Advanced Energy Industries Inc at JPMorgan Technology, Media and Communications Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Yes. Thanks for that comprehensive introduction. Just kind of want to flesh out just a few quick near-term things before moving on to the end markets. You commented, semiconductor demand is strong. We've heard that from some of your customers and other people in the equipment space. But also, it seems that some supply chain issues in places like the Philippines held back growth for other areas like industrial. Data center is strong. We've also heard that trend more -- pretty much on every company that's presented here at our conference and through earnings. But then you mentioned telecom's muted, which -- that's been kind of mixed. Some people have talked about that accelerating and others have not. But I guess for the near-term guide, how much would you say the weakness in industrial and medical and then is -- and also telecom is related to supply-related issues on your side versus end-demand weakness? And on the flip side, I guess, do you have any potential supply constraints that could hold back your otherwise strong semiconductor or data center businesses?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Okay. Maybe sticking on, you mentioned about the political climate. There's obviously new discussions on trade, the Department of Commerce, the BIS memo on licensing requirements for equipment shipments, probably more affects your end customers. But I'd like to understand at least how you guys read the situation. Can you give us an update on any potential near-term impact of that?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Okay. Maybe just sticking with semiconductor before moving on to some of the other end markets. You obviously support a wide variety of customers. Your 2 largest customers are primarily in businesses like etch and dep, but you obviously have growing businesses and other businesses across the food chain. I guess when you think about the competitive landscape, where -- can you describe the critical areas where you're winning in these key steps? You have new product introductions recently, call it, like, called right power. Hope to get an update on your competitive -- the competitive landscape and why you guys win?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Yes. That was another one of my questions about the cross-selling opportunity. And that particular one was from, I'd say, parts used for other markets in the semis, but what about vice versa? I guess core AI and the other markets as well? Could you speak to the other cross-selling opportunities?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Yes. Understood. Yes. And that maybe could lead into data center. I guess a lot of that, of course, was through acquired companies. But it seems like you're gaining some pretty strong share in hyperscale, especially based off the growth you guys have posted over the last few quarters. Can you speak to what's really driving the share gains? And where do you see first -- future growth from here, both from an end-market point of view as well as maybe potentially increase share or content point of view? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 13, 2020 / 3:10PM, AEIS - Advanced Energy Industries Inc at JPMorgan Technology, Media and Communications Conference (Virtual)

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Yes. And I guess, it sounds like with share gains and adding layering on customers, it might make it a little hard answer. But I guess, based on your visibility today, how do you see sustainability of this business as you think about in the back half of this year and into next year?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Yes. Understood. And telecom -- you already kind of spoke to telecom earlier and some of it may be related to who's spending now and we know China is starting to fire, maybe the U.S. has had some delays. But at least from what you're hearing from your customers, how should we think about the ramp of your business in the telecom space?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : And then going to your last segment, you already spoke to some of the near-term drivers in Industrial & Medical. But I guess as we just think about the long-term growth potentials in these businesses, what makes them attractive? Why are they attractive? And what are you doing to grow in these spaces?

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Wrapping up with financials. You put out an EPS target of $6.50, $2.44 in 2019. How do you bridge the gap over the next few years to get to your target earnings? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 13, 2020 / 3:10PM, AEIS - Advanced Energy Industries Inc at JPMorgan Technology, Media and Communications Conference (Virtual)

Question: William Chapman Peterson - JP Morgan Chase & Co, Research Division - Analyst : Great, Paul. Everyone, thanks for joining. With that, we're out of time. Good luck in -- with this, and thanks for joining us today.