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Entegris' CEO Discusses Q3 2011 Results - Earnings Call Transcript

In terms of other unit-driven products, we achieved record sales of our 300 mm FOSB wafer shippers, although this growth was somewhat offset by lower sale of shippers for legacy wafer sizes. Our CapEx-driven sales in the third quarter declined 22% sequentially and represented 36% of total sales. This was in line with our expectations and reflected lower OEM tool shipments and fewer fab construction projects across the industry. We felt the impact in our sales of CapEx-driven products such as fluid handling components, purification systems and FOUPs. In our markets outside of semiconductor, order trends also softened in TFT/LCD data storage, as well as sales of graphite products for certain high-tech industrial markets, they all declined modestly. In our newer emerging markets, sales of solar products were flat, although we continue to get traction with the new electrostatic truck used in the ion implant process for solar applications. While the demand environment in Q3 was far from ideal, we continue to be pleased with how we're executing our strategy, both in terms of our long-term growth as well as financial execution. We achieved a number of design wins for our fluid handling products, our new OEM platforms that will yield revenue as sales of those platforms begin to ramp. We also have strong performance from other new products such as our Torrento filters and the 300 mm wafer shippers I spoke about earlier. And we continue to win a growing share of available new opportunities for our advanced FOUPs. Several members of the Entegris Senior Leadership Team and I just returned this week from visiting customers in Asia. The conversations we had reaffirmed our conviction that we are continuing to gain market share at the advanced nodes in both our unit-driven as well as capital-driven product areas. This is a direct result of our strategy to become even closer to our strategic and critical customers. And we're doing that in a number of ways, including engaging in oil joint development projects with customers, as well as with key industry consortia and strategically moving resources such as manufacturing and engineering closer to our customers. As an example of that last week, we inaugurated a new manufacturing and development center in Hsinchu Science Park in Taiwan, which is a stone's throw from Taiwan's largest foundries and memory makers, as well as a number of LED manufacturers. We're also increasingly aligned with customer technology roadmaps and are continuing to develop unique solutions to meet their contamination control challenges, particularly for 28-nanometer and below semiconductor processes for EUV and for 450 mm. These strategies continue to service well even in the current uncertain environment. Over the past several quarters, we have performed well against our peers and against industry metrics. Over the past 9 months, year-to-date, we've grown by 16% and have generated significant amounts of cash flow while executing consistently to our model. We expect, for when 2011 is complete, it will be a record year for revenues, profits and cash flow for Entegris. And looking out to the future, our commitment to R&D and the technology roadmaps of our customers, as well as our momentum in emerging market is positioning us well to achieve our goal of reaching $1 billion in revenue over the next 2 to 3 years.

Read the rest of this transcript for free on seekingalpha.com

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