MKSI - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the MKS Instruments' Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the call over to Paretosh Misra, Vice President of Investor Relations. Please go ahead.

Paretosh Misra

Good morning, everyone. and President John Relations, Executive Lee, Michelle Vice Vice this I'm Officer; Misra, McCarthy, by Officer. morning President President Paretosh of and Investor joined and I'm Accounting Chief and Chief after quarter XXXX, website second at close, for our posted of released financial which our Yesterday, results market the investor.mks.com. to are investor we

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

regarding we call, the and various and financial Unless our noted, non-GAAP to will discussing the section gross our Please posted During measures. refer other statement-related will be presentation margin. to all measures website revenue measures. and non-GAAP financial otherwise financial a non-GAAP and income non-GAAP financial than the Relations for Investor release press reconciliation materials of GAAP information our results of be our

division, investor please For a our detailed revenues breakout visit of and market end website. by

Now the I'll to turn over call John.

John Lee

morning, good everyone. and Paretosh, Thanks,

investor sell-side where be earlier career. of hearing our you'll Paretosh already soon. a strong of I Relations. you MKS by him and start brings and in Paretosh. new MKS glad welcoming research, both Vice in assume onboard, me We're Paretosh to him President covered know from his number as have Let to may he experience Investor relations

progress the In have to MKS' search share not-too-distant news CFO. in to addition, very are for our making I future. we on good next hope

$XXX guidance. of of end million and revenue $X.XX, end with our guidance quarter of second strong EPS our of high at high a delivered MKS the the exceeding

Our convertible of Term EPS tailwind, B without interest guidance. exceeded $X.XX end high benefit expense and even paydown. offering this our But recent approximately the Loan our of we included from still note

results continued well company financial for positions Our eventual which market execution, recovery. excellent reflected the end the

addition proprietary above performance, In and and reflecting to revenue earnings focus maintained well we consistent gross our as as solutions of value cost strong our control. our differentiated on margins the XX%,

new benefit than better of of third-party primarily were management a guided hires and and compensation related lower-than-expected expenses operating timing spend. the Our costs, result prudent of as to

sheet, execution proactively long-standing where solid extended to Our the balance we leverage. of our our track continued managing record

Term the our $X.X We quarter, X.XX%. convertible paydown closed a the used fixed note net which Loan interest rate significantly reduced of proceeds we B, billion upsized our cash to coupon approximately an of billion at $X.X expense. offering During

a connection $XXX transaction The The shareholders Loan our positioned and will offering we loan to prepayment in million our dilution was Term detail. note discuss repricing. with to potential reprice made convertible us more B existing Michelle also also transactions, call through in the mitigate that which structured July, to in on voluntary capped

While muted see to execution, our we with demand. we are pleased market financial continue

to results are expecting revenues. quarter, stronger-than-expected with the now second in revenue our in second line Given half we half relatively first be

to several market continuing over a semiconductor our quarters. positioning, photonics win Highlights product our the about market strategic encouraged and we believe expect categories. gain certain share very include within next we will We're we are that ramp in

markets recover. our great and proprietary packaging and relationships combined MKS put advanced our portfolio early-stage a of solutions, very and some semiconductor design of with achieved strong and electronics our wins also breadth revenue and depth in synergies in packaging in The markets, products customer We market. the position when our

was our I'll to Similar the by markets. our revenue our in quarter first end trend demand performance our results, driven Now market, higher increased semiconductor review sequentially. X% primarily In X in-quarter revenue conversion.

second should year third recovery largely reflects distorted in quarter Starting the quarter, ransomware XXXX. in incident year-over-year the that given quarter year-over-year QX be from The the comparisons prior are comparison normalized.

exception we're the improvement, early seeing signs and DRAM With of of Logic/Foundry investments. of artificial especially in support NAND, in intelligence-related

high the challenges. to areas step in device-makers new key leverage well capabilities positioned MKS our investments logic solve architectures and As broad up is most as such difficult bandwidth [indiscernible], like technology memory to

architectures Solutions that semiconductor Vacuum etch critical high the yield more enable manufacturers products help become chip and processes Our deposition and as complex. achieve throughput

provide we and Solutions, metrology growth highest investment. Photonic WFE of currently our one to subsystems applications, inspection lithography, key In areas of the

optics As WFE this no we integrate MKS earlier, provide, create continued outperform unique world-class I can mentioned to else our great starting This one unit multiple a win strategic us in how solution category. initial have that initiative, through this photonics an production a technologies highlights win year. example to for of is with we that a how we is and had

have term. the said, provides seeing opportunity key margin, quarters, believe innovation embedded good fully in provider. on very ramp for is critical quarter, that to we some unique view this next industry on remain which third cycle. customers over in bottom product our industry this for we win Until In our reflected we to we bouncing us expect Semiconductor with capabilities. the up-cycle, the production is our the any given results. QX Photonics pressure all This are exposure position a be we're slight the Solutions a the subsystem next an along enabler That sequential that reflects we of of We several of continued revenue our will division gross and a slightly drive exciting revenue long showcase strong broadest basis. It the over that down a great are

We Turning to growth Packaging. double-digit saw Electronics & revenue quarter-over-quarter.

At included server demand market. the to primarily is increasing New Lunar QX the equipment included investment by a servers, which total driven was Our represents which results revenue QX, in sales some chemistry strength with by small but seasonal also led proportion performance sales Year. AI present, sequentially. of relative higher

revenue in We electronics and on QX basis, for while PC market of expecting sequential and we are down wait recovery. be a slightly smartphone stronger to signs packaging

We can opportunities. chemistry laser drive new are about and combined excited capabilities growth how our

capabilities We a revenue individually We've will key represent in win with continue in chemistry satellite points early make good in early deals the from our chemistry progress synergy a to a supply notched resonating with are that standpoint, the chain. player customers. achieving These plating and small combined win are laser LEO QX. but proof smartphone design an in synergistic including in space, copper also

to business trends by be semi our that packaging and that complexity, believe increasingly continue electronics miniaturization, our We driven and chemistry. drove will namely the business, same

a our you of in to combination recent tech learn visit Atotech. to some the Berlin point, strategic our about with our more rationale underpins center that this At offering of optimized attended interconnect

player and at only customer to our combines the expertise the PCB are we broad are substrate and tools and We who combined with chemistries key technology levels, plating engagement. relationships drilling increase laser leveraging inflections best enable to

business. Specialty products vacuum market, revenues with our photonics automotive In softness our in and Industrial revenues about metal X% but in categories, stable finishing select general decreased for sequentially, Specialty

margins and As proprietary strong end span leverages related a and and and numerous applications incremental cash our several market markets comprised electronics within that our packaging, and R&D reminder, is providing Specialty semiconductor, generation. technologies of Industrial investments

of industrial contributing more our area example this Specialty in chemistry relatively developed market path It's Solutions consumable-driven solutions. an that the increasingly revenue the margins, markets. also customers environmentally and hexavalent with a is the trivalent been as in await of provide recovery, for we As from and division broader both we seek automotive great from our Materials source chrome of company the steady has sustainable Industrial innovation industrial electronics and solutions a chrome market of suite the provides A strong to decades. packaging friendly to used for automotives sustainable have

believe We in received surface X applications, orders solutions leader pioneering end-to-end through deliver our cost-efficient TriChrome and processing a new for OEMs QX are we for sustainable we that Solutions. in

can benefits innovation life is equipment where extend our general creating chemistry and and metal reformulations for finishing the recycling our processing equipment Another equipment savings through we in environmental investment customers. solutions solutions, innovative

in design here have recent had multiple months. We wins

we Specialty QX. to in with market to Industrial line Looking QX, be our ahead in revenue expect

execution up we wrap pleased saying me the are by in performance second our and with Let quarter.

We are generation the cash to profitable improve fairly growth necessary our end drive and in taking historic demand across recovers. our the WFE with outperform Consistent performance, we're when as our remains market stable steps to markets. ability confident

semiconductor product these broadest both to the packaging problems. markets, have portfolio solve hardest the expertise we our across leverage electronics and our and spanning customers' We markets and

across us the unique Our into view breadth that important gives electronics upcoming a an advanced ecosystem. entire resource makes inflections us and

our cover to let more turn it financial Michelle to over results Now quarter in detail. me second

Michelle McCarthy

and everyone. John, morning, good you, Thank

$XXX range, driven the quarter, and and million, guidance of X% up by semiconductor and high MKS For electronics revenue. the better-than-expected second reported sequentially our end packaging revenue of at

Second our million, revenue X% sequentially by conversion. and primarily well was of quarter expectations, ahead up in-quarter semiconductor stronger-than-expected $XXX demand driven

be comparison the comparisons results starting ransomware the recovery meaningful, for second not quarter. normalized is from in semiconductor should third year-over-year include of John our Year-over-year mentioned, quarter largely the with XXXX. XXXX incident As given the quarter first

Second increase equipment an and XX% in seasonal strength was and quarter of electronics led result year-over-year. X% million, sales. by This $XXX was and chemistry packaging revenue quarter-over-quarter higher

from XX% industry-wide year-over-year chemistry as currency in softness the foreign of of second impact recovery we sales are XXXX. the Excluding pass-through, some and quarter seeing grew palladium

overall, distorted of has our Industrial recovery quarters. Revenue a and ransomware our the Similar multiple a over from result our $XXX In market, of a Specialty quarter-to-quarter guidance X% been decline sequentially from result of just can revenue year-over-year the fluctuate was the last below end stable second the million, is expectations. generally comparison but as served, semiconductor within trends markets to incident. market, as X quarter

gross John nonrecurring sequentially margin expected to our costs favorability end win to We start-up Gross to the first the guidance. in world-class XX.X%, as in quarter margin including was as mix, division, optics Photonic well due representing margins. quarter down items impact related the of from the the reported Turning as product of second our Solutions of discussed. high as

strength to continue product of our the differentiated margins reflect portfolio. Our

lower new third-party well to especially the million, expectations. manage of quarter with in well regard expenses, planned spend. primarily coming with benefits to by lower prudently expenses our We continue as our and compensation of $XXX costs second as hires was timing This driven operating below

of cycles, near-term our We record with are long-standing market profitability track investing balance proud which our managing structure generation. and to our allows cash cost us of business in throughout

will remain increase we expenses run XXXX. ahead, expectations million million $XXX earlier of of rate $XXX quarter to operating balance levels but for Looking the from expect second our a below

of driven by guidance, lower operating our strong end operating an million, quarter margin was of yielding XX.X% income higher operating Second and and margin $XXX the sales, high expenses. above gross

our offering of our was guidance end quarter also billion EBITDA high the May Second $XX at below savings with million, adjusted was $XXX reflecting margin. Net interest and $X.X million million, convertible of XX.X% note $XX closing expense loan expectations interest paydown. term B the above a from our of

the proceeds of B under XXX and billion which call of any be event save As to interest rate stock over points. basis capped of our a rates, $XXX.XX, when entering expect exceeds conversion result stock repay until was of cash transactions, over $X.X net by there price facility, used interest of interest our Term we shareholders effective current our double announced no Loan $XX price reduced dilution into based the which notes borrowings our transaction. million will in we will to annualized the on We the

expect We cash of savings the sheet. our will those accelerate deleveraging balance

reprice of convertible interest. remaining XX in the an offering points annualized by addition, July, Loan the balance of and to our B million positioned basis saving Term rate the interest cash additional $X us In note reducing

$X.XX free execution rate of earnings net our is quarter B Free convertible term strong $XXX the our reflect earnings was per offering as note share, paydown benefit cash $X.XX quarter interest reduction per note in loan mid-May of loan the the ranges. flow for expected third XX.X% term as well These a tax B quarter. partial well only well our above quarter performance from share or were represents as flow in from in expense $XXX million. Second and approximately million lower-than-expected $XX given cash was unlevered million results paydown and recent diluted convertible the operating represent to a of share guidance and and The quarter. $X.XX the offering the per as

our of trailing ratio million and We more cash, leverage closed Gross $XXX on $X undrawn based $XXX quarter liquidity, equivalents and short-term $XXX investments billion billion, the net comprised XX-month credit of and X.Xx was $X.X our revolving with facility than million. second of of adjusted debt our of cash was million. EBITDA

free the reduction based paydown continue resulted loan excess made flow $X interest to million down cash our in expect debt evidenced July with in to debt We to parallel an rates. as pay prepayment repricing. interest our our in term voluntary $XXX by on cash current This prioritize annualized with million

this To put interest rate annual our debt perspective $XXX year, with million. of around we of an entered actions the impact approximately expense XXXX run

With reduction the been Euribor value to taken in the that million. and approximately we've has the actions reduced recent year-to-date $XXX rates,

During paid we $X.XX the or quarter, dividend second $XX per a of million. share

that, I'd turn outlook. John, John? to With back the our like call will to over review who

John Lee

Thank you, Michelle.

me third quarter our now to turn Let outlook.

second outlook of quarter market market, expect the half industry of line with We is be million, And or recovery million, revenue to our our third revenue Revenue market as $XX quarter expect million, slow we $XXX be plus be our $XXX bounce end $XX million, is plus the in semiconductor We $XXX to bottom better-than-expected electronics $XXX cycle. minus a reflecting second is as plus million. million, half $XX now revenue be Industrial continue from our relatively revenue expected minus to path or By $XX first to to from or market levels. or this minus follows: and continued from million. expected along expected Specialty and to market minus million. is packaging plus

anticipated basis expect gross mix, of levels quarter revenue XX.X%, third Based product on and or we minus plus XXX points. margin

or quarter third operating minus million. We of million, $X $XXX plus expect expenses

adjusted $XXX plus minus an run is million. appropriate believe we estimate or of as fourth the expenses, million manage to quarter for We rate continue EBITDA we $XXX well. As million, $XX

offering expected convertible by per roughly Michelle mentioned, accretive paydown As loan be to $X.XX is quarter. the recent note in and the term share B third

rate expect approximately track the XX% we full rate for expect We to of and to third in remain achieve fiscal tax year. on XX.X% quarter, tax a the of a

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

our for of shareholders. our our in and end has positions the key to for how proud customers This, with markets trends I'm cyclical along product us softness technology tied the upturn. markets next delivering end while navigated well secular differentiated and team our our portfolio in our cyclical

please operator, for the Q&A. that, With call open

Operator

[Operator first Instructions] Our from Morgan Joseph Moore Stanley. comes of question

Joseph Moore

good. driving and and takes you your gross margins QX talk we the as the quarter improvement? at guidance Looking was in pretty margin about were gross stronger puts expected what's that Can and

John Lee

gross is nature margin of reflective proprietary I the our of Joe, think the products.

But I remained good think in bit there again, gross mix headwind was proportion a good well product the did was a and mainly revenue revenue. we MSD, service. a margin And well of improving note of margin as as little gross also as PSD. chemistry VSD

today. the that's of So right XX have our basis to, give we take, the think to way really range that or XX.X, margin points, about gross with of XXX mix kind that current

Joseph Moore

of early either NAND second half any are And Great. this follow-up, or the a about I next picking as spending, year year? side, indications of can seeing semi on separately, you ask up

John Lee

Yes.

it's does think have that, read and little the you predict we I we to to year. a be hard I read, think seem pushing maybe think the view guys to bit but things relative industry -- the in same early NAND out I

So great know, NAND. we're along you some the solutions proprietary very there. have And still as bouncing we I for bottom think

we'll a now, up, that's But longer, bottom little certainly picks with enjoy right So little think market I along and when the a think Joe, view. I we're that industry pickup. consistent bouncing that more

Operator

of Vivek America Arya question of Our comes Securities. from Bank next

Michael Mani

for is Vivek This on Arya. Mani Michael

reported second market sequential half. a growth so major I the off, relatively indicated far the First of your think into in have strong customers semi some

how should you're muted reconcile monitor? Or a other guess, the I this And what more of is function trends in we before more occur, signs a can some customers look largely can it should utilization? with of seeing So QX? are these upturn we signs we for sustained there

John Lee

our in kind the short. pulled And pretty have that's happening our which into good. things the unexpected, well is this shorter. because little And been times, quarter, lead limit does the is as last a our non-historic noted more a of that lead and of you will, of is MKS if times one the They in, there times as which in with call as are lead think I the conversions in-quarter time we visibility now Michael, lot bit. are that industry pulled

-- half, we'll so be that remarks, us And But But agree for some as us. much we'll see they first said best relatively half is would kind happens we customers to that that than of in I QX. second consistent. can was I indicated see we our note, second right that see half prepared that coming have and our do of now, the into that. had we may better the higher is and certainly, need equipment, expected some if And they there if QX

Michael Mani

Got more how the it. And any way long-term frame it's And this you the could color for the ramped MKS? could photonics next, on optics, growth fully the strategic quarters, to within Once next there much quarter. contribute potentially coming in market to any opportunity is over year? photonics the share

John Lee

portfolio, multiyear investing latest industry I of think because we've things unique that have had and the no the our a one of in else of this We world-class believe capability is integrate in a many just we that example optics. we together can. broad strategy can product

longer and less a gotten is it. beginning costs. the this and is until start And little we're time efficiency so have start-up Cycle units. you a big the making to in in beginning is manufacturing efficient win There is always happy more the

supply the of the of more As parts, down. pricing parts you order obviously, goes

of beginning, a So that on little in we normalized. but have kind the headwind that's do

which it's world-class we'd believe to And we our continue metrology, grow think why in WFE revenue point current that's we So lithography, and of part down-cycle. the inspection effort out, bigger during growth. to optics, just of outperform our continued has think in I this even I reason part can

Operator

Next from Weathers DB. question comes Melissa of

Melissa Weathers

I that bit we in business? I summarize wanted about Can Industrial think thought think came you where business. than you recent quarter. the I in to Specialty in the are what lighter cyclically little it talk a

that do parts we different know I think about how bunch are there moving of So cyclically? within it. a business

John Lee

Yes. question, Melissa. the Thanks for

up at over that sum little had we we time. look it look of can said. this this and at for a think be as It different stable. at And kind expected, term it at we've made Specialty year that at markets stable, I of not would of seen lumpy, I was It's the we look quarters. that a to we something of these past several cyclical. a down up revenue quarter I look tend pretty you Industrials. That's as bunch still why -- and more it in is than perspective, a kind to longer when at look would very

So depending segments, it be of can sub the lumpy markets. sorry, on some

Melissa Weathers

E&P Got How servers. demand PCBs think quarter, seeing related you uptick about side, high-density that AI for in talked multilayer last is to it. you AI? momentum still the then from I And trending? an on Are business

John Lee

the still proportion noted the and public we that part And we is smartphones PCs a know, that you Many companies little so relatively of the it. -- think and that a of proportion largest momentum. they're And is are of can servers small saying. as PCs non-AI muted PCB to AI you But of in are are PCB it's smartphones. our customers, market. good more still increasing. still before, do. levered customers the and is are we market driven I Yes, that AI bit there's them what by demand and as And thing see of many because those see of

Operator

next Company. from Jim Ricchiuti Our of comes & Needham question

James Ricchiuti

follow-up in John, if was and little the was a have I performance like And was wonder that back can little on to go expected. bigger equipment I chemistry bit you wanted outperformance? sounds QX, It both to on to a better driver give question then I a E&P. which E&P the color more which related. than it

John Lee

was QX. E&P you everybody really being Jim. still, Jim, you're more in the give far right. bigger little both a and little equipment the to slightly because is just that's But it's slightly know, but chemistry, as The equipment is color, a QX chemistry is QX we the driven higher QX, down. by uptick in as down. our chemistry by expect, of than And driver, guidance

is I just to little everybody with want So color that's consistent that probably seeing. give industry a the what

James Ricchiuti

chemistry you going to is But offer of Got -- for standpoint? a in to it. sounds when see you helpful. yes, you curious, going we by lead I'm a as next PCB cycle booking drilling accurate, Is that then I'm to going parts Or there if more like some possible of business we're recovery expectations, to unless It ask agree the business that if smartphones ship are And kind you be year. see with from better you the That's chemistry? could a to and not perspective. that's booking going more? if could refresh you are scenario? the know, which uptick want it a in orders is followed that's that,

John Lee

CapEx, would point, but And just great investments, when than in those sooner equipment that think bookings, -- we on a utilization some CapEx to CapEx, a we there's if which report big we ship, chemistry lead the should to not raised have would question, in requires a will, steady and chemistry Jim. new But lag, have point. see don't good rate. really your you was If first the the you're people so if that way, with happened be Yes, we a bookings, and weren't so a adding utilization see we bookings indicator. right by buildup obviously, there was upcycle, there business the If systems. that right, is you times there just the laser it's I

Operator

of Sankar TD Cowen. comes The Krish next question from

Sreekrishnan Sankarnarayanan

one, I just have John.

what And also. that it half kind any the in them more and of Your your curious, cut any, kind Intel delta that just I'm how said on calendar September have kind kind and had now wondering fact year But if the much quarter, outlook 'XX? is CapEx. of customers this between in has jives impact, of biggest I of with mean, I'm of realistically the of second

John Lee

down right. Intel little you're think, I'm their XXXX. and our that I bit the did a CapEx sure really not call guide in have Yes, view did of impacted guidance.

view everybody the be up is a the think does think turn the of -- But when is obviously pushed industry, in up But out of thinking about all Our customers kind bit. it the made industry. in you I the XXXX little which to in good. is time has going

what that's similar that's think I being we're to half we're And of second at seeing. kind first why half. very looking

is we're the roughly the into second half. come first I best didn't there of might be end that We that year progressed, I has down. our know towards the hopeful. stick half, think view coming same think year. the now, I the the a think hockey And stronger that right as year, And as Krish, all gradually

Sreekrishnan Sankarnarayanan

me the Intel XX% year-over-year. question growth be a year? let that that maybe a in 'XX number, also calendar camp in, down you way, is John. year which mean in WFE are Baking CapEx will I the next ask strong gave still a different

John Lee

else on Well, be will revenues CapEx is But if headwind to know, well. needed, certainly needed, are all someone long as spending chip I as not spending the think a and that as the capacity the as someone is you is WFE, WFE.

don't my predict going that impact I in better terms I predict forward. I It's XXXX. on really to really don't what very do. XXXX could will don't. But XXXX And of customer, will think So be hard I WFE you and an better. be we fact, still be will on specific But in think guys have we to that and think still

Sreekrishnan Sankarnarayanan

] exposure Got Atotech have has AI some it. Intel, does on that a Obviously, CoWoS. year? perspective which curious, the you And really business on the exposure opportunity some Atotech into of to changed some [ with Got but side. some chips, advanced these then also delays seeing to of you're it. follow-up your packaging Kind Atotech's quick have next

John Lee

I good. years No, from that's PCBs we're of put said in earlier and kind today about out we the the proportion question, to and that utilization anyway. any to advanced most work specific to your of doing of PCB the substrate chemistry our just that next-generation see that really for entire And a that as AI is chemistry impacts still customer we with customers, the Yes. is answer It's of think in have rates perspective in commentary. terms we chemistry commentary But couple the AI-driven business an any -- call still relative market.

Operator

from comes Wells question next Our of Joe Quatrochi Fargo.

Joseph Quatrochi

I just second kind versus wanted to of first flat. expecting now half half understand the

magnitude the half-on-half second half-on-half half. magnitude the a as of is kind XQ. change then beat who XQ It bigger increase flat I the think seems in the kind in in I for think about and Street where like single-digit the beat like the peers, of low were of modeling of a

trying So XQ, upside there from that understand, you the changed I'm particularly just in kind to aside anything in is semi? else of up that put

John Lee

bottom. every don't kind looked big bouncing along through quarter kind at there Yes, Joe, was of the I year, it's a of change. We the think

As the into industry with industries now of there have earlier, that we of more kind of we second bit most the a I there but coming said. that as said expected the of said a I slight would is the year, half, pushout. in an think be And uptick

sure. this is is whatever our now. QX muted, And probably and industry, for for best And had and that's QX more and consensus for so right the us view the

I So not change. much think

think just I we're bouncing along the bottom.

year. the longer than a the we I beginning of thought bottom probably bouncing think little only at the we're we the is, along change might

Joseph Quatrochi

talk in is Or like -- MKS early win it synergistic well? that it. Got Was the plating Atotech follow-up, that just And bit saw drilling little laser as a as quarter? the the chemistry side? you you include a about on and can design that does

John Lee

MKS synergy. Yes. were before, where out. Atotech It's we've won, about as And mentioned And a know, wasn't. And we're in were were already legacy as and X synergistically. about We've past The MKS the Atotech that laser count don't with we we if a in talking what the synergistic. talked these count really in time that we case customer the then wins Atotech we this both said that's synergy. and we if wins, you laser as wins as either Atotech wins guys as that called and drilling ones really

Joseph Quatrochi

That's helpful.

be of of MKS-led clear, to kind one win the is Just that first then?

John Lee

is. It is. It

you in in The we've ones were Atotech the as bringing know, talked other the about laser past, the group.

So X. these are first the

a you're take Because you're testing, et Now qualifying, remember, right? while, wins cetera.

been have for hopefully, wins in have into now on at quarters working we're will turn that, things working this the well. future, right multiple we and we as other So

So group. these are laser first the wins the X because chemistry yes, of Atotech

Operator

next [Operator of from comes Barger Instructions] Steve question Capital Markets. KeyBanc Our

Steve Barger

just in to understand dollars in the percentage I'm about and I that equipment per lot plating run full relationship terms business gets to consumable it question. new of a know can rate, general, to in can But about new and of system? if to installs adds the maybe trying a variables talk or you to chemistry how you sell this of terms there's between uptake. what system we base think it consumables

John Lee

equipment, or know airplane big a the I plating or it we're it versus electronics somewhere. take couple an tools would one. if depends you million Yes, of be about of Steve, thanks -- could one number of I calling. and our you're this, so. talking one maybe for But CapEx, GMF, how biggest ASPs say the on dollars is, But probably the on

would I less think Now of of an order the it chemistry is, per magnitude month. as say,

forever. tanks, So but this chemistry this all and lasts chemistry that

more it. little that kind that's way you going color think about on can of give the a forward. So we We

So because much how does by of course, off of top I margins the by have. it the gross vary don't have could we on chemistry. chemistry, the the my just depending that head And of slightly chemistry the vary then,

XX So longer-term be the happy of chemistry. just that get revenue. I we And that we're prospects think of years about when the really could CapEx, chemistry

Steve Barger

Specialty that start. could to cycle other a a industrial are seeing when markets That's you end does But now. are Great. automotive right leverage revenue and the of you Yes. markets Right. improve? it give little in end outside the a established And opportunities soft good of lot

John Lee

right, been And of Specialty seem I in lumpy. be if that of little said, say hesitant, a of better over is we've seems have times say, more couple business, And was doing has of quarters. but it industrial been the little small doing defense. some of probably that's think markets as to mentioned a in you would But I But quarters. outside a the Industrial to customers last that of one our would the will. well of I couple Yes, percentage you're it the I couple last a automotive

would So as call but markets, up multiple out, really that's I Industrials revenue. one multiple, again, it's our Specialty made of

Operator

it would session. closing Paretosh to now question-and-answer turn like [Operator remarks. concludes This Instructions] I back for Misra to

Paretosh Misra

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

Operator

the you Thank for participation conclude your This in does conference. today's program.

now disconnect. may You

MKS Instruments (MKSI) 8 Aug 242024 Q2 Earnings call transcript