Park Electrochemical Corp. (PKE)’s Q3 FY 2015 Earnings Conference Call Transcript

Alright, let me just see. Ok so I guess that covers that, and there are a couple of things that I want to go over with you and last quarter one of our analyst was asking about electronics and how our market broke down, and it’s a question that’s come up from time to time so we decided to provide some information. This is our market, this is not the electronics market, this is our revenue, and our revenue is electronics, how we do aerospace, how they break down. The biggest segment for us, let’s call it servers providers, internet telecom service providers sometimes called infrastructure. That would be somewhere around 50-60%, that’s the biggest segment for us. Now, normally people would include bay stations in that segment we separate that because for us bay stations is REF only. That would might be 10-15%. Enterprise, that’s something that’s talked about quite a bit but for us it’s a small portion of our revenues, it’s only 10-15%. Semi-conductor, small maybe 5% or more, Aerospace and defense that’s 10-15% that’s going to be mostly in the US and a small portion of other things like medicals, instrumentations, industrial which is, you know we all lump in one category not significant. But we thought it would be helpful if you’d understand those dynamics because it’s a question that comes up from time to time.
The big driver for us is service providers, internet service providers and that’s where you’re going to see the highest end material, the highest tech product and we are talking all about from a very large back plane which call us do service providers. We used to call it internet service providers but now it’s just service providers I guess, which is also sometimes referred to as infrastructure. Talking about core hub routers, high speed switches and bay stations, but we separate bay stations because for us it’s an RF story. Enterprise, you know servers and networking equipment which is a small portion for us and although you know a lot of high end product not quite as high end as the servers provider market. We were talking about sensors, Q sensitive back panels and back flames for instance.
Highest end transfer rate servers and switches this is the highest end product with the highest performance requirement. So sometimes you know people ask about comparable and it’s confusing because they talk about a company that’s really an RF company and RF is actually an area where things outgrown for us in a bit and unfortunately it’s a small piece of our pie, I said may be 10-15% so it’s not going to drive our topline as much as internet service providers or the infrastructure market will. There isn’t really a good comparable for Park and Electronics not on public one anyway, and even the private companies are not good comparable to use Park and it’s unusual as part of its market focus. If you would look at it our competitors have large exposure with the markets that we just really don’t spend much time in. And for a good reason or a sudden accident it’s a part of our strategy we could try to focus only on the high end area where we could distinguish ourselves or protect ourselves a little bit.
Ok, hopefully that mood was helpful if we have not done that before. Now I should say, I want to say that these are estimates, It’s important that I explain that. Maybe a little good estimate, why is that? Because we sell to a certain board company, we don’t know every sale, where it is going, who the end market is, who the OEM is, what application or program it’s on. So this is based on a lot of work with the OEMs where we can’t tie it to PO’s. So there are some estimation and “guesstimation” involved here whenever less, as long as you accept the information without understanding dealt it with a useful information and try to understand the part and my part might be different in other companies.