FEI Company (NASDAQ:FEIC) Q4 2015 Earnings Conference Call - Final Transcript

Feb 02, 2016 • 05:00 pm ET

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FEI Company (NASDAQ:FEIC) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Executive
Don Kania

expectations factor in a modest improvement in the semiconductor spending as the year progresses and accelerating conversion of the backlog in life sciences to revenue. Backlog of $591 million exiting 2015 provides significant visibility into our Science and Service revenue in 2016.

For the full year 2016 organic revenue growth is expected to be in the range of 3.5% to 6.5%. Reported revenue is expected to be between $1.02 billion to $1.05 billion, up 10% and 13% respectively year-over-year. For the full year 2016, EBITDA is expected to be in the range of $235 million to $245 million. GAAP EPS is expected to be in the range of $3.55 to $3.70. DCG is expected to contribute revenue of approximately $60 million in 2016, reflecting a negative purchase accounting adjustment of approximately $12 million. DCG is expected to reduce full-year GAAP EPS by approximately $0.10.

In summary, we expect a year of improved organic revenue growth in 2016 with a continuation to the strong earnings and cash generation delivered in 2015. Our current view for the year assumes flat to slightly up product revenue in our Industry group and growth in product revenue in our Science group, which is supported by our backlog and order pipeline in life sciences. In addition, we're expecting our service businesses to continue to grow at near historic rates. Revenue growth in 2016 is expected to be biased towards the second half of the year. High-end tool revenue in our Science group is driven by our customers' facility readiness and within our Industry group, semiconductor customer demand is expected to improve in the second half.

In closing, I would like to thank our employees for their hard work in driving a record fourth-quarter results. I would also like to welcome all the DCG employees into the FEI family. With that operator, we are now ready for questions.