Entegris, Inc.

Hey everyone and welcome to the Integra's third quarter 2020 earnings release call. Today's call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Bill Seymour, Vice President of Investor Relations. Please go ahead, sir.

Earlier today, we announced the financial results for our third quarter of 2020. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties are contained in our most recent annual report and subsequent quarterly reports that we filed with the SEC. Please refer to the information on the disclaimer slide in the presentation. On this call, we will also refer to non-GAAP financial measures As defined by the SEC and Regulation G, you can find a reconciliation table in today's press release, as well as on the investor relations page of our website at Integers.com. On the call today are Bertrand Lois, our CEO, and Greg Graves, our CFO. With that, I'll hand the call over to Bertrand.

Thank you, Bill, and good morning, everyone. As we have discussed since early in the outbreak, of the pandemic, our primary focus has been keeping our teams safe. To that end, we have continued to strengthen our safeguards and protocols, and I am proud of the safe environment we have created for our Integris colleagues. I am also very proud of the tremendous work by our global teams to maintain high service levels in support of our customer ramps around the world. And as we begin the final quarter of the year, our operations and supply chain are all operating at normal levels. Let me now turn to our third quarter performance. And I will start by saying that I am very pleased with our results and the quality of our execution. In the third quarter, sales grew 22% year-on-year and 7% sequentially above our guidance. Growth was strong across all three divisions as we benefited from several node transitions and strong overall demand for our products and solutions. Growth margins improved year on year and sequentially and adjusted EBITDA was up 32% year over year and up 8% sequentially. Finally, our non-GAAP EPS of 67 cents was above our guidance, up 34% year on year and up 12% sequentially, showcasing the leverage that exists in our business model. Our record Q3 revenue was driven by our continued outperformance in a few key areas. First, we continue to benefit from the accelerated demand for our leading edge solutions in advanced technology nodes, especially in liquid filtration, advanced deposition materials, and formulated claims. The second area of strength was in our ANH division and its solutions for new FAP projects. Growth was strong in fluid handling, FOOPS, and sensing and control products. Within our sensing and control platform, in particular TSS, which we acquired in 2018, and GMTI, which we just acquired in July of this year, had a strong quota. As you know, these complementary solutions provide critical particle and process control for the CMP slurry chemical delivery loops. All in all, a very good quarry and excellent execution by the team. Next, I would like to quickly address the evolving US-China trade situation. To put things in context, year to date, China represented 13% of our revenue and the local customers in China comprise less than half of that. We are obviously monitoring closely the latest developments from the US administration in order to remain in full compliance with the regulations. Unfortunately, to date, the various trade restrictions have had no material impact on our overall business. Now, I would like to discuss a new program I am very excited about. This summer, we officially launched Integris' Corporate Social Responsibility Program. We have been active in many elements of CSR and ESG in the past, but we had yet to fully articulate our philosophy, purpose, and aspirations. In my CSR letter posted on our website in August, we laid out our belief that What we do as a business must be closely linked to what we stand for as an organization and have a lasting positive impact on our world. It also laid out the four pillars of our CSR approach, which are innovation, safety, personal development and inclusion, and sustainability. Next week, we will be announcing ambitious goals for each of these four pillars. And there will be a lot more to come from us in the weeks to come on CSR and ESG and Integris. Looking ahead to the fourth quarter and the balance of the year. From an end market perspective, the semi-market appears to be holding up better than expected, driven by the well-documented strength in areas like data centers, 5G, laptops, and gaming, and relatively stable conditions in the memory segment. Lastly, global auto and industrial markets appear to be rebounding, which should translate into strong demand in mainstream traps. For the full year 2020, we now expect the market based on our unit capex mix will be up low to mid single digits compared to our previous expectations of down mid single digits. In addition, demand signals in our own business continue to be strong. In particular, our advanced memory and logic customers continue to be very committed to their new transitions. And given our new opportunities at these nodes, we expect to sustain our strong market outperformance. More broadly, we continue to be very optimistic about the long-term fundamentals of the semiconductor market. At Integris, we are benefiting from the two intersecting themes of the growing importance of process materials and materials' purity and the impact they have on semiconductor performance, cost, and reliability. We expect that these key trends will continue to result in increased Integris content per wafer. In conclusion, I am very pleased with the performance and the resilience of our business and I am optimistic that we will have a strong close to the year. In 2020, we expect to deliver record sales and EPS, which I am especially proud of, considering the many challenges we faced during the year. Before I turn the call over to Greg, I would like to remind you of our upcoming Virtual 2020 Investor and Analyst Day on November 17th. It's been a few years since we've done an Analyst Day, so we look forward to updating you on the Integris story. Now, let me turn the call to Greg. Greg?