Q2 2013 Earnings Call Transcript

Transcript Call Date 01/23/2013

Operator: Good day, ladies and gentlemen, and welcome to the Second Quarter 2013 Molex Earnings Conference Call. My name is Juscinia and I'll be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today, Mr. Steve Martens, Vice President, Investor Relations for Molex. Please proceed, Sir.

Steve Martens - VP, IR: Thank you, Juscinia. Good morning, everyone, and welcome to our December 2012 conference call. I'm here this morning with Martin Slark, our CEO, who will provide an overview of the quarter results and comments by market; and Dave Johnson, our CFO, who will cover financial results and guidance for the March quarter. Please visit our website, for a copy of presentation materials and to access a replay of this call. Now we will review our Safe Harbor statements which are on Slides 1 and 2 of the presentation materials.

During the course of this presentation, we will be providing forward-looking information and referring to non-GAAP measures. Please read carefully the forward-looking statements of our press release and Form 10-K for an understanding of the risks and uncertainties associated with forward-looking information and the reconciliation of non-GAAP measures to GAAP.

Now, I'll turn the call over to Martin Slark.

Martin P. Slark - Vice Chairman and CEO: Thank you, Steve, and good morning to everybody and let me wish everybody on the call a Happy New Year as well. Perhaps you can now turn to Page 3. Prior to giving you an overview of our results by market, I'd like to give you a quick high-level summary of the key points that resulted from this quarter.

As you now know, we reported record revenues for the quarter, and we were pleased to see such strong growth in uncertain operating environment. Our record revenues were driven primarily by new product launches. In recent years, the economic cycle has overwritten the normal seasonal pattern that we see for orders. However, this year we did see a normal seasonal slowdown in orders, particularly in the consumer and mobile sectors.

The bookings pattern, frankly, continues to be very volatile on a day-to-day basis and it’s very difficult to predict the overwriting trend in the market. We still believe that there are growth opportunities as we move into calendar year '13, and during the last quarter we completed a number of investments that we think will help our future growth. As I said in the release, we are, however, waiting until the post Chinese New Year period before we believe we can get a stronger fix on our calendar year '13 will turn out.

The investments we’ve made in the last quarter include completing our Affinity Medical acquisition which is doing very well and reported record results to this first couple of months and CapEx for our new plants in the Philippines and a new facility in Korea, clearly a high growth market.

In addition, we continue to invest in R&D, particularly in high-speed, high-power and microminiature products. During the quarter, we completed the due diligence on a couple of acquisitions that we decided not to move forward with it this time.

Read our Earnings Call Transcript disclaimer.
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