Entegris, Inc.

Good morning, everyone. Earlier today we announced the financial results for our second quarter of 2021.

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 could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have 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 on today's news release as well as on our IR page of our website at integrus.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 to all. We are very pleased with our second quarter performance and I want to start by recognizing the phenomenal job done by our manufacturing and supply chain teams. During the quarter, sales grew 27% year-on-year and 11% sequentially. Our growth was strong across all three divisions as we benefited from robust industry conditions and increasing demand for products and solutions. We experienced strong flow-through on our sales and margins improved nicely, leading to record operating income in EBITDA for the quarter. In addition, non-GAAP EPS was up 42% year-over-year and 21% sequentially. Let me provide a little bit more color on our revenue performance. From a product standpoint, we continued to benefit from the growing demand for our leading unit-driven solutions, especially in strategic areas like liquid filtration, which is up 24 percent year-to-date, and advanced deposition materials, which is up 28 percent year-to-date. Another highlight of the quarter was obviously our capex-driven product lines, which are following the trend of a robust industry capex. Growth was especially strong in the fluid handling, wafer handling, and gas purification product lines, which in the aggregate grew 37% in the first half. In addition, our Aramis high purity bags, which are used for COVID-19 vaccines worldwide, recorded stronger sales than planned. We now expect that Aramis sales will reach approximately $50 million this year. It is also worth noting that the unique characteristics of the RMS bag, specifically high purity and high structural integrity, are of increasing interest for use in other non-COVID biologics. I am also very pleased to share that during the quarter, we made an additional $3 million contribution to the Integris Foundation, which funds STEM scholarships for women and individuals of underrepresented communities. The first round of these scholarships were awarded for the upcoming school year. During the first half of this year, we achieved organic growth of approximately 25%, impressive considering the various production and supply chain constraints the industry and integrists have faced. Our manufacturing and supply chain teams have done an amazing job and have been instrumental in delivering these great results. However, in this constrained industry environment, every day is a battle and likely will be for a while. That said, we remain confident about our execution going forward. On that note, last quarter we outlined three main issues we've been addressing, and I'm pleased to report that we've made solid progress. The first area was labor constraints in some of our US manufacturing locations. During Q2, we were able to alleviate most of that pressure by adding production headcount and by moving many of our operations to a 24-7 work schedule. In addition, we expect to bring new production equipment online in Q3, which will bring additional capacity to certain critical product lines. The last area relates to industry freight capacity and component availability, and we expect these constraints to ease as we progress through the second half of this year. Looking at the full year, our outlook for the industry and integris has improved again. The semi-market looks increasingly strong across the logic, memory, and mainstream segments. driven by improving demand trends in areas like mobile phones, high-performance computing, IoT, and auto. For the full year 2021, we now expect the market, based on our unit capex mix, will be approximately up 17% compared to our previous expectation of up 13% to 14%. Demand for our solution set is very good, and our order book continues to be at a record level. As a result, we expect to outperform the market and now expect our sales growth for the full year 2021 to range from 21% to 22% compared to our previous expectation of up 17% to 19%. Finally, we expect the EBITDA flow-through to be in line with our target model and now expect full-year 2021 non-GAAP EPS to exceed $3.30, which is starting to approach the 2023 EPS target of greater than $3.55, which we communicated in our Analyst Day last year. Looking further ahead, the long-term fundamentals of the semiconductor market are very encouraging. Positive secular demand trends have become increasingly evident, driven by accelerated digitalization, 5G, and high-performance computing, to name just a few. In addition, the pace of node transitions for both logic and memory has quickened in recent years, and device architectures are becoming more much more complex. This is great news for Integris because the unique set of capabilities we have built around process materials and materials purity will be the key enablers of these new chip architectures. And this will translate into our rapidly expanding served market and increasing Integris content per wafer. And with 70% of our revenue, Unit-driven or recurring in nature, we expect our business model to be more resilient across cycles, as it has proven to be the case over the past decade. Finally, I want to take a moment to thank our customers for the trust and confidence they place in Integris. And once again, thank the Integris teams around the world for their incredible work. Now let me turn the call to Greg. Greg?