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KEMET Corporation (NYSE:KEM)

F2Q2011 (Qtr 09/30/10) Earnings Conference Call

October 28, 2010 9:00 AM ET

Executives

Dean Dimke – Director of Corporate and Investor Communications

Per Loof – CEO

Bill Lowe – EVP and CFO

Analysts

Hamed Khorsand – BWS Financial

Ana Goshko – Bank of America

Michael Ramondo [ph] – Private Investor

Omar Samalot – Independent Analyst

Operator

Good morning, I’ll be your conference operator today. At this time I would like to welcome everyone to KEMET second quarter earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session.

(Operator Instructions)

Thank you. I would now like to turn the call over to Mr. Dean Dimke. Please go ahead, sir.

Dean Dimke

Thank you. This is Dean Dimke, Director of Corporate and Investor Communications. Good morning and welcome to KEMET’s conference call to discuss our financial results for the second quarter ending September 30th, fiscal year 2011.

On the call with me today is Per Loof, our Chief Executive Officer; and Bill Lowe, our Executive Vice President and CFO. As a reminder to you, our presentation is available on our website that should help you follow along with the financial portion of our presentation this morning. Please go to kemet.com and click on the Investor Relations tab in the top right portion of our front page. Once there, please click on the second quarter conference call link. That will bring up a few slides that we will call to your attention when we are covering those topics.

Before we begin, we would like to advise you that all statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as expects, anticipates, plans, intends, projects and indicates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties and assumptions. Please refer to our 10-K 10-Qs and recent registration statement filings for additional information on risks and uncertainties.

And now I will turn the call over to Per.

Per Loof

Thank you Dean and good morning everyone. We have the pleasure of conducting this call from our Suzhou, China, operations, so I will say good evening and thank you to our employees that are assisting us tonight with the logistics of this call.

Our second quarter ending September 30 was an extremely strong quarter. As Bill will review with you shortly, we continue to increase our margins and are now reaching a consolidated gross margin of 28%. EBITDA was $53.4 million for the quarter and demand remained strong exceeding expectations. During the summer months we typically reflect a slowdown in particular from our European holiday period, that did not happen this year.

Our success of these financial results are the culmination of efforts by many within our organization over an extended period of time. We’ve been able to improve operating inefficiencies, maintain cost controls and re-establish the strong balance sheet. It’s been an ongoing effort for well over two years now since we began taking aggressive actions to counter the effects of the worldwide recession. These actions continue to pay substantial dividend but we are not done as yet.

We were pleased to have our stock listed on the New York Stock AMEX Exchange last quarter and continue to receive a positive feedback from the investment community. We believe that this greater awareness of our company is key to increasing our stock value and we are interested in creating even higher level of opportunity for investors to learn about our company.

To expand on investor opportunities, we did announce this month a special meeting of stockholders for the approval of our reverse stock split. The special meeting will be held on November 3, 2010. The company’s stockholders on record at the close of business on October 8, 2010 are entitled to vote at the special meeting.

We are proposing a reverse stock split because we believe this action will ultimately increase shareholder value by broadening the universal investors that will consider purchasing shares in the company.

After careful review, we have concluded that the reverse stock split may allow broader range of institutions to invest in the company’s stock and thus increase analyst and broker interest in KEMET. Other information concerning the proposed reserve stock split including a description of the potential effects of the split, you can find in the definite proxy statement.

Last week we also announced the filing of the resale shelf registration statement on Form S-3 with the Securities and Exchange Commission covering 30 million shares of KEMET common stock. The resale shelf registration statements relates to potential secondary offering by selling stockholder, K Equity, an affiliate of Platinum Equity and as most of you know, K Equity holds a warrant to purchase approximately 80.5 million shares of the company’s stock.

The Platinum warranty is immediately exercisable partially or in full at a price of $0.35 per share. After the resale shelf registration statement has been declared effective by the SEC after 30 million shares of the company’s common stock may be offered to the public by K Equity. The specific amounts, prices and manner of distribution will be described in the subsequent filing made with the SEC at the time of each offering. Any offer to sell or solicitation on an offer to buy will be presented in a prospectus that will be issued with respect to any offering.

Under the Form S-3, Platinum has several options under which they can offer these shares to the public. Currently, they have indicated that they will do this through an underwritten secondary offering, which would produce an orderly and efficient placement of the shares. Information about the offering will be presented, of course, in a subsequent filing through the SEC.

As you know, we report our financial results on a diluted basis. This means we’ve already taken into account the impact the warrants have on our share count. So regardless of whether these shares would become registered for sale or remain as warrants, our earnings per share will continue to be reported on the same diluted basis.

We believe that the combination of the reverse split and the secondary offering will provide additional visibility of the company to investors and ultimately that visibility will translate into value for our shareholders, as our operating performance and outlook becomes more actively reflected in our stock price.

As we attempt to explain these upcoming events, none of our comments should be construed as an effort of sale or solicit purchases on behalf of the company K Equity or Platform Equity.

With that I’ll turn it over to Bill Lowe to review in detail our financials for the quarter. Bill?

Bill Lowe

Thanks Per and good morning everyone. I’ll begin our review on slide 3, if you’re following along on the website, which is income statement highlights.

Net sales for the quarter were up 2% to $248.6 million compared to $243.8 million for our first fiscal quarter of 2011, but up 43% over last year’s same quarter of $173.3 million in sales.

Gross margin increased to 28%, up from 25% in the prior quarter. Gross margin improved in all three business groups. Benefits from our restructuring actions taken at the beginning of this year and those that have continued into this quarter have contributed to the results this quarter in our F&E Group. But as we’ve said in prior calls, the majority of the benefits and the work of real equipment is still ahead of us. The current volume level is having a very positive effect on F&E financial results. Actions related to restructuring will continue to bring benefit beyond the impact that volume is creating today.

As also, we previously told you in January of this year, our estimates for the benefit from restructuring excluded benefits of increased volumes and we are now only in month 10 of our restructuring efforts. The previously reported timeline for this effort remains intact and on schedule.

Our SG&A expenses were $25 million, up slightly over last quarter and running about 10.1% of revenue. Our GAAP adjusted net income of $34.9 million or $0.43 per basic share or $0.23 per diluted share for the quarter. This quarter there was very little noise created with restructuring or other special charges or income. Therefore as noted on slide 5, our non-GAAP adjusted net income is $34.3 million, or $0.42 per basic share, $0.22 per diluted share for the quarter, up from $0.28 and $0.15 respectively per share in the quarter ended June 30, 2010.

Turning now to slide six, adjusted EBITDA for the quarter was $53.5 million, up from $45.2 million in the June quarter, and significantly up from a year ago $13.5 million. I think a new significant takeaway from this slide is on an increase of approximately $5 million in revenue over last quarter, our adjusted EBITDA actually increased $8.2 million. We continue to manage both our fixed costs within our facilities and our cost outside of our manufacturing facilities to maximize our bottom line performance, which is clearly demonstrated by these results.

Turning now to the balance sheet on slide 7, our unrestricted cash increased to $117.5 million, up $51.5 million from the $66 million at the end of our June quarter. Cash generated from operations on the cash flow statement for the quarter was $52.5 million and $56.4 million for the year-to-date. Capital expenditures through September 30th were $13.8 million and we expect to spend another $14 million to $21 million for the remainder of the fiscal year, which would bring the total to approximately $28 million to $35 million for the entire fiscal year.

Demands on our cash in the short term are continuing restructuring cost, bond interest this coming month of November and increased CapEx, as I just spelled out for you. Over the longer term, we expect that cash will continue to build. Net working capital was up slightly this quarter to $239.9 million versus $235 million in the prior quarter primarily as a result of higher inventory balance. A significant contributing factor to this is raw material costs are up over the prior quarter as well as exchange rates have had an impact on the dollar versus the euro.

Our receivables and payable remain in check and in fact our DSO days for receivable continued to improve this quarter to 52 days.

As a final comment on the balance sheet, the company did complete and put in place a $50 million revolving credit line with Bank of America during the quarter. We indicated to you in the past it has been our desire to do so to enable various day-to-day treasury transactions to make us more efficient regarding our currency transactions, letters of credit and other transactions when necessary. This line provides the company with additional liquidity in addition to our cash balance and at this day is currently undrawn with a zero balance.

We look forward to a continued great relationship with Bank of America as our banking partner in the future.

Now I’ll turn the call back over to Per.

Per Loof

Thank you, Bill and let’s now take a look at our business results by the three business groups Ceramics, Tantalum and Film and Electrolytics as well as our three regions Americas, Europe and Asia, and I’ll start with Film and Electrolytic business. We saw in the quarter continued increase in demand across all regions in this past quarter. Revenue was $68 million with a gross margin of 12.6%. Revenue declined slightly versus the June quarter primarily related to certain customers that we told you about in our last call that request delivery under the contracts way ahead over original expectations, we put approximately an additional $6 million of revenue in the prior quarter. So when viewing the two quarters together they were very similar except that traditionally we would expect the September quarter to be lower due to the holiday period in Europe, and as I said in my opening comments we didn’t see that.

Demand remained strong and our manufacturing margins continued to improve driven by actions to optimize product pricing, dilution of fixed cost with higher volume as well as our continued focus on mix optimization and overall cost reduction.

The new order rate was very strong in the second quarter, as the book-to-bill ratio stabilized at approximately 1.5 we are at this point fully loaded in all of our F&E facilities. Inventory turners were stable at 6.5 with continued focus on maximizing working capital efficiency. Researching actions continued through our second quarter as additional capacity was relocated to existing low cost sites. This activity will continue in Q3 in parallel with our global focus on improving manufacturing efficiencies.

In our Ceramic business, the second quarter revenue improved by 4.4% over the previous quarter of $56.7 million. Gross margins improved to 34.2% in Q2 as a result of fixed cost diluted with incremental revenue and continued focus on product mix, optimization and manufacturing cost potentials.

Operating income improved to $13.3 million or 23.5% of revenue.

Inventory returns remained strong at 5.4. The book-to-bill ratio for Q2 finished at 4.92 and three points important to make regarding this. First, we did see some softening of the Asian consumer segment. Second, we’re working off a very stable and significant backlog, and third we’re already seeing the booking rate starting to improve again in this quarter. Capacity utilization remained strong at approximately 75% during the second quarter.

In Tantalum, we saw another great quarter where revenue improving to [inaudible] million. This increase is a result of a combination of product mix and volume between our polymer and MnO2 product lines.

All three regions and sectors remained strong particularly Europe followed by the Americans and Asia. Revenue was bolstered primarily by the automotive, industrial wireless and computer segments.

Inventories in our distributor channel globally continues to show improvement putting them in a better position to respond to customer needs.

The book-to-bill ratio finished at around one for the quarter but as with Ceramics, this is due to long lead times and an all-time high backlog.

Our panel plants are at this point fully loaded and as I said the backlog is higher than ever. We are not seeing backlog decreasing even though the book-to-bill has started to moderate and we are shipping all we can build.

As we ship the backlog, we expect book-to-bill to include and we’re already seeing signs of this in the current quarter.

Now let’s take a look at sales on a regional basis starting with Asia Pacific. Revenue for the second quarter was $93 million, down some from the quarter before due to early shipments of products that we have discussed earlier in this call and also talked about at the previous call. But market conditions continued to be strong in industrial, green energy type activities, solar and wind, wireless telecom and infrastructure and power management. Some softening is evident in the consumer market overall as customers continue to be cautious due to economic uncertainties. We’re also seeing distributors taking some inventory corrections, I should say. We may see some softening in the consumer product, including mobile computing that will show sort of a normal seasonality, but in total Asia will experience growth this quarter.

The European market continued to be strong across all segments and business groups. The compiled revenue grew approximately 2.5% compared to the previous quarter. Traditionally you would expect revenue to decline in Europe during the summer months. This revenue growth once again demonstrates the current strength of the European market. We were particularly pleased with the revenue performance from our Film and Electrolytics business group where demand continues to be particularly strong.

Distributors at resale in Q2 remained strong. Inventory in the distributor channel continues to be in balance with market demand. In Europe, Q3 has started very strongly and early indications are that revenue and market demand will continue in a similar manner going forward. The Christmas holiday period may have some effect but at this stage it is really too early to tell.

The Americas region continues to experience healthier growth in Q2 improving end demand as well as some inventory replenishment throughout the supply chain. Growth has been fueled by strong demand from all channels. Sales in Q2 increased by 24% compared to Q1. We closed Q2 with a very strong backlog and we see ASPs continue to firm up. We also expect that demand from the telecom, industrial and automotive segments should remain robust in Q3.

In conclusion, we continue to see strong demand across the businesses. The lower book-to-bill in some of our businesses today primarily due to distribution inventories now being where they need to be and in fact that we’re continuing to see historically long lead times in several of our businesses. As I said, we may see a moderate slowdown in Asia due to slacking demand in the consumer segment but as a counter point, we’re seeing strong demand in the industrial and green segments especially in Asia.

Our current perspective is that the Americas will see some moderation from an extremely strong quarter but Europe will make up the difference. Let’s understand the backlog for many of our businesses are at record levels.

Our strategy to try and balance our business across regions, segments, materials and channels seem to be making some real headway. And also let’s not forget that benefits from the restructuring of our F&E business is yet to fully materialize. From a numbers perspective, we’re not even a third of the way as yet.

The tone of our customer conversations today has changed dramatically and positively during the last several quarters. Our balance sheet has improved greatly. Many customers are experiencing passive component shortages. Demand is increasing in several segments and thus they’re looking to KEMET to expedite deliveries. We’re working hard to meet the needs of our customers and at times we’ve been able to deliver where others could not. We believe that we’ve been able to increase our market share during this period.

In addition, we are more and more convinced that our concept of the one KEMET being the one stop shopping company for capacitor and solutions is beginning to gain attraction.

Looking ahead to Q3, at this point in the quarter, we believe that revenues will be very similar to this past quarter, however, with more upside to this forecast than downside. We may see our margins impacted some by increasing raw material cost but we believe we can mitigate this impact some due to material price clauses in existing contracts.

We do feel that we are well positioned for the future. And even if the downturn in overall use or demand does materialize, although we do not see that at this time, our breakeven point is now lower than ever. We cannot be more pleased with the trends we have seen in our financial results and I would have to recognize the efforts that the global and I mean global KEMET team has made to drive these results. I really sense that we’re now as a KEMET team seeing it all the same [inaudible].

This concludes our prepared remarks and we’ll be very happy to respond to any of your questions.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Hamed Khorsand with BWS Financial.

Hamed Khorsand – BWS Financial

I just want to ask you, as far as taking market share away, is it coming mainly from your Japanese competitors? Who is it coming from?

Per Loof

That’s really hard to tell at this point, but there is ways to measure share and we see it improving in several segments. But we don’t really know who we’re taking it from at this point but we see sharing improving.

Hamed Khorsand – BWS Financial

Okay. Has order visibility changed at all this quarter compared to prior quarter?

Per Loof

You mean in terms of our interpretation of the order patterns we’re seeing or -?

Hamed Khorsand – BWS Financial

Yes.

Per Loof

I think in the last quarter we saw a lot of replenishment activity in our distribution channel and it was kind of hard to see exactly how that will play out once replenishment is clear. So in some sense you can say that that action is now in the main complete, so therefore we would have more visibility. On the other hand, we seem to get conflicting comments from other commentators as to what’s going to happen in the overall economy and that gives us some plus to sort of consider how does this impact us. But as we are looking to our situation right now, we feel as I said that we will have a quarter that is looking kind of what the past quarter looked like, although we would kind of – would have expected this to slow down a little bit but we don’t believe we’re going to see that. And there is always some upside and some downside but we think, as I said that there is little bit more upside than downside in what I just said.

Bill Lowe

I think Hamed what we’ve said in the past, we have pretty good visibility for the quarter that we’re in, and I don’t think that’s changed this number versus a prior quarter, that’s part of your question as well.

Hamed Khorsand – BWS Financial

As far as material costs go, given the demand that you’re seeing from your customer base, can you pass those increases on to your customers or have you?

Per Loof

It varies, of course, but we do have a material price increase passes with several of our customers and in that case those costs can be passed on.

Operator

Your next question comes from the line of Ana Goshko with Bank of America.

Ana Goshko – Bank of America

On the F&E restructuring, I heard you say that it’s on track according to the original timeline you’re about a third of the way there. But wondering if you could, one, just give us some more granularity on how many lines have been shipped, how much production is actually happening already in the new location? And then secondly, I don’t know if you can do this, but if you went backward to kind of where you were in the March quarter, on a revenue perspective in that segment, how much margin improvement would you have had from the actions you’ve actually taken since then?

Per Loof

Let me start and Bill you can chime in as well. In terms of the amount of lines that have been shipped or in process at the moment, it’s a little less than 10 lines that are in play but they are actually on ships, are being installed and so forth. But actually working at the moment is only three lines are actually working as we speak, but 10 are actually on its way. And if you remember it really depends on a little high account but basically 39 lines will eventually be moved and some are being moved in Europe and some will be moved from Europe to either Mexico or to Asia.

So in one sense we are almost less than a third way there and of course, from a numbers perspective even less. So that is as per the original plan that we talked about in previous calls. So we are expecting that benefit to come as these things move in. So the improvement in the business that we are seeing right now is basically from manufacturing efficiency increases in current operations, and from better demand and therefore being able to use the equipment more effectively or our ability to actually increase prices in these segments.

Bill Lowe

I think and also if you recall, we took some actions in the first calendar quarter where we recorded some severance expense for a certain number of employees and those costs were also out of the system. So the fairest plan, I think the two things that I would point to that we’re restructuring related that are benefiting the numbers today would be those salary costs that are not a part of our cost structure today as well as the pricing increases, which is kind of all the same – I believe it’s on the same linear progression that we’ve laid out in January, which was that we did view this as somewhat linear that by the end of this fiscal year that negative six type of contribution on the EBITDA line per quarter would be up to a zero by the time we finish this current fiscal year, and I think that’s about the way it’s progressing.

Per Loof

Yes, no, I think that’s fair and we have seen increasing demand that has been a positive, very positive.

Bill Lowe

And then the demand layered on top of that to get to where their actual contribution lies is the volume is contributing the balance of that benefit to the bottom line.

Per Loof

But in all, the improvement in our F&E business is better than we have projected and quite frankly expected.

Ana Goshko – Bank of America

My second question is about CapEx, I apologize if you had mentioned this. I actually didn’t fully catch it but if you can update us on the CapEx outlook for this fiscal year and potentially the next fiscal year? Given the continued demand, is there a need to spend on additional capacity? Then two, given the bounty of cash you’ve come into, is there the potential to pull forward projects or embark on projects that maybe you were rationing in the prior environment?

Per Loof

Let me comment on the business side and then let Bill Chime in as well here. I mean our CapEx expectations they’ll actually pull

Bill Lowe

Yes, the number…

Per Loof

[Inaudible].

Bill Lowe

It’ll be, call it, between $28 million and $35 million for the fiscal year, we’ve only spent approximately $14 million today.

Per Loof

Which is more than we had planned for and of course the improved performance allows us to pull forward, as you said, some of our investments. And as we look out to the future, we do see a need to increase capacity in some, particularly the specialty segments, and thus we will be looking to pull forward some of the investment as we may see as this we continue to perform well, then we will potentially have a slightly higher CapEx activity in next fiscal year. But it’s really too early to tell, we need to see how this quarter plays out and how the next quarter after that plays out. But if I was just sitting here today and looking out and taking what I can see now into consideration, we see a need to go back and invest some more in our capabilities.

Bill Lowe

Probably going to be in that – we had not set the budget as Per said, but it certainly would probably be in that $30 million to $40 million range versus the range we had set earlier for this fiscal year.

Per Loof

My view is that at this point that more than $40 million is highly unlikely even in the best of circumstances.

Operator

Your next question comes from the line of Michael Ramondo [ph], a Private Investor.

Michael Ramondo – Private Investor

I just wanted to commend you guys on another great quarter. I just had a quick question, Bill on the 30 million shares on the offering, the exercise of those shares, does this make the buyer of these shares the automatic controlling shareholder?

Bill Lowe

No, I mean if you again look at the manner in which that Platinum has indicated their desire to put the shares in the marketplace, which is through an underwritten secondary offering. Typically that effort would end up in the hands of several institutions. I can’t speak to how that will end up because we don’t know how that secondary will go. That would not be the normal outcome in my experience.

Michael Ramondo – Private Investor

Okay. Well, again, great job, and hopefully, we’ll get some analyst coverage to realize our true value, thanks.

Per Loof

I think the substantial secondary offering that Bill spoke about may have a positive effect on that particular topic as well, that I’m sure you know right.

Operator

(Operator Instructions) Your next question comes from the line of Omar Samalot, an independent analyst.

Omar Samalot – Independent Analyst

You thought you’d miss me but I’m still here. What an amazing, amazing, amazing quarter; unbelievable. Great job, guys.

Per Loof

Thank you.

Omar Samalot – Independent Analyst

In terms of the F&E progress, is there a way for you to – when you say one third of the way, is there any way that you can put that in terms of timeframe?

Per Loof

The timeframe is the same. I mean we have said that it’s going to take between 18 and 24 months starting six months ago and that’s still the timeframe. So we go out a year and half from now, we’ll be done.

Bill Lowe

At the end of fiscal ‘12 is when we had said we thought we’d be done originally, we’re on that time schedule and the progression is more or less linear from where we started without the volume benefit.

Omar Samalot – Independent Analyst

What do you plan to do with the excess cash that you’re building? Obviously, a very nice build. Do you plan to pay down some debt? What are your thoughts about that?

Bill Lowe

That’s a good question. But we purposely, I think we’ve said this in our past call, we purposely left $40 million of our converts outstanding, it’s for two reasons. One is very low interest rate, no covenants as well as we would have like to pay down more debt. And so we certainly have the intention and I can assume that we’ll have to deal with that $40 million in November of 2011. So the answer to the first question is yes, we intend to pay down some additional debt in the Fall of next year most likely if not earlier. So that’s where a portion of that will go.

And the balance of that, I’m sure Per has expected that our goal generally with all the things we’re doing here is to continue enhance shareholder value and we’ll look at many ways to do that whether it’s CapEx or whatever other uses we think is the right tap to put that cast towards to create your overvalue.

Per Loof

We did if I may say so, learn how to manage our working capital during the recession and we are still just as focused on doing that right now as we were then. So we want to make sure that we’re not spending anything on things that we don’t need to spend on. Having said that, as I said previously when we spoke to Ana’s questions, we do see a need to pull forward some investments in CapEx because of the market situation and we may aim to do so this year. And if this sentiment continues, we may increase our capital spending the next year as well. But as I said, this $40 million is kind of all up [inaudible].

Omar Samalot – Independent Analyst

Obviously, we’ve all seen how commodity prices have increased. You have so far been able to manage your margins very nicely. I’m wondering in the future how could that affect you guys. Tantalum is increasing, all the metals are increasing. So how do you plan to deal with that?

Per Loof

Well, there are several things. One has to do with investing in technology so we can get more bang for each material pound that we buy. Secondly, we are discussing this with customers who to some degree have an understanding of how this has to work out and are able to include how we deal with material price increases during a contractual period and have the ability to have these conversations as I said. So, we are trying to mitigate that as well as taking a number of other actions to ensure that supply is there and that we can manage the cost increase.

Having said that, I indicated that we are seeing some increases in material and that may have some effect this quarter and going forward. And all we need to do is to find ways to mitigate that either through pricing actions or being just more efficient in handling the material. As we improve our yields that will have a major effect as we improve our ability to handle the scrap, that will also have an impact particularly on the Tantalum side. But we have to realize and I think everybody understands that there is a, with the increased demand pricing of raw materials across the globe and just about any area is on an upward trend.

Omar Samalot – Independent Analyst

Okay, and obviously, I know that managing inventory has been job number one for you guys there since last year and I’m noticing increased inventory balances. I’m sure it’s because of the sales that you see coming down the pipe. But I just want to make sure you guys are not losing focus on your inventory, etc., etc.

Bill Lowe

Not at all.

Per Loof

No worries.

Bill Lowe

Don’t concern yourself with that. Our returns are still good but our target is still better than what you see today. So we’re very, as Per said in his remarks earlier, we remain very focused on working capital.

Per Loof

But we have taken some action particularly in raw materials side to mitigate some of the coming increases in material costs that we have foreseen.

Bill Lowe

But they are relatively small.

Omar Samalot – Independent Analyst

What was that asset sale? I know it wasn’t a big amount.

Bill Lowe

There was a sale of a vacant facility that we had here in South Carolina that we sold during the quarter.

Omar Samalot – Independent Analyst

Okay, I know which one it is. Okay, thank you, guys. Great job, great quarter.

Operator

There are no further questions at this time.

Per Loof

Well, I appreciate everybody being on the call. I appreciate the interest and the support of our company. We obviously are happy with the results we saw this quarter and we believe that the strategy that we have laid out is working. I think the one KEMET capacitance solutions company actually works and we’re looking forward to the opportunities and the challenges in the near and the long term. Again, thank you very much and have a very, very good.

Bill Lowe

Thank you.

Operator

This does conclude today’s conference call. You may now disconnect.

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Source: KEMET CEO Discusses F2Q2011 Results – Earnings Call Transcript
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