Good morning. My name is Shirley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Year-End 2013 Earnings 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. Mr. Bruce Hoechner, President and CEO, you may begin your conference sir.

Thank you, Shirley. Good morning everyone. Thanks for joining us. The slides for today’s call can be found on the Investors section of our website along with the news release that was issued this morning. With me today are Dennis Loughran, Vice President, Finance and Chief Financial Officer; and Bob Daigle, Senior Vice President and Chief Technology Officer. I will now turn it over to Dennis to dispense with the formalities. Dennis?

Thank you, Bruce. I would like to point out to all our listeners that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in Rogers’ operations and environment. These uncertainties include economic conditions, market demands, and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement. Also, the discussions during this conference call will include certain financial measures that were not prepared in accordance with Generally Accepted Accounting Principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the slide deck for today’s call that can be found on our website’s Investors section. I will now turn it back over to Bruce.

Thanks Dennis. I am pleased to share with you today Rogers’ fourth quarter results. Our transformational initiatives which began about two years ago are clearly delivering meaningful outcomes. Our strong focus on technology innovations to benefit our customers as well as our emphasis on operational performance and cost management has helped us build what we believe is a sustainable advantage. We finished the year well with fourth quarter revenues of $136.2 million, an increase of 9.7% over Q4 2012 which exceeded our guidance. For the full year of 2013, Rogers’ revenues were $537.5 million, up 7.8% versus 2012 full year results. Globally, we benefited from improving market conditions, propelled by growing demand for clean energy, internet connectivity and safety and protection applications. Higher sales combined with rigorous cost management discipline enabled us to complete the fourth quarter ahead of earnings guidance as well. Earnings per share for the quarter were up 40% net of special charges, compared to Q4 of 2012. Overall, it was another very good quarter for Rogers. We are pleased and encouraged by our ability to execute well on our strategies which enabled us to deliver strong results. Moving to slide four, you will find an overview of fourth quarter revenue performance by markets. For the quarter, 61% of our sales fell into our strategic megatrend categories as our focus on solving material challenges in support of global megatrends continues to drive our growth. In Clean Technology category, sales were up 40% over Q4 of 2012 with growth across all major segments including power modules for variable frequency motor drives, hybrid electric vehicles and solar applications. In support of the growing global demand for Internet connectivity, we achieved 11% growth in revenues for the category. The market for 4G LTE base station deployment continues to be very…

Thank you, Bruce, and good morning again to everyone. As reported in the press release, we achieved earnings from continuing operations of $0.64 per diluted share, which includes a net special charge of $0.17 per diluted share. The special charge was related to year-end valuation impairment of an investment made in 2009 in a start-up company engaged primarily in the production of lithium battery powered security applications for credit cards. The impairment reduced the carrying value of the investment from $5.1 million, down to $500,000 and was the result of the pricing of a fourth quarter 2013 equity funding event by the company to raise additional needed cash. Excluding that non-cash one-time event, you can see from our results that our underlying non-GAAP performance exceeded expectations for both sales and earnings per share. Our non-GAAP result of $0.81 per diluted share, put us $0.01 per share above the high end of our Q4 2013 guidance, while sales for the quarter came in at $136.2 million, to slightly above the high end of our guided range of $135 million. The combination of stronger sales and better than anticipated manufacturing performance produced better than expected gross margins at 37.3%. Higher commercial expenses, primarily related to increased year-end accruals for incentive compensation and other accruals offset gains in manufacturing margins. However, we were still able to deliver a quarter with a non-GAAP operating profit as a percent of sales at 11.7%. That performance is a 120 basis points higher than the fourth quarter of 2012 and represents the second best performance in the last eight quarters since we started our profit improvement efforts in 2012 and second only to our recent third quarter results which achieved 14.4% on a $7 million higher than sales with more normalized level of commercial expenses. We believe…

This concludes our prepared remarks and we will now open the call up for questions.

(Operator instructions) Our first question comes from the line of Daniel Moore from CJS Securities. Your line is open. Daniel Moore – CJS Securities: Good morning. Thanks for taking the questions.

Hi, Dan. Daniel Moore – CJS Securities: You made significant inroads obviously in electric, in hybrid electric vehicles in North America. Talk a little bit about the opportunity in China. How are some of the potential environmental concerns shaping the market opportunity and maybe you describe your competitive position there?

Great, well, it’s a great question. We are very pleased with – as you mentioned inroads with North America with one of the large EV producers and they continue to grow. But in Chinas as well, one of the things that we are seeing is the impact of the air pollution and the government now setting some targets for EV, HEV automobile licensing. And, so we will be seeing that, particularly in places like Beijing, Shanghai, where they are targeting somewhere around 30% of the new licenses by 2016 to be EV, HEV automobiles. So, where we are participating in that is with the automotive manufacturers actually based in China, but other locations as well, but primarily in China and we are seeing a lot of new developments there that we are linked to. So, that’s been a very good opportunity for us and that demand for clean energy in China is carrying on – even beyond the HEV, EV area and it’s going into solar, we saw quite an uptick in demand for our products going into solar energy in Q4 and we anticipate even more going forward. The Chinese government has announced another six gigawatt quota for solar power in the next couple of years. So that’s also good news for us. Daniel Moore – CJS Securities: Great and on the – not the other end of the spectrum, but maybe talk a little bit about high-performance foams, little lighter than we had expected, given all the cross currents of different trends, do you expect to be able to return to positive growth in 2014 in that segment?

So, over the last couple of calls – earnings calls, we’ve talked about the changes in the market, particularly in MID and particularly in the tablet market, and we believe that things have settled in a sense as the designs have changed and also some of the supply chain efficiencies have been starting to be built in moving forward. But, as it relates to design changes, we are working very closely with the OEMs introducing new products like the foam tapes that are being now evaluated for those new designs. So we’ll see how we move during the year, specifically around the tablets, but on a more broader basis, we continue to be very energized by the growth in the impact sporting goods protection impact apparel, industrial apparels, shoe protection and safety shoe protection and so on. It’s double-digit growth that continues for us. And we also have 50% of that business are industrial applications and we continue to see strong growth there for Rogers across many different markets. So that business, we think will certainly – during 2014 stabilize and as we see some of these new applications coming in we are very encouraged by that. Daniel Moore – CJS Securities: Okay and lastly and then I’ll jump back in queue, maybe talk about the practical operational changes being made in streamlining Curamik with power distribution businesses now and what are some of the tangible benefits you have to achieve?

Well, part of that streamlining is really from a customer perspective. Our ability to offer a full range of power control capabilities from the direct bonded copper to the bus bars and so we are seeing some synergies in that as we work together with customers on their designs. But, also from a management streamlining perspective, we’ve organized ourselves under one global leader for that and also down through the organization. So, R&D, manufacturing all consolidated. We continue to share learnings across the different parts of the company of those parts that the bus bars and the direct bonding copper parts and those learning’s are helping us really improve things like throughputs, reducing scrap rates and so forth. So, that’s enabled us to really help, I would say our efficiencies as we move forward. Daniel Moore – CJS Securities: It sounds like not the larger step function improvements that we’ve seen obviously in terms of streamlining over the last 18 months?

Well, one of the big things that we did with the Curamik product line was to move final inspection to Hungary and we continue to evaluate our opportunities there and evaluate opportunities to really boost efficiencies in that product line. Daniel Moore – CJS Securities: Great.

This is Dennis, I would comment, because what you inferred was the Herculean efforts over the last two years that came with them big restructuring costs and severances of things, but the operations are definitely on an ongoing basis making tremendous strides in yield improvement, throughput efficiencies, utilization of equipment, scrap improvements that are impacting our bottom-line every day, but in that normal operational mode, that doesn’t require the things we had to do in the first two years to accelerate that growth in the range. Daniel Moore – CJS Securities: That’s helpful. I’ll jump back in queue. Thanks.

Thanks, Dan.

(Operator Instructions) Our next question comes from the line of Avinash Kant. Your line is open.

Hello, Avinash. Avinash Kant – D.A. Davidson & Co.: So, one or two questions. The first one was that, could you give us some color in terms of the revenue guidance that you are giving in Q1; it looks like it’s up sequentially and could you give us some color in terms of which segments are going to be seeing growth in Q1 compared to Q4 and relatively?

So, Avinash, first, our PCM business continues to see strength. We talked a little bit earlier in the prepared remarks around the growth that we are seeing in China. But we are also seeing PCM growth in places like North America where Verizon continues to expand their footprint and particularly in the urban areas where there has been some bandwidth issues. So we continue to see investment there. So quarter-over-quarter we should see an uptick. On the Power Electronics Solution side of the business, again, we are looking at a Q1, where we will see some strength, the variable speed motor drive recovery as we see investments continuing to move forward. And then also in clean tech, clean energy; on solar and even smart grids we are seeing that growth. Avinash Kant – D.A. Davidson & Co.: Okay, and you talked a little bit about, of course weakness coming from the pad, could you give us some idea what percentage of your high-performance foams come from the tablets and everything and then how much is coming from the cushioning applications, if you could?

So, the way we look at it and we categorize, I would say, the mobile internet device as a grouping, that’s about 30% or so of our revenue. So full 50% is coming from the industrial side of the business that we talked about and lesser percentage probably around 10% or 15% is coming from the impact apparels, sporting goods and so forth. But what I will say about that segment is, that segment is growing in the range of 15% to 20% to 25% depending on how we look at it year-on-year. So, that’s – as I look at that and I think about where Rogers is headed towards in the future, that area is one that’s very exciting for us. Avinash Kant – D.A. Davidson & Co.: Okay, and also quickly on the tax rate, you said the tax rate in Q4 was 9.3%?

Correct. Avinash Kant – D.A. Davidson & Co.: Now, Dennis, I think in the guidance, when you gave in Q3, you have talked about 16.6%. So, what would have been the differential in EPS at that tax rate which 9.3%?

Just – I believe you calculate the numbers about $0.06, so we would be just above the midpoint of the range without that tax impact, but we also had impacts up in the operating statement about $3 million of extra incentives and the year-end accruals of about $800,000, Avinash. So, we are non-continuous in nature. So when you back-off the fourth quarter to a target rate of incentive of about $1.5 million a quarter, that would have more than offset the tax rate benefit and we probably would have ended up above the high end of the guidance range on a sort of an adjusted level – commercial expense level of tax rate to the guidance basis. Avinash Kant – D.A. Davidson & Co.: Okay, so, for the next quarter though in the guidance, you are talking, where should we think of SG&A line, because that seems to be the biggest variable you gave us the gross margin anyway and that you gave R&D, where should that come out?

We believe about $26 million - $25.5 million to $26 million a quarter is where we are at. Avinash Kant – D.A. Davidson & Co.: Perfect, thank you so much.

Thank you.

Thanks, Avinash.

Our next question comes from the line of Daniel Moore from CJS Securities. Your line is open. Daniel Moore – CJS Securities: Following up on Avinash’s question, just in terms of the tax rate, you are looking at a 28% tax rate for next year, I think, Dennis, you had mentioned in the last call, 25% to 28%, is something changing materially in the business? Or are you just being a little bit conservative as we look out to 2014?

We’ll always try to do the latter there, but 25% to 28%, you know discrete items that we can’t reflect in the rates, so we tend to try toward the high-end in terms of our initial guidance for the year and it really takes all the way to look late third quarter, fourth quarter to get it to a nice blended rate. The 28% is maybe a conservative look at 2014. Daniel Moore – CJS Securities: Got it, so nothing different in that as you’ve reflected in the past.

There are so many different jurisdictions and since the weighted average. Daniel Moore – CJS Securities: And then one last one, Bruce, $114 million in net cash, what you are going to do with all that cash in 2014?

Well, we continue – we have a very active effort right now looking at opportunities for technology licensing acquisitions and so forth. And so, those things come as they do sometimes you can’t force it, but we are very, very active right now. Daniel Moore – CJS Securities: Could you characterize it as more active and optimistic than at this time last year or things been relatively the same?

Yes – no, no, I would say, we are more active and more optimistic. Daniel Moore – CJS Securities: Okay, thank you very much.

John Reilly – ACK Assets: John Reilly.

Good morning.

Hi, John. John Reilly – ACK Assets: Good morning. How are you?

Great. John Reilly – ACK Assets: Dan beat me to the punch, the balance sheet obviously has gotten tremendously strong since you’ve come here Bruce, when would you think about multiple approaches in return to shareholders in addition to M&A obviously being number one and we can get high returns for that. Have you thought about is the Board thinking about other returns to shareholders?

This conversation is an ongoing one with the Board looking what options are in terms of stock buyback, in terms of dividends. We, right now, are believing that our best option is investing in the company itself and looking at investments in acquisitions as well. But again, we are in the midst of those conversations with the Board. John Reilly – ACK Assets: Now that’s great, high-class problems to have. And then just, a follow-up obviously, as the incrementals being so high and you are guiding for the incrementals to be in excess of 70% again for Q1, how much of that is mix and how much of that is really structural? I know you are not changing your long-term thinking about it in the 50% range, but how much of it is product mix? How much of it is structural and can we think about higher incrementals going forward?

I’ll tell you, I don’t know if you could look for too much higher incremental profitability to 74%. John Reilly – ACK Assets: No, I’ll take that, I am going, is what I meant.

So, I think, part of it is structurally – we told folks at the beginning of last year that we had an 18 to 24 month runway of filling up capacity, so that I believe over the next year or so, you will see nice above 50% contributions on bringing volume into our facilities. We start adding capacity in 2015, so next year, I wouldn’t expect higher year-over-year contributions like that because there will be some negative, but it will still be nice. But this is a robust year for contribution level of bringing volume into the system. John Reilly – ACK Assets: Got it and then just that also focusing on the incentive comp as we go forward, is that a normalized and now where we are looking at a more normalized rate based upon your guidance for Q1? Are you accruing at a normal rate going forward?

We had a situation in 2013 of much heavier towards year end and because profitability improved throughout the year and we are looking at basically normalized average quarterly rate – I think in the $1.7 million range at an average basis per quarter. John Reilly – ACK Assets: That’s great. Congratulations on the good numbers. Thanks guys.

Thanks a lot John.

There are no further questions in queue at this time. I will turn the call back over to Mr. Hoechner.

Great, thank you, Shirley. Well, in closing, let me summarize a few highlights of our call, first, we delivered strong revenue growth for the quarter and for 2013 overall. We finished the year with record results for printed circuit materials and robust growth in Power Electronics Solutions. The recovery in clean energy and global demand for internet connectivity drove much of that growth and market indications going forward are positive. Secondly, we continued to improve our margins as we reap the benefits of operational excellence and organizational improvements that began in 2012. Lastly, we are investing in our capabilities to continue to increase our value to shareholders utilizing an outside in approach to gain greater knowledge about our customers, markets and technology is helping us identify new opportunities. This approach extends to many other areas of the company as well, but we are using external benchmarks to evaluate and improve our performance. These efforts are paying off for our shareholders as we have delivered double-digit earnings growth over the past three quarters. The positive indicators from our key markets lead us to expect healthy demand for our products in the years ahead and we believe we are well positioned for future success. Thanks a lot for joining us on the call today. Have a great day.

This concludes today’s conference call. You may now disconnect.