Q1 2021 Ichor Holdings Ltd Earnings Call
Good day, ladies and gentlemen, and welcome to <unk> first quarter 2021 earnings conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time should anyone require operator assistance during the conference. Please press <unk>.
<unk> zero on your telephone keypad.
As a reminder of this call is being recorded.
I would now like to introduce your host for today's conference Claire Mcadams Investor Relations for Ichor. Please go ahead.
Thank you operator, good afternoon, and thank you for joining today's first quarter 2021 conference call.
As you read our earnings press release, and as you listen to this conference call. Please recognize that both contain forward looking statements within the meaning of the federal Securities laws. These forward looking statements are subject to a number of risks and uncertainties many of which are beyond our control and which could cause actual results to differ materially from such.
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These risks and uncertainties include those spelled out in our earnings press release. Those described in our annual report on form 10-K for fiscal year 2020, and those described in subsequent filings with the SEC you should consider all forward looking statements in light of those and other risks and uncertainties.
Additionally, we will be providing certain non-GAAP financial measures. During this conference call our earnings press release, and the financial supplement posted to our IR website. Each provide a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial measures on the.
The call with me today are Jeff Anderson, our CEO and Larry Sparks, our CFO, Jeff will begin with an update on our business and a review of our results and outlook and then Larry will provide additional details of our first quarter results in the second quarter guidance. After the prepared remarks to open the line for questions I'll now.
Turn over the call the Jeff Andreessen Jess.
Thank you Claire and welcome to our Q1 earnings call and I Hope that all of you and your families are staying healthy and safe.
Today, we reported a record revenue quarter for ichor, another strong quarter of financial results with Q1 revenues and earnings both at the high end of guidance.
Revenues of $265 million were up 8% from Q4 marked our eighth straight quarter of sequential revenue growth.
Gross margin increased 30 basis points operating margin increased 20 basis points and net income grew by 10% compared to Q4.
Our strong operational leverage of our business model.
And continued improvements in gross margin are evident in our year over year EPS growth of 46 per cent.
Compared to the same period a year ago, we have increased net income by $10 million on revenue on a revenue increase of $45 million.
The net flow through to earnings of 22%.
We also had another strong cash flow quarter with free cash flow of $20 million.
So far in 2021, the underlying demand for wafer fab equipment for WMC has continued to strengthen over.
Over the past several weeks the major players in foundry and logic have provided multiyear visibility into their heightened levels of investments, which will be put in place to support the unprecedented levels of demand for semiconductors.
At the same at the same time healthy market conditions in memory sector have led to further improvements in memory capital investments as we progress through the year.
As a result expectations of the Wi Fi growth in 2020. One have increased steadily center of last earnings call from about 15% in early February of two the current expectations of growth in the 25% to 30% range.
The strengthening demand environment to date in 2021 is evident in our Q1 results and Q2 guidance.
Without Texan demand witnessed among each of our key customers and among each of our business units.
Our Q2 revenue guidance is a range of $270 million to $300 million or another 8% sequential revenue growth at the midpoint.
Our visibility remains very good extending of about six months or so which along with the outlook provided by our customers provides us with confidence that the second half of 2021 will be stronger than the first half.
With widespread expectations of another growth year for WMC in 'twenty 'twenty, two we appear to be in the second year of the multiyear growth cycle propelled by the convergence of multiple technology drivers such as five G Iot AI and autonomous vehicles as well as secular.
Growth related to the progression of work from home and high performance computing.
Semiconductor industry revenues are breaking out from the historical share of the global electronics market for the first time in 15 years.
More recently domestic semiconductor supply self sufficiency is adding another layer of investment to the secular drivers.
Together all of these drivers are resulting in increased capital intensity for the semiconductor industry and higher levels of investment in fab technology and capacity.
In other words being in the central supplier to the semiconductor wafer fab equipment market and having a nearly 100% focus on the sometimes cyclical but strong growth industry is a great place to be.
With that as the backdrop of our overall outlook for industry growth I'll now turn to our key strategies to continue to outperform industry growth and in turn deliver strong operating leverage and cash flows.
I'll begin with our strategic focus on some of the strongest markets within Wi Fi the three key markets for our products, our etch deposition and <unk> lithography, all of which are outpacing overall industry growth due to multiple technology drivers.
And then the industry is investing in the technology that will take them from 96 layers to of 128 layers and beyond that to 256 layer devices at each step in the process Theres more etch and deposition you may have heard on our recent earnings call that it's mostly etch and deposition equipment.
It's required to continue to build these taller stacks.
Similarly, with DRAM as we go from one way to the Onesie node and then to one alpha and one beta there is more of the need for etch and deposition and we are the leading provider of fluid delivery subsystems into these markets.
And logic of transitions to five nanometers, and three nanometers require more complex geometries and more precise control of fluid delivery.
There has also been an increase in the number of gas is used for technology advancements in both logic as well as DRAM over the past several years and.
In each case as these geometries become more complex. This drives the need for faster etch rates better materials selectivity of Mark precise control of the processes. The key takeaway as it relates to ichor is that these advanced technology nodes are requiring more etch and deposition intensity and especially in the case of logic and.
DRAM more fluid delivery content per system.
Our other key market as <unk> lithography, which is growing at rates well exceeding overall industry growth annual system shipments are expected to continue to increase and strong double digit growth rates for the foreseeable future and as such we are witnessing steady increases in our E of the gas delivery sales.
On rate each year.
And total each of these key technology transitions across all three device types is driving increased opportunity for all three of our key markets.
This is a key driver for our revenue growth outperforming the overall industry and our increased share of W. P from.
0.9% five years ago to one 5% in 2020 or more than a 70% increase in our share of industry spend.
Our increasing share of Wf piece is also due to our continued market share gains and the complementary and accretive acquisition that further enabled the expansion of our product offerings and global customer footprint.
Before I update you on the progress we're making in our next generation gas panel product of all the development program and our other product and regional growth initiatives I'd like to update you on our capacity plans.
As I noted earlier, we are in the second year of the multiyear growth cycle with leading industry Oems and analysts forecasting another year of growth in 2022.
Given this outlook and to support the success in our new product initiatives, we are already or are actively adding capacity in our gas panel of integration machining and weldment businesses.
On our last call, we highlighted that our capex expenditures this year would be above our typical range of 1% to two per cent of revenues and be in the range of 2% to 3% for 2021.
These investments in capacity will enable ichor to achieve quarterly revenue run rates in excess of $400 million.
Now I'll update you on the progress of the team has made on our strategy to leverage our engineering capabilities and IP portfolio to develop new products that will result in longer term expansion of our share of our served markets as well as drive the operating model towards increased levels of profitability.
We have made very good progress over the last quarter with our proprietary next generation cash delivery solution and will ship our first beta unit in late May.
In the third quarter, we expect to ship of beta unit liquid delivery module to a north American customer we expect the qualification period to extend through this year with first revenue is occurring in 2022.
Additionally, we're in the final stages of completing two precision machining part qualifications in the second quarter and expect to see first revenues in the third quarter. These qualifications will increase both our proprietary content on a gas panel and will be margin accretive.
As I noted earlier, we are in the final stages of increasing capacity in both of our Minnesota and Mexico machining operations to support the revenue associated with these two qualifications.
And our geographic expansion initiatives, we continue to have active dialogue with several of the major Oems in Asia.
But the COVID-19 related impacts continue to limit travel and customer visits resulting in the delay in the qualification of our liquid delivery systems that are creating customer, but this is still a very large opportunity for us and as we move past the limitations, we will be putting on a full court press.
In summary, the team did a phenomenal job ramping of business. Once again in Q1 to address the historic levels of demand from our customers and delivered a record revenue quarter for ichor.
Our second quarter revenue guidance indicates our expectation for continued sequential growth of above Q1 and year over year growth of 22% to 35% versus Q2 of last year at the midpoint of Q2 guidance. The first half 'twenty 'twenty. One is expected to grow 24% from the first half of 'twenty.
'twenty and be up another 16% from the very strong second half of 2020.
We are also driving continued incremental improvements in gross margin and operating margin as we are steadfastly focused on making meaningful progress towards our target model and the continued very healthy business environment.
Which brings us to larry's discussion of our financial performance and further details on our outlook Larry.
Thanks, Jeff first I would like to remind you that the P&L metrics discussed today are non-GAAP measures unless I identify the measure of us GAAP base the.
These measures exclude the impact of share based compensation expense amortization of acquired intangible assets non recurring charges and discrete tax items and adjustments.
There was a very helpful schedule summarizing our GAAP and non-GAAP financial results, including the individual line items for non-GAAP operating expenses, such as R&D and SG&A in the investors section of our website for reference during this conference call.
First quarter revenues were a record $265 million up 8% from Q4 and up 20% from Q1 of 2020.
Business conditions continued to strengthen during the quarter and our operations teams did an excellent job responding to strong customer demand and a challenging operating environment.
As a result, we came in at the high end of revenue guidance achieved a new record revenue quarter and delivered our eighth straight quarter of sequential revenue growth.
We also achieved sequential increases in gross margin operating margin and net income gross margin for the quarter. It came in better than forecasted at 16, 1% up 30 basis points from Q4, and up 230 basis points from Q1 of 2020.
COVID-19 related costs continue to impact gross margin by about 50 basis points.
COVID-19 impacts on gross margin are mostly related to higher costs, ensuring the health and safety of our global workforce and higher freight cost. While these impacts are expected to persist for the foreseeable future. We continue to drive improvements to our gross margins and expect further incremental increases.
As we progressed through 2021.
Our key strategies to drive gross margin higher or through incremental cost reduction programs growing our share within our higher margin components businesses and increasing our content of proprietary IP within our products.
Operating expenses came in a bit lower than forecast of $15 5 million, which was an increase of 9% from Q4. The sequential increase in operating expenses were primarily due to seasonal increases in payroll taxes audit and legal costs as well as an increase in R&D project spending.
We expect our quarterly Opex run rate to increase to the $16 million range for the remainder of 2021.
The incremental audit fees and associated costs related to becoming Sox compliant. This year. The additional expenses associated with our new ERP system and the higher level of R&D spending to support new product development programs.
Operating margin of 10, 2% improved 20 basis points over Q4, and 300 basis points over Q1 of 2020. This.
This strong flow through in operating leverage is evident in our 46% earnings per share growth over the year ago period of 20% revenue growth even after accounting for the additional shares from our December stock offering.
Interest expense for the quarter the loss of declined below the $2 million given the pay down of $30 million of our revolving credit facility our.
Our tax rate was 13% and our planning rate over the next couple of years continues to be in the range of 11% to 13% with 2021 expected to be at the high end of that range.
With revenues near the high end of guidance and gross margin and operating expenses favorable to forecast earnings of <unk> 76 per share were at the high end of the range shares outstanding of $28 7 million were above forecast given the dilutive impact of a higher average stock price in the quarter.
Now I will turn to the balance sheet.
We ended the quarter with cash of $243 million, a decrease of $10 million from last quarter, we generated $20 million in free cash flow and used $30 million to pay down our revolver total debt declined to $170 million.
Our strong cash flows in Q1 were helped by continued favorable day sales outstanding of 37 days as well as higher inventory turns of six four compared to $6. One last quarter in total our net cash position of $73 million increased by another 20.
$2 million in Q1, and compared to Q1 of 'twenty 'twenty, we have increased our net cash position by $215 million through an equity issuance strong free cash flows and debt reduction.
We expect continued free cash flow generation and a continued healthy demand environment in 2021 as Jeff mentioned, we are stepping up the capacity investments this year to support the strong demand forecast for the next couple of years and I expect capex to be in the range of 2% to 3% of revenues for 2021.
Now I will turn to our second quarter guidance with revenue guidance in the range of $270 million to $300 million our.
Our earnings guidance of 77 to 93 cents per share reflects an expected gross margin increase of around 20 basis points and operating expenses of approximately $16 million. This equates to an expected increase in operating margin in Q2 for the seventh straight quarter interest expense will be.
Down by about $200000, given the pay down on the revolver.
Our tax rate is expected to again be approximately 13% and our fully diluted share count is expected to be $29 3 million.
Operator, we are ready to take questions. Please open the line.
Okay.
At this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad of confirmation tone will indicate your line is from the question queue. You May Press Star two if you would like to remove your question from the queue.
For those using speaker equipment, it may be necessary to pick up your handset before pressing the star of keys, one moment, please while they pull for questions.
Yes.
The first question is from Quinn Bolton from Needham <unk> Company. Please go ahead.
Hey, Jeff and Laura Congratulations on the on the nice results and outlook. Jeff you spent most of your script talking about your your efforts to grow faster than the WMC and so I guess my question is.
If you think Wi Fi is 25% to 30% is there any reason why you wouldn't be able to grow faster than that this year, you talked about some need to add capacity, but is there anything that would restraint or constrain your growth this year.
No I our capacity additions.
A very large portion of those are going to be in place by mid year.
We started them in late Q4.
So there won't be any issues with capacity, obviously, we've seen wf the expectations continue to rise and.
And so it's difficult to give you an exact range of our outperformance, but you know.
Given how levered, we are to some of the etch.
That's the deposition customers, we have plus of UV. Those I think will certainly be growing higher than the overall industry average of that would tell you that will grow above it plus we'll we'll layer on another amount of the meaningful market share gains. So there's nothing that would.
Lead me to believe that we can once again outperform industry growth.
Great.
She was just you had mentioned a couple of those share gain opportunities are two qualifications for machining in Q2 that the starts to contribute to revenue in Q3 is there any way you could size what that opportunity is.
Well not not specifically and obviously for competitive reasons, but there are significant I would say.
Last year, we did a pretty good job of adding another.
A fairly large amount of market share gains were targeting of very similar amount, obviously as the market gets bigger and bigger if those stay about the same size of kind of a smaller percentage of the total but there's still meaningful what I would tell you is that you know we've already come out of the gate pretty quickly.
Some of the gains that we've had it had been kind of on the <unk>.
Integration of assembly side of our business to support some of the growth you're seeing in some of the legacy business out there in the marketplace and then these other ones will kick in in the second half as well and then there is theres just the number of other ones that are of smaller nature, but we're very very optimistic about the closing these things off and seeing.
This impact.
And the second in the second half and.
Again, you know our capacity I would say entering the year was probably in the 300 range low three hundreds and now we're going to be pushing that up to something over $400 million. So we'll have plenty of capacity to support this year's growth in the next several years growth in my opinion.
Great. Thank you I'll get back in the queue.
<unk>.
Yeah.
The next question is from Tom <unk> of D. A Davidson. Please go ahead.
Yes. Good afternoon, maybe just a quick follow up on capacity Yeah, Jeff when you look at COVID-19 and how it's restricted some of the employees being in the same place of the same time.
Any of that you look at the new facilities.
The need to hire of kind of specialty welders and how does that playing out right. Now is the are there difficulties in Europe.
We can certain capacities of certain head count.
The timing of matter.
It's.
It's always the challenge that continue to hire but we've done a really good job.
Have a good team and a good network for those.
Those particular areas.
We're doing a pretty good job in the COVID-19 environment and I think.
You know whats the some of the most advanced welders I think we've done a pretty good job of hiring some of those and others, where we're basically taking a little bit different approach and doing training and things like that so that our hiring will not impede us I don't believe so.
Obviously in.
In Malaysia.
We've done a really good job we've added a lot of capacity there.
The spacing is obviously further apart it's the bigger operation and some of the U S sites that we have today that are a little compressed, but you know every quarter, they find a way to get more and more out of them.
On a productivity basis so.
Pretty pretty pleased with our operational performance.
Okay and do you think some of the changes you've made from of spacing point of view of Oregon.
We're gonna be maintained the post COVID-19.
That's a good question Tom that.
I would I would hope that we can go back to normality at some particular point in time, we obviously monitor.
The progress that each of our sites and the communities around them are making with regard to total vaccinations and so I think we will go back to a normal stage of its very difficult to say is that in September October of January but once the restrictions are relaxed. We'll go back to the way we did business prior.
Okay, Great and then just follow up here with the well of a broad based question you know we're in the middle of what appears to be just the super cycle for the foundries, but where do you see the cycle for both the end of the DRAM parts of your business.
Well I think that non.
Obviously, we went through a long period of time, where the NAND business transition to vertical from planar. So that's that's completely done. So now it's just going to grow with debt costs demand I think as you look at the memory demand. It's still most people are forecasting somewhere around 30% bit growth debt has to be served by something.
DRAM our outlook for debt, we see for DRAM is probably a little higher percentage of growth the NAND, but both of them very sizeable growth year over year. So we're seeing strength in memory as well as in foundry and logic.
And then I guess lastly, any.
All of them kind of Crystal ball look into the memory markets into next year people talking about foundry be the extendable with the 22 plus would be odd, but what do you see on the memory front.
Yeah, I you know I I think of when you look at memory and again, you said crystal ball so I.
I can't tell you with any precision, but I still think there's some wafer starts or wafer ads going on this year largely of lot of technology transitions of those will continue and I think you'll see demand.
And in both NAND and DRAM continue to strength and we we see we saw a very healthy three D NAND environment.
In the first half obviously through our Korean operations. So it was pretty strong in Q1, and it's staying strong in Q2.
Great. Thanks, Jeff.
Net.
The next question is from Patrick Ho from Stifel. Please go ahead.
Well, thank you very much and congrats on the really nice quarter and the outlook.
Maybe first for you I know, it's hard to discuss the.
Exact specifics about your customers, but given your work on the the development of next generation gas delivery of fluid delivery systems.
I guess on the collaborative efforts side of things your customers are coming up with new tools over the next several years as well.
How much of the old work as is in timing with those new true introductions lots of you can I guess catch the inflections that they're trying to catch as well.
Yeah, I would say.
Have to be careful in discussions about timing and things like that but obviously to get a new type of platform of product qualified you definitely have to connect with the.
The transition either of revision of the tool or a new tool. So.
Most of these will be connected to newer tools, but having said that a couple of our engagements are.
You know things, where the tools, we're not we're not looking for a new platform.
Revision instead so.
Yeah.
And maybe as my follow up question from Larry.
Given some of the new capacity gets coming on line in the second half of the year.
And the continued improvements youre going to see them growth Tomorrow, just how are you balancing some of the I guess the cost the cost structure from the standpoint of a lot of times new facility ramps of new capacity ramps.
Tend to have lower margins, just because you have some duplicate costs, you're adding people Wayne how are you balancing back to get the higher gross margin is one of the gross margin growth through the year.
Thanks, Patrick I think the the first thing is for many of these sites of the investments, we're making are very linked to the incremental revenue expectations in the short term. So as we're adding equipment that equipment will be put into service very quickly and start delivering revenue of almost immediately so.
I think in general we look at and we obviously you have to keep capacity.
Just ahead of what the customers need and we're doing that and I think we will.
<unk> the watch when we bring these things on line, but we have a pretty good sense of visibility over the next six months. So I think our ability to match. The the addition of the capacity of the timing of the capacity with the revenue which will then.
Offset any cost increase I think we've got a pretty good sense of visibility of that and can manage through it.
Yeah, and I'd say I'd tell you Patrick I would just add to that that when we add capacity to support some of the machining opportunities. That's our highest gross margin product as you guys know so.
That would still drive.
The incremental accretive margins and then over time, obviously, they will get even better so.
So that helps as well as just the mix of where we're adding the capacity.
Great. Thank you very much.
You bet.
The next question is from Craig Ellis from B Riley Securities. Please go ahead.
Yeah. Thanks for taking the question of guys. Congratulations on the strong execution. So Chuck I wanted to start with just a follow up to some of your prepared remarks on <unk> and second half half on half growth. So real helpful. The the clarification was on what you see in the second half can you provide.
Any color on how large the half on half growth would be or alternatively, whether or not you've got the visibility down to just see if you would have sequential growth in both the third quarter of the fourth quarter of that's in fact, not yet clear.
Yeah, No I I would say is as we look at it I don't want to give the indication that there's a big step function from the front half the back half I do think that it's not unreasonable to think about sequential growth through the end of the year that each quarter will be a little bit larger than the next quarter.
And you know depending on how things shift around.
That can change, but I don't think we'll see a smaller second half I think we have confidence in that the timing and the visibility of we're getting is pretty good I think the.
Communication with our customers and their outlook has improved greatly through this period of pandemic and ramp.
Working very well together so.
I think that you will probably see sequential growth.
But I couldnt make an absolute commitment to that today, but that's what we see.
That's helpful. And then I just wanted to ask a longer term question before I flip over to Larry the longer term question is so it was helpful to see the the.
The example of five year of share gain within dubbed the FTE from <unk>, 9% to one 5%. So if we did that same thing over the next five years in terms of the percent increase we'd be at two five per cent of W. P. But at a time when I think most people would expect about 100 billion or are plus or.
So that would imply two and a half billion in revenue potential of the question is this if the business were to.
To execute to that level of five year growth what would you need from M&A to get there and how is the M&A funnel looking at this point.
Yeah, we definitely would need M&A to get there because when you look at the <unk>.
<unk> nine to $1 five.
Added two or three acquisitions of significance during that period of time as well as continued build out of kind of our organic product clients and gain some share so.
So there will be an M&A component, if we were to do that for sure.
The pipeline I think the pipeline is pretty good.
Right now obviously when you get to these kind of valuation levels. There are people that decide that it's time to to sell of business.
Always hard to get exactly what you want.
They are active I couldnt update you beyond that but.
We're putting a lot of focus are at least myself in the few of my key staff on and looking for opportunities that fit with our longer term strategy of building the higher component of IP.
Products into our I know our business that we have today so.
The.
The other than that I couldnt be more specific Craig.
But it's helped us real helpful. Thanks, Chuck Lorre flipping over to us. So I think on the last call you mentioned the potential per gross margins to rise through the year I think of it was somewhere around 20 basis points, plus or minus but is the expectation still that we can go up through the year or is there anything happening with the capacity that comes on line here.
The wood mute some of the some of the gross margin expansion when we exit the year.
Yes, I think we're still in the range of 20 basis points of quarter. We do have line of sight on some of our cost reduction programs of Union City in Q2 will help us as we're finishing closing that side of it.
And as Jeff mentioned some of the new product wins that we are that we see that will add to the components are.
A higher percentage of components business, which is accretive to our margins.
We do have COVID-19 and we are seeing some of the effects of the freight costs.
Creases that other companies of mentioned.
Thats impacting us as well so SWF fee growth, we do have the.
The mix that we deal with with gas panels and trying to look.
Look at how that grows relative to the component side of the business, but right now we're pretty confident that we can do the 20 basis points pretty much quarter on quarter for the foreseeable future.
That's great and then lastly from me before I hop back in the queue.
Nice job paying down the term loan 30 million of some other debt reduction on top of that the question of says well what should our expectation be in the second calendar quarter end and then any color on further debt reduction for the back half of the year. Thanks, Larry Yeah, I think that maybe I'll I'll take it.
Obviously, we.
We would like to do some accretive M&A. So obviously, we right now our EBITDA multiple is the I don't know around 131.3 comfortable level of debt.
Down quite down quite a bit so.
If accretive M&A doesn't come around we'll revisit it again, if you remember in Q2 of last year.
Most companies were drawn down on revolvers, just as the as you know.
Business continuity in case anything got more difficult than the than it was but.
So we paid that all back.
This quarter and it's rates are down our leverage level is in good shape. So are.
We prefer to continue to just go R&D Capex and net accretive M&A and then.
Yes.
Once we get through that then we'll revisit our debt level.
Makes sense, thanks, Jeff Thanks, Larry.
You bet. Thanks.
The next question is from Krish Shankar of Cowen and company. Please go ahead.
Yeah, Hi, Thanks for taking my question.
All of them for Jeff or Larry first one I'm just trying to figure it out but do you think the cost.
Inventory levels.
The building right now all of it.
Given all the components like the <unk>.
Got it.
All the way from the supply chain debt you can see.
I would tell you that in the gas panel side of the business there is not inventory.
Talking of generally in these types of ramps.
We're kind of running pretty pretty full out so I don't think there's much there we've seen some growth in the.
The level of consignment inventory that we carry on the weldment in consignment or precision machining, but it's not a really big number is as Larry talked about our inventory turns in a rising environment. Sometimes you see those actually go down ours actually went up so.
I don't think that we're being impacted by an inventory build I think we're seeing kind of a natural flow of demand.
Got it that's helpful.
On the on the gas price on the gas the Louise fight.
I understand equally of customers that very little inventory because of the cause.
Oh.
The Roomba right. The Pakistan has been four to six weeks in the past what.
What is the size of the times to the audit some of the levels of Devry group.
You said, what what lead times, we all of our lead time, Florida South of the gun sight goes on.
Yeah, it's four weeks for everything, but the <unk> unit, which is more like five months or something like that in total lead time from order to delivery. So that we ship ahead of our customers, but and our lead time on that is not five.
Months to build it obviously, but it goes in about five months before the revenue tool and I would say about a month that goes in before revenue tools from our process tool customers and our cycle times, probably range from a month's two of couple of weeks.
The final question.
How much was the eight months of laminate.
Thank you for the revenue yes.
Yeah, we don't we don't.
Yeah, Chris we don't provide that on a quarterly basis.
But I wouldn't think it was all I would tell you is it's no drastic change from what you probably can see in our 10-K from last year.
Alright. Thank you. Thank you. Thank you just don't flow.
Yes.
This concludes the question and answer session I would like to turn the call back over to Jeff <unk> for closing remarks.
Thank you for joining us on our call this quarter I'd like to thank our employees suppliers and customers for their support and strong execution of this historic demand environment for the semiconductor industry.
We look forward to updating you again on our next earnings call in early August in the meantime, we hope to see you at one of our virtual Investor conferences. In Q2 included in the annual technology conferences hosted by Cowen Needham and Stifel as well as the CEO summit in June operator that concludes our call.
Thank you the skincare.
Today's conference call you may disconnect your lines at this time, thank you for your participation.
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[music].
Right.
The.
[music].
Okay.
Uh huh.
[music].
Okay.
[music].
Okay.
[music].
Uh huh.
[music].