ATMI's original name -- Advanced Technology Materials, Inc. -- is a pretty good summary of its business. The company provides ultrapure materials and related packaging and delivery systems used by semiconductor and flat-panel display manufacturers during copper integration, deposition, ion implantation, photolithography, and surface preparation production processes. It also offers single-use disposable storage systems, mixers, and bioreactors, along with flexible film and cleanroom packaging, to the biotechnology, cell therapy, laboratory, and pharmaceutical industries. Customers located in the Asia/Pacific region account for more than two-thirds of sales.
ATMI has global facilities in Belgium, China, Germany, Japan, Malaysia, Singapore, South Korea, Taiwan, and the US.
ATMI has grown in the microelectronics industry (90% of sales) through R&D and strategic acquisitions and alliances, in order to add complementary technologies to its product portfolio. The company expanded into products for life sciences because of growth potential in the sector.
In 2011 sales were $390 million, up 6% over 2010. The growth was driven by customer demand across both segments of ATMI's business. The company saw a 17% increase in copper materials in its microelectronics segment, and a 25% increase in the life sciences segment. In spite of the higher sales, ATMI reported a net loss of $20 million for the year. Though product mix, cost overruns, and pricing pressures contributed to the loss, the company also points to one-time expenses associated with the termination of a contract manufacturing agreement related to its Safe Delivery Source (SDS) product line that impacted fourth quarter revenues and earnings.
As part of an ongoing effort to expand its market share and revenue base, and bring critical development and production in-house, in late 2011 ATMI terminated an agreement with Matheson Tri-Gas for the manufacture and distribution of its SDS products in exchange for a $95 million cash payment. (ATMI took an $85 million contract charge in the fourth quarter, affecting its bottom line for the year.)
The company will assume control of all manufacturing, distribution, logistics, and sales of the SDS products; only in the critically important country of Japan will ATMI rely on Matheson parent Taiyo Nippon Sanso for distribution. While ATMI is in the process of acquiring the business licenses and permits related to manufacturing the SDS products, and upgrading its facilities, Matheson will continue to manufacture a portion of the SDS products for up to two years.