ATMI, Inc. Q1 2008 Earnings Call Transcript

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2008-04-24 12:17:07.0

Tags: ATMI Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question will be from Christopher Blansett – JP Morgan.

Christopher Blansett – JP Morgan

I want to dig into your full year guidance and how we should look at how much of that incremental revenue for the year is going to come from the new products particularly your AutoClean and your RegenSI products?

Tim Carlson

The new products that we focus on are not just the AutoClean and RegenSI but it’s also CMPlicity and High Productivity and also our mixing products so what we call our ?Big Five?. The Big Five themselves we’re anticipating, we should be ending our Q4 with a Q4 run rate of around 10% of total revenues, with contribution coming from each of those Big Five opportunities.

Doug Neugold

And that’s really going to develop as we get into the second half of the year. We are really in the final stages in the lot of qualification efforts so it’ll pick up momentum as we get into the second half. As Tim said, we expect to exit the year in the 5% to 10% of overall revenue range from those new products.

Christopher Blansett – JP Morgan

Doug, a question for you along the pricing strategy I know you have been trying to price according to the cost savings in many cases that your customers will achieve. How is that going and how is that going to impact the prices you actually get for some of these new products?

Doug Neugold

Yes, it’s the important point and the way we look at it, it’s a subtlety, but what we are trying to do is not to enter into agreements with them for cost savings. We capture that as the value we’re creating for them. We’re always interested in negotiating around value rather than cost.

So with that clarification, both in the case of RegenSI and in the case of AutoClean, in fact we’re having good success in introducing a model that’s based on value created and agreeing it with them, and getting agreements in place.

So that’s about as much as I’ll say on that, but in all those instances, we’ve developed models, we’ve agreed models, and we’re entering into contracts that reflect that we’re recognizing the value created and they’re sharing it with us.

Operator

The next question will be from Jim Covello - Goldman Sachs.

Jim Covello - Goldman Sachs

 

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