Wall Street Transcript Interview with Seth H. Bagshaw, the Vice President, CFO and Treasurer of MKS Instruments, Inc. (MKSI)

Wall Street Transcript

67 WALL STREET, New York - October 8, 2012 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Semiconductor Capital Equipment - Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - High Computing Power Technology - Semiconductor Inventory Burnoff

Companies include: MKS Instruments Inc. (MKSI) and many others.

In the following excerpt from the Semiconductors Report, the CFO of MKS Instruments discusses the outlook for his company for investors:

TWST: Please start with an overview and history of MKS Instruments to set the stage for our readers.

Mr. Bagshaw: MKS is a leading global provider of instruments, subsystems and process control solutions that measure, control, power and analyze parameters used in advanced manufacturing processes. Our largest served market is the semiconductor capital equipment market. We provide technology solutions to both OEM customers and end market device manufacturers. In the last fiscal year, 2011, this market was approximately 60% of our consolidated revenue.

The remaining 40% of business in 2011 was across a wide number of other advanced markets, such as solar-cell manufacturing; light-emitting diodes, or LEDs; medical industry and thin film; and a number of other advanced processes. Our revenue to these other advanced markets achieved record results in 2011.

We have almost 2,400 employees throughout North America, Asia and Europe. Last year we celebrated our 50th anniversary, so we have a long history in providing leading solutions to our customers.

TWST: What are the dynamics between the I.P. portfolio for MKS Instruments and the demands that customers are making in the field today?

Mr. Bagshaw: In order to be highly successful in the demanding markets we serve, it's critically important to have a wide range of products derived from a broad technology portfolio. For example, we have over 650 patents outstanding covering our I.P. portfolio, and we continue to make substantial investments in research and development projects each year. For example, in 2011, our R&D spending was over $60 million, and we currently have over 340 engineers working on product development and support.

Our customers, both to support their product roadmaps and to meet their ongoing customer commitments, rely on MKS to provide not only new product development but to provide global applications and service support. We have a global footprint with operations throughout Asia, North America and Europe to provide real-time support to our customers. We see that the trend for more MKS content to measure and control advanced manufacturing processes will continue as the semi industry continues to develop more advanced devices.

Within the other advanced markets, with some exceptions, we can generally adapt our existing products to these new markets with relatively modest incremental R&D spending. This allows MKS to leverage these products into adjacent markets cost effectively.

TWST: What are the keys to customer relationships and customer satisfaction? Is it a hand-in-hand development process? Is it the company's technology and quality emphasis? What's there?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

View Comments