Greetings and welcome to the Methode Electronics Fiscal 2010 third quarter earnings. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. This conference call does contain certain forward-looking statements which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the Safe Harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such is our annual and quarterly report. Such factors may include without limitations the following. Dependence on a small number of large customers, dependence on the automotive, appliance, computer and communications industries and construction, industrial, safety, radio remote control markets, seasonal and cyclical nature of some of our businesses, ability to protect our intellectual property or if we infringe or are alleged to infringe on another person's intellectual property, customary risks related to conducting global operations, ability to avoid design or manufacturing defects, ability to successfully benefit from acquisitions and acquire technology, ability to compete effectively in our technology based businesses and markets in which we operate, affect of acquisitions or divestiture of various business operations on our business, financial condition and operating results, ability to keep pace with rapid technological changes and dependence on the availability and price of raw materials. It is now my pleasure to introduce your host, Don Duda, President and Chief Executive Officer for Methode Electronics. Thank you Mr. Duda, you may begin.

Thank you, Claudia and good morning, everyone. Thank you for joining us today for our fiscal 2010 third quarter financial results conference call. I'm joined today by Doug Koman, Chief Financial Officer and Ron Tsoumas, Methode's Controller. Both Doug and I have comments today and afterwards, we will be pleased to take your questions. Overall, I am relatively pleased with our third quarter results. The general economic climate continues to be extremely challenging for us and for many other global companies. However, third quarter 2010 consolidated sales increased just over 10% compared to the same quarter of last year, with sales improving in each of our segments. Excluding restructuring charges in both periods and the impairment of goodwill and intangible asset charges in the fiscal 2009 third quarter, fiscal 2010 third quarter pre-tax loss improved $2.3 million on increased sales of $8.3 million over the third quarter of last year. More importantly, on a year-over-year basis, third quarter gross margins also improved in each of our segments, primarily due to the impacts of the significant restructuring activities we undertook. Our consolidated gross margins were 17.2% in the current third quarter, compared to 13.7% in the prior year's quarter. We have taken tough actions across the board to tighten expenses and reduce costs and are beginning to capitalize on the improvements we have made. We believe the benefit of these actions will increase as the economy slowly rebounds and our sales improve over time. The Interconnect and Power Products segments were profitable in this third quarter, compared to losses in last year's third quarter. While the Automotive segment incurred a loss of $0.9 million in the quarter, our strategy to exit legacy automotive products improved the results for this segment almost 70% over last year's quarter. Third quarter selling and administrative…

Thank you, Don. Let me start with our reporting segments. The automotive segment had third quarter sales of $43.6 million. That's up 19% compared to $36.6 million last year. In the nine-month period, sales were $151.6 million, down about 23% compared to $196.5 million last year. The increase in the third quarter is due to stronger sales in our European and Asian operations, primarily offset by sales to the Delphi – or no sales to Delphi. Last year's third quarter included sales to Delphi of about $9.3 million. The decrease in sales for the nine-month period is, again, primarily due to sales – no sales to Delphi, which was a drop of about $19.2 million to $14.1 million this year, compared to $33.3 million last year. In addition, we have minimal sales to Chrysler of about $1 million in the nine-month period compared to almost $17 million last year. As I mentioned on last quarter's call, we substantially completed the transfer of Chrysler product at the end of the second quarter of fiscal 2009. Additionally, sales in the current nine-month period benefited from the reversal of about $1.7 million accrual for pricing contingencies and are no longer required. Currency translation increased foreign sales by $1.7 million in the third quarter and increased foreign sales by about $400,000 in the nine-month period. In the third quarter, gross margins for the automotive segment were $3.5 million, or 8% of sales, compared to $1.9 million or 5.2% of sales last year. For the nine months, gross margins were $27.5 million or 18.1% of sales, compared to $35.4 million or 18% of sales last year. In this year's third quarter, gross margins improved at our European and Asian operations but were offset primarily by the loss of the Delphi business. For the nine-month period,…

Doug. Thank you very much. Claudia, we are ready to take questions.

Thank you. (Operator Instructions) Our first question is coming from David Leiker, Robert W. Baird. Please read your question. Keith Schicker – Robert W. Baird: It's Keith Schicker on the line for David.

Good morning, Keith. Keith Schicker – Robert W. Baird: I just want to start, I guess in the two non-automotive segments. You had pretty good profit recovery there with roughly consistent revenue here quarter-to-quarter. What's sort of driving the profit change there? And is that something that can continue going forward, or is there one-time or temporary issues there?

Well, certainly one quarter doesn't make a trend, but we have seen – the effects of our restructuring efforts have improved gross margins. Our power group I think is being much more selective in what type of business they are taking, leaning more towards military, aerospace and more niche-type products. I don't think that's an anomaly. I think that's certainly a trend. But again, we'll have to see what the next couple of quarters look like. Our optical and data businesses, which are in the interconnect segment, had solid growth. They reached a certain point of revenue that they've become fairly profitable. And we saw that this quarter. That tends to be project by project, so that could slip back a little. Their project stream has been looking good going forward. So, I would caution that though we have had good sequential growth, our restructuring efforts aren't going to go backwards, so those will stick. We'll just see what the next couple of quarters – it is highly mix-dependent, so I don't think it's an anomaly. Keith Schicker – Robert W. Baird: Okay. And then if you look kind of going forward in those segments, you talked about some of the new areas where you are bidding on business and winning business. Are those the key growth drivers for those segments? Or are there any other areas where you think you can capitalize on that you haven't really tapped into yet?

I mean, I don't think – we are not going to do any more restructuring. I think we have done everything we should do there and I think anything else would be false economy and hurt the business. So, now as we've said in the past, we need to certainly book new business and we need some help from our existing customers in business that we have landed even a year ago. We need those programs to launch at a higher rate than we have seen just because of the economy. So some help from the economy as well as new business wins is what's going to propel those businesses. And we continue to introduce new products in most of those business units. Keith Schicker – Robert W. Baird: Okay. And then if we kind of step back and look across the whole business. If you look at the revenue opportunity for TouchSensor and some of the other newer technologies that you are starting to bring to market kind of a difficult question to answer, but how would you describe the scale of what you think the revenue opportunity is? Or the growth potential, just any sort of color you can offer in that respect?

Well, in auto I gave a fair amount of detail on the opportunities, we are working in and that's really not even all the opportunities. Those are the ones that are on our – I guess project tracker that come up to the executive level. And those are in excess of $100 million and we usually are pretty conservative. So I don't know how much more color I can give on the auto segment. On the balance of the business, as I said to the earlier question it's new product initiatives that we have, it's mixing it up with a I guess more lucrative customer base in MIL-AERO in power. And in the Hetronic business we are seeing some of their end markets recovering slightly, although I would put the caveat that construction is still down. They have entered the locomotive remote control market, which is an area that they had not been in prior to the acquisition. That is giving them – that's gaining some traction, although as I seem to recall last month it was maybe $300,000 in business. But that's a fairly large market for them to pursue. And then in TouchSensor, TouchSensor is – aside from auto they continue to pursue appliance. They're pursuing it in the European market as well. We are setting up production in Malta for TouchSensor transferring some business there that had been shipping into Europe. So it's an untapped market for them. And they are also introducing a standard line of products where you can essentially buy a TouchSensor keypad and integrate that into your product in different face plates in Asia. So I mean all of those initiatives are really what our future revenue is going to be derived from. It is a difficult question to answer. Keith Schicker – Robert W. Baird: Absolutely. And then just lastly here, you mentioned that in terms of the Ford interface that utilizes the Touch Technology, you've been talking with some other OEMs about that. Is that – have those talks begun since the product was introduced into the market? Or is that something that's been underway for a while? Or I guess alternatively how has the market reaction to the product been? And how have your customers reacted to the product?

I mean the answer to that is both. We've been talking to a number of automotive designers and customers prior to the MyFord Touch announcement and then of course MyFord Touch was very well received at the consumer electronics show, it was in the Chicago show. So that also helped garner some additional interest. I think what I mentioned in the prepared remarks those were all ongoing discussions that started some time ago. Keith Schicker – Robert W. Baird: Okay. That's all I had. Thank you.

Keith, thank you very much.

(Operator Instructions) Our next question is coming from Jeremy Hellman with Divine Capital Markets. Please state your question. Jeremy Hellman – Divine Capital Markets: Hi. Good morning, everybody.

Good morning, Jeremy. Jeremy Hellman – Divine Capital Markets: With apologies I just wanted – I couldn't keep up with all you said during the prepared remarks. So I just wanted to go over a couple of items to make sure I got my notes right. First off, when you spoke about new business in the quarter in terms of the annual run rate on auto that $6 million was the number on that?

I think it was $3 million, let me just check here. I'm almost positive it was $3 million for the quarter. Jeremy Hellman – Divine Capital Markets: Okay.

Yes. Jeremy Hellman – Divine Capital Markets: $3 million. Okay. Good. And in terms of areas where you want business to get noted, in terms of electric energy there was some marine related power solution stuff, lithium-ion batteries and also some inverter work in wind turbine. And there was one other thing. I think it was electric vehicles or PHEVs, was that?

That was electric vehicles. Yeah, there was a bus bar for a defense contractor for shipboard use, a battery retrofit for a hybrid electric vehicle, the lithium-ion and an inverter for wind turbines. Jeremy Hellman – Divine Capital Markets: Okay. So that kind of gets me to the question I had was when you kind of think about the opportunities going forward. A number of those items we just discussed are – can pick up a stimulus funding component to them. I know there was recently another $100 million of ARPA-E money that was announced and that goes to some storage technologies. For example, which would affect potentially lithium-ion makers, I know this may be asking you to capture a ghost, but do you see any delta in these areas of business with respect to stimulus money such that stimulus funds actually get spent in a meaningful way that that these potential customers will see a pickup on what they are doing?

The key question there is it meaningful way. But that's an excellent question and we are talking with potential customers that are slated to receive certain funding that would ultimately trickle down to us, as we are providing the power distribution systems. The caveat there is that what – that is an exciting market and it has a huge percentage growth, it's still on a very small base. But it is a market that is on a lot of people's radar screens. It's certainly on ours and we – you are right. There are customers or people that are slated to receive funding and that will help us. Jeremy Hellman – Divine Capital Markets: Okay.

But it has to be deployed and has to be funded. Jeremy Hellman – Divine Capital Markets: Sure. Switching gears here on the Delphi litigation anything you can disclose in terms of expected legal costs this quarter that we are in? And going forward?

No. We had talked about how to answer that question. I would look at an average. It's so hard to predict what will happen in any litigation. And it goes I think in – goes up from…

And kind of ebbs and flows.

Yes. Thank you. But I don't – I haven't looked at an average of what we've seen in the past. Jeremy Hellman – Divine Capital Markets: Okay. Any key dates on the calendar coming up?

Key dates for… Jeremy Hellman – Divine Capital Markets: For that litigation?

I don't – let me take a pass on that question, because I don't have anything in front of me on that. Jeremy Hellman – Divine Capital Markets: Okay. No problem. And then lastly, just going back to – I think Keith I think it was Keith's margin related questions. Do you see – you kind of everything was framed in that will it retreat? Will margins retreat from where they are? As revenues pick up, one would expect some margin improvement mix being held constant obviously and as you noted, mix is key. Where – kind of thinking out a year or two segment by segment and I guess we can start with interconnect and power. Where do you think margins at a gross margin level could reasonably go to, or within a range?

Let's talk about Interconnect. Our target – but first of all, I think maybe I've made this comment to you in the past. When we restructure these businesses and Methode went through a major, major restructuring. We looked at what we thought average revenues might be for the next couple of years, assuming that it's going to take certainly this calendar year before we see the world economy improving. So we gear them to a – I won't say – well, I'll say a conservative revenue number. So what we expect assuming we don't have to add much back in the way of resources and we really shouldn't. You should get a pretty good throw from any top line growth, assuming you're not – you're material content is not 90%. So all the businesses of Methode have been geared to that and we've seen that start to occur in certain business units. It's still a bit choppy. One month it might be up and the next month it's down. But we are confident that our efforts have – will bear fruit from that standpoint. So in Interconnect we are targeting the mid-20s for margins. It was at 28%? Now, could it go higher than that, depending on mix? So yes, but it also could drift down. It is mix dependent. And in – unlike auto, where you are booking business for several years out and we know what type of revenues to expect and what the mix is going to be. You don't have that visibility in the Interconnect or the power market. But getting to power – the margins there, we are looking – we're targeting the low to mid-20s as the margin goal there. Again, that's highly mix dependent the more MIL-AERO, the more hybrid business we have, I think the higher the margins will be. Jeremy Hellman – Divine Capital Markets: Okay. And then so going to auto and I – one on a hole in my notes was I believe you said you expected auto to be breakeven in fiscal '12. Was that correct?

That's correct. Jeremy Hellman – Divine Capital Markets: And that's operating, but at a gross margin level, right?

Right. And I would – I think what we said there is it was less any legal fees. Jeremy Hellman – Divine Capital Markets: Right. Yeah. Okay. Just looking at more the near-term and also the long term with respect to automotive margins, any further color you can offer on where those go? Those have been highly volatile over the last number of quarters. Obviously, there's been a lot of interesting things for lack of a better descriptor going on in auto. So…

Let me answer the short-term. The automotive market is still very volatile. We have seen forecasts all over the map from our teams. And usually I get auto it's fairly predictable and certainly the last couple of years it has not been. So as I said in my remarks, I remain very cautious, certainly as we go into the fourth quarter and now in Q in the first quarter of next fiscal year. We will begin launching MyFord Touch, so we will get some contribution from that. But the question there is that's slated for I think $12 to $18 million and that depends on how the vehicle is accepted. It doesn't really get to full launch until 2013. So near-term automotive margins are going to be under pressure and at best unpredictable, I would think. Long-term one of the reasons we went through and all the exit of the legacy products is that we weren't able to obtain the margins that we thought we needed to for the effort to go into being in the automotive market and the overhead structure that you maintain. So long-term, I won't put a number on it yet, because we just – we haven't launched any of these new products. And but I can tell you that our goal is to certainly have better – much better margin than we've had in the past in auto. I realize that's a non-answer. But we just haven't launched the products and there's still too much uncertainty in the worldwide automotive market. Jeremy Hellman – Divine Capital Markets: Right. Certainly, well, I guess a way I was kind of thinking about it. Where you spoke about, you have the kind of front-end, some related costs to set yourselves up to start delivering product. So provided there is no spike in those kind of costs in the current quarter. For example, under the MyFord Touch launch organically so to speak, we've seen that there would certainly be an upward drift to margins optically if utilization goes up?

Yes. Yeah. No. That's – if I use our Malta facility in Europe, we have seen when their margins or excuse me, when their revenues peak past a certain point. We see pretty good contribution. It's just not at a steady state right now. But no, you're absolutely right. Jeremy Hellman – Divine Capital Markets: Okay. Thanks guys.

Thank you.

Gentlemen, it appears we have no further questions at this time. I'd like to turn the floor back over to management for any closing comments.

Thank you, Claudia. We will just thank everybody for listening and wish everybody a pleasant day. Thank you.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time and we thank you for your participation.