OREANDA-NEWS. July 28, 2016. MKS Instruments, Inc. (NASDAQ:MKSI), a global provider of technologies that enable advanced processes and improve productivity, reports today second quarter 2016 financial results.

"We had a very strong second quarter driven by positive business trends in the semiconductor market as well as in other advanced markets we serve,” said Gerald Colella, Chief Executive Officer and President. On a pro-forma basis, sales were \\$359 million, an increase of 9% from \\$330 million in the first quarter of 2016.

Mr. Colella added, "Our second quarter performance demonstrates the accretion potential of our combination with Newport. We are excited about the capabilities of a broader suite of highly precise technology-enabling solutions that address the difficult technological challenges our customers face. Our integration is on track and we are on schedule to realize \\$35 million of annualized cost synergies."

“During the second quarter, we introduced a combined target operating model to reflect the acquisition of Newport, our recent favorable debt repricing and a \\$50 million principal repayment,” said Seth Bagshaw, Vice President and Chief Financial Officer.  “At illustrative annual revenue of approximately \\$1.4 billion, and on a fully synergized basis, at this target operating model, the combined company is expected to generate non-GAAP gross margins of 45% to 47%, non-GAAP operating margins of 18% to 20%, and non-GAAP EPS of \\$2.97 to \\$3.35 on 54 million shares outstanding.”

Sales in the second quarter were \\$326 million, which included two months of results from the company’s acquisition of Newport which closed on April 29, 2016. Second quarter Net Income of \\$9.2 million included amortization of intangible assets of \\$8.9 million and aggregate acquisition and integration-related costs of \\$20 million associated with the acquisition.  Non-GAAP Net Earnings were \\$38.7 million, or \\$0.72 per diluted share.

The Company had \\$426 million in cash and short-term investments as of June 30th, \\$730 million outstanding under its term loan, and during the quarter paid a dividend of \\$9.1 million or \\$0.17 per diluted share.

 
Quarterly Financial Results
(in millions, except per share data)
  Q2 2016   Q1 2016 
GAAP Results       
Net revenues\\$326  \\$184 
Gross margin 41.7%  42.4%
Operating margin 5.9%  12.3%
Net income\\$9.2  \\$17.6 
Diluted EPS\\$0.17  \\$0.33 
Non-GAAP Results         
Gross margin 44.8%  42.4%
Operating margin 18.1%  14.6%
Net earnings\\$38.7  \\$20.1 
Diluted EPS\\$0.72  \\$0.38 
        

Third Quarter Outlook  
Based on current business levels, we expect that sales in the third quarter of 2016 may range from \\$345 to \\$385 million, and at these volumes, our non-GAAP net earnings could range from \\$0.64 to \\$0.86 per diluted share and GAAP net income could range from \\$0.36 to \\$0.60 per diluted share.

Segment Results  
In conjunction with the acquisition of Newport, the Company is reporting its results in two business segments:  Vacuum and Analysis, and Light and Motion.  
Vacuum and Analysis provides a broad range of instruments, components, subsystems and software which are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, RF & DC power, reactive gas generation, and vacuum technology.

Light and Motion provides a broad range of instruments, components and subsystems which are derived from our core competencies in lasers, photonics, sub-micron positioning, vibration isolation, and optics.

Conference Call Details
A conference call with management will be held on Thursday, July 28, 2016 at 8:30 a.m. (Eastern Time).  To participate in the conference call, please dial (877) 212-6076 for domestic callers and (707) 287-9331 for international callers, and an operator will connect you.  Participants will need to provide the operator with the Conference ID of 37647857, which has been reserved for this call.  A live and archived webcast of the call will be available on the company’s website at www.mksinst.com.  

About MKS Instruments
MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor, and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. Our products are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, RF & DC power, reactive gas generation, vacuum technology, lasers, photonics, sub-micron positioning, vibration isolation, and optics.  Our primary served markets include semiconductor capital equipment, general industrial, life sciences, and research.  Additional information can be found at www.mksinst.com.

Use of Non-GAAP Financial Results
Non-GAAP amounts exclude amortization of acquired intangible assets, costs associated with completed and announced acquisitions, acquisition integration costs, sale of previously written down inventory, restructuring charges, fees and expenses related to repricing of term loan, amortization of deferred financing charges, discrete tax benefits and charges, and the related tax effect of these adjustments. These non-GAAP measures are not in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP). 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. Pro forma revenue amounts assume the acquisition of Newport had occurred as of the beginning of the first quarter of 2016.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the future financial performance of MKS, MKS’ future business prospects, MKS’ future growth, and MKS’ expected synergies and cost savings from its recent acquisition of Newport Corporation. These statements are only predictions based on current assumptions and expectations. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements are the conditions affecting the markets in which MKS operates, including the fluctuations in capital spending in the semiconductor industry, and other advanced manufacturing markets, fluctuations in net sales to MKS’ major customers, the ability of MKS Instruments to successfully integrate Newport Corporation’s operations and employees, unexpected costs, charges or expenses resulting from the Newport acquisition, the terms of the financing incurred in connection with the Newport acquisition, MKS’ ability to realize anticipated synergies and cost savings from the Newport acquisition, MKS’ ability to successfully grow Newport Corporation’s business, potential adverse reactions or changes to business relationships resulting from the Newport acquisition, potential fluctuations in quarterly results, the challenges, risks and costs involved with integrating the operations of any other acquired companies, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing and sourcing risks, volatility of stock price, international operations, financial risk management, and the other factors described in MKS’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC and in Newport Corporation’s Annual Report on Form 10-K for the year ended January 2, 2016 filed with the SEC.  MKS is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release.

             
MKS Instruments, Inc.  
Unaudited Consolidated Statements of Operations  
(In thousands, except per share data)  
             
        Three Months Ended 
        June 30, June 30, March 31,
         2016   2015   2016 
             
Net revenues:            
  Products       \\$  285,471  \\$  188,281  \\$  153,621 
  Services          40,390     29,685     30,060 
    Total net revenues         325,861     217,966     183,681 
Cost of revenues:           
  Products          163,993     99,849     85,352 
  Services          25,955     19,319     20,416 
    Total cost of revenues         189,948     119,168     105,768 
             
Gross profit          135,913     98,798     77,913 
             
Research and development         28,214     17,567     17,227 
Selling, general and administrative        71,429     33,269     33,950 
Acquisition costs         8,205     -      2,494 
Restructuring          24     219     -  
Amortization of intangible assets        8,855     1,709     1,683 
Income from operations         19,186     46,034     22,559 
             
Interest (expense) income, net        (7,944)  790   880 
Other income, net        1,126   -    366 
Interest and other (expense) income, net       (6,818)    790     1,246 
             
Income from operations before income taxes       12,368     46,824     23,805 
Provision for income taxes          3,158     13,604     6,242 
Net income       \\$  9,210  \\$  33,220  \\$  17,563 
                   
Net income per share:                 
  Basic       \\$  0.17  \\$  0.62  \\$  0.33 
  Diluted       \\$  0.17  \\$  0.62  \\$  0.33 
             
Cash dividends per common share     \\$  0.17  \\$  0.17  \\$  0.17 
             
Weighted average shares outstanding:          
  Basic          53,461     53,384     53,235 
  Diluted          53,806     53,589     53,563 
             
The following supplemental Non-GAAP earnings information is presented       
to aid in understanding MKS' operating results:        
             
Net income   \\$  9,210  \\$  33,220  \\$  17,563 
       
Adjustments:      
  Acquisition costs (Note 1)    8,205     -      2,494 
  Acquisition inventory step-up (Note 2)    10,119     -      -  
  Fees and expenses relating to repricing of term loan (Note 3)    713     -      -  
  Amortization of debt issuance costs (Note 4)       1,629     -      -  
  Integration costs (Note 5)    11,850     -      -  
  Restructuring (Note 6)    24     219     -  
  Sale of previously written down inventory (Note 7)    -      (2,098)    -  
  Amortization of intangible assets    8,855     1,709     1,683 
  Pro forma tax adjustments    (11,896)    74     (1,593)
       
Non-GAAP net earnings (Note 8) \\$  38,709  \\$  33,124  \\$  20,147 
       
Non-GAAP net earnings per share (Note 8) \\$  0.72  \\$  0.62  \\$  0.38 
       
Weighted average shares outstanding    53,806     53,589     53,563 
       
Income from operations \\$  19,186  \\$  46,034  \\$  22,559 
       
Adjustments:      
  Acquisition costs (Note 1)  8,205     -    2,494 
  Acquisition inventory step-up (Note 2)    10,119     -      -  
  Fees and expenses relating to repricing of term loan (Note 3)    713     -      -  
  Integration costs (Note 5)    11,850     -      -  
  Restructuring (Note 6)    24     219     -  
  Sale of previously written down inventory (Note 7)    -      (2,098)    -  
  Amortization of intangible assets    8,855     1,709     1,683 
       
Non-GAAP income from operations (Note 9) \\$  58,952  \\$  45,864  \\$  26,736 
       
Non-GAAP operating margin percentage (Note 9)  18.1%  21.0%  14.6%
      
Gross profit \\$  135,913  \\$  98,798  \\$  77,913 
  Acquisition inventory step-up (Note 2)    10,119     -      -  
  Sale of previously written down inventory (Note 7)    -      (2,098)    -  
      
Non-GAAP gross profit (Note 10) \\$  146,032  \\$  96,700  \\$  77,913 
      
Non-GAAP gross profit percentage (Note 10)  44.8%  44.4%  42.4%
      
Interest (expense) income, net\\$(7,944) \\$790  \\$880 
  Amortization of debt issuance costs (Note 4) 1,629   -    -  
            
Non-GAAP interest (expense) income, net\\$(6,315) \\$790  \\$880 
      
Note 1: We recorded \\$8.2 million and \\$2.5 million of acquisition costs during the three months ended June 30, 2016 and March 31, 2016, respectively, related to the Newport Corporation acquisition, which closed during the second quarter of 2016. 
 
Note 2: We recorded \\$10.1 million in cost of sales during the three months ended June 30, 2016 related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition. This is being charged to cost of sales over inventory turns of three months.
 
Note 3: We recorded \\$0.7 million of fees and expenses during the three months ended June 30, 2016 related to the repricing of our Term Loan Credit Agreement.
             
Note 4: We recorded \\$1.6 million of additional interest expense during the three months ended June 30, 2016 related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.
 
Note 5: We recorded \\$11.9 million of integration costs during the three months ended June 30, 2016 related to the Newport Corporation acquisition.
             
Note 6: We recorded \\$0.2 million of restructuring costs during the three months ended June 30, 2015 related to the outsourcing of an international manufacturing operation.
 
Note 7: Cost of sales for the three months ended June 30, 2015, include the reversal of a special charge of \\$2.1 million for obsolete inventory, which was subsequently sold.
             
Note 8: The Non-GAAP net earnings and Non-GAAP net earnings per share amounts exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, amortization of debt issuance costs, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold, amortization of intangible assets and the related tax effect of these adjustments to reflect the expected full year effective tax rate in the related period.
 
Note 9: The Non-GAAP income from operations and Non-GAAP operating margin percentages exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold and amortization of intangible assets. 
   
Note 10:  The Non-GAAP gross profit amounts and Non-GAAP gross profit percentages exclude an inventory step-up adjustment related to an acquisition and the reversal of certain previously written off inventory items that were subsequently sold.  
  
 
           
MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
             
        Six Months Ended 
        June 30,
         2016   2015 
           
Net revenues:          
  Products       \\$  439,092  \\$  374,377 
  Services          70,450     57,428 
    Total net revenues         509,542     431,805 
Cost of revenues:         
  Products          249,345     198,501 
  Services          46,371     37,460 
    Total cost of revenues         295,716     235,961 
           
Gross profit          213,826     195,844 
           
Research and development         45,441     34,247 
Selling, general and administrative        105,379     64,136 
Acquisition costs         10,699     30 
Restructuring          24     1,007 
Amortization of intangible assets        10,538     3,380 
Income from operations         41,745     93,044 
           
Interest (expense) income, net        (7,064)  1,294 
Other income, net        1,492   -  
Interest and other (expense) income, net       (5,572)    1,294 
           
Income from continuing operations before income taxes      36,173     94,338 
Provision for income taxes          9,400     27,332 
Net income       \\$  26,773  \\$  67,006 
           
Net income per share:         
  Basic       \\$  0.50  \\$  1.26 
  Diluted       \\$  0.50  \\$  1.25 
           
Cash dividends per common share     \\$  0.340  \\$  0.335 
           
Weighted average shares outstanding:        
  Basic          53,348     53,299 
  Diluted          53,685     53,559 
           
The following supplemental Non-GAAP earnings information is presented     
to aid in understanding MKS' operating results:      
           
Net income       \\$  26,773  \\$  67,006 
           
Adjustments:          
  Acquisition costs (Note 1)         10,699     30 
  Acquisition inventory step-up (Note 2)       10,119     -  
  Fees and expenses relating to repricing of term loan (Note 3)     713     -  
  Amortization of debt issuance costs (Note 4)       1,629     -  
  Integration costs (Note 5)         11,850     -  
  Restructuring (Note 6)         24     1,007 
  Sale of previously written down inventory (Note 7)      -      (2,098)
  Amortization of intangible assets        10,538     3,380 
  Pro forma tax adjustments        (13,489)    (698)
             
Non-GAAP net earnings (Note 8)     \\$  58,856  \\$  68,627 
           
Non-GAAP net earnings per share (Note 8)    \\$  1.10  \\$  1.28 
           
Weighted average shares outstanding        53,685     53,559 
           
           
Income from operations      \\$  41,745  \\$  93,044 
           
Adjustments:          
  Acquisition costs (Note 1)         10,699     30 
  Acquisition inventory step-up (Note 2)       10,119     -  
  Fees and expenses relating to repricing of term loan (Note 3)     713     -  
  Integration costs (Note 5)         11,850     -  
  Restructuring (Note 6)         24     1,007 
  Sale of previously written down inventory (Note 7)      -      (2,098)
  Amortization of intangible assets        10,538     3,380 
           
Non-GAAP income from operations (Note 9)    \\$  85,688  \\$  95,363 
           
Non-GAAP operating margin percentage (Note 9)     16.8%  22.1%
           
Gross profit \\$  213,826  \\$  195,844 
  Acquisition inventory step-up (Note 2)    10,119     -  
  Sale of previously written down inventory (Note 7)    -      (2,098)
    
Non-GAAP gross profit (Note 10) \\$  223,945  \\$  193,746 
    
Non-GAAP gross profit percentage (Note 10)  44.0%  44.9%
 
Interest (expense) income, net       \\$(7,064) \\$1,294 
  Amortization of debt issuance costs (Note 4)        1,629   -  
               
Non-GAAP interest (expense) income, net       \\$(5,435) \\$1,294 
 
Note 1: We recorded \\$10.7 million of acquisition costs during the six months ended June 30, 2016 related to the Newport Corporation acquisition, which closed during the second quarter of 2016. We recorded \\$0.03 million of acquisition costs during the six months ended June 30, 2015 related to the Precisive LLC acquisition, which closed during the first quarter of 2015.
 
Note 2: We recorded \\$10.1 million in cost of sales during the six months ended June 30, 2016 related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition. This is being charged to cost of sales over inventory turns of three months.
 
Note 3: We recorded \\$0.7 million of fees and expenses during the six months ended June 30, 2016 related to the repricing of our Term Loan Credit Agreement.
 
Note 4: We recorded \\$1.6 million of amortization expense during the six months ended June 30, 2016 related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.
 
Note 5: We recorded \\$11.9 million of integration costs during the six months ended June 30, 2016 related to the Newport Corporation acquisition.
 
Note 6: We recorded \\$1.0 million of restructuring costs during the six months ended June 30, 2015 related to the outsourcing of an international manufacturing operation.
 
Note 7: Cost of sales for the six months ended June 30, 2015, include the reversal of a special charge of \\$2.1 million for obsolete inventory, which was subsequently sold.
 
Note 8: The Non-GAAP net earnings and Non-GAAP net earnings per share amounts exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, amortization of debt issuance costs, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold, amortization of intangible assets and the related tax effect of these adjustments to reflect the expected full year effective tax rate in the related period.
 
Note 9: The Non-GAAP income from operations and Non-GAAP operating margin percentages exclude acquisition costs, an inventory step-up adjustment related to the acquisition of Newport Corporation, fees and expenses related to the repricing of a term loan credit agreement, integration costs related to the acquisition of Newport Corporation, restructuring costs, the reversal of certain previously written off inventory items that were subsequently sold and amortization of intangible assets.
 
Note 10:  The Non-GAAP gross profit amounts and Non-GAAP gross profit percentages exclude an inventory step-up adjustment related to the acquisition of Newport Corporation and the reversal of certain previously written off inventory items that were subsequently sold.
 
             
MKS Instruments, Inc. 
Reconciliation of GAAP Income Tax Rate to Non-GAAP Income Tax Rate 
(In thousands) 
            
  Three Months Ended June 30, 2016 Three Months Ended March 31, 2016
 Income Before Provision (benefit) Effective  Income Before Provision(benefit) Effective 
 Income Taxes for Income Taxes Tax Rate Income Taxes for Income Taxes Tax Rate
                  
GAAP \\$  12,368  \\$  3,158   25.5% \\$  23,805  \\$  6,242   26.2%
                 
Adjustments:                
  Acquisition costs (Note 1)    8,205     -        2,494     -    
  Acquisition inventory step-up (Note 2)    10,119     -        -      -    
  Fees and expenses relating to repricing of term loan (Note 3)    713     -        -      -    
  Amortization of debt issuance costs (Note 4)    1,629     -        -      -    
  Integration costs (Note 5)    11,850     -        -      -    
  Restructuring    24     -        -      -    
  Amortization of intangible assets    8,855     -        1,683     -    
  Tax effect of pro forma adjustments    -      11,708       -      1,503   
  Adjustment to pro forma tax rate    -      188       -      90   
             
Non-GAAP \\$  53,763  \\$  15,054   28.0% \\$  27,982  \\$  7,835   28.0%
             
             
  Three Months Ended June 30, 2015      
  Income Before Provision (benefit) Effective       
  Income Taxes for Income Taxes Tax Rate      
             
GAAP \\$  46,824  \\$  13,604   29.1%      
             
Adjustments:            
  Restructuring (Note 6)    219     -          
  Sale of previously written down inventory (Note 7)    (2,098)    -          
  Amortization of intangible assets    1,709     -          
  Tax effect of pro forma adjustments    -      311         
  Adjustment to pro forma tax rate    -      (385)        
             
Non-GAAP \\$  46,654  \\$  13,530   29.0%      
             
  Six Months Ended June 30, 2016 Six Months Ended June 30, 2015
 Income Before Provision (benefit) Effective  Income Before Provision(benefit) Effective 
 Income Taxes for Income Taxes Tax Rate Income Taxes for Income Taxes Tax Rate
     
GAAP \\$  36,173  \\$  9,400   26.0% \\$  94,338  \\$  27,332   29.0%
             
Adjustments:            
  Acquisition costs (Note 1)    10,699     -        30     -    
  Acquisition inventory step-up (Note 2)    10,119     -        -      -    
  Fees and expenses relating to repricing of term loan (Note 3)    713     -        -      -    
  Amortization of debt issuance costs (Note 4)    1,629     -        -      -    
  Integration costs (Note 5)    11,850     -        -      -    
  Restructuring (Note 6)    24     -        1,007     -    
  Amortization of intangible assets    10,538     -        3,380     -    
  Sale of previously written down inventory (Note 7)    -      -        (2,098)    -    
  Tax effect of pro forma adjustments    -      13,211       -      1,128   
  Adjustment to pro forma tax rate    -      278       -      (430)  
             
Non-GAAP \\$  81,745  \\$  22,889   28.0% \\$  96,657  \\$  28,030   29.0%
             
             
Note 1: We recorded \\$8.2 million and \\$10.7 million of acquisition costs during the three and six months ended June 30, 2016, respectively and \\$2.5 million during the three months ended March 31, 2016 related to the Newport Corporation acquisition, which closed during the second quarter of 2016.     
    
             
Note 2: We recorded \\$10.1 million of amortization expense during the three and six months ended June 30, 2016 related to the step-up of inventory to fair value as a result of the Newport Corporation acquisition.    
    
Note 3: We recorded \\$0.7 million of fees and expenses during the three and six months ended June 30, 2016 related to the repricing of our Term Loan Credit Agreement.    
    
             
Note 4: We recorded \\$1.6 million of additional interest expense during the three and six months ended June 30, 2016 related to the amortization of debt issuance costs affiliated with our Term Loan Credit Agreement and ABL Facility.    
    
             
Note 5: We recorded \\$11.9 million of integration costs during the three and six months ended June 30, 2016 related to the Newport Corporation acquisition.    
             
Note 6: We recorded \\$0.2 million and \\$1.0 million of restructuring costs during the three and six months ended June 30, 2015, respectively, related to the outsourcing of an international manufacturing operation.    
    
             
Note 7: Cost of sales for the three and six months ended June 30, 2015, include the reversal of a special charge of \\$2.1 million for obsolete inventory, which was subsequently sold.    
    
             
             
 
MKS Instruments, Inc. 
Reconciliation of Q3-16 Guidance - GAAP Net Income to Non-GAAP Net Earnings  
(In thousands, except per share data)  
             
  Three Months Ended September 30, 2016    
  Low Guidance High Guidance    
  \\$ Amount \\$ Per Share \\$ Amount \\$ Per Share    
             
GAAP net income \\$  19,600  \\$  0.36  \\$  32,200  \\$  0.60     
             
Amortization  12,500     0.23   12,500     0.23     
             
Integration costs  3,000     0.06   3,000     0.06     
             
Deferred financing fees  1,260     0.02   1,260     0.02     
             
Acquisition inventory step-up  4,500     0.08   4,500     0.08     
             
Tax effect of adjustments (Note 1)  (6,660)    (0.12)  (7,360)    (0.14)    
             
Non-GAAP net earnings \\$  34,200  \\$  0.64  \\$  46,100  \\$  0.86     
             
Q3 -16 forecasted shares    53,800     53,800     
             
Note 1: The Non-GAAP adjustments are tax effected at the applicable statutory rates.           
             
        
MKS Instruments, Inc.
Unaudited Consolidated Balance Sheet
(In thousands)
        
        
        
        
     June 30, December 31,
      2016   2015 
        
ASSETS       
        
Cash and cash equivalents  \\$  354,275  \\$  227,574 
Restricted cash      5,559     -  
Short-term investments     71,373     430,663 
Trade accounts receivable, net     233,951     101,883 
Inventories      278,360     152,631 
Other current assets      57,995     26,760 
        
 Total current assets     1,001,513     939,511 
        
Property, plant and equipment, net    184,221     68,856 
Goodwill       592,605     199,703 
Intangible assets, net     426,983     44,027 
Long-term investments     15,230     -  
Other assets      22,879     21,250 
        
Total assets   \\$  2,243,431  \\$  1,273,347 
        
        
LIABILITIES AND STOCKHOLDERS' EQUITY   
        
Short-term debt   \\$  12,678  \\$  -  
Accounts payable      61,538     23,177 
Accrued compensation     59,360     28,424 
Income taxes payable     7,022     4,024 
Other current liabilities     67,092     35,359 
 Total current liabilities    207,690     90,984 
        
Long-term debt, net      696,906     -  
Non-current deferred taxes     102,101     2,655 
Other liabilities      55,124     18,827 
 Total liabilities     1,061,821     112,466 
        
Stockholders' equity:      
Common stock      113     113 
Additional paid-in capital     765,393     744,725 
Retained earnings      434,928     427,214 
Accumulated other comprehensive loss    (18,824)    (11,171)
 Total stockholders' equity    1,181,610     1,160,881 
        
Total liabilities and stockholders' equity \\$  2,243,431  \\$  1,273,347