MKS Instruments, a supplier of technology for semiconductor manufacturing and advanced electronics, experienced a significant disruption to its operations due to a ransomware attack on February 3. The cyberattack had a material impact on the company’s business systems, affecting its ability to process orders, ship products, and provide customer service. This incident, which also impacted MKS Instruments’ photonics and vacuum solutions divisions, is expected to reduce the company’s revenue by approximately $200 million in the first quarter.
Originally, MKS Instruments had projected a revenue of about $1 billion for the period. Following the discovery of the ransomware incident, the company suspended operations at some facilities, as detailed in a Securities and Exchange Commission filing dated February 6.
As of the latest update, President and CEO John Lee reported that the company is in the recovery phase, with operations at affected manufacturing and service facilities beginning to restart. The company anticipates that these operations will be fully restored over the forthcoming weeks.
MKS Instruments has reported the incident to law enforcement and is conducting a thorough investigation to determine the extent of the impact, including potential costs and possible reimbursements through cyber insurance.
CFO Seth Bagshaw expressed confidence that the company would substantially recover the lost revenue by the end of the second quarter. In addition to engaging incident response specialists, MKS Instruments has also notified law enforcement about the cyberattack.
The ransomware attack involved the encryption of business and manufacturing systems, and there is a possibility that personal data may have been stolen. The potentially compromised information includes names, addresses, Social Security numbers, bank account and payment card details, health records, compensation data, and other personal information.
MKS Instruments reported a strong financial performance in the fourth quarter of 2022, with a record quarterly revenue of $1.09 billion. This figure marks a 42% increase compared to the same period in the previous year and surpasses the company’s highest revenue guidance.
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