MKS Instruments, Inc. announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2015. For the quarter, the company reported total net revenues of $172,387,000, income from operations of $22,205,000, income from operations before income taxes of $23,046,000 and net income of $25,522,000 or $0.48 per basic and diluted share compared to the total net revenues of $203,021,000, income from operations of $38,554,000, income from operations before income taxes of $38,945,000 and net income of $34,192,000 or $0.64 per basic and diluted share for the same quarter a year ago. Non-GAAP net earnings were $18,377,000 or $0.34 per share compared to the $29,052,000 or $0.54 per share for the same quarter year ago. Non-GAAP income from operations was $24,891,000 compared to the $40,779,000 for the same quarter year ago. Total revenue was down 18% from the third quarter and down 15% from the same quarter a year ago, primarily as a result of an industry-wide slowdown in capital spending, which occurred during the quarter.

For the year, the company reported total net revenues of $813,524,000, income from operations of $156,612,000, income from operations before income taxes of $159,468,000 and net income of $122,297,000 or $2.28 per diluted share compared to the total net revenues of $780,869,000, income from operations of $135,142,000, income from operations before income taxes of $136,393,000 and net income of $115,778,000 or $2.16 per diluted share for the previous year. Non-GAAP net earnings were $119,073,000 or $2.22 per share compared to the $101,179,000 or $1.89 per share for the previous year. Non-GAAP income from operations was $163,870,000 compared to the $145,229,000 for the previous year. In 2015, free cash flow was approximately $125 million, up more than 40% from 2014.

Based on current business levels, the company expects that sales in the first quarter of 2016 may range from $165 to $185 million, and at these volumes, non-GAAP net earnings could range from $0.25 to $0.38 per share and GAAP net income could range from $0.23 to $0.36 per share, GAAP net income could range from $12.4 million to $19 million and non-GAAP net income could range from $13.6 million to $20.2 million. The net interest income is estimated to be approximately $600,000. The company expects first quarter income tax rate to be approximately 28%, reflecting projected geographical mix of taxable income and also includes the effect of a U.S. research and development credit, which was reinstated in the fourth quarter of 2015.