"Key customers are intensifying their efforts to reduce manufacturing costs and improve production throughput efficiencies, giving us significant opportunities to demonstrate how ATMI's products and technologies can improve their production yields, reduce their overall cost of manufacturing, and speed their time to market for new technology ramps," stated Doug Neugold, ATMI Chief Executive Officer.

Nuegold expects memory manufacturers to start significantly ramping the use of copper interconnects in 2007 and beyond. ATMI is a leading copper electroplating bath material supplier. NOR Flash manufacturers have started the migration Nuegold stated, with several NAND Flash manufacturers starting to use copper in 2007. He expects one mainstream DRAM manufacturer other than Micron to also start migrating to copper in late 2007 or early 2008.

However, ATMI's CFO, Dan Sharkey remarked that revenues for the next quarter would flat due to slowing wafer starts in the third quarter and flat wafer starts at foundries.

"In light of our strong second quarter results and the prospect of a relatively flat wafer start environment, particularly at the foundries, we estimate third quarter revenues in the $80 to $85 million range," said Sharkey.

Nuegold noted in a conference call with financial analysts that he expects a short-term softening in wafer starts in 3Q06 with a small increase expected in 4Q06. Overall wafer starts are expected to be up 3 percent, which is inline with recent SICAS numbers. The flat ramping at foundries is being attributed to inventory build, which he expects will be back to normal levels for the fourth quarter.