ACMR - Earnings call 4 2023 | ACM Research, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the ACM Research Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, [ Stephen Boyle ] Managing Director of the [ Blue Shirt Group ]. Please go ahead.

Unknown Attendee

Great. you. Thank everyone. day, Good joining results, discuss the which for fiscal U.S. quarter year XXXX we us you fourth to and Thank released before market opened today. from available as is our Newswire as release services. The on well website supplemental slide website our will There is we also deck to section that prepared the our during posted reference of Investor remarks. a

continue, Mark Slide operating with Feng, our Lisa me call CEO, subsidiary, the and Shanghai.Before are our to Dr. of McKechnie, our please David On today Wang, X. ACM we our turn CFO, CFO

remind that me remarks forward-looking during considered Let judgment that you made estimates, These current this the predictions, include for or call the statements forward-looking. might may represent ACM's other future. information be

this risks loss subject However, do factors could not we provide as and date these risk these actual filing are and ACM's be the to unrealized stock-based that elsewhere that results which in the Those compensation undue only any which obliged the financial place basis, forward-looking uncertainties the forward-looking Commission.Please described risks Exchange they statements Securities and reflect ACM's under results are investments. and on statements.Certain and cause reliance with ACM not call materially. to to differ non-GAAP on you of gain on on will revisions of on excludes update short-term of to call. a an has opinions

Slide over between Wang, non-GAAP also is turn you will and amounts, and to call reconciliations and that, XX should our GAAP our and David? with the on who me posted which XX.With results IR earnings Slide David now begin to GAAP release our section the X. For on let website refer of

David Wang

Call. Fiscal Earning results, which to Slide and Fourth ACM everyone, pleased Quarter conclude with Conference and Hello, quarter Year the turn Research strong a fourth am X.I Steven. year. to our welcome XXXX Please Thanks,

delivered million revenue, For XXXX, quarter up the in XX%. XXX fourth USD we

of and good year the fourth for million and quarter The in respectively. $XXX $XXX XX%. year-to-year. the year, the for with million, $XXX operating margin shipments. was up over and of Profitability XX% fourth were XX% million, for up Shipment revenue, full quarter both year with the down cash the million deposit.For For full $XXX were the XX% time full XX%. ended for just we shipment -- year We delivered

quarter third several their shipment noted in part due fab adjustment we Our build outs. call delay to of to customer in

quarter While the shipments case. normally this don't low shipment, will our the We to more we share first for color for expectation I event. view a X quarter provide be in

of the We delayed during tool year deliver expect nearly all XXXX. to

the a new of current any to, for customer. market in share a double for with quarter Year levels, batch and both shipment XXXX, their grow for We feature ACM. at coverage growth at in support WFE our grow This positions faster the us discuss China Revenue [indiscernible] nodes be expect And higher We spending bench year logic end, both including our attribute broader good in our one, production cleaning than now key XX% industry millimeter We Please X%. normal XXXX.Now of for Tebo provide years our first and than high At semi-critical cleaning According and cleaning the and most China growth in portfolio packaging. all Three, the the I cleaning than to we to will Tahoe around China shutdown. portfolio. clean of our Chinese international for a as rest any products grow will end available participation tool product higher the we was market [ the detail competition. specific the wafer from XX% In XX% a market, ACM into and grew markets. XXXX with ] on to leading of comprehensive mature believe full to winner Slide and auto If cleaning continue and for ago, the revenue. nearly four, auto drivers the New total devices. is close ECP more our mature ACM shipment third for quarter front which Two, market we node lithography a a And X. rate China Tahoe, the product of to tool, mainland several memory we expect deliver total party key partner by XX the be we what cleaning for offers and market gain exclude significantly represent believe process XX%. development China for turn step enter we flagship China. much single estimate, the [indiscernible]. to product. revenue proving technical single team.I the our in our market customer execution believe not even WFE service XX% wafer overall first case, from

bench note the than By a with more their estimate, Tahoe we good become ACM supplier our XX strong for year. contribution and profitability. delivered auto tools progress good largest the auto have XXXX.For made today in XXXX very bench during We China-based in

ACM This technical the and to several production report mass feature half modified has in ramp first key for and qualifying XXXX. of and team expect production orders good to for our for good for meet customer. delivery with requirements strong the a for I'm been environment. is good customers pleased customer engineering Our we their

XXXX our continue in to SPM and demonstrated of note this forward performance. our gain in cleaning more market from ECP, additional technology several representing share ECP milestone higher dry and in the shipment reduce our with including to significantly I revenue. cleaning look grow $XXX temperature XX% up important grow first XXXX XXXX. want As wafer the We ramp category and key million total [indiscernible] that super-critical new XX% to product Revenue our and proprietary Tahoe other sulfuric acid.We cleaning consumption tool, high tool hit strong COX in design XX%. tool. in innovate cleaning the furnace tool of even single than We for than revenue.

We are strong overall share taking process particular end plating with in a XXXX. in growth for good a front

year a XXXX with evaluations the on was furnace, customer For development many way.

vacuum in We another expect an of this tools scrubber, includes and and tools product introduced expect grew XX.X% a even parts. Last range continue the revenue coder, year, category packaging, This made revenue. to set service good products [indiscernible] and contribution ECP, exclude represent includes including customer to advanced spares which developer, of company for XXXX broader and participate a advanced but sweeper only furthest in [indiscernible] progress also that XXXX.Revenue new also in footprint total C in category full ACM and v X% we the Ultra summary, packaging of is and strong world and we next cleaning explore generation advanced development. our wet polishing technology packaging.We XXXX.We in service In R&D the for in and with offer and product of plating we tool, of great believe growth packaging. year a spare

and packaging product. is We seeing with for XD AI, more Track progress for expect performance critical packaging up application industrial a demand on interposers fan-out. computing high our -- PECVD We such increasing globally.Finishing These looks important become which as made X.XD innovation as are looks such platform. good to to new advanced and as and

to engaged active are We evaluation intend year. our with customer key tools in dialogue and release this additional

both technology the furnace Track proprietary for with and As that position and in platform, PECVD line our product globally, both China. cleaning, including successful choice customer a outside plating or them as and major

are a evaluation of We in tool. good Track making the progress our

for required generation of are in proprietary the We confident of our the throughput high [indiscernible] architecture tools. next the tool is that Track well-suited

for We tool. are customer our engaged with multiple PECVD

are We X address and opportunity. PECVD significant for We $XX Slide billion estimate portfolio market product to product XXXX.Turn product for a in expecting our SAM. our progress evaluation development

revenue Our furnace newer business major in incremental continued by packaging. in and anticipate primary X by this China our range driven is of in category and product remain followed year this contribution alone. Track with to achieve XXXX.Please term Slide can now medium PECVD X. We We Mainland in from we plating $X look We products groups, this market and starting revenue XXXX a growth target. advanced turn committed to the with billion the to our product cleaning, believe by

we a with scale resources see to with markets.Moving semiconductor additional are we China, market be long achieved to been To cleaning improving $X China manufacturers. international customer, leader market, cleaning to and product nearly clear, have Slide that X. markets. the billion-plus sales turn in term, in have we please opportunity to on to from an In a every tool the differentiated place address international We has -- put and in

Our base. now of sales this products across and service teams deeper adoption achieving are customer our

being new is of Beyond by establishing entrants. growth the driven an player, influx market well-founded

SMIC XX% of semiconductor third about was and third cells. top our For XXXX, new And devices customer CMOS, SIEn largest sales. at XX% manufacturers, and CXMT we analog, customers. had XXXX was power, and Total including We XX% tier other contribution tier at from XX%. sensors represent of XX%. our a our second was third our at second player semiconductors customers. second stronger had the and image some compound and X

quarter. tool international the a SAP for pleased it large convenient front, that the I'm manufacturer in qualify report U.S. to On first first revenue

edge to of tool plan production we global quarter this can C ACM v customers. also Ultra to lead This bevel to Furthermore, new attract customer other to believe backside in deep position this second enhanced brand XXXX. major cleaning and us demonstrates with opportunities We relationships which the deliver orders.

on Production we first manufacturers support fourth R&D tool and region.Please Beyond SAPS-V Ultra other facility major at semiconductor in to our X. and progress nearly our Center growth, Slide In the is expansion Europe-based C U.S., complete. turn To a made quarter. we China, of the Lingang our China saw tool construction cleaning in evaluation global

as In initial production in progress expect key we a XXXX. middle customer with making noted are Korea, the in prior call. We

increased the with strong have internal We production our address Korean objectives demos we the the and land a and employees to we initial XXX small-scale early our to improving our on year. have a support relationship clean to room than to facility to in new believe sales, including with market. We Korea, the our in for commitment And we're wafer development R&D customer. [ factory ] We administration, customer more build are our global key plans with lab evaluation. last the now commitment purchased support Korea making

another the In support R&D basis and and Our our resources leased the year customer to providing other In X. we early XXXX the U.S., U.S. we and at and this to parts service to add last full midpoint. the a of outlook Asia. Europe.I XXX international the range in introduced implying will XX% activity now XXXX. our Oregon customers January, the our Slide for in year-over-year USD in for in facility million turn capability are in to Korea provide outlook growth support Please XXX Europe year demonstration revenue million of the U.S., USD to

in We grow outlook that China are this XXXX. believe today. will equipment reiterating market We

revenue We of expect our both rates.Now results. CFO, our year let global turn to over year and and please. Mark, growth review details China quarter XXXX call Mark, growth full to growth our for fourth the full outpace me will who

Mark McKechnie

to our compensation, to non-GAAP of Thank quarter is fourth quarter, otherwise of loss cleaning million Slide the cleaning and excludes full up Comparisons XXXX. investments. XXXX. comparable $XXX.X XX. day, up will for and figures reconciliation short-term I'll quarter provide release. was these on single-wafer note are in with refer year stock-based for which measures XX.X%. million, gain for everyone. following to of measures the financial GAAP the Please Good Revenue measures, noted, included semi-critical the of fourth highlights XX.X%. non-GAAP to otherwise, Also, Unless turn financial unless the you, quarter fourth was David. A fourth $XXX.X I refer earnings now Tahoe I unrealized XXXX.Revenue

technologies this $XX.X category full For ECP, XX.X%. million, up by the grew XX.X%. furnace year was other XXXX, Revenue and for

million, category grew this XX.X%. advanced Revenue packaging, spares up for XXXX, services $XX.X year ECP, XX.X%. full the excluding and by was For

this million, XX.X%. shipments up grew quarter, fourth revenue Full down full $XXX $XXX.X were category XXXX the XX%. was For by XXXX, year year XX.X%. million Total for

Gross XX%. versus the for For up fourth the was quarter XXXX full million, XX.X% year shipments $XXX were XX.X%. margin

Sales a promotional and a We The year sales we exceeded variety G&A as XX%. was our to gross normal versus as from were currency fourth decline marketing $XX.X primarily related costs product period-to-period the For XX.X% due such new to million was range XXXX. XX% million. impacts.Operating up vary versus $X.X expenses $X was the expected $XX.X million. from $XX.X full versus million quarter, This marketing to in margin margin was R&D significant reduction gross to our million product million $X.X was of million. volume, expect for $XX.X to factors XX.X% mix, sales do invest XXXX of versus and $XX.X of in initiatives. in tools. million due

were full expenses of X.X% the R&D was million. for sales. off marketing year operating was $XXX.X G&A million, Sales from XXXX, was For sales XXXX. sales and XX.X% up X.X% and of $XXX.X of

million for XX.X%, are Operating sales and margin we up the X.X% the XXXX, the up range fourth X% the million. income For from planning in for $XX.X quarter, to and XX% range, was in marketing X% was R&D $XX.X in range. from G&A Operating XX.X%.

XX.X% year in full XXXX. XX.X% the was margin For XXXX versus operating

of sale in million. for non-GAAP that quarter, the short-term the fourth $X.X realized we was realized expense $X.X tax of Recall million included are versus quarter investments. the from fourth earnings.Income recorded $X.X a the For gains gain million

the full $XX.X year million $XX.X for Research in income was tax fourth $XX.X Net was XXXX, the million up to $XX.X from million. versus attributable income million For ACM XXXX. quarter,

net fourth quarter, million XXXX. in the Net ACM full income from $X.XX $X.XX. Research year the income For to share was diluted up versus attributable was million in $XXX.X $XX.X per XXXX,

diluted For cash equivalents, million were versus sheet income at selected year end the per Cash, restricted $X.XX.I the of third $XXX.X million and deposits $XXX.X was was between third own the full our of Inventory in items. now time goods XXXX the also finished raw cash process $XXX.X $XX.X balance Total will million year-end versus split end quarter. the at net was year-end mix share $X.XX materials, versus $XXX.X goods inventory inventory The work at quarter. million and finished million, $XXX.X $XXX.X million million. at included facilities. at review

As the $XX.X the is at finished the and during David million $XX said, year. expected to for million facilities QX our ship XXXX.Capital nearly own expenditures were all goods in full year of

be For in Shanghai will ACM and primarily expenditures. and our the capital million in XXXX, in prepared will This we complete new the about That our $XX Lingang for remodeling include expect to investment spend U.S. investments to remarks. also and Korea concludes headquarters

the ahead. that open Operator, please call may go for let's have. you Now questions any

Operator

with comes from Roth question line first Our Instructions] [Operator Desilva MKM. the of Suji

Sujeeva De Silva

progress. there. talk on It the like the sounds about you progress international Congratulations Great job customers? Can making there. you're

of pace that. the gauge to trying Just

be customer or assumption loaded timing? you contribution you half from have it likely it 'XX upside? potential full guided is do And As Or year, is first some second international most that in would that back-end half?

David Wang

Okay. Thanks, Suji.

Okay.

pros a I tool think [indiscernible] have ago, year hardworking Then engineer first this right? service acceptance. tool are then a we ship and we there gather

-- SAPS So tool, the we this and mass address I particle good their want and that production, will can continuing needs the see in this customer get And less production. to to we much specific a Megasonic what see get also, also we consumption. performance

customer, as and secondary same right? the I mentioned, we is believe same in the tool, additional also ordered tool. by their a [indiscernible] that's for So lead meanwhile, different is customer and So like which have [indiscernible] we And the shipped quarter year. this second backside to was the them of customer, definitely will this we order qualification really and

is, will oversee right? is customer see be our that example be want forecast. in to big U.S., I technology, and XXXX We that outcome. is So this So it there our too. see key can good adapt also this of and that a international, revenue also, encouraging differential player year and we'll call to And other the we another contribution the course,

Mark McKechnie

into for I'd contribution. Suji, international, for the an it -- of several year for mean tools will some don't a have and that our big get a just We will us that we a depend ships building that add I go forecast. or for be one we'd XXXX, year, lot order XXXX Whether expect additional Yes. year for -- next could ships this us. or be how on things

Sujeeva De Silva

again the didn't there? you just the the can is, maybe delays, and question in the second prepared catch was it what dynamic my And explain Okay. what shipments remarks.

David Wang

delay. in delay on. investment customers, I installation, enough. of certain, or in enough resource not because also it's call about going and the -- fast there that, I the is plan I not floor QX, the the And or call mentioned the there call the And Yes. think building Anyway, plan is plan they're our we continued

of It's portions save also going delay, be the those We And built spent been said, the So as already. it cash. I will the Those that's to definitely XXXX. also have in added delivered year already. shipments. last to X our

will shipment there increase. even higher we'll XXXX. increase, also will So I the in an call rates that We quite revenue we and right, would And than XXXX, that see say increase total to be happen. in expect the believe that compared

say, I year So that's in XXXX. us another, a can great for

Sujeeva De Silva

I'm question the like stabilized sounds in is DRAM and increasing and [indiscernible]. That the around overall DRAM. memory CXMT production is again trying demand like has someone understand actually to versus whether My And last maybe NAND Okay. across to environment. China effort? progressing capacity development is market

David Wang

you Yes. multiyear in we're customer is right? can memory to our business XMT in I a still So China this mean and other it's memory year [indiscernible] again see XXXX, expansion. continue to expecting that grow,

as good grow. And see that continue And for we that so we market to also us. see a

Operator

comes Stanley. the Chan of question line Charlie with from next Our Morgan

Charlie Chan

for very Congrats results. a solid XXXX

more actually were they is your that growth. So the Because than like outlook ACM I Y-o-Y XX%. XX% you my full XXXX first on a primary I growth guidance. entity, Shanghai had question remember have year impression the revenue

like it's Y-o-Y. So I calculate your midpoint ACMR, suggesting XX% the growing

ACM Shanghai parent the what's the versus company? your between discrepancy entity So

David Wang

U.S. versus GAAP. Yes. using a Chinese rule, like revenue a difference slight recognition we're GAAP Well, the there's and

evaluation. both that in the be repeat a recognize order But take GAAP will the you is GAAP that's tool, time can or it's in difference on -- primary is after So first shipment, right? that, repeat just general, the order. reason a that have see we long U.S. to is China, And Yes, of new forecast. show

really acceptance recon have of by You accept installed kind you initial and can revenue. the customer, basically then

see as recognition of new quickly revenue the what In different revenue a have that's words, U.S. recognized versus the the can other China So new right? customer, be That's [indiscernible] and difference. the show lot probably you tool probably rule. core can forecast we a

So we there. see that that's the difference

Charlie Chan

I see.

efficiency, said, major as local right, is mean, question dropped gross that next my to already sustainability, some right your So see the CapEx of like I China margin for you customers, their gross right? you margin. it's also about now, XX% but

So worried sustainability. I'm the about

of or So attention any we pay science kind seasonability. right, check the lead China to, indicator should to CapEx

David Wang

process. I Yes. than say nodes we to Also, gap, said of mature a fab in the continue to is Also, no [ right? produced right? building China's product that can that matter the capability the our, of you chip, especially is next is will I Well, say to a higher consumption is ] before I I thing and at years be in is in it, I'd is related in China say nodes call should look market the the logic still the, of another in want in that, China So or still way call lot this couple as China, mature memory it times few grow. still multi-expansion EVIGBT the the

Charlie Chan

Okay. Got you.

one back yes, to last question, will queue. and the So I be

assumption Since us campus, updated give Lingang can Mark. also and So new the for are to margin you ramping some XXXX? OpEx you up a question gross

Mark McKechnie

asking. for thanks Charlie,

for yes, said there, to at unchanged that detail prepared level. kind are -- Obviously, last my for numbers. gross I our XX% remarks, it. the levels, than that's we're then level but margin that's repeat these and non-GAAP target OpEx is margin the model target XX%. years, I'll of ahead the better the I And and our anticipating done We're we've go gave in for several that So, some but

at G&A expect marketing, and a X% you to a R&D the R&D. our to as X% and X.X%. is then in about invest -- we're level outlook company about And range We expect Sales strong XX% in continue growing XXXX. pretty for we non-GAAP always spend in expect should to

Operator

of next Miller Mark [Operator Instructions] Benchmark The the question Our with comes line Company. from

Mark Miller

all, a to on the But of great congratulations another wanted into first just quarter. Well, December quarter. little more the OpEx get in

marketing and You the did mention down. was sales

because was it so system. said much? why demo a of that You fell confused I'm

Mark McKechnie

the Yes. and It a promotion sales was in decline marketing tools. significant

of the won't and forward, So you out we level see sales expense. that in that going took the marketing. marketing expense and sales And

And so full for kind the was on looked of we and at marketing year, X.X% about basis. it sales non-GAAP a

that of expect be next sales level X% we non-GAAP year. the in so X% to to marketing And and kind

Mark Miller

underway. when quals of little little you you quals a you of Can us color of quals and give had a us expect your Can going say terms revenue more you a on timing in give what's -- with lot generation? you

Mark McKechnie

at our customers. of you he's it and -- I add address to can terms then I'll In about yes, evals David, let -- asking that, our Maybe

David Wang

right? general, In

Mark McKechnie

Yes. Yes.

goods largely And of comprised so our think, finished is -- that's customers. I Mark, inventory our tools at evaluation

And so David. I yes, think,

David Wang

Yes.

me tool obviously in new finished there's whole want and make of first customer first the those tool Let qualify They customer, in production for to are first-time And the first qualify the tool. That their right, the sure just sometimes a to buyers. line. especially itself, evaluation, side not be goods those is can see. mostly for

the the tool, tool X years. need need some right? to the the how it time, first process sometimes evaluate and that That even also come depends that, takes is. tool, a right? well, look and we -- first other call how It we yields is Also, takes a there's mature, You building on a out. You real X.X X team beta year, at mature customer brand-new pretty

where we of So as those consider our pool. kind first tools

Mark Miller

And question. just final

business SK Can give update more were You to going on guess, there? us you previously from on what's Hynix. an said in investment you I Korea get more doing

David Wang

Okay. Great.

We our employees now. about are customer, manufacturing XXX in engaged real Korea actually And right because Hynix a we're right? I the is right fully have with expansion now force customer, in Hynix R&D also mean, Korea. So long-term emphasized in our do a we also real investment

building we and mentioned, to a time. at the bought factory there proper land future also I As

that tool divided copper-plating and trying furnace I'm to that have Track. cleaning, we So also including point a key see and like and PECVD is multiple they're also

these X differential all also product local technology, of differentiate were which quite we because is So and customer offer Hynix relationship interest in the also force trying a and in and engage an customer interest to from of with with or Korea. our tool because and customers getting the R&D

Operator

Instructions] [Operator next from Christian line Schwab Our the Craig-Hallum comes Capital. question of with

Christian Schwab

Fantastic year and quarter. great

I'm or better So China X better reasons in either to standpoint, to understand customer year-over-year? the a a from outgrow WFE X globally trying your not product your but category or ability standpoint and conviction also only

David Wang

Great. Okay.

And I same and think product, Tebo right? is plating. our thing copper the ACM Tahoe is differentiated even building the know Area, for And there ACM R&D call right? beginning SAPS, were already like you from cleaning, we're philosophy that pretty started we differentiation, Bay the In product. each

those international, SAPS right? already also, have European we So get one and differentiated our or have cleaning the And moment, the manufacturer U.S. adapted by think SAPS is goal with adapt is we local The example Megasonic building And I penetrate a technology, differential in tool. we product widely products customer the Hynix. already. also into Also in the bigger been this company China. can in accepted has get into

furnace. Tahoe. is With COX product patent able another beyond it Beyond their right? tool, that, also be [indiscernible] plus ALD plating. have have and tool including for we the to and furnace dry supercritical that very will for be said, was to we next I as penetrate And Tahoe, And exciting copper also, with Tebo international And market. wafer is what one Tebo, [indiscernible]

our point. So I the as and that, of Track course, has design differentiated developed say also we proprietary PECVD

will different sell benefit confidence the than that's the, tool offer the call our other developed can We the which this product, So record. international ACM in really also And put market. differentiation, differential our our and I doing. competitors offer and proven

Christian Schwab

Great.

So better than your a congrats very product again competitors. on differentiated and

know as guess, on the market. are earlier, quick the front, that? would a for I numerous how mentioned kind last international of it you growth from Just looking you thought asked then I year-over-year it outgrow much follow-up was but you times is the you why of

more if So willing you're to I'm just provide wondering clarity there.

Mark McKechnie

Christian, I'll hit that. Yes.

I development. of mean, contribution still small It's pretty our outlook, year. this to international range, in So from be the kind terms have of going we a

really So the in market, the most of Mainland is market. XXXX from substantially, planning that that for growth China we're China

customer customer cycles, product New -- traction. additional

Christian Schwab

my very larger. your last was guess 'XX-'XX TAM or How I for is years to success broad-based then a substantially Or question takes initial us you it building globally great Is is like the outside reasonable is then products for is assume China early sounds internationally? in of for And many do 'XX. shipments this Okay. that event? It year too year, starting to a 'XX it think know?

David Wang

is Christian, this Yes, good question. very a

lot right quicker, doing we here of we're the qualify way obviously quite A right? the think it's now. now, I a fast in growth market, products Mainland China

started China say, will years be should couple we -- I simultaneously, mean, even years, only, expectation goal X also penetration. go. next our should reaching think $X I Within by years, -- of -- And market billion the right? are market those few we global in a So we ago,

executing we're sales international the our how really is So plan. key

Actually adapt I again, progress. with more see looking we'll that right? tool. have customer first, the for our confidence U.S. customer, and the We cover do that the additional too. the product differentiation, a we market now, that mind talk people in customers mentioned, guy a this the as So I everybody good quite may see back of Europe. as we we right And have our also call as Korea. tool in other And the and sales hiring in and way, international to have we in for Now let's bit U.S., of put

which But product, differential from give supporting you as definitely happen. also is strong revenue precisely. into that the said, I will have I see here our how sales year with with ask bigger we international well So then financial we you penetrate But to a market. think, in

times Even like I eventually, executing the outside couple our said, goal. more Mainland -- right? asking revenue before, quickly we Mainland plan have very next few the of reaching half is to China, to half So exciting China, a mentioned Mainland outside as our and you And from from want actually we China. bigger real years quickly a contribution

Operator

Our Morgan Charlie with Stanley. comes from question Chan next

Charlie Chan

the So [indiscernible]. think new I customer are contribution cost right

So it screen. radar was in our

you I'm [ big provide including such more or customer. is becomes And sure equipment that [indiscernible] So some purely detail, A&G equipment. if ] also some why not can XX-inch a

David Wang

Yes.

sell also now. we now primary there, [indiscernible] the is And think I the most is XX-inch mature tool, a to expansion right?

us the China. largest auto So our we lot auto actually of bench. are probably They bench now in sell right for a customer

also the the wafer, forward, our I good and they why very And course, in primary also relation them buy the we looking of driving that engage furnace customer [indiscernible]. in second plating, also think copper become right? So a XXXX. and largest have to that's So with

And our, so And tool say we're be a contribution, customer, happy it's [indiscernible]. -- the from with production we bench and I and our in largely in great line. another deployed can that's said, seen auto

Okay.

yes, right? it's so So a great business,

Charlie Chan

the to in assuming you're lawyer that [indiscernible] customers I'm So assumption? U.S. comes export out is control right before shipping about the your other

David Wang

And non-U.S.A to for restrict control we're said technology, customer, mean, to also rule, as be right, the all U.S. export those we I whatever straight carefully have follow parts, right? Well, yes. [indiscernible] very and the here. And

with we U.S. and the very follow export control of carefully managing strictly are control and So pretty standard the role

Charlie Chan

Okay.

Okay. And advanced HPM. next the memory, question is about

as production you news well. have question also the we asked can may also, And opportunity HPM quarter I own line? production. your about there's last about think recent China the some HPM for So that in talk Korea

at opportunity can customers? comment you So your and about also Korea potential China

David Wang

They're our packaging, also, Obviously, process. also TSV, Well, HPM. Hynix And it. need their plating order we this And definitely HPM copper product say involve the provider, #X a see leader, this the Yes. technology is let's think is tool, either right? I they right, current way. whatever a the

So tool the with tool next as and that's further, should we working too. with And Hynix. closely are [indiscernible] we're working I other them

cleaning, them with than So sold actually by of SAPS there's Megasonic, a the -- way, other lot we the Hynix working cleaning other also including too.

I future. the demand further much really, In greater right it's it we right? not a not development [indiscernible] now. China, just HPM have we good call opportunity. very and differentiated technology, a I right HPM lot -- It's is they supporting really greater, now, So mean in much of need can hear a

words, the the for opportunity. outside for focused expansion on other we in China So are business really HPM

Charlie Chan

Yes.

global about on talking right? based the global your memory. vendors, comments this So other year, from revenue equipment FTE They're and the comes HPM also

top memory Is why So revenue of the XX% of that contribute also your the than Hynix year kind think spending opportunity and recovery? you Hynix? given can do customer? HPM more Or this

David Wang

HPM is moving, mean more mean, right? I memory here. other right, Hynix looking than for Then Well, That's here. other I than key market, really players, also obviously, -- is the

right back So of This it predict that come for as customer there. right? to time not demand XX% plating -- know don't really I copper is there, the I to demand we cleaning now. what see is mentioned, us, is our

right, something So especially really market. I will see, DRAM see to from really or next it's second want year -- recover year, half we

Operator

Our next question comes Lee Jefferies. the with from Edison of line

Yu Lee

question, your the one just quarter. X a for great on David customers XXXX have Mark, and amounted I the XX% of has So, contribution to revenue. is almost of which which congratulations

some to contribution X XXXX? X you And is top your give those X the customers to top that in whether customers top on color So as think be can expectation what customers to will XXXX? the in you us continue

David Wang

and this X simultaneously fab customer simultaneously, back say revenue are expansion come the contribution. building XXXX year, that's continue, building look bigger will plan. still additional And top I top They they another Yes. And they think, grow, So customers. this fab Actually, in see [indiscernible], we of our our order are will probably And X right? also they next I I Also, are home. also body right? at the have the property major right? the year's probably X customer year

Yu Lee

on related is that midpoint, Maybe XX% your guidance, that Yes. based revenue a question plus at the growth. implies

And so XXXX. that's significantly the growth rate in below

think matter you is the period? do time be driver So your some to Or digestion of is taking for as tools revenue. just there evaluation a key recognized

growth the the the factors of in So terms rate? what key are for slowdown

David Wang

Yes.

a coming the gained market do existing WFE rate slightly customer do all rate new we a our, like will the right? force flat or furnace rate and growth is key together, the higher a that have growth market than this say So more is second for a that's China and our revenue, for most and I a China. increased, added continued also we important. to in But is also growth the we I the us continued, at our see of customers we WFE have call have share as in least important, game that's year I contribution higher driving maybe our from and market give -- I want have it, because see think #X our to that basis mean, forecast people

Yu Lee

for of your the revenue do last is you percentage the Okay. XXXX, is And guidance? think what one that overseas in

Mark McKechnie

about didn't Yes, -- We Edison, very be but we we're did it it a couple we significant contribution we questions a out, that. XXXX. wouldn't -- mentioned not other break to didn't

build year. not we to than that think It's a will bigger a piece. in was expect significant years, We it the be very -- but this -- it's coming it

huge numbers it's so to than and And more right? going a be shortly, you got wouldn't numbers the you expect will XX%, become to international the but -- it I Yes. not get

David Wang

Yes. rate mean, growth is course, should say right? But there's a I obviously, higher, number. I of

real like number the number, revenue. said, total the of you then increasing absolute still we're So

Operator

this the Boyle time. further showing over I'd closing hand back like no at conference I'm Stephen for questions to remarks. to

Unknown Attendee

David, Mark Okay. on and Great. thank you for Thanks, participating call. all and today's

March at in our Attendance at just Conference by XX, Before quick everyone the Annual only. on investor a will is ROTH want we conference conferences. to On Point, conclude, Dana XXth present give the we I upcoming California. reminder invitation

one-on-one call, For now team. register to respective concludes please interested the This management contact disconnect. with schedule and meetings and representatives the your you sales may investors,

David Wang

Thank you.

Operator

you call. for Thank Thank concludes conference your participation. you. This today's

disconnect. day. a You Everyone, may now wonderful have

ACM Research (ACMR) 28 Feb 242023 Q4 Earnings call transcript