Kemet Corp (NYSE:KEM) Q2 2019 Earnings Conference Call Transcript
Aug 01, 2019 • 09:00 am ET
Good morning. My name is Tom and I will be your conference operator today. At this time, I would like to welcome everyone to the KEMET's First Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions] Thank you.
I would now like to turn the conference over to Mr. Richard Vatinelle. Sir, please go ahead.
Richard J. Vatinelle
Thank you, Tom and good morning, everyone. This is Richard Vatinelle, Vice President and Treasurer. Welcome to KEMET's conference call to discuss the financial results for the first quarter of fiscal year 2020, which concluded on June 30th, 2019. Joining me today on the call is Bill Lowe, Chief Executive Officer; and Greg Thompson, Executive Vice President and Chief Financial Officer.
As a reminder to you, a presentation is available on the website that should help you follow along in the financial portion of the presentation. Before we begin, we would like to advice you that all statements addressing expectations or projections about the future are forward-looking statements. Some of these statements include words such as expects, anticipates, plans, intends, projects and indicates. Although they reflect our current expectations, these statements are not guarantees of future performance and they involve a number of risks, uncertainties and assumptions. Please refer to our 10-Ks or 10-Qs and our registration filing statements for additional information on the risks and uncertainties. On August 29th, we'll be presenting at the IDEAS Conference in Chicago. And on September 25th, we'll be presenting at the Sidoti Fall 2019 Investor Conference in New York.
Now I will turn the call over to Bill.
William M. Lowe
Thank you, Richard and good morning, everyone. We exceeded our guidance this quarter in virtually every category, with a substantial increase in our bottom line, with a top line growth of 5.4% over last year's first fiscal quarter. Looking at the numbers, we started out strong with revenue at the high end of our forecast range of $345.2 million and GAAP and non-GAAP earnings per share of $0.68 and $0.82 per diluted share respectively. We continue to separate ourselves from others in the industry with revenue growing year-over-year and both the gross margin and operating margin lines continuing to increase with expected sustainability for future quarters.
It's worth repeating my comments from last quarter that the structural changes we've made in the business over the past few years are the drivers for our financial performance. These changes involved vertical integration of our tantalum supply chain, a focus on specialty high CV ceramics and the TOKIN acquisition, which were fundamentally game changing. You can find these listed on slide three of our webcast slides.
We are not immune to the industry dynamics, but we are somewhat insulated with our product focus. There are many moving parts today that have an effect on our industry and on the company specifically, but I believe we are uniquely positioned to address them and continue with excellent operating performance this fiscal year. For instance, if I address three key areas quickly, China tariffs, the distribution channel