S&P says ATMI unchanged

Standard & Poor's said ATMI Inc.'s ratings are unchanged including its corporate credit at B+ with a stable outlook after the company announced a definitive agreement to sell its gallium-nitride substrates and epitaxy business to Cree Inc. for an undisclosed amount of cash.

S&P said ATMI's ratings reflect volatile industry conditions and substantial technology risks, offsetting the company's good position supplying specialty chemicals to the semiconductor industry.

The GaN sale is part of ATMI's plans to divest its equipment businesses and focus on its core specialty materials operations, possibly including further compatible acquisitions.

Because of industry volatility, limited profitability in the equipment businesses, and continued capital expenditures, ATMI's cash balances declined $37 million in 2003 to $128 million at Dec. 31, 2003, despite a 25% sales expansion.

S&P said it believes that liquidity is still sufficient for operational needs but it will reconsider the outlook or possibly the rating if cash balances continued to decline significantly. Divestiture of the equipment businesses should help the company to reduce its capital expenditures and contribute to operating profitability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.