Align Technology Inc. (NASDAQ:ALGN) Q1 2019 Earnings Conference Call - Final Transcript

Apr 24, 2019 • 04:30 pm ET

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Align Technology Inc. (NASDAQ:ALGN) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Maxim Integrated Fourth Quarter of Fiscal 2017 Conference Call. [Operator Instructions]

I would now like to introduce your host for today's program, Kathy Ta, Managing Director, Investor Relations. Please go ahead, Kathy.

Executive
Kathy Ta

Thank you, Jonathan. Welcome everyone to Maxim Integrated's fiscal fourth quarter 2017 earnings conference call. Joining me on the call today are Chief Executive Officer, Tunc Doluca; and Chief Financial Officer, Bruce Kiddoo.

I would like to highlight that we have posted a supplemental financial presentation to our external Investor Relations website. The information in this presentation accompanies the financial disclosures in our earnings press release and on this conference call.

During today's call, we will be making some forward-looking statements. In light of the Private Securities Litigation Reform Act, I'd like to remind you that these statements must be considered in conjunction with the cautionary warnings that appear in our SEC filings. Investors are cautioned that all forward-looking statements in this call involve risks and uncertainties, and that future events may differ materially from the statements made. For additional information, please refer to the Company's Securities and Exchange Commission filings which are posted on our website.

Executive
Tunc Doluca

Thank you, Kathy. Good afternoon to all our participants. Thank you for joining us on our call and as always, we appreciate your interest in Maxim Integrated.

The June quarter marked the third consecutive quarter in our return to year-over-year growth, led by double digit increases in industrial and automotive. Through solid execution in our manufacturing strategy, we exceeded our profitability targets and demonstrated strong earnings power and cash flow growth. Today, we are announcing a 9% increase in our dividend reflecting our continued commitment to return cash to shareholders and confidence in our long-term outlook.

Let me now discuss our business. I would like to highlight that my end market commentary on the June quarter does not include revenue from the transition to sell-in accounting at one distributor. For details on the growth rates by end market please refer to our earnings presentation on our website.

First, I will comment on automotive. As we expected, our automotive business was flat from a strong March quarter and grew in double digits from the same quarter of the last year. In the near term, considering a relatively soft environment, we are forecasting our September quarter growth rate to be up in the low teens from the same quarter last year.

Given the softness seen broadly across automotive markets for the second consecutive quarter, we believe it is prudent to assume a low teens year-over-year growth rate for this business. We remain highly confident in the long-term fundamentals of our automotive business and believe we are in the early innings in the electronification of cars. The industry is driving the need for advanced vision systems in multiple additional sensors deployed in cars for advanced driver assistance and eventually fully autonomous cars.

Data from these sensors must be transported within vehicles at high speed and with