ENTG - Earnings call transcript Q3 2018

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

Operator

Good day, everyone, and welcome to this Entegris Third Quarter 2018 Earnings Call. Today’s call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Bertrand Loy, Entegris President and CEO. Please go ahead, sir.

Bertrand Loy

Good morning and thank you for joining us today.

call, our like Relations, new this minute take Bill begin introduce to VP we I to would a Seymour. Before of Investor on welcome board. Bill, And for the invaluable XX years. acknowledge who I led past like Steve has efforts from Cantor the IR our would also contributions to Steve, of Entegris, everyone thank best and very on for your the life. behalf wishes next at you chapter of you. back to Bill,

Bill Seymour

announced Bertrand, good quarter. morning, the we financial and today third results you, Thank Earlier our for everyone.

press our release our You can of access copy entegris.com. on a website,

Before I our like These to defined G. refer and remind comments call and of are to today a measures reports financial by with statements. the non-GAAP SEC our which risks filings involve this we we forward-looking outlined the would will begin in On Reg as listeners in and uncertainties also will that include statements detail number some SEC.

as as website. You today’s press can release reconciliation in find on our table well our

Greg it call Graves, the On I to back will today CFO. our Bertrand. Bertrand are and hand

Bertrand Loy

you, will Greg news more quarter results morning of the on into recent comments some I for semiconductor outlook the will will and some I with guidance remainder year. the context make This and fourth our provide third also quarter. performance the our will put financial on follow the in industry. Thank Bill. details of our for

for line open then questions. will the We

Results points of that sales value Year-to-date of and business broad as strength and XX%, sales XX%. achieving driven third we our basis by quarter delivered while our year-over-year of growth grew percentage three line outpacing the we our solid demonstrated quarter, third across non-GAAP We EPS our generated our up unit $XXX improved the a guidance. was our XXX in divisions, million EBITDA. over model. our the markets, revenue EBITDA grew During the resilience in execution, results, of and platform, of XX% the with all

of the expectations quarter Entegris, first Sales quarter well. in our proceeding the Pure Gas. is third SAES the the of and SAES to integration newest exceeded Finally, full was addition quarter the

perspectives of and impacting Now some classes were levels across with positive devices. most production our let largely in me the it start semiconductor how QX industry business. is on Fab environment

expected quarter However, there spending have and we makers. our discussed in as as push some call, capital at particularly second been outs, memory

and As you across all driven know, all of chain. unit of sales customers supply types are our the semiconductor mostly are parts manufacturing and diversified

clearly fluctuations industry This So spending, while muted. we short-term are our is recent results. the relatively to can immune seen be capital in the to in us not impact

was addition record Korea, slowing a X% capital of has industry by were can offset at While you tool in several our in as sales the were spending sequential quarter, modest CapEx sales and be basis. experienced modestly SAES of in year-over-year makers half. organic as in the our on expect, fab demand production wafer steady continued significant sequential driven well in the shipments down geographies a sales, our declines We performed weaker NAN-related seen a new and first across after construction would partially products. up which This memory

the in sales and opportunities Sales Taiwan up sales weakness strong at expected driven fab production, reflecting higher respectively, up equipment in to they sequential makers. and activity, grow impact in and manufacturers, no XX% We did, respectively were fab North XX% America year-over-year and by the and China by XX% and to offset XX% Japan chemical of acquisition. stronger transitions SAES increased the

cloud will that as mobile fabs boost aside, artificial secular mainstream intelligence, to levels production very devices and our Putting Europe. sales steady computing semiconductor attractive beyond drivers virtual-reality, IOT, to Finally, PCs continue in be and demand transition continue we automotive applications. the trends short-term demand in believe to industry

growing be will starts GDP wafer expect we the twice to at the least over come. of rate result, years a As

grow of architectures More greater significance Entegris, the new need to continue purity for for the become and device more as materials importantly complex.

We technology As operates in a from more crossroad chemicals roadmap product protects moves materials is materials. new portfolio the ago. highly at the of of achieve result and engineered helping advanced of across most we materials At of core to to a semiconductor yields the pods integral we higher and solutions record resist the these short thought critical reticle and We to the in proposition portfolio the Entegris device possible edge advanced array wet industry levels advanced our our third customers and solutions never categories filters been capabilities reached a ecosystem. have of performance have a process filters, that the and purifiers, quarter. materials. filters, industry, not deposition AUV of and the our several across and purity part broad including demonstrated reliability and photo sales these in time value device bulk broadest

for the and excited are a layers of NAND new of In new X-D including filters nanometer addition, about new launch very above and upcoming we materials XX products, X of range a series sub devices.

PSS a the of trends. resilience headwinds, line our business well of and conclusion, channels the our delivered address are good with year purification in is logic very showed both of new both to for The customers’ ahead integration bulk despite of results advanced PSS opportunities. the heightened portfolio access some acceptance our largely both In also the are third integration analysis, complete market pleased our to quarter. very yield more and CapEx and we our issues. gives of sales in SAES makers the recent sizing cases and of we gas instrumentation of capability tracking costly to half in have industry In original and to Gas. the cases ahead The the we solutions of industry unique model specialty Finally, expectations the particle our second strong And global Entegris revenue prevent contamination. complete platform our solutions making provide memory uncovered helping enabling perform of Pure progress solutions with the to SAES With acquisitions. are is gases molecular sensitivity in we

record for our call We are positive expect very into I positioned turn the the carry Greg XXXX. to for another financial detail. momentum to XXXX performance in now and well will we Greg?

Greg Graves

Thank you, Bertrand.

basis are prior period billion increased pleased the months sales over Through of We the XX% On $X.X nine with up execution same from a this the the year. of XX% $X.XX in first our of period XXXX XXXX. non-GAAP same EPS year. were

ago. SAES million which million full a grew to included of contributed and our For with were line the XX% quarter sales. of quarter, $XX third guidance in $XXX a sales year from QX

would sales more a third GAAP like X% decline tied and products market. share On fluid primary the of drivers filtration handling, CapEx driven achieved of was quarter. SAES, of earnings to basis with sequentially down earnings Excluding were primary QX $X.XX. diluted sequential being as share in per the you per that we were, gas source the expect, NAND non-GAAP weakness $X.XX. The

Gas to inventory gross margins, GAAP gross included write-up Pure on $X.X of the Moving margin SAES million with impact the associated acquisition. negative a

primarily full by quarter. impact quarter margins in line The slightly of Our SAES. were was driven gain one-time from our the of in year the million gross and margin non-GAAP for $X.X with sequential expectations up and XX.X% decline the insurance in last were gross QX

were was business of essentially GAAP of on full included $XX in that $XXX,XXX million be expenses underperforming gross part small million on a with assets, margin guidance. basis intangible in included operating the flat services of a integration division. of expect AMH to a QX. Pure our the SAES. $XXX,XXX costs We purchase cleaning sale Operating line loss of and non-GAAP of quarter expenses in SAES $XX.X of with Non-GAAP associated operating QX of expenses amortization Gas, our

non-GAAP margin XX.X% the quarter. be $XX We $XX million expenses revenue. of operating million or to was expect operating $XX.X to Non-GAAP fourth in million

of slightly QX approximately Our than was due higher than points and tax in tax mix. of an increase our described rate items. expected non-GAAP The percentage XX% per QX or $X.XX expected was additional reflects primarily reflects core above This rate higher in increase and to X equal geographic income rate share. rate our XX% core the discrete to GAAP

rate quarter of revenue. QX was million XX% the to tax the XX%. or XX% to expect $XXX EBITDA Adjusted be for non-GAAP We

$XXX a for deposition SCEM year from performance Turning QX Specialty for was up division, sales products ago. or XX.X%, same was period Adjusted X% margin materials our to demand for XX% of Chemicals from added margin million full operating and QX Control, primarily was driven to The QX sales year. million The growth from from continued $X.X quarter included new and by sales high materials. specialty grew claim Microcontamination quarterly Engineered QX in SCEM, the year. Materials, by the from million SAES decline $XXX sales. insurance sequential which were million in by $XX MC, or up last of for benefit QX previously mentioned. operating the of a last driven and

SAES divestiture handling operating year. for PSS infrastructure increased the as last of XX.X% a operating Adjusted components upward from the that margins acquisition. and revenue. AMH, $XXX year. from last XX% $XXX fab QX sales divested small year. The the the non-core Wrapping the year-to-date last applications. cash bias Excluding as period higher to to of as worth increase SAES primarily we $X volumes, our last going increase million as on by note annual annual realize for strength from cost by QX of modest from Adjusted well and by margin This support balance up QX forward. services Materials PSS. the realize higher a MC for quarter year in filtration last expect filtration yet related were with reflected any million we spending integrators. half to Handling, Advanced of due the from decline of or operating the in the of or Free of and first flow fluid Cash $X AMH dilutive to were plan late projects, The million XXXX from we QX growth offset million, advanced R&D revenue. was for X% last was so would $XX.X the quarter was impact well approximately noting to from in million like the XXXX. and have The XX% will of $XXX synergies impact declines the declined in in liquid was to of from was It’s half with the new addition same of SAES sales year of AMH, to of favorable year I third flow reflected up year. AMH, up of driven approximately savings of X% end have the margins cleaning year-to-date to the in last cost sales synergies million operations business’ OEMs acquisition. that realization business the original initiatives, margin Consistent gas

was Our of a of quarter $XXX in and during cash at total a I place. debt note revolving balance CapEx. included to possible term Uses and putting like quarter $XX was facility million million million. would $XXX approximately that refinancing we end of are exploring loan credit long-term the our cash total

We strategy, expect allocation capital million $XX million be $XXX our quarter. our for XXXX. to to $XXX the repurchases CapEx in million during dividend for million we and full-year stock $XX used quarterly Consistent with

our be with in approximately of under we have repurchases repurchase We expect share to quarter. million share and authorization fourth availability the active more $XX

QX the expectations, $XXX we unit pleased we we finally, share. performing summary, take outlook EPS we’ll with the another $X.XX to million a from anticipated for sales our previously in to expect are of million to our now with be initial our the We these non-GAAP execution. our delivered impact of expect despite driven to are weaker industry small model, revenue In we At recent for We includes levels, Turning to QX, of ahead and acquisitions complete divestiture for poised to line our results per that predominantly range questions. record environment. year our guidance Operator, demonstrated mentioned. than resilience $X.XX $XXX Entegris. are and

Operator

from question Please Toshiya Instructions] with go Goldman We’ll Sachs. [Operator Hari first our take ahead.

Toshiya Hari

the is much morning, thank slowdown about for good that taking question. the it’s the in you to of of what’s that outlook there’s Hi, for the side XX% so bit in understanding business revenue months and is your and next How six or overall the significant for of of to CapEx obviously a My XX% your how XX% and meaningful a XX% today so? you. decline Bertrand, business.

Bertrand Loy

Toshiya. morning, good Yes,

benefit right, including So CapEx acquisition. the total of us the you represents of revenue. our about XX%, sequentially of part are CapEx The was up business SAES our business the for XX%

business CapEx expected in-line to a a we expected we than was originally that’s systems, series be makers. to more contraction and our gas much a in products down If bit of about it you exclude was equipment dispense SAES sharper due honest sequentially flow – XX%. than To filters, little sell that controllers our

bright On mentioned did lines in prepared the product of CapEx side well things, the I during of my quarter. remarks, as actually number a really

Our record FOUP perform at platform to levels. continues

expected We in capacity adding this the later is capacity online are to that actually year. process in of Malaysia, come

the fabs. as our process continue SAES be the well. Those platforms and to ratio event continues have platforms doing quarter. the the for very enter two need greater product benefit PSS are control, we the those fourth strong book also extremely greater for in than bill product backlogs; will Our one lines to greater And need to product purity from

we number are at some diverse is I’m of those to equipment So tied the clearly we here lines saw that product very we sharp make call that a product have CapEx very which sales. lines. And trying contractions point of to in Entegris,

for that I to somehow, to forces are the the our are are products of have of fab greater Some would that I in a it this lines the class tied almost we own, put those continue finally, really more defy CapEx CapEx in a if of gravitational control. saw our for then of a need their industry way. tied And number revenue also And we the for those expect and need better products. moderation products can new process to purity, product to

Toshiya Hari

then like customer Okay, And seem different follow-up, think great. takes as and about different you. your on segments when base. start of business there side are a the multiple it puts and wafer your your Thank I

kind lagging given little business stronger I industrial. overall a sort be think they bit little be months bit is utilization edge weakness trending? steady may weaker despite next Perhaps the because logic But the rates start of your you keep price do how in over tend is high. memory declines a view and and six the wafer might automotive of to

Bertrand Loy

to growth if drivers basis, start So relatively believe we to will we MSI, continue intact. was that seasonal think all you attractive, putting continue that think about And on about aside expect of more for see slowdown we wafer wafer essentially us. if wafer remain to in absolutely that the But flat you believe secular starts start quarter-over-quarter a QX. those remain

Toshiya Hari

I squeeze last one if could for Greg. Okay, one

in AMH. divestiture the about talked You

on synergies Thank the is think but Entegris, potential side to for serious more SG&A the in classic obviously had improvement you about XXXX, mentioned semiconductors? think the group of help the million cost meaningful if talked on a on guys annual into commended side, terms are be I there can and us SAES. about how with there? about continue you you drive R&D things, you. $X you you flexible the downturn profit how side, But could revenue it in an with product the magnitude And in of basis, on you OpEx but the

Greg Graves

divestiture, of so regard to million in $X the with all point AMH you first yes, out revenue. Okay,

small-scale like Given of I basis I said the – modest, it’s XX literally mean points when tailwind. relatively probably

So certainly – it’s question… part significant With regard bias. not upward sorry the an of I’m but to your it’s second

Toshiya Hari

OpEx into XXXX.

Greg Graves

between QX SAES a QX of then bit at as QX With OpEx SAES. of up and our pretty stepped million. a OpEx, backwards, acquisition PSS I to stepped and addition consistent little or, in has through year mean the it of I’m was the it QX so $XX – a it around again this QX right function regard been QX result in up as PSS,

year look think we OpEx just I that inflationary expect really would next going forward, we increases. core As at

mean number The and of use note are side. though I the travel costs flexibility have do discretionary, I – project in terms areas got in thing would other we we’ve that, entertainment. a of lot ER&D of a where We on like things

So those down. things could flex

comp; obviously we significantly. comp soften with flexibility levels of were would meaningful. now our variable environment the fair if are in flex pretty revenue our down And number running is We to a also amount variable at have the that

to is flexible. cost continue our I believe structure So quite

Toshiya Hari

Okay, thank so much. you

Operator

Please And we’ll take next Ho Stifel. Patrick ahead. with go question from our

Patrick Ho

just the previous and your very and Engineered Thank maybe wafer you starts, as regarding business. Specialty Chemicals maybe Bertrand, much. for follow-up question to specifically a Materials

other on NAND? go XD lot that of of it’s materials that look a the in that Company, segment as the Given chemicals? very some advanced deposition NAND one for given and How volatility a you stage XD avenue is how now of the right do growth also kind we does see do require that’s outlook with you but going that a business through market, correction at strong the specialty for

Bertrand Loy

I outlook division. very is for actually bright think the SCEM our

actually sales at sales materials, think if graphite China, for about lines look division Record you division record advanced Korea. that business, that those in our about think in this two division – you If QX product in sales if and you in record QX. delivered

consumable lot of those a solutions are So, products.

there transitions CapEx, is from impact the is that the products on introduced that be XXX. of it of XX meaningfully XX I consumable A true prospects industry of to as later a softening will from the and to NAND XX to SCEM. expect lot in opportunities that really around the are level So XD don’t but

year So the has remain I growing to prospects date think absolutely XX%. greatest Remember at SCEM been intact. that

growing now We expect industry industry at the to – X% MSI is X%. or probably right

really year. year. the would that is industry, this about I expect to XXX really points So so strong next another good XXX performance over basis year

Patrick Ho

as in I front. there appears be and would to And inventory of of follow-up particularly heard in the leading outlook, on a of terms we’ve digestion the stuff, edge question provide end my Great, little bit say from at the maybe now makers as some analog And trailing that’s least on of the helpful. some their some softer well, a near-term. device mature

part exposure Given strategy, very mix over how the the you look still to of have your that do trailing next which is quarters? whole you good marketplace few edge, that at

Bertrand Loy

answer much would That’s question to to we’re for trying one QX. capture a guidance answer in customer and our things the question the is good very a And it’s say, hard Patrick, I because that’s specific. of

mentioned expect will softness think XXXX. fabs. those this that attractive earlier, see than normal be here greater into that very I I some And seasonality would we stay. mainstream I of probably I to expect as don’t to really at going is wafer starts some

Patrick Ho

very you thank much. Great,

Operator

next take Deutsche our Ho question go from we’ll with And Please Sidney Bank. ahead.

Sidney Ho

for question. morning. Thanks Good taking my

to last Just has be year year following – investors’ the been may CapEx do concerns strongly this of given and well for second the of next it and up two but the a versus little but do couple in full will the as you you feel have do MSI on the how a questions also this of early, how CapEx half MSI first will slow half side, been think XXXX? year down years? last also on have Clearly

Bertrand Loy

provide think half that in suggesting second I our the this are we can and somehow views of guidance. year on Yes, I

starts you think first which operate of high we half context in second to second the the year, QX. wafer – industry about contract and CapEx year the of versus So of the in we I’m we if expect in talking expect about half to really XXXX. first this the up that’s this single And the again the to half be expect digits modestly versus year, the half in

today, few the relates to mentioned a continue we start positive environment view it’s a early XXXX, just too XXXX. having it qualitative But to as XXXX. I provide expect call As that, a on to wafer times in said of

contributors They book expect I to a next very areas. node in in close new finally, strong we XXXX. have that strong and have as very feel memory the would bode be, our That acquisitions. leaders a products to well, well more partnership them really very And we’ve in of We foundry, for performing order number I in in technology said, expect will developing good these year. recent again, about been logic, with our they very once very transitions advanced growth in been

So, for likely that you be Entegris. think while for numbers put quite will I say that the year I not would XXXX will I another yet, record

Sidney Ho

SAES on points full alone possible follow-up year, look XX% just given growth If Maybe year you just you I’m I a your X rate Great. acquisition growth. XXXX, if like is at anniversarying a curious gets year of think that. next your

Bertrand Loy

said, you. until February I as wait the comments translate you will to me to Sidney, call qualitative my for have for numbers into

Sidney Ho

you right, land. All some side been based one. another the quickly long watching slow the There data adjust adjustments concerns last? just some If if your try we and can well, I’ll will inventory on experience, assume do And what do will you in will are trend of some hold these the – economy macro that that’s down? think adjustments things the semiconductor be maybe you your have how fair. operations on up how points for

Bertrand Loy

and level of So, model. be to certainly that very factor fairly direct certainly this flexible this only is to we industry nearly say, customers. the the business us is mentioned we inventories a our would impossible as But of I for have very very, going Greg earlier, going are a forward. very a hard the of customers factor understand is their for It even closely. important level inventory really to watching of it’s that understand

and levels full can levels. time to at revenue reason very precise of actionable at as different that and scenarios is time some revenue models our level fluctuates. of demonstrated again up out the we have and those type And within the why target divisions. flex the you down of plans business on would those This We we give backed set very expect are have you that performance visibility bottom-line various different by

don’t – deal was in we to industry but are done in have it the with our forward, contraction going expect and we it significant business to past. ready in happen we the very as So, if

Sidney Ho

All right. Thank you much. very

Operator

from Mike Seaport question Securities. Please Harrison take And go next ahead. we’ll with our Global

Jacob Schowalter

are guys quantify savings how are cost could for QX? then, any on benefited Jacob is This to rolling QX? guys. cost savings actions much Mike. you incremental In that morning, there And be going the AMH into Good

Greg Graves

to in I the did would in which we last facility We which were reductions at essentially the the highest we’ve down we that’s are really we did that fixed QX; then year – made seen of we One part the business. we initiatives, and later in three we to say a was two probably reductions. look of was if OpEx and is, part the ago things we’ve Jacob, talked cost very cost earlier in business a have QX; what year The about and we business, watching cost different divesting stuck, But What in closely. structure talked happening. reductions have that business, about undertaken that so of cost just exiting business speak. made, that our the this this cost come structure as that year volumes these

come an margin As being as stable we with view upward we forward operating volumes look however, bias business the at that as back. going

Jacob Schowalter

revenue that And reported that right. consumable double-digit double-digit had in they next to business in then revenue quarter. then All saw peer and guided SCEM, today their you growth a growth

your was So, you line comparing grew I think QX? your to the in this market expectations? at X% do And with in guess what X% growth,

Bertrand Loy

a so Yes, it’s good question.

material graphite mentioned our mid-teens mentioned, the as business, that, think some they I advanced have had in been business I record growing and our I year-to-date. units businesses quarters.

contraction and our reasons our little however in a a business The business. QX experienced So those bit a units. are gas showing specialty we saw of little coating of we we was different. bit actually very contraction What in saw in strong slightly for business

those coat be we chamber That’s to very the a why about the shipments coating need so the If in in sequentially are solutions QX. those Those we components. early more opportunity, is But of consumables. shipments. And what you solutions, a lot little – think tool that is refurbished. chamber still contracted bit are know, call tool as innings components than expected subject you of first we we do that the to coating business

SCEM in a was for QX. headwind So that

The is about. other that something Frankly gases, some cylinders. than bit expecting, really inventory not had a thing we gas distributors were inventory concerned was manage specialty are aggressively this of actually their more we the we little

the situations. in similar have past We described

You particular it were last business may that pressure Japan. in recall the back in some We Japan. expecting specialty come around line. gases that saw in we it did pressure happening year was very the product come Taiwan. We situation saw on would back This in where year Taiwan strongly and

that come business it not. believe strongly. to no expect very We have back I will to reason

Jacob Schowalter

right. you much. very Thank All

Operator

And question with Markets. our next go Kapsch we’ll take Loop Please Capital from ahead. Chris

Chris Kapsch

morning. good Yes,

the posted So, country a year, if sort it already. nice given up touched you you by XX%, apologies we and geography, if like date year year half by amongst XX% had for it couple so South can toggling calls, through was And look it two and this looks ago it first any and to back Japan. in forth in XX%; But is date looks a on the get XX% like first distorted you – your essentially. most that the I by quarter. of But of those the generally and was at I chart revenue was sequential so understand comps Korea trends there if numbers for it if have acute compare specific to half Korea countries. softening to But like and what Japan looks year these

me looks suggesting whereas was like stronger. – So, to Taiwan it

suggests to trends it’s in regions. push demand two this if of me there’s those So out some that

could you to that. if wondering speak So, just

you much on a the the maybe then And are can or could can Korea what Would we if with that? upon just you issues temporary more you characterize is bit And this market. Japan. we of to little I tied extrapolate do in respect that touched conclude to to think this memory how you just XXXX? elaborate think

Bertrand Loy

year. strengthening your I prepared right, in part – the did if high sequential think Japan translated to sales digits first increased mentioned were impact see impact. transition were first of I about sequential – Pure expecting the backend the increase the major happened. job we and the expecting remarks a my So our our activity, see think Taiwan that we in you you – to that into the to are in of for see of Chris, fab that And we think excluding each SAES the question. an answering no in I Gas you that’s But in SAES countries exceptional the experienced single were trends We that and expecting

in once of very SAES, factors. China think favorable conflicting you excluding again was basis. saw two on a China, modestly If sequential about the China And impact down we actually

record but we sales by significant new and as several would one mentioned that by, fab completed On AMH hand expect, was quarter, during were you or down. contraction in of slowed SCEM offset you as the projects the revenue saw as products either

you low behaved contraction regents our about based. cycle. given business. the other and global really in America down industry Japan would U.S. expect we equipment majority Japan represent XX% sequentially are the that mostly vast due our North where it’s revenue, of in customers were to in digits to the where The the of are equipment customers revenue our and to OEMs are Remember our as mid-single and but

in Korea, investment in fab new you a we but business quarter – again, mentioned, sales roughly as you saw a in we saw was So the And fab that actually fluid our down new in was saw X% Korea reduction mentioned, record in biggest SCEM in as decline Korea. in sequentially. advanced quite offset, as handling impact NAND a by deposition, our that’s our we And where obviously.

background. So that’s the

ahead a know is longer-term that’s view question range about a to decided on reasons I one think it overall that the than and usual. phenomenon. is what’s a go we a think the is wider your short-term bit don’t environment, business for We with guidance really little of it phenomenon, I my

different account mentioned, going that for I We’re we I to as scenarios And QX. remain said growth for a mentioned, the trying XXXX Having very industry will have absolutely types secular as company. that, of strong intact. I drivers the think into think as that I a

Chris Kapsch

a I delayed but some one I up specifically? believe processor that guys that being Intel, that has there’s have additional times, follow you multiple you evidence is with disproportionate, meetings just XX that had say nanometer for node, wins of to resolved. number I that I record prior node. want Can – And now from for but think been customer specifically I’ve on their transition don’t Because

benefit know, is transition was kind event. wondering see or just something likely of benefit, yet. to you. XXXX that that Thank started to from Or I that quarter don’t you’ve of a more node So, more really any fourth if the

Bertrand Loy

leading edge. position said But So as will doing customer. Chris, not in specific any at general been characterize the I competitive we’ve given terms well extremely our very earlier, at I

little we no you. We XXXX. and as in to memory. advanced logic, benefits year. of a go expect would are hopefully backend forward in We’ve in helps seen bit this into that foundry I looking more a the of in transitions And benefit

Chris Kapsch

you, Thank guys.

Operator

question Capital from our ahead. take with Group. Christian we’ll next And Craig-Hallum Schwab Please go

Christian Schwab

Actually my you. questions. any and its positive further question have regarding don’t was I on Intel other potential impact Thanks.

Bertrand Loy

Thanks, Christian.

Operator

ahead. Scarnati we��ll take from question Please And go our next Citi. with Amanda

Amanda Scarnati

Hi.

can you Intel the in environment? environment the at you of that, in a and kind round an of that is would edge weakness X kind nanometer follow XX industrial at round impact a on and from in way up any automotive nanometer offset Just TSMC see by steeper quantify lagging

Bertrand Loy

nodes to a seeing about that will advanced customers put not quantify overall, a And I said of have basis our position Amanda, the by benefits we’ve try As the remember, growth opportunities I again, various us very across in to that at objective market will all points. continuously fact across reason the XXX But portfolio, the our in customer. we outpace to those of basis capture why XXX our cast by opportunities. relative are opportunities on we mentioned, is to those

for at full this we year, what year you is guidance the this will do. If our look

growth of We’re X%, looking be organic nicely at XX% will well really to environment X% so where about an doing growing about above the at and industry. growing should in an be we industry the

in XXXX, We we have that expect set the for done I that done last perform transitions of strongly think into a year this year, will very XXXX. to stage node the we’ve And us once again before. number as

Amanda Scarnati

in? decline And of with sort there guidance is more for some also from most of the clarify built bit the side well assuming this of just the Or little then stability a can next the business? driven driven business still Is weakness as CapEx some unit is you that coming in the unit quarter? in

Bertrand Loy

Amanda. It’s question, good a

our wafer next products. expect CapEx business what be softness unit of be of to in will We we terms up quarter of sequentially offset that some in would spite seasonal driven expect in starts. But continued our by decline

Amanda Scarnati

of then we node this the driven through at Great. point? that is up of despite or the And because mostly is transitions different are because seasonality, SAES that working the

Bertrand Loy

SAES driven I performing ask QX. if by it mean SAES? SAES Did is you very No, – in well was it has been not.

to We perform in SAES actually expect well extremely QX.

I the recall, product If $XX of expectation environment. Pure we $XX the up an fantastic and had contributing the year. the year. million Gas backend line $XX again, you contribute now expectation SAES the million backend That $XX industry SAES be in think expect million to given million to the And in a moved to has we of performance CapEx to that’s of prevailing

team over great the by there. So performance

Amanda Scarnati

Great, thank you.

Bertrand Loy

Thank you.

Operator

our take we’ll Goldman question ahead. And next Sachs. Toshiya with go Please Hari from

Toshiya Hari

visibility thank other you them? have, follow-up. sell you primarily curious, that little when bit you taking any and the how OEMs and inventory talked much I’m whether Bertrand, you how North your Japan. just in have be would comes and do Sorry the into gas or a business it they with it for much to components America about filters

Bertrand Loy

single like something the frankly to almost QX, very And the to high quarterly as our in that especially us I of by for of inventory from panel very us Toshiya. that’s would terms And much what be digit makers Not revenues a it’s equipment the in in-line to filters caught understand gas factor or surprise now. gas as one sit things next in went QX. it’s to right can exactly going big zero. integrators in And obviously hard to expect where we have,

the it strongly. real middle the question no have will is So happen doubt or back will snap think we of to of QX, beginning The actually the until have I wait in it that this business of very temporary. We QX, will is part QX? at the of end

But as back. will business the inventory actually snap but Our ever. will it how level competitive stronger back, dictate even of position strong is this will than soon snap or

Toshiya Hari

much if down is Okay. I side. it to guess there’s close not zero

lot. Thanks that’s you. a good So thing. a Thank

Bertrand Loy

the That I’m it. is you. exactly about way thinking Thank

Toshiya Hari

you. Thank

Operator

time over it no this there at like to further Seymour are any back for And Bill questions. remarks. to closing And I turn would

Bill Seymour

you for Thank Have day. call. the great a again joining

Operator

today’s does your this conclude you for Thank participation. And call.

may You disconnect. now

Entegris (ENTG) 25 Oct 182018 Q3 Earnings call transcript