Q1 2020 Earnings Call
Good day, ladies and gentlemen, and welcome to say Cyberoptics first quarter earnings.
Earnings call.
Today's conference.
At this time.
Doctors Carney President and CEO.
Please go ahead.
Thank you.
We don't do like actually participated in shuttle kids Swissquote <unk>.
Cool.
Joining me is just looking to all she issuance you feel pretty Walter show.
We would have you all pretty assumption should be doing so.
Youre welcome should put so much.
It is going to keystrokes your questions at the conclusion before people.
You can you dig initiatives.
Yeah, maybe forward looking statement, she's already bought Occhipinti shale fields wooden shouldn't each.
Just one looking strictly you shipped on keeps what's your children shows you should just be a bundled solution, but I'll discuss financial industry. So the you Wanna get shipped the ticket so strict kibaki and therefore, you should the securities and Exchange Commission.
Oh, Judy did you discuss your children.
You do get she'll 61 killed the middle of those for the foreseeable future drinking it was pretty close and it gives us been pushing so just given your daughter's Interfyl school topic you Becky.
So a little bit still sluggish instead of the height of walk you must be she started and sluggish.
Net income for the Speedier watch each other to digital social Gogo children's Gummy chip sport to beat your true ups. The description films will do that but it's hard times Oh, seven chips, where did you give shoot you don't forget it would be accordingly.
Oh vocals would you Richard but what's changed all TV.
The board excuse he told when we get some shovel or do we get optical inspection systems and see if all these sensors.
Also recognize revenue from seems a book to be or to be it makes it anybody's inspection systems.
Have you entered the full school goes we took it goes back log off making sure.
All of those leadership imports of Turkey, Turkey should be able to strong pediatric subjects.
Right, but the call we'd like it but the big it's hard to believe in fact, all about this this dose false despite being joking, but you could easily global travel and shipping.
Yeah, well be monitoring the situation, but it sure but the most business it could be much.
Oh slippage you didn't get it should be cool that you're gonna do you have subscription was pulled out of all this we said shorts.
People have done it is a beachhead shows for advanced packaging could stitches applications.
These customers altered media stewed yourself individual central to the inspection systems.
So most other demonstrating their system. So I could go stores because of the new distribution should should contribute to revenue stream. The most significantly in Turkey, Turkey ones and beyond.
And just someone or you chose to get you could stores all should remain strong.
He wants to be middle eastern central his position so little fixed projected lays up on what is extremely promising torture that gets.
Well the mobile what's what's called the performance. She just said children's picture than the told your sister ships. We stopped you did want to support you increased to 66. Once you get all of you just don't do video Baldor should the for sports illustrated drinking.
I just March 20, plus tricky well get interested to see what's up with just a few years mortgage said chipsets systems since getting killed it shows.
This is a modest be startups completed that she because the person shows well go gets lost 68% before to contribute.
For sports illustrated Lucky completed system, so with that said the digital deal you did.
Well spoken seem to have instead shouldn't be told your system sold or do you want sort of you told us.
If you pushing to get all Youre looking for sports illustrated in Turkey.
Did you People's do you want but seems like it's Q2 public retention systems digital is pretty simple show together with yours, you to keep your dog actually the first quartile Ticky tacky.
Sure you differently, Jimmy Choo of $1.4 billion publicity, but nobody bodies inspection systems, you couldn't be should see awful lot of PD.
<unk>.
So what.
Well the voice feed all just nobody would affect your jobs have been deployed cyberoptics nobody body inspection systems.
Because you've still got believes that the market for.
Liberty bodies inspection systems it deserves a the objective, but what did you D.
She's all those bodies at 4.4 for the adult clubs so be it makes 600 systems. If you have so squawk, though.
It's all those jobs get used to shoot into second half off take your gig.
Also during the fourth quarter.
We'll go to bed and good wouldn't want people to be adult those studies can sheet ultimately consumption systems that will be used to scale up much of a microwave de beach to college.
I'll give you a significant growth opportunities.
It's all that it's that could be giving it does she have Singapore.
Yeah interested parties you all did you make it didnt like it did he bought good as we've told us to do a good drinking.
He loves what on its good he doesn't look people just im still jumps to pick up you do.
Just to give or does she have second quarter.
She shops medium duty since it's just getting started pushing to get all of your <unk> point $1 billion. She before school talked like you're drinking.
The biggest predicating CJOL t., a modest said that they said so I'm still grew $2.1 billion. The fullest work elsewhere too picky, 76% to get to what do you want to get a metaphor.
Yeah, that's what ought to essentials is forecasted to reach tool the second quarter.
CJOL cities or the consensus in the fourth sport told Ticky tacky didn't get people they used to be adult those oh, what is really yodle, what do you ever be since.
The order backlog of semiconductor sensors with each trial.
Well should meet your teams Dick Lavey sportscaster till the second quarter.
A box pretty close order backlog will stick you can't do the adult of sports up significantly.
Some people shouldn't be a dog loves the whole sports offering.
He was at Stendal backlog Youre forecasting CHF 60.5 dollars specific dupont's, along with your dog post the second quarter, you'll get your Blakey ending June 30, yet.
He's been called you didn't get all throughout the also bought into the we're talking about she goes to because you said shows you continue driving so little exposure, because we got a little too long.
Thank you don't chip or do something could you also scored a bush in pretty good to be good.
Thanks Bill.
Since the first quarter sales southern copper than some well.
I'm, a little color clock stops.
<unk>.
A girl sponsored personally to first quarter on 20 wells for [laughter].
Well some of your calendar quarter one wafersense.
Watches itself.
Overall.
But of course.
Fourth quarter 2019.
The sequential quarterly improvement gross margin percentage goes with the goal.
I'm not so smokes.
Gross margin once again second quarter one woman.
To be or near the level unless its first quarter.
Total operating expenses of 6.6 million.
Quarter One school.
I'm slightly for quarter one Lynch.
Nobilis colleagues level.
Yes.
Our operating expense levels in the first quarter benefited from a reduction of travel cost.
For each yields due to colder.
Youre competing in school.
Levels than ours.
Absolutely.
To answer that's hard to the markets with goal.
Our jobs and wait for such technologies.
That's a second quarter.
That's levels.
From an employee wage support program implemented by the government upset the core businesses, but over the years crop subs.
Appreciate you know.
<unk> expense totaled $664000 in the first quarter and stock compensation expense was $270000.
Total operating expenses in the second quarter 120 are expected to be roughly unchanged on a quarterly once the basis.
Our effective tax rate was 15% in the first quarter 20, Twond that we now anticipate and then an effective tax rate is about 15% to 20% range as we move through the year.
Cash and marketable securities or 28.8, knowing that March 31, 20 Twond.
26.3 billion at the end of last year.
No shares.
Were purchased in the first quarter 2020.
63 million dollar share repurchase authorization.
30 2020.
Our capital resources, our outlook for cheap.
Yes.
Balances and fashion marketable securities.
I'll be happy to take your questions.
Yes.
I have any questions. Please signal my pressing star one on your telephone keypad, just make sure you functions turned off the last receive that signal.
Let's start.
This time.
Just a moment.
And our first question will come from Jason.
Lake Street capital markets.
Hey, guys. Thanks for taking my questions I, just wanted to make sure I heard correctly that you now have all three of the top memory customers.
Oh, that's not going to Juicy sport yacht, who often don't see memory customers at this point, which is good to be able to excuse me I think systems.
Okay, I guess your lately, you still anticipate to be able to add that third customer though.
Well I don't think what seemed to take US daughter, just I'd articles to model source for all this Q2 Thomson you aren't system and be opportunistic that we should be able to get them hopefully disgusting.
Okay, and then obviously very impressive guidance given the environment. Just curious if you could share with us what sort of its implied in that outlook from a macro backdrop doesn't it seemed to current backdrop early remains unchanged between now and then your Q2 or are you.
Baking into incremental improvements in the overall backdrop any additional color would be helpful.
Oh that's of interest.
[laughter] that was going to food you said that we would still be called me got though chip it does that could be going on but though because we think in Florida.
[music].
Oh, well definitely given some of you got to do is still so because I didnt get going its markets, which has been most helpful scripts filled and doesn't meet you're not supposed to be suitable.
All markets our teams to ought to business.
But because of the widest that's usually have seems like some other companies.
Yeah, good coupled together the city predictable.
She announced so good.
Board and getting a good guidance.
Because of Gorgon seems all somebody doesn't start your lives that Michael.
Samsung.
The topic since it Didnt Gibson.
So we're getting some more sumit looking so despite dual dual midas situation.
The storms shouldn't really wants to be listing.
He is too high.
Hi, chips going to be dosing building, some sort of wolves site Gee, let's consulting was probably even though we definitely see big that instead, because it took us to move to slide into ought to.
Just.
Well go to <unk>.
He said they've gone up small store seem to be okay. That's what our guidance is pretty good jet fuel guard.
Oh, Yeah. The only thing you know I would add that is you know that can sell so well.
<unk> is supported by the.
Backlog.
Merck's.
20, twond so far so that's another trial so.
Okay. That's helpful. When the last one from me and I'll jump back into queue. However, order patterns. The tracking kind of this first month of the corridor.
He.
She didn't need significant changes between severity in March.
That's what you're going to pick up just the voters committee.
The situation pediatric it externally as well.
Sure.
Okay.
So.
Any significant changes well because it does a lot of our business more than 60% of our business Council issue.
People don't business that he.
So the goal young.
So you can go up stopping stuff.
Yeah, because that's what I'm all sectors.
I did you didn't get good people would have been talking about.
What do you see the pool.
Oh, just to be but does that give us like my when it comes to wander situation, so really PVC.
I don't disagree that give you additional mold anything else that insured jet fuel good okay, well I think that's a good.
Solvable.
Okay perfect. Thanks, a lot guide.
Thanks, just see some.
A question for want of Dick Ryan with already.
Thank you.
But if the ball you're a your comments on the customer demand, it's kind of consistent with other companies were hearing out there.
Can you talk about the supply side, if shoes that maybe you've seen to date or how are you kind of focused on that to the kinda make sure that you don't see any problems. There I know most years sensors kamada Minneapolis, but can you talk a little bit on your supply chain.
Oh, it's we don't like Doug we could get sorted that the chip since he is the.
The supply side to be collision.
Yes, that's you know.
I'll take that sold tool so a couple points.
You know it's a good indicated sensors do come out of our factory and Golden Valley that factory is still up and running.
Likewise, our factory in Singapore, it's still up and running both bulk operation somebody being the so essential by their respective governments.
In terms of what supply side.
And significant disruptions yet yeah. We did have one you know minor supply issue, but that has got been resolved and Oh, we have adequate inventories on hand, and that's a quite came to be able to absorb that so.
So they fully so far we haven't.
You know experience and he had significant coping related disruptions I think a lot of though.
Folks in our supply chain, you'll have been dean or either either doing anything here, where you know virus situation.
Bad right now where there are coming out of walked out so they didn't even that's control by their respective government. So you know we need.
You know it hasn't been a serious impact for us so far.
Okay.
Oh, just how should we look at the backlog how should that all through the rest of year.
Yeah, I mean, a good yeah most of the backlog virtually all the backlog.
[music].
Bye bye.
We ended the year.
No, but definitely a you know over half of it is it's a political.
Current corridor in Q2.
We heard that backlog are the memory module inspection systems the to be systems will be up $4.4 million, what the borders they will they will.
All right now it looks like Gulf won't need going into the third quarter.
Absent out there so.
A few blogger orders from our own <unk>.
No.
Kind of spread throughout the year Q2 Q4.
And that some of our product lines.
Art for example, the semiconductor sensors that tends to be more of a book ship type business.
The other things.
So we got a pretty good chunk of backlog coming into Q2, and then you know we've got some stuff in Q2 region.
Okay.
So the ball.
The six customers on the me I know some Sir you know, it's kind of a stagnant I think in Q4, all looks like I may have come to life now is that still the your marketing that in China and can you give us a little more color.
That's pretty much all distributors or are there some customers in that mix shift.
Oh, so there's a mixture of big faulty mango census, so we have some stupid do their jobs and so well yens.
Oh.
We don't makes all of them like this when you go to issue Oh, I mean, that's sort of all those activities outside walks packaging.
Oh.
Oh so.
Let's see club for advanced packaging. So he was supposed to patients it sort of Somebody's example, since it would be either because they didnt use different since the spin you won't give specific applications, but the victory, let's go to larger companies.
As we know subsystem system integrators that not specific to some sign ups in Asia.
Okay. Okay.
Well, that's good to hear Oh.
Michael always de that's a that's something that looks like it could have some very nice potential, especially with the growing the.
Relationship can you.
Do you have a sound football that pipeline of opportunity looks.
So to me so light duty diesel excellent.
He is.
Good luck on started as you get seats on those.
Oh, no beams I'd be looking you should look like because you can get more which youre conventional then CD.
On the older technology is.
Paul and I go to quality agents like they they chose to scored the best stuff all the boys historically Oh, the challenges micro do deals on lease cost a bit too and C D or did I get sort of little even like he policies come soon do you have to reduce the cost of using conventional processes.
You will be working with them for a couple of within a couple of New York small excuse quality funny because he is different.
Sure steps.
Such losses.
Usually the eliteness, because we get opportunities going to move people skews the suit on that too long.
So long ago, Oh, it seems like having Smartboard, Washington, <unk> continued to be strong flooding, but this year the I get from if you expect the larger numbers.
You shouldn't applications C b.
Good thing I'll get back like that because she wants.
So the back late fall laptops or smartphone.
She was going to be license.
It looks to be will be able to balco is a true sleep Sims system do you have all we know who seem to see that huge but ski and some people that I did BD big fueled in that industry and micro they can sports to kick up big chunk of the actually pretty excited about Hello.
Can benefit from just like leading explosive growth specifically photos skew.
That brings into that market.
Okay I got you, it's one of the How's the price point of your ask you a in the like all they'd be.
Processes. It was in line with Ah competitors or what do you have to do with your E. S. P. There.
Let me give someone comes out of this Q when people much interested specifically for though.
Maybe I'll cede along so so we'll do better price point.
Skew.
Though because I think I simply want good but even if we did you I think is it do you want to get the Gulf Coast works.
Hi, there who have heidrick applications like before they go higher.
Cookies. Good if you will also work station so that they.
Let's look like if you didn't get small hundreds.
Homes, and it has been tolls or something.
Oh, good calls and depending on the options and application and stuff like.
Well I couldn't be system, because to me because I know that each basically you're going to give you can it get investigation.
No one clinical team has been sitting to my couldn't be bought a good told the lift emerging applications like for the most demanding ones.
Thanks couldn't get the because people sixtym excuse so far.
Seems to be and bunch to be having seen him because he could compete in that so far.
Okay, great. Thank you all know congratulations on continued good execution.
Thanks, Dick <unk>.
Next from Craig Hallum, we have a great.
You don't fix sorry, Joe you build myself quoted it seems like Youre businesses.
Got somebody's.
Your girlfriend areas that are starting to accelerate so some nice job here.
Thank you. Thank you.
Let me give them you know the backlog, where we are at quarter end and you know the expectation specifically for increased contribution for Pemex in the second half versus the first house is it fair to assume about second half revenue could be good or in the first I was wondering don't typically get sold by then.
But you know what would have to help them not to achieve revenues in the second half that wanting access at the first half.
Oh, that's certainly whose wanda situation I do expect on globally.
Oh, specifically, they said because it doesn't do it looks like it becomes very important before you can answer that question.
What exactly is is that we could be so far based on what do you assume see like alone do those currencies have weakened on C.
They don't foresee an adult hofh and ensure that the second half so long as I mentioned, because he doesn't do it site G.
Yes.
I think if it does it all yours, so they're going to two companies like Texas instruments, and expedient and see what does it seem like it'll yesterday, the cascade of significant golf balls, given youre going to be participating the auto and industrial markets in China.
Became significantly slowed though.
Your point you won't be participating in the high end or somebody puts out a stores, but certainly what happens to write us on the overall economy, it's the studio city because it didn't get phonics feedback.
For all the World is having said that could you maybe also give mr. Doug you should continue.
So that we could get people go actually.
I think I mean, I think he said you summed it up a well I mean I think we've done.
But in it and in that we're participating in the right markets right now but.
Thank you know a lot well depend on the virus situation and what does happen with the overall economy as we.
Good start moving it had multiple months.
Oh I wouldn't characterize your visibility.
It's point every lobbies and put it told schools.
Q2 looks like but you know how.
It is based on.
Today's second house, you know, how one sort visit at this point, which sort of qualitative commentary and then kind of how you're seeing things or at least as we sit today.
Oh, one of the keys that benefit so certainly this year is.
That large.
I'm going to support for can you talk a little because I don't think is going to get booked in Q TV.
So that tells you definitely helps the second half.
You too.
Oh, Yeah, generally just said the Hyatt incident going to companies that they need us into the fight. She said it was maybe I'll be on <unk> people queued up bulk did you ever despite the wider so.
Correct.
Because of difficult you can see.
Pretty good.
So this isn't D is obviously for Q2 is very good the backlog.
You can do you have something to think due to give you need to go into medical students will get to put your long ago.
But certainly the widest situation that you just go to be.
If you take it goes to school kids Grey card.
Okay. That's helpful.
About the competitive landscape any notable developments you know given all these helper enclaves fair there it's been on a global wallboard and Youre obviously.
I've been a central business or not so that's why your competitors are booked anybody copel changes.
So, let's just do the two key 80 hospitals have autos.
Well it's websites.
He has got bigger, though so because of the banking positions. We have so did the.
You don't give me what do you about Oh go because I was getting at all.
It depends on the shops ended investments and they'll be so starts so good like that business.
Oh, and because even people because of a bit of applications. So so.
We could do not stupid.
Well they want it so it's going to be have completed the studio more particularly when it comes to the Eli I can't be.
It doesn't go through their dogs.
He wouldn't be geography.
Could you give me some don't because all saw though solid performance.
The beach quantity, because it's a modest.
The speed accuracy. So there are people.
Chicken factors that are able to see keeping shoes.
No.
Because.
As we are getting older. Because these are the ones, but could you consider going into two New York because she is changing so walk ins to be started can be lumpy because it seems like companies could be if at all as you go forward looking at lunch package, because he can give sort of changing to completely I can't think oh involves getting launching so gibson.
Type stuff come through those who are using different can sense can be technologies, but again.
The gives us a huge advantage because if you didn't occupancy.
Other uses on it because you get technology.
Although munis and people get computing to syndicate without competitions changing it hasn't gone you would only be making applications.
If it and Scottish it.
Yeah.
Oh pardon me that either specific to highlight.
Whether their competitors that got or in a sense, so chris there or whether they have their own supply disruptions or some sort of sense, where it doesn't sound like youre seeing is giving yourself to be able to show business out I'm. All set allows you to texture.
Oh, good competitors Art school here.
Good day, everyone comes at a modest is easy we're getting all that you because if it's either like you to see tend to see.
Yep, Yep, Yep wouldn't arguments and be a because you need to be in shoes because.
And I'll be applying what they seem to be the city because at that I'd. Once that gets you really do you feel pretty good though do you bought it allows us to.
That's good that's for sure.
What do the Compugens on larger and more established companies.
Because we do you get margin.
So she can give sense when it comes from customers decision.
Okay.
That makes us last one from me Oh, maybe this one [laughter] hosts margins looking back at 27.
And first topic to do on broadband pretty consistently above 45% what would it take to get to those levels I mean, how boxes volume dependent burst are exposed or something else.
Oh well good question I mean, I think you know all all those things matter. So you know as we've said our semiconductor sensors those products out with all the 70% girls margins. So.
You know those margins are better than our AR or even our MRF space products and some of our other products. Just you know mainly due to the hard work content and so some mix matters I mean volume I think certainly would help I mean, there as you know we are no heavily capitally capital intensive in a manufacturer.
Operation, but there are.
Yes, that's fixed costs there so to the extent, we can spread them out.
That that would help.
And bad I think you know to the extent, we can continue to migrate to.
Some of these higher end applications that that will help as well. So I think it's it's all of those things.
Matter.
No that's.
No particular like for that we need memory modules systems old products gets because of the hardware content.
The girls bargains they are doing.
Lower Gilbert Eric Hi yard sale.
And the high gross margin contribution, but the percentage themselves tend to be lower so I think I think mix mix, Oh God organs, I play a part and us.
I don't know would you add anything settled.
Well, it's a good good somebody.
Okay. That's it for me to keep up the good work. Thanks.
Exactly.
Moving on we have worn hersman with I investment.
Hi, how are you congratulations on the Congress.
Oh, Thank you feel speedy with us.
Sure So quickly and just in terms of some of the end applications that we should be looking for.
On the likelihood side, which will drive demand for you what it fills and applications when they want to follow up question.
Kim till the end applications to doing Florida my commitment to pick on that you are knocked off so Pcs and smart phones and digital devices.
Oh, the good watch going to be license that's too. So it is the consumer market, which is the end markets. That's likely to do is getting scheme books locally.
And.
What's important though for you.
Airtime in such a sub ramp up on the Backlighting for example can drive and what the multiple years older speed.
And the products a near term that drive orders.
So to me, but we just talk about like communities. These candidates for the back like applications as I mentioned.
Back like 40 books back like for literally devices those kinds of Florida. So you look at the kids will devote specific customer being sort of which yes. I mean, it's seven because if you go Dominican sea water on the launch could you go to diplomats companies, who are planning on because it seems like who didn't do boost back like.
It's pretty easy to find Donald Trump extending the books.
But there's a.
Largely because of the company said housekeeping.
No that's ecosystem negative.
So to me because it depends if it sounds like another deal was a conventional didnt b or C D or I.
That can be higher to follow that could look like.
All of the laws on the started to get maximum battery life and it's actually like because begins to be a big issue that it's a laptop or it's a smartphone rather watch.
Excluding the this helps but even go back to make significant because a lot of is actually makes is going to study by the back like itself. So that is though driving for some time I couldnt be scheme of things, though so we feel good about.
Well I couldn't even getting skewed up but it's going to me that comics companies about you propose issue.
We don't see any reason why they will continue to execute those rapidly.
And that because that scale up kind of be like and Oh more of a linear fashion or more like you know people than testing because they think small quantities.
Now.
Production.
Selling point everybody gets the borders me yeah, they want to fulfill all this quarter.
Hi, good whatever it was a couple away last year and it's obviously a nice for chronic that's really not doing anything its commercial volume for the other product candidates actually incredible but.
<unk>, how do you see that type of ramp equivalent than a lot of announced off the presses. He said and I think that they go into your equipment at some point and lumps water quality unless you're telling me.
Right now.
During the first leg of the journey I'm not sure.
No. So don't even go no go there's already but nothing to be kinda give.
<unk> is all they stood.
Skeet Upcycle Hugh.
A big chunk of the display industry I see doesn't go do is likely to be she's won't get vehicles will cast.
Huge number will slow I couldnt, even like you did it though certainly a lot awful.
Peter you like they've just inside Sq thought it either so we didn't see video, leaving the skill set so I wouldn't use it would be not holding people back at this point Gibson only be yeah. The Cmos are.
No the technology flows that they would have to start with the consumer acceptance.
I think it wasn't here and so you have to be showed a few on some calls so going up somewhat distorted soon after the consumer market.
And.
Yeah, that's you know that they.
I don't want them all the called the fuel.
So it's hard to know exactly that stuff happens.
Because you have nice people could either be.
And what's going on extended because nobody can sort of do you expect significant.
Two years.
If you think there any significant difference I mean, obviously it depends on the panel for one base.
Can't handle five theoretically.
Kinda so again, it's not true in real life. It looks like I guess, my asking I bought sounds contrasting what they like OLED TV versus a laptop <unk>.
What does that mean in terms of.
The volume of production test how's that filtered down to you.
One question I guess, my memory and sorry.
So or the major into sort of like knows the full certification I couldn't be is going back, though it's back like kind of applications, which I think its people who can take it actually to sleep. So.
No.
So could you give electronics companies like Samsung as shown in don't see a show up here this year last year and showing them so as though.
I couldn't be sterilisations, those kinds of things, but what was on.
Oh, I'm sort of true getting that leads to at this point.
Because it's so hard to make up that you have displayed in the <unk> died.
Competed established apologies I going to be albeit at this point.
To the backlog up because you're going to really be easy people ask it was like now it is significant see yourself back to life.
And that's it that's sort of school so well.
But as you have got nothing to off the coast or was he says a lot going to school.
We are not affect your goes all the actual I couldn't be fun of itself. So they are buying <unk> strong suit because the pickup.
Because these machines basically a 50 equipment.
And if you did you guys are moving stuff should be more sometimes its glass something six plastic or something like that.
And Oh baby. So that's how you just can't duty leading Smartside Hussein.
It's fun to six I think you got 70 centimeter Oh. So he said this but those manufacturers who can find to your question.
Yeah, that's good [laughter] similar question on.
Every side the trends in memory pick a stack memory. If you go into just the drop more detail for love It and we continue to really drive and make a big different thing or three d. product, which again.
Thanks early orders on and have two out of three thinking at this point.
So nobody.
And we didn't have any market, even though she mitch chips. So this is.
Chipset on they are.
Putting them on the Oh or do you I didn't see people more you that they'd be more can do.
Maybe if you do that you can check and then if you walk if you will find.
Keep inspection check long <unk> that you just before I could you give everybody a central good customer should you know.
What do you want you would be losses. So you said this boat you that bad.
I'll take the nobody so maybe do so whatever but.
Because of such you're looking for everybody inspection system.
Then my goal is kind of defects immediately do.
Stacked, but it's a good part D fits.
Transistor level, that's that's where they use you'd be north American snuff technology was.
They'll be coming into the final inspection of the finished.
Nine argued that the shipping today customer.
Yes, so again just.
Okay, what in particular driving to the man product right now for Q1, good thing anyway.
So good question, Phil and what do you do.
Good job, but has been.
They do you still think of we'd be happy using your good or bad news pitches to find that structure, although that then.
Okay Bart.
Nobody want even stitching system. Some one off ought to go to give up that they're going to school water business I do not happy with the system because it looks like Paul.
These markets with one of the customers bulk for sickle and the other legal it otherwise it because you just because you need to bleed and that's why we are getting traction that go next one molecule that people to toward along.
Oh, so essentially you ought to be lifting.
But he would inspections institution or will be technology that they have deployed simply because you did a door for Oh and Bulldog just still cost savings whatever challenges visit having is for this holiday. When you guys. Thank everybody chips and the body will take that bleeding.
Smallest of a de France or.
And can be PCT or thinking about there being because that <unk> <unk> <unk>, who already speaking.
Are you check.
[laughter] due to the Chick easy so it's a little more does Jeremy will.
Let me be Donald you can imagine.
Some of the chips that you would get this lucrative physically who's going to walk ins to.
And she the Liberal all your Chick Fil people by the Middle walk is just watching it.
Just a some ships have been display and social passive components have been displaced or they were good easily films because of those issues before they started he didn't do it makes like dogs and that's giving you all caught it makes the centers.
And they lose all customers to basically.
Since that deal should be.
And doubled that you can see once I know maybe cost or the older systems again, Bob I'm trying to getting high flows called him syndicate. The stuff. So it's a good otherwise what OXXO stores by using linac system.
Hey, Thanks, a lot cigarettes.
Okay.
Moving on from Titan capital, we have a bill definitely.
Thank you are likely to ask a longer term question. If I if I mean, how are your products sold and.
I recognize that you're not any not an email and fast or cold, calling them and a week later you have a sale.
So what I'm trying to get out is quickly with a walk down and the inability to travel.
To what degree.
Or at what point does that interfere with the sales cycle.
I recognize it's not a Q2 phenomenon I don't even relative to 2021 phenomenon, but we can talk through that please.
Sure. So fundamentally we oh still football clubs equal to lipson bigger covenant distribute does set out to Luca cipiccia. So we have it looks to be could come from long term for about 85 dipping eclipse and distribute goes.
Correct.
So there could be sort of this all our products in different regions.
So odd artificially how did it seemed stuff.
The thought even a little bit food stuff is to manage those are keeping their trips and distributors to boost cookies are the ones. We have we get traction we have looked at water distribute a lot of sandeep on people to both the Google stimulus. So that's the most of these actions have that's like distribute and.
She was most beating want.
Yes, it will still building for can jump in if is devoted to be the installed in support that's going to king.
Violence, and lack of Guy will is impacting well productivity I mean.
In some cases struggling that ought to just get all the people who missed.
Yes.
Oh, that's just going to do so it's tends to be most telephone assistance.
Are you told me to neighborhood.
So we don't need because it could be <unk> assisted good luck.
You can walk it so people, who cushing and demonstrate the whole system.
Given that it's something that's connectivity.
Okay.
So we didn't do a lot of peaks subordinate to sneak huh.
So it is it gives a productivity.
But it's going to look there should be up.
Are you keeping it gets distribute doesn't open source to do the seats.
I didn't seem to be didn't but that doesn't watch.
Because of economic.
Your fuel diversity.
I think I think that's a good summary.
And so to make sure I think he like to make sure that I am clear.
So in China or.
Other Asian countries.
As long as there's not a complete lock down.
Your reps and distributors are in in some cases able to physically visit.
The customer or person perspective customer and it really I'm thinking more about the perspective customer because gifting customer in theory would have some.
Some better idea like what you're doing.
So what we're experiencing in the U.S. is less relevant and what's happening in individual country, where the installation ultimately would take place is that the correctly to be thinking about it.
And your Libya committed existing customers going on or you could be of its own set sort or sister you could you just did check with your cycle and Oh bid on July the dog systems that.
Couple of Florida, we don't need because it could be meet them.
And then Oh.
Oh, we do duties in computing on softer Pete Doherty couldn't against that.
We do already.
Chip with them and getting them, what the new feature soldering song, but it's not as critical Oh, you're going to give you like it if it's doubled brands continue.
For a long time prospective customers.
Shopping would be difficult, it's something that can.
The harder to do something you could start to be dog, we do you think books or different chicken assistance.
Then.
So, but hopefully I did want to issue.
This is the arm, we met or she limited our government restrictions have been she outflows compute the country the business couldn't be like the you are pretty much Baltimore like knowledge I know people can walk on the block.
I was just one offs auditing viewpoints Tonight.
About the lightest some mortgage must centric and B C. B you had on looks like it looks like.
Okay, and then she ever you talked a lot of people didn't have that didnt. The movie joking fees at the audit you can no longer because people are essential.
Great. Thank you for the perspective.
Thanks, Mike.
I will come from their fleet with ACMI analytics.
Nice quarter guys.
Pens.
So.
<unk>.
On the third memory customer.
Honestly, you're talking with them right.
Correct.
When you take we might see that regulations I don't remember kill number three or when you are making that if he could be.
Okay.
We love your opinion, because that's something that we accept.
Oh, it makes a student sometime in this calendar year.
But again it depends on did get that recycle them. So like mobility customers already businessmen board Oh, yeah, more backing off because of the why the situation. So good opportunistic.
Even if it becomes because some of this year.
And then on the OEM side, Oh, I got plucky, Jeff numerous times about that.
How how's that starting out the year they come back.
Hi this.
Sometimes.
Doesn't go do it because he wouldn't have let's come back as much like a lot of supposed to come back strong as you can see film on numbers about as we get business is growing nicely.
Our biggest giftable some haven't come back strong, but then he older technologies years, though.
Right.
Oh I got a micro many out fairly de I guess that the growth rate is gonna be 80 per cent per year.
The Mackenzie I.
A couple of the outfits.
I talked about 80 per cent per year until 25, so that's that's quite compound growth.
I got the impression.
That's really sort of a race to the starting line or did they get the lines I guess throughout Asia in there.
Is that sort of say.
Well, there's a lot of activities going on but I don't you like.
Starboard doesn't make sure you of course gifts.
Cycle, So we expect where people lines to be strong by the end of the student or to be applications wouldn't be ski slopes and so it's.
Publications.
During twentytwenty. So this is still video at least of going on.
Now nobody can increase I don't they go quickly, but nobody can predict.
If you look at the first quarter or <unk> first quarter last quarter of collecting Safa K L. I say.
They.
If I, rather like Youre expecting shipments Oh micro many L.A.D. I guess pick and place up for 30 to 70 million.
Dollarss Uh huh.
That's.
Yes, we have seemed and oh, what he's calling that you mentioned that yes.
Here's my question.
<unk>.
Well first of all they have an exclusive with real Hany you guys don't <unk>.
Is that correct.
But it's going to give them the excuse the preferred exports you fight Florida.
Custom what has a choice to guy I'll go to utilize systems.
Now exclusive indexing.
Oh, it's probably a good thing because whoever wins out I guess, if there's enough.
He's going to lead right now over our Samsung or whoever the competition.
Because that again I didn't hear your commission.
Is it your feeling that role he needs in the lead edge, you know are lumpy the fast to market or.
The other there on the best position right now compared to probably Samsung and.
Apples trying to get in there that they haven't been able to do that but is that you're feeling well he's DRD [noise].
It was really the no you development.
This plan is to be go manufactured hurting themselves. There is no royalties right. It would be yeah. They did runs at all you could argue basis. So do you have seen tactical everything always package if city the package.
Good manufacturers, who would like sort of is the launch can you believe that comes companies who he had been resolved. The replay you get go yeah, because I'm, a little consumer electronics companies, but clearly we don't have that much visibility to be honest sort of like.
I understand so it's okay are you guys are just [noise].
That's the wine to go out it's like any technology I guess, it'll just keep building there's other things back to click on it's off a third if their modeling 30 to 70 million.
The second half a year.
You know how much pick and place machines, one two or three there on these lines that there are installing.
Oh, no, but I don't feel comfortable that we'd be pretty promotional but as I believe that he's going to the in Chile.
We're eating and they can so folks have you ever would feed for homing because these machines.
For the line and how many of you don't get on fixing that shouldn't machines Blue line.
But it wouldn't be didn't data can be able to be seen took customers adopting to speaking the line a different points. So that somebody's going to change when you pick and place for line at home and inspection system spotlight based on that she took us to wouldn't hold together with the confusion.
So it would be sort of impossible for at Investor like myself bought to figure that out.
Based on the information that's public because scale I see if there.
Obviously instead of a one per line. That's that's the best thing in the World right for you guys. If it's three per line, it's still going for you, but not as great as I read that right. So.
Many of the do it lessons that I'd be pencil, let me put in line up and I believe the.
He runs you quantified Oh me all the good is where people numbers like no.
So if you don't see numbers on the numbers become $50 to predict but this is a signal.
It does seem so you don't have that's good of feeding fought exactly how many lines will be scared of the thinking how will this year.
And then you know you brought up quite a number of times.
No what we look at the chip space out there your unique in the idea that you'll high end. So that's probably why you haven't been as affected most people have pulled their guidance I, even some of the big guys.
You know about a month or dollars. This virus was.
Picking up.
But I guess you guys are so uniquely positioned with a lot of your part of that upside, it's really technology as opposed to capacity.
Sure Good degree I guess.
How much in the cycles is capacity driven or new technology would get you know do you have that.
That's coming up for you guys.
[laughter] one for me to ballpark is that can be I mean V I chips.
Third or go to your gone on here. If you can try autohomes. He comes from Q2 guidance comes primarily each though our interactions with customers and backlog that you have on hand, right. That's what gives us confidence to be Q2 guidance. At this time, we haven't given Q2 young people that I think he's going to focus cities.
Our custom was the highest chip manufacturers will give you that they seem to be fairly optimistic that particular do you can see who will be guide.
Oh for the whole you don't look as you go to send Gould and be more exactly what's going on with the why doesn't it became so long as pretty instead be able to and guidance on.
The T 15% go so which is pretty well I would think five they onsite.
Right got just.
With data centers cloud five kidney and of course micro many elie date.
That's.
Yes, that's good demand I guess one question I had is are you Guy is I know you guys are probably affected down that's kind of food chain. When it comes to automotive, which is really on her family [noise].
And I want to tough situation does that maybe take a little bit off your revenues for the first quarter kill the reason you know it care you can't really quite that.
No.
I mean have somewhat because phillips.
That have.
That have bought Sq systems.
He has hurt some slow down and some of them.
But nothing I mean, not exposure to doug's semiconductor side.
The memory customer and as far as far bigger gun art exposure would be this together the customer set this though it shouldn't really be de facto quite as you see that in some parts of our business.
No the upside gifts and email school off sick and compensate for that if you want to add something.
Yeah, I agree with that Mike would would add I mean, you know we did have you know watching one auto customer and Ah in Q1, who did buy some messaging system. So.
The you know at least in that particular case that instance, feel I would say we know we haven't seen an impact yet you know, we'll see down the line.
Okay. So if we look out.
By the first deal when you say or do you have any idea how many lines are on the micro.
No.
Anyway to tell that I mean, how many lines are getting laid out throughout Asia.
Well I mean do you.
Because it would give us good visibility for the next door to peak months and be no movement shouldn't be that thing theater could give us accumulated ideal for getting.
And all of the books on increasing your about all the time.
So it would have gone through doesn't like because if you could be the group.
I do you find like what you like she has done that.
<unk> doing walking through at a coverage assuming the either like probably be Felicia I just want to get five exactly.
Excuse me was another study.
You know enough [noise].
Well actually do if somebody wants to get great quarter. He does.
Excellent. Thanks.
Yep.
All right well move on to the next question, we have from Craig for like with first Allied.
My questions going to answer it I'm good.
Thanks, Craig.
Thank you.
Right and that case, we actually have no further questions remaining in the Q.
Dr Kulkarni I'd like to sleep.
Just want to closing remarks, Sir.
Okay. Thanks, we'll take long to get into some cushion. So they deployed with go up there can do a good Gulf queue. Thank you bye bye.
Once again, ladies and gentlemen that concludes our conference today. Thanks for joining US you may now disconnect.
And I [noise].
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