Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you talk about your aspirations for advanced packaging sales for the current year? A: Definitely. The advanced packaging had contributions from both our chemical metrology division and the dimensional metrology division. We expect this year to continue and grow by double-digit growth. With the addition of Centronics, we expect to fuel our growth as we move in with this platform to additional customers. - Gaby Weissman, President and CEO
Q: Can you discuss the services growth outlook for this year and any impact from the restrictions that came on late last year? A: Our model assumes service growth between 10% to 15% for 2025. We don't see a significant impact on services from the restrictions. - Guy Kisner, CFO
Q: How are you thinking about the demand for memory versus foundry logic into 2025, and which segment do you expect to grow faster? A: We expect advanced logic and advanced packaging to lead the growth in 2025, with the HPM segment as part of advanced packaging growing with metrology intensity. - Gaby Weissman, President and CEO
Q: Could you talk about the drivers that are driving the gross margin expansion in Q1 and what it would take to reach above 60% again? A: We remain committed to our target model and anticipate strong gross margins heading into 2025. Reaching above 60% is challenging, but it depends on the success of new products. - Guy Kisner, CFO
Q: What do you see in China long-term as a lot of your peers are seeing their China exposure come down? A: In 2024, China accounted for 39% of our sales. We see the share of China declining as growth this year will come from advanced nodes. - Gaby Weissman, President and CEO
Q: Can you discuss your contributions from the Centronics acquisition and its margin profile compared to your existing portfolios? A: Centronics aligns well with our financial model and is expected to contribute positively to our financial results. We expect an upside as we progress with the post-merger integration. - Guy Kisner, CFO
Q: Can you walk us through the drivers of the strong sequential growth into Q1 across end market products, including the Centronics acquisition contribution? A: We expect to outperform WFE, driven by strong end markets like AI, HPC, and mobile. The first quarter forecast includes revenues from Centronics, which had about 10% of the $200 million market last year. - Gaby Weissman, President and CEO
Q: Can you discuss where you're seeing significant share gains and in what markets? A: We saw share gains in PRIM stand-alone OCD in advanced manufacturing and packaging, front-end chemical metrology, and integrated metrology, especially in advanced packaging. - Gaby Weissman, President and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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