Good day everyone and welcome to the Vishay Precision Group’s Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions). After today’s presentation, there will be an opportunity to ask questions. (Operator Instructions). Please also note today’s event is being recorded. I would now like to turn the conference over to Ms. Wendy Wilson. Ma’am please go ahead.

Thank you, Jamie. Good morning everyone. Welcome to our second quarter fiscal 2014 earnings conference call. An audio recording will be made of the conference call today including any questions or comments that you may contribute. By now you all should have received the earnings press release and we hope you have taken time to read through it as it does contain important information. You can find it including our relevant non-GAAP reconciliations on our Web site. An audio recording will be available on the Internet for a limited time and can be accessed on the VPG Web site. The content of this conference call is owned by VPG and is protected by U.S. and International Copyright Law. You may not make any recordings or other copies of this conference call, and you may not reproduce, distribute, adapt, transmit, display or perform the contents of this conference call in whole or in-part without our written permission. Today’s slides are governed by the Safe Harbor provisions of the 1995 Private Securities Litigation Reform Act. Actual results may turn out significantly better or worse than indicated by any forward-looking statements that we may make today. For a more complete discussion of the risks associated with our operations, please refer to our SEC filings, especially Form 10-K for the year ended December 31, 2013 and our other recent SEC filings. And now, it’s my pleasure to introduce the host for today’s call, Ziv Shoshani, CEO and President; and Bill Clancy, CFO. Bill?

Thank you, Wendy. Good morning everyone and thank you for joining us on our call today. I’d like to start by reviewing some highlights this quarter and then summarizing the financials. Following that Ziv will provide his view of the year. Overall, I’d say the second quarter was a good one with revenues at the high end of our guidance and adjusted diluted earnings per share of $0.25 for the 2014 second quarter versus $0.22 per adjusted diluted earnings per share in the same period of last year. Our net revenues came in at 65.2 million. Adjusted gross margin was comparable year-over-year at 37.9% but was up from 36.2% in the first quarter of 2014. Our bookings for the first six months of 2014 at 130.5 million, are 8.4% higher than last year’s six months bookings. With our six month book-to-bill ratio of 1.03, we have a solid backlog. In light of the continued market demand, we expect net revenues in the range of 61 million to 66 million for the third quarter of 2014, despite the normal seasonal slowdown that is inclined to incur during this period. For a brief review of the financial results, let’s start at the top. For the second quarter, we reported revenues of 65.2 million, a 3.7% increase from 62.8 million for the prior year period. The consolidated adjusted gross margin for the second quarter of 2014 and 2013 was 37.9%. The consolidated adjusted gross margin for the second quarter of 2013 excludes the 2.3 million of KELK acquisition purchase accounting adjustments. Selling, general and administrative expenses for the quarter were 19.9 million or 30.6% of revenues compared to 18.6 million or 29.5% for the last year’s second quarter. Of the 1.3 million increase, 400,000 relates to headcount, 300,000 relates to wage increases, 200,000…

Thank you. As Bill mentioned, our focus remains on our strategy which will overtime creates increased value to our shareholders. There is evidence that we have gained traction from our new application development platform. Over the past 12 months, the revenues from those projects in advanced sensors, truck VanWeigh overload protection systems and crane overload weighing systems has increased by 88% from the second quarter of 2014 compared to the second quarter of 2013. In WCS, our second quarter 2014 revenue run rate from our new truck and VanWeigh weighing overload protection systems continued their positive trend, up 60% year-over-year and up 34% sequentially. And our offshore crane overload weighing systems revenue have increased 84% year-over-year and 41% sequentially. In the FTP segment, our advanced sensor platform revenue which have developed two years ago is up by 167% year-over-year and grew 24% sequentially. We continue to see generally positive global economic indicators, which is supported by positive industrial production indexes primarily in United State and in Europe with some contraction in Japan. Additionally, EMI indicators show that expansion has continued with particular strength in the United Stated and in the Euro Zone. According to the World Steel Association, the world crude steel production from the 65 countries reporting was 137 million tons in June of 2014, a decrease of 1.0% compared to June of 2013. Capacity utilization has decreased to 78.3 in June from 79.0 in March. Global steel prices are at the lowest level since August last year and not far off from the 3.5 years low reached last June. The price decline have come despite the increased demand in the Western economies. Growth in the steel output is exceeding growth in demand and is adding to the global surplus. Raw material cost like iron ore has coming down.…

Ladies and gentlemen, at this time we’ll begin the question-and-answer session. (Operator Instructions). Our first question comes from John Franzreb from Sidoti & Company. Please go ahead with your question. John Franzreb - Sidoti & Company: I’d like to start with the relative strength in foil technologies in the quarter, fairly impressive, I wonder if you could just talk a little bit about what drove that strength? Was it new products, was it new expansion geographically or just underlying demand? Little bit more color that would be very helpful.

Okay. John, you’re looking at the orders in the second quarter of… John Franzreb - Sidoti & Company: No, I’m actually looking at the revenue number for foil.

Okay, the revenue number for the FTP segment in the second quarter has been driven on the resistor side by a strong demand from the EMS, test and measurements, which is driven by the backend test and measurements of manufacturers. And on the strain gages side, it’s been driven by again, by the Americas test and measurements and the EMS OEMs. John Franzreb - Sidoti & Company: Okay. Is this a restocking scenario with the EMS customers or is this a sustainable demand platform?

Regarding the EMS which we are working with, they do carry very little stock in a way we have put in place, I would say various programs in order to provide then with the short lead time. So in that regard, it does reflect demand and not just restocking and not just replenishing of inventory. John Franzreb - Sidoti & Company: Okay. Well, you mentioned the relative benefits from two new product categories, one of them was up over 100% and one of them was 88%. Where did those benefits really flow through in the quarter?

Regarding the advanced sensors where we have seen an increase of 150%, it does fall under the first reporting segment and it is in the test and measurements and EMS, OEM demand in the United States. John Franzreb - Sidoti & Company: It’s part of that, Okay. Last quarter we talked about some shipping expectations that we should have in WCS that would put some of that revenue into the latter half of the year. Is that still the case or some of those orders deliveries being moved forward?

This is still the case, as you may know, the steel business is a project driven business whereby customers may push out deliveries due to their own timing. So, in that regard we do expect to record further revenues in the second half of the year. The rest of the product lines are doing quite well in the WCS segment and we have seen a nice increase in the OEM business primarily in Europe. John Franzreb - Sidoti & Company: Okay. So then just walk me through the relative strength that we are expecting in the third quarter. It’s been quite some time since we’ve had such a relatively good outlook in a seasonally weak quarter, what’s driving that strength?

All-in-all and especially regarding the WCS segment which is I would say at least close to 40% to 45% of the revenues are in Europe, we do expect higher revenues mainly due to the fact and despite of the seasonal slowdown because we do expect to record more steel business revenues in that quarter which has been pushed out from the second to the third quarter. John Franzreb - Sidoti & Company: Okay. So revenues that are moving in the first half is starting to flow through in the beginning of the second half, okay. And is it still the delivery expectations that the fourth quarter will be better than the third quarter in WCS?

As you know John, we are providing only a quarterly guidance. I think it’s a little bit premature to provide information how the fourth quarter is going to look. At this point the only thing I could say that we still see a very solid demand in all our reporting segments and the third quarter looks good. Since the book-to-bill and especially on the WCS side, is fairly low, we don’t have, I would say the visibility regarding Q4 is still fairly big. But we are confident that it will continue to be solid based on today’s information. John Franzreb - Sidoti & Company: Okay. And you rolled out some, adding some personnel to address some new marketplaces, are we starting to see any traction from this sales initiative?

John, you’re talking about the increase in G&A year-over-year, correct? John Franzreb - Sidoti & Company: Correct.

Yes, we are starting to see some of the traction and basically the personnel is mostly R&D people and this is what Ziv has been talking about that year-over-year we’re starting to see traction on the new growth engine. So, that is absolutely correct.

Our next question comes from Andrew Fleming from Heartland Advisors. Please go ahead with your question.

Bill, if we could start off talking about foil tech, FTC, I am just curious, is the gross profit margin there is sustainable going forward and is that a function of just moving past the ERP implementation?

For FTP, I mean the fact that we didn’t mention anything about the ERP means everything is turned completely, we’re way past that. And based on the current revenue run rate, we can maintain the 40% gross margin in FTP and at this point it’s volume driven.

Okay. It sounds like second half should be stronger than first half on the FTC side as well?

Given the visibility like for the next quarter and like Ziv have mentioned that things still are quite strong. We can’t look out beyond the third quarter at this point in time.

And Andrew, we should state that regarding the overall guidance range, we do expect as we stated the Company’s expectation 61 million to 66 million. But in regards to the first reporting segment due to the seasonal effect, we do expect to see a certain slowdown as we have seen historically in regards to shipments.

Okay that’s helpful but just sticking with that segment, I mean FTC has a bit of headwind over the past 12 months and it sounds like now that we’ve moved past ERP that headwind has been lifted and bookings are picking up nicely.

This is correct and one of the main projects that we’ve been reporting in the last few earnings call is the advanced sensors and the progress of the revenues and resources and funding that we have been providing. And we do have big expectation regarding further revenues and more cost reduction associated with this new platform which we have developed two years ago.

Okay and moving on to the Force Sensors. It appears to be the most stable segment, would you expect that stability going forward kind of hovering between that 16 million to 17 million in quarterly revenue and gross profit margin slightly above 20?

Andrew you are correct, this is the most solid segment in a way, if you can recall this is the segment where we have established our offshore India facility in order to consolidate further production and to realize further savings and we’re in the process of doing that. The fact that we have reached 21% based on existing revenues it’s definitely sustainable and we do expect to realize further savings as we will continue the consolidation in the upcoming two years. In addition to that we are investing and looking at further realizing or I would say further expansion of revenues mainly in the OEM market, construction, agriculture and medical where we’re designing our new platforms. So, once we realized further more sales while we continue to reduce cost, we should expect overtime to see improved margins.

Okay, o the margin expansion in Force Sensors is more a function of cost savings as opposed to improvement?

And volume, I should say that mainly volume and also to an extent cost reduction, yes.

Okay and then finally on weighing and control systems. Have we now moved past the purchase accounting issues that were kind of clouding up the gross profit margin?

Yes Andrew, I mean we’re beyond that for example we don’t recorded like you saw in the reconciliation tables $2,000, so we’re past that now.

Okay, so that 48% gross profit margin in the segment is a good run rate to think of going forward?

It all depends on the product mix. We have product groups in that segment and the makeup of the revenues we have today, we would maintain that 48% gross margin but it also depends on the mix. But it should be still a relatively very high gross margin for WCS.

Okay. This most recent quarter was not about wire, there is nothing one-time in nature that caused that elevated margin in the quarter?

No not at all, very solid quarter in that segment.

(Operator Instructions). Our next question comes from Jim Schwartz from Harvey Partners. Please go ahead with your question.

Just curious so in the business model for every $1 million above 245 million there is a 50% contribution margin to EBITDA, right?

Yes, that is correct Jim.

Okay. So, now from 245 to 260 which is sort of the run rate, it sort of annualizes at 37.5 million of EBITDA and you look at your enterprise value, you guys trade under four times EBITDA with a 19.5% free cash flow yield for a business that is not cyclical. And you are either sole sourced or dual sourced in almost everything you do. And you look at the landscape and you’ve got the acquisitions out there and the peers are 11 times EBITDA. Why would you guys just like tender back your shares at four times EBITDA, I mean it just doesn’t make sense from a capital structure perspective, you’re so undervalued relative to the market.

Jim, currently obviously we’re exploring all opportunities, all potential be it. Our number one goal obviously is acquisitions but as we are working on that we’re exploring other opportunities to deploy our capital.

Okay. As you guys keep generating cash, your free cash flow yield is nearing 20% right now, so just it’s more accretive to buyback your own shares as opposed to buy sort of the unknown at 11 times EBITDA.

No, we’re looking at all facets of our capital at the moment.

And ladies and gentlemen, at this time it’s showing no additional questions. I’d like to turn the conference call back over for any closing remarks.

Thank you, operator and thank you for dialing in today. We would be happy to talk to you if you have further questions and we will see you in the next quarter. Thank you so much.