MKSI - Earnings call transcript Q3 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference Mr. Officer, begin. Financial Chief Bagshaw, sir you Seth

Seth Bagshaw

Executive operating Great, we Senior Officer, Vice of you results Good Senior target morning, Vice our and Lee, Chief and Seth Bagshaw, for financial for everyone. I'm conference which Chief Colella, President Jerry joined XXXX Officer. President morning thank our and our our this President John well model, you. our Thank I'm updated by Officer Operating and call. and Chief Yesterday non-GAAP third quarter lower released earnings joining after as as market interest closed, reflect the XXXX expense. Financial

You website www.mksinst.com. can our at this access information

with date the obligation measures the As these update or only contained factors, measures. as and these any including plans differ for Today's result are results on release, a GAAP of the year about important today, may includes make which for statements of Company's today, to relied December release. annual Company's not any remarks in from various representing XXXX, in discussed views XX-K represent statements. SEC. future be These as should estimates in upon to we also call non-GAAP on of those expectations Company as is indicated Actual our file disclaims as yesterday's and Reconciliations subsequent statements and the report financial materially statements. to earnings XX, reminder, a by adjusted expectations, MKS press yesterday's various that those prospects comprise ended forward-looking Form

XX, acquisition first closed pro if beginning certain to which as XXXX. XXXX, we'll April quarter of had Corporation, Newport the occurred the In addition, of on of measures refer forma

the turn to Now, I'll over Jerry. call

Jerry Colella

the I'll fourth everyone morning on of with results provide in today. then provide for third begin and joining our our quarter. good outlook call an several and Seth, quarter thank highlights XXXX, business markets on our for the us you Thanks

over specific we'll the Operating to turn Senior in then for provide I'll results the on President we that, and John to open problems. complex applications solve Lee, will your apply technology customer Seth Vice how call and financials Following information our to further details Officer call and additional questions. customer Chief provide our

me last four business strategy growth. about years, our the Over you but heard managing talk and the of profitable sustainable

We have resources strategic growth financial what facing areas as critical quarter that application achieve our our support such putting solved customers problems, have solutions close facets innovative as to our this done also in generate we investing streamline results. to by proximity sales providing localization. and solutions. the technical strategic as to a customer these and investments in technology most continuing over high These well technical operations, call result invested We've with long-term impact significant improving helping customers, a financial continue resources strong as had in this us goals, we our performance

We broad families. that are to emphasis laser a of across our opportunities the with invest in on number and power our particular we see technology company additional portfolio encouraged solutions

factor deciding ago. revenue XX% and our an million $XXX quarter With pleased of to we've third critical regard and of our announce we're a ensure quarterly we're record to long-term seek to always from achieved increase customer's year will We success. results,

Additionally, we share. per set for or a $XX.X new $X.XX earnings million quarterly non-GAAP net record totaling

continue We across see strength business. to our semiconductor

for an XXXX. Year-to-date calendar is our a year which increase revenue growth million XX% year rates that consensus the $XXX up almost was ago. was revenue over estimates of WFE semiconductor quarter Third XX% from double

year new $XXX ago. a increase record year to division quarter all-time Our light from and also motion this and third extremely I'm was million this pleased well. perform to that of division's continues an report another XX% revenue

by customer strong always and approach motion to on success light Excellence all for our Solutions award are the focus been for MKS Power the to operational we're Lam's of follows MKS this honored leveraging outstanding division. and RF instrumental Supplier one improvements operational QX, we core excellence Award across largest award Lam We excellence business. applying aspects these and new engagement. competencies have the In focus providing was Operational and MKS' customer in This customers the XXXX our launch selected Research collaboration. of XXXX for ensuring the products technology marketplace. successful This of acknowledged our received

fastest named one very I'm global for that announce Fortune to Additionally XXX growing by companies of proud was XXXX. MKS the magazine

three-year overall to total XXth, our addition XX their for return. In ranking of ranked MKS was

semiconductor strong customer in advanced see to other product forward, positioned high the and leverage Looking the strength markets our we serve. broad we relationships market well we're and and continued portfolio growth

of seeing are opportunities activities and ahead Our acquisition. from Newport of we're strategic this plan growth excellent tracking integration

earnings Finally, could turning expect to $XXX and range may like from on quarter call income GAAP to range from Based we to levels, net $XXX $X.XX business the to revenue share. would the from diluted I John. per could at million, per now in diluted outlook. share turn lines these And current $X.XX XXXX of net non-GAAP that range fourth to $X.XX over to million $X.XX

John Lee

Jerry. Thanks

we're business. is innovative to One support particular operationally outperformance and customers of to portfolio. most our Jerry power them mentioned our in across strong seeing overall our contributed to difficult the of As the our entire note solutions our We approach technologies, believe market the problems our has that the area of growth combination solving semiconductor ability collaborative market.

in past this several investment we've technology of in seeing substantial the and and For business people we're made benefits strategy. significant years, this

by XX% quarters revenue XXXX. tripled the three more is WFE than was XXXX, first challenges This of of XXXX consensus first estimates need for growth. The compared increasing driven continued and power NAND the increase For quarters the up are almost layers logic solutions accelerating of processes for multiple three the to of power and deposition innovative number the and etching for the in for patterning use for the solutions. DRAM XD

on leadership our technology devices processes build to and ensure are advanced invest these to continue will that We realized. and

into power on drilling. These market, market, and used used customer advanced market. a beam printed Korea, semiconductor this includes of solutions for focusing motion marking core Japan won In manufacturing. the laser and discrete control such circuit in the processing In figure third solutions. require won which mobile and powered motion we for large boards, fabricate control quarter, application. been eight cutting components, lasers surfaces that very phone our the order measurement portfolio that flexible our laser also fabrication and profiling laser of can to we MKS our manufacturing significant lasers also as to applications technology a modification precision Laser selected application provide lasers. company order ultraviolet a broad same measurement, only precision a is for materials of we've in addition In

expanding focus our and strong customer geographic to continue capabilities high technical growth support to markets. We on

Korea. similar revenue Over in we been from XXXX. in the last several the successfully double than localization technical we've will deployed China to more impact our years, one our has Korea strategy implemented this strategy of region in The a direct as significant,

XXXX, fact annual to In from increase our XXX%. since revenue more Korea expected than is

investments within support growing opportunities in the us China Our well this market. to position

continue residual to our see market acceptance. example products gas strong For analysis

semiconductor is currently recently ramping fab the For production.

for major on to our Seth, for call further cleaning In choice point ozone substrates like will results. details At this of to turn fabs. continues who provide a display over delivery financial dissolved technology I'd addition, all to solution be our the

Seth Bagshaw

this results at financing cost in recent expense tax GAAP XX.X% revenue quarter or growth was cover in amortization QX, million. and the other grew term and remained million our Thank The $X.X the $X.XX revenue our in levels repricing. and were we strength share interest September investments expense levels. strong balance as million. Non-GAAP also X% in margin both at compared advance GAAP which of per $X.X high $XXX,XXX our the operating which million of non-GAAP income $XX intangible markets $XX.X well XX% and includes was $XXX non-GAAP to and the of amortization included to of the approximately level. our were non-GAAP you, had XX% both respectively semiconductor guidance. per $XXX operating was third record very of revenue Non-GAAP million non-GAAP On remainder guidance was our John. discuss million expectations US to margin our represents integration operating loan quarterly $XXX million of in as to quarter. expenses GAAP million international net rates and million revenue for were new to range, XX.X% $XXX Revenue GAAP XX, QX, within short-term Business XXXX I'll related XX% or in earnings record. in financial $X.X million revenue was increase was $XXX million the to an million sequentially. compared XX% of interest operations the in which which reflecting also expectations $X.XX a was and and we and our within X% strong $XX XXXX share. net these due loan leverage quarter the XXXX. million in quarter grew continued most and $XXX expenses term QX, at assets, increase for $X.X of cost gross customers from cost of deferred serve cash And of of end

annual since XXXX successful reduction quarter costs. model, net spread, $XXX times. in accordance is third and to per actions origination quarter reduce of an EBITDA April basis result execute completed quarter, in trailing XX, earnings $XX achieve as loan. $X.XX XX non-GAAP The to adjusted additional XX-month an totaling website. operating prepayment impact in XXXX recent the balance or XX%. financial are also of net our term share non-GAAP being net projecting annualized our these prepayments one basis to million third EBITDA our million. our sheet we under term principal updated is quarter we continue we on target posted to ratio was completed we was million additional and of an the spread Furthermore, repricing loan most two reflected our strategy as the rate $XXX Adjusted We the results the of leverage on by our interest our our voluntary and principal recent fourth a interest amendment interest rate ratio loan delever our and expense our approximately gross interest targeted Also basis, In in the with in reductions now reduced which voluntary point for

the and we noted for During received S&P as both investor the upgrades both which also financial delevering performance services these basis quarter, strong of continued and Moody's upgrades. a

million $XX a share. per million, Capital We $X.XXX stock balanced capital additions was we a continue and during paid the amortization expenses deployment depreciation cash million were were quarter dividend to the with for $X.X and $X to approach and provide quarter compensation million. $X.X of

also or strong cash for generated quarter which free $XX was the sales. flow We of million XX%

to inventory record revenue from the cost remainder very third In light of third capital, in motion quarter million growth the second reflecting the annualized motion in quarter of to light quarter outstanding second improvements the achieved in income of terms million and doubled XXXX the day cost X.X several X.X were working strong of turns non-GAAP and division of in these generated ago more and are mentioned projecting quarter, times year in division as Furthermore synergies revenue days the XXXX. the quarterly Jerry completed sales compared XX operating motion results times we XX divisions a the compared are to the $XX the of quarters. the pleased synergies we another days complete and quarter. light $XX and the structure. next significant Existing financial than new with strong this with and

XXXX rate QX Finally to our estimate $XXX margin is reflecting current could range could million. the GAAP expense be non-GAAP our from estimated $X.X product and to be business approximately range non-GAAP from these operating a fourth XX%. Non-GAAP interest guidance. turning in to $XX non-GAAP and XX% million to our QX, gross and and Based expected we levels could from upon range million sales quarter QX, $XXX volumes that million tax to XX% approximately mix $XXX expenses could million,

to approximately to $XX.X assumptions, $X.X these million our Restructuring million. $X.XX intangible assets $XX.X to approximately or expected fourth non-GAAP interest estimated interest $XXX,XXX. be $XX.X approximately Given net share. approximately to be approximately $X.XX income quarter, could amortization per $XXX,XXX. $XXX,XXX. quarter earnings the million Integration charges to fourth In range expected expense are related be And be be to GAAP expected to costs million. estimated from

XX million and open $X.XX or expected per we call GAAP questions. are share million for $XX.X This outstanding. remarks to $XX.X the shares Our million, net prepared to income the range now approximately $X.XX concludes

Operator

Ho comes Deutsche our Instructions] line from the first Bank. question from and of [Operator Sidney

open. now line Your is

Sidney Ho

My business. question is for your semi

that. look year a you've get you years, XX just basis, the points another do on back year? solutions forma year of know strategic you something Can like market about couple If pro or notch is main really I you you how to what performance. think the a outgrowing talked and at then you been some power areas importantly next last the of more up probably like And but difference talk about this about this in like up your terms business.

market rate and base on instant First design current the activities.

Jerry Colella

Sidney. Yes, you well thank

focusing the technology support people to of really that on of goes ground make and their advancements is own I years Coast on development. our in an investments and more and in really significant was application enabling back the that really numbers type Korea think made it and ago West the product we example customers

think So localize ones, we paid the for really board the OEMs across point. we this - off is with the at in smaller big major I certainly there Korea as have strategy as the well way us, all are a wins

growing worldwide China. you some users terms capable them dividend seeing to to look to think We're excellent I in all that share be in end gaining We three those the partner, roll places that those won't where at we of into company MKS' financial has we there something years just, partner. targets operationally one programs the that in from to appear see vest the gains won value a continuing partner, significant competitive are continue had we and They're our I trusted thought if last a also business the but or close get awards had partner, we a four from internally the in technology here, look, and keep we've of way, the was we paying partner, or a a OEMs. footprint to business

our year. So investment and few technology, customers, to various just the years in in I think just particular it's people, in in the markets all coming last made there it's this

We maybe focus we will reflecting like our in it's hopefully that would on whole growth WFE to our continued China We for is are just customers whatever positioning ourselves rate, year, [indiscernible], displeased reputation. X%, to didn't if think we so be investment strategy pay continue next growth. AMEC that up continue companies it see I the outpaced dividends with and

and I think they we are providing we're us have capability a tremendous that the brand, we're well coming respected need. them a customers company and to

Sidney Ho

we us as great. My about your with and you benefiting customers you're etch similar and semiconductor inspection you That's it and customers. How or the your versus customers those thing from metrology, should in and side. Can etch beneficial and us $X etch spending is helpful. lithography the in That's having clearly in follow-up etch market billion understand have litho set is, is WFE with $X you increase And share to think billion spend position new more deposition. your customers opportunity understand metrology help of dep dep dep it inspection. your in think with have share help is you for question in Do and better investment aside, that. can to you a follow-up in

John Lee

The as customers and we brought that potential and would to them, is have litho relative gain etch, Lee. were John Sidney, I the is with within them say more but Newport well. in in that with acquisition this there dep share inspection share our to customers good

as grow see then question on share, your for respect growing pushed has couple of both but been well better prefer in that's with out those is so the we're even we customer segment see course opportunity would great dep years, share etch but EUV that now to so litho And a both dep for more when to that. actually business, grow, is, we dep grow etch of OEMs both versus planning certainly last benefit good and that's been base. etch we The as grow gains So to our litho and and we and see, of those right and because and

Sidney Ho

you very Thank much. Great.

Operator

question line from next Amanda our And comes Citi. from of Scarnati the

now is open. line Your

Amanda Scarnati

bit go this detail applications mobile awarded of Can were else a that it the you. just on quarter, latest little you it into on mobile for Thank kind more devices from was was or there? OLED something

Jerry Colella

mobile for processing opportunities. related PCB of was Well win to eight for there application, One manufacturing. material were couple device figured

As we circuit printed well construction flexible for had in other as the boards. of Korea win that

device related both and are related really are manufacturing. to OLED mobile to PCB So construction the those of in not the

Amanda Scarnati

you little a bit And talk can just about then the?

Jerry Colella

Although business continued in business that the for there. though area Amanda, tell ozone our just there's happened OLED two amplify. will we we These to wins you I clean so process, be laser construction to wanted do with have new our

Amanda Scarnati

can then the lasers the and into talk through you new the or trajectory business, of of Newport OLED about right [ph] further other All expanding XML either kind just acquisition. products

Jerry Colella

I'll tag team on this John one. with

John Lee

Yes, Amanda us additional certainly that family have weren't that we available up just into brought of the opportunities OLED Newport that with vacuum the that products fact certainly manufacturing products. opens of set portfolio to in the MKS

more used in MKS, clean So of optics was ozonated original lasers the have the now also both that are have but OLED that the a and we we manufacturing. lot also

our market. in expanded actually OLED it's the and So presence

Jerry Colella

interesting invest of And been the think important. is for OLEDs and kneeling level lasers to about improving company. always very that's technical we the a divisions area and in our We've asked the process for trying

RF in a look it's we pulsing did capability what about dep. generators the for we that's other little applications raising interesting the it in and but or a capability, kneeling area And before power, ended years laser strategic and us. it's at time we an and investment our laser ago for dial on at XD a customers up and raise power the be was we for for business based etch the which think side has interested bit the becoming more an a time you had, led that NAND weren't really the on investments we of it the in how it, whether frankly pulsing opportunity So developed business, our interesting applications will continued the is

working us us on to hear are that. continue with will we you see that about eventually and where So talk

Amanda Scarnati

Great. Thank you.

Operator

question America. from And from Sankar Banc comes Krish of our next

now is line Your open.

Krish Sankar

I you number semi million. few questions, to it vacuum between had Is a was one break $XXX your way light Jerry motion? said there revenue and down a and

Jerry Colella

million Krish Yes, $XXX so that $XX on side, and Krish. the let's for you get I the - analysis so motion million the L&M the in side, can light and Yes million. about $XXX QX, on see vac

Krish Sankar

September? Got you operating it. very guys margin That's helpful. And what say L&M for in the was did

Seth Bagshaw

to $X that quarter again million growth we're based the million $XXX we place quarter. and another revenue so Yes, with $XX yet record by which went in and the new structure the doing the one little it million $XX and probably to going in million division profit was of call operating more of record is volume of $XXX division the But back the go. operating ago, XX.X% the $XX a and it a revenue that year, was I'll not said income that million XX.X%, done going we're was cost $XX way, is for year about activities XX%, there in was obviously XX% call and is million all so a about on that on million been have in pace

Krish Sankar

motion about can point. lasers upon give touched the update that's this [ph] on you Got I guys products and the light on in incumbent any at it, you there and us different think past that then side with new XML update the very approach is like have then helpful front

Jerry Colella

The the have, a that capability XML competitive not [ph] lasers that's we are product.

of low industrial with based, this alluded provide high look pursue teams. is and and dial manufacturing power to the see multiple continue to of a level of power going to that raising dial more that think to capability that, for to based and is invest of results our and OLEDs power lasers continue kind with we added we power type the kneeling is lasers I Amanda the we that from rise there to us. other in at Ours just can We opportunity good beyond the of

to - to over Krish else hear invest probably do number you'll that pursue hear want anything John, you have you us next add but that the you'll more a quarters continuing about that? So specific little of technology. and we're

John Lee

exactly right. That's

Krish Sankar

and exposure other or OLED question Jerry for for or the have cleaning John. water it you Got either Today due? is devices you any final the one all then do purely your ozonated products

John Lee

vacuum [ph] so kind OLED typical steps for Krish as the Yes, it's have vacuum would of kind and so well. had capsulation instance and John. vacuum well so chambers of also process deposition those and many NTS the them for on products

Krish Sankar

Got it, congrats again. Seth Jerry and thanks John and

Operator

our the comes question from Ho next line And from Stifel. Patrick of

Your now line is open.

Patrick Ho

have what first you're done managing your very you change guys start, and environment. in be with Jerry are you supply seen getting up Any off maybe really Have we demand your lead need, this but expectation of also times the in customers? this of is high customers customers dynamics potentially more in changes of, dynamics those the okay where any semi maybe ready this longer supply you chain themselves demand well “next heads to quarter”. quarter or giving those for

Jerry Colella

receiving lead in really our suppliers, good see our times. our we anyway don't receipt from Well standpoint, shape pretty from extending a there, we're any

we continue are for [indiscernible] its Our ahead and stay most lead next good continuing increase we X.X, and there Probably is management year had so supply our our markets a can execution. time in of capacity only chain outsized you'll of growth. so its the because is but of want our any the that our We we to is time, make terms We're at inventory through and capacity some is all in always capital capacity. storage so markets in respond turn sure fact and that of right long-term extrapolation. our factories strategy a part to pretty jump see sized think growth of of

us of the staying part guys ahead for and award XXXX from of go as and our and us growth are our the they us customers and continued won well are gave always to ready As and month operational we be make about a feedback pretty said we that and products about so already ability that from to a pace be next concerned, always they because the in growth looking from of asking was some customer in numbers XXXX I we getting at production. ones you're they for, are. ready we've gotten just the customers ago beyond was I new you mean sure in to thought should XX, execution some Lam positive the are in zero

for to are time and excellent weapon So both grateful in operational chain our supply and short-term procurement our suppliers a the we're long-term preparing and job for be a managers they very our keeping step. customers long and for us. people us good It's saying, for been ourselves ready. We're our do,

Patrick Ho

Great, this kind but of before that's to know in question. update. helpful as asked have get maybe follow-up the I past I want an and a

an part or kind the on synergy that much update how that's the revenue still of Newport you've that that are new things. and is about new or of about next opportunity the two, the combination introduced revenue talked past that? of forthcoming company of big a talked and two over following that's products, also on side for some the You companies but the products few years. of the give semiconductor synergies us potential deal One particularly thing, can you've you in

Jerry Colella

tag I'll John one. on this team with

wins the of for matured the are the application attenuation ISP customers were processing cross relationship in Korea. for in about quarter. that's seven they two have that of was Korean we talked a large group Both our one to both result them in flexible so sell and were also wins for another last cross one it piece another we our wins, we for win, and win good group laser the were figured one continue call of to laser the marking So Korea, for be seven which which had of see. the our part Newport We we of for figured sell

So coming if that there's to in. color know opportunity he I'll any wants see these over we add. more We continue overtime. to other to John turn is Patrick there

John Lee

Yes, really so excited I what potential the Patrick we're is think about.

really to So wins design of now have revenue a larger we know about before going reflected of actually have when that, ramping, some into capital which so what we now. gets the we already And believe you be it you design period so examples and we excited cross qualified start there's in happening that's that which that's and time few not. we're those are of have and a been so as really opportunities some volume are received of later on, of these something design a share, [indiscernible] some you

Patrick Ho

Great, very much. thank you

Operator

question Another from from line next Weston Twigg KeyBanc. comes of the

open. now is line Your

Weston Twigg

that you for pattern and could those a give your if couple of of December into from a up ahead just be business? semi had just you look March, see kind if would noted I March Lam questions, likely I'm wondering first us own same shipments

Jerry Colella

I a us. they lot two of guidance what what our say track their business a do. little all like prepared out for frankly that our to Well and accurate faith have far us. think pretty they people I that's of versus Martin prediction. for largest our are customers all that of their can level about higher telling out us love I always give but I - in a tell keep customers, customers But you I Gary and be

to that, is guess benefit So see my expect if to saying a from he's that. be expected up, it we

Weston Twigg

than see that yours? Would quarter you customers, that say given a typically your earlier

Jerry Colella

a time, Yes, [indiscernible] quarter about Wes. ahead of

pretty to good predicting somewhat be what this had down. quarter we were quarter people a I think versus

versus think with us. minus good [indiscernible] X%, relatively in people semi pump a that flat the I indication we're industry saying so that's

Weston Twigg

and semi analysis us can and Got also for the guidance in between light the mix mix then the it, you okay. QX, non-semi? and help vacuum and understand and And motion between

Seth Bagshaw

granularity Wes, of yes lot semi quarter. but versus expecting then total inside QX think market, by this move be Seth. don't company, in quite we we But the a that line the motion It's around relatively can weren't we top that continue challenging we be bit any a deviations, get to we we guide of fourth expect consistent level. growth. kind QX, is again going I in because think forward granularity of light major think level And the and do I company at expand but things to

Weston Twigg

Very you. helpful. Thank

Operator

Instructions] comes D.A. Tom [Operator Diffely Davidson. the next of and question our line from from

Your line open. is now

Tom Diffely

a look business. of little side the in the to like light more and I'd motion

You talked level. record growth XX% year-over-year about

think side. space and Just from side? growth just the kind of growth growth nice curious, the for was is It what semi seems coming the laser do on you market that

Jerry Colella

model. four growth have so the in light typically, just their that customers growing Well X% they've focusing the centralizing and in sales aggregated just to of certainly result I. the sorry on demonstrated in believe the the got average and is motion think of markets member excellent really so, all X.X of MKS and operations onboard great and markets of second work total being X% of team and all the the the Tom the together, operationally centralizing part is question, average In pretty I times or last years path growth that the X% rate a bit so interesting does

Tom Diffely

I'm wondering semiconductor from or and of growth laser side. the light traditional more the motion coming if the part is

John Lee

And kind of as litho led Lee, control, is processing entitled a measurement such John and mentioned it's it both. products side. of we and inspection the also so addition industrial power market on Newport that's products. within it's our from market It's the the Newport but which share growth in as lasers Tom, markets, many in the so draws by optics and and actually materials call, portfolio laser gratings other motion of so semi whole

Jerry Colella

all the things good now brand they strategically when - of acquiring of that that Tom laser, will a think really I went the different decided the executives One that Newport we prior we've companies they was names. strategy surround a bought, really

decentralizing the of because been sales have shouldn't it team. as wasn't execution the think I

optics great when really sales more think company said and working the view have respected sales perhaps we brand, sales more laser had centralized they're But a business well growth group to of very, years. under very strong we and continue opportunities as of team that laser next and they our all continuing to people then surrounding that. done leadership demonstrate for that's and So I I we And I the team I an why the company be before think sales, individually. the believe number Spectra-Physics over a will they a the will of end would hard. really a that, which the photonics bring had bought a laser and is part well-known reason with team

Tom Diffely

It Okay know kind like plus sounds X% that growth market. growth and in market. the the about you I still single-digit low semiconductor you talked of expect laser in

Jerry Colella

external beat growth. can't would XX if to us WFE expect my growth I is going for from the And than is about, amount, be we're be and guess following would mean XX that. that what about the to is, what I resources number tell we just general higher X% I disappointed. just was motion X%, Well the by a or WFE light whatever significant I see industries the

challenging quarter and my we're them markets light that. outpace expectations XX%, Given business them unit was pretty on focused growth will see we do We've to some their as continue the fact put the we motion year-to-date well. growth, and we're targets XX%, that, got the interesting that all to on is last it so

Seth Bagshaw

think pretty a up to semi markets and for year that participates another XX% the L&M It's growth QX in, XX% in driven ago so it's of interesting too and not QX, revenue, XXXX it's the versus non-semi motion it's broad Tom, light the semi. the actually by you all based

Jerry Colella

Yes, this business the manufacturing interesting for surround to in us. and is process the that things added very market industrial all lasers

Tom Diffely

Seth you. great. Okay, then And question one for last

driving that I it that, in the contract is think part of loan, your what's your the some mentioned rates you point XX basis specifics? or is reduction term on

Seth Bagshaw

for and EBITDA Yes, X.XX that, once XX-month and we that amendment captured July step we kick ratio that we basis a it basis XX in or XX amendment a down we timeframe. and in lower ultimately contractually and believe and that the so trailing basis in and reprice points, timeframe achieve in will July so generated got the of to XX put that reduction XX we would part in had get will we the debt we when exercise November into of points

Tom Diffely

Great. Thank you.

Operator

At back this Jerry like remarks. turn to time Colella, CEO the over closing I'm showing for to no I'd further call any questions.

Jerry Colella

in very progress sustainable objectives continued pleased growth. in of profitable our achieving We're XXXX our you. and with thank Well,

new the investments revenue the net result in This non-GAAP we'll are of for to set service. we continue a quarter and strategic and earnings records make support again product made of development, application which sales, we've direct areas and

year our that wide call updating throughout today you Looking we MKS. our forward markets and continued when and your we serve. see Thank you. report in customers quarter on of joining Thank a growing for problems ahead interest complex XXXX and range our you progress, solve the for large look opportunities on We full continued fourth the new our to we financial results. us

Operator

thank This participation and may program all today's a great for in gentlemen, have you conclude the day. and conference. Everyone Ladies you does disconnect. your

MKS Instruments (MKSI) 25 Oct 172017 Q3 Earnings call transcript