On the call today are Gideon Argov, President and CEO; Bertrand Loy, Chief Operating Officer; and Greg Graves, Chief Financial Officer.Gideon will now begin the call. Gideon Argov Thank you, Steve. Good morning, and thank you for joining the call. I'm pleased to report that Entegris achieved another record year in terms of sales, earnings and cash flow. We grew our sales 9%, $749 million from the prior year; achieved cash EPS of $0.80 and generated $157 million in cash from operation. Above all, we continue to execute well operationally and to move forward on our growth strategies. We're proud of this performance particularly during the year in which the industry slowed dramatically in the second half and the world contended with considerable global economic challenges. In the fourth quarter, sales, as we anticipated, were $164 million, down 5% from the third quarter. Cash EPS was $0.16 and our adjusted operating margin was 14.08%, both in line with our target operating model. We also generated nearly $45 million in cash from operations during the quarter. In terms of fourth quarter trends and for much of the second half of 2011, the semiconductor industry was a tale of 2 cities. Technology-driven spending by the leading semiconductor device-makers continued unabated while on the legacy side of technology spectrum, production rates in the industry remains sluggish through the fourth quarter. This was reflected in our business results. We continue to gain traction and growth with our products designed to support the brand's processes. Our mix of sales, 64% unit-driven, the 36% capital spending-driven, was virtually unchanged from the third quarter. However, we had growth in several advanced filtration product lines for wet etch and clean and photochemical applications. This was offset by lower sales of some legacy-unit driven products which has shippers used for 200 mm and below wafers.
Similarly, we have strong sales of advanced CapEx-driven products, which is our family of new 300 mm FOSB, which is designed to provide the industry's most comprehensive protection against contamination within the wafer handling environment at 32 nanometers and below. In fact, 70% of the FOSB we sold in the fourth quarter were models that are less than 1 year old. In contrast, sales of FOSB handling components used to outfit fab infrastructure were soft during the quarter.Looking at our business by market. Fourth quarter trends were also not uniform. Our semiconductor-related sales representing 73% of total declined to 3% from the third quarter. In our markets outside SEMI, sales declined 10% reflecting the slowdown of the TFT/LCD and LED markets as well as lower daily storage shipment due to the flooding in Thailand. Nonetheless, we were encouraged by progress in some emerging markets such as Solar, where our sales doubled in 2011 and hit record levels during the year, in which the Solar industry was confronted by huge overcapacity and substantial price decline. As we move into 2012, we have several reasons to be encouraged. The exit of 2011 laid picked up in demand that has sustained itself thus far into the first quarter. Our strategic initiatives are enabling us to become increasingly aligned with the technology roadmaps of the largest and most influential players in the industry. This is allowing us to penetrate opportunities at the 28 nanometer and below semiconductor process nodes as well as for EUV and for 450 mm. The opportunities are both near and long-term. We are not content with simply maintaining our edge in these markets. We intend to extend our technological and market leadership. We're making major investments with the leader in 450 mm wafer handling as that technology is adopted over the next several years. We'd also intend to invest in our core membrane technology, our coatings technologies, to continue to create differentiated, high-value, unit-driven products for the most advanced and demanding semiconductor applications. Read the rest of this transcript for free on seekingalpha.com