Good morning, and welcome to the Vishay Intertechnology Third Quarter 2011 Earnings Call. My name is Melissa [ph], and I will be your conference moderator today. (Operator instructions). Thank you, I will now turn the call over to Peter Henrici, Senior Vice President, Corporate Communications. You may begin.

Thank you Melissa [ph]. Good morning and welcome to Vishay Intertechnology’s Third Quarter 2011 Conference Call. With me today are Dr. Gerald Paul, Vishay’s President and Chief Executive Officer, and Lori Lipcaman, our Executive Vice President and Chief Financial Officer. As usual, we’ll start today’s call with the CFO who will review our third quarter financial results. Dr. Gerald Paul, will then give an overview of our business and discuss operational performance as well as segment results in more detail. Finally, we’ll reserve time for questions and answers. This call is being webcast from the investor relations section of our website at ir.vishay.com. A replay for this call will be publicly available for approximately 30 days. You should be aware that in today’s conference call, we will be making certain forward-looking statements that discuss future events and performance. These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For discussion of factors that could cause results to differ, please see today’s press release and Vishay’s from 10-K and form 10-Q filings with the Securities and Exchange Commission. In addition, during this call, we may refer to adjusted, or other financial measures that are not prepared according to generally accepted accounting principles. We use non-GAAP measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures that we also provide. This morning, we filed the form 8-K that outlines the various variables that impact the diluted earnings per share computation. We expect to file our form 10-Q for the third quarter this evening. On the investor relation section of our website, you can find a presentation of the Q3, 2011 financial information containing some of the operational metrics Dr. Paul will be discussing, as well as a presentation on Vishay’s growth plan. Now, I turn the discussion over to Chief Financial Officer, Lori Lipcaman.

Thank you, Peter. Good morning everyone. I’m sure that most of you have had the chance to review our earning’s preface, as you have seen, revenues were significantly down, quarter-over-quarter, but in line with our revised guidance. Margins for the quarter reflected primarily the lower volume, but also higher metal prices and an inventory reduction. I will focus on some highlights and key metrics. In the third quarter, we amended our credit agreement to permit up to $300 million of share repurchases. We are now well-positioned for quick execution should the board authorize another share repurchase. The cost was 5 basis points. Details are available in our 8K filed September 9, 2011. We also completed the acquisition of the registered businesses of Huntington Electric. The purchase price for these businesses was approximately $19 million objective customary post closing assessment. This new acquisition is well into our recently announced growth plan. Dr. Paul would elaborate further in his discussion of the register segment. We expect to pay back of less then eight years. Cash from operations for year-to-date September came in at $288 million. Capital expenditures were 90 million and proceeds from the sales of property and equipment were $2 million using a free cash generation of $200 million for the nine months. Backlog at the end of quarter three was 655 million worth 3.1 month of sales. Looking at the PNL, revenues for the quarter were $638 million, down by 10.2% versus prior quarter and down by 8.2% compared to prior year. Gross margin was 26.3%, operating margin was 11.8%, adjusted operating margin was 12.1%, EPS was $0.31, and our adjusted EPS was $0.32. I’d like to walkthrough our unusual items. Our adjusted operating margin excludes a pretext charge of $1.9 million related to cost incurred upon the resignation of…

Thank you Lori and good morning everybody. In quarter three, we see like the entire industry has been surprised by a sudden downturn of demand. Vishay has affected manufacturing capacities, quickly as you’ve heard. We didn’t build any inventories, actually, we reduced inventories. We have achieved a gross margin of 26% of sales and adjusted operating margin of 12% of sales and adjusted earnings per share of $0.32. We continued to generate free cash in a healthy way. Year-to-date, we have generated 200 million. A present low order rates on the other hand, in particular from this distribution, indicate a softer third quarter. Then we talk about the economic environment next. We already had started into the third quarter with widely normalized lead times and sufficient inventory in the supply chain. During the quarter, the economy softened further but consumer products mainly computers, affecting predominantly our Asian business. On the other hand, also some macro economic concerns seemingly started to influence business decisions in many markets. In particular, distribution stepped on the brakes. Industrial remained generally stable, seeing some softening towards quarter end. The economy in automotive remains good, vehicle sales and orders continued strong. The inventory field of distribution has continued in the third quarter but at a reduced rate. Inventories of distribution came up by 5% but in September, inventories of distribution started to drop. The US in third quarter was 8% down quarter-over-quarter, contributing of cost to lower inventory trends of distribution. We see 3.3 turns right after 3.9 in the second quarter, 2.4 in the Americans versus 2.6 in the second quarter. 3.7 in Europe versus 4.7 in the second quarter, which was a high number and 4.1 in Asia vis-à-vis 4.8 in the second quarter. Let me refer to Vishay’s business development in the third…

Thank you, Dr. Paul. We will now open the call to questions. Melissa [ph] please take the first question.

(Operator instructions). Your first question comes from Matt Sheerin with Stifel Nicolaus. Matt Sheerin – Stifel Nicolaus: Yes, thank you. Just a couple of questions. Dr. Paul, do you have any sense of whether or not the book in trends here which obviously are weak to book-to-bill as weak as it’s spending a couple of years, is your sense that bookings are starting to bottom out here, and do you get a sense that revenues could bottom out here or could it take another quarter into the March quarter for this correction to play out?

Well Matt, what we have seen is a kind of a turn around since the beginning of October so orders in absolute numbers come back and get stronger which also means something of course for book-to-bill ration. Really, September, my appreciation was a low point. Future will tell of course, but as we see a continued trend, still relatively weak order rates, but definitely better than they were in September. So which degree this will continue to be? Hard to say. But I think personally, that unless the world economy offers another surprise, the worst may be over. Matt Sheerin – Stifel Nicolaus: Okay. And in terms of the pricing environment, it looks like it’s starting to crack a little bit, but your gross margin guidance seems to be predicated mostly on volumes and even when we talk about pricing, is your sense that pricing will sort of be where it is now because orders are soft, and then perhaps more pricing pressure when volumes come back and when orders start to come back? Is that how you see it playing out?

Matt, let me emphasize once more, it all relates only to our active business. I’ve said it before, on the past, except a few exceptions, we normally see and you will remember that very well constant prices, even in downturns. So because we are such a high share of specialty product. On the actives, clearly, the situation has normalized, and at the beginning of such a change, it overshoots a little. So I would expect that we already in the midst of very normal price decline. But we in the past were able to cope with it. So I am not – that we would be able to do it going forward. We also see of course by nature that some material cost come down, there is cost reduction effort, but as we – directly speaking, yes, we are – with normal development concerning prices in actives. Matt Sheerin – Stifel Nicolaus: Okay, and just lastly on your current production levels, I know you’re working to bring inventory down. So do you plan to bring production level s down in both businesses in Q4?

We always adapt to the need. Vishay as you know is quite proud to be a relatively – I would say a very reliable supplier of free cash, the major element of that, is of course, not to let inventory to get out of hand. And we have demonstrated that in the past, we will adapt our levels. And honestly, we are relatively experienced than that, and this is what we do at the moment. But what I try to say before is – my ambition is, not to lose, strain, workforce, so we will use all other tools which we have like short working pass, so Euro like plant shutdowns, et cetera, just to adapt the volume of production, but not really inventory, in fact reducing inventory further, but not lose the workforce. Matt Sheerin – Stifel Nicolaus: Okay, thank you Dr. Paul.

Your next question come from Joe Whiney [ph]. Joe Flaningvil – Longbow Research: Hi good morning, it’s Joe Flanningvil [ph] on the line for Shawn Harrison. First question, I think you kind of alluded to, you said the MOSFET’s book-to-bill has improved here in October, can you get a little bit more specific in what kind of book-to-bills you saw throughout the month of October and by ...

I want to be that precise, but you know, in the quarter, it was 0.5. Let me highlight it substantially better than that. But still not on the level we would like to see as you mentioned, but substantially better especially on the MOSFET. Joe Flaningvil – Longbow Research: Okay, and then maybe secondly here, you mentioned the automotive market holding about – there’s a lot of questions about global production slowing down a little bit here with issues in the supply chain. Are you seeing any incremental slowdown on the fourth quarter, or do you expect, you know, that to tapper off? It’s been an area of strength throughout the third quarter.

The moment we see – I’m talking mainly Europe I must admit but at the moment, people are really extremely optimistic in that. What we have seen in automotive maybe here and there, is some accumulation of inventories in the pipeline which needs a correction but this correction is underway but for my standpoint, the standpoint of this in production there is no slowdown as they say as they indicate as a longer trend or the mid-term trend so they are – they are continued to be confident on it. Joe Flaningvil – Longbow Research: Okay. Thank you.

Your next question comes from Steve Smigie. Steve Smigie – Raymond James: Great. Thanks for taking time to answering questions. I don’t think your results and guidance are all that different from your comparable companies. So my question is more about what things look like as we come out of this? They look less cycle coming 2008 maybe a little bit different drivers but you had two quarters there where you grew 15 or I guess it’s 14% sequentially in 3Q and then 15% sequential the following quarter which does not necessarily square with your seasonality in those periods. So, as we come out of this, do you think the recovery would take place fairly dramatically like it did last time? Meaning is this is just mostly inventory correction but looking at distribution it seems like that could be the factor, and if it is going to be that dramatic, again, is it more related just to returning to in-demand versus any real seasonal impact probably?

I maybe an old man but I have no crystal ball. Let me say the following, I suspect that this time it’s heavily inventory-driven this time. Last time we know what has happened but this time, it appears to be more likely that’s inventory-driven which means in deed as you said that there’s no inventory that last forever. That means there should be a recovery, a relatively quick recovery, relative if I’m right. But, you know, our politicians do the best currently to destabilize the world as we know. Steve Smigie – Raymond James: Right. Actually on that point, since you are over there in Germany is just sort of chase your car on recent development with the steel and specifically stuff today and just feeling and the mood there in Germany.

Excuse me, sorry, I didn’t catch up with Germany, sorry. Steve Smigie – Raymond James: Yes, just your feeling and the mood in Germany about the whole bank go up and how that would affect your business?

Okay. Germany is not the most important part of the world but the economy continues very strong here as you know. I mean, all segments with – we are close to full employment for our situation. But, of course, there is concern there. You know the situations in Southern Europe and people get kind of angry in a way in my country at least, but this is not so specific for electronic. But overall, the industrial production in Germany runs high. But we know if the world does badly then German will not be an island, that’s also true. Steve Smigie – Raymond James: Okay. Just – there’s been lots of questions going around about Thailand that there’s been some comments I think from it’s capacitor, tantalum capacitor players over there that’s got some exposure in tile industries if you could give us some color on how impact as you may – with what’s happening in Thailand.

I would not overestimate its impact but it’s to what you indicate. We do have some additional business because of the situation. And I think they’re not the only ones in the west that have additional business these days but I would not bill any forecast of any confidence on their product. Steve Smigie – Raymond James: Okay. Last question was just with regard to gross margin, I think you indicated it will be down sequentially here mostly volume-related. Can you in some sense the magnitude with a couple hundred basis points to be unreasonable to think about?

Look our variable margin is between 45% and 47% so you see our sales bound and you can definitely calculate that. Steve Smigie – Raymond James: Okay. Thank you.

Thank you.

Your next question comes from Jim Suva. Jim Suva – Citigroup: Thank you very much. Can you give a little bit more details you’d mention about the cancellations in Asia? Are those primarily like on the consumer side, handset side, T.V. side and some of the end-market cancellations that you’re seeing?

First of all, most of them come from distribution in our case which through a degree seem to be expected this because we knew all along that, of course, they had to hide the order rate before out of many reasons was high and we expected some correction. Anyway, and I think I said this before a few times. And so, it happened, but it happened immediately more abrupt seems to be typical for our industry more abrupt than we thought. And mainly it comes from distribution in our case but effectively this is indirectly consumer. This is consumer-driven I believe. Jim Suva – Citigroup: And any end markets consumer through distribution that you’re seeing?

The computers relatively weak these days, relatively weak. Jim Suva – Citigroup: Okay.

Hand phones, not the smartphones, regular phones are weak. I think this has much to do with overstocking everywhere but okay, in this case maybe the end sales has suffered already, the end market sales. Jim Suva – Citigroup: And then my follow-up is, as we look at tantalum pricing typically if my memory is correct, it’s this time of year when the tantalum powder company start looking at contracting pricing for the future year out, is that the case now? And what type of pricing are we looking at for 2012 versus 2011? Because I believe 2011 was up pretty sharp versus 2010. What type of price of tantalum should we be considering for your cost of good sold increase and are you back in the market or you have to have quite a bit of inventory you’re still having – that you can go through?

We did not believe in the shortages since a long time. We never believe the story with the shortage and therefore we don’t have so much inventory as well and this is not the environment for substantial price increases in tantalum powder, I would say. Jim Suva – Citigroup: Thank you very much to you and your team.

Thank you.

Your next question comes from Shawn Harrison. Shawn Harrison – Longbow Research: Hi, good morning. Just a few brief follow-ups. Hopefully, I’m not re-asking these but the commentary at point of sale being down by 8% sequentially for the third quarter. With October coming back, are you seeing, I guess, that increase. Did it increase sequentially, the point of sale for the month of October?

I have reliable information this case for a quarter, so I would rather not comment on a month on POS but obviously as quarters have come back to a degree, I would say the POS for sure will not have come down further, I think. It is what I would hope through from that. Shawn Harrison – Longbow Research: Okay and I guess within that comment, your view on the inventory that we will essentially pass, I guess the deepest part of this throughout, exiting the calendar year and we should be, I guess, close to parity as we come into 2012.

Maybe a little longer. Maybe this takes a little longer than that. It all depends, obviously, on the POS which is the adamant economy in a way but I would say, if you ask me, I think the quarter for sure as we also guide to, this triggers our guidance will be impacted by inventory reduction and distribution, I would suspect you will see something also feeling quarter one. Shawn Harrison – Longbow Research: Okay. And then I guess within the MOSFET business as well, you just briefly talked about continued or weakness within regular phones as well as notebook PCs. I know a big driver of that businesses, those two end markets. Does that, after we get through this inventory correction mean that you may not see a bounce back within that business just because the demand for those products isn’t as strong as it has been?

Why not? I think as soon as things are normal then why should this not be or go back to normal? But what we count on is a better participation, the high voltage MOSFETs where Vishay historically hasn't been really and now we will have probably see a light at the end of the tunnel in a way, we see product which can compete with everybody. And we are going to start manufacturing them next year, beginning of next year, in large quantities. So I see, for MOSFET, should return to normal conditions. Why not? There’s no (inaudible) in that sense, end of this, either the implications nor of the product. But I see an additional change for us. Entering this high voltage market which we really haven’t been there, only a little. Shawn Harrison – Longbow Research: Very, very helpful and the final question, you guys did a very good job of controlling operating expenses this quarter. In case I missed it, where are they expected to go on a dollar basis for the fourth calendar quarter?

They approximately where we are, maybe 191-192 something like that. Depends, of course, on the exchange rate also. Shawn Harrison – Longbow Research: Thanks so much.

Thank you.

Again, if you would like to ask a question, press star one. There are no further questions; I will now turn the call back over to Mr. Henrici.

This terminates our quarter three conference call. Thank you for your interest in Vishay Intertechnology.