Rogers (ROG) 19 Feb 212020 Q4 Earnings call transcript

Good day. My name is Erica and I will be your conference operator today. At this time, we would like to welcome everyone to the Rogers Corporation Q4 Year End 2020. [Operator Instructions] I will now like to turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. your begin may you conference. Sir,

be Good Thank today. along the slides with and Investors Please can to the news was to everyone Corporation you, for of fourth issued website call The turn Erica. Rogers call. quarter welcome conference Slide the that afternoon, XXXX our on found release today’s section earnings X.

forward-looking are of statements I like Reform XXXX in Private call that statements within Litigation to this forward-looking accounting are meaning that those comparable prepared Also, those Reconciliation conference measures from in during this Before financial not note GAAP would certain Act historical we any is uncertainties accepted considered may the exist non-GAAP most These and not subject market the that our were materially generally can Investors Such to discussions call, begin, Securities should principles. in call section with be slide as the strictly economic website. posted for conference the the cause be include which include Rogers’ financial on of to demands environment. the and could of accordance measures many today’s competitive measures factors. statement. financial results in factors that operations differ deck to the and conditions, in actual uncertainties directly found of

Senior and turn Bruce. Daigle, Hoechner, CEO; now Mike and over Bob to is President Ludwig, I President Slide President to Bruce me Vice and with call Turning CFO; today X, and the Senior will Vice CTO.

thank you Good for and joining Thanks, Steve. today. afternoon, everyone us

all our there facility which are evaluating operations at line, employees disrupted are we options. injuries. South Roger's recovery and produces most represents were sales the than UTIS no UTIS product and announced less X% annual Korea recently fire various As safe our eSorba® of of importantly our

South in year. Our expectation is quarter in the we production this resume fourth that Korea current will of

Rogers highlights. and advanced top of was strong and achieving results continued end markets cover and execution. in ended QX for our momentum the operational margin strong to in sales, the XXXX now the The slide X, exceeded I'll growth gross mobility performance XXXX accelerating guidance. Turning quarter with that improvements by driven earnings

disruptions that protect $XXX of improved Earnings or significant employees rely began build the focusing and quarter per advanced flexibility. of dedication reached challenging gross to essential health It's net $X.XX This the extraordinary on Rogers and our and proud more sales of to and and share. any from tensions employees. suppliers continuity. million XX.X%. adjusted global XXXX. quickly business the business margin share where for and COVID-XX extremely industries resilient were both on We footprint increased and our For possible was also responded. as capabilities to qualifications and materials. per and maintaining continued stronger to leveraged simultaneously of to recognize pandemic avoid $X.XX Despite headwinds sustainable trade response Rogers our important responsiveness the in how The to environment possible we their was customers thanks the I'm our well while as mobilizing Coronavirus the our outset team customer multi-site our business to At customers earnings manufacturing dynamic to

other our to in to XXXX. important we ways addition strengthened company pandemic several In highly the effective in response the

growth made power year. for XX% base markets. design new expanding leading of customer solutions. our XXXX both EV/HEV First, our advanced In semiconductor to drive positions we diversified saw advanced pad engagement activity the mobility and to in traction and additional and In in other added help that wins EV/ATV we we progress our the customer These ADAS and wins. our substrate wins by position with market good sales for led market continued to build battery on stronger design strong

advanced customers. from Our generation for continued next acceptance radar positive auto receive to solution

second of strengthened market. also our half of In the design Sales than design and the outlook portable catalyst market and markets. full a year XXXX introductions defense wins increased in growth by this XG product for diversified wins electronics in the our our for in driven positive us In growth some XXXX. long-term our the smartphones in other greater sales positions growth XX% were strong outperform enabled market. in to We to new advanced added feature

gross operational gross by costs XXXX margin in material initiatives. productivity sequentially XXXX. Rogers QX, XXXX. stronger margins consecutive to are quarters than a XXX into are quarter in forward sustainable last built carrying these our points improvement of basis Fourth XX improvements Substantial excellence improved delivering which we and and Second, Most on importantly versus resulted more basis by yields, three year. points improvements

XXXX position Third, cash our management of cash our and $XXX year million. and our strengthened increased past this margin position judicious we expenses focus capital. a on to in improvement financial with We net generated we free and more over than working

strong on Our sheet tremendous flexibility strategies. gives as balance execute growth we us our

sequential both market where was In Turning catalyst for sales industrial revenue. to primary EV/HEV continue signs I'll EV/HEV versus growth in the trends next the largest market ramp X, slide the QX modestly auto and fourth as prior increased demand QX XXXX. the were sales to Robust OEMs were contributor encouraging and in quarter and production There the for discuss strong our quarter. replenish increase inventories. ADAS also traditional general sales the and to

infrastructure revenue stable QX. wireless Lastly, in was

strong of sales markets. traditional a the mid-teen as moderate outbreak Coronavirus markets Renewable year EV impacts the general and were strong growth electronic mass helped full the industrial, in the also For HEV on growth and The in sales these and at rate. we had increased defense revenues. and portable and transit mentioned energy higher automotive

wireless trade In sales infrastructure addition, lower resulted XXXX. tensions substantially in in

in transition in XX% EVs of advanced HEVs auto clean next Turning to and Beginning as update the to nearly in comprised provide XX outlook further portfolio. was favorable I'll impressive continue an XX% driven advanced production over the years mobility, Growth mobility several of accelerated the especially market markets global proliferation Europe which policies. acceleration over other led on an next diversified to and for government vehicles by slide increasing reached or X, transportation by models, demand million acceptance consumer growth electric of share December. and expected our vehicles. with in the strong This is in new sales XXXX plug-in

production expected many and years. established Third-party growth startups. point are next data than substantial OEMs an of commitments rate five annual continues to EV/HEV Supporting the from for this XX% the to outlook and more investments over compounded

auto next at and commitments to a mid-teens growth increasing outlook rate the to year-over-year. rebound propelled XX% certain grow XXXX production becoming For much consumer ADAS, levels limited Increasingly over in an combined is This key and expected in new growth as the the is demand years. is semiconductors. automakers. features of trend preference, average on are production and by rate issue result in of with XXXX models the vehicle automotive ADAS of by affecting outlook XX% supply for regulations vehicle stronger One is global autonomy expected five the to for standard

monitoring a meaningful don't closely situation have anticipate impact. this will We QX we are that but the

in diversified electronics market mobility XG the sales we In markets electronics, opportunities are and smartphone the and XXXX expected as strong remain portable several other renewable a mid-single-digit nearly drive energy. in such smartphone growth good also smartphone XG to sales provides growth portfolio forecast portable global double are are years to Rogers in next growth opportunity. in which with sales. the advanced for defense addition our focused in on to In

much content programs and as Our Rogers by units. can drive to in mid-range to promising expected demand XG defense The in materials. by XX% circuit certain premium technology for market at remains handsets as outlook longer missile advanced the systems XX% term and increasing such of increase radar funding as in XX% as devices is defense

differentiated strong to engineering high solutions continue puts in our for capabilities applications demanding in us Our market. a position reliability this success and

renewable X. continue. expected strong power years we CAGR XX% grow for expect to the and substrate a market demand the applications Lastly, Please the five turn is semiconductor to our to slide next over at

is on XXXX to Today and our operational accelerate strategy. Rogers four which delivering highlighted a synergistic intended highlight growth strategy driving some further market-driven our being we've As M&A pillars growth organization, I'll built innovative utilizing priorities leadership, of include excellence.

new market groups. By have accelerate PES leveraging engineering on and frequency by to deep are expertise leadership high applications we as and advanced high to units such power capabilities EV/HEV, capitalize complementary these unit, and opportunities we in a business electronics high ACS two our others. strategic creating combining business ADAS able both First, growth our combines our be will which solutions ability which and further

battery These this invest where in I ceramic our of to year between our doubling the the Second, compression and to $XX pursue momentum than described and substrate Rogers that We market add the market position we plan million earlier. additional targeted more in to capacity pad our for to and technologies. total growth to capabilities investments in opportunities EV/HEV capital intend capitalize CapEx half our we strong XXXX market to significant on technology leverage investments to strong are of will $XX this with positions. advanced million aggressively growth

our top transformation implementation will deeply will operational gross which million and ongoing be sustainability Rogers social the is and turn we continuing be will slide key for efficiency phase operational the At organic responsibility Business the X. to in margin are $XX CapEx commitment focus ERP improvements to XXXX priority improvements initiatives to enable inorganic support drive of excellence list. an our continue Third, of and also to growth. corporate, initiatives Please a initial with of and we rooted. to investing at our

to safety our being management and of through communities practices. health robust We dedicated are members environmental, responsible

positive the the society they are also contributions proud and improve environment. advanced extremely our to lives as protect We make that of materials

regulatory has and environmental efforts on sustainable and as areas years are the developed ESG such programs well-established resource that conservation, product much development over more. employee development, Rogers Our based compliance, and practices in many

We in communicate will these areas. work soon be ESG inaugural issuing doing important to are report and better highlight we the our

continued business In investing a recap challenging build aggressively the The in advanced in mobility slide dynamic and diversified we X, We other executed face and strategic more to growth today's to these XXXX, capitalize messages roadmap. from strong of environment. in to our in tremendous extremely and Turning stronger sustainable are for be in our markets I'll opportunities. operational to the portfolio on a continues positions key call. markets advanced outlook on our we and

is to thank Ludwig like announced him CFO management with press CFO partner provided for a underway. Mike trusted across I'd both The and team to Mike pleasure helping will behalf today to as release a to and Rogers facilitate to as strategic in our been It company. a has drive his retire our growth improvements Mike work contributions. of date to successor. many the retirement has help Finally, next XXXX. earlier been truly not intends process specific has on his a and transition He a identify profitability in seamless

I'll Mike? to QX Now our results over turn to Mike discuss in more detail. it

everyone. Thanks Bruce and afternoon good

XXXX been in significant operational in serve for fourth of improvements our Together As review Rogers from capacity. I many like opportunity to slides intend results to work Rogers and XXXX. dedicated I'll benefited so that the our In and quarter and retire of we've It to been as and shareholders would the Bruce by able this investments and a directors with quarter followed mentioned growth strong employees. CFO board the have for first XXXX to has privilege position drive the serve thank I future. outstanding a ahead Bruce guidance. rest to in

X.X% Bruce as revenues than Turning increased excellent to XX quarter. business Rogers higher in Revenues units fourth the slide by mentioned $XXX.X delivered of advanced sequentially applications. mobility QX all in were million results as led

we we which we operational into fully to In over basis extending of expense of The delivered by Higher is income our in in QX. higher share factories. our first XXXX. The of revenues continued points in the per increase In partially excellence journey and offset to XX.X% growth QX markets we EPS charges primarily in gross interest million compared impairment the margin margin leveraged from quarter volumes attributable and incremental decrease income GAAP our improved diluted in sequential addition, $X.XX increase QX small encouraged certain and gross QX we XX our significantly share program. restructuring industrial by of anticipate in are reduced recorded taxes and a $X.XX QX and improvements. copper these hedging per of an to improvement $X.X an as

and for XXXX. cost footprint restructuring third locations will For The Asia and provide fourth certain in the $XX our efficiencies quarter combined increased impairment optimization recorded activities optimization mainly involving accelerating footprint third through million call. Europe quarter activities discussed that we in and we

fully just adjusted the been diluted $X.XX EPS per share from increased impairment by results. principally of $X.XX QX sequentially discussed which reasons to have Our excluding our and adjusted share charges the excluded due per restructuring

the for The or revenues approximately each we primarily with business approximately and XX% wireless declining as remain increase be which by XX% quarter revenues important application foreseeable slide continues its revenues. XX, The the to business revenues sequential to remains the ADAS business. in exchange infrastructure million ACS the in X.X% of of ADAS X momentum aerospace the quarter. sequentially although increased was increase to $X.X our we $XX.X years revenues the in an XX% a quarter minus we business ACS up due QX experienced ACS segment XX% the compared XX% ADAS decline Consistent continuation by by during $XX.X infrastructure comprised recovery. million segment of and expect sequentially X% future. revenues the revenues to third aerospace increased the X% QX market quarter. improved approximately revenues $XX.X comprised a million. to partially the the to portfolio business slightly expect QX. ADAS $XXX.X defense the grew and defense to million. million offset % Turning plus third in this impacted annually. QX from flat automotive an our revenues demand of were robust compared of PES into EMS revenues past Wireless the Currency meaningful while The to revenues and part to fourth rates favorably grew

of carry the the approximately the XXXX of declined segment remain which EV/HEV defense and system to alignment for XX% to sequential by momentum continued the The timing the into driven the ceramic for expect revenues an expected requirements to portion aerospace market increased business the application in products. in The momentum technical orders of account XX% first long-term increase compared in the the substrate of defense programs. reflects applications revenues. demand advanced and This our the to particularly we of improvement compared ACS this frequency As prospects to which in and in certain XX% Revenues sequentially The bullish business to our for accounts were the XXXX. revenues PES revenues applications defense for on market this XXXX XXXX. capabilities QX. quarter grew driven due compared we X% EV/HEV of declined with higher in the by segment of close XX% XXXX compared variable to industrial drive X% QX

XX% versus year the declined this XXXX. For business

by which higher as evidenced QX The increase signs QX resulted revenues continues see gain frequency enter we starting revenues. momentum the application in our sequentially. from grew XX% As of recovery to to business. drive we in application XX% variable sequential increase in EMS are revenues This battery significantly pad annual primarily EV/HEV

the revenues and experienced increases also consumer automotive We quarter. in in nice

to of the third in revenues the XG of that XXXX which XX% quarter features. of revenues XXXX revenues slightly while quarters compared which second segment were Portable time to for momentum for of XXXX than the grew flat in the revenues. industrial accounted general account be the XX% portable handsets were quarter close lower recovery segment providing the Our a to first still electronic for offing. electronic with quarter in might in a introduction the gained robust revenues several advanced in half the but revenues due sign nearly

margin XX.X% was higher percentage to unfavorable execution more XX, improved to and commodity $XX.X product increased or The margin volume fourth freight significantly revenues. yields the primarily to in slide was higher quarter million to mix due increase manufacturing in volumes due quarter unfavorable due continued costs. costs. commodity manufacturing mix yield greater offsetting than and ACS offsetting higher our and increased less manufacturing efficiencies of and primarily rate quarter favorable increased margin declined and than mix more an the increased in product the although gross and gross and offset product performance. volume which margin and freight the increased increased the were an gross for costs. a gross commodity primarily cost, gross in Turning and yields offset margin PES the by partially improved EMS in these due improvement higher to quarter

for $XX for copper $X.X to and expenses. hedging lower and higher from or to has margin were in Adjusted in We three resulted continue million in basis our over due of we the to performance margin. sustainable be which to credits to of income annual QX tax higher QX than adjusted manufacturing slide decrease improvement Other $XX.X increased favorable than XX costs prior QX basis revenues XXXX. the compared encouraged the operating lower improvements for gross was in XX, to $XX.X of income compared changes expenses million. income was basis in for points effective for Also due quarters expenses million mitigating tax consecutive XX.X% net improvement to compared QX operating expense adjusted XXX income higher net QX. XXX and points QX source of an available offset fourth interest income. rate points on foreign for income of program to million in our XX.X% an of our and by million included the QX detail copper quarter foreign revenues $XX.X adjusted The QX Rogers's the quarter significantly gross of

discrete rate effective and was and For decrease routine XXXX The over tax XXXX, expense from the due increased foreign in in XX.X% XXXX significant to credits the rate items in effective was mentioned increase a audits the above. positive tax jurisdictions less tax tax foreign tax increase rate. the effective

$XXX.X our in XXXX We free flow rate the expect as $XX.X on reduction balance XX% the approximately $XX.X will our million an cash quarter operating in million million excess of XX, was defined year XX% XXXX tax million. in position quarter ended cash of QX $XX free $XX.X cash XXXX. once a $XX.X facility company strong outstanding at spent the generated again In $XXX and to the generated million equivalents we repaid slide our the credit of million quarter and expenditures. and in the free million with of million We another fourth of We fourth to range. cash to credit under effective strong In our capital amount than be communicated from for as credit the ended million million activities the our quarter flow, facility with $XX $XXX.X XXXX Turning facility. million cash including a low position end net million. on a and $XX of working higher million $XX $XX spent $XX generated cash on of we owed flow company capital of

$XX Bruce expenditures timing capital through $XX the insurance As any capital on expenditures does million UTIS proceeds be the reimbursed proceeds, trail million although to may This restore may expenditures. expect in the include necessary the mentioned XXXX. to range to not insurance spend we which operations of

guidance our Turning on to slide XX.

first our ADAS battery in anticipate pad traditional in substrates higher and strength the by to demand We continued of automotive marketplace EV/HEV products. continued driven the applications. markets momentum strength in We continued both quarter our ceramic for particularly expect for see markets many with

back wireless towards seen and in consistent of end timing with of benefit a the markets recovery We QX which the XG beginning in expect our a for pickup general quarter the have of we installations. revenues the past infrastructure ordering industrial will

QX see electronic portable consistent in seasonality. past We expect with to weaker revenues

less impact X% fire negatively impact QX our our the by UTIS revenues on addition, In with will similar a EPS ranges. at than in

result QX million to a revenues of $XXX As range the estimated to million. are be in $XXX

QX increased the QX earnings guide of should We and gross earnings GAAP adjusted I approximate share will range we $X.XX expect $X.XX of in we for to for $X.XX guide the to XX.X% the the call Therefore, share diluted quarter. the guide from to range QX $X.XX per in operator back and our the XX.X%. We margin revenue mix we range benefit volumes. to diluted the mix first now fully in of questions. per over fully to turn profile

with And CJS your from [Operator Moore is Securities. first Instructions] question Daniel

Good Thanks afternoon gentlemen. taking questions. for

Hi Dan.

Dan. Hi

XX% Congratulations dropped the like range gross looks the walk you and so by. mic up Mike, push way. margins and to by the

Well. Thank you.

you. Thanks Thank your help. for

Yes.

great lot excited but a It's very team about obviously to lot do gross it's margins on of been what are honestly. a We people we've able involved. a effort been been

the but loose my So in I it's mic quite haven't dropped hand.

know. Good know. to Good to

for impact is at level that a strength my inclusive that obviously first look sustainable that question of that might the is XX% gross midpoint. year So at we out as the continued of guidance margin remainder see UTIS Is any the have?

Yes.

basis the have points then add we've the each the mix. points certainly without additional and and one past Bruce on increased on again to another well to again XX% Dan can the position the that I about I shouldn't from certainly the able and of and it that we I is and talked operational recovery think again XXX think highlighted footprint improvement we as continued the focus no continue $XX we'll there volumes sustainability execution improve going as I for gross basis think million that additional same volume margin we the gross XXX on of made things I if to and of XX% and maintain that to see the highlighted with close XXX both as be why that I in assuming forward we've million you'll the incremental XXX, the and depending optimization can reason add even to mix whatnot is see margin volume call think $XX continued another think product

able what margin excited about to how gross to expand also excited can do we we're continue been but about So forward. we're going we've

challenges about and QX. you questions like was Very what It I a helpful of are for we're any are and the semiconductor lot good What beyond? Bruce sounds of we your hearing you look one had expectations QX heard shortages. this and as at alluded chip we on to

will challenge and for Yes. of Well, be is the hearing overall side certainly what a we're things. particularly seeing it the automotive in industry

one the higher in observations our to have EV/HEV priced side on interesting OEMs that house of have and focusing and our where strengths or of substrates materials models it's is over ADAS our in Now whether plays they with the are battery and we the that which EV/HEV pad. the

have and we're what's total that the premium keeping models The So cautious like effect likely made. overall the most would of ones It an to track will is on. the question which on more going number of we'd of automobiles made. and be models see

Very kind helpful has business we helpful Bob get of be pads EV/HEV update both the to if substrates of first update wins and and any and there? or sort any on part in into as business share color and do battery XXXX on across of share would wins

had products, with win. design I'll and Customers by over of support about engineering feedback are take the impressed been strength of the the year the see as continue our last we our that. we've very to by encouraged performance Bruce, in This is wins. talked our and we course

in So front. another year that in we're anticipating that continues. and that strong a No change

is in supply inventory that that offset we on some get was be that? down the is likely as all on fair revenue of you've closer the of UTIS and or or down Is based chain likely to your QX commentary percentage might really bigger a will of there and helpful. slightly it color in got impact to out to that until lastly terms Okay say QX

the No you Dan of timing Well that as mid was February. early know

it's as we're second get recovered. probably that we'll Bruce's what in inventory would the a running fire. certainly to little and in up the probably X% and and going quarter looking will quarter first as probably get bigger not say that less I that in get and well we to it's and was think had we some the indicate the QX month certainly at but have going that destroyed about to because urgently to impact half the how QX again So a and not comments a than get QX quarter that third contribute in until first Therefore hard and we're business to well

All follow-ups. congrats the execution and right. momentum Thank jump will you. on I any with back Well and

Thanks Dan.

is question next with Riley from Your Ellis Craig B. Securities.

taking question great the gross your will and and just congratulations follow-up question continue until business thanks writing margin with for sunset. Mike from for last the which you help the Bruce a Thanks that and and Yes. start performance Dan. on the to off the that in your on to I'll growth into

ramp in in doing producing South potential in it facility is an Korea South capability? its facility Rogers or has company had that only understand and up in produce help the there South produce operational options with the us to that can Korea? you another product you back that Korea restore So just that's elastomeric output product to potentially you that Do the perceive you would been to bridge

that polyurethane that So that foam one material. eSorba® produces the only is the the facility material,

customers QX, we alternatives late six-month maybe to well other looking to that's some we're we're I again what into closely so can at as we there and quickly early days looking it's time recovery say the them is available approaches, with would here see lines that doing So overall that so and probably have assessment QX working frame. if – that's if is our with but convert in see them we looking But help at any equipment can a on multiple is places at working other still

again committed very still in are Korea. our South we're we Again business to

of big Yes. Makes some sense given there. customers the

substantial sounds may I to of golden build can the you than things like months build season but decent if you made like a what week late able sounds you move it think you be get holiday So be Bruce content X XG be may in season chunk on miss tier would gain more content. the I of XQ. part what I'll might It to you seeing three catch would a early back be the what on comment heard ago.

you talked but content XX% and what's about XG this high-end think more Can a was possible for XX% systems. you I mid-teens hearing Rogers and XX% bit little about maybe I content gain to talk year? or

Sure. in come to detail Bob bit little I'm that. ask on going more a to

more impact Yes. some advanced really are higher phones sensitive yes, there the is Correct. of, that some protection. In a very components lot there value require

So XX% is these higher phones more the end full-featured opportunity for like phones. high in

it's we're So to XG think even for nice continues handsets very gain that given in momentum as the the opportunity space [indiscernible]. I expecting

to first a to help the it. which mid-year? Got haven't which that the be up for to the general turn be albeit have global you have here global as we back Bruce can depending as in some suggesting them business we've extent would we some that moving beyond period some to possible by sub-segments understanding And then put you're and what's deeper seeing quarter industrial extent just helpful hit that demand of to on that company companies as the Yes. business” growth XX. couple in in a the on we first to had year many through where see What finer then on point we increasingly of ISM got with come “industrial that's the would the Mike or synchronized quarter which six the business still their go given segments, of started possible speak

and we begin order of elastomeric continue the an focused house we'll is So and side, we continue so that positive we different QX we the the as mostly as the see particularly in see that the so EMS driver many the that strong house main on to the on long investment way believe. this side in of saw economies of we're these capital see agglomeration the as think sub-segments that recovery we areas side for but which will indications seeing

of equipment the we On the power industrial a not would front QX in saw slight and heavy more side house equipment decline that XX so we're seeing with yet that than that horsepower really and forth. horse recovery on be

yet. ordering heavy that for materialized CapEx the So hasn't quite

Thank sense go follow-up Mike back That it. a Got makes I before margin and on point gross the in then Bruce. queue. you

on XX% we've continued and like I there into suggested about provided is guess the costs. and seems question whatever XX% level it fourth volume Does we if offset the to the points on margins? ability some the to XXX so to that either have the at here XXX XX do about so business XXX demand. can we have we are concerns the got with business quarter with basis inbound another see can are visibility way basis to What in you million as into been every So to keep points continue XXs input at that you we XX% the revenue were in a agnostic. our mechanisms? great those or need to up A of that other move low color client guidance gross able hedging eye in think risks with good

Yes.

to good all will our but able we're with saw with still as increased point input increased your improvements well on sustainability the improvements increased of business, just we've able committed about and and as we're input yields would the increased made pretty I we're comfortable increased continued the think than to I I efficiencies the from have as more input yields, future with fourth which on manufacturing In rise to able we of like those as we're we we not in again but some the focus costs efficiencies is to think offset one see that not costs. think that but think be the cost efficiencies the in gross a to in the it's businesses quickly may maybe the we but that. we along about still concerned customers it pass as we're talked one quarter overcome we that margin

an and sneak I the from that a electronic company three reporting standpoint? of how with move to you'll housekeeping will should into advanced could then that instead things expect ACS results combining we focus solutions the two on first calendar segments. PES get segments if the be Lastly, we financial quarter reporting when Is treat

so process profitability and into to our margin the those gross are reporting that's combine our the that we to provide we to the have review the that's of on that but ceramic reporting is. intent but continue process intention Craig our we'll of even business and what and commentary elements Certainly but internal in changing be business. position of would to that support we that if that that Well, the do thought

that have intent are the we ceramic that still do around to particularly happen said the our and again make we but that of to well need committed So some transparency housekeeping in internal being we to business. visibility EV/HEV that business that's continued providing what's portion on happening

Great. Thank Bruce. you you Mike. Thank

Craig. Thanks Sure.

Ho Patrick Your with Stifel. is next from question

off much to see together that Mike very you've contribution Rogers. you to and want great provided few gone a well. through rides it's and I the wish We've Thank first to

potential and market starting to I hope best EV/HEV momentum of that to building know again vehicle once in starting of potential of news to from both So just question the autonomous luck in type you of ADAS the those automotive lot and perspective the a there with vehicles it is autonomous some you're materials that for lot to talk. a given of opportunities to on what given cars? the into features also and we'll sure related ADAS again the My I I'm are first content would see but go you are re-emerge continue see

ask I'm to to on Bob comment that. going

Yes.

this for about past and we've I pretty think radar basically materials Patrick in So producing it's we're the and the what talked sensors, scalable. our

had are of have to more of a So radar developed have some XX, higher let's as on autonomous today economy vehicles say XX that on to you from go been typically X, X.X sensors will that radar board. levels full you vehicle have the that sensors

scale of some out continue there sensors could to of times will number level you vehicles and pretty today. level So rise the and to custom today we're radar go is proportionally to sensors test the we because two one, three number degrees of said were our that the from autonomy four, what will higher level see to be as could I content level think five of opportunities three plus I expectation like

trend be I ADAS. a think us a So average as nice very the very still win and positive it's to [indiscernible] for autonomous that's going

recent and and in any OpEx there it's is been measure of near-term Bob into I'm shifts Korea Mike that maybe beginning helpful should question capacity but some fire That's the I and in kind factored QX missed expect the reaction to for I follow-up in this the South of the apologize into are OpEx I guess I with out, assuming and of that getting something my around? Great. call things changes products guess move situation? because our we as as should, that we

from have expenses didn't of answer The again I talked is to high we've about than that probably OpEx in have didn't We We what that. is very business. no but is have, that again think X% less that for probably say similar from to be operating aren't but on business operating perspective impact we'll modeling revenues I EPS a and impacted costs really going the a would an materially.

Great. you very much. Thank

are further closing this I'll to there in remark. no the you for And at time. over questions the call turn back queue

success that today to we safe order a and I'd Mike's Again drops he first whichever for walks thank forward to of working have him door I everyone of of to mic all Rogers everyone and like also the again the is. and to acknowledge evening. out great the like until on good joining us look the with call contributions

participating. Ladies call. and today's this conference gentlemen Thank for you concludes

disconnect. now may You