Entegris, Inc. (ENTG) Q1 2023 Earnings Call Transcript

For the period ending April 1, 2023

May 11, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Entegris First Quarter 2023 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions].

I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations. Sir?

Bill Seymour

Good morning, everyone. Earlier today, we announced the financial results for our first quarter of 2023. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information on the disclaimer slide in the presentation.

On this call, we will also refer to non-GAAP financial measures as defined by the SEC and Regulation G. You can find a reconciliation table in today's news release as well as on our IR page of our website at entegris.com.

On the call today are Bertrand Loy, our CEO, who is joining us from Taiwan; and Greg Graves, our CFO.

With that, I'll hand the call over to Bertrand.

Bertrand Loy

Thank you, Bill. Good morning to all. I would start by saying that I am very pleased with our performance in the first quarter, especially in light of the dynamic semi market backdrop.

During the quarter, we delivered strong results above our guidance on all fronts. Sales were $922 million, EBITDA margins were 27% and non-GAAP EPS was $0.65.

Let me make a few additional comments on our financial performance. While sales were down sequentially for us in the quarter, we believe we significantly outperformed the market. This outperformance was driven in large part by our strong position at the leading edge technology node and also from the impact of easing supply chain constraints, particularly for AMH and MC divisions. In terms of profitability, gross margins were up sequentially and EBITDA margins were essentially flat.

Next, I would like to highlight a few very important items that the team is focused on. First, on the CMC integration, the integration is proceeding very well. We are on track to complete the migration to a common ERP platform by the end of the third quarter, which also puts us on track to achieve the $75 million run rate cost synergy target by the fourth quarter as originally planned.