PDFS - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to discuss its Financial Results for the Third Quarter Conference Call, ending Monday, September 30, 2024. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. [Operator Instructions].

conference recorded. this reminder, a is being As

If the been corresponding not yet posted copy of received a press PDF's at you website have to www.pdf.com. release, it has

statements statements, including could PDF's regarding the the Some growth, made and financial actual differ statements will for rates conference forward-looking this results and PDF's in demand of are course that results of performance, future materially. be solutions. its

PDF's disclosures through Annual the them. section entitled Factors PDF Pages You in for XX based call no XX fiscal forward-looking XXXX, of SEC to this on should ended, to refer today. are stated assumes obligation The on the report on Risk and XX-K in Form XX, Pages available risks information filings. update PDF conference statements year and subsequent similar to

PDF's to I'd Officer; Please Adnan Raza, like Now Mr. Chief John go and introduce Kibarian and Executive Officer. Financial PDF's ahead. Chief President Kibarian,

John Kibarian

us joining on call. for you Thank today's

for and already not our seen you've report posted. section each Investor to website, If quarter, press where of has our release please the been go management the earnings third

discusses customer prospects the at continuing quarter Cimetrix cloud in the of year. include a Bookings to and were for XX% view from the have the our customers some our third in buy renewing about remainder are our relatively Before This packaging to in Adnan the sales manufacturing observations of process where control detail, make being control. Advanced was number usage and the well and advanced industry. annual large third licenses a for customers continued a market of connectivity deploying in of in growth due is Exensio perspective Improvements of driven logic, by connectivity for Exensio quarter, semiconductor broad-based. financials increase our increase Exensio the consistent with business fabs I high software. licenses. runtime voltage the equipment as made process to Cimetrix revenue the drove front-end in investments as comments

new ramp slower few as weak sign. will believe integrated and We quarters. in were contracts next business low over situations were Our to QX the improve both yield was likely wafer volumes that

Turning the be evaluation speaks pleased that quarter. believe for continued -- initial The completed at Execution solution to of report turning at great customer during am eProbe and our remains in-place where the inspection. is I design customer I'm our to Design-for-Inspection to can machines direct of the manufacturing proceeding This results. execution customer to for eProbe PDF well. of the unique The second team evaluation two hardware schedule. ahead and high. the capabilities deployment. Utilization robustness scan, sorry,

exact both to customers always bookings a over challenge next anticipate we is predict, the quarters. timing our impacting While

DFI in and QX, confidence with reporting the applications of direct advantages our In eProbe on eProbe of the new were scan increased, throughput began the advantages confidence times memory in customer value applications production. memory, customer we that business. exploring superior of XX and As R&D was at in development logic in memory increased and evaluations very the lead our conventional impending promising sensitivity evaluation, manufacturing completion continued methods. The and than application our over

a As the our anticipate driver in we a spending of in evidenced ramp on being and QX and beyond. revenue this by XXXX our eProbe capital having growth positive year, meaningful impact

on perspective view beyond. our on comments few of environment the and fourth a quarter the Now and our

by be conventional attempting foundries large methodologies engaged IDMs, companies. test business, are logic with weakness, data, with about experiencing talk our Fabless business in equipment processes while fabless, such AI/ML X-nanometer, test or often software transformation companies customers digital is fabs whether control quarter, growing. with their will deploying leverage augment view to are advanced driven that last customers some and as advanced developing we believe Consistent As our we others to

we've numbers So AI on all QX lifting growth can day then where remind boats, the Francisco folks specific anticipate we to believe industry, robust Which want for is momentum QX. for not while we continued December in we do XXXX, workshop about tide extend our executive also. I there IEDM IEEE to will rising a XX. in while on too expect early comment begun we the be after San And the one-day in conference. it's an growth

to talk contractors analytics in for all together attend. semiconductor new manufacturing, collection ModelOps, application I a during their of and our the platform. thank of Exensio PDF invite great the to AI of PDF in about the We industry efforts to I driven want you part all are guide analytics and advances and customers, employees year. experts our bringing folks for the by

Let's have QX another deliver great so can a record we year.

turn results. on our the who I'll Adnan, to and over perspective Now, Adnan? the review financials provide call will his

Adnan Raza

John. you, you Good Thank Good speak afternoon, today. everyone. to all again with

on results up-to-date of you progress the the management and We quarter and financial the section on our of release pleased Relations to are Investor website. review business. We third the the earnings posted report our of to bring

reconciliation of has materials provided the of Please in GAAP for results on the with financials non-GAAP that will we results Our been to XXXX our on note filed Form financial strong. quarter on all third a discuss call came in be website. Financial XX-Q also the is today. basis and the today's SEC a

We the for essentially from of last million, for delivered quarter with months bookings full backlog $XXX even of XXXX. of bookings a quarter, the XXXX quarter. have with revenues now flat approximately nine ended our year the record Our this exceeded

XX% of $XX.X year the same higher million, XX% versus QX for came and this quarter year. the higher last of versus Our quarter prior total at is which revenue in

spite revenue. the pleased strong in revenues in yield of performance with this are total in We ramp decline integrated

revenue million, analytics this analytics in was elements revenue prior Our to year. quarter comprised quarter versus analytics Analytics quarter platform. revenue of same compared versus came quarter of by our for the the in driven The XX% XX% at $XX.X XX% all and last which quarter. higher higher last the of strength was

rate we multi-year where renewal, John pleased the said, we One which to with were engagement with able our figure annual XX%, level customers. of usage inside manufacturing analytics for people eight the approximately organization and more and are is was on licenses yield increased their as analytics deploying, increase by the improvements. Exensio example primarily of by As rely driven spend a customer

pleased was we the the analytics, quarter total rate we software license our strong and growth same margin saw For lower during ramp we quarter the gross of with a licenses prior for an for Integrated we deals $X.X compared yield strong product, year-over-year XX% and to analytics million was revenues million compared quarter, improvement by connectivity Cimetrix quarter. the in which to prior in runtime across QX perpetual from Overall, engagements revenue delivered year. slight quarter prior and total customers with platform. On compared with the the QX for are X% growth. QX, to unusually margins, reported our the gross during one-time our revenues of continued benefited $X.X

are year, our in result, expect towards product what for pleased quarter, offerings. gross this we during a this the been half by with While the we of mix shift margin first seeing driven of next we have to revert

we XX% making As remain announced quarters. at of to towards and committed progress over gross margin Day that October, coming target Analyst in our long-term the our

our and prior due compared Our to growth. per the $X.XX marketing quarter, we to for primarily to sales support On R&D operating investments share were the quarter. in deliver expenses and future in QX increased grew to able EPS,

the for quarter strongest Our year.

compared Turning to higher approximately to the quarter with and ending of short-term $XXX million. million, quarter's of ended incrementally the investments sheet. balance cash balance We the equivalents cash, $XXX cash approximately prior

opportunities partner the positive of our investments QX customers. After of of revenues, company, for leading-edge for portion achieving for see our the in XX%. benefit and revenue, as long-term a investment total well operating we XX% grow used revenue enterprise a we private to as target cash eProbe with revenues line quarter, for our XX% tool expect third analytics the This year-over-year flow in in total where revenue growth in to growth of we year-over-year for quarter

quarter the Q&A the growing Operator? look we also customers we'll to partners sequentially turn and the thankful are to operator the that, QX. to session. supporting forward in our over We for uplift delivered With to growth commence call this and

Operator

Instructions]. Thank [Operator you, Raza. Mr.

Securities. with first proceed. Our Blair Abernethy is Please Rosenblatt question from

Blair Abernethy

growth Nice I are the you there. -- talked in just and and wanted of of couple good customer we've couple pipeline first questions, a two, of see ask coming beyond back of can John, one to you number just what customers quarter, to the DFI, seeing opportunity the there about terms a there? on just out number

John Kibarian

do expect talk that customer So Exensio also package. and customer have subscription other as systems. this proceed. a didn't is -- vehicles I many and part an know, you that third we includes that integrated but we quarter, about overall That's customer that of

look as have growth problems back customers, vector with the I develop said seen another -- application. the the as first see talked remarks, of there. about continue prepared at two comments, as memory we customers really For results great do We also in we XD both my types we logic, prepared when the see And, And applications, more that systems. my more-and-more processes. more-and-more I to for

is views] XD, XD. power XD, [contacts is is Gate-All-Around So backside and

these of nodes and depend XD new -- process problems. bringing these XD of more-and-more on on they're advanced So yield integration features out

the only also to really it capable a product so of XD where exactly, excite to of machine And mechanism. product looking where sure value -- capture the correct lot it of wants is being uniquely where that excites product the the to the elements is. a and at make on able capability understanding the and in is person unique That's

applications within starting expect we're within logic and now applications to we more So see memory.

Blair Abernethy

on yes, double a like up on, from last around your CapEx just before. million, the looks year, And year $XX year-to-date lot

of be CapEx in going thinking should about what So terms forward? we levels

Adnan Raza

I Blair, hi, nice you. Look, to think connect with mean, I --

of have order our lead growth to longer another third and looking one be what to revenue versus we're to the good few see shorter we think with continue I started to and applications us should evaluation these Obviously, and into if that's the where to eProbe about okay, we needs terms being and with had. to had are Obviously, increased one as seeing ones some we you progress these careful of John going having this give platform all have the have quarter levels think we see, memory we customer, another a and be? feeling alluding before, the we the engagements in going start about, one see translate of we're at customers, are we pretty CapEx that and the to confidence on customer of trend. but times then that hope and the with the positive, talked DFI serve pipeline the to be machines in

even from us the we So from on CapEx are I increased think today. where should see you some side, level

Blair Abernethy

last one one-time that -- be just there? there is jump in thinking before And I is about that I queue. where the level here are some in The is half of the step-up the first items SG&A QX or there -- back that one just new in a from of kind year, should

Adnan Raza

most I a managing almost mean, is the incremental I on S&M, and Yes, anything. careful increase, G&A, are of But think expense, you'll it report marketing as and level. sales if side. of see this, about the of combined the SG&A we on all increase we course,

spend We the are out focused best that of S&M the trying maximize making that. and we kind have of on to

SG&A R&D investments side we're thinking internally are next that so than the future in the the the more quarter probably Our about on or on side. in

Operator

next question of Capital the Richard Markets. Our Auguste Northland from with is line

Auguste Richard

the talk incremental grow, that's a things. those it a just one-time that drove the you little good XX% bit in about trying looks results. reconcile thing, -- to and deal gross two I'm quarter? perpetual that it like Could had margin like at license assuming increment on Congratulations you I'm

John Kibarian

quarter cloud prepared actually in deals, drive to much bookings said -- -- cloud renewals but the incremental I largest As new in the very quarter. don't they remarks, total revenue in in cloud my related were the

incrementally drove packaging or will revenue margin process we've basis contracts they buy There's out about purchases contracts and they is on legacy perpetual have And gross in Because be capital for to This and some a process logic have customers legacy there typically, that on a control because while. they something control We perpetual this stuff have more their in drive typically. that This license build-outs. more advanced their this and tend -- quite couple of those with you quarter. quarter. a related did buy was known advanced with that capital link to advanced that that need and customers improvement the packaging. -- it in on the

So handholding support, license lot it. on licenses all, pretty no much as potential one-time legacy, revenue. Mostly is Cimetrix it's basically you said, basically, is a legacy a the just customers very-high rough with of so not

Auguste Richard

And so you've growth. pretty got decent sequential

I XX% talk the some the could starting sort to year-on-year, what's of in it I'm that about give I'm what's given on terms gap the you don't wondering Is And Just if IYR increase filling Is a of in it little yes. just perpetual expect -- repeat. to you back? license recognize revenue? quarter fourth coming the in color of the

John Kibarian

Yes.

my tail to prepared actually didn't a largest number the I look and there bigger customers. in QX. said than the expect Number improvement remarks, is, piece fees customer think all primarily tends to into as just IYR, have as on we for, there's quarters, my few improvement the as that the over what the our earlier longer the as there I in see wafer related expect will the I contribute, three So in the in sooner the three, earlier, reported soon, next said DFI that the the And the completing do we three -- customer we cloud vectors said remarks, it contracts, much I on expected QX. impact. probably And bookings from were related two, a but evaluation really then one, from -- little expected. met very we -- we than Number prepared bit as she do do criteria to anticipated

terms nothing. three improvement in said, a see significantly building Cimetrix year. up drivers go what seem in of as and as will modest dollars. to were, of expect fact, driver basically That's in and build-out some in side though a From runtime beyond. We QX licenses In lesser Those on total be very we through Adnan do year-over-year, well. licenses customers, we runtime as the

Auguste Richard

to And start think contrast you it look the voltage Have that with me that this sized way easiest is this. how eProbe, going let the do given And to -- you well, comes expands at market? as market to think use the into fab. can memory or expand production be how the do Any they sort you? much adding the potential opportunity -- of sizing market And memory the some where helpful. applications guess you would for much of

John Kibarian

grow. number but the recently, business over But I can When to talk -- at you a, e-beam and everyone $X.X folks, was look mean the I you my increasingly meeting with if on I head now. been when of is contrast to Yes. go in days. at Voltage think problems, I see the the know, it reports, with these expects becomes with even DRAM north not inspection products. what's mean has you right XD, clear don't is going billion, I think it going say I they in customer XD look relative important line more to

inspection even overall the have inspection side -- other the to And team business speak I so the with on when And folks contrast expect the outgrow that people the at same to in market. and voltage other and that, product particular, e-beam in executive we market thing. see the

of imaging. Historically, product complexity able -- part business the been of has all are biggest to to logic, at -- think we if where can.] So not had piece logic. [luck There think look which how the substantially Gus, product that can machine, only software high are of the And time, to because is inspecting very knowing software everyone in throughputs. had looking larger, backwards, that contrast voltage actually I rest to possible, hard than a the pretty -- because have that logic, with started around expects are navigate So joke, memory say be All but I of that simulating I that started because nature is points faster of most call think the to made market. and memory, we we and backwards. image actually e-beam in e-beam defects. and can is And voltage significant. growing being probably valuable number exactly will related we we PDF simulated the the XD grow contrast dots the the the a there's you applications think ultimately market that of part around collect -- that that's you of Over the of you the also in one direct

power of I think CFATS world the be So miss future backside the going, things are Logic right? three-dimensional like issues. where you the value, all where and these things is and will

is there will and memory voltage think So XD need contrast going time, we logic, same also for the so up. At also need increase. the go and will the

eProbe's think $X of voltage the any today piece that be application and saying and We it. by saying really we billion will largest the to the what we And piece we worry of another is inspection question? basically contrast, we're applications. Operator, expect over overall, end-market it bigger. be logic, the well spam actually we'll of both So those fact be to have that, two which both about memory in don't market,

Operator

Instructions]. [Operator

a We follow-up from line of the from Securities. Blair have Abernethy Rosenblatt

Blair Abernethy

Just more, macro-environment. a John, wanted on drill to in the bit

that quarter. seeing fairly prior. want So -- sort you're I are of in It ago was end-market? you just for say from guys are the the China a are you year recovering -- how would see and the of about in it's also seeing where And in last of you what specifically, kind I significantly to down sort tracking guys market. things and feeling

John Kibarian

general, remarks, said my see prepared bag. mixed a in I in so as we it's That's just Yes.

high you clearly there, broad some China, Most was -- thought US. you is it advanced but demand going extent an advanced packaging. and logic to have this say equipment. in semiconductors going remarks, lot in lesser our the of prepared but -- look sure, Korea back-end of broadly, trend our advanced advanced modelled see at activity I it in was see kind that can did a that those a more packaging, if impact didn't didn't awful for drove equipment say I tend those and bigger some Taiwan -- Those of I of we outside a areas. on logic, and the that to So revenue voltage quarter, into what

So you on see breakdown revenue. shift in geographic that our

and And report the coming and weak nodes new of in did seen what see fabs would by Looking advanced in wafer how we weakness greatly [indiscernible] we've did said, see we wafer coming coming was continued China. China IYR volume. out, That and overall see for of we influenced did up, engagements out that's considered investment weak, volumes -- on the were standards. Fabbrix heightened we maybe not and new -- just there be that by terms non-Chinese development new advanced or online, them do fees

business over that of going you're I a I of So also the think the think we of for within be it's diversity chatting XXXX may lots that as expect for species do decrease. number a it folks And over that that do in We with When consolidation We and -- market, or period we there form. And increase, -- but the the next loss do the year. any point, of at to into piece some was will been look new think part per total the to of we some shape of see don't recover. there's country, of that bag species base. way, Cambrian animals there. may expect kind mixed think customer I in

Blair Abernethy

particularly the on And another SAP, report to really was any had that just one? around progress question I partnership, with

John Kibarian

we them with for believe them at you'll And with with in want yes, on what going side, them our where development and number we verticals going ERP well. We of the at them, and the about the a conference were back what's mutual panel met on with a doing have to was tying the selling ongoing. meeting system There's operationalize us So number we we as floor because featured their we're I it at with our were on, you it, future in activities Seattle, October. of customers, very important. look deployments and is as knowledge AI GSA in AI they of -- on have critical at when you'll deploying shop things the see on you a the see a of products number me customers.

ongoing So well. the we as it or we besides deployments, and impact are AI believe to of drive it be a a of well, number to our quite these relevant do lot expect deployments has for some moving that

Blair Abernethy

manufacturing to last anything just quick but there's I'm last note sure one. the the in one Lantern press, Technology of -- I in acquisition And seen on batteries -- anything if year, not hadn't your terms there? the anything sector,

John Kibarian

We're manufacturers Yes. companies car working with deployments with battery in battery that producers. the working are the at some

that really detect battery We'll able year high in the linkage finish So the ongoing. they the to really are And we're XXXX. for at result really manufacturing pleased expectations the being the leveraging our variability manufacturer, our of we car and this But technology progress. see pilots between quite process those runtime. and with terms speeds at as company what AI around

Operator

proceed. D.A. comes William with Our line the next of question Davidson. from Jellison Please

Will Jellison

on of in if seen could how that far enters and you been ask update wanted thus was you've have first been those some going you've running I progress the sorts the that market? of provide an The MLOps product to what one and programs pilot as

John Kibarian

information talk better customers, ongoing first tests we're downstream -- the about prediction did predictions. of pilots to this or using at going with now customers. And make this about And downstream so complex Sure. upstream earlier better We've actually other Will. mostly a this down Workshop, talk got make at to AI test kind about flow, around of Yes. we year number

inside it it around reduce thereby at the understanding package a I or what predict burn-in it. matching, In And I like would results in chiplets that similarly can chiplet points. do can skip at the other effect or other it virtual or insertion assign things in result package step words, of system wafersort, to AI, I this and -- predict burn-in like -- overall change the performance therefore level. know collection are look -- the test better minimize a these the So and burn-in if results, in the

that kind categories, So points, of those virtual MLOps, of predictive the there's category, in leverage couple They're insertion insertion And a kind of of them they points. really benefits which ongoing. really is that extracted but to data upstream and test test from -- insertion make a ability not span point, single data multiple to take upstream models and downstream points testing. better access of

Will Jellison

then could question a if the I was on made heard -- And it remarks, in sounds if that on any correctly PDF company a prepared quarter. investment in wondering, color was? what follow-up is the you like more the I provide private small during

Adnan Raza

in Yes. and I I'll alluded We differentiated. yes, investment a felt related $X customers. the talk the to let to John the Absolutely. quite numbers to aspects, about But technology million convertible which then a note. the of that I'll it's it's our speak qualitative was success leading-edge

look opportunity to of growth, an well. or at deem if you customers fund through see purchasing you they can engagements phase next there's companies the Sometimes particularly important have an them as opportunity that to if with sometimes there's

I think the... if to a situations And you want happens, next was next for phase one to us well-positioned. made the milestone. to the terms success that Do us enough convert, for negotiated the speak and was it it the with growth this we're where investment the that those So support of sense small we of

John Kibarian

Yes.

it -- with it, they're as of leading-edge design prepared partnership about This I with Will, side goes technical our the measurement the future on all Siemens understand design, and in It's businesses, right, the the get to the potentially physical eProbe. [Blair], exploring all that us to they're On remarks more the XD, all also connection said information it additional of of but the with, with is, that, systems. software side, test in it our behavior We've to our layout, on a the very links insight stack excellent the valuable see that's understand the way lets at And brings that in eProbe faults. of another super for relationship connection line. this and customers the synergistic super information. had software is the test the stack business is the innovation vehicle between is electrical that, --

Operator

next Our question Christian Craig-Hallum with Capital from Group. of Schwab comes proceed. the line Please

Christian Schwab

the -- as we guys positive questions or than of that I -- should it? we answered. Most at said didn't far think -- way growth XX% Is a 'XX thinking I should were -- outlook, target. different operating you you your the anticipate had was as of at minimum But long-term your felt we anything about or be

John Kibarian

for Yes. We specific said didn't up we set a the talked would year, XX% annual obviously, give of number, year this but when growth. us about we we half said second the

our You can see QX number.

So we're you can kind Christian. of see where heading at right? this,

Christian Schwab

'XX. calendar talking about I'm

that theâ€¦ we're now at So back

John Kibarian

Yes.

is more of think about average, thinking our XXXX our representative right, the because XXXX we're than flat. we year -- we of the think how was of QX like it's half on So first

target. we code] [zip is like our to XXXX look go or we the that less than -- growth us for obviously, that growth average words robust feel blended on expect and in number XXXX, my at But XXXX So as better XX% because we leaves as were we be into our XXXX.

Operator

Instructions]. [Operator

We of have Management. from Wiener with a Samjo Andrew question the line

Andrew Wiener

to progress long-lead your like obviously good the spending follow along to and in wanted the the you're year further and back CapEx customer comments doing referred We're evaluation. making the lead sounds I items. customer manufacturing around DFI. the It with up and on

guess, were last or to what throughout, ship framed this you the we planning 'XX. at have you sort year thought the Just demand of least I capacity potential into curious, either could customers and, quarter, what to balance of potentially be and those from

could you update three months sort last what maybe over So given of of learned four or you've months? the sort that

John Kibarian

Yes.

where a demand are. we we about good large, from feel I standpoint, think and by pretty

be expect the range. We to in same

keep do it's to if the to the that all on that that will the We shipments, -- don't don't this through ship I range but be that out, we and correctly. those as our we it things terms have to in have you We We comfortable area, and built going pretty we we remember monitoring forget So would don't about timing ability material gave We right. number make range. believe that the need about in build think we I in -- was set-up. go XA know, we have I exact year, numbers of yet.

demand would up range. cloud, we is we've yeah, I'm to is think got there that but required, like orchestration have we So -- there the standing more out for

Andrew Wiener

be got lead would about it? two to to and then the if the memory from think customers higher-end is that essentially initial customer, perhaps those way that an And you

John Kibarian

Yes, yes, did Andrew, know, or we we be think you have could -- that at if places growth. put other we correct. additional would there's eval probably would about probably evals think I accelerate really that we with we machines eval, And like and don't should the -- manufacturing

we supply it's have So of our chain, something because a as need about factor we questions. think do to people lot

quickly they the able and you finish work eval, confident felt install and from facility see really people were like that's the was machine in our and And physics the actually run it that real were you does that pretty think real-time, can I the because lots wondered, to manufacturing okay, a we to around I why we real in it results it. the use through globe. think lab the customers same if a able

path in result but on we in if And it stuck the And wood], sales do would [CNOC we it's believe that. more quickly. machine to it's on so there, the

some have about we to So expand the year. capacity that want would we program probably if think to

Andrew Wiener

details? of convert to without criteria, completion and tool at spot get like too you early into back revenue? the a Is assuming to to you And does evaluation, or tool into it, the anything revenue-generating the then to the the meet intention you it order convert much you of the be need done referenced that in upgrades that customer on taken is if or that manufacturing again, putting to any the

John Kibarian

situation. specifics, expect revenue the Yes, convert without to would we getting standard than sooner to a to Andrew, it

Andrew Wiener

the of far to opportunity OR-SYSTEM And is sort battery separately to and general, be? enough generating go DFI curious and number necessarily sort could then a mean? of doing on you line of could not what sort evaluations I'm I what the X or saying customer and but think the thinks about first in understanding just of to if it about, revenue, the I'm size more I'm in just needs if question. it a one capabilities well Have what contracts, X following-up trying gotten on mean, the of battery basis? side tool like batteries of number software the

John Kibarian

Yes.

used first we that we're all is sensors fab, the is software than test realized rate we in way customers were sophisticated think get they years to the on what the assembly when what okay, quite would of compare a and we the deploying yields. to manufacturing to simplistic ago started going that's improve couple capital our And mine was semi, even manufacturing, collection to would front-end off us Andrew. out us? a I found with the what a what at How pilots trying equipment semiconductor much facility you data But found still battery that for back ourselves, of we equipment actually said, back-end the figure fab. surprised tool apply we did, went a and because you more we

to We millimeters meters right? a per moving ePro a rate. to see lot a you'd second, real So or than at fast nothing how almost generation it's off second, the just opportunity you talk and So control they there sensor have about of that any collect we and we're for semiconductors. turn This the right? line is but therefore, all operate. trying XX that different the Things at valuable much an it's much, is And moves. on quickly at the There And what they AI and faster fast that alarms wafer Lantern into do data quickly scale per then based is. how second, of data off information. many whole was very a a pipeline moving meters per with a how chart of imager, are very, being process get that to right? felt images, And able there. And part them had create around was moving how --

customers believe of to want a line. First the that this real work-in will all, actually

then of should of where Most unlike okay, to of cost be most have of the better? why depreciation consumables. cost if reasons your very is now. And valuable because your they the work, semiconductors use right a lot your chip is capital, the cost control you of doing we're the capital. a know, it line it their They what really that's So that does how lot there's do of is

you cost. few running as you for your longer line before action quite actually a So expensive percentage a of -- capital is build even take the minutes

So be valuable. should there's reasons it why

over nice are trying work are times much through those We is all things, cycle so thing the faster. months. next to about these it The

You weeks, years. run material and and months not days in

-- you quicker. and So your to the see and of modeling the alarming benefit in-line learn data is ability

faster. be the then So I We what bit some investment. didn't made we'll small years. was has moonshot. a to a little customers about going investment, we a initial of that out was quick think means suspect XXXX cycles get That was get a helped understanding But and in it's us a that hitter. learning It that that

Andrew Wiener

Along thought way or approaching approach of those sort systems, an them new it these of and would or at your you of sort looking you're out-of-the-box sort deploying are John, manufacturing seeing lines, a solutions is other it pilots, their be it as of completely evaluating doing process? of

John Kibarian

was felt we to production relative industry. it super to that for important were predict important problems. move shift our and always, say that manufacturing the we to is own any and we there they And like how this too. experience was that We surveys, had. the they quite in they our else left, did anything important we out our on information would what late understand there it get flow when to surprised knew to industry in in -- was trying upstream We think downstream their how still And semiconductor thought we didn't given industry. We're be at ability like quite

like there what that's in collection, and And this. with my this toe we seemed they the -- isn't it There of So why putting wasn't that both another But it's on is scratch but water effectively started And I in-line inline alternative that head am quite acquisition. we saw. like there sophisticated quite a our simplistic. data personally always was combination had.

manufacturing think person it's would I it's think intuitive. any --

get You predictor the can can you best always the There's want to as early process. you and yes. in as

would like doing, another what out have had built. this that don't we it's this So been of would that something others know we but quite team one would think be

Andrew Wiener

know my little now out sort question, your to opportunity I maybe with that then you of customers? pointed area how them you're an advanced directly you test Can versus sort tests And as last admin with capture and Paradigm you're going working of and bit a about strength. of talk of doing to what sort

John Kibarian

direct always test process right? tester, Yes, model. the -- very, models we're -- don't our with They test call way the So when they running sitting it involves a lot to on the of have them. lightweight, admin that because that in of they And doing rules you a of AI. standard certain overload they're particularly are the computationally enables compute, -- run, brought a program very with the have to run want a cases intensive with customers, sophisticated work the what more often amount of with ACS, they lot tester very

some much of to of model information So with what with of to or level to way architected, edge the boxes work security, a elements certain enable because those enabled more testers. they're sophisticated the edge ML a bring -- design the even automation as an

coming And why with and lot sophisticated what with doing of chip chiplets so when you're for more our insertions a of advanced reason that and stack you're is you and them MLOps software ways enable at just each. many maybe needed, at and with capabilities, to the packaging, able their wafersort instead been we've have hardware at look three one up that's test other test control testing you point. And the

test So you've you've test four packaged as chiplets, it. insertions, XX test well, multiple points ones wafersort. that's final And after tests got that then in three

for what And with algorithms the their as lot a how for at is do does edge, a -- at beyond model? there's you downstream make And lot or of more take able What really that thinner you value of and of being does the how a predict be we're information upstream is a benefit to doing downstream. put both of test. simple true can this customer decision So more and that, additional informed them or looking them.

Operator

this program. more concludes this for and right. are [Operator Thank Instructions]. on there today's the joining you gentlemen, us call. At All Ladies time, no questions.

PDF Solutions (PDFS) 7 Nov 242024 Q3 Earnings call transcript