Cabot Microelectronics Corporation (NASDAQ:CCMP) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET


Cabot Microelectronics Corporation (NASDAQ:CCMP) Q1 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Cabot Microelectronics First Quarter Fiscal 2019 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 is being recorded.

I would now like to introduce your host for today's call, Ms. Colleen Mumford, Investor Relations Director. Ms. Mumford, you may begin.

Colleen Mumford

Thank you, Sherrie. Good morning, everyone. With me today are David Li, President and CEO, who is participating from Asia; and Scott Beamer, Vice President and CFO.

Last night we reported results for our first quarter of fiscal 2019, which ended December 31, 2018. Whether you're joining us online or over the phone, we encourage you to review the investor slide presentation that we've made available under the Quarterly Results section of the Investor Relations Center on our website,

A webcast of today's conference call and the script this morning's prepared comments will also be available on our website shortly after this live conference call. You may 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, 2018 and our Form 10-Q for the quarter ended December 31, 2018, which will be available by February 11, 2019. We assume no obligation to update any of these forward-looking information.

Also, our remarks this morning reference non-GAAP financial measures. Our earnings release and slide presentation include a reconciliation of GAAP to non-GAAP financial measures. Additionally, data is represented by rounded values throughout this discussion and in the slide presentation. Please save the date for our Investor Day event, which will be held on June 18 at NASDAQ MarketSite in New York City. Further details and formal invitations will be sent out in the coming weeks.

I will now turn the call over to Dave.

David H. Li

Thanks, Colleen. Good morning, everyone, and thanks for joining us.

I'm excited to announce strong results for our first quarter, especially since this is the first time we are reporting performance for our combined company following the acquisition of KMG, which closed in mid-November. As a reminder, our first quarter of this fiscal year 2019, includes approximately six weeks of KMG results and a full quarter of CMC results.

We are also introducing a new reporting structure, which includes two segments; Electronic Materials and Performance Materials. Electronic Materials includes products and solutions for the semiconductor industry and is comprised of CMC's legacy CMP slurries and polishing pads businesses as well as the recently acquired KMG electronic chemicals business. Performance Materials consists of KMG's pipeline performance, wood treatment and CMC's legacy QED business.

Our first quarter revenue increased 58% compared