Ultratech, Inc. (NASDAQ:UTEK) Q1 2015 Earnings Conference Call - Final Transcript

Apr 23, 2015 • 09:00 am ET


Ultratech, Inc. (NASDAQ:UTEK) Q1 2015 Earnings Conference Call - Final Transcript


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Good day and welcome to the Ultratech First Quarter 2015 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.

Suzanne Schmidt

Thank you, operator. Good morning, everyone and thank you for joining us today to discuss Ultratech's financial results for the first quarter of 2015. A press release detailing our financial results was distributed this morning by Business Wire at approximately 6:00 AM Pacific Time 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 Chief Executive Officer and Bruce Wright, Senior Vice President of Finance and Chief Financial Officer. 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 Zafiropoulo

Thank you, Suzanne. Good morning and welcome to our conference call. During the course of this presentation, we'll be making projections or forward-looking statements regarding future events and the performance of the Company. We wish to caution you that such statements are just projections and the actual results can differ materially. We refer you to the 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, 2014, filed as of February 27, 2015 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. The first quarter bookings were led by our advanced packaging products. During the first quarter, we experienced a sharp upturn from leading OSAT companies in the Pacific Rim. These AP orders were driven by increasing wafer level processing and copper pillar applications. Also we are seeing expanding bumping capacity in China. We also see conversion from aligners to steppers driven by the need for advanced technical specifications provided in our advanced 1X steppers and unattainable with scanners.

We expect this increased use of our advanced packaging steppers to continue in the second quarter and based on our current projections throughout the balance of 2015. We currently have commitments through the third quarter and have increased our capacity to produce a larger number of systems should this projected increase materialize. In order to meet the customers projected needs, we've increased our optics assembly plants which is the longest lead time needed to produce increase AP system shipments.

We believe that the increase in AP stepper orders has increased our market share from the last report of 70% to between 75% and 80%. We'd also mentioned that in the past quarter we began working with two major companies one a logic foundry and the other a mobile related company for 3D packaging. In the first quarter, we prepared and implemented limited production of one of these two companies and the