ACMR - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Fiscal Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call.

If you have any objections, you may disconnect at this time. I will now turn the call to Mr. Steven Pelayo, Managing Director of the Blueshirt Group. ahead. go please Steven,

Steven Pelayo

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

On me McKechnie; David Lisa our with the our Feng, Wang; ACM subsidiary, of CEO, call our are today CFO CFO, Shanghai. and Mark operating our

continue, please we X. Before to turn Slide

on ACM's call that a statements of remarks with do to described stock-based predictions, these me the other you basis, forward-looking in results as be of under results information short-term [Technical any you that call forward-looking not on is provide and judgment revisions ACM's compensation only reflect on reliance elsewhere unrealized to on investments. filings obliged this statements. Certain opinions which call. might Difficulty] and are not loss Commission. estimates place ACM's ACM an are that Securities made represent Let risks date materially. Those current to on subject this or financial the will these Risk include excludes may of be and we this statements, risks forward-looking Please that non-GAAP and Exchange update remind forward-looking. These the which undue Factors during gain considered

of earnings on noted, non-GAAP to reconciliations XX. Also, Slides GAAP you results and release, the our should is XX and our and otherwise and our which For website unless posted amounts, IR full XXXX David section to GAAP call of refer and the to year over the fourth following and XXXX. With Wang. and quarter fourth of David? quarter the are I'll that, turn with figures now the comparisons year full between refer

David Wang

Year XXXX and Earnings ACM and Steven. Research Conference welcome everyone, Fourth to Hello, Call. Fiscal Quarter Thanks,

the of Before the results, added our entity Department and list. to companies structure U.S. Shanghai Korea, added XXX recent will updates and ACM of December I the entity review the address entities regulatory their Commerce were list. under Two from ACM subsidiaries, its I X, U.S. government. On other to

ACM our noted, have The we remain we and impact the a to localize We supporting our List, line, bottom many quickly of that customers Research are is Entity on On our list the interruption the working production were complying business. regulations. think specific all not our for and we we status a we we committed for are have Research have U.S.-sourced localize a of new entity California including Mainland in more of U.S. are As Thus, chain from components components regarding chain. it subset. And been were U.S. ACM XXXX the we time. Events wrongdoing. to supply our have added, even working company, our its Shanghai restriction supply some the small on added it for Inc., of ACM reduced of past important just in if few we of that with to our be manageable, one difficult, subsidiary The global transition. note, operation not to with notified clear, complete ACM to made founded regulation years, China. was not and we that will It ACM U.S. and the To expect significant to Shanghai is XXXX. make the impossible, in Inc. Move on obtain any Shanghai to not do

to mainly directly ACM new do ACM U.S. companies us. affect tools of exports Department Regarding restricted rule our customers buying not U.S. Korea. Mainland from of the outside and global Shanghai China, Commerce They

to global business can we confident therefore, are, We customers. our expand our continue to effort

Now business with capped Slide a Please results. year. strong to on pleased our our quarter with to which results, X. I'm turn fourth

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

the fourth fiscal full was Operating the fourth net with full in $XXX XX.X% XXXX the margin the year. ended and million quarter of deposits for and We and to year, year cash end For we delivered million XX% quarter of year. the up XXXX. XX%. profit $XXX million XX% $XXX increased for the revenue, time the the for compared at XX.X% in Gross

the $XXX shipments the strong the up $XXX cycle. new fourth XX%. the million, XX%. We and reflects full for the shipments, for were momentum growth ACM's were For up million, from quarter gained market product presence Shipments believe year expanding

specific discuss estimate for product now our billion drivers, will key Slide product $XX to Research. Turn I the Now to both X growth address market to SAM. opportunity. portfolio We and the ACM our the market global for

Our track with by current groups: furnace, the and this SPM in category driven anticipate Tahoe, starting new primarily product major incremental X advanced followed business plating, contribution and revenue and is our from by growth continued products, cleaning, packaging. We PECVD. to look

estimate available semiconductor estimate sources global of $XX billion about WFE, to products in SAM this market Third-party $X.X WFE or we grow by our global address will that now on server a X% billion. Based XXXX that in in total. the

the For grow billion. industry WFE, estimate Mainland by XX% China to analysts market $XX

China's new and current attribute customers. cycle, revenue, gain share product, were We shipment strength Our product growth much market new growth. and our than rate, WFE XX% to the from XX% higher

a had execution from also our production and good teams. We service

starts our to X. customers. Please success with Our turn Slide

TC customers at and was of that Group or were our For for at XX%. at SMSC The revenue. and the was XX% had account fourth XX% individually PXW Huahong and X top more customer of sales. our XX% XXXX, one third we second

Slide will Now represented cleaning semi-critical and Tahoe, on grew in Revenue XX% revenue. to XXXX provide from and products X. of products. Please turn single-wafer XX% total details I cleaning,

tool SAS, by in Ultra from and driven tools. was growth cleaning Our good a increase growth the our ECP TEBO backside significant

contribution and etch TEBO Tahoe had also a We from tool. our

cleaning cleaning the other the global tools ahead, from continued portfolio. and see top-to-bottom take and and $X.X XXXX X%. We more cleaning others ECP, we it than believe take TEBO, Tahoe, SDM, cleaning a expect more cleaning than market. Revenue about strong for furnace, cycles, in and SAS, of market $X.X to share that TAM fourth process Looking and market or for offer represented us in China. We than ACM's ACM's our estimate in complete billion, record which we available position Mainland segment in SPM, cleaning significant and including growth China contribute steps. If We close the is portfolio achieved total product tools, In cleaning, the revenue. to more other of TAM etcher, million, in million XX% $XXX from including year. product quarter, grew our total Tahoe, revenue will to for quarterly semi-critical in million and billion a technology a of XXXX, at XX% the puts $XXX XX% comprehensive of to more several $XX global the all share put supports global revenue high-temperature of

and see continue We momentum to both for back-end our for applications. tool front-end plating

ALD customers. In product our encounter about response panel-level where plating ALD global announced door new ultras furnace has approach the excited tool achieved their at position and high-quality other XD Mainland more on we facing the thermal furnace makers differentiated makers qualification horizontal enables step initial challenges are X us excellent increasingly semiconductor suppliers believe our packaging for manufacturing. to China to the coverage. film design and to relying with we in We the address plasma unique ACM's to of customers. Chip that QX, We from are is tool advanced our opening proprietary believe structure

the customers. and gaining cycle is with also furnace XXXX, logic of end in customers furnace memory X traction Our at Overall, from both XXXX. had XX product we up

had and horizontal new in half coater, a track packaging tools, revenue includes parts accelerate we versus are XXXX. And for and notable for especially X% orders and in includes relevant one essentially tools, We announced revenue. that believe including service wafer-level from tools, first vacuum and also cover ship excludes advanced is cleaning for a a spare packaging.Â We which tools, of sweeper, from flux chiplet, in to of grew XXXX, U.S.A. the of scrubber, as a tool packaging in of expect category service the amount a furnace spare ACM set tools polish and category tool, packaging XXXX but bevel see the XXXX. Revenue development of companies and X developer, bleating including parts. We panel-level contribution for X% including high-bandwidth packaging we to to which bleeding a for offer a web for a X tools, the ECP, HDF. etcher, the the which this packaging, represents and GPU range advanced of XXXX This small full only tool, etch wet on memory

ACM's innovative for and differentiated with TSCVD and progress good platform. Both these and design of products throughput. with new are process We Track come making allow platform flexibility high our and

a solid and of evaluations ongoing for list both demonstrations and have We TCVD. Track

deliver XXX-millimeter plan our WTH we in beta For Track, in-line the XXXX. middle of to tool

We some more contribution in and later revenue expect beyond. in with XXXX XXXX initial

provide me let our on an facility. Next, production update

for and First, R&D X. of manufacturing. initial In pleased begun production we site development quarter high-volume play and the XXXX, expect center. I'm had in to on to first we opening the Lingang grand production that key Lingang. turn have our Please Slide to a operation ceremony and a role report efficient

end We of facility by our company-owned our from Lingang of Tansa-leased shift our to the to production expect facility most QX.

accelerate plus meters our rooms, which development of speed demonstration proud and expect our are XXX capability. product We we will square in-house clean X,XXX

support be our facility. tool It which as our see of demonstration U.S. will opportunity X,XXX-square-foot will XX,XXX-square-foot our for In Next, global a great of the base for Please completed XXXX, Oregon cleaning Oregon the expand We further we purchase to in our the includes Slide a X. new and space manufacturing turn October customer facility. room, advanced R&D. The rest to customers. this

our I review ACM some our outlook, regarding thoughts want Shanghai's I of ownership share to stock. Before

as be semiconductor ACM ACM has very which are the also has capital to to Shanghai the success of source RMB the become dividends. In of million, of by team, Shanghai, dividend pleased respectively, form received dividends XX.X a supplier we to Asia We to key XXXX a continue. industry. XX.X Shanghai great us and of proven million a net the now of we 'XX, the of in RMB shareholder ACM expect major and and tax

to XX% to XX% shareholder the approval. of In announced formally dividend normal intention of a to subject earnings its net ACM years, X next fact, pay has over Shanghai

now a accelerate market business us our to for stock, global key Shanghai global stock billion a shareholders. market using is We strategic cap on which development. ACM at the dividends and Shanghai our trades are asset $X.X also

current raised ACM XXX us USD and to in enabling business million will In to company the USD to about unique Shanghai billion, level. I XXX of now XXXX, worth advantages. In of few for options. the some ACMR's expand is fact, might is our which our our $X.X us is raising product than Xx cap another gives market IPO, Shanghai portfolio. billion. a evaluate in XX.X% next This scale our ownership more now market helpful million the clarify points RMB ACM take process that the be up to to X.X

and to sell X-year flexibility expired Our our now shares. Shanghai lockup stock additional last we on ACM have quarter,

markets very would our depend conditions on to support global comfortable factors. We combination of uniquely team substantial We believe supplier. U.S. WFE cash timing positioned world-class capital to shares are world-class customer and can repatriate a sell sale, stock own become The ACM pricing, Shanghai and to and make needs, market cash access technology ACM's other of the the the and that course, us of the any and ACM back some of

the our year-over-year for XXXX This Now we $XXX in turn year XX% outlook I growth $XXX range will midpoint. the the Slide provide to of outlook million. implies early XXXX. to our revenue introduced January, at In full XX. million Please

has the founding company of since business. in today achieved range establishment our prior XXXX, target strong I'm announce XX%. I'm this to a built we XX% outlook have gross target our of margin of California today. XX% the XX% in proud reiterating have XXXX to range Shanghai now versus are that growth a and We to pleased adjusted we in of upwards.Â We ACM the competitive our globally

the In electroplating, and and innovative expanded in The has across ramp in Singapore. our success PECVD. Outside China, Korea, innovation portfolio engaging and and technology, panel-level leader new furnace, product is of global is the multiple base product electroplating we a solutions wafer track, while for cleaning have from recognized strong gained are our Taiwan, to on with differentiated next-generation for cleaning preparing interest as offering operations ACM including is and packaging, our we with front-end market a key with and fab Europe, back-end needs advanced entire Our advanced the players. the partnerships building the foundation, particularly packaging. semiconductor evolving and a front-end U.S., customers wafer addressing reach manufacturing. From broader international and this traction industrial built plating in cleaning China, been in

the to review Now quarter Mark, call let fourth CFO, the please? turn over results. of details me will Mark, our who the

Mark McKechnie

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

revenue cleaning, XXXX, up cleaning up XX.X%. $XXX.X semi-critical was million, was and year full for the Tahoe, $XXX.X XX.X%. single-wafer Revenue million, For

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

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

category X.X%. in million shipments fourth by million QX of Total XXXX. versus grew were For for year XXXX, $XXX full the the $XXX quarter this

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

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

margin We updated variety to of million our and vary $XX.X volume, the XX% currency our to business a XX% period factors impacts. Operating range XX%. We of mix, the to XX% period due to up versus from model prior margin target sales such to have fourth range were quarter, as expenses a do gross of expect long-term product gross to XX%. for

line, million, were than Revenue grew new For expand XX.X%. research invested the for leverage our in to development operating and our the year, in world. in the the full customers $XXX.X faster and we invested operating marketing around expenses and model. We product year solid XXXX, up reach sales demonstrating to OpEx

range, XX.X% and For to up range, XXXX, the XX.X%. margin from for million research X% marketing for and G&A Operating fourth the XX% in X% increased and income we $XX.X in XX.X%. XX% in the development plan to the to range. Operating to sales X% was quarter, X%

to For the million tax versus full XX.X%. Income year from increased XXXX, operating $XX.X expense quarter $X.X margin the for XX.X% fourth was million.

in was For income $XX versus the XXXX. $XX.X full expense million XXXX, million year tax

to XX% was rate fourth we million. Research the to For versus $XX.X effective million in expect XX% our XXXX, tax $XX.X quarter for the range. Net attributable income ACM

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

full income $X.XX diluted versus the per For $X.XX. share year was XXXX, net

and net stock-based fourth non-GAAP $X.X full excluded $XX.X the the year. income million expense in compensation Our million quarter for for

end $XXX.X equivalents, operations and the For will the cash restricted cash, full $XX year versus were I expect the $XXX.X $XXX.X $XXX.X $XXX.X Cash, the cash, time $XXX.X $XXX inventory excludes XXXX. Net quarter, balance year was $XX.X the million tools $XXX.X the quarter located work our be flow year-end XXXX. were the versus XXXX. primarily million. Finished at quarter of million and end the of Capital XXXX. compensation the range. expenditures third third we This inventory quarter at million third $XX goods in million, which for of and end million million million million stock-based goods and and with now included the customer million for short-term evaluation facilities. Cash first of long-term Total XXXX, the to of sites, review ACM's million full raw million and finished the for at at goods under sheet for flow and debt million the selected was full year-end the at deposits items. $XXX.X of was consists process, together at materials in fourth of versus at finished of the XXXX. inventory cash quarter from $XX.X year fourth

spend XXXX, our does about year capital full million conclude million expect $XX to prepared remarks. That to expenditures. we the For in $XX

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

Operator

with from the question Instructions] Our line of comes & [Operator Company. first Charles Needham

Yu Shi

little maybe at provided reiterated the in growth that in high at the the into on did the provide spending color the you end And mention same into range want I the 'XX scenarios? guys X% fiscal end? press outlook. revenue think this that. the year-on-year low the goes assumptions the growth. Can January, you question of on to year are are of you versus little baked So that you low and the a end, get end, a the by various scenarios the your the was bit It's guidance. XX% first customers with outlook release, bit color I of year-on-year high what more what

David Wang

Charles. is year, revenue this revenue can customer say the this on Probably based Okay, there's that. see their their which the about of And of still cannot shipments, prediction our expansion PO moment them we can QX, last really some Actually, see record some plan. QX, is and customer I year. Obviously, we QX. were

So the early that's why of time high-end projection. the give low-end from year, really and we this

range but there. too detailed couple there's of put we the a a cannot So there. much assumptions detail, I anyway,

time more our that and QX, looking moment for be QX, So QX to to clear the projection. may we maybe revenue the we're in can goes readjust

So that's typical did every process a we year.

Yu Shi

follow-up. And point. little only least year, have sounds the maybe It at this like at like you This correct? unclear you're a QX good visibility it's a through that quarter. saying quick third Is

David Wang

QX. of But still, say more, we said, the maybe the the we add of clear. early still still QX Yes. QX But is not year. some right, P I moment What at see you definitely was

in can or QX, can maybe QX timeline. say timeline we that more QX end of see that clearly we the So the

Mark McKechnie

at of go course, time the that's visibility And it a this year-end early of back we took the year process that. planning here the pretty Charles, before we normal on year. of through Yes, kind reported and in then our and quarter. test We and at look come

into visibility year. pretty it's So the standard going

in noted, we probably the have move acceptances still it's the kind First we POs from It's some As timing then through POs of year. that of David as on and we get on of forecast customer hand. based would that the last the based year the also Tools of

David Wang

right months X. average, about But manufacturing to X our on Yes. X is time now,

the be quarter. will of that So the right at projection their looking part

Yu Shi

came usually And other XX% black entity by it's getting to a impact bit 'XX, New were added the to call, the the bit was added little there it customer a about would the to added. coming little before customers I we Year, the what of, which ofÂ export recent is customer control another hard your that your in the export would The customer for recently question, we obviously, because got see Chinese be back that control year. But list. of list I YMTC, of on outlook there's light are out think few and of especially in information but U.S. hole now list, new XX% did predict a XXXX your

maybe rules, can micro plan anything provide, they at level, your XXXX? negative a can what level? positive seeing spending great. If based on that seeing you're any in would get export little you're do little be control bit customer-to-customer a have an So the now, movement customers' bit impact, on of of And sense sort you we right or

David Wang

question. very the And see still customers is are say some And I Real expansion. of customers, the list. a broad we get different. this for Well, customers definitely because some want impact I to an mean,

you hard the description. At kind impact. really with impact. evaluation an in working out accessing the figure the this of give moment, of much general customer to process We're to of still it's also this So how we're

Yu Shi

looks your line, question. product last the the probably wet-clean maybe has particular like reporting plating product and in faster that even have X line. segment. pretty you than So well furnace It the growing segments done

of especially supplier curious you color of was the on back especially for for the China, share you kind mentioned just end you plating do give and a end what going is? market end ACM? plating, think front you see become as for packaging. Can front the little where is of the trend that versus And a end. the do in in where think front versus share like plating bit leading the I I you

David Wang

Yes.

I It's in front think XX% the it's like XX%, back end is XX% our the end. and both same. about market to share the almost and actually

So XX%, of we're XX% in still XX%, X/X, the China. in share market

Operator

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

Mark Miller

I XXXX. year? you're of about projecting congratulations What again, AP-related for a the wondering, are quarter. in expecting their in are growth thinking just on nice sales strong you Once semi-equipment number sales a this firms very terms of AP was

Mark McKechnie

advanced The packaging.

talking You're advanced packaging. about

David Wang

packaging there the I of one X.XD going do puzzle the to see want advanced is XD this here. other, obviously, think we advanced growing. are say, all in thing. certain packaging And on and kind I And

expansion So this think packaging. advanced basically. we And year that than last I see probably of terms better in year be will

Mark McKechnie

the I'd ECP our one packaging because little includes point then of back-end ECP. and group front-end it's Mark, Yes, is but some group everything both advanced And thing the out, packaging. a tricky the our

packaging some of point, So see can detail of give becomes back-end our this point, some more hard percentage group. But when that at revenue. a kind at to our overall it's bigger we

David Wang

is, Also, I to to play. that the to also is Mark, start to want add panel packaging

We we will contributing the do to X in start see market. XXXX, have in revenue too. that So our products

will another So or field technology new part that's new of welcome. we the

Mark Miller

us those to vehicles. of memory, of percent of sales sort give logic, each sales I What to, could wondering say, are was of related some X if your breakdown just you electric how areas? related estimate your and

Mark McKechnie

Yes, don't that tough. Mark, break it's We out. generally

of take business. that of guess, of XX% little over So kind got can a our customers I a were think them you we've XX% at X look right? and our

at generally get like we them and We it out. markets yes, haven't by we so broken look those that, And request end that don't though.

detailed on that don't at perhaps So in you the we a we look breakdown. But could have this into point, updating future.

Mark Miller

roughly business. for your or over accounted XX% Is customers that X of correct? that said You

David Wang

was that's think for X right. over it Yes, the customers. XX% I

Operator

further questions the see no David closing [Operator now Mr. Instructions] And remarks. there will turn I at to this time. I back any for in queue it are Wang

David Wang

you for Thank operator. today's support. participating and all for you, Thank in call your Okay.

we please? Steven, mention Steven upcoming our is close, Before events. going Investor to Relations

Steven Pelayo

David. Great. Thanks,

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

For team. With with please representative disconnect. respective one-on-one register that, and management call, interested investors, contact sales the your concludes to the this schedule now Take meetings and care. you may

ACM Research (ACMR) 26 Feb 252024 Q4 Earnings call transcript