Ultratech, Inc. (NASDAQ:UTEK) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 11:00 am ET


Ultratech, Inc. (NASDAQ:UTEK) Q4 2014 Earnings Conference Call - Final Transcript


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Good day and welcome to the Ultratech Fourth Quarter 2014 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Suzanne Schmidt. Please go ahead, ma'am.

Suzanne Schmidt

Thank you, operator. Good morning, everyone and thank you for joining us today to discuss Ultratech's financial results for the fourth quarter of 2014. A press release detailing our financial results was distributed this morning by Business Wire at approximately 6:00 a.m. and is available on Ultratech's website. A webcast replay will be available on the website for approximately one week after the call.

Joining me on today's call are Art Zafiropoulo, Chairman and CEO; and Bruce Wright, SVP of Finance and CFO. After management's opening remarks, we will open the call for your questions.

And with that, I will turn the call over to Art.

Arthur W. Zafiropoulo

Thank you, Suzanne. Good morning and welcome to our fourth quarter 2014 conference call. During the course of this presentation, we'll make projections or forward-looking statements regarding future events and the financial performance of the Company. We wish to caution you that such statements are just projections and the actual events can differ materially.

We refer you to documents the company files from time-to-time with the Securities and Exchange Commission, specifically the company's annual report filed on 10-K for the period ending December 31, 2013, filed as of February 28, 2014, and the quarterly report filed on 10-Q for the quarter ending September 27, 2014 filed as of October 31, 2014. These documents contain and identify important factors that could cause the actual results to differ materially.

I believe that 2014 was a transitional year for Ultratech. We have been a logic centric capital equipment supplier which is primarily driven by the consumer mobile market. We have been expecting that the leading foundry companies would progress more rapidly and lowering FinFET cost to yield improvement, but that did not occur in 2014. However progress has been made with several logic foundries now still we ramping up there FinFET production, which will continue for the next several quarters.

It remains to be seen as to how fast that will occur which will be driven by further improvements in yield. We believe from information we currently have that the second half ramp this year should be stronger than the first half. Again, I would like to caution you that we do not have clear visibility as to the short-term future where customers continue to change their plans. We are all very optimistic that the future is bright for the logic market and expect to return to our previous growth model. During the pause, in logic capital spending the memory market has been literally on fire. We have spoken many times that our company has that logic focused and during this pause our strong balance sheet has allowed us to invest significantly in the Superfast inspection products. The new product will be needed for both memory and logic devices, but the market needs