ACLS - Earnings call 3 2023 | Axcelis Technologies, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Axcelis Technologies call to discuss the company's results for the third quarter. My name is Corey, and I'll be your coordinator today. [Operator Instructions] Please be advised that today's conference call is being recorded.I would now like to hand the conference call over to your host for today's call, Doug Lawson, Executive Vice President of Corporate Marketing and Strategy.

Doug Lawson

Thank you, operator. This is Doug Lawson, Executive Vice President of Corporate Marketing and Strategy. is Vice President President today Jamie CEO; me Executive Coogan, and with Russell and Low, and And CFO.

profits forward-looking our website. is statements If the expectations in copy you under forward-looking website review. risks XX-K expectations note provision.These and SEC on as Form it release. management's to safe are our annual on are about our our based SEC's that of a current will revenues, our to other are available Please harbor our filings, press described and for be the have statements on release and issued risks business. described subject our we are which not in available results Playback you report inherent service seen comments other detail press today also in in yesterday, These future urge made

our any statements.Now We the Russell may actual expectations. President and do materially Low. forward-looking these current update CEO, assume from not I'll over to to Our differ call results turn obligation

Russell Low

strength XXXX the you the Good quarter our third third level to call. driven a Axcelis us continued quarter, by for Thank for execute market. in joining power at morning. earnings high in

guidance exceeded per EPS and $XXX.X $X.XX. revenue quarter million with earnings of of Third share

our to $XXX The in to an primarily billion, at area X.XX earnings around be are to [ increasing revenue XX% year-over-year We to per is expected book-to-bill and XX%.Backlog gross $X.X continues profit in share guiding of bookings XXXX margin approximately ratio be the power by due revenue strong million $XX million. than decrease was to year systems approximately is $XXX approximately of quarterly WFE in revenue at billion, of XX% million market The growth fourth with shipments which overall quarter operating slightly approximately with XX%, quarter. increased greater annual $X.X expected a representing system much $X.XX. representing the to of ], remains China entirely memory combined during with quarter third of at than in XX%, overall shipments Axcelis, the power XX%, X% technology of to just strength at of quarter. The more with XX%, for process the more the X%. downturn. balanced carbide Japan system mature Taiwan our X%, The quarter and device consecutive the growth shipments Europe shipments world and was The Korea in U.S. system driven has composed DRAM. third our segment XX% of the rest of mix geographic particular, XX% silicon representing customers going for at and this X%, generated market

existing from We continue footprint expand our with product to win business customers. and customers new

to we leading we our adoption EXE a XE device system of manufacturer. Purion silicon shipped greater power silicon expect a of continue from systems.In shipped Power ] carbide see silicon Purion to full [ in to power XXX-millimeter Purion carbide silicon system revenue QX, Japanese Purion around revenue We carbide total coming come than from of XXXX is The with applications. product Series XX% portfolio carbide system XX% our customers, and increased and to important HXXX

can recipes head deliver HXXX evaluation millimeters XXX conduct split is system. it as their full ion in volumes. product relatively of We underway and is and XXX-millimeter multiple Series that all types higher energy higher give power to across the Axcelis family recipe even highlighted device the evaluations a in Purion Purion system.The optimization only the also X It of these the HXXX devices, dose silicon complete silicon also ramp qualifying have on importance coverage revenue customer Purion geographies. start utilizing systems use productivity the Two carbide X -- ] they customers implant carbide work These the carbide the XXXX. of X are capabilities with the [ customers our implantation ] enables of silicon in to system for by [ company limiting applications. Power

a Axcelis providing on and capabilities. required choice, the the exciting has providing for differential industry the considered increased to family in provide to of using continues product expected of by is high-volume and will the a risk in general in the customers tools power manufacturing the ].Axcelis as downturn market, XXXX. leader support customers product technology and a are markets. market our large performance of to significant implants Axcelis places level best that customer this This Axcelis good number [ currently remain and aggressive includes lowest softness high path supplier This even We support to succeed provides satisfaction. manufacturing means which value in fab mature healthy enabling now

we leading will to through our our tool technology. are base While and advanced needs.Recently, next-generation Axcelis collaboration in-store customers their supporting for logic critical logic development. managing associated downturn, shipped process Dragon a remains Purion technology focused to research on a This with this the advanced be them to manufacturing on close the development future working and institute and customers'

Additionally, and all many footprint evaluation engagements our customer systems multiple designed across increase segments. have we to

in growth model strength these $X.X with Axcelis drive As combined exits power return like the this continued it billion to to will Axcelis healthy I'd markets. industry downturn, beyond.Now will the Jamie. segment turn a over in and to to This

James Coogan

and Thank you, good Russell, everyone. morning,

I to turning team. that to be the quarter, the joining Before the I'm results Axcelis say to excited want for

a market grow revenue I to a has few power past profitability our cutting-edge and team strong this diligently at implant experience downturn meeting a this creating the of in the forward many turning execution. Over years, you quarter. to significant to and worked to position opportunity and establishing products, developing team rare look investor ion through device strong product adding future events.Now industry during my the

growth $X.X year approximately our XX%. expectations results reiterating We are to financial year, And for greater the year-over-year we full pleased revenue than look with our we period. represents which full the of of are as billion,

at due our Purion, silicon the will from share and to XX% of our initiatives third drive the for higher-than-expected have be in on million, underway We in our allows earnings XX% cost remains this for revenues at above model.Turning in market, will lower margin product at margin well and gross $XXX by expenses.Despite expectation and softness activity general per the expansions. some $X.X deferrals carbide well XXXX. approximately on costs execution model gross these billion $X.X will QX which the $X.XX should to that number sold fluctuate of at guidance, to to XX.X% market and approximately from mature billion XX%. for mix.We Execution goods system quoting Purion XXXX margin as strong guidance CS&I power greater model. lower above million segment systems quarter, was in market. focused of come year due to systems revenue revenue in of XX.X%. $XXX.X lower at solid share revenue sales approximately to gross per us revenue revenue support operating power above million. QX [ margin to our approximately be XXXX solid million continue and especially $XX.X modeled a of with come CS&I gross and overall $XXX finished higher Full driven improved and and well shipped revenue in at than remain bookings operating margin quarter-to-quarter, expenses. demand $XXX.X ], initiatives QX margin guidance revenue revenue and was slightly of QX laser and as a at million continued earnings improvement Looking higher and benefiting finished for expect

third at guidance. our XX.X% The than quarter better of ended revenue,

comfortable outstanding further as initiatives saw completed ensure billion of cash will quarter, remain walk models. headquarters and to markets of the fully also in have be in we cash the during both higher This area million flow. from marks advantage We will to Beverly, spending. flow million OpEx of operations. million growth, recently Investments of located Operations operations anniversary model.Moving our Asia we the invest and are will fourth $XX period. manage shipped and we to to Beverly of to facility just continue grow of of been that and increasing handling Korean investments, expect in specialty receivables. with advanced We be investments, by business to we significant X-year in We tightly employees This South our We revenue in focus are flat year-end. cash, The our our generated we a quarter. the $XXX center increased of our needs QX expected have growth necessary balance $XXX center Korea. Center continue infrastructure quarter revenue markets. and solidifying logistics and the in systems fourth operations our the $X.X our the that logic equivalents Most opening will have critical our our technology and shipments an cash us financial short in to footprint to our and place our logistics is short-term provide to sheet we in support and new for the memory the more end facility which our importantly, Axcelis supporting continue efficiency, required ensure infrastructure as We functional and fourth plan has state-of-the-art Mass.The equipment skills our our material to and later over quarter volume capacity the from significant one a achieve new to improving in to ramp

XXXX were their to against quarter. of heights to share joining for of excitement to of helping repurchase These the back new now for future.I we've and few to to share performance. to again, execute the allowing Russell Axcelis my I closing stock operational and my previously level performance reiterate buying since with to We will I've the essential dedication cash their $XX.X the like look innovation in Axcelis, been see over and first qualities continue programs.In total, we our take drive weeks in Once team would to million returned shareholders the $XXX forward in impressed turn in the call Axcelis today. the back and reach team comments. efficiency company improving his our announced with repurchase million In through program,

Russell Low

of due following and in than the XXXX revenue billion achieve growth factors. is to targeting greater expects Axcelis $X.X XXXX. Jamie. is $X.X This in billion revenue you, of to Thank achievable

than few more continue of TAM last First, greater the years mature with in than expected to segments representing implant the XX% and is market the grow doubled TAM. has total to

technology the Axcelis nodes Purion high-value and product the nanometers.Third, company, at and devices, for to Axcelis extensions our product that, devices implant strong of customers have continued sensor from has Axcelis all power finally, want and This the XX customer designed device our customers up recipes manufacturing, growth I'd increasing cultural by fundamental image investors mature silicon positions implant making optimize thank covering a in desire like suppliers, general mature to benefit process and implant highly are to markets. were Second, markets. these only power carbide for questions. intensive making to I high uniquely win open successful. intensity long-term peaking And employees, support.With to the relationships in capable line especially your key it

Operator

first Our comes of Shi Needham Company. Instructions] question from & [Operator Charles

Yu Shi

to nice welcome aboard. Russell, meet and you, Hi, Jamie,

James Coogan

Thank you.

Yu Shi

that. terms Really And want in ship capital I to suggest expected they the there But risk how backlog my backlog is silicon that management of in the in leading backlog. of you player at trending mean, see question time? given than you potential confident West -- lower point that much or previously ship their only first is XXXX fact if good start ]? thanks. CapEx pushouts to the the maybe around do -- how carbide for is on push those I facing seems -- can Well, [ Just the this -- one intensity to

Doug Lawson

This is for Charles, thanks Doug. the question.

me at relative back end question. the Let start sort to silicon question carbide the of of your on

silicon base. with global a carbide customer in large business diverse Our very is and

see good in to globally. And solid that see quote activity -- so bookings, we continue we area

just is And right that one Axcelis' within I look to at the backlog customer within way carbide looking at silicon or general. think so not in

it's your goes, be to backlog let I'll comment of As continues on the end as strong. it Russell front question. far --

Russell Low

Charles. Yes,

sits billion. I backlog, at think currently $X.X the So

-- of about why still business we've to As the memory of power talked in $X.X to comes this continue general is we XXXX. image in mentioned, -- mature. And weaknesses when we've some us, bit noted, which it is strength bookings reiterate market and and been to in into it kind able power little requests than revenue around and kind comes of as Doug sensors, quotes, say, we've expect the and greater are -- of backlog, strong there quotes when for kind a softening the for for billion to XXXX. But

the And lot a and backlog so -- is power. of in

Yu Shi

from QX the be in question the of China into QX. and to the second -- least of exposure. sequentially standpoint, China be QX big a saw seems It level. a about actually to your that exposure at of pickup trend QX shipment also potentially several Maybe who seems your like China the reverse revenue into seems semi-cap down peers It massive from

[ rest you this of QX, the that few Just quarters? of really is ] exposure wonder relative or more for by next in going -- be the is world saw in China probably to your terms I the the mean, see you shipment lower of is temporary dominated

Russell Low

Right.

typically any of this given So And you XX% I kind to in for think XX% as in between it's the quarter. we've XXs said quarter. note, it's

I to be growing coming think always I think also is still online. China a other area us. areas going from we've benefited for But

Doug we a And Europe phenomenon. saw around like said, in it we've other a and world. also seen regions is in and progress U.S. the global So definitely power good

say I'd continue So see China. that strength we in to

focus a given to continue good we for our power. markets, will also that in lot globally, on particularly seeing very of us We a strength as find mature but are opportunity

Operator

from Instructions] of [Operator comes Duley next question Steelhead Our David Securities.

David Duley

weakness talk you've which business. and or second-tier geographic in applications? that's that mentioned about foundry logic regions just you Russell, you from some Could coming Yes. seen the

Russell Low

you're I logic, guess kind of the talking kind So non-FinFET mature foundry, typically the my second-tier about right? stuff, foundry with the of

David Duley

Yes.

Russell Low

more I saw have industry. probably softening bit been this So seeing related little while. the already I you think the there's there. consumer the softening consumer, a -- to in so softening And with in for I spending little We're of morning are foundry doesn't soft across along don't the that we power. to a foundries actually think now about one started note by power was -- That soften but think has industrial to see seem which board, in

David Duley

gross a And margins. Okay. then follow-up on

your gross for margin target essentially the billion for target your is think QX $X.X I model.

going us understand revenue margins forward? should help gross gross might if maybe next So how be we or progress grows how year thinking about margins

James Coogan

Yes.

the between part as is fab basis. process we The into be now the a think forward an revenue margin, working utilization basis. you going driver CS&I process systems XXXX of do on about mix CS&I and as the So maintain be on And our primary strong as a we to margins right to next that but utilization specifically, are expect to in forward-looking obviously, know, gross important in the mix going -- is going model teams of revenue through year.

David Duley

Okay. as is XX%. WFE Final year, me one clearly outperformed being down for you this you mentioned,

continue up the year, flat to XX%. are you next is outperform? think you You guys If to do market up

Doug Lawson

At in Doug. for XXXX. point, the see for any $X.X coming We XXXX. billion is this guidance this providing model Dave, Yes, we're not

bookings We and continue quote good to activity. good see

on so optimistic specific ready we're give to XXXX, guidance. any not we're And but

Operator

Riley from [Operator of Instructions] Ellis Craig comes Our Securities. next question B.

Craig Ellis

Yes. And I third working the forward Jamie, congratulations on with look welcome aboard. quarter. you. to

James Coogan

Yes, thank you.

Craig Ellis

first -- The thanks. yes,

broadly and first weakness? quoting color as to quarter you signs just to so one focus orders, date The have of limited steady, I is some was on seen the do fourth last month, strong fourth Charles provided with could and I you've over activity on thing date, up broadly broadly on been that quarter you wanted what clarify things of if hoping just to inquiries. if follow

Doug Lawson

quarter. carbide. in We the as markets, bookings little good the industry, strength of But or seeing the break consumer. just some think of we're continued -- beyond a I bit some else for and given seeing everyone in softening, quote mature activity power in Craig. Like we're silicon moving mentioned, Russell out Yes, don't there's the the a

reflect bookings and activity quote our think I general So market behavior. our the

Craig Ellis

the And the calendar frame I know that model. on materially up I not DRAM get the But some target issues. expect are mature what would at the you CIS? look potential on then, guidance hoping you with for that outside for see some with you Nice of team calendar the And was you example, gives gives 'XX, within better, and it. finer get up providing some as CIS? calendar of the to 'XX. takes longer-term of just takes specifically, could point follow could 'XX's with you're Got foundry to broadly same and of Doug,

Doug Lawson

Yes.

until never exist ago. So all foundry market, years we few a didn't which, I it suffered think as has a the because downturn know, mature

figure everyone and to And to it is so probably more it out economic try appears So cycles. tied much starting forth. very exactly how to factors

as will drive economy so to XXXX, So I the drive to lot forth so on depend what not drive piece.And that's market going automotive, and the the is spending, general we how think is behave. think is just go doing relative into and the back industrial a we to power which going that, consumer

As far much very phones. as sensors the specific driven are segments, by image

of see And ion look Axcelis we'll how so phones cycle for and this implant. for

technology next other DRAM position. our Purion our the I up to that going capacity see of other strong is are other will of then The in memory those we next relative and really and some the rest And CapEx changed this that to to the technology, drives our and DRAM ultimately HBM half mean, at of the there's lead -- to DRAM drives things. fabs, going use Those year, activity factor focus the then on factor XE second generation and slow drivers Max. products there's your coming point, on the still XXXX. year.NAND near be question, other utilization implant. of -- until improve We China term, or our a XXXX like haven't the some And the in back are VXE it to is probably beginning which

Operator

[Operator Instructions] Miller of Mark Benchmark Our comes call Company. next from The

Mark Miller

Congratulations a any momentum related on I but major EV another to see certainly, been wondering, just strong driver, has do you was AI? quarter.

Doug Lawson

Yes.

think of saying. foremost, really And other Mark. been has and AMD day right? to that the what and said was is I going things, driving by AI, bunch logic, AI is NVIDIA advanced drive highlighted what a first

of it will drive piece as Ultimately, Second thing the dependent the devices for well every it from can big even that IoT gets servers then on HBM is and lots which It's that of it driving data, beyond feed packaging storage it's the as big market, advanced a right? of form AI technology. DRAM and other get, the in drive will NAND. HBM amounts lots in the of

is over it long-term years. driver So many a next the very important

Mark Miller

the You back mentioned for just DRAM. DRAM one that are estimates possibly for coming drivers of the there's one NAND. wondering, I server, your thoughts and back Xx DRAM or factors somewhat I think was is an more sooner? that about before AI of the that Is coming

Doug Lawson

Yes.

which I help. will advanced think of use DRAM, on packaging the is that packaged in DRAM. definitely where That GPU. And general, one. it's then directly an the HBM, is server general

DRAM phone other back, thing refresh PC that a will cycle. good The consumer there's if will be drive coming back cycles,

DRAM things those market help of drive will All the back.

Operator

Jed from next [Operator of comes Instructions] William Our Blair. question Dorsheimer

Jonathan Dorsheimer

to Jamie, look and working forward with you too. Congratulations,

James Coogan

Thank Yes. Jed. you,

Jonathan Dorsheimer

XXX-millimeter? on curious just question the picked how XXX-millimeter? versus guess, up quoting carbide. silicon is I is XXX-millimeter most XXX-millimeter, percentage first assuming on activity on I'm but on on What of that

Doug Lawson

start break But suppliers, XXX-millimeter is pilot their XXX-millimeter that with sort the so a at are specifics things materials towards found production customers fabs. and more out lines, market pushing the their calls many level details. will fabs available, we to at as kind looking Yes, lines XXX-millimeter of of customers many that become our available. plan general, those on the with on those us don't And to material next giving materials recent expanding drive are will in positive our for Jed, ramp of or

of we're the on XXX-millimeter still is seeing production XXX-millimeter. activity, but definitely plenty bulk So probably of

Jonathan Dorsheimer

it. Got

I'm with to my of tool uptime your third difference design than competitors? what your look I'm within is and advantage a is -- cause whether your The is, at as on tools competitive recently uptime some up versus that asking about of be anything XXX-millimeter come curious of be has there would XXX-millimeter? just your lower issues. not we And And question the that may or that's

Russell Low

Jed, it's Russell.

I to significant think don't a So XXX-millimeter there's or our competitive wafer have and technology from XXX-millimeter the XXX-millimeter XXX-millimeter. and handling. We I difference would significant ion the between say, product advantages do in source

brittle with XXX-millimeter very don't are and and you reason a what ] XXX-millimeter As transparent, fundamental not our any there's reliability, I be bode know, why they different tool set. we think would wafers, easily. they're tool But these [ see in that's

Jonathan Dorsheimer

book-to-bill under One we commentary, it. last That's last book-to-bill being quarters but -- was X. X an a anomaly, that helpful. just think the have Got question, it's with Jamie, under X quarter, I around

be that at back above So I'm How the a just of think little we bounces -- book-to-bill? X expectation you is next quarter we're should this kind there into look about do this or level as we thinking bit? for

James Coogan

otherwise good did from Yes. here a overperform below of third helped the quarter. we I X expecting the little we have shipments time relative a think here, to in frame that's did what that were third bit in we know as Jed, book-to-bill to some I for quarter September drive expectations sort that the question.

Board, I'm to here the pass still coming on rest Doug might of question respond. to the Given off that I

Doug Lawson

Yes.

end So a utilization. mentioned was think bit a CSI extra that's the Jed, off as I result at fab that one as is big is shipments the reasons earlier, of little of

So but the keep are, that did it and to us the where book-to-bill. allowed revenues affect -- combination they

pretty big -- high a I unrealistically think some the be of in quarters. were is And book-to-bills thinking the is few downturn. the couple that in probably other fact had to terms thing we've a still about industry a

balance. think it's a of I So kind

We continued pretty and as backlog -- are that's off a well, working working to stay big flat. relatively

So...

Operator

Diffely Tom & of D.A. [Operator comes Instructions] question from Davidson Next Company.

Thomas Diffely

XXX-millimeter. bit the XXX-millimeter, on would like to a follow I question just about Yes. up

same the it different structure X is tools, when look you, you same wafer at sizes? the same For margin tool,

Russell Low

is XXX-millimeter So we can so ship either us, XXX-millimeter. for or a

to and you We do also upgrade that in doesn't trend you that ship field very can do It have long take -- the that field. can an upgrade kit change. the to this

Doug Lawson

being With adoption, following relative to one That us. ends of that for questions on versus sort are XXX-millimeter thing, a up fab -- companies our to XXX-millimeter asked customers Tom, of the good Jed are XXX-millimeter significant their XXX-millimeter revenue At for they'll begin capacity they and some ramping as CS&I point, back generate go XXX-millimeter they'll to their to upgrade put that and upgrade will tools online. XXX-millimeter, us.

Thomas Diffely

Exactly.

Okay. look But away of at net to as far positive capacity a general, would of net negative? industry how obviously this you lot the as or but upgrades do the and demand consider add you some that system as a a the well, take in new

Doug Lawson

fabs version by it end positive be end a -- benefit their XXX-millimeter have is able up retrofit are up down for I needed XXX-millimeter margin might up upgrades the and take get fab. the for into actually. that and Axcelis. being else Well, their then They're The back it technology that XXX-millimeter fab think go allows that a the with to a great and them whatever of and running will support tools go they good will to customer, to

And Axcelis. general, positive be a will in so it for

Thomas Diffely

stuff. silicon maybe a quick couple questions just Okay. And the carbide more on of

as silicon now is EVs? industry far for transition from the carbide to power where silicon right as the So

Doug Lawson

of whole, seeing XX% way see from year from revenue our we're carbide. is around of mix. behavior, We our tool a this the coming XX% as -- silicon that's some Well, the XX% question But of revenue in probably terms of power total a it systems coming is our revenue better systems it's automakers. a buying for of

cost a place for the to in the there's cars.As get of both carbide to the of silicon processing they'll carbide sense, the silicon that to cost down, in silicon come and cost performance is see lower going of it's and making there's even performance up, come And a in more lower so cost to forth where come we'll are decision that cost plug-in carbide more the a down of on so carbide quite be lot materials automakers silicon for think of and the be move yields makes the most cost their using come And to makes implant on a sense. most reasons. cars. cases by terms forth probably cars its some on silicon technologies. hybrids then likely I and silicon today, and But silicon incentive So But tools outstripping bit. where down, settle

Thomas Diffely

Okay. And when it you that think then implant ion a to one silicon taking are third-generation further, little start do we'll the and intensive? just chips more bit second-generation carbide see step

Doug Lawson

probably and X Even Well, some important down, up, that's between starting to make pretty I to able some see performance, forth. that a the time the automakers think news And are we're a that a allows be slowing to moving EV next forth, them. continuing charges actually to so at work on cost generation perceive longer so higher to of the if tie there's or little lower your performance latest getting I our cost bit the cars I think and think -- people between questions. on based the of that customers

think XXX-millimeter technology the migration. see continue same an I so That's relative to the growth And we'll thing to down. to getting with important that the element cost

Russell Low

to that we're the of to I product kind in high have Yes. planar XXX-millimeter, a from Power revenue. also about, being volume, as year, like we to think Purion people And is as seeing portfolio transition from, Tom, [ going there pilot this see just from of is lines of a to transition pretty talked kind trench. that, add to you'll ] all ordered so that gone XXX-millimeter there's say, much equal

Purion they're the XE, got M, Purion the So basically we've equal year. Purion and this the HXXX,

devices. -- clearly, kind very which then are and much XE trench of applications, are more the you needed advanced Purion for the is So the

Operator

next Securities. from America of Our Duksan question of comes Bank Instructions] [Operator Jang

Duksan Jang

want I I go silicon the understand base. global a business. to diversified. back carbide So well to it's kind customer of It's

but known. have strong pretty well EV weaknesses have You been backlogs,

these if stabilizing seeing any And if signs were how know wondering I'm we ordering? of backlogs a of So double potential here? demand you're not part do

Doug Lawson

Okay.

So I to grow. the relative in I think, demand it our said silicon and we side, carbide power silicon look continues to as at if before,

to to to Our base enable automakers needs the EV innovate able programs customer be to to to continue they do. do want the

some the While especially not That's not case publicized. -- U.S., been it's that's the delays, necessarily there's globally. in well all

And new see still there the growth in high.And slowed, to have quite China, innovate so even though very battery bit of of car a even with it's we technology. the may continuing activity some companies are rate still percentage

customers to and So we expect, relative get cost growth as down. device market the continue Duksan, continued that to to see innovate

So -- how anyway, it. that's see so we

Duksan Jang

lot And to it. earlier They've shipments your DRAM kind China question. seen follow-up A WFE a strength this to DRAM incremental quarter. had overall. peers have in of broader of then an Got also

want to I between So have Axcelis'? a just you any and why understand exposure business Do not at these their difference there's to customers all?

Doug Lawson

Yes.

quarter, case next in less and very more see specific as this see tied the to year. to. do a we we We get China, traditional we So exposure in the growth of DRAM into DRAM customer much have that base that's in opportunities do for future

little our mature -- business that's quarter XX%. participate. bit all from a XX% less exposure mature, high a a They of peers. general up that this down exposure is difference So been down Those -- brought where And down last that's to our or the last The year carbide. markets we have for to have quarter's and between -- we're our exposure to XX%. all our pushed China some silicon of

Operator

of question Securities. Instructions] from Steelhead Duley Next David comes [Operator

David Duley

also you update how market -- a mentioned about a down. on you in business? I you've might couple follow-ups for then and silicon be the the That should you of could drive adopt Could just your logic Yes, what just some to perhaps us the other little me. curve bit silicon about think progress is adoption coming in just carbide advanced markets. just cost Japanese foundry in Could talk other give commentary And starting carbide? markets

Russell Low

Yes. Russell. Dave, it's

progress quite So the we're regarding actually making with Japan, we're pleased Japan. in

place for the us getting traction. value us, market and which have a for want it's Japan, in image it's that market we're And have huge Japan we So the really to go. natural also specialized some to that power very sensor about tools in

recently we they are other Japan, we're into just leader differentiated, as a power products because lot got demand a EXE said, silicon of seen into and are carbide going I those of for carbide definitely we've particular tool seeing shipped Japan. tools, We've an series highly as multiple power So silicon and power.

Doug Lawson

And logic the R&D. as similar advanced patiently the penetration. through that advanced as case working of In guess, Japan. goes, We're far describe -- as we on I would logic, path Dave, market that the is to

advanced at research that's production -- And And feeds Purion an That advanced logic customer a technology Purion the [ customers so of an definition focused center and ] in logic system area.So evaluation to have an in on into that's Purion of all that tool we revenue in of Dragon then patience announced this Hs same R&D. through advanced logic path advanced process and transistor penetration is the one advanced shipment Dragon has a in we customer. evaluation as recently, logic.

speeds, opportunity. As far automotive, of switching beyond carbide ], as significant of other in cleanliness of question markets kinds switching, silicon there's heat silicon your [ advantages some all performance in represents over of those dissipation, lots terms weight. Silicon things, carbide

automotive cost application, bring and the the is volume so and of components. down the overall will that of a ultimately, And cost materials application volume

directly several important to of beneficiary that's big key kind other is grid, the applications.So of market, people terms The get be capacity the up, Beyond which data getting there, down, place now in the could industrial get there's the applications of market, the of smart over a communications as that in -- is that think to And well little ties cost down. kind really that markets. markets, over and cost energy yields substrates, AI some as there clean time. a a are lot in we're to something the up I bit make understand have of a open the hill we've will and center that's the

Operator

turn to concludes Doug closing session. This to like who will would few now back remarks. it a Lawson, make the you. Thank question-and-answer I

Doug Lawson

Thank you today. for us joining

one the Wells New the in the Davidson Summit the Xth be investor at Summit City Annual We coming New Los on XX person. New you on very and Summit on the We these Needham in XX Jamie XX to busy you. Angeles, December November you D.A. at events Fargo have opportunity on in hope York for January Xth TMT of Summit to and in November York in Annual York City. have the TMT months. a see calendar meet to Tech We'll City, XX Thank

Operator

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Axcelis (ACLS) 2 Nov 232023 Q3 Earnings call transcript