and manufacturing applications in the microelectronics and biopharmaceutical industries.

Millipore Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

                         Three Months Ended     Six Months Ended
                               June 30,             June 30,
                            1999      1998      1999       1998

Net sales                $187,466   $175,172  $367,869   $360,834
Cost of sales              86,080     85,507   170,975    171,936
 Gross profit             101,386     89,665   196,894    188,898
Selling, general &
 administrative
 expenses                  62,883     60,809   124,716    122,496
Research &
 development expenses      13,362     13,910    25,707     27,045
Settlement of
 litigation                                 11,766
 Operating income          25,141     14,946    46,471     27,591
Gain on sale of
 equity securities                          35,594
Interest income               691        761     1,390      1,375
Interest expense           (7,333)    (7,058)  (15,112)   (14,131)
 Income before
  income taxes             18,499      8,649    32,749     50,429
Income tax expense          3,885      1,816     6,878     12,186
Net income                $14,614     $6,833   $25,871    $38,243

Per share information:
Diluted net income
 per share                  $0.32      $0.15     $0.58      $0.86
Cash dividends              $0.11      $0.11     $0.22      $0.21
Diluted weighted average
 shares outstanding        45,308     44,327    44,889     44,317


Millipore Corporation
Condensed Consolidated Balance Sheets
(In thousands)

                                        June 30,          Dec. 31,
                                          1999             1998
                                       (Unaudited)
Assets

Cash and cash equivalents                $36,489          $36,022
Accounts receivable, net                 166,758          154,258
Inventories                               97,964          107,241
Other current assets                       8,211            7,231
     Total current assets                309,422          304,752
Property, plant & equipment, net         225,017          237,414
Deferred income taxes                    108,545          108,545
Intangible assets                         71,809           76,507
Other assets                              34,061           35,222
Total assets                            $748,854         $762,440

Liabilities & Shareholders' Equity
Notes payable                           $156,000         $171,340
Accounts payable                          41,791           39,729
Accrued expenses                          71,651           75,544
Dividends payable                          4,936            4,847
Accrued retirement plan contributions      4,680            6,931
Accrued income taxes                       7,080              290
     Total current liabilities           286,138          298,681
Long-term debt                           293,965          299,110
Other liabilities                         28,398           27,741
Shareholders' equity                     140,353          136,908
Total liabilities & shareholders' equity$748,854         $762,440


Millipore Corporation
Summary of Segment Data
(In thousands)

Consolidated Net Sales
                     Three Months Ended          Six Months Ended
                          June 30                     June 30
                     1999         1998          1999         1998

Biopharmaceutical
 & Research        $144,118     $130,286     $282,838     $259,796
Microelectronics     48,139       51,714       90,465      113,666
Foreign exchange     (4,791)      (6,828)      (5,434)     (12,628)
 Total net sales   $187,466     $175,172     $367,869     $360,834

Consolidated Operating Income

                         Three Months Ended       Six Months Ended
                              June 30                June 30
                         1999        1998        1999        1998
Biopharmaceutical
 & Research            $31,758     $26,557     $62,014     $53,218
Microelectronics         3,568      (2,974)      4,606       4,753
Corporate               (8,367)     (7,474)    (17,424)    (16,292)
Litigation Settlement                       (11,766)
Foreign exchange        (1,818)     (1,163)     (2,725)     (2,322)
 Total operating income$25,141     $14,946     $46,471     $27,591