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Methode Electronics' (MEI) CEO Donald Duda on Q3 2018 Results - Earnings Call Transcript

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Methode Electronics, Inc. (NYSE:MEI) Q3 2018 Earnings Conference Call March 1, 2018 11:00 AM ET


Donald Duda - President, CEO & Director

John Hrudicka - CFO & VP of Corporate Finance


Joseph Vruwink - Robert W. Baird & Co.

Christopher Van Horn - B. Riley FBR, Inc.


Welcome to the Methode Electronics Fiscal Year 2018 Third Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded.

This conference call does contain forward-looking statements, which reflects management's expectations regarding future events and operating performance, and speak only as of the date hereof. These forward-looking statements are subject to a safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode's expectations on a quarterly basis or otherwise.

Forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that cause these actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation, the following, dependence on a small number of large customers, including two large automotive customers; dependence on the automotive, appliance, computer and communication industries; investment in programs prior to the recognition of revenue; ability to successfully market and sell Dabir Surfaces; significant adjustments to expense based on the probability of meeting certain performance levels and our long-term incentive plan; timing, quality and cost of new program launches; ability to withstand price pressure, including pricing reductions; success of Pacific Insight and Procoplast, and our ability to implement and profit from new applications of the acquired technology; recognition of goodwill impairment charges; customary risks related to conducting global operations; currency fluctuations; the effect of any material modifications to NAFTA and other international trade agreements; ability to withstand business interruptions; dependence on our supply chain; income tax rate fluctuations; breach

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