Core Viewpoint - Entegris (ENTG) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][3]. Earnings Expectations - The consensus estimate for Entegris' quarterly earnings is $0.65 per share, reflecting an 8.5% decrease year-over-year. Revenues are projected to be $766.77 million, down 5.7% from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.82% higher, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Entegris is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.25%, indicating a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Entegris was expected to post earnings of $0.69 per share but delivered $0.67, resulting in a surprise of -2.90%. Over the past four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - Entegris does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when deciding to invest in the stock ahead of its earnings release [17].

Core Insights - The global semiconductor filter market is essential for maintaining the purity and integrity of gases and liquids in semiconductor manufacturing processes, with increasing complexity driving demand for high-performance filtration solutions [2][3] - The market is currently in a growth phase, fueled by advancements in technologies such as 5G, AI, and IoT, leading to a rising demand for high-performance semiconductor devices [4] - The market is projected to grow from an estimated value of $1.98 billion in 2025 to $3.89 billion by 2034, with a compound annual growth rate (CAGR) of 7.7% [8] Market Dynamics - Key drivers include the increasing demand for high-performance semiconductors and innovations in manufacturing processes that necessitate advanced filtration solutions [9][13] - Limitations include high initial investment costs and the complexity of filtration systems, which pose challenges for maintenance and operation [13] Market Segmentation - Application-wise, semiconductor foundry manufacturing is a prominent segment within the global semiconductor filter market [9] - Product-wise, the market is estimated to be led by photo filters [10] - Regionally, North America is expected to gain traction in production due to the presence of key manufacturers [11] Competitive Landscape - The market is characterized by a concentrated competitive landscape, with key players like Entegris and Pall Corporation holding approximately 28% and 35% of the semiconductor liquid filter market, respectively [6][7] - Continuous innovation and strategic investments in research and development are crucial for maintaining competitive advantages among these companies [7]

Core Insights - The article compares Ultra Clean Holdings (UCTT) and Entegris (ENTG) to determine which stock offers better value for investors [1][3]. Valuation Metrics - UCTT has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ENTG has a Zacks Rank of 5 (Strong Sell) [3]. - UCTT's forward P/E ratio is 22.85, compared to ENTG's 28.64, suggesting UCTT is more attractively priced [5]. - UCTT has a PEG ratio of 0.65, indicating better value relative to its expected earnings growth, while ENTG's PEG ratio is 1.87 [5]. - UCTT's P/B ratio is 1.09, significantly lower than ENTG's P/B ratio of 3.38, further highlighting UCTT's relative undervaluation [6]. - Based on these metrics, UCTT holds a Value grade of B, while ENTG has a Value grade of F, making UCTT the preferred choice for value investors [6].

Core Viewpoint - The Philadelphia Semiconductor Index (SOX) increased by over 3% on June 16, indicating a positive trend in the semiconductor sector [1]. Market Performance - The SOX index reached a value of 5265.73, reflecting an increase of 153.49 points or 3.00% during trading on June 16 [1]. - The index opened at 5178.41 and recorded a high of 5265.83 and a low of 5178.35, with a trading volume of 127 million shares [1]. - The previous closing price was 5112.24, showing a significant upward movement [1]. Key Stocks Performance - Notable performers within the index included: - AMD (Advanced Micro Devices) with a price of 125.585, up by 8.11% [1]. - Coherent (COHR) at 81.895, increasing by 5.85% [1]. - Monolithic Power (MPWR) at 708.950, rising by 5.34% [1]. - Marvell Technology (MRVL) at 70.750, up by 5.30% [1]. - ON Semiconductor (ON) at 53.625, increasing by 5.11% [1]. - Arm Holdings (ARM) at 142.450, up by 5.09% [1]. - Entegris (ENTG) at 78.800, rising by 4.59% [1]. - Lam Research (LRCX) at 93.230, increasing by 4.14% [1]. - Teradyne (TER) at 86.445, up by 4.05% [1].

Financial Data and Key Metrics Changes - The company has been outperforming the semiconductor industry by about four to five percentage points over the last ten years in terms of revenue growth [7][28] - Average ASPs in the semiconductor industry are currently 50% higher than they were in 2019, while the company's pricing has remained flat over the last several years [15][16] Business Line Data and Key Metrics Changes - The company operates two major product platforms: advanced purity solutions and material solutions, both expected to grow at rates of three to six points and four to six points respectively [41][42] - Advanced purity solutions have an operating margin potential in the high twenties, while material solutions are currently in the mid-twenties, with potential to reach the mid-twenties in the future [42][43] Market Data and Key Metrics Changes - China accounts for about 20% of the company's revenue, with 80% of that coming from domestic Chinese customers [48] - The company has seen significant growth from TSMC, with its share increasing from 12% to 16% of total revenue last year [68] Company Strategy and Development Direction - The company aims to be a consolidator in the fragmented semiconductor materials space, with M&A being a significant part of its growth strategy [11][12] - The focus is on increasing content per wafer through new materials and applications, which is expected to drive future growth [18][28] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the cyclical nature of the semiconductor industry but believes the company's business model is more resilient due to its consumable product nature [10][29] - The management is optimistic about future growth opportunities driven by the complexity of semiconductor devices and the desire for miniaturization [7][28] Other Important Information - The company has a global manufacturing footprint, with 45% of its manufacturing in the U.S. and 55% in Asia, ensuring redundancy and local support for customers [45][58] - The company is actively working to mitigate the impact of tariffs by qualifying alternative Asian manufacturing sites for its Chinese customers [56][57] Q&A Session Summary Question: How is the content per wafer growing? - The growth in content per wafer is driven by new materials that are better performing and more expensive, as well as increased volumes and layers [16][18] Question: What is the forward growth formula? - The company believes the semiconductor industry's secular growth potential is twice the rate of GDP, plus an additional three to six points of outperformance [25][28] Question: What impact are tariffs having on the company? - The company has been able to offset tariff impacts through price increases and is working to qualify alternative manufacturing sites in Asia for its Chinese customers [50][56] Question: What is the state of the industry? - The management notes that the industry is difficult to predict, but they are focused on customer engagement and developing specialized solutions to be ready for when the industry turns [62][65] Question: Why is the CEO stepping down now? - The CEO believes in refreshing leadership and has confidence in his successor, who has extensive experience in the semiconductor industry and is a capable capital allocator [95][96]

Core Insights - Entegris reported revenue of $773.2 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.3% and an EPS of $0.67, slightly down from $0.68 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $788.96 million, resulting in a surprise of -2.00%, while the EPS also missed the consensus estimate of $0.69 by -2.90% [1] Financial Performance Metrics - Net Sales for Materials Solutions (MS) reached $341.40 million, exceeding the average estimate of $333.60 million [4] - Net Sales for Advanced Purity Solutions (APS) were $433.90 million, below the average estimate of $457.50 million [4] - Adjusted Segment Profit for Materials Solutions (MS) was $75.10 million, surpassing the average estimate of $68.65 million [4] - Adjusted Segment Profit for Advanced Purity Solutions (APS) was $110.40 million, falling short of the average estimate of $117.55 million [4] Stock Performance - Entegris shares have returned +32% over the past month, significantly outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company's first quarter revenue grew by 5% year on year, excluding divestitures, slightly below guidance [4] - Gross margin was at 46.1%, at the midpoint of guidance and up sequentially due to strong cost management [12][13] - Non-GAAP EPS was $0.67 per share, at the midpoint of guidance [14] Business Line Data and Key Metrics Changes - Materials Solutions sales increased by 8% year on year, driven by strong growth in CMP slurries and pads, which were up almost 20% [4][14] - Advanced Purity Solutions sales rose by 3% year on year, but saw an 11% sequential decline due to lower demand for CapEx products [5][15] Market Data and Key Metrics Changes - The company expects a temporary impact on top-line revenue related to sales to China due to new tariffs, estimating a potential loss of up to $50 million for Q2 [10][31] - Excluding China, the business remains strong, with expectations for sequential growth in consumable product lines [29][30] Company Strategy and Development Direction - The company is focused on building a comprehensive global manufacturing footprint with regionally integrated supply chains to mitigate risks [7] - Investments in new manufacturing sites, such as the Colorado facility, are aimed at enhancing production capabilities and supporting customer technology roadmaps [6][18] Management's Comments on Operating Environment and Future Outlook - The management highlighted the uncertainty in the semiconductor industry due to new tariff regimes, affecting revenue guidance for Q2 [10][20] - Despite the challenges, the company remains committed to improving free cash flow and reducing debt levels [11][19] Other Important Information - The company achieved its first CHIPS Act milestone and expects to receive $9 million in the second quarter [18] - Capital expenditures for 2025 are expected to be approximately $300 million, down from previous expectations [17] Q&A Session Summary Question: Impact of tariffs on guidance and customer behavior - Management clarified that the Q2 guidance reflects strong business performance excluding China, with a solid book-to-bill ratio approaching 1.2 [28] - The potential $50 million loss in Q2 is due to new tariffs, but alternative manufacturing sites are being qualified to mitigate this impact [31][32] Question: Changes in customer discussions regarding Moly adoption - Despite macro uncertainties, major node transitions are still on track, with expectations for Moly adoption in the second half of the year [35][36] Question: Recovery of lost sales due to tariffs - Management believes the impact is temporary and that the China business remains strong, with active discussions ongoing to transition demand to alternative sites [41][44] Question: Q1 results and customer behavior - The Q1 performance was slightly below guidance due to softer demand for CapEx products, particularly in new fab construction [46][48] Question: Gross margin impact from tariffs - Management indicated that while tariffs may have a modest impact on Q2 gross margins, they expect overall gross margins to improve in 2025 compared to 2024 [56] Question: Advanced Packaging growth outlook - Advanced packaging is a small but rapidly growing market, with expectations for over 25% growth in 2025 driven by high viscosity dispense solutions and HBM slurries [97][98]

Financial Performance - Entegris reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.69 per share, and showing a slight decrease from $0.68 per share a year ago, resulting in an earnings surprise of -2.90% [1] - The company posted revenues of $773.2 million for the quarter ended March 2025, which was 2% below the Zacks Consensus Estimate and slightly above the year-ago revenues of $771.03 million [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $814.77 million, and for the current fiscal year, it is $3.25 on revenues of $3.41 billion [7] - The trend of estimate revisions for Entegris has been unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Market Performance - Entegris shares have declined approximately 16.2% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The Electronics - Manufacturing Machinery industry, to which Entegris belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Financial Performance - Entegris's net sales for 1Q25 were $773.2 million, a 0.3% increase compared to $771.0 million in 1Q24, but a 9.0% decrease compared to $849.8 million in 4Q24 [5] - The company's GAAP net income for 1Q25 was $62.9 million, a 38.9% increase compared to $45.3 million in 1Q24, but a 38.5% decrease compared to $102.3 million in 4Q24 [5] - Diluted earnings per common share were $0.41 in 1Q25, up 36.7% from $0.30 in 1Q24, but down 38.8% from $0.67 in 4Q24 [5] - Adjusted EBITDA for 1Q25 was $220.7 million, representing 28.5% of net sales [6] Segment Performance - Materials Solutions (MS) segment net sales were $341.4 million in 1Q25, a 2.5% decrease compared to $350.0 million in 1Q24, but excluding divestiture, adjusted net sales increased by 8.0% to $341.4 million from $316.1 million [9] - Advanced Purity Solutions (APS) segment net sales were $433.9 million in 1Q25, a 2.5% increase compared to $423.3 million in 1Q24, but an 11.7% decrease compared to $491.2 million in 4Q24 [12] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of 1Q25 were $340.9 million [15] - Long-term debt was $3.9845 billion [15] - Cash provided by operating activities in 1Q25 was $140.4 million [16] Outlook - The company's net sales guidance for 2Q25 is $735 million to $775 million [17, 18] - Non-GAAP net income is projected to be between $91 million and $102 million [18]

[Entegris First Quarter 2025 Earnings Release](index=1&type=section&id=Entegris%20First%20Quarter%202025%20Earnings%20Release) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) The company reported 5% year-over-year adjusted revenue growth, managed tariff impacts, and focused on improving profitability and cash flow - CEO Bertrand Loy highlighted that Q1 revenue grew **5% year-over-year** (excluding divestitures) and that gross margin, EBITDA margin, and non-GAAP EPS were within guidance[2](index=2&type=chunk) - Despite increased uncertainty from new tariffs, the company is focused on leveraging its global footprint to mitigate impacts, improving free cash flow, and paying down debt[2](index=2&type=chunk) - **Net Sales (as reported):** $773 million, an increase of 0.3% from the prior year[4](index=4&type=chunk) - **Adjusted Net Sales (excluding divestiture):** Increased 5% from the prior year[4](index=4&type=chunk) - **GAAP Diluted EPS:** $0.41[4](index=4&type=chunk) - **Non-GAAP Diluted EPS:** $0.67[4](index=4&type=chunk) Q1 2025 Financial Results Summary (GAAP vs. Non-GAAP) | Metric | Mar 29, 2025 (Q1'25) | Mar 30, 2024 (Q1'24) | Dec 31, 2024 (Q4'24) | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Net Sales | $773.2 M | $771.0 M | $849.8 M | | Gross Margin % | 46.1% | 45.6% | 45.6% | | Operating Margin % | 15.8% | 15.3% | 17.7% | | Net Income | $62.9 M | $45.3 M | $102.3 M | | Diluted EPS | $0.41 | $0.30 | $0.67 | | **Non-GAAP Results** | | | | | Adjusted Gross Margin % | 46.1% | 45.6% | 45.6% | | Adjusted Operating Margin % | 22.1% | 23.1% | 23.5% | | Adjusted EBITDA % | 28.5% | 29.0% | 29.2% | | Diluted Non-GAAP EPS | $0.67 | $0.68 | $0.84 | [Business Outlook](index=2&type=section&id=Business%20Outlook) The company projects Q2 2025 sales between $735 million and $775 million, with non-GAAP diluted EPS expected to be $0.60 to $0.67 Second Quarter 2025 Guidance | Metric | Q2 2025 Outlook | | :--- | :--- | | Sales | $735 M - $775 M | | GAAP Net Income | $51 M - $62 M | | GAAP Diluted EPS | $0.34 - $0.41 | | Non-GAAP Net Income | $91 M - $102 M | | Non-GAAP Diluted EPS | $0.60 - $0.67 | | Adjusted EBITDA | ~27.5% of sales | [Segment Performance](index=2&type=section&id=Segment%20Performance) The Advanced Purity Solutions segment led in revenue, while the Materials Solutions segment showed year-over-year profit growth - **Materials Solutions (MS):** Provides materials-based solutions like chemical vapor deposition materials, CMP slurries and pads, and specialty gases to improve device performance and yield[6](index=6&type=chunk)[7](index=7&type=chunk) - **Advanced Purity Solutions (APS):** Offers filtration, purification, and contamination-control solutions to ensure the purity of critical liquids and gases in semiconductor manufacturing[6](index=6&type=chunk)[7](index=7&type=chunk) Segment Results (in millions) | Metric | Mar 29, 2025 (Q1'25) | Mar 30, 2024 (Q1'24) | Dec 31, 2024 (Q4'24) | | :--- | :--- | :--- | :--- | | **Net Sales** | | | | | Materials Solutions | $341.4 | $350.0 | $361.1 | | Advanced Purity Solutions | $433.9 | $423.3 | $491.2 | | **Segment Profit** | | | | | Materials Solutions | $75.0 | $67.1 | $77.1 | | Advanced Purity Solutions | $108.1 | $111.2 | $134.9 | [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased slightly year-over-year to $773.2 million, driving significant growth in net income to $62.9 million Q1 2025 Statement of Operations (in millions, except per share data) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Net sales | $773.2 | $771.0 | $849.8 | | Gross profit | $356.5 | $351.8 | $387.3 | | Operating income | $122.3 | $117.6 | $150.0 | | Income before income tax expense | $71.4 | $48.9 | $112.5 | | Net income | $62.9 | $45.3 | $102.3 | | Diluted earnings per common share | $0.41 | $0.30 | $0.67 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached $8.43 billion, supported by $3.75 billion in shareholders' equity and balanced by $3.98 billion in long-term debt Balance Sheet Highlights (in millions) | Account | Mar 29, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $340.9 | $329.2 | | Total current assets | $1,670.2 | $1,616.3 | | Goodwill | $3,943.9 | $3,943.6 | | Total assets | $8,431.4 | $8,394.6 | | **Liabilities and Equity** | | | | Total current liabilities | $512.6 | $525.2 | | Long-term debt | $3,984.5 | $3,981.1 | | Shareholders' equity | $3,749.4 | $3,691.5 | | Total liabilities and equity | $8,431.4 | $8,394.6 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $140.4 million in operating cash flow, funding capital expenditures and ending the quarter with $340.9 million in cash Cash Flow Summary for Three Months Ended (in millions) | Activity | Mar 29, 2025 | Mar 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $140.4 | $147.2 | | Net cash (used in) provided by investing activities | $(108.3) | $181.0 | | Net cash used in financing activities | $(22.4) | $(439.9) | | Increase (decrease) in cash and cash equivalents | $11.7 | $(116.2) | | Cash and cash equivalents at end of period | $340.9 | $340.7 | [Reconciliations of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) [Reconciliation of GAAP Gross Profit to Adjusted Gross Profit](index=9&type=section&id=Reconciliation%20of%20GAAP%20Gross%20Profit%20to%20Adjusted%20Gross%20Profit) Q1 2025 GAAP gross profit was adjusted for minor restructuring costs, resulting in an adjusted gross profit of $356.7 million Gross Profit Reconciliation (in millions) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Gross profit-GAAP | $356.5 | $351.8 | $387.3 | | Restructuring costs | 0.2 | — | 0.4 | | Adjusted gross profit | $356.7 | $351.8 | $387.7 | [Reconciliation of GAAP Segment Profit to Adjusted Operating Income](index=10&type=section&id=Reconciliation%20of%20GAAP%20Segment%20Profit%20to%20Adjusted%20Operating%20Income) Adjustments to segment profits for restructuring costs yielded a total adjusted operating income of $170.8 million for Q1 2025 Adjusted Operating Income Reconciliation (in millions) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | MS adjusted segment profit | $75.1 | $75.3 | $78.2 | | APS adjusted segment profit | $110.4 | $111.2 | $137.1 | | Total adjusted segment profit | $185.5 | $186.5 | $215.3 | | Less: adjusted unallocated G&A | (14.7) | (8.4) | (15.2) | | **Total adjusted operating income** | **$170.8** | **$178.1** | **$200.1** | [Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20Operating%20Income%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $220.7 million, reconciled from GAAP net income by adding back taxes, interest, and other non-cash charges Adjusted EBITDA Reconciliation (in millions) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Net income | $62.9 | $45.3 | $102.3 | | GAAP - Operating income | 122.3 | 117.6 | 150.0 | | Amortization of intangible assets | 46.1 | 50.2 | 46.2 | | Adjusted operating income | 170.8 | 178.1 | 200.1 | | Depreciation | 49.9 | 45.3 | 48.3 | | **Adjusted EBITDA** | **$220.7** | **$223.4** | **$248.4** | [Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share](index=12&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20and%20Diluted%20Earnings%20per%20Common%20Share%20to%20Non-GAAP%20Net%20Income%20and%20Diluted%20Non-GAAP%20Earnings%20per%20Common%20Share) Non-GAAP net income reached $101.5 million ($0.67 per share) after adjusting for amortization of intangibles and restructuring costs Non-GAAP Net Income and EPS Reconciliation (in millions, except per share data) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | GAAP net income | $62.9 | $45.3 | $102.3 | | Amortization of intangible assets | 46.1 | 50.2 | 46.2 | | Restructuring costs | 2.4 | — | 3.9 | | Tax effect of adjustments | (9.9) | (13.6) | (6.9) | | **Non-GAAP net income** | **$101.5** | **$103.8** | **$127.5** | | GAAP Diluted EPS | $0.41 | $0.30 | $0.67 | | **Diluted non-GAAP EPS** | **$0.67** | **$0.68** | **$0.84** | [Reconciliation of Reported Net Sales to Adjusted Net Sales (excluding divestiture) Non-GAAP](index=13&type=section&id=Reconciliation%20of%20Reported%20Net%20Sales%20to%20Adjusted%20Net%20Sales%20(excluding%20divestiture)%20Non-GAAP) Q1 2024 net sales were adjusted to $737.1 million to exclude a divested business, providing a basis for like-for-like comparison Adjusted Net Sales Reconciliation (in millions) | Line Item | Mar 29, 2025 | Mar 30, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Net sales | $773.2 | $771.0 | $849.8 | | Less: divestiture | — | (33.9) | — | | Adjusted net sales (Non-GAAP) | $773.2 | $737.1 | $849.8 | [Reconciliation of GAAP Outlook to Non-GAAP Outlook](index=14&type=section&id=Reconciliation%20of%20GAAP%20Outlook%20to%20Non-GAAP%20Outlook) The Q2 2025 GAAP outlook is adjusted for expected amortization of intangibles to provide a non-GAAP forecast Q2 2025 Outlook Reconciliation | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $51 - $62 | $40 | $91 - $102 | | Diluted EPS | $0.34 - $0.41 | $0.26 | $0.60 - $0.67 | [Appendix](index=2&type=section&id=Appendix) [Non-GAAP Information](index=2&type=section&id=Non-GAAP%20Information) The company utilizes non-GAAP measures to offer investors a clearer view of ongoing business performance and future outlook - The Company provides supplemental non-GAAP financial measures to better understand its business, believing they offer investors additional meaningful information for assessing ongoing results[11](index=11&type=chunk) - Management uses these measures to evaluate segment performance and believes they help indicate baseline performance before certain charges not indicative of the business's future outlook[11](index=11&type=chunk) [Cautionary Note on Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) This release contains forward-looking statements subject to significant risks and uncertainties that could impact future performance - The news release contains forward-looking statements based on current management expectations, which are not guarantees of future performance[13](index=13&type=chunk) - These statements involve substantial risks and uncertainties that could cause actual results to differ materially, including fluctuations in semiconductor demand, global economic uncertainty, and tariffs[13](index=13&type=chunk)