MKSI - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the MKS Instruments Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question and answer session. [Operator Instructions] I would now like to turn the call over to your host, David Ryzhik.

David Ryzhik

Good morning, everyone. Officer. and Chief this Bagshaw, Executive President Chief Ryzhik, Lee, by Senior David and and President Officer; Financial am I'm morning joined John Vice I and Seth financial Yesterday, results XXXX after which to posted website, are we market released and for second quarter close, the of mksinst.com. our our

in a any today including future statements, as may results and of plans reminder, These press statements. result various statements today prospects of to factors, today and yesterday's any subsequent company's company as important upon of represent as not Form a should discussed in Form the As recent only relied about date any these for and various those actual report be differ remarks annual subsequent expectations quarterly update reports expectations, XX-K the obligation the MKS to and as and forward-looking release on materially comprise and most views the disclaims or XX-Q. representing company's estimates on

call, than During regarding and other otherwise financial non-GAAP be we measures. non-GAAP to information to press results reconciliation measures measures. GAAP our our will release income Unless financial various noted, our for all financial please a statement-related the refer revenue, be discussing will

over Now I'll turn call to the John.

John Lee

an second this. our margin year-over-year share. also margin increase to net our per world-class our another very pleased in the Good supply our midpoint delivered despite I example have chain results earnings everyone, per in operating XX% the share our We of joining another Thanks, diluted increasing of strength operations above for David. million We're range. previously certain of We yet morning, of the net customers, and constraints and and $X.XX, achieved components. in resulting the and was and record quarter, today. facing earnings revenue commitment quarter expansion us gross you thank $XXX quarter with with team guidance of of these both highlighted

give past and quarter to full sense vacuum net X% across record from semiconductor has a we in photonics and MKS we the the fact, second as Sales in higher year In our broad-based delivered the was to transformed what our new to years, in sequentially a market grew X benefited than how demand portfolios. XXXX. of earnings for our

delivered our Our applications Power quarter etch high by solutions Solutions. continues ratio believe world Solutions enabled is demand Power to every the We grow. record XD another leading-edge as for our aspect single application RF differentiated in today NAND of

portfolio on help We maps. their continue execute road Power to to our RF customers invest technology our in

revenue RF valves our record, also analytical business. records in Power, from our another in Vacuum Division and and Excluding combined the reactive and strong including year-over-year of growth solutions the plasma and control reached gas remainder Analysis

are ozone X-, our orders another of ammonia support to and In dissolved and The smaller applications. solve paying quarter we the world-class wins in made of off have industry our needs plans. will systems the multiple X-nanometer for for initiative increasing the our fact, of we semiconductor X- secured to were the design increasingly important which in geometries. optics X large become and Chamber as XX is foundry which example Surround differentiation portfolio, as yet expansion we dissolved This secured complexity alone, investments second

of in design EUV we number Specifically, applications a increased in are interest seeing with quarter. wins shorter-wavelength the

a expertise win our increase notable photonics share assembly capabilities our and applications a the solution array we and yet subsystems application. advanced depth lithography gradients wallet another We optical of manufacturing design portfolio received a secured semiconductor just wide extends large semi our key laser opportunity with of is to leverage to we OEMs. example critical for beyond of state-of-the-art optics. for of back-end picosecond continue UV new a We application. But and and semiconductor for breadth And our in serve. This order

quarter, look strong. third into semiconductor demand market we remained the our in As

certain semiconductor would by semiconductor demand month. quarter pickup revenue in supply applications well from in we Revenue The electronics be than from this more manufacturing which expect results Barring more have quarter. from the were we and prior to the Photon However, year-over-year. Control, growing of drilling associated expected demand from advanced these revenue of a with constraints, from of including up as via be to growing due market as accelerated in solution, revenue second acquired from our flex our from components, the XX% as constraints markets slightly third smartphone earlier we the new leading-edge industrial strong levels and capstone to quarter, a XX% adoption advanced up to technology driven significantly applications. continue quarter to consistent capacity designs. XG saw customers PCB meet We strong demands variety second transition

production, We also advanced address more focus Korea applications. secured possibility our a standard order on PCB but initial with multiunit first capstone with in to an

We are HDI our Solutions' in the progress market. pleased the acceptance with of

you HDI As a market have from our an facility in their for major PCB HDI Technologies, China. we manufacturing week, order first leader last technology Quanzhou, received from seen may TTM announcement in the

with We manufacturing drilling solution. are continued TTM to their our and support differentiated are Geode focused excited on needs and adoption driving HDI

win for our the in wins electronics volume also we shipment picosecond the quarter. traction second a We new advanced previously we platform, UV in with laser quarter, design we announced. and design that secured meaningful commenced And X are gaining

sequential Even advanced expect to third quarter. normal expect basis. PCB with a on to we grow markets markets our due primarily we from Moving to seasonality to considerably the this from drilling year-over-year flex advanced sequentially, in our our decline, decline revenue revenue via business.

on announcement to I an few closing share acquisition Atotech, Seth, want to a to and Before I the call the agreement turn Control thoughts that of into Photon entered the over we Ltd. acquire the

industry. portfolio. welcome Its portfolio Chamber trends, to into solutions semiconductor excited Surround the flagship MKS. enable to and MKS team as sensing are a right Control growing opportunities The cross-selling for our and innovation optic And key attractive Control the is leverage margin very relationships can of such history Photon was to temperature financial etch fiber gross clear. profile we processing. the the earnings We drive to the per share. complexity believe immediately the From Photon are Control's in our Photon acquisition rich perspective, in a to benefits fit brings customer accretive we broad

is The for be interconnect, the key which We We been address to XX a will to will advanced have that are believe past addressing connects expertise, expertise architectures. and continue has to solve years. with next-generation the devices. challenges is the chips, critical drilling sensors bring on designs, leading and exactly been via next Atotech. what can chemistry formation the MKS and for semiconductor which fabrication, of workflow to of will acquire process PCB we agreement is key which so our we a to complexity our optimizing driver build equipment electronics leading via miniaturization and frontier to enabling Atotech trends these interconnect enabler and optimize

MKS, cross-selling to Atotech's give manufacturing. attractive our and a leadership benefit given Atotech strong differentiation, a in SAM. opportunities with from an combined see profile room of attractive and recurring where processing and grow HDI complementary anticipate This chemical PCB pro-forma an be brings can in company estimated can also as strengths laser in benefit the stream XX% $X combination PCB gross we Atotech from MKS recurring manufacturing and leadership would robust should revenue also We flex margin PCB to about drilling nature. competitive MKS' billion revenue expertise

summary, gives year which strong become us the that, we the like turn in and driving pro-forma acquisitions Seth. cash these we expect call excited I'd earnings generation deal. complexity at like lie MKS to first addition, in In In to and per the miniaturization over electronics when position about looking advanced share post to With force accretion flexibility we're opportunities and the a ahead. that and for semiconductor manufacturing, deleveraging

Seth Bagshaw

cover closed Control. sequentially will quarter on Thank additional recently will you, our of then third in acquisition Photon include quarter's for results Sales record up partial provide and the guidance quarter results a $XXX year-over-year. detail John. for million, X% which up were second our XX% quarter, the a second I

Our $XXX X% another set of of wide-ranging reflects well semiconductor memory, in demand markets. and up our strong XX% across advanced robust sequentially performance at reflecting and up record yet demand as Sales logic applications. acceleration market foundry semiconductor year-over-year, another record million, quarter a to

Our broad-based applications. product portfolio these is leveraged all to of

a certain a to impacted second reflect division revenue strong to operations market perspective results, COVID-XX asset-light flexible delivered in team are traction metrology XXXX. global of Complementing To constraints Not our pre-COVID photonic components with record operational the we analysis the pleased in quarter levels with model. fourth the our grown pandemic. vacuum Light execution, applications. also sales our of for also only compared a we of vacuum this of growing very disruptions, our give world-class the Motion supply and gaining start well and as but manufacturing how team by executed lithography, since of XX% results, unprecedented to effect our semiconductor our our are does solutions we has have analysis we While global inspection revenue how has semiconductor quarter and responded

by up second the optics we wins initiative Sales investments and at technical we'll XX% markets expertise earlier, scale in with million, XX% quarter, up world-class led advanced results, our drive systems. customers. additional for accelerated in in strong continue drilling are demand record to the key leverage PCB V in advanced flex our highlighted design a our are John As applications, electronics to setting yielding particular, year-over-year, making targeted and to sequentially and $XXX

division that our We inclusive last quarter revenue the are headwind products Solutions almost the very of occurred semiconductor low-margin discontinuation with and $XXX pleased our of with in from of late Equipment market of year. revenue performance the million is second

over disciplined strong a favorable fact, gross Solutions revenue returns-based led and combined portfolio, has In the margin to with XX%. mix, record of to our Equipment approach

and the second the Advanced quarter, was XX%, Semiconductor our respectively. between markets and XX% For revenue split

to and and quarter cost XX.X%, This up due sequentially XXX product basis strong margin year-over-year. volumes, was basis points control. performance was mix up Second gross XXX effective higher points

to our sequentially, million, product Second financial strong costs were results. due quarter expenses higher and operating $XXX primarily $X R&D to up compensation variable million due

interest billion share. On our Second $XXX Analyst at up a quarter Adjusted leverage per points and strong EBITDA Day. $X XXX up second borrowing in model. the a target expense and and record XX%. growth were in a million, sequentially and revenue line financial million more sheet margin our was the operating points a $X earnings record we for resulting and an was operating our quarter, reflects quarter cash the for was our our increased exceeding the of of EBITDA we operating subject a quarter Net year-over-year tax margin on and $XXX borrowing liquidity basis, second short-term Exiting rate, $X.XX approximately announced incremental twice basis $XXX Net in million XX.X%, over credit long-term record million, was basis year-over-year, XX%. which asset-based XX%, XXX requirements. our rate over quarter strong adjusted of to maintained than with that balance certain diluted EPS position base model second investments capacity the

principal $XXX million sequentially. million second $XXX and loan exited the at term in balance, million $XXX net quarter quarter, balance over Our the cash was we up

we sales quarter. quarter times a improving In Based revenue levels, outlook. of third third million, estimate to dividend of the were $XX quarter quarter remain our And a year-over-year increase. days second on end for our the capital, cash quarter are I'll now also was that increase. few end items second operating $XXX XX% minus second X million, focused XX We of made a third first days second plus at in compared quarter outstanding $XXX were $XX the to We flow quarter. terms outlook. on increased quarter second million $X.XX cycle. times XX% quarter a the turns worth per in current X.X dividend or XX% compared noting XX at of the days turn was million. In It's flow payment cash our the and our million, first to up year-over-year Free record the cash inventory in or conversion by record business a quarter impacting working of $XXX share. the

flex PCB to First, Markets due is revenue sequentially. expected seasonality in the Advanced to our market, decline typical

we year-over-year our to advanced on However, markets a considerably revenue expect grow basis. from

headwind constraints a supply components quarter. expected in on increasing Second, third be the certain to are

$XXX our point; million, expected or of grow Excluding plus percentage given gross third of component XX%, expenses the impact overall have mix million. business anticipated and plus on constraints X and levels, $X and operating current these revenue product we we sequentially. to revenue estimate or minus margin levels, Based of quarter minus

is quarter, XX%. And our interest rate to approximately expected be For the million. net $X tax third is expected to expense approximately be

net assumptions, earnings third we quarter plus $X.XX per minus expect diluted these or Given of $X.XX. share,

the Let's now for to Q&A. operator turn call the back

Operator

Ho first Our question Bank. Instructions] [Operator comes with from Sidney Deutsche

Sidney Ho

a how does market? advanced guidance, supply the just it's the there you And when Can guess second impact constraints these side. as the it a do the have constraint? assumption hits And on on maybe Or and And both start that second sounds have to quarter your questions like does you going the quarter that supply to supplies thinking part we margin lastly, just semis I your is be any of should impact guidance? quarter semi. this about impact away? third in in revenue constraint revenue few quantify for the compare as

John Lee

of questions are coverage so I'll Sidney, to to remember it's welcome there, of back There them. try us. every four John. like Well, one

easiest answer constraints, versus whether markets. in market to it was is first semi in think QX our mostly our I one We the mostly see semi advanced that market.

So going semi pretty to just the the high products of because market. it's volumes clear of

So some in ship to were overall There what impacts to we our a fairly very working believe allow closely to to their them revenue, that we've been customers. with one. the we of but customers able needed they QX. were that's Impacts easy terms

a if we as upside of I impact imagine, We're quickly. fair know, in, planning numbers in think the the in little being to in be quite as could That regions chain, comes guided. things Asia. guidance. in also components. want these to amount a prudent our we to There's worse. outbreak But Southeast certain have are of was prudent. COVID, you is on the that. the can But And again, you change electronic that semiconductor QX materials can important We're supply

We be And to prudent Sidney. your might with when think trying was point I really there. of do this guidance have we're recover? view So we our last a don't,

in everybody a hard working think There's is recover. the very supply demand. try of chain I to to lot

and fix in is semi, customers robust our is for from motivated a the really so these it other heard chain. things. everybody You've people This supply environment to

they customers working our to look we make meet can customers' to so demands And their to forward with well. that continue as sure

Seth Bagshaw

just question the add margin going Yes, gross to question your on forward.

and had robust, years. So got we for it as cash our a we've place recovery you pretty program, call we've of profit know, a in number

So cost structure a kind our more effective is forward. be on our of always G&A going and work

division. We of surcharges are point, XX%, definitely components or some X seeing at much model the some house, our And on and our hard our those offset line with in side Analysis see the think guidance volumes. in minus you'll of plus to operating QX Vacuum working I pretty elsewhere. at we're But kind is semi that

there headwinds headwinds kind there side, years. we're to managing But the kind in we're sort of done working some is any we for offset cost a So of of again, the through. on pretty hard which additional what we've of is, number see definitely

Sidney Ho

better of in you building would assume question I on do and kind visibility especially getting visibility quarter? stretching. curious visibility, lead go and follow-up Or and order well, you these your of would of your But current just beyond side? do a constraints how backlog beyond the away? as into revenue build are is characterize supply QX and go QX, times semi backlog your terms some the QX just Maybe missed is that they the in maybe they

John Lee

next are is the would that as industry say in over several Yes. the the very of we rest agreement outlook guide robust. this quarters I quarter. beyond so know, don't But with Sidney, you we the

just I in pushes up quarter. it following think anything made gets don't we certainly if the right, bookings, The the but they're out that, usually guide very, strong. So to very

hard So meet to we're to demand. that working try

Operator

Wells Our Fargo. next question comes from with Joe Quatrochi

Joe Quatrochi

Just another one the on side. semi

being of insert kind into do ship, door. a can't get how Or of products place think you that product tool the bit out ship about to sticky ability unable ship that, customers, curious, they we if to competitors' you're then think maybe one more common? Just either. to if we one in their about, a specific their those should can't to your that Is your of little as

John Lee

question, good a Joe. it's Yes,

I they're work. important subsystems think designed we've of in our their to the kind critical with been customers, that how tools very

difficult very, And think folks very to that it's so just change for fly. the I to try on

So change steps. copy a a is steps chip Nothing all is it in to sticky have This very Making X,XXX of business. the semi X,XXX can the because industry. legacy is yield. exact

concerned business, it's not I really sticky we're Joe. think So very that, a about so

Joe Quatrochi

wins another about you wins big Perfect. little Can some quarter optics how started you more I that do follow-up, talk how impressive us looking especially, in you of is And forward, then think a profile I business? we as growth maybe guess, the announced. And a remind that to that just EUV. just think bit about

John Lee

semi In $XXX the are which some customers that's part Yes. key of general, is to where lot a well over optics on, million that world-class the focused there. of the business, of

haven't detail, But is. growing. We're really it We these with that give design happy exactly you much how really it's wins.

the know, you kinds of wins very are design are very, subassemblies stickier very, into tools that than, sticky, the specific in optical optics As think, are area. very tool. these and intimately even Vacuum These designed I in these

Operator

from comes Stifel. Ho Patrick Our next question with

Patrick Ho

are get is of much in can Congrats on at certain is questions, the inability this like Or it it's not there the what actually moving Versus lot components? there it is strong, just And qualitatively, to that I Given the to How get required a of to some chain factors of much from time. parts of X coming lot just quarter. you're mean other? inability it you demand of know the that supply following John, different on dynamic. But the a parts is maybe and involved? I moving continues able or just how the nice give, get up to a -- are increasing. be certain by very the volumes?

John Lee

for great We add that's Yes, little color, can sure. Patrick, more question. a a

all almost cases, it's in think quantity. I about

the is chain So supply constrained. components whole entire for electronic

there's you allocation through. any it's mentioned, lot so going on. about not price that as a Patrick, really we're of it. And that And get working increases of can't Seth quantity, But

Patrick Ho

bit the is you've about be follow-up it. business? the to little my the what the recovery recovery of Again, looking you're a Maybe and Light get nice you for you show the in starting to finally the wins we more of that business things value on that question we when a ESI Are of and that markets. of those terms side advanced about businesses? And of talked should that lot talk Can economic PCB Motion drives some of side is something starting XXXX? Or at seeing type there? acquired

John Lee

it now. Light to it QX. steady it seeing that recovery the QX. We the in continuing recovery expect QX, in be saw certainly continues We we And Motion the I see in about started We we're and Yes. talked think continued quarter, the seeing No, recovery well. in it right and -- their in markets. we businesses as this all

have are those nicely become leveraged, Light we're markets happy growing too, really and and Motion -- So is that of now. come back have

Operator

Next with question Krish Cowen from comes Company. & Sankar

Krish Sankar

actually of I have three them.

if supply no have September quantify has quarter can been would your revenue John you guidance you constraints? said, one, had what First

John Lee

QX have once than I but to the to I'd same to remember I uncertainty. range just But normal, a it. be we ask and of thought the maintain three higher sure. think at that Yes, little because as all guidance you're going

million, expanded $XX guiding be it. minus plus We million. to to we're about the range we're So $XXX trying prudent or

a constraints the So relieved that potential of upside throughout think, quarter. sense, if the I material you get of kind gives

Krish Sankar

at then that if just follow-up customers asking more large on reason is that. seeing, that transient evening, your And like it Are a The who a you constraints one is, a issue of as normalize temporary follow-up. these And not you are is soon? should just guided last this constraint side. yours. they I they are their look just should of are quarters guidance it from a thing, the Or couple bad as that then in just on we're And inventory? pulling had is in normalize final I'm one wondering,

John Lee

cyclicality, if think I remember, our No, E&S this normal their back peel you coming Yes. quarter, annual cyclicality. has in guidance

So could QX. QX, as in In less. gross $XX on million million seasonality, because was and you the that of in order $XXX saw, revenue E&S the be XX% of margin

consistent in so with And if customers you the of do other math, and I take some -- semi that fairly you space. the think our we're

Krish Sankar

in just And a is September guidance Got much Control? final revenue How then your Photon follow-up.

John Lee

And by But prior subgroups. rate million not Photon $XX to a was a Control record We're quarters to $XX run that, for of guiding revenue quarter. in million between Control. kind Photon are of in these

they're semi. levered to And so as you know,

of And are the Control. of so those kind for numbers Photon ranges

Operator

question next with Scott Securities. Graham from Rosenblatt Our comes

Scott Graham

print. Nice

John Lee

Thanks, Scott.

Seth Bagshaw

Scott. Thanks,

Scott Graham

not a little that wanted horse dead Could beat it the I more third the to call on a fourth to a chain, gap. be understand bit larger supply quarter? the let's quarter, than But can here.

John Lee

lead to and that. say just the could demand Well, the that, Scott. bookings I'd

for on scenario, think depends catches Scott. how constraints supply not really is for that out that. there the a it relieved, I'd we're fast leave scenario. But the far. the industry there But of demand giving kind And is kind demand that up. at of I obviously, it that the get how

Scott Graham

foot forward. little point easily if always for expenses their forward is so talking that foot best I always run bit situation here their sort much Yet customers And The those guidance of of the obviously, like speak. just people to quarter I I do at bit? IDMs at quite the normally, a a the chain, question your And could is starts seems Everybody part outstripping best and demand that essentially will than top better to equation a next rock think are least some the extra I'm putting when actually demand, good. giving then putting you we mean now, you the here what Krish's so. not of off bit guess is you're But demand end to wondering a your the equation the remains of and a at have of that in the supply, And is, to us just with elongate demand little cycle. of if I'm little cycle. falloff think And the in which a just on what about there's or and about customers elongate take concern wondering are maybe would that maybe what side all that that. be

the and might be like that? -- demand Just lost. Are you hearing anything

John Lee

Yes.

As don't far we any right see as can see that. Scott, of now, we

to customers a Our to I demand. And I the market up, their continuing ticking because historic norms, we would of it's and kind of of think a customers, is see industry. it's it's end CapEx the are semi. still pivot semiconductor think, And for I on you within growth think, in the long-term high be and pull always growth they great long-term agree to intensity but it.

be think I in supplier chain. semiconductor to really a long we're key term, pleased So supply the

they're ask best the probably the drop. point, whether it's demand a up to chip so guys, and from what And read your to But to they right. all I've see

Scott Graham

just That's maybe here. more want in sneak fair. I to one

of acquisition inside quarter? if you a wondering is closure and with And that its Kind initial just What in this I'm first So with mapped already -- on that out. the points lot fourth like focus very of expected are company. you've things sure days. the time, I'm of your exciting obviously, the crucial in always What's a I'm Atotech, acquisition, these sure, the XXX

John Lee

careful Yes, Scott, any be terms we in commentary. But little company. have before to close well-run a Atotech a is of

these markets a bit synergies the We the so is amazingly little PCB communication of even about in by our there some listen first enabled talked the revenue in to it now the talked And it chip so really PCB. little chips They're combination. the about large this a a discussion to growing. ability announcement well, advanced powerful then bit Atotech And We the about packaging, lot for chips limitations this harm. And if We companies interconnect. to talked And don't it acquisition. about in connect potential we've the being of that no was week, presentation is you mantra I do you little kind have are speed. bit think of their other obviously, call doing a script.

I very the the of this are is chain. people density, that's in exactly old the chip of addition think dense companies rest levered to that think that And kind investing a the large the in. stuff. technologies It's PCB lot supply of of things PCB. is And really kind high to, is Atotech entire

we're them And closing met integration. We've great team. really about forward a this acquisition. It's look So excited of now. many we to

Operator

Our next question Berenberg. with comes from Paretosh Misra

Paretosh Misra

Can you supply business Power your this of And up? some were you're RF much color sort provide on sales chain experiencing more business? issues what How quarter? in that

John Lee

and points market Yes, But basis Paretosh, on XXXX. year, our growth sorry, of XX power -- share points, was another record. -- We last gain and that's know. don't as the you break it X,XXX out XX%, specifically,

really we're about excited So this.

of aspect etch, I We and scaling power. DRAM. about XD continues. customers continues. And NAND NAND think that's you this -- towards heard our or actually high these how enabled talk are It's by really working by XD VNAND, ratio trend some how vertical think is which not just verticality talking RF is NAND. on XD people -- DRAM. our This enabled We're that's

tools. takes think step-up another I vertical in process the need you'll that when So for see off,

Paretosh Misra

chain supply in you that that this And any quarter? experienced issues business

John Lee

have the Not product will components than instruments constraint. products, we has and that any Any have. that electronic other critical subsystems that all more

of the that, competitors our seeing the that. seeing are think is industry I rest

not just So for more everything. electronic than anything components

Paretosh Misra

color and markets book Motion segment are terms perhaps driving And on And demand you of then if you end the are which laser in any could and within maybe your business talk what seeing there. about the order growth? Light

John Lee

Yes.

talked And of Light applications, Part talked growing that by using sequentially solar sure. for a advanced on industrial is about on -- then that's little Motion I driven electronics group several bit manufacturing As quarter that quarter. also and quarter last the just We've have lasers, but and turning shipments And first design of we're the wins seeing the picosecond importantly, design. over into volume then our lasers. are some about that orders. use a months, and volume in laser those now XX lot of we more UV

And area So to growth low that's share. for very we momentum coming starting grow another we're from have lasers. where -- as see well that

Paretosh Misra

last the for your perhaps acquisition, on one And me Atotech.

closing, on think the your of transaction? you announcement? you what's progress terms current the And In when can since expectation that to process as close any

John Lee

the Yes, various Paretosh. the it HSR probably depends at a lot take, or countries. of on and and Nothing XXXX said we give announcement obviously -- from a late the changed lot approvals and filings

changed. has nothing So

Operator

from Company. Next Miller the with Mark question comes Benchmark

Mark Miller

on increasing quarter. is wanted of just of because that? Or to DRAM And that EUV. for Are see talk their another spending capital record about starting to some to yet come? was transition -- Congrats forecast one are manufacturers a you the to

John Lee

we to kind don't I in could uptick of the EUV specifically demand, causing Mark. any point think

talked really else. that more the We've the it's because really smaller future a able past for an EUV I just and more think all the things you're chips EUV the actually more today applications enabler for in transistors EUV that talked therefore, driven for all is Certainly, and about. more by shrink and more and we've is is need driver the that everything etch and is occurring. dep great make adoption to

child beyond And you're about one for in occur, think But DRAM will well. on as earlier vertical years. so XD lithography And trying eventually what poster get last the I about structures we around limitations has being to that then be pattern the et of also driver where to of cetera. more NAND multiple couple is EUV talked a XD

there's vertical driver also So for toward a now well. as DRAM. logic, EUV is structures shrinkage, But shift big the

Mark Miller

lower. will by sales coming SG&A R&D be or somewhat You between on or that split OpEx, approximately them? Is more though in guided even million up $X

Seth Bagshaw

Seth. It's Mark. Yes.

the kind it's is We I So really major in a piece year-to-date out, that probably driver. an accrual-based the That's the of that, it. based no changes. probably annual type bigger way and ran compensation. there's But of variable changes really rolls quarter. And approach. bit it's think a Other than can is bigger variable around on competition a much cost little quarter really it more there's by is And comp bounce bit. little fundamental probably don't structure. our

making side, We might year. are leaning say, of in I back adding into R&D. a more few half the be little a would some the people, I investments R&D obviously,

Operator

not further Ryzhik any I'd closing turn to back the David I'm this questions time. remarks. any at And for like to showing call

David Ryzhik

all you, may and for Kevin, in your call. MKS. you interest you for us and Operator, thank today joining Thank the close

Operator

gentlemen, and Ladies presentation. this conclude does today's

You may wonderful have and now disconnect, day. a

MKS Instruments (MKSI) 29 Jul 212021 Q2 Earnings call transcript