Cabot Microelectronics Corporation (NASDAQ:CCMP) Q3 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 10:00 am ET


Cabot Microelectronics Corporation (NASDAQ:CCMP) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Cabot Microelectronics' Third Quarter Fiscal 2019 Earnings Conference Call. [Operator Instructions]. Later we will conduct a question and answer session, and instructions will follow at that time. [Operator Instructions].

I would now like to introduce your host for today's conference, Colleen Mumford. You may begin.

Colleen Mumford

Thank you. Good morning. With me today are David Li, President and CEO; and Scott Beamer, Vice President and CFO.

Last night, we reported results for our third quarter of fiscal 2019, which ended June 30th, 2019. 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 on the Investor Relations center on our website,

A webcast of today's conference call and a script of 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 30th, 2018, our Form 10-Q for the quarter ended March 31st, 2019, and our form 10-Q for the quarter ended June 30th, 2019, which we expect to file by August 9th, 2019.

We assume no obligation to update any of this forward-looking information. Also, our remarks this morning reference certain non-GAAP financial measures, including adjusted pro forma results. Our earnings release and slide presentation include a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure.

We also provided supplemental pro forma information in this quarterly release, which compares current results as if Cabot Microelectronics owned KMG Chemical during the comparable period last year. Additionally, data reflects rounded values throughout this discussion and the accompanying slide presentation.

I will now turn the call over to David.

David H. Li

Thanks, Colleen. Last night, we announced results for our third quarter of fiscal 2019. We set another record for revenue, achieving $272 million this quarter, which is up 2% sequentially and in line with our previously provided guidance. We believe our results this quarter demonstrate our continued strong execution as well as the benefits of having a broader portfolio of solutions that enabled performance in multiple industries with greater worldwide geographic balance, following our successful acquisition of KMG last year.

On a segment level and as expected, revenue in Electronic Materials was essentially flat sequentially. Within the backdrop of an ongoing soft semiconductor industry environment, we believe these results are reflective of the resilience of our business, as well as the breadth of our product offerings as we saw increased demand from advanced logic customers as well as stabilization in the foundry segment, which helped balance weakness from memory customers.

Revenue and