Entegris, Inc.

please stand by. Your program is about to begin. If you need assistance during your conference today, please press star zero. Welcome to the Integris First Quarter 2024 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. So others can hear your questions clearly, we ask that you pick up your handset for best sound quality. Lastly, if you should require operator assistance, please press star 0. I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations.

Good morning, everyone. Earlier today, we announced the financial results for our first 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 of the presentation. On this call, we will also refer to non-GAAP financial measures as defined by the SEC in Regulation G. You can find a reconciliation table in today's news release, as well as on the IR page of our website at attecris.com. And finally, for your reference, we have included in the earnings slide presentation consolidated and divisional P&Ls for Q1, and for all four quarters of 2023 that exclude divestitures. On the call today are Bertrand Leroy, our CEO, and Linda LaGorga, our CFO. With that, I'll hand the call over to Bertrand.

Thank you, Bill, and good morning. I am pleased with our start to the year. For the first quarter, sales of $771 million were at the high end of our guidance. And gross margin, EBITDA, and non-GAAP EPS were above our guidance. Looking deeper at our financial performance, sales were down in all divisions and across most product areas as expected and in line with normal seasonality. However, we did see sequential growth in product lines that are critical to our customers' leading edge node transitions, including selective edge and advanced deposition materials. From a profitability point of view, even with the market uncertainty, we chose to maintain high levels of investment in R&D. Despite this and despite the lower sales volumes, we delivered strong results in terms of gross margin and EBITDA. Linda will provide more details on all of that shortly. Let me address a few other highlights of the quarter. On March 4th, we announced the sale of the PIM business for a total of up to $285 million. The sale of PIM completes our planned divestiture of four non-core assets, PIM, QED, electronic chemicals, and a business we sold to Element Solutions. The approximately $1.3 billion in proceeds from those divestitures were used to significantly pay down our debt. Next, we're making steady progress with our two major investments in new manufacturing capacity, which are vital for us to fully realize our mid- and long-term growth. In Taiwan, our new Kaohsiung facility is on track to ramp up production and is expected to contribute $40 to $50 million of revenue in the second half of the year. And in Colorado, Construction at our Rock Riemann site is progressing rapidly, and we continue to expect initial sales from this facility to be generated in the first half of 2025. Moving on to our outlook for this year, our view of the semiconductor industry has not changed. We do believe that the market is healthier with normalizing inventories and a more stable demand environment. and we continue to expect a gradual market recovery throughout the year. With this as a backdrop and based on recent forecasts from our customers, for the full year 2024, we continue to expect the market will be up approximately 4% based on our unit and capex mix. In addition, given our strong market position in new logic and memory nodes, We continue to expect to outperform the market by four to five points this year, excluding the impact of divestitures. Putting it all together, we expect our sales in 2024 will be approximately $3.35 billion. We continue to expect EBITDA to be approximately 29% of revenue and non-GAAP EPS to be greater than $3.25. This annual guidance, of course, includes two months of the PIM business prior to its sale in early March. Let me now turn the call over to Linda. Linda?