CMC Materials (CCMP) 11 Nov 212021 Q4 Earnings call transcript

Company Profile

Participants

Colleen Mumford	Vice President, Communications and Marketing
David Li	President and Chief Executive Officer
Scott Beamer	Vice President and Chief Financial Officer
Mike Harrison	Seaport Research Partners
Kieran de Brun	Mizuho
Chris Kapsch	Luke Capital Markets
Amanda Scarnati	Citi
Paretosh Misra	Berenberg
David Silver	CL King

Call transcript

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

Operator

Good day, ladies and gentlemen, and welcome to the CMC Materials Fourth Quarter Fiscal 2021 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 call is being recorded. I would now like to introduce your host for today’s conference, Colleen Mumford, Vice President, Communications and Marketing. you. Thank ahead. go Please

Colleen Mumford

quarter this Good webcast after the document CEO; me President and morning’s we encourage our our Last Drew. the September which on Li, our XXXX. center the Investor and we’ve made XX, and are Relations remarks President session night, We fourth and for results question-and-answer and available and website Scott to conference call in reported cmcmaterials.com. year remarks the of morning. you, A will XXXX, today ended review Quarterly With script you David CFO. on conference fiscal slides Thank Beamer, of Results this section of available call. today’s website, be live shortly Vice

ended SEC by (XXX) quarter may office XX-Q actual factors You and forward-looking financial factors XXXX. are this our we ended obligation differ update to calling XX, involve that discussed which may non-GAAP statements request XXX-XXXX. These measures. our XX, XXXX, for materially information. uncertainties Form fiscal forward-looking for risk cause our any September XXXX, from the remember Form We year morning today discussions Investor number our November at any include our Also, certain forward-looking a other in could that that by information the reference assume risks, filings, Please XX, file expect the statements. to this Relations and no including of XX-K to of June results these remarks of

measure. the and measure reconciliation nearest GAAP earnings of financial slide release each to a include financial Our comparable presentation non-GAAP

followed for and to documents. and turn will data the question-and-answer call comments, reflects I discussion Dave in accompanying the slides rounded by session. remarks Additionally, throughout values now over opening a this

David Li

Colleen. morning, everyone. Thanks Good

revenue. Materials year-over-year, we record Driving the strength reported driven our fiscal performance our for Electronic Electronic our Materials of line year fifth our believe consecutive CMP we XXXX segment. slurries, of of across last was which by XX% continues announced year broad-based grew above representing segment Top sector. with night, record growth growth As results X% in which track

innovation continue executing as continues Electronic a advanced challenging performance continued half for our positions gain impacted of we while see sequential our to trended remains with customer are strong macroeconomic and focused on fiscal negatively margins winning strategic the at new we our segment business our but and our but remain Materials ongoing pandemic. through growth backdrop product forecast, difficult COVID-XX materials R&D EBITDA on our for positions our Performance to in As year be in XXXX. our we solutions. pipeline efforts. we demand technologies, line segment, which also increased Materials and industrial by the in year-over-year, include adjusted The In to first From perspective, end initiatives, profitability guiding

profitability raw and earnings half negatively challenges second financial primarily mitigate to performance. absorb we and as impacted release, we costs, announced key was cost our In yesterday’s materials, initiatives enhance Our two freight logistics. higher from

took raw we increases, needed. implement increases price believe to the rising costs, offset and materials, and of price freight further we cost will counter to First, rapidly if headwinds the implemented We prepared experienced these pricing effect of the quarter global which XXXX. year impact that are to-date logistics fiscal first during have actions

We new our adoption encouraged by are and pricing of have the closely been with to-date. customers working our

implement program operational while initiated program strategic to addition, and an maintaining designed our Forward. Future efficiencies, enhance partnerships. technology to changes optimization structural innovation strong focus is enterprise-wide named In we cost on The customer

continue healthy driven maximum Electronic by from utilization. customer segment The capacity. outlook our remains invest innovation drive businesses segment as semiconductor believe strong, and maintaining quality We earnings overall at will structure Electronic increase organic technology across will while operate actions to infrastructure benefit and operations our continue these Materials cost near our Materials customers confident industry are their our We growth. a optimize and commitment to for to in help our and IC to advances

We are trends, across supply and including to many well complex to these customer product formulated positioned commitment given capitalize technological broad our infrastructure, and highly innovation, ability close chains. a manage on global differentiators, competitive portfolio, global to requirements partnerships,

of Turning organic $XXX currently This earnings from program. Forward reflects of the treatment to the growth guidance business, and through of the anticipate and offset $XXX adjusted million. the in the to we the fiscal full year, guidance a our million loss beyond for exit our confidence year EBITDA wood favorable Future primarily of to grow of the range combination impact

While advantage pricing inflation. our begin the initiatives additional portfolio are optimism. announced year our the with We call and impact contribute With fiscal of new prepare your actions questions. the to we to as further positions along offset strong will product I’ll expected going that, turn with to The of to over track differentiated long profitable today forward. our operator record take growth

Operator

comes of Instructions] Thank Mike first from Seaport line Your question from you. the Partners. Harrison [Operator Research

is now open. line Your

Colleen Mumford

Mike morning, Good

Mike Harrison

in Future maybe wondering Hi, little of we can those the or Forward are provide program. a good being was of timing if year, bit that should part actions on the the implemented are you of back of of segment actions How morning. more up earlier more corporate toward think will show mostly I detail the Electronic in XXXX? these impacts give see on half being detail also as whether the or it Materials? in savings Performance weighted the And much Materials maybe or those some some fiscal then

Scott Beamer

would I change phasing and that. meaningful and QX Yes, QX runs beyond less QX, expecting for to perspective, impact then sure, of quarter an QX by from a Mike. be

be cost the and for you’re OpEx going on impact that as come going $XX about to approximately sales have a They’re beyond thinking of as that, those as mostly where then and about Materials bit be to so, year, be for thinking again the projects in that or closer little then as a are corporate of to primarily primarily or corporate I impact different benefits a benefits XX likely segment. slices think two And to Electronic would that something timing. FYXXXX the think the to to longer future greater would FYXXXX. be that footprint of I’d of you those million the segments about this have rationalization,

David Li

just background on the Yes, give Mike, to some program.

And it’s innovation First, of we perhaps should didn’t was catalyst, and but we to we thoughtful the to do the environment. a a but what to take bit. we know what companies I or impact We there, strategic, want wanted where we’re pandemic good a it in just any be dynamic really about good We our to are do. streamline the want very was customer-facing efforts. organization think feel opportunity

and that’s going today support on the So we’re about excited it. to to the work go announcement

Mike Harrison

you And of right. terms least Can revenue to of capabilities there. of you’re record bit at progress to then some a grow the EC? quarter process as on delivered within a in value in those working All electronic making looking the that terms and in little business, chemicals you comment improve chemicals again you’re higher

David Li

Thanks, Yes. Mike.

we’ve The business. just for record strong the row demand general, talked is obviously regional as us about, EC. a for We’re a about of was by this more growth in quarter driven second in excited

participate and North America, primarily So we Europe Southeast Asia. in

participate. in We’re a leader which of in all we those regions

new utilization of our by both wins demand and continue that customers, think some as reflects high underlying to portfolio. that strength strong the business also I optimize but So we kind

We’re the progress EC. with we’ve really in pleased seen

Mike Harrison

I’ll thanks. right, All turn back. it

Colleen Mumford

Mike. Thanks,

Operator

Your from Brun next comes of Mizuho. the question line from Kieran de

open. now is line Your

Kieran de Brun

Good Hi, morning. good morning.

Colleen Mumford

morning. Good

Kieran de Brun

material do next a you’re then little some let’s quickly seems just discuss I the you some price that through if half to the like it it saw some just able you’re into you pricing, these headwinds you those And to quarter offset subside? where push of bit these how key can But pretty raw continue you in what and increase first think wondering view of about maintaining in in say. headwinds terms as remain if year? experiencing to more flowing like of of terms of they through how

David Li

follow-up some question. context detail. Yes. for give Scott some additional can with Kieran, the thanks and I’ll

very what, us obviously, to react about it’s more And perhaps earlier were I the bit inflation effects last of we as we some in seeing and respond. and time given that’s think talked quarter a perhaps in is, gave very, remarks we seeing. of some just sector. the feel we about we’re few the of a and it How throughout of the that prepared been headwinds pervasive in topic a examples

future. say We’re so of what a will just as not inflation we taking the give pressures lot as we’re – we dynamic. perhaps I that going that and pricing in be very more But is inflationary see prepared far we’ve we’ve the needed actions continue offset seen further to to of to confident pricing are able would the around specifics competitive because that

Scott Beamer

the you kind out. trending And of about that Kieran point Yes. that other made

we’re raw said, I to think for of and the Dave coming be particular inflation too year. the conversely can of the material going expect or company that’s say we to that. impact be that specific aspects the again pricing we But look, to reluctant offset about as any this

margin going inflation or be our going incremental offsetting forward going So as forward. that pressures you’re thinking about expectations forward, expectation the to margin is

effect QX QX. with immediate the most question QX or forward a and program thinking an will is specifically may future I’d trending of pretty have consistently also related be your because to be our So QX, pretty of less to

the in now said that place quarter. We have as some in implemented earlier pricing we we

feel about that of out. maintaining good wood treatment coming the we So that’s piece a business have we

about a and few then to QX this as better the I’d QX takes, company pretty that. puts run likely thinking but the getting rate, and be experienced similar for So beyond year what in we of there’s profitability

Kieran de Brun

this a in give going in little think substantial step Great. maybe to and which you your be bit about what how means satisfy being forward a up in a on about as CapEx there’s going incremental It pads and that would any for just how When online follow-up, terms do and but continue into able helpful. of about year, overall organic longer-term and you grow this future step a demand see we like and CMP semiconductor your you’re question, can that business color capacity we a that of future to probably think we to quick seems And demand investments? bit of electronics think just maybe about but a next then all CapEx, whole, current thinking how slurries year. up coming pretty is industry terms your is that

David Li

Yes.

We’re really excited about that.

announced think about we think the capacity we customers, additions of first our as by we’re well-positioned. very all, So

announcements So obviously Japan. in also been there’s of in in even U.S. Europe and additions big

in would foundational a that’s expect really as we business, it’s We regions. those us. as our have probably business we for important all really I know about slurries, think facilities And you think CMP for

an invested be areas to support capacity We will sufficient be shots customers. future more or perhaps picking intensive providing demand. for differentiated are That’s going for CapEx say have ahead solutions EC really pads, as we and we’ve issue well. growth and always I’d that to can of current not our our where that

capacity, EC. So support of pads, in we’re excited I for that for terms slurry to growth think future and

be at to I disciplined well-positioned we growth do we’re infrastructure make CMP rates. future where background differentiated really customer remarks, we slurry that But investments forward. in add going support global our is perspective, looking to point going added I We’re one think expansions. provided about to on and solutions just portfolio, the growth some prepared other can the on support a from

an years. put obviously We So X%. five of past around us indication significantly outgrown gaining over is We’ve that we think participation. that that the

coming think and participation CMP future is we from that seen additional capacity to online going So come from we’ve increasing growth slurries.

Kieran de Brun

Thank very Great. much. you

Colleen Mumford

Kieran. Thanks,

Operator

from next Kapsch Chris question from line Capital the Luke of comes Markets. Your

Your line is open. now

Colleen Mumford

Hey, good morning, Chris.

Chris Kapsch

morning. good Hi, Yes.

was reasons fiscal in and come core would electronic midpoint some the talk if range of the think I initial there’s for XXXX, contribution especially be the to materials XXXX have business. choppiness I through about segment been this that what favorable look would growth investors that talk what let’s of guidance for coming that underlying some exactly. on you maybe about hit against Could just segment? backdrop just wondering the it So when quarter-to-quarter might range a helpful for could sense idiosyncratic if you that you like from

Scott Beamer

electronic from – Sure, Yes. treatment think coming the out. as And we’ve recognize that be also I’d business thinking complexity that I wood with primarily Chris. of organic growth we the materials.

happening how So about we about in phasing I wood you transparent the were is materials the and that think can pretty business our that. think out for

pressures of in when probably that, wood undoubtedly, was and for inflationary treatment have, you already exit Now down. PMmargin to be pressured the there’s that you’ll will notice unpack QX which PM the The the continue you PIM. with margin

So the I’d QX kicking of be better then and the I’d versus be as a rate And a similar have rest we future the thinking of of mentioned again, about expectation, benefits the mostly electronic run thinking materials. organic getting QX growth as in. year forward I

David Li

Chris, guidance reflects is Scott’s the have materials we onto to And strength Yes. in our that’s its think of growth electronic to going that the in add continued from. particular, as materials. organic of And prepared comments, come just bridge where I optimism

significant putting future offset, forward benefits pricing as which as that an of the contributor. and inflation just then Scott profitability is We’re program. the And wood mentioned, of a pretty obviously exit treat,

done next quarters. job business, that driving think nice I over course a but of the in we’ve the exiting value we’re several

thinking about in and So the year. prepared you we feel remarks we’re for a that’s kind that what the of gives the provide bridge

Chris Kapsch

just be end scenario around as it look the end of at low and and helpful. Right. guidance would you just have and And follow-up some that high that range. That’s developing the then analysis

are Just you scenarios that see the might and where that are end would end on you to attribute in those hitting greater you range the you. come Thank risk some variability higher what factors where what of product that the end lines either What of range? that lead to? or either of lower

David Li

Yes. Thanks, the spectrum really feel is, about really range position. we good I feel like Chris. question. the first, Good our of

we’ve really in cobalt, some So in we one in advanced the one remarks, mentioned breakthrough of applications, a prepared few XD in NAND. wins had

as participation easy in I our as participation really of picking well pads were mentioned as rate slurries kind as feel we that So our shots. advancing about good and

at stays look – that industry end will sort low I of end and very of So guidance, as really assuming range high one of the strong. we’re

continued – strong what big but of industry that’s that’s one demand, I backdrop for, I everyone’s So think strong think assumption. calling

we environment, when continues one profitability, dynamic be obviously a right. is to other about The it’s very think

logistics, So gave costs, examples materials. raw rising responding we about to again, in the some prepared remarks

feel offsetting and So positions those I of are we’re to is of ability we think in continue up But we’ve to our continued like coming sort terms second seeing advanced online new and price, up, of the that responding ramp ramp that from win capacity positions, with seeing factor. our customers.

are those about areas range sort two the think So kind I’d say of of the terms in of of to our guidance.

Chris Kapsch

Thank you. enough. Fair

Colleen Mumford

Thanks, Chris.

Operator

Citi. from comes of line Scarnati the Your Amanda next from question

is line Your open. now

Colleen Mumford

Amanda. morning, Good

Amanda Scarnati

up into have on Good morning. CapEx XXXX. question in seeing I a step the that fiscal we’re

a in talk about that’s sort capacity. in driving of what’s is driving CapEx? of it a seeing more just step or Are you strategic unconstrained any up You that bit difficulty longer this addition? demand demand meeting little customer Or term

Scott Beamer

Yes. now strategic Amanda. longer and the term the as the term second it characterize I time. investments over longer would for and Sure, strategic

single And make this era. that our during had not made every particularly particular we had the you all pandemic constrained have any we delivered customers. our the that, comment CapEx know, shipment before to would even We’ve the year, demands issues problems of continue we’ve or during environment uneven – and can given to issues that of We meeting that. the I we say had. customers, the We’ve as all in it just

materials And to so longer capacity putting that of that the to but future, benefit investment into an this the now there’s the some investments I are again, and phases participate customers be in. strategic year essentially strategic mostly, thinking term for in kind of electronic from the it increasing would in as and our next,

Amanda Scarnati

concerns CB the going DRA need and oil U.S. in consumption about term? impact return then any business? Thanks. here there U.S. production, in order consumption gears And this DRA to Do still recover of is Shifting to especially gas the demand business, is additional how the the increasing business to and that’s the we sort below oil in to longer

David Li

Yes.

strong the we’ve yet. U.S., oil And have for mentioned PM the pretty obviously to positions very the specific is despite U.S. it’s that pretty haven’t And oil before, – oil just Amanda, the seen we we price ramping And correlated a on demand transport. transport. in just rise As environment in side. really DRAs up challenging so to

forecast challenge tried operating to environment. a we’ve as closely, at that I look it’s working recognize so we our with And business is think, our a and customers in

at not fair area to focus And us moment. that we’re in for we also obviously, business. at are introducing I seeing innovation options say we’re the it’s for new think that a some interesting think, challenging a that, looking of terms I all that but in And it’s it’s just products, environment. big continued

Amanda Scarnati

Perfect. Thank you.

Colleen Mumford

Thanks, Amanda.

Operator

Your question to from next comes of Misra line the Paretosh Berenberg.

now open. line is Your

Colleen Mumford

Good morning, Paretosh.

Paretosh Misra

taking Thanks good the questions. for everyone. Hey, morning,

half chemicals talking forward? you as helps those to of half such very year. to this with expect electronic unusual in that is Or as anything rate second a Was going performance along us that you So or in and reach good the a the had base this good business customer lines? – fiscal a base there something grow second

David Li

didn’t of We call any Yes. atypical inventory buildup. out sort

did think, utilization I from some is that reflective and our demand so few demand ago, customers. the ramp just talk quarters We a in several of segment high up. chemical wins of that new seeing electronic about really business it’s

think come I portfolio one, differentiated customers probably of we’re a in very about our I terms picking to can our grow one it’s we we think business. the business. differentiate or in think as growth be with. have we and But we’re going business pads where we shots the to ourselves. that as that the we slurries products our seeing out not fast be going in And if that continues support CMP business, It’s solid which to – profile, it’s this

demand it’s participate see really that think in driven we regions customers answer And so just the I by strong we the in. to that question, from your more

Paretosh Misra

how EBITDA inflation it’s XXXX would are of your $XXX in how And you tracking terms I maybe a Is bit or meeting you million. like, it. Good of target? to then on a are drag to cost Got ahead $XXX million you hear get that. is that? these believe – that,

Scott Beamer

Yes.

I coming things thinking about Paretosh very to be strong. the but timeframe the continues that industry think you’re the update in more way. here, formally think I we’ll Look, right semi

where serve value in segment. and through ability our our excited customers we to that We’re about participate drive

So the we’re in inflationary that pressures expectation and those able that are were our objective new offset future. the articulating we’ll be continues, to today in

well. the in as factor to have we wood treatment exit Now

I’m So to think of – about which in too be now, many FYXXXX formally probably until sort right to that, details going we be shorter reluctant re-update up give timeframe. coming would I the

Paretosh Misra

enough. fair That’s Thanks.

Colleen Mumford

Paretosh. Thanks,

Operator

Instructions] next Partners. on Your line [Operator from the comes Mike Seaport question of Harrison Research

line now is open. Your

Colleen Mumford

Hey, Mike. Welcome back.

Mike Harrison

and a you distributor Follow-up you give going if those forward. more patterns customer, Chinese patterns detail saw of rate or guess noted XX% I could order in September as little bit broadly additional bit on more from Thanks. Wondering growth normalized talk the your fiscal a about little China XXXX. order October one. in on maybe you you China, Maybe growth the how see have

David Li

context some I’ll Scott some detail. then and provide give additional Yes. can

for I one First, region to – then new last strongly closely seen think And our very and in in with is the years. XX% And think last China growth customers that’s China. we’ve in grown to work we’ve one years. us continuing year-over-year I a five our operate couple significant is not the for almost China,

China. have customers, very semiconductor all a we those direct, closely that China’s know their participation gain local work investing team And sell in we to with there industry. and lot we in that don’t also we Although, a continue

from near-term we’re an positioned. we perspective, And strong let we really, from comment sort long-term patterns. order really think Scott us. It’s important of mid-term, for a growth region So on the well I’ll coming China. see

Scott Beamer

Yes.

during articulated the quarter, – Mike an get have in near-term to as normalized I expectation order back was think we we we expected last to expect is growth beginning which QX, the this patterns what quarter.

expecting we’re track that. So and still on

I point growth our FYXXXX. you largest where the is of China FYXXXX in one think get significant you mentioned And versus the countries now. to

I’d numbers So China in you’ve a down likely of about FYXXXX, thinking still for next but double be for you is so percentage and from year. large digits that bit get mentioned growth little what

Mike Harrison

on And And own some maintain one for around kind to this maybe identified competitors of environment? you pricing Have that. Appreciate pricing. inflationary about with then share prices? areas your issue how kind is pretty that’s business balancing not weaker right. of desire pricing get are see in you ability All enabling material demand volumes. But inflation. you competitive you’ve or and and where question your on got to recovery to super dynamics the significant moving PIM that you’re some this impacting in need seen that favorable market the your Maybe increase talk the of raw

David Li

Yes.

an space of think well, it to I increasing be know the competitiveness. Mike, continues you and area

So competitors want planning But we’re at are don’t companywide from we a clear-eyed things price a about from what speak that. perspective. perspective. I look to about

PIM being being no by impacted is in we So within PM business chart our is showed doubt our The materials. PIM impacted segment. indicative an materials, and raw

will margin the pressures So segment. within occur that

that’s products we this not but innovations I with make think offsetting expectation company want clear materials. think segments, a company But price new that mentioned that product profitability from that potentially been to to of have and interesting perspective, each of for things we there’s business, the raw overall. we’re have alternative improve further also we true an we including on of working necessarily some I as the sure overall

So, clear-eyed also on we’re but business, business, environment. the improving about the optimizing competitive and the focused the demand we’re also environment

Mike Harrison

All right. much. very Thanks

Colleen Mumford

Mike. Thanks,

Operator

line CL Silver David of the on comes question next Your King. from

Your line now open. is

Colleen Mumford

morning, Dave. Good

David Silver

your thinking Yes. question, guess, Good in was footprint. I with how I forward or I designing global And of program this program. you’re the particular, regards had I future about goals this to morning. Thank you. the a program guess on

several to pruning parts use year. CapEx your be can’t of or the a you’re bit. where is past back a mean, every reach footprint I of So much it But maybe broadening wording. my I exact pretty global expanding are your And going been for recall there discretionary global like has the a years, recollection priority, seems

you terms customer supply I think maybe So, – to current redundancy in the maybe when of could prominent the that’s with some there. balance the you. you’re issue footprint more global serve of hoping about you here discuss, envisioning goals probably just responsiveness, maintaining and maybe efficiencies of and Thank in or to some your the just an goals, need little customers between have greater was extracting a response capability, that the type I economizing environment.

David Li

Thanks, Yes. David.

think is I us, we it, think about and we’ve very opposed we cost our supporting that growth. for think been again, to reducing as about don’t thoughtful approach

And so, we kind as mentioned we think any innovation about our focused global really a that’s footprint support, corporate. we’re and where of kind our more around be of our focus at or look There customers mentioned of that, Scott impacting And not are facilities. could obviously this adding is to efforts. customer capacity facing This and be needing going not a as more program.

– we’re it’s infrastructure more prepared as KMG. not removed not for years look it’s we’d of support. look think be we great I and course, just to years about a Overall, it I think back, back as few growth people. good see a of talk a from today, a or customer would an removed, We on opportunity we that us. lot just several took And but We’re that sacrificing area

optimization some I this to is a think opportunity the as do catalyst, around I serves the pandemic us think company. strategic cost good but for a

Scott Beamer

Yes.

to $XX to highlighted $XX a year The a think $XX then an million context the expected in incremental good add we terms million million the million would and have $XX financials, million benefit is bit summary. only directly as this to total. $XX I time. little more the of that’s that take will I David, of

in $X to million future. So there’s million it $XX an incremental call the

of as are those longer-term thinking would rationalization, Dave because I described, that the think that projects. be I more about footprint everything

going getting only approvals We’re going customers, Not them. to lot site, so with on of our impact work. but from and to the working to do a re-registering, a have if we’re

of forward. Dave’s comments the on in with as just we future So a of this of envision I that activities the little part benefits would some tail of bit tie

David Silver

then Okay, CMP And this that next can process hoping But maybe business the hope understandable a for record Marriott typically is great. I way And the qualification very get aggressive could were an undergo question, spending out my on just award. your long-term I the that’s equipment industry. position in process the in a integrated I’m for you or with going integrate win manner.

the fair the you’re XX or facilities last context turns you words, qualified that there’s a been facility expecting months compared the for the the last and quicker think I’m a and cadence I where to production XX physical over maybe wondering, other at few a be turning quarters, is next they actually gap maybe say about your when Will have on XXXX line to months. in you’ve and it when ramps notable you you’re on that over is then, say just there’s when thinking a at pickup the timeline, time. production in guidance which in physicians. relevant and maybe where notably complete a of So And between let’s look up cadence,

into to the ramp initiate on opportunities comment wins any Just up. you. Thank actual physician these production and new

David Li

go focus Again, back a on. more it is see example, important we you expectation to for go of might I right growth winning to as That see dynamics CMP already our think that have number we’re of kind focus equally of online, of seeing from But coming come new rates, those memory Yes. the X% customers. key capacity Dave, we some up online, opportunities. you bit. capacity probably some

are won the excited of some that and about. we new about opportunities talked we So

have in us doing. as those talked about we advanced been set the for win It’s in also nodes participation pads consumable to really area. We important our continue increasing

capacities, Right stage, just if with kind similar we’re positioned products that not about and announced introduce a fab. the grow being Those they’re right? think Arizona or them. of I close either is new well for up, technology, ramping new Intel’s they’re when new pretty to example, significant So or TSMC to and to the now, if those technology early port and the process, say startups. are I’d new customers able talked capacities a we’re few start up using over of

plus the out. So those those think range in occur volume come – of some see a we’re one kind customers through. lot I addition obviously those are faster. in But And incremental kind of have starting up. we invested do that that capacity of the year seeing And

and both, up ramp our winning to expecting and support online. to right? additional We new capacity technologies in are also as foundry, participation by there comes confident they want get logic, want when grow to we that to it And We memory. be

in So growth say performed to do We’ve and of and it’s some all to much, we’d rate that, the that that’s expect obviously X% of sort of the so. But background strongly above, continue of but of grounded I CMP. sort more would context. than

David Silver

hope this I’m Okay, me how anyone’s going doesn’t But pretty great. your Colleen to at share spend the context you look of aggressive I I I’m sneak don’t strategies. asked I wondering just creation about of, in believe a the quarter. activity question. repurchase that later. guess, just in value overall shoot And

one So kind of going or an opportunistic a that should kind of expect event? was off you. level elevated we forward Thank

Scott Beamer

of quarter. There well. say was And accelerated a I it from confluence of would understand level an you factors. Yes, purchases it’s this

and our about We operate XXXX, business. long-term continue the cash very been the constrained FY industry. within returns for ability to wood CapEx our to also for be in prospects the We the industry excited and we’ve maximizing

our reducing debt just right three, no an be dividends to capital ongoing organic David, share. number and the number or increasing repurchasing debt now that funds. for So shareholders But leveraging one, and paying in up in deployment reducing priorities. I an basis, we’re addition, to would the in then organic M&A. They change potentially phases, say, to on to opportunity growth – continue we deploy saw there’s those

And see that thing one that So structural our there. think our would don’t to recognize we the capital I a is priorities to I change continue I all priorities. just meet deployment of

the expectations We the high earnings to provide matter having any that it we of customers, haven’t a the to what of of shares that leverage able of value we’re us – priorities achieve. capital and wasn’t it other buying model, to light the our about because is change

lot a We’re of cash. able to generate

but that, opportunity of again, quarter. saw of of to continue to kind these, because deployers going this confluence of We’re factors, the be we thoughtful

David Silver

you much. very Thank

Colleen Mumford

Thanks, Dave.

Operator

Berenberg. the to Your Paretosh Misra of comes next question from line

Your line is now open.

Colleen Mumford

back Welcome Paretosh.

Paretosh Misra

for up. Thanks taking the follow Yes.

EBITDA back the had China. – inflation items? could we from you there way year, that the in looking just a impacted those? Is call, also some revisit know variability quantify to I if buying shared you your some So impact these at and patterns just wondering impact on this from numbers but last

Scott Beamer

of revenue. when to and FY I I’m we about will company past XX%. think help run our were XXXX, think as forward total you a going And the In about to EBITDA metric Paretosh. percent just we this

We’re end going FY XXXX. to

about XX%. have We XXXX ended FY

so were last year. on I And those again, in pressures there our quarter we this and clearly stating this pretty, quarter. And think, thoughtful business were

our we’ll about expected, has So we what profitability had XX%. but end in QX I with that in the FY line had mentioned year trended And for XXXX.

thinking a way about a reasonable if of think we similar to because takes XXXX. mentioned, you’re be that’s puts sort thinking of expectation about I that and different those

pressures to would looking material as the work FY additional of I inflationary pricing treatment that we PIM place be company describe at in raw verbally extra That’s in in continue as always EM have But XXXX, to mentioned in So – some exit And environment with doing increase a evolve, well, things may wood I’d PM our and actions financials. think that’s as in coming even how FY and to in we kind in materials, would forward. going profitability down we’re Q undoubtedly how you’re of And mentioned the general I then plans that. the XXXX. way. be opportunity change about the earlier price And thinking inflation offset on slightly, thinking our some about how the I QX improving of I’d the And business. versus as be thinking of about QX. to about and the

Paretosh Misra

I very is useful. Thanks guys. This all had. That’s

Colleen Mumford

Thanks Paretosh.

Operator

Instructions] Kapsch the Loop Your next question to [Operator of comes Markets. Chris from line Capital

now Your line open. is

Colleen Mumford

Hey, Chris.

Chris Kapsch

for follow-up. thanks taking Hi, Yes. the

litigation. So really the the on IP question

infringement. benefit focused transpired that’s patent this successful The been timing have there’s there curious factored you there everything potential And infringement is for be us you’ve patent benefit, that conclude of you’ve is resolution is the if maybe from then fair of is interpretation any that my range What that similar on case. for benchmark given? secondly, it guidance in valid, infringement this into was any jurisdictions? I’m so And litigation, U.S. to outcome this from which cases is the and of standpoint that a jurisdiction might that other the a

David Li

and Yes, factored early thanks, span, active To a our pull, of upside we Chris. and any working although and of December-ish kind would still about Taiwan. highlight seeing have the we’re expect of action customers sort of Obviously, we just many we enforcement good where guidance. of so in we’re in do scope in a with final We in really feel also not sort question to are that in that. we’re with litigation. brought conversions, that determination we’ve your be we But lot

obviously would going this the the feel a we effort. and So feel confident conversion working is on and on global back far. to what our that prevail from so that say think in and technology We I with it customers heard just is we and – we’re we’ve ITC a merits several significant innovation we’re confident

Chris Kapsch

Good you. Excellent. Thank to hear.

Colleen Mumford

Thanks Chris.

Operator

have I time. back further Colleen queue the in over questions I Speakers, Mumford, you. call the this at to seen no turn

Colleen Mumford

we and that this is the That Materials. all interest Thank time thanks. have Great, for CMC all for morning. your you questions and your

Operator

This concludes for Thank participating have and today’s conference wonderful call. day. you a

You may all disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.