Good day, everyone, and welcome to Entegris' Q1 2021 earnings release call. Today's call is being recorded. At this time, I would like to turn the call over for opening remarks and introductions over to Bill Seymour, VP of Investor Relations. Please go ahead, sir. Good morning, everyone. Earlier today, we announced the financial results for our Q1 of 2021. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in our forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we filed with the SEC. Please refer to the information on the disclaimer slide in the presentation. On this call, we will also refer to non-GAAP financial measures as defined by the SEC and Regulation G. You can find a reconciliation table in today's news release, as well as on our IR page of our website at entegris.com. On the call today are Bertrand Loy, our CEO, and Greg Graves, our CFO. With that, I'll hand the call over to Bertrand. Thank you, Bill, and good morning to all. I hope everyone is staying healthy and safe in the present environment. Turning to our Q1 performance, sales grew 24% year-over-year. Our growth was strong across all three divisions as we benefited from accelerating industry conditions, several node transitions, and strong overall demand for our products and solutions. Gross margin improved sequentially as we expected and was up over 100 basis points from the Q4. Adjusted EBITDA was up 25% year-over-year, and non-GAAP EPS was up 27% year-over-year. Let me provide a little bit more color on our Q1 revenue performance. From a product standpoint, we continued to benefit from accelerated demand for our leading-edge solutions, especially in liquid filtration, advanced deposition materials, and specialty coatings. Sales to memory customers were up 40% year-over-year and up sequentially. As you recall, Entegris content per wafer is rapidly increasing in the new higher layer count memory devices. In addition, our Aramus high-purity bags, which are being used for the distribution and storage of the COVID-19 vaccine, recorded stronger sales than planned as our team successfully ramped new capacity. While sales growth was strong overall, we did face some challenges in what proved to be a very dynamic industry environment, particularly in the areas of freight capacity, as well as supply chain and labor constraints in certain U.S. locations. We are aggressively managing these situations, and we expect them to ease as we progress through the year. That said, demand for our products and solutions continues to be very strong, and our order book is at record levels, which bodes very well for us as we look ahead to the Q3 and the balance of the year. More specifically, for the full year, our outlook for the industry and Entegris has improved significantly. The semi market looks very healthy, bolstered by a robust global GDP outlook and strong overall chip demand, driven by accelerated digitalization, 5G, and high-performance computing. In addition, we have recently seen significant increases in our customers' CapEx plans for the year. Given this backdrop, for the full year 2021, we now expect the market, based on our unit CapEx mix, will be up 13%-14%, compared to our previous expectations of up 7%-8%. As I said, demand for our solution set continues to be very strong, and as a result, we expect to outperform the market and now expect our sales growth for the full year 2021 to range from 17%-19%, compared to our previous expectations of up 11%-13%. Finally, we expect the EBITDA flow-through to be in line with our target model and now expect full-year 2021 non-GAAP EPS to exceed $3.15, compared to our previous expectation of non-GAAP EPS greater than $2.85. Looking further ahead, we are very optimistic about the long-term fundamentals of the semiconductor market. Accelerating chip demand and a higher proportion of wafers produced at the leading edge provide a great base for very attractive secular industry growth. On top of this, at Entegris, we are benefiting from the growing importance of process materials and materials purity to new device architectures. We expect that these key trends will continue to result in a rapidly expanding served market and increasing Entegris content per wafer. All of this is supported by the strength of our team's execution and our highly resilient, differentiated unit-driven business model. Finally, I want to take a moment to thank our customers for the trust and confidence they place in Entegris and thank the Entegris teams around the world for their incredible work. Now let me turn the call to Greg. Greg? Thank you, Bertrand, and good morning, everyone. Our sales in Q1 were $513 million, up 24% year-over-year and down slightly sequentially. Moving on to gross margin, GAAP and non-GAAP gross margin were both 45.8%, slightly above our guidance of 45.5%. The biggest drivers of the increase were the expected improvement in SCEM's gross margin following a weak Q4 and better overall factory performance. We expect gross margin to be approximately 46.5%, both on a GAAP and non-GAAP basis in Q2. We also continue to expect gross margin will continue to improve throughout the rest of the year and be approximately 46.5% for all of 2021. GAAP operating expenses were $121 million in Q1 and included $14 million of non-GAAP items from amortization of intangible assets, integration, and other costs. Non-GAAP operating expenses in Q1 were $107 million, which was slightly above our guidance range. We expect GAAP operating expenses to be approximately $122 million-$124 million in Q2. We expect non-GAAP operating expenses to be approximately $108 million-$110 million. Q1 GAAP operating income was $114 million. Non-GAAP operating income was $128 million or 25% of revenue, in line with our expectations and up both year-over-year and sequentially. Adjusted EBITDA was approximately $150 million or 29% of revenue and was also in line with our expectations. Moving to below the operating line. Looking at the other income expense line, a negative move during Q1 in the same currencies that favorably impacted us in Q4 resulted in other income expense going from $5 million positive in Q4 to $4 million negative in Q1. Our GAAP tax rate was 14%, and our non-GAAP tax rate was 15% for the quarter. For Q2, we expect our GAAP tax rate will be approximately 12%, and our non-GAAP tax rate will be approximately 16%. For the full year 2021, we expect both our GAAP and non-GAAP tax rate will be approximately 18%. Q1 GAAP diluted EPS was $0.62 per share. Non-GAAP EPS of $0.70 per share was up 27% year-over-year and down slightly sequentially. EPS would have been approximately $0.02 higher in Q1, excluding the negative currency impact on the other income expense line item I just mentioned. Turning to our performance by division. Q1 sales of $167 million for SCEM were up 15% year-over-year and down slightly sequentially as expected. The year-over-year growth was primarily driven by advanced deposition materials, cleaning chemistries, specialty gases, and advanced coatings. Adjusted operating margin for SCEM was 21% for the quarter, up over 300 basis points sequentially. The sequential increase in operating margin was primarily related to the improvement in the gross margin I just mentioned. Q1 sales of $207 million for MC were up 30% from last year and up slightly sequentially. Liquid filtration and gas purification drove the sales growth year-over-year. It's worth noting that gas filtration had its best quarter in years and is seeing the benefit of increasing WFE spending in the industry. Adjusted operating margin for MC was 34%, up significantly year-over-year and down slightly sequentially. Q1 sales of $149 million for AMH were up 28% versus last year and down 2% sequentially. The year-over-year sales increase was driven by growth across all major product platforms, strong sales of our Aramus high purity bags, and the impact of the GMTI acquisition. The sequential sales decline can mostly be attributed to the catch-up royalty income from Gudeng Precision that occurred in Q4. Adjusted operating margin for AMH was 22%, up almost 400 basis points year-over-year and down slightly sequentially. The year-over-year margin increase was driven by the higher sales volume and solid cost management. Q1 cash flow from operations was $53 million, and free cash flow was $10 million. As a reminder, Q1 typically has the lowest cash flow of the year, primarily due to the variable compensation payment that is made during the Q1. capex for the quarter was $43 million. Given the strong demand environment, we now expect to spend approximately $225 million in CapEx this year, up $25 million from our previous expectation. These investments are in support of our global product introductions, capacity expansions, including the Aramus bags, and for the initial phase of the previously announced investment in our new Taiwan facility. Consistent with our capital allocation strategy, during Q1, we used approximately $11 million for our quarterly dividend, and we repurchased $15 million of our shares. You probably saw that we recently took advantage of a favorable debt market and announced and priced $400 million of senior unsecured notes due in 2029 at an interest rate of 3.625%. We will use the proceeds as well as cash on hand and a small draw on our revolving credit facility to pay off the existing $550 million, 4.625% notes due in 2026. This effectively extends the due date three years and lowers the rate by 100 basis points. As a result of the refinancing, we are expecting $23 million of one-time costs, primarily related to the call premium for the existing notes that will impact GAAP EPS in Q2. On an ongoing basis, with the changes to our debt, we are now expecting interest expense to be approximately $10 million per quarter starting in Q3, a $2 million reduction from recent levels. Now for our Q2 outlook. We expect sales to range from $530 million-$545 million. We expect GAAP EPS to be $0.56-$0.61 per share and non-GAAP EPS to be $0.77-$0.82 per share. In summary, demand for our products and solutions is the highest it's ever been, validating the importance of our offering and the strength of the market. We look forward to a strong Q2 and another record year. Operator, we'll now open up for questions. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. That's again, star one to ask a question. We will take our first question from Toshiya Hari of Goldman Sachs. Please go ahead. Good morning. Thanks for taking my questions, and congrats on the strong outlook. Bertrand, you revised up your market outlook for 2021 from up 7%-8% to up 13%-14%. Sorry if I missed this, but can you differentiate between how you're thinking about the CapEx outlook for the industry versus wafer starts? In terms of how you're thinking about your own business, the 17%-19% growth for the year, if you can provide a little bit more color by segment, that would be helpful. Thank you. Sure. Happy to do that, Toshiya. We were pleased indeed to increase our guidance for the year. Those numbers are all organic, first of all. Back to your question in terms of what's behind the industry assumption. We expect MSI to grow in the low teens for the year. On the CapEx front, we expect CapEx, and again, here I'm talking about the industry CapEx, not just WFE, but we expect CapEx to be up in the low 20s. That gives you a blend of about 13%-14% for the industry. Then again, our performance is about four to five points for Entegris. Very much in line with the commitments that we made during our recent Analyst Day. Then how are you thinking about the segments, Bertrand? Is there any additional color that you can provide for the full year? In terms of what is going to drive the outperformance, first, I think it's going to be a continuation of the trends that we saw in Q1. A lot of benefits that we expect to continue to see from the memory segment. 3D NAND, as you know, is a big opportunity for Entegris. Nanofins, etch selectivity, and conformality becomes particularly important as more wafers are produced at 128 layers and more. We expect about 30% of the wafers to be produced at 128 layers or more this year as compared to only 10% last year. That's going to be a big driver for us, and that will benefit our advanced deposition materials. It will benefit our specialty coating product lines, and of course, it will benefit our liquid micro contamination product lines as well. Great. That's super helpful. Then as a quick follow-up, Bertrand, in your prepared remarks, you talked about some challenges related to freight and supply and labor. How meaningful were those headwinds in Q1? I'm assuming there was some revenue impact from those challenges, and what are your expectations in terms of Q2 and the back half? You talked about some of these easing as you progress through the year, but should we expect some of these challenges to persist in Q2 and perhaps Q3? Thank you. Yes, as I said in my prepared remarks, we are all very focused on managing the various constraints that we saw and experienced in Q1. I cited three different types of constraints. One was the supply chain shortages that we experienced, our own capacity limitations, and then the last one was freight. I think on the supply side, we expect those situations to ease out in Q2, Q3. As it relates to our own capacity, we have a number of initiatives to add that will actually add capacity in Q2, and then more additional capacity coming into the balance of the year. Freight is a situation that hopefully will get better as the general economies start to open up. Again, all of those various constraints and the plans to mitigate them have been taken into account in our revised annual guidance. Thank you. We're good. Thank you. Our next question comes from Sidney Ho of Deutsche Bank. Please go ahead. Great. Thanks for taking my question. My first question is on margins. You suggested gross margin will still get to the 46.5% for the full year. Given a good start in Q1 and Q2, why won't that gross margin go higher? Related to that, if I look at the operating margin side, especially for SCEM, nice improvement there, 300 basis points quarter-over-quarter. Looking forward, can you help us understand what are the key drivers to get to your target of 25%-27%? First of all, Sidney, on the gross margin. Through the H1, we had a little over 45.5% in Q1, I guess 45.8%. We expect 46.5% in Q2, that brings us to an average of a little bit over 46%. To get to 46.5% for the full year, it implies back half margins of about 47%. Those are our assumptions as it relates to gross margin. We see some improvements related to volume. We're not counting on better than average product mix. We're counting on typical product mix. Those are our primary assumptions on the gross margin. The second part of your question, could you repeat that? I heard the 25%, I didn't get the starting point. Yeah. Related to the operating margins for SCEM, again, good improvement in Q1. From the roughly 21% range, how do you get to that 25%-27%? What are the key drivers to get there? Yeah. It's really three things. We'll see continued gross margin improvement there in that business. We expect to see them continue to manage. They've made much of their investment in R&D and SG&A, so we'd expect there to be pretty significant leverage on the improved gross margin. We've talked consistently about improving volumes in our specialty materials/graphite business as we move throughout the year. That should be helpful as well. Okay. That's helpful. Maybe my follow-up question is kind of related to the earlier question that you answered. Beyond Q3, what kind of visibility do you have in the H2 of the year at this point when compared to the same time in past years, especially given the semiconductor shortage or wafer shortage we're seeing? Maybe asked differently, if demand continues to improve, do you think you'll be able to see much variability to your full year revenue forecast given supply shortages out there? Thank you. Sidney, I would say that the visibility is actually pretty good right now. Our order book is at record levels as we mentioned earlier. That gives us a good level of comfort for the rest of the year. That's really what we reflected into the full year guidance. We talked about capacity and the constraints that we are working on resolving. We're all obviously very focused on that. Short term, it's really about, I'm talking about Q2, it's really about getting the most out of the current equipment and infrastructure. It's really mostly a staffing challenge here in the U.S. We have been hiring and we are training a number of new shifts, and we intend to operate at 7/24 in most sites, starting sometime later in Q2. In the back end of the year, in the H2 of the year, new equipment is going to come online. That's going to provide additional relief, in particular for our liquid filtration platform. If you go beyond that next year, obviously, we're going to start seeing the benefits of a number of new investments, including the new Taiwan site. That's important because our growth objectives obviously go well beyond 2021. We have very aggressive growth objectives for many years to come. We are very focused on the capacity short term, midterm, and long term. Great. Thank you very much. Thank you. Our next question comes from Mike Harrison of Seaport Global Securities. Please go ahead. Hi, good morning. Good morning. In micro contamination control, you mentioned that your gas filtration business had the best quarter in years. It sounds like that was more equipment driven. Can you, number one, talk about what is driving the strength in the gas filtration business, and then maybe talk about the sustainability as you think about equipment sales being maybe a leading indicator for some of the consumable sales, within that business. Mike, your assessment is correct. Our gas filtration business had a record quarter, and a lot of that comes from the increased levels of WFE spending. We expect those levels of demand to continue, at least for the balance of the year. That's going to continue to benefit that product line, again, for many quarters to come. When it comes to the long-term implications of all of that, actually, what we are most excited about at Entegris is, not just so much the current level of new fab construction, but it's really, in a few years from now, 2023 and beyond, when all of that new capacity is going to come online. Those new fabs will be running the most advanced processes in logic and in memory, where we have higher content per wafer. Obviously pleased with the short-term increase in CapEx and what it means for some of our product lines, but more excited about the long-term prospects as those new fabs come online. All right. Within the advanced material handling business, I believe you showed revenue growth in the high 20s there. You mentioned the strength in Aramus and the impact of the GTMI acquisition. Can you give us a sense of what organic growth would have looked like in that AMH business versus the 28% number that you showed? Yeah. I mean, remember, given the timing of some of those acquisitions, the inorganic impact is relatively modest. If you exclude the life science business, I would say that it would be in the high teens for AMH versus Q1 of last year. Is that the question, Mike? Yes, that answers it. Maybe just one last one. You overshot the operating expense number by about $1 million. Any color you can provide on what drove that overrun? Mike, not really anything in particular. I would say if I could point to one thing, and I referred to it earlier, that some of the investments in R&D within our divisions, probably spent a little bit more than we initially anticipated, and that's not something. Honestly, when we're spending more on R&D, as long as it's within reason, I feel good about that. All right. Thanks very much. Thank you. Our next question comes from Chris Kapsch of Loop Capital Markets. Please go ahead. Yeah, good morning. Thank you. You characterized your order backlogs at record levels, both in the formal remarks and in a response to another question. I am just wondering if you could characterize any instances where that demand growth, those orders are outsized relative to your revised market expectations. Also, is there any sense that some of this demand is above and beyond sort of the industry conditions? In other words, are there instances where customers are just desperately trying to build buffer stocks, or is this just reflecting true end market demand? I think what we're seeing is really true end market demand. I think there is a high level of demand for advanced chips and for mainstream chips. The demand for our products really comes from the high level of fab utilizations that we've been seeing across most segments. Today, I would argue that many of our advanced fab customers in particular, are running with very low levels of safety stocks. In some cases, uncomfortably low levels of safety stocks. I think that, again, there is a solid pent-up demand for our solutions that is based on actual demand drivers, as well as a desire by some of our customers to get back to more normal levels of safety stocks for some of our products. Fair enough. Thanks. Just to follow up on, you mentioned, I think it was your memory, or sales into the memory fabs up, I think 40%. You also made some comment about the architecture shift that's ongoing there in terms of expectations for the year. Just wondering if the current strength, is it reflective of just across the board fab utilization rates in the memory end market, or is it reflective of this shift that's already happening? Any color on the sort of the cadence of that and the direction, trajectory of that business would be helpful. Thanks. If you look at fab utilization, especially in 3D NAND, there was really not a lot of change Q1 versus Q4. A lot of the benefit that we saw was coming from the migration to higher layer count devices, as I was mentioning earlier. You know that this is the type of architectures where we have higher content per wafer. I would say that the rate of adoption of the new materials that we've developed for those architectures, the new chemistries that we have developed, is just accelerating, as expected, and as we presented during our recent Analyst Day. Again, it's a trend that will be beneficial to us this year. We expect more conversion to 128 layers in 2022, 2023. If you go beyond 2021, we would expect more migration to 256 layers and beyond, where we have yet increased opportunities per wafer. Helpful. Thank you. Thank you. Our next question comes from Patrick Ho of Stifel. Please go ahead. Thank you very much, and congrats on the nice outlook for the year. Bertrand, maybe first off, on the advanced foundry logic side, traditionally you've seen continued capital intensity increases in your microcontamination control business, as we could note. Can you just remind investors, and myself included, in terms of some of the materials opportunities that are currently ongoing, and whether you need to see the industry transition to the nanowires gate-all-around for that next step up on the materials end? Of course, we've been talking a lot about memory, and Patrick, you are reminding us that we have also great opportunities on the logic front. You're right. I think that we mentioned those opportunities, and we quantified those opportunities in November last year, and they are real. The opportunities will be for new metals, new high-k materials, and selective etch chemistries will start to also be introduced with gate-all-around architectures. The next few years will be equally exciting in logic. When it comes to node transitions in logic, I think that the H2 of this year, 2021, we will see some large customer transitioning to a new node. That will actually drive adoption of some of those new materials and those more advanced filtration solutions as well. I would say that for us, the H1 of the year is more of a memory story. The H2 of the year will be both memory and advanced logic. Great. That's helpful. Maybe as my follow-up question for Greg, in terms of OpEx, it is going up slightly in the June quarter, and you did mention bringing on additional labor. How much is that labor content going to impact the rest of 2021 in terms of the OpEx line? When we see the increases in OpEx, primarily investments in R&D and some modest increases in SG&A. When we talk about labor, we're primarily talking about cost of sales and adding additional labor to help us meet the demands for our products. Great. Thank you very much. Thank you. Our next question comes from Amanda Scarnati of Citi. Please go ahead. Hi. Good morning. I just want to talk a little bit about SMIC licenses. Earlier in the quarter, there was news reports that Entegris was able to gain some licenses there. Can you just talk about the scope of what that looked like and if there's any ongoing discussions with the U.S. government in terms of expanding sales to China or any additional restrictions potentially that you're seeing? Good morning, Amanda, first. Let me start with the broader part of your question first. Of course, the industry as a whole, and Entegris in particular, is very engaged with the U.S. administration right now. It's important, especially in the early days of the new Biden administration. I think generally speaking, I think that we need to accept that the semiconductor industry, because of its broad strategic importance, is likely going to remain an area of tension between the two nations. Going back to the first part of your question, like everybody else right now, we are very focused on complying with the existing rules. For us, as we discussed in the previous earnings call, it means applying for export licenses for all of our U.S.-made products, and giving some time to the administration to review and approve those licenses. What I can share with you is that we have some of our licenses received approval since the beginning of the year, but there are some that are still under review, and we are awaiting approval. All of that has been factored into our Q2 guidance and our annual guidance. I mean, we've been modeling different scenarios. Great. Do you think, the fact that there's so many semiconductor shortages, the fact that SMIC is one of the larger foundries, that that creates a little bit more of an easing of maybe material sales? Or is it just broad products that you've already been given licenses for? I don't have that specific insight into how the administration is making decision on granting those licenses. I would just say that we're pleased to have received approval on many of our licenses, and I think that we are making good progress, and I am hopeful that we will get approval on the balance of the licenses that are still pending approval. Again, we won't know until we hear from the administration. Great. Thank you. Thank you. Our next question comes from David Silver of C.L. King. Please go ahead. Hi, thank you. I was wondering if we could just maybe talk a little bit about the Aramus product line. There's a couple of moving parts here, but back on Analyst Day, I think you called out the Aramus product as something that was going to account for a full 1% of company growth in 2021. Since then, a number of things have changed. You've raised your growth targets. You've completed a capacity expansion. I believe you called that out. I'm just wondering if you could maybe update us on the expectations for the Aramus growth this year. Secondarily, was the current capacity expansion one of a planned series, or is that the final capacity expansion for some time now? Thank you. Yeah. It is indeed a great story for us. 2020 was really obviously a turning point for this particular technology. Our strategy has always been to target emerging biologics, and the reason we wanted to target gene and cellular therapies is that they have very unique supply chains and very unique requirements involving freeze-thaw processing, where those high-purity Aramus bags perform really, really well. As a matter of fact, we believe that our bags are just the best solutions in the market right now. They have lower extractables, lower leachables. That makes them the cleanest bag available, and they are more resistant than any other bag in the market. They can withstand gamma sterilization, and they do not break, they do not leak when they are frozen. With that as a backdrop, the projections for this platform in 2021 is now closer to $40 million. A little bit more than when we last spoke. That's the reason why we are adding capacity. We invested about $10 million in capacity last year. We plan to invest about $30 million this year. By the way, those numbers are obviously included in the CapEx guidance that Greg gave you. Just to be clear, those investments go well beyond supporting the needs of the global COVID-19 vaccination campaigns. The strategy here is really to support the needs of our biotech customers as they develop the therapies of the future. Thank you for that. I had maybe another question about supply chain in general, and in particular, kind of your global footprint. At a number of points, you've talked about wafer fab utilization at extremely high rates, and you've cited some of your customers running with uncomfortably low safety stocks. Your job, I guess, as a trusted supplier is to meet their needs as they evolve. Whether it's in the enhanced CapEx budget or other areas, I mean, what are some of the tactical steps that you're taking in the current business environment, both to support your customers and I guess exploit the unusually robust demand opportunities that you see currently? Thanks. Yes, it's a great question. I think I've already attempted to answer it earlier, as I said, we are very focused at all levels at Entegris right now to make sure that we have enough capacity coming online in back end of this year and then ensure that we have enough capacity longer term to live up to the increasingly pace at which the demand for products is evolving and to meet customers' expectations. Again, a lot of focus short term on staffing and then mid-term on unlocking the capacity potential of a number of investments in new equipment that we have already made, and that will be coming online in back end of the year. Then longer term, it's all about expanding our footprint, and the Taiwanese site is a good example of what we're trying to do. We're trying to not only just add capacity, but we're trying to do that closer to our customers so that we can reduce the cycles of learning during the development phase. Of course, then reduce our lead times when we start manufacturing locally. Generally speaking, what we're trying to do is really just have greater capabilities on the ground, close to our largest customer to just better support them long term. Once the Taiwanese investment will be completed in 2023, we would expect that about 50% of our production will be in Asia-Pacific, which is where most of the semiconductors are being made today. That may change in the future. There are a lot of discussions about that, but at least for now, it will rebalance our global capacity on a global basis. One last one maybe for Greg, I think you called out negative foreign currency translation this quarter as a line item that maybe nicked the bottom line by a couple of $0.02. Can you maybe, I apologize if I missed this, can you remind me what the key, I guess, currency relationship or relationships that led to the negative effect there? I'm assuming a weak U.S. dollar, not sure, maybe versus Korea, Taiwan, or whatever. Maybe if you could call out the key relationships, maybe we could track that over the next few months. Thank you. Yep. Yeah, let me comment generally. From a P&L perspective down to the operating line, we continue to believe we have a relatively natural hedge because we're selling in multiple currencies, but we're also both manufacturing and have OPEX in multiple currencies. Like I said, at the operating line, it's not a perfect hedge, but it's a pretty good hedge. Below the operating line, other income expense is just what I commented on in the script, really has to do with the revaluation of the balance sheet of our foreign subsidiaries. It has nothing to do with our revenue or our expense structure. The key currencies that are involved are the Korean won, the Japanese yen, and in the most recent quarter, the euro actually had some impact. It's too simple to say that it's how they do versus the U.S. dollar, because it relates to what is the functional currency of the subsidiary entity. It's something, I can walk you through it in great detail, although I wouldn't want to do that on this call. It really, like I said, it has to do with the revaluation of assets that are denominated in something other than the functional currency. Okay, a weaker U.S. dollar versus the Japanese yen and the Korean won is what you were calling out. Is that correct? A weaker dollar versus the yen, for sure. Versus the won, I'd have to go back and look at it. The movement in the won, the won moved in the opposite direction in Q4 that it moved in Q1, so we had a benefit in Q1 and a negative impact. Okay. We had a benefit in Q4 and a negative impact in Q1, excuse me. Got it. Okay. Thank you very much. Thank you. Our final question comes from Paretosh Misra of Berenberg. Please go ahead. Thank you. Good morning, and thanks for taking my question. In your SCEM business, across the three product categories, gases, cleaning chemicals, and deposition materials, any contrast you could provide on growth rates? Just trying to get a sense if all three categories had a similar growth rate or one is growing at much faster than the others. First, you got it right, Paretosh. I think those are the fastest-growing business units within this division. Think about deposition materials growing in the low 30%, very significant growth. Specialty material is a little bit of a tale of two cities because we have advanced coatings growing very fast. The graphite business that is still in a slow recovery mode. The combination of all of that gives you mid-teens, roughly. SPI is also performing at those levels, and that includes our selective etch products, which is a product that we introduced last year and is really going to be one of the big growth contributors for SCEM going forward. Thanks for that color, Bertrand. My follow-up, I was wondering if you could comment on the M&A landscape in the microcontamination business. Are there opportunities in microcontamination outside semiconductor that might be attractive to you? If you look at Anow, and the strategic rationale behind the Anow acquisition, you're absolutely correct that we believe there are opportunities for us to venture in adjacent applications. The best way for us to supplement the existing capabilities that we have internally is to find some of those tuck-ins. Anow is a very important piece to that puzzle. We're going to continue to look at other alternatives as well. When it comes to Anow, I must also admit to the fact that the current pandemic and the travel limitations have been a little bit of a headwind in terms of the cross-pollinization that I was expecting to see between the U.S. development teams and the China-based teams. The business is very healthy, and I hope that joint development work can start relatively quickly. You're right. It's one of the few areas of focus when it comes to M&A, the other area being materials, as we have discussed in a number of occasions. Thank you. That's all I had. Appreciate it, Bertrand. Sure. Thank you. That concludes today's question and answer session. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.