Entegris (ENTG) 14 Feb 232022 Q4 Earnings call transcript

Good day, everyone, and welcome to the Entegris Q4 2022 Earnings Release Call. Today’s call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Bill Seymour, Entegris’ VP of Investor Relations. Please go ahead, sir.

Good morning, everyone. the for announced of fourth we XXXX. today, financial our results quarter Earlier

I remind the statements like comments we from and would Before begin, differ could to of and include materially forward-looking actual results number projected today some listeners statements. statements. a These in involve those risks uncertainties, forward-looking will our that

refer reports information to presentation. the annual report recent regarding our in most with the on these Additional information filed subsequent the risks that quarterly disclaimer contained SEC. the have and Please uncertainties is in we and slide

this to SEC as On call, financial we G. Regulation refer will the non-GAAP by also defined measures and

You on help provided had our your in of table our quarters modeling, earnings in well in pro forma slide year full IR the can XXXX. page website all a as To P&L as of reconciliation and entegris.com. for today’s we news find the our release at

today CFO. and are CEO; Bertrand our I’ll On over Bertrand. call that, the the With call to Loy, our Graves, Greg hand

Bill. morning the solid, results were I’d the all. of in Good to start quarter our in recent market. that decline fourth semi light the in especially you, Thank

non-GAAP on year-on-year was reported up within sales forma pro guidance up EPS $X.XX. EBITDA margins On our year-on-year. XX% a X% For basis, and basis, in quarter, and the quarter sequentially. the X% were down were a sales XX% were

driven year customers part up and billion technology with in basis on estimate strategic the of generation strong lithography led the to at at large solutions the basis, and pro production deposition our Lam map. Looking technology develop $X.X XXX materials, market was sales exceeded are were next growth dry like growth above of approximately the importance market filtration, forma be systems the semiconductors. pro EUV DRAM purification a a advanced points growth photoresist and XX%, collaboration XXXX liquid of announcement highlights XX% the used full edge XXXX selective was nodes, which by this included of to sales. and sales year in for gas EBITDA growing road a logic of our position by above leading of edge, solutions Other for We Research to forma

Colorado very in made Another targeted progress of build end was the initial to production operations new expected a of the is start begin Taiwan, of facility second December, center good which plans construction announced in of our which in we the XXXX. to quarter in year. new Springs, the to And initial the commercial this by third manufacturing half is manufacturing in

integration, Moving making been an update progress fronts. CMC on on many to on we've critical the excellent

process its the share focused We place milestone see customers this revenue module the year. have in of EMP million conversions which synergies, believe earlier for migration completed for capabilities we for this into a in for completed solutions be this run our major driving unique team of are realization on around that on we customers and these the second is be time first $XX of translate And will this our month. track in The to integrity. am synergies synergy to the I higher and value will was and plans this dedicated ERP the pleased report faster to improved the performance ultimately rate ERP half to the a by to successfully also common summer. target deliver which cost for platform

to planned divestitures the CMC the transaction materials terminated the side portfolio, PIM we on effective XX. Next February

And the $XX around approximately purchase announcement you million, regulatory QED's ago is a of protracted sale revenue $XXX Technologies. of This expected closing million, to deal. million. current around of this concerned and price close annual Given were we EBITDA quarter. is $XX is process the QED the the few with transaction environment, of the uncertainty regulatory saw the also about and weeks

uncertainty start with to play units year is the particularly we and XXXX, be the and the down a this relying ahead of to still the XXXX, third in year mix, how Looking market, downturn CapEx frankly, forecasting shape about To out, semiconductor based party of expect for industry approximately customers challenging. regarding is the year will magnitude industry. largely full XX%. using our lot on a and this discussions of on our estimates, the There combination

quarter we While second that limited, is the bottom year. the in of visibility currently expect will the industry

three are there play XXXX, will in believe about our think favor. I factors that we As

we it much as logic exposed to memory. are First, relates to more industry, than the

CapEx, Second, memory node transitions sales appear to a for portion that logic looking Construction, significant more our compared of And new of to which is that the third, this be WFD. and for year. is linked of on resilient currently the track is largely Fab XX% to

pro years, a outperformances on basis approximately we end outperform points, to high these three points the is in the wins six the and to we our discussed position in five deck. strong expect Energy our forma at which of target by Given market recent

we actual continue fourth you million quarter will included was in Government's our impact to impacted a in $XX be our $XX as US. these to XXXX the quarter that to export sales in new impact from expect restrictions million, controls guidance China. by closer the Finally, $XX and recall, million The fourth

high at basis. all in but for is of $XX into on sales restrictions to pro expectations percentage in factored million quarter, single XXXX our impact we these forma expect it be a digits significant Putting already lesser our the to XXXX. together, wise a per approximately the degree, down

to of for we XX% to be expect EBITDA revenue. approximately Wrapping XX% our XXXX, outlook

this expect year you to manage can Given close on dynamically keeping industry the business our us challenging backdrop, cost. a eye

in will to flow XXXX. we organization, an repayment As be priority cash and debt giving

In improving compensable company we the have levels a year. fact, for made this entire target inventory

The way doubling remain industry size poised be XXXX. the to growth the by business the While industry, trillion for will year is of $X intact. this semiconductor challenging drivers in growth to long-term secular our a for positive on

the complex. more addition, are strong and device memory of for transitions and be both In becoming continue node much pace logic architectures to

breadth acquisition of the contamination improve their These capability enable into unique with for market us our expanding year. and and Entegris’ Entegris. will to of material translating content solutions science time device offer customers to our control performance and trends And help increasingly rapidly per and shorten solutions wafer growth share are to in critical CMC, mission

will revenue be of In addition, participants. now to we our prove our relative with expect to resilient platform other approximately industry driven, unit XX%

teams place I to would was customers confidence our to moment like chain Entegris. As what a world Entegris we incredible of take challenging performance for while a in close And the a also integration thank gratifying trust thank and and fast paced industry want for dynamic they to complex supply solid [inaudible] commitment year, delivering around environment, the challenges I a the CMC. yet their and risk the navigating

congratulate what his over want and this advocate two to it CFO, on retirement thank me hand to years XX I Greg to upcoming Greg, have as over Before and the partner has his decades. to is for last him today. grown a shareholders into for we him been his staunch company as great In contributions Entegris immense a

the turn call now let me to Greg? So Greg.

all It been to the for partner been nice Good these absolute the and for you. comments. privilege morning, an gratifying and has everyone Bertrand years has with thank IT lead finance to you it organizations and

working results forward quarter team. to after million, pro basis team down forma are in X% QX, is pro on sequentially. a transition negatively and our a $XX GAAP $XXX on year-over-year up in by selected. sequentially. X% I guidance. We X% a look my fourth good impacted slightly our our gross and QX, was basis our smooth a non-GAAP forma to and were sales revenue with successor achieve million Onto above for the margin year-over-year FX XX.X%

and expect margin in both We on basis GAAP a approximately be XX% gross non-XGAAP QX. to

in operating were million spending. $XX than $XXX non-GAAP Non-GAAP and this costs. in QX, of million. $XX expenses QX of integration were of was $XXX expenses of The million and operating OpEx driven items, million other ER&D by assets, higher expected included $XX intangible amortization million higher GAAP

approximately increase expenses by non-GAAP QX from noncash benefit in the resulting non-GAAP equity to increase plans. QX to expense equity to $XX compensation million Entegris’ a GAAP driven $XXX QXis million to We expect expenses operating $XXX from in approximately operating $XXX million and OpEx $XXX sequential be The to be alignment and CMC’s million million. of

normalized OpEx expect million high $XX We to QX watermark year $XX to QX more levels. and as be for in quarterly be to compensation the to the expect returns sequentially down noncash equity million OpEx

was revenue. EBITDA Adjusted GAAP $XXX million revenue. XX% $XXX million XX% of Non-GAAP million. of or $XXX was income operating income or operating was QX

EPS low XX% was rate GAAP was Looking non- and below $X.XX was QX. QX GAAP per items. share. the diluted favorable GAAP Non-GAAP the in share. several discrete per reflected The EPS approximately tax $X.XX line, rate

by performance division. Turning our to

ease forma basis primarily am year-over-year analysis, higher liquid margin year SCEM was Growth operating MC for of was sequentially. and execution, strong pro sequentially, in comparisons year-on- in volumes up year referencing for record are margin investment. approximately sales quarter, million for the part The Adjusted slightly offset driven XX% from a a X% and divisions. the MC of were $XXX and QX For year-on- were XX% up last APS year I on up by by for gas and and increase purification filtration. was solid and ER&D higher the here up

sequentially. were up was Year-on- result additional $XXX the charges QX mix. primarily last of sales sales was solutions. and AMH was up was year by and X% declined year-over-year sales X% and not recurring operating investment growth ER&D from mix. was in by $XXX market and margin QX operating in for was was year-over-year The ER&D, for driven decline both margin X% certain modest the up year-on-year the across restrictions SCEM of most AMH were The down quarter, increase decline the China. product the semi unfavorable margin QX product impact favorable greater down of Adjusted lower in by wafer sequential and The year X% and Adjusted sequentially. sales year-on- primarily sequentially. sequentially. softening significantly inventory margin investment. The million XX%, fluid and driven X% million strongest volumes versus in liquids packaging down and lines down the handling in margin SCEM year seen for driven and for export and for was

margin Adjusted XX% the unfavorable was operating mix. market. product for The the in forward. million lower $XXX by SCEM operating APS driven execution APS and semi APS and year-over-year impact going approximately We was The margins sales QX of quarter sequentially. was down and decline primarily margin volumes better XX% the softening XX% for sequentially. and of sales were down improved year-on-year for by down driven for also expect decline

$XXX million flow flow Moving the on from basis cash million $XXX the fourth was for and CapEx quarter million on full to an was year quarter for basis. sheet, year. reported as on the $XXX cash the and as full reported operations and $XX an was for million balance

in We spend CapEx expect Colorado XXXX, approximately which portion Springs. million our Taiwan to for of total in a new facility $XXX be will and in significant

CapEx term XX% to decline XXXX. We a starting also sales expect will to longer in of of rate approximately continue run

said, and Bertrand As focused we improving turns. cash especially on flow our highly inventory are

by approximately $XXX We cash in end year. free turns expect three over to this million inventory up improvement With this we turns of turns, year. to improve expect to in this the

of leverage capital gross was forma $X.X ratio year, and to equates our the net billion. cost end This our was of debt A gross synergies. net $X.X X.Xx structure. our X.Xx pro a announced for bit of the At leverage ratio on billion and the debt

The going approximately reminder, be put rate into a rate in hedge XX% of approximately variable interest the account on we X.X%. to outstanding. the forward, blended our taking total is debt debt is portfolio As debt after expected place,

As the we by Bertrand gross with leverage focused said, X.Xx XXXX presented end that steadily we On on lower toward deleveraging. Analyst our consistent are of Day. expect to what target we very of our note, our at leverage

be solid. position Our liquidity continues to

facility. As end billion our on liquidity, undrawn over of of million $X.X $XXX and including of the hand cash total revolving over the one million $XXX in had year, credit we

reiterate guidance, QX model that flexible. our like discuss I is very would I Before our to business

our closely prepared be trends watching business are structure will as needed. adjust We to our and cost

to $XXX Now, we million QX for to $XXX our expect outlook, sales million. from range

EBITDA expect approximately to to We XX%. margin XX% be the

and $XX $X.XX additional We to on expect notes per EPS share. be guidance. few per share GAAP and XXXX $X.XX QX $X.XX EPS our be to to A to non-GAAP

be year. expense, Entegris guidance $X.XX before, the million approximately And As I referenced from non-GAAP EPS compensation the plans. the QX again, noncash the $XX resulting to of for a watermark equity of OpEx alignment expected benefit high includes QX CMC total is or and

We expense approximately QX. interest expect of $XX in million

quarterly We XXXX. XX% basis has approximately higher and the On expect be non-GAAP full Amortization tax $XX million $X.XX approximately million QX, $XX of be to for the be on a a a million in sequential per our year expected and on basis rate EPS. rate QX. XX% to GAAP over tax to expected quarter, is share on is impact in non-GAAP million to depreciation increasing $XX per $XX basis, to

focus team's track a industry In team to an closing, we are our given milestones. we challenging with execution CMC, on doing integration are key relentless especially customers, on our environment. fast paced a deliver of on well and driving pleased is job excellent our our The and

crucial structure transitions industry are making our growth will supporting model. a node term driven long-term And Operator, now up XXXX long for have strong to preparing and dynamically are our while highly on cost We growth. business and of we in open secular investments focused customers questions. our the our unit conviction we that differentiated, in our the managing for

[Operator Instructions]

line first Hari Goldman from hear We'll the at Toshiya of Sachs.

you Thank I congrats questions. had morning. taking two amazing the Good an question. Greg for run. on And to big

the year. a one you little dynamics, bit about thinking First the could I Bertrand. how overall was you're for about industry hoping talk

CapEx drivers well quite called QX model both industry. more the potential business, give side recovery of bottoms the bit speak of second a into as for the guess start importantly, focused to we color your your as we in that as business as you some of of you prepared sort but in Thanks. you're the did be on half. as You remarks, should your thinking bottom business? I well, the on side wafer and the the your Can QX

the Yes. Good morning, question. you for Toshiya. Thank

MSI the based it's industry QX my to in XX%. to customers, current remark, behind bit forecast approximately today, XX% bottom. down us said points a with driven. discussions that visibility index remember down we on as assuming at for difficult XX is business of be that our with number to but about The direct I And And of we blended are limited, expect As likely is this XXXX prepared point. unit

second half that expect CapEx, current the remember the maybe for of the we're revenue. approximately OEM we first currently contraction year year. a total expect about the close business CapEx half XX% the on and be shape part the that first XXXX through expect in than represents for our you our their backlog probably only the we For customers But that XX% we of quick thinking as lower comment the working And then and to will the transitions us. of help node year finally, can how understand the in

target LAN a that top half year are number logic have. in achieve and our node outperformance of the to you transitions the factors year schedule, transitions right key know, important in particular. with points five expected transitions on second line these customers be now, of appear ability of And to mostly outperformance. very in As node to in particular, our as that this And we

of So down of this full better a all half and year approximately the year us be the than for year. of first we back net the expect expect little the is be we the to of half X% bit the to

color. that. for one Thank great for And Greg. you That's then

you thoughts de-lever ‘XX. QED what of you sheet? PIM that are helpful provide on you the look planned get of X.X guys coming as guys down Thank the anything You not How and gross have DRA balance leverage bridge. X.X? to closing from but X.X X.X can a to you. kind It end deal there, think obviously disappointment, and was by said you The your if again, else really be you talked I from about would a

We Hi, going Yes, look Yes sales. a continues mean, target. to do asset be not Toshiya. I'm provide continue that bridge. I to at to specific various our

look structure. We at continue to cost the

expect we'll we back prior so what bring We on is the always come as a seen expect continue, we perspective strong it's that cash the synergies, been. not years, the down, company in while we as that performance forward, XXXX we've move benefit be we'll have move to will year through we the generator from working capital some

quite we’ve of continue regard close, the the we're regard and And to mean obviously, review with with QED the been to portfolio. asset rest confident will our options sales, we'll I to transaction that

Our next at question de will come Brun from Kieran Mizuho.

Good morning, and congratulations again, Greg.

kind specifically I you following year. seems we that half Contamination were can parse resilient spot a control, than on think remains if it I think and was expecting half we maybe but of I little pretty or first those margin. MC about help bright about maybe questions, out kind the the think, the SCEM, like should and SCEM second weaker just move us be of, on how think to when up as guess, through bit But still we Micro

just So if the trending, be would and about thinking helpful. you're that that can help you improving us year how throughout bridge

Yes.

So right. we've some this SCEM, is to division most also decline. and exposure in that division One China. seen Remember the sequential most significant the two things, think the is with is the exposure certainly, advanced nodes to if you about this memory, with

for quarters. impact So this there last couple negative of was a business double on the

the of So growth and we new number year the help think products business. of things a in to node the to linked will some for potential the I both back in expect transitions terms of margin and in half stabilize, terms of of

and of opportunities of the the would the line MC, basis, the the that level new a expectation, similar XXXX six On on about a have expect of performed division right. year. we as year in in half some points. you're in nodes result actually outpacing we If the outperformance pretty our back you a actually performed of And and think well, by in very XXXX, industry with about SCEM full for much

we our comes very seeing have optimization, we to also incredible think franchise to We know resilient I translates faster it to purity processes, term translates that into manufacturing translates device important customers. yield And advanced Purity increasingly are when reliability. business. yield a and to the in to is long time purification.

we do We the going XXXX. So XXXX. for probably this to in division Entegris be think that to believe that performing resilient very is prove be this business best will in

like curious, kind in on half maybe dedicated seen already into then based has maybe, thoughts And and are I mentioned just quick Great. follow giving are traction you. It there revenue those and for any up, that you've forward. place. what think seems of those potential synergy going achieved back a synergies preliminary of year side, team I'm this visibility optimism XXXX? things having synergies the more revenue just in team and you into the really that the the towards some that of on you Thank there's

expect XXXX. all we selling, telling polishing the Yes. around then, from them. with about been actively That the XXXX. late started development also Obviously, customers, for the been opportunities. cleaning something to is very products aggressively I way focused This in at engaged probably hard them value the marketplace team well. development have post XXXX, any The to to create short And CMC end-to-end solution to in complementary film trying cross-selling early new that a course, will of work efforts optimize not the capabilities. can hit solution our we've on would those of we the out XXXX, big area that solutions, of sets coming pursue until very as term remain is This focus are teams in XXXX CMC module.

a And they accelerate to for to us. more the environment that fair our see it's us eager offering. are to these They a value And lot of engage frankly, downturn engagements. opportunities provides of with fully say

very the those during But was revenue So we be as good Analyst we synergies, it Day. on time in those can focused to unlock XXXX. said

Our next Bank. from Sidney will question at come Ho Deutsche

my with It taking questions. Thanks on very working nice your for retirement. was you. Greg, congrats

revenue memory between have bit. follow quarter segments you about outlook, different different down market a about I on to us you that year, to both MSI remind versus follow-up an up just expecting those little I'm talk on talk exposure And question the can double about is Are to foundry? you second two a logic see you question maybe in the hoping question. earlier Can your but and or my XX%. to they trends this click have the trying cadence then bottom segments. and So

to revenues our comes our of our fab about it revenues, represent When total Yes. XX% revenue. fab

We have about logic memory. and a XX:XX between ratio

when this bottom we going of said, yet, fact. think, quite as When the So I in will industry. a question right not versus to Sidney, in memory the there's is I it now answer to exactly see visibility that I'm logic, lack comes the

customers. that we our are I engaged think with

pulse new We very are their the on for focused, mostly comment the an we're on But going to I'm ramps -- on industry. precisely the of frankly, not eye question. nodes, keeping and the early

guys XX.X% question maybe up guiding QX in Okay, the margin printed gross up QX. a you follow on side, little bit a

trying Going volume forward incremental just products. your inclusion to about? kind and what XX% you. path be used leverage Thank not of you out the be. given Maybe margin coming back is realistic, to should the go I'm we from figure CMP growth of to XX%, that that's the range to biggest and thinking the

Yes.

So I'll Sidney. take that,

to relates it gross as So margin.

eight in When pro headwinds a for that the also then most between of been about said mean point and you be obviously we including KSP our right that margins. the think quarters particularly a the middle year. margin increase were the attempted talk I bringing things, get short at lower you back range our sort number look When large think I is of business of online the have that be of facility business, PIM mean continue commented we'll continues fastest margins, profitable and be, I were basis, very our are then growing If to out meaning higher. there to slightly in we business as the that MC additional the are And XX-ish over the point I relatively highest, the also, business. when to happens outlook think assets, we there thought our to XX% which this in about tailwinds, low It to it's you volumes. about forma generically last of. QX, really gross we XX%, business and CMC headwinds tailwinds be volumes dispose we going which gross portfolio you would some

So mean drive mix, is say it’s would longer and I I that adjustments potential volumes, the margin would it’s higher term. to portfolio the improving higher

Roberts We at will from here next Credit Suisse. John

Thanks, any the your weakness Greg, that volume help. pricing for And in have? of additional all could you severe you seeing pressure comment, are you light

if I – that, can Greg, take want you

Yes, go ahead.

appropriate strategy. say as And we as years. Yes, pricing as going carefully necessary, not would input we of our to will as watching will past but detailed of evolution prices and just you that take we're of costs the we in descriptions have to needed expect, couple continue continue to of very lot our into go we're the raise a steps to

would characterize pool how Okay. potential financial the ask, of potential Could strategic outside buyers you and was versus how deep buyers I the of PIM for [inaudible]? a

Concerned we to the what would Yes, just the certainty deal. again terminate say the is I transaction. decided of about

this of our assessing regrouping, are at the process we So in point, options.

on this quarter that a a when appropriate. we This are back, the for that the months update to today, is we rest and you go business. probably noncore far we as platform believe product Entegris. That's not said will As to best of continue few we owner we is as this

Seaport Partners. Harrison Research Mike with

how sounds expecting export you wondering about a million about and you can restriction expectations, that little of going the perspective, talk from other I or Is if forward. impact. morning. can going that be segments? saw it It segment impact you're see good the on Hi, a is impacted during seems quarter lower it end the And you be like for I and like it the just restrictions it SCEM forward. detail of was the for a guess the the biggest there going year? case, kind how QX, number $XX bit more was give to or declining maybe some to Is your toward those China the full year,

Yes.

preventing last impact, seeing me being was your the Every on I as But a by an negative China, start restrictions are many customers. those affected most part us or new from these because with had question. those let and the new opportunities So SCEM leading said applications impact did of at maybe in see the the division simply and restrictions, we the division earlier, the serving restrictions. uncovered edge obviously

So to your back part first question. the of

I'm during And how the not said, to million into quarter. that on $XX we assessment, about extensive diligence many industry, quarter. guidelines. in the We on speculate $XX other the negative it's engage part provided. assess million going evolve quantify that's but quarter the We reflected about would performed assume, for domestic better Chinese of As the modeling companies our as year, guidance customers. that, per annual committed operate to these customers can the more with to permanent very fourth of spend impact, within impact the a new per I call to closely is, we very be overall completed based due to and whether the already on Chinese the permissible we now which purpose, going

advanced All a a thank impact. talking And planarization about then or still Understood. nodes on couple right, little mix in a we last in seems applications, you. you're advanced seeing negative you're growth talking advanced it more of including this you're about like segments, yet solutions, good discussed bit that call, your the but

your why getting mix applications understand to strong? are still if value want just worse I is So highest

want you do to that? Greg, take that? take Do me want to you

ahead, go Yes, why Bertrand. don't you

at that volumes, to sure to the reduced I if seeing look not higher those than are the that margin you that. products, all due pressure to I but margins the some Well, on with want I'm do go on beyond leverage been I reason has of margins new think really we've lack gross typically think technologies,

Okay, it don't now? mix, even sounds right mix on to like is comment or you depressed just really want

lot some be, at I right mix our not No, the sector products, a we are I in they saying has of Yes, have sector. weakness on to sector the of of the it. most sectors, mean our tend I our activity higher products. advanced I advanced comment in is guess The in think the in that margins Bertrand the said, has been look some mean, memory depressed you more but weaker. as nodes, sector now. margin memory I'll higher if than I'm in memory impacted other memory

we've some And products. right weakness in it's product of secular the could sort not a division by of disclose it's -- just margin by so it's line our division don't higher I we not nature but And will margins happening that's thing, of seen what's broadly or But in the speaking, go I now. market say but division.

I When we've new as much at of had can't in our got as current. I we're and mean, ever swim against we our terms the confidence in we've the position marketplace going. where look products, But

expect transitions you that the And second in node going would fair? on Is better some half. to advanced with of the the mix improve and performance

that's think I fair.

Needham from come Our question Charles Shi will and Company. today at next

some first bit as mean, I at And a ‘XX top, historical different part XXXX, be SCEM same MC the top potentially first and a Thank to MSI. ‘XX, going be of a think later. be downturn SCEM mean say looking the XXXX, your guys if of mean, year for question, will year Hi, the to lot my repeat? quarters, in that XXXX. my full you of slightly you us second to quarter Can for kind business mentioned But you in I the good let's sense by morning. kind give And QX Thank you. performance, I at Could of a trend quarter little segment? same a bottom sense AMH taking the how one. into pattern kind terms Bertrand top than I the segment question. segment to look that I detail. timing of first could you into Maybe Will the ‘XX? that's questions. different obviously seems give strategic more first us

It's in we driven in sequential expect, by logic, the a look about as you of as further QX OEM of the starts decline both it's in and points. a deterioration advanced business. guidance, on wafer the if decline midpoint further guidance, our memory five well So at

positive steady we construction projects, steady, fab same the expect new have true expect to QX. continue be relatively and would steady in about remain QX, as the we QX, side, which for mainstream On we to and been think fab to in be

is you give the breakdown not four if because, be divisions said, say specific the part going I'm very So not most think will about clear different of the bottom I right question simply would the time? you to at about now. visibility as I likely. a other

times. bit businesses to general longer lead in little short SCEM but AMH being traditionally with have a think exposure But businesses that MC think with and and APS terms more very and about have times, terms, also really lead about CapEx

of So won't that and precision would quite which a SCEM I APS exactly don't yet. because I but you have than think I earlier expect AMH, to little degree give MC that bit bottom and we quarter

Bertrand. you, Thank

ask my to further here's about want I have question. but question. divestiture I second plans, further know if my CMC potential you your maybe a bit So don't you after acquisition. more

of seem some CMC doesn't model. fit with part portfolio to your think I the strategic

mean, gas say reshoring, like want sticky I there? but for I I like some the growth more I'm provide would of provide there. share a Thank gains mean to you potential fab Or the reshoring product see some thinking localization revenue be less for doesn't of comments I chemical possible also Is you. in semiconductor Can area? tactical some that us product in more, divestiture manufacturing you the categories inherited opportunities you or from may those in categories. seem fit. the CMC you business industrial there that to sticky

not now we lot portfolio? right go those back during materials recent of which for specifics I of Analyst XXXX, the this we'll question will lot in time what a We the said on the Day ourselves have the with to that reached the CMC are a is spend owners we of act more decisions. we Yes, parts and of left right to at question into various go we're point. finding timing asking But the very conclusions us

right. I we'll view updated the term as is think Entegris. of believe you time when of belongs said, keep we portfolio in we I the long And have a clear

from Next, the Aleksey Markets. Yefremov Capital of we'll hear KeyBanc with line

looking comments your everyone. largely morning, XXXX? node to on XXXX this Things also Bertrand, on are Thanks to out and about or being related good transitions is track. also track,

My comment was really on XXXX.

comment would to any visibility less more or have transitions? beyond care you mean you if I that into node

think those the when always their change transitions node node I transitions that of customers timing fluctuate, do and we plan. control not those

traditions. later would logic that be a just XXXX. XXXX. I their happy indeed transition be that outcome. too stick provide be to color me to for node would on to I'd very great It's question expect if XXXX node And I happy So try then and we'll that our early comment right in some to to on just to customers prudent me say on and with would for NAND and XXXX, think start, answer comment in XXXX your what it now be don't

you likely industry. is you. quarter Thank to that EBITDA is terms your the not that's in and mentioned, this or necessarily sales quarter likely second Understood. weaker on case. And also term the Does the short of XQ bottom than imply for first

but We will some But results. a expect directionally, in of provide our months. would level more some we few guidance will report sequential say we first we quarter that that details I provide decline, QX around when

comes question from at Arcuri next UBS. Our Timothy

Greg, balance a there's thanks held sheet. Hi, on lot. assets the being

the was balance million, price QED PIM of $XXX think million. I think held was the business being the million $XXX $XXX I The sale and on sheet. it's

still quarter. I for $XX So, to PIM? at I million assume that clarify, running March does include was it per the does, guidance think and

the sheet, transaction the the includes because the is guidance $XXX the to yearend, with That the QED seeing; balance of QED. which yearend. is not the to the of the there going you're executed million date business. That that of not The portfolio year PIM full $XXX prior At had is we business is for entirety million be exception sold. is Yes. expectation

That's PIM.

got Okay, it.

and your amount for a the a ask that into is this around Bertrand, Okay. have of then, of I the just you, your your question you customers inventory question more stuff. And lot, visibility of but sort

we've product site a of inventory just service and sort during past just cycles but building mother year, come at different You get. stockpiling where the the through these have what people could they half, they on all year customers, of people get and couldn't were all

much site, your have visibility Thanks. do So your materials in would sort normal you characterize customer you how how terms versus and it of inventory inventory? of at of

at we we that level question. say or belief push point, of to in is no have believe some perfect a cancellations amount seen Look, not And of that have any out. it's have this a for visibility. I reason not the Yes, unusual visibility. good channel. It's reason is would inventory that products of significant we there Entegris the order

So that's as there's something very to that believe very, now, a inventory ballooning obviously of no But watching we reason right we situation. carefully. are have

Capital at Group. Schwab Christian Craig-Hallum

Hey, thanks great for Greg. question. taking been working the It's you. with Congratulations,

mix? the exposure domestic that China On you between clarify ,can and multinational

Yes.

China financial are So that prior I in have our domestic we seeing comes numbers. When international. to rerun XX% the restrictions. think in to XX% you not it's export the reports about about the it that revenue and

can just at reason that or suggesting get in our done a they selling into manufacturers? China of there for alternative advanced you're Okay. purely they're reason all and are chain. domestic the from is I Is it lot Chinese is to help a that carriers, the to that manufacturing equipment. domestic it of The products US revenue your checks move ask somebody if part the Is supply buying can't they different Vendors, that

of to So suppliers. completed most a available really current forward. for the as do would we comes they validate believe $XX which would customers competitive new assessment, is And negative context minority to to going of serve able this in from And There older that in us, still China, million and materials do the are what by limited. again, when manufactured are be there had And few no I to we to that we part. China. so generation be our to we restrictions. impact are about said, part the per we really the a that alternatives I are it exercise was the And products, alternatives the think But Chinese for year.

$XX million before. So

that conviction still material a years, that to Okay, million term revenue, in I Then see have $X year, you confidence downturn. great. accurate? know anticipate when about been drivers trillion a which about is last earlier would last be when trillion, but have to business worth $XXX talked I in we do going my is $X a big if and guess obviously growth for and the you we number entire you question. the directionally did has -- improvement long of this talked probably

ask quite of we're rebound the been Look, then for that think contract I to for be. mean, to trying industry think going I exactly still you'll in I remember who this enough, know Once can can be all out we have that, will this Today, bottom quickly industry reaching you question, or you $X think it's I when fair the figure revenue we very long are if quickly. and next to even are look which currently putting But We the will at don't be visibility. have today. previous risk the don't of not speculate that yet rate possibility industry you semiconductor of that the at XXXX. in exceeding to recovery. that But cycles, just going enough trillion I'm experiencing in conditions

interact to to the industry would that's for this to with systems going And demonstrated mean, one lead. number part time it another. of a transportation We can in going our of result from forward, new of relate which accelerate of an lives healthcare, I way. emergence time and I drivers changing expect semiconductors, way we has every is and a as that exponential again what the be frankly,

much deal are this So timing putting to what is going that we in secular conviction growth the downturn absolutely a potential how and growth of the but now our intact. of my recovery, today with seeing none the a potential The have be we're potential or only industry business. industry question this is of question secular secular of remains of growth of seeing we the right to

of Chris line from the at final Loop Capital Kapsch Markets. today gentlemen, comes our and ladies And question

morning. Yes. Thank you. Good

So was relative with respect market. your to one about the prospective the to question comments outperformance

I think you said XXX bps.

transitions second outperformance your higher it market XXXX node is to year, indexing expanding? given so the think of those of see to you those presumable given you're ‘XX, the was if, exiting than curious about average, in anticipate kind an that Just the and and relative node that you that over into half to Given nodes. fair this transitions

we compared a little should half the outperformance answer Chris, is back year yes. the of expect to as your So, question bit first in The if the is, of the more half year?

Okay. that portfolio, important customer in late the DOJ process patent so involved the challenges I thought was other re-qualifying back it won of CMC the I given to an infringement litigation, records. transition, company question and XXXX, to what of And so related the pretty then had the a and healthy period gave

in can now any the that advanced you're slurries from if on that oxide could curious around buttress any other seeing world. you Thank curious comment similar so jurisdictions your you. is something in litigation And that, your if benefit and demand

from we the with Chris. ruling. with what away I that So, ITC share very I can litigation. comment, pleased is as can't what can that is ongoing really, were to transition on we've say the been you very, very infringing Good And help working question, with products. any obviously, closely also But you understand, them but I customers

won't seeing are we it’s for I go way into this was. out quantifying coming work. it's but But were positive today playing it and positive you this the from We revenues hoping

further this turn no Mr. back At to Seymour. time, I'll questions. we you. it you, have Thank

have for a with call questions. me day. you today. additional the if Please very you Thank good follow much Have joining up any

we teleconference. today's your thank And conclude does all for you participation. This

lines. enjoy day. the You of you rest hope we And now your disconnect your that may