Thank you, Rhonda, and good afternoon, everyone. Thank you for joining us for our third quarter 2019 conference call and webcast.
First, I'm going to highlight a few financial results that Sheri will expand on in her commentary. I'll follow that with our current view of the semiconductor industry and how it relates to our products and services businesses. After that, we will open up the call for questions.
Our third quarter showed improvement in both business divisions, enabling us to reach the top end of our guidance on revenue and earnings per share. Internal inventory reduction and strong cash flow from operations enabled us to further reduce our debt resulting in improve leverage and a very healthy cash balance.
We continue to optimize our operations, implement new processes and systems and strategically invest for growth. Recently, industry sentiment has shifted to the upside. Current peer and customer commentary verified by our internal marketing analysis suggests that some elements consistent with the recovery are starting to take shape. Memory inventory dynamics are stabilizing and there are signs of recovery in the wafer fab equipment spending to support next generation leading edge devices, where UCT has a distinct competitive advantage in products and services.
These factors supported by ongoing strength in foundry and logic, which makes up around 55% of UCT's business shows improvement in the WFE market. When memory spending resumes, we expect to see the recovery accelerate.
We continue to see project wins with several accounts as customers shift from in-sourcing to outsourcing during the cycle, adding to our overall competence level for our product division.
As devices become more complex and more functionality needs to be added in a limited space, technology advancements supporting 5G wireless, high performance cloud computing, Internet of Things and artificial intelligence are leading the way. The race to advance notes in our core markets enables us to play an even more influential role in the value chain. Capitalizing on the modest momentum, we are seeing in the industry we are supporting our customers technology roadmap, further solidifying UCT as a partner of choice.
With overall sentiment more upbeat and constructive heading into 2020, we are well positioned in attractive end markets with multiple levers for value creation to capitalize on the opportunities ahead.
Our services business saw a slight recovery after memory producers increased utilization coming off the reductions implemented in the second quarter. We anticipate this trend continuing through the fourth quarter as inventory supply and demand align.
As wafer starts to accelerate and WFE capital equipment investment rises, cleaning and analytical services will become even more critical to our IDM and OEM customers.
Our highly technical and unique service offerings provide a great platform for growth and will continue to transform our financial profile.
Our integration and cost reduction initiatives remain on track and we have been successful in adapting manufacturing capacities and capital expenditures to match demand during the slowdown. With a strong balance sheet and a healthy cash position we are focused on strengthening our market position by making opportunistic investments in people and capabilities in preparation for growth. This will ensure we are positioned as a stronger company better able to address the longer term needs of our global customer base as the industry rebounds.
In summary, we are more optimistic than we were just a few months ago that the cycle has bottomed and the industry is on the road to recovery.
Our goal is to maintain sustainable growth and outpace the markets we serve. I want to thank our employees and our shareholders for their continued support, and I look forward to updating you on our next call.
With that, I'll turn the call over to Sheri.