MKS Instruments, Inc. has recently released its 10-K report, providing an in-depth look at the company's financial performance and operations. MKS Instruments, Inc. operates through three segments: Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD). The VSD segment provides technology solutions for semiconductor manufacturing, electronics and packaging, and specialty industrial applications. The PSD segment offers a range of solutions including lasers, precision motion control, and photonics instruments, while the MSD segment develops process and manufacturing technologies for surface modification, plating, and surface finishing.
The 10-K report includes an analysis of the company's financial results for the year ended December 31, 2024, compared to the year ended December 31, 2023. MKS Instruments, Inc. reported total net revenues of $3.586 billion in 2024, with approximately 42% from the semiconductor market, 26% from electronics and packaging, and 32% from specialty industrial markets. The company's net revenues from customers in the semiconductor market increased by 1% in 2024, driven by sales of lithography, metrology, and inspection products. In the electronics and packaging market, net revenues increased by 1% in 2024, primarily due to an increase in demand for PCB via drilling systems and chemistry materials. However, net revenues from customers in the specialty industrial market decreased by 5% in 2024, driven by lower revenue in the solar, general industrial, and material processing markets.
The report also highlights MKS Instruments, Inc.'s international presence, with approximately 78% of its total net revenues in 2024 coming from international markets, including China, South Korea, Japan, Taiwan, and Singapore. Additionally, the company's long-lived assets located outside of the United States accounted for approximately 59% of its total long-lived assets as of December 31, 2024.
Furthermore, the report outlines the company's critical accounting policies, including revenue recognition under Accounting Standards Codification 606, which involves identifying contracts with customers, determining performance obligations, allocating transaction prices, and recognizing revenue when or as performance obligations are satisfied. The company evaluates estimates and judgments related to revenue recognition, inventory valuation, warranty costs, pension plan valuations, stock-based compensation expense, and other critical accounting policies.
Today the company's shares have moved -3.2% to a price of $96.68. For more information, read the company's full 10-K submission here.
