Slide 1: Second Quarter 2015 Earnings Release Conference Call
Second Quarter 2015 July 23, 2015 Earnings Release Conference Call
Slide 2: Forward-Looking Statements
design develop deliver advanced technology 2 Forward - Looking Statements This document contains forward - looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934 . The words “expect,” “estimate,” “anticipate,” “predict ” and similar expressions, and
Slide 3: Second Quarter 2015 Highlights
design develop deliver advanced technology 3 ▪ Revenue of $664 million at the high end of guidance range ▪ Non - GAAP operating margin at 4.2% - a 40 basis point quarter - over - quarter and 10 basis point year - over - year improvement ▪ Generated non - GAAP EPS of $0.42 ▪ Strong operating cash flo
Slide 4: Portfolio Trends
design develop deliver advanced technology 4 Portfolio Trends Traditional Market Revenue ▪ Q2 sales in traditional markets driven by seasonality and stronger customer demand ▪ H igher growth markets >50% of sales for the third straight quarter Higher Growth Market Revenue (Computing and Telecom) 3 -
Slide 5: Second Quarter 2015 New Business Wins
design develop deliver advanced technology 5 Second Quarter 2015 New Business Wins Q2 2015 Number of New Business Wins by Segment ▪ Q2 2015: 42 new business bookings, including 13 engineering projects ▪ E stimated annual revenue run rate between $110 - 130 million Quarterly Estimated Annual Revenue
Slide 6: Second Quarter 2015 Financial Summary
design develop deliver advanced technology 6 Second Quarter 2015 Financial Summary (In millions, except EPS) Jun 30, 2015 Mar 31, 2015 Jun 30, 2014 Net Sales $664.0 $620.9 $716.9 Net Income – GAAP $21.2 $14.2 $22.2 Net Income – non - GAAP $22.0 $17.8 $23.4 Diluted EPS – GAAP $0.40 $0.27 $0.41 Dilute
Slide 7: Trending Operating Income
design develop deliver advanced technology 7 Trending Operating Income ▪ Continued improvement in operating income percentage ▪ Results from portfolio diversification and operational excellence initiatives
Slide 8: Second Quarter Industry Sector Update
design develop deliver advanced technology 8 Second Quarter Industry Sector Update Revenue by Industry Sector Sector (in millions) Jun 30 , 2015 Mar 31, 2015 Jun 30 , 2014 Q2 YoY Industrial Controls 30% $201 32% $199 29% $211 (5)% Telecommunications 27% $177 27% $166 29% $205 (14%) Computing 20% $13
Slide 9: Financial Statement Highlights
design develop deliver advanced technology 9 Financial Statement Highlights Balance Sheet and Cash Flows (In millions) Jun 30, 2015 Mar 31, 2015 Jun 30, 2014 Cash $409.3* $383.6 $401.9 Cash Flows from Operating Activities $52.0 ($10.9) $25.0 Capital Expenditures $8.2 $16.8 $15.7 Depreciation & Amort
Slide 10: Working Capital Update
design develop deliver advanced technology 10 Working Capital Update Jun 30 , 2015 Mar 31 , 2015 Accounts Receivable Days 68 71 Accounts Payable Days 42 39 Inventory Days 66 68 Cash Conversion Cycle Days 91 99 ▪ Accounts Receivable and Accounts Payable each improved by three days; inventory improved
Slide 11: Third Quarter 2015 Guidance
design develop deliver advanced technology 11 Third Quarter 2015 Guidance Guidance Net Sales (in millions) $635 – $665 Operating Margin – non - GAAP 3.8% – 4.2% Effective Tax Rate 21% - 22 % Diluted EPS – non - GAAP $0.38 – $0.42 ▪ Outlook is for the third quarter ending September 30, 2015.
Slide 12: Benchmark Market Overview
design develop deliver advanced technology 12 Benchmark Market Overview Higher Growth Markets Jun 30 , 2015 Q3 - 15 Outlook (%) 2015 Outlook Industrial Controls 30% $201 Up Mid - Single Digits Growth Medical 14% $90 Up Mid - Single Digits Growth Test & Instrumentation 9% $59 Up Mid - Single Digits S
Slide 13: Summary Second Quarter 2015
design develop deliver advanced technology 13 ▪ Near Term Cash Priorities: o Share repurchases ($69 million remaining in current program) o Capital expenditures $40 - 50 million in 2015 o Strategic growth investments ▪ Key Strategic Initiatives: o Portfolio Diversification o Lean and Operational Exc
Slide 14: Appendix
design develop deliver advanced technology 14 Appendix
Slide 15: Reconciliation of GAAP to non-GAAP Financial Results
design develop deliver advanced technology 15 Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED)