Rudolph Technologies Inc. (NYSE:RTEC) Q2 2017 Earnings Conference Call - Final Transcript

Aug 02, 2017 • 04:30 pm ET

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Rudolph Technologies Inc. (NYSE:RTEC) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day. And welcome to the Rudolph Technologies Second Quarter Earnings Release Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Michael Sheaffer, Senior Director of Investor Relations. Please go ahead, sir.

Executive
Michael Sheaffer

Thank you, Isaac, and good afternoon, everyone. Rudolph issued its 2017 second quarter financial results release this afternoon shortly after the close. If you have not received a copy of the release, please refer to the company's website at www.rudolphtech.com, where a copy of the release is posted.

Joining us on the call today are Mike Plisinski, Chief Executive Officer; and Steven Roth, Chief Financial Officer.

As is always the case, I need to remind you of the Safe Harbor regulations. Any matters today that are not historical facts, particularly, comments regarding the company's future plans, objectives, forecasts and expected performance, consist of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Such estimates, whether expressed or implied are being made based on currently available information and the company's best judgment at this time. Within these is a wide range of assumptions that the company believes to be reasonable. However, it must be recognized that the statements are subject to a range of uncertainties that can cause the actual results to vary materially. Thus, the company cautions that these statements are no guarantees of future performance.

Risk factors that may impact Rudolph's results are described in the company's latest Form 10-K, as well as other periodic filings with the SEC. Rudolph Technologies does not update forward-looking statements and expressly disclaims any obligation to do so. Today's discussion of our financial results will be presented on a non-GAAP financial basis unless otherwise specified. A detailed reconciliation between GAAP and non-GAAP results can be found in today's earnings release.

I will now turn the call over to Mike Plisinski. Please go ahead.

Executive
Michael Plisinski

Thank you, Mike, and welcome to the Rudolph team. Good afternoon to all of you and thank you for joining us on our call this afternoon. The Rudolph team delivered another strong result in the second quarter of 2017, setting an all time revenue record for the company and coming in at the high-end of both our revenue and earnings guidance.

Revenue was up 11% over the prior quarter, which marks our 12th straight quarter of year-over-year growth, highlighting both the growth of the markets we are serving, as well as the value our customers are realizing from our focus on providing comprehensive solutions to their challenges. Underscoring the leverage in our operating model we achieved approximately 30% improvement in operating income for the quarter. My remarks today will highlight activities in our major served markets followed by remarks on our outlook for the third quarter.

So let's begin with our largest market segment advanced packaging. Compared to our prior quarter, our advanced packaging revenue increased 18% and within that market we saw 34% increase in revenue from outsourced packaging service providers, primarily from devices