Cabot Microelectronics Corporation (NASDAQ:CCMP) Q2 2018 Earnings Conference Call - Final Transcript
Apr 26, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Cabot Microelectronics Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference may be recorded.
I would now like to turn the conference over to Ms. Colleen Mum ford, Investor Relations Director. Ma'am, you may begin.
Good morning. My name is Colleen Mum ford and I am Cabot Microelectronics' new Investor Relations Director. I've worked at CMC for over 20 years in various roles including R&D, Quality and Human Resources. I'm excited to be in this role as we report our second quarter results and I look forward to working with you in the future. With me today are David Li, President and CEO and Scott Boomer, Vice President and CFO.
This morning we reported results for our second quarter of fiscal 2018, which ended March 31, 2018. Whether you are joining us online or over the phone, we encourage you to review the investor presentation that we've made available under the Investor Relations section of our website, cabotcmp.com. We made these slides available at approximately the same time as the issuance of our earnings release this morning.
A web cast of today's conference call and the script of this morning's prepared comments will also be available on our website shortly after this live conference call. You may also request any of the information by calling our Investor Relations office at 630-499-2600. Please remember that our discussions today may include forward-looking statements that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from these forward-looking statements. These risk factors are discussed in our SEC filings, including our Form 10-K for the fiscal year ended September 30, 2017. We assume no obligation to update any of this forward-looking information.
Also, our remarks this morning reference non-GAAP financial measures. Our earnings release includes a reconciliation of our GAAP to non-GAAP financial measures.
I will now turn the call over to Dave.
Thanks, Colleen. Good morning, everyone, and thanks for joining us. This morning we announced another quarter of very strong financial performance, including record quarterly revenue, net income, and earnings per share. This is the fourth consecutive quarter in which we have reported record revenue, which we believe demonstrates the continued strong execution of our strategic initiatives complemented by robust industry demand. Scott will provide additional details about our financial results later in the call.
Let me start by providing some details on the current operating environment and our view of global semiconductor industry demand. During the March quarter, industry demand remained strong, particularly in the memory segment, where our customers continued their migration to 3D NAND. We currently estimate that approximately 50% of 2D to 3D NAND wafer capacity conversion has occurred, with the remainder expected to be completed over the next several years. We've also seen continued