Good morning and welcome to the Vishay Intertechnology First Quarter Earnings Call. My name is Melissa and I will be your conference moderator today. (Operator Instructions) After the speakers’ remarks, there will be a question-and-answer session. I will now turn the call over to Peter Henrici, Senior Vice President, Corporate Communications. You may begin.

Thank you, Melissa. 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 first 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 Relation section of our website at ir.vishay.com. The 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 a discussion of factors that could cause results to differ, please see today’s press release and Vishay’s Form 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 a 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 first quarter this evening. On the Investor Relation section of our website, you can find a presentation of the Q1, 2012 financial information containing some of the operational metrics Dr. Paul will be discussing. Johan Vandoorn, our Executive Vice President and Chief Technical Officer will be presenting on Wednesday May 16, at the J.P. Morgan Global Technology, Media and Telecom Conference in Boston. Now I turn the discussion over to Chief Financial Officer, Lori Lipcaman.

Thank you Peter and good morning everyone. I’m sure that most of you have had a chance to review our earnings press release; I’ll focus on some highlights and key metrics. As you’ve seen our adjusted EPS was $0.21 represents a $0.06 quarter-over-quarter increase despite the lower level of revenues. This is primarily due to the temporary cost reduction measures we implemented during the quarter and also to manufacturing efficiencies. This evidenced our ability to act quickly to changing economic environments with our products. The HiRel acquisition was accretive as expected; we expect HiRel’s sales growth to outperform our corporate average. This is our second acquisition following Huntington Electric, which was acquired in quarter three of last year and also fits well into our strategy of acquiring specialty products businesses. After the quarter ended, we capitalized on our strong financial position to expand the borrowing capacity on our credit facility. These new incremental revolving commitments allows additional flexibility to pursue our growth plan, and we now have borrowing capacity in excess of $500 million. Looking at the P&L; revenues in the quarter were $539 million, which were down by 2.3% from the previous quarter and down by 22.5% compared to the prior year. Our gross margin was 25.4% and our operating margin was 9.3%. Our quarterly EPS was $0.21. We recorded no unusual items in quarter one. At this point, I will provide some information on the reconciliations. Looking at our operating income for the first quarter of 2012, compared to operating income for the prior quarter based on $13 million lower sales or $8 million lower excluding exchange rate impacts, the operating income increased by $16 million from $34 million in quarter four 2011 to $50 million in quarter one 2012. The main elements were average selling prices, which…

Thank you, Lori, and good morning, everybody. The first quarter represented a promising start into 2012. We have seen a very substantial recovery of orders in combination with declining inventories in the pipeline. Vishay achieved quite satisfactory results due to fixed cost reduction and good efficiencies despite still no sales. We reached like Lori said gross margin of 25% of sales, operating margin of 9% of sales and earnings per share of $0.21 and generated $9 million of free cash. We are confident for the second quarter and for the year. Let me talk now about the economic environment. After a substantial slowdown in the second half of 2011, the business climate improved progressively through the quarter. obviously, the second half slowdown of orders was highly related to inventory build up in the pipeline during the first eight months of 2011. We have seen reducing inventory levels of distributors worldwide. Returning confidence in the United States affected most market segments there, in particular, industrial and computing. There’s continued strength of automotive and industrial segments in Europe, there’s unbroken optimism especially in Central Europe. European automotive customers like Bosch and [Carte] obviously are winning more programs in the U.S. and benefit from the market growth in Asia. Asia is improving fast after a very slow start into the year. we saw significantly increased orders from almost all segments, naturally for the region; this upturn is heavily oriented towards consumer segment like smartphones, laptops and few consumers. Distribution inventory fell down by 10% or $41 million in the first quarter, which was very encouraging, this was supported by improving POS plus 7% versus prior quarter. Distribution terms in the first quarter were 3.2 worldwide versus 2.8 in prior quarter; 2.4 in the Americas versus 2.1; 3.8 in Europe versus 3.0; 3.8 in…

Thank you Dr. Paul. We’ll now open the call to questions. Melissa, please take the first question.

Your first question comes from Matt Sheerin. Matthew Sheerin – Stifel Nicolaus: Thanks. Good morning.

Hi, Matt. Matthew Sheerin – Stifel Nicolaus: So a question on how you see the margins playing out over the next quarter or two. Dr. Paul, you talked about some or temporary cost savings programs that impact SG&A, where there also some temporary cost reductions that impact the gross margins so that you won’t get as much leverage as you see revenues come back. If you could just give us an idea what we should think about in terms of gross margin in SG&A in the next quarter?

You’re absolutely right. We will not see the full impact of the sales increase, but nice share of it. As I indicated already in the presentation SG&A we expect to go up from 86 to approximately 90 slightly over 90, and also in manufacturing fixed you can expect some increase of the same magnitude. So all together we are not going to see the full impact, but we expect a good quarter, Matt. Matthew Sheerin – Stifel Nicolaus: But you still think that you can get closer like the do it kind of a 26% number on gross margin where you can still get it up in the quarter, okay. That’s great. And then in terms of Siliconix I mean, that obviously has been lagging the rest of your business and that’s got to an issue now, and I know you’ve talked about actually trying to expand capacity focusing on more higher margin, more specialty business, so could you talk about your near-term and long-term strategy for Siliconix?

Well, no change. We are – Siliconix remains to be one of the most important part of Vishay, no question. it has the highest growth potential, I believe of all of our lines, and we’d indeed have concentrated in the last month say, even in the last year, on developing a more competitive high-voltage version, which we lacked before. We have it now. We are in the qualification process and acquired broad qualification process. And for the remainder of the year, we really expect Siliconix to come back to historical levels in terms of sales and profitability. already as it looks for the second quarter, things look much better than in the first quarter. Matthew Sheerin – Stifel Nicolaus: Okay. And just lastly on distribution, it looks like the book-to-bill there is quite strong, inventories were down, are your thoughts that – distribution will basically just replenish what you are selling out or not, right are yet in the position to be adding a buffer or layers of inventories. so in other words, what you’re selling in is basically going out. So you’re not going to see any near-term inventory build there.

I would say, I would even say, distribution will continue to reduce inventory, but at a much slower rate. As a matter of fact, (inaudible) POS is strong. So our fear that they go again into an inventory increase, it would not be justified I believe. Matthew Sheerin – Stifel Nicolaus: Okay, great. Thanks a lot.

Your next question comes from Steve Smigie. J Steven Smigie – Raymond James: Great, thank you.

Hi, Steve. J Steven Smigie – Raymond James: Just wondering if you could talk a little bit about the SG&A, as we get I’d say, to the back half of the year, because obviously you’d had some of these cost reduction, it looks like you’re still getting some benefit in June. So do you expect the $1 step up, as we go into the September, December and I guess just trying to – I am assuming that you have proven revenue as well in the back half, but are there still – I guess my question is, are there some cost reduction efforts that you took in March that will be going away, (inaudible) after further September.

Sure. First of all, we came out as I said before, $86 million, which were substantially below or even what I had expected. I thought including the acquisition, we would be at $90 million or so. But there were a few things, which helped us partially, we’re really adding towards that and plant closings and included the SG&A people in that as we come to an end. So I expect next quarter, the second quarter to be around $90 million, maybe a little above, but not much. And for the remainder of the year, we think we can stay at this level approximately. I think we will be more or less at the same level of SG&A cost as last year, but including the acquisition. J Steven Smigie – Raymond James: Okay. And that’s on a dollar level, not a percentage revenue level?

360 or so. J Steven Smigie – Raymond James: Yeah, all right. And then with regard to the acquisition, can you talk about and I apologize if you’ve covered, how much of that impacted revenues in March and how much of it will impact in June?

Yeah. It impacted March by around $14 million, about $14 million in sales and gross margin was over 30%, which will grow. We are going to have more sales in the second quarter and profitability, excessive nice variable margin, we will be accordingly up. J Steven Smigie – Raymond James: Okay. Just because you have a pretty decent June [guy], but it seems like certainly some of that comes from the fourth quarter, the acquisition, correct?

Yeah, but no, no. Most of it comes from the normal business. J Steven Smigie – Raymond James: Okay.

Most of it. J Steven Smigie – Raymond James: All right, thank you.

Thank you.

Your next question comes from Shawn Harrison. Shawn Harrison – Longbow Research: Hi, everyone.

Hi. Shawn Harrison – Longbow Research: Just, I guess the first question maybe if you could quantify what was the one-time charge within Siliconix for the quarter, how much did that affect the business?

Was above $3 million approximately, and as a matter of fact, it really was a one-time effect, which was quite exacerbating, but it was thing sometimes have, it was a purchase material, which was not up to the status. Shawn Harrison – Longbow Research: Okay. And then I guess if you could help me, I’m trying to understand I guess the really positive book-to-bill ratio within Asia, at the same time, you’re still seeing some inventory corrections in distribution. That – was positive Asia implies to me maybe that we should see better semi-growth versus passives growth for the June quarter. Is that the correct way to think about it or...?

Yes, yes, yes, as it looks. Shawn Harrison – Longbow Research: Okay. And then I guess within – since we’ve probably have a full month of the second quarter, has there been any changes through this quarter versus kind of what you saw during kind of the February-March timeframe, anything a little bit better or worse?

Better. It’s encouraging what happens. Shawn Harrison – Longbow Research: Okay. And I guess finally, the two acquisitions smaller size now within the past nine months what does the M&A environment look like for you right now, what are the deals out there?

How to say it? We are still pursuing our strategy. We are going after small and mid-sized specialty businesses and there are possibilities around. We are pursuing certain possibilities. Shawn Harrison – Longbow Research: Okay, thanks so much.

Thank you.

Your next question comes from Jim Suva.

Hi, this is (inaudible) on behalf of Jim. If you could just provide some more commentary on the end market that you referred to the industrial and auto segments in particular that would be helpful, thank you.

Sure. So you said industrial and auto, sorry I think it was a bad connection, industry and auto. So as a matter of fact that Europe continues, was excellent last year especially the German automotive industry in the recent year, and we were a little skeptical for the current year, but it were not true, people continue to be super optimistic, they go from record to record, and at this point in time, it doesn't look as if the automotive industry in Europe could slowdown, but also the U.S. recovered. so altogether we are seeing a very nice picture in automotive and we are quite strong in automotive, it helps us. On the industrial side, they were never the same kind of peers, there was a certain – we had the feeling that the peak was over, but say in September, October, but also here we see a continuation now on the same level as is last year. So it’s altogether a very positive picture in automotive and industrial this year, may I add to that better than I personally had anticipated.

Hello.

Thank you, thank you.

There are no further questions at this time. (Operator Instructions) Your next question comes from Steve Smigie. J Steven Smigie – Raymond James: Great, thanks. Dr. Paul, can you give a little color on the back of the year, like the forecast that far out. but with a pretty healthy guidance here, do you think that continues into the back of the year, kind of returned to historical peak revenue levels anytime this year?

Difficult question because we all know we have no visibility I’m imperative on that. But of course, if you want so, you can be optimistic, because you see passives in Europe seem to continue strong, the European economy seems strong at least the segments of Europe, which are important to Vishay that is Germany, basically and some of France. Then you can add of course, the cycle in Asia, which normally indicates always a better second half than a first half. So if you want to be optimistic, you can see higher sales in the second half than in the first half, that I think I can really see it. To which extend we can go up to the record levels of 700 and more this year, I would not forecast it, to say it at this point. J Steven Smigie – Raymond James: : :

I believe that the ambition of our distributors to reduce further inventory at this point is very limited. I think they count on increasing sales and when you look at their book-to-bill, it’s also very good, it’s above 1.1, it was quite substantially above even 1.1, so I believe the ambition is low, I think they will not reduce much anymore as [FTP whereas] pattern holds, but this looks as if it was the case that means what I would expect is very limited inventory reduction and the improved turns, inventory turns just will have to be improved obviously, they are still on the low side. But I believe they count more on their sales – on their cost of goods sold to improve it than on lower inventory. So I could expect that there will be no real inventory correction anymore in the second half. This is unless the whole economy breaks down, which nobody of us expected at this time, I would say. J Steven Smigie – Raymond James: Okay. And then just turning to Europe a little bit, I mean you’ve already given color on a much areas, but just overall is your sense that the major economies over there are in a good enough shape that you should see stability in orders for Europe and I’m talking specific about orders that more likely stay in Europe as I know one of your businesses shipping to maybe German automakers that end up in China. I’m talking more about the European demand that it seem like the cost versus (inaudible) over there for Europe or looking at a stable environment in the coming year or do you think it’s still (inaudible)?

We all know that Europe at the moment has two faces very clearly. We see Central Europe, well Germany is biggest part of it, which is hardly ever seen better times than these to say frankly. But as you said, it’s very much buffet by experts out of the European Union. Let’s assume that this stays the same. There may be some impacts of the business, I could imagine the Southern Europe sooner or later we are going to see (inaudible) for Vishay itself. This is not so relevant I believe indirectly we may see also something. But our major focus in sales is Germany and Central Europe, by far I mean really by far. Indirectly it can always be something, but I must say that the Southern part of Europe of course is not well, it’s clear. J Steven Smigie – Raymond James: Okay. Last question was just with regard to pricing, I think your price seems actually reasonably good here even on the active and I just like – if you’d look at the Fairchild, I think they had about down 3% sequential a quarter, I think yes for down 1%, and then NXP have to get yet acknowledged, but it is so more challenging. It is just the case that NXP continues to be a price leader and is Fairchild more aggressive in this particular quarter or it’s just holding that you get later, you will not down as much?

No, we did not took anything differently from before, and I do not want to like I don’t like to comment on the pricing strategies of my competitors. They are good competitors and they do know what they do in the question. But it’s true what you say, our price decline is lower, and we do not see an acceleration either at this point. J Steven Smigie – Raymond James: Okay, great. Thank you.

Thank you.

Your next question comes from Shawn Harrison. Shawn Harrison – Longbow Research: Hi, just a follow-up on the pricing on the other side of the business within passives, leading that you thought, the first quarter was a singularity, how has been the experience here through April is the pricing decline gotten (inaudible)?

Well, as we said it clearly the whole thing was not – first of all we are not talking a big thing as you know. But secondly, all the sisters and doctors was practically nothing. So we are really talking capacitors and within capacitors we are talking the only remaining commodity part of that, which is (inaudible) capacitors and we did it intentionally. We wanted to help distribution to get rate of the inventories. So we indeed made some concessions, so this was to be expected. The inventory of distribution in general went down substantially by 41 million, which was a big number for us. So not only in tantalum capacitors of course, but altogether but tantalum contributed to that, and this is I think it’s a very, very clear. We are going to see the normalization rate in the second quarter. Shawn Harrison – Longbow Research: Okay, perfect. Thanks so much.

There are no further questions at this time. I would like to turn the call back to Mr. Henrici for closing remarks.

Thank you for your interest in Vishay Intertechnology. This concludes our call.