Hot Growth Special Report 2006 >



MEMC Electronic Materials (WFR)

When it comes to semiconductors, most people think of Intel or Texas Instruments. But those giants, which make computer chips for everything from cell phones to microwaves, would be nowhere without MEMC Electronic Materials. MEMC makes the fundamental building blocks, called wafers, on which these chips reside. And simply put, MEMC is on a tear. Over the past 12 months, its shares have nearly quadrupled from about $11.75 to more than $42 today. Earnings have surged from a 2002 loss to $338 million, while sales have climbed 63% during that period to $1.1 billion. The main driver has been MEMC's focus on innovation. MEMC holds more than 500 worldwide patents on silicon products and processes and has more than 350 worldwide patent applications on file. And management is always looking ahead: In April, MEMC announced an eight-year deal to supply solar wafers to Motech Industries worth at least $1.6 billion in revenue.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

19.2 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

70.3 %

Return on Inv. Capital (3-yr.)

37.7 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

39.9 %

P/E Ratio


No. of Employees


Industry Semiconductor Equipment


Location Saint Peters, Mo.
Phone 636 474-5000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

MEMC Electronic Materials produces wafers for the semiconductor industry worldwide. The company's product categories include prime polished, epitaxial, and test/monitor wafers. Its customers include semiconductor device manufacturers, including the major memory, microprocessor, and applications specific integrated circuit manufacturers, as well as foundries. MEMC Electronic Materials was formed in 1984 and has its headquarters in St. Peters, Mo.

Data provided by Capital IQ
Nabeel Gareeb

Nabeel Gareeb, 41

Chief Executive Officer, President and Director

Total Compensation*

$ N/A

Total Options Value*

$ N/A

* Fiscal Year 2005

Executive Bio

Nabeel Gareeb has been a director of MEMC Electronic Materials since 2002. Gareeb joined MEMC as president and chief executive in April, 2002. Prior to joining MEMC, Gareeb was chief operating officer of International Rectifier, a leading supplier of power semiconductors, where he was responsible for worldwide operations, research and development, and marketing of the core products of MEMC Electronic Materials. He joined International Rectifier in 1992 as vice-president of manufacturing and subsequently held other senior management positions. Gareeb became president and CEO on April, 2002.

Management Team

Key Executives

Nabeel Gareeb; Ken Hannah; John A. Kauffmann; Chandrasekhar Sadasivam; Sean Hunkler; Brad Cohen

Board Directors

Peter Blackmore; Nabeel Gareeb; Robert Boehlke; John Marren; William E. Stevens; C. Douglas Marsh; James B. Williams

Executive Data provided by Capital IQ