Q2 2021 Axcelis Technologies Inc Earnings Call
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Thank you for your patience for Accuray's technologies second quarter 2021 conference call. We may get little began shortly again and thank you for standing by.
Okay.
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Alright, so I would like to apologize in advance for any technical difficulties.
If you have not seen a copy of our press release issued last night. It is available on our website playback service will also be available on our website as described in our press release.
Please no comments day today about our expectations for future revenues profit and other results are forward looking statements under the S. E C. J Harbor provision these.
These forward looking statements are based on management is current expectations and are subject to the risks inherent in our business.
These risks are described in detail in our for him 10-K annual report and other S. E C filings, which we urge you to review our actual results may differ materially from our current expectation, we do not assume any obligation to update before it <unk>.
Good morning, and thank you for joining us <unk> posted another strong quarter. This resulted from overall strength in the semiconductor industry as well as growing momentum in the Purion product line, notably from the Purion powers theory.
New for the second quarter was $147.3 million with the earnings per share of 55 cents driven by strong gross margin of 43.5 per cent.
What are we system sales surpassed $100 million for the first time since 2000 for.
T S N I R. Aftermarket business continues to provide a significant contribution to our top line and gross margin with 2.2 revenue of $47.1 million.
In the second quarter, 70% of shipments went to mature foundry lodge, a customers and 30 per cent to memory customers with an even split between DRAM and then we.
We believe the mature process technologies segment will account for greater than 70 per cent assist of revenue for the full year 2021.
Geographic mix of our system shipments in the second quarter was China 58 per cent Perea 18 per cent Europe, 12%, Taiwan 3 per cent and the rest of the world 9 per cent.
Turning to third quarter guidance, we expect revenue of approximately $170 million gross margins of approximately 42.5 per cent operating profit of approximately $32 million in earnings per share of approximately 70 cents.
We now expect to for revenue to be above Q3 guidance, allowing us to exceed $625 million in revenue for the full year 2021.
This is driven by the rapid growth of the mature process technologies segment in the early stages of a memory capacity built.
We expect both markets to remain strong well into 2022 and we are currently booking system Institute 2 of next year.
Overall demand for capital equipment.
Doctor industry is being driven by several factors, including supply chain shortages, hi, fab utilization across all segments, causing significant new fab investment government incentive programs, creating geographical expansion opportunities for our customers and the fundamental underlying drivers.
Started this grown cycle of 5 G data analytics and a I.
As a result, we believe that the implant Tan has increased significantly.
In addition, the rapid acceleration of the electrification of the automotive industry is driving substantial demand for power devices and image sensors.
This is not related to the shortage of general purpose mature devices like M P as for auto mode.
And by the 10 to 15 year strategic roadmap of all automotive manufacturers and their suppliers. These.
These markets are generating sustainable growth was hearing on product extensions in high current medium current and high energy designed to serve the power device and image sensor market.
We have invested significantly in both of these markets over the last several years as a result, we expect power to make up approximately 30 per cent of our systems revenue in 2021 with continued growth is driven by the the Purion product extension specifically developed for this market.
Our growth in this area is clear and sustainable and most importantly, it is tied to a longterm trend beyond any increase is driven by supply chain shortages.
Looking at the memory market, we maintain a strong and growing position, we accept 2022 to be a good year for capacity additions in this segment and are already seeing bookings for shipments later this year and into next year. We continue to see a high degree of activity and both advanced logic, where we have a purion age of values.
Asian underway and in the Japanese market, especially related to powered device manufacturing.
The market in China continues to be 1 of our strong. It is market includes a large number of both domestic and international customers and both to mature and memory market.
We currently have licenses for all planned SMIC shipments in Q3 and continue to receive licenses for future shipment.
Evaluations are key to developing new customers, increasing footprint and existing customers and penetrating new segment we.
We currently have 6 purion evaluation tools in the field focused on supporting future growth.
These include a purion Dragon, a purion H 202, Purion ages, and 2 Purion Exine, Max's, which are positioned across key target segments, including advanced logic, Nan DRAM image sensor and power devices.
We expect for the system to close this year.
We're also planning to ship 1 to 2 additional evaluations in 2021.
Even in our current guidance is at the quarterly run rate for the $650 million revenue model much sooner than previously anticipated. We are developing an implant driven revenue model beyond $650 million that we will publish by the end of this year.
As we mentioned last quarter. We are also putting in place offshore manufacturing capacity to support this growth Kevin will provide additional details on this project as part of his financial review of the quarter.
Kevin.
Thank you Mary and good morning.
Excel is delivered solid queue to financial results driven by strong gross margin performance and continued revenue growth.
Based on our third quarter guidance and current view of the fourth quarter for you know expect to exceed $625 million in revenue for 2021.
At the current run rates for as soon as significant leverage in our business model and expect for your operating expenses to be around 24 per cent of revenue.
For gross margin expected a finished slightly above 42 per cent.
I'm Goin' gross margin improvement will continue to be driven by the time it would cost an initiative and mix assumptions that include a hard number of pure and product line extensions.
For your gross margin assumptions include higher pandemic can't supply chain related cost and the impact of our investment an additional manufacturing capacity.
Based on the strength of the market and demand for a pair them products for developing new financial models that we plan to share later in the year that should take us well beyond our current 650 million dollar model.
On our last call I mentioned plans add manufacturing capability closer to customers with a goal of increasing customer satisfaction and capacity.
Well well underway with those plans and expect to have a new aksel those manufacturing facility in South Korea by the end of this year.
You currently have sufficient capacity in place to support our near term demands.
Back to Korea factory to play an important role in supporting future manufacturing requirements.
And I will turn for a second quarter financial results.
Q2 revenue finished at $147.3 million compared to 132.8 million in Q1.
For you to system sales for $100.1 million compared to 81 million in Q1.
This is the first time since 2000 for so we exceeded $100 million in quarterly system sales.
Q to see us in our revenue finished of $47.1 million compared to 51.8 million in Q1.
C as in our revenue remains strong driven by high Fabulous nation for <unk>.
Calling purion installed base system upgrades customers purchasing safety stock.
We expect Q3 C S not a revenue of approximately $47 million.
2.2 sales for our top 10 customers accounted for $75.1 per cent of our total sales compared to 79.8 per cent in Q1.
2 customers rat or about 10% in queue to.
Compared to 1 in Q1.
Q2 system bookings for $172.1 million compared to $148 for a million in Q1.
For the queue to book to Bill ratio of 1.71 for US is 192 in Q1.
We are currently fucking into the second quarter of next year.
Backlog in Q2, including deferred revenue finished at $271.2 million, a new record for excel as compared to our prior record of $186.5 million in Q1.
Q2, combined SG&A R&D spending was $40 million for 27.2 per cent of revenue.
Fair to 36.1 million for 27.2 per cent in Q1.
SG&A and a quarter was $23.4 million, but R&D at $16.6 million.
We expect Q3, combined SG&A and R&D spending the approximately $40 million for 23 per cent of revenue highlighting a significant leverage in our business model.
Q too gross margin was 43.5% and well above guidance, driven by strength and see us and I and.
Increased purion power, Syria shipments and continued cost dot activity.
For your guiding Q3 gross margin to be approximately 42.5%.
Driven by product mix and they expected closure of 1 of your evaluation system.
We expect for your gross margin will be slightly above 42%, including the closure of for additional evaluation tools.
Operating profit and Q2 finished at $24 million compared to $23 million in Q1.
For your guide in Q3 operating profit of approximately $32 million.
Q2, net income was $18.9 million or 55 cents per share compared to 16.5 million or 48 cents per share in Q1.
Regarding Q3 earnings per share of approximately 70 cents.
Q to cash finished at $225 million compared to $207.5 million in Q1.
And a quarter regenerated $38 million in cash from operations and subtle share repurchases of $13 for a million dollars.
Q2 receivables for $79.5 million compared to $75.9 million in Q1.
Q2 inventory ended up $192.3 million compared to $174 for a million dollars in Q1.
Q2, amatory tournaments, excluding shift evaluation tools finished at 2.0 the same as in Q1.
Q2 accounts payable over $40.7 million compared to $45 million in Q1.
I would like to thank all of our employees and suppliers for their continued efforts an outstanding execution supporting our steep business shrimp for any ongoing pandemic.
It is an exciting time for excel this unprecedented growth in the industry and solid customer demand for our products.
Our balance sheet is strong and we have a financial strength to invest in products and infrastructure and our employees.
We've also returned over $50 million of capital to shareholders. Since the start of our share repurchase programs and has $75 million remaining authorization under the current program at the end of Q2.
Thank you and I now turn the call back to Mary for our closing comments.
Thank you Kevin.
Sandwiches currently conditions for strong sustainable growth.
The strength of the industry as a positive for all semiconductor capital equipment and supplies, but axtell is uniquely positioned to benefit.
Significantly from the long term electrification of the automotive market.
Strength and established based upon Purion prana.
Particularly the Purion powers series implant your family and high energy products for image sensors like the Purion Dfc Empyrean S T Max.
These implanters provide significant value and enabling capability to our customers and result in better margin profiles for <unk>.
We will continue to partner closely with our customers across all geography in this growth.
Seles has the financial means to investing R&D global support infrastructure and capacity to capitalize on all of the opportunities.
Oh.
We were in the middle of 1 of the most exciting times in the history of the industry and are confident that we have in place the ingredients to maintain our leadership position in iron implantation.
With that I'd like to open it up for questions.
Ladies and gentlemen, if you wish to ask you a question. Please press star followed by 1 on your Touchtone telephone. If your question has been answered or your <unk>. Your question for us to.
<unk>, Please pass I want to begin.
Your first question comes from the line of practical some seatbelt your line is open.
Thank you very much for and congrats for review this quarter and how it works maybe first of all <unk> for your medium.
Given your results.
Outlook and obviously it looks like you've managed to get very well then.
Yeah, It looks like it's not having a good <unk> yard.
<unk> <unk> Gus qualitatively what aching.
<unk> well I can assure you that you can do a coke with that goes with the theme for the meal was coming over the next day <unk>.
What are some of the steps you take it to kind of mitigate the situation given that for the entire equal to the city state to share with today.
Day.
Yeah. Thank you for that because of the good question because it certainly there is a lot of pressure up there and we're seeing it certainly a lot of the appear earnings but.
You know we've been we've been dealing with supply chain disruption in really since I started the pandemic.
It was pandemic related to move more to this the steep ramp.
You know many of those problems are still out there and we're we're we're seeing it as well as others, but I think probably what.
It has helped US certainly early on we tried to stay ahead of it we took a hard look at our supply chain. We started moving some of the commodity level of things. So we put additional material from new suppliers.
We really went into MRP aggressively and opened up the lead time offsets to drive more material ahead of schedule.
And the other day that we focused on with engineering was making sure. We kept ahead of any potential obsolescence that may be coming in and took a look at long lead items. So.
I am not going to tell you it's easy, but you know we've been managing it we took people a lotta manufacturing from the manufacturing engineer ranks and put them looking at suppliers and work on suppliers. So it's a continuing challenge logistics right all of this stuff as as adding costs, but.
Gross margins, we're still on track to our our our margin improvement plans that we have and we're recapturing some of that through the volume so I.
I think that Patrick it's you know.
It's this is probably what we drove the M. R P and moving from that material are going on that's that's helped US and you know so far we've been able to keep ahead of it was.
Meeting demand.
Great day, Snorkel, and maybe you're smart electric.
<unk> also can you tell me just as it comes with a gross margin are you getting a really good job there from Sir you're always kind of a lot of moving pieces, you're absolutely your value atheist day close.
You are typically day to have lower mortgage.
But you're still on card just for you know through those for the model is it for me to an easy for for 43 per square, we could get for you so too.
650 million a revenue.
What else could we the fifth day or 2 they get <unk>.
<unk> yeah.
<unk> <unk> <unk> for the amount of weight.
Yeah, well the the the.
The obvious 1 his eyes were continuing to focus on cost out activity we've got.
Numerous value engineering programs ongoing the only think Patrick it's gonna help to a lot of these emails replacing around our product extensions.
And those are higher gross margin tools, so as we flipped somebody's evaluation tools and start getting into some follow on business that will also help so it's really going to be continuing to hammer away at Costco and get these product extensions into the field those are things for folk.
<unk> and.
We're we're taking obviously taking advantage of the volume right now.
You know as I mentioned, there are some other things pressuring as well, but you know the net of it all of US were still continuing in a in a positive direction. So we're just gonna keep focusing on those things that I mentioned.
Great. Thank you very much <unk>.
Thank you.
Your next question comes from the line of Pink Elliot from the O'reilly security for your line is open.
Yeah. Thanks for taking the question and all that go the congratulations from the very robust execution, especially on the fulfillment side in the current environment Mary I wanted to go back and follow up on the comment that you made about fucking business into the second quarter of 22, and just see if you could help us with some color on what you're saying.
[noise] as things broke out that far relative to maybe the mix of business.
Mature foundry versus memory doesn't look similar to where we are now or should tilting 1 way or the other and and maybe secondly, just in the composition of what you're saying.
What are you, saying with respect to uptake on some of the the new products from the product line extensions, but.
Have had very good momentum milk for the last 15 months.
Okay. So uhm Craig right now you know debt.
Demand demand as really strong across really all market and geography and in terms of the segments miniature process technology market for name a robust and this is really driven by high tab utilization Uhm, if you've got 1 level down image sensors general mature for.
Foundry business and the power devices are also strong and in particular, we're seeing a lot of growth and the power.
Device area, driven by a recovery in automotive and so when you combine what I mentioned before about the long term commitment to electrification it'd be automotive market and you combine that with the success that were seeing from the fellas Purion powers series in this market. This is really 1 of the things that.
<unk> created a sustainable growth opportunity for sellers again. This is not just 2021, but this is moving into 2022 and beyond.
In terms of the split you know that we said this I think my my last call, we except for mature process technology segments going to accounts for over 70% of our systems revenue in in 2021, just because of the strength that we're seeing here.
So, but let's turn your memory. So you can talk to you about how memory is recovering and we expect steady business. In 2021, we are seeing initial capacity by.
Coming into our slot plan at the end of this year and early next year. So we are seeing a pick up in memory and we've always said that our memory memory business in the additive too strong mature process technology business, and that's really what I'm driving us to say that we're going to be 16.625.
Million in revenues you know this year.
The customer interest.
<unk> strong we've got a lot of demo activity was that 6 evaluation unit I'm out in the field. We we have what we believe we have the right products the right market positioning and.
Talked about our execution at this point in time is really quite day. So.
This is really what's gonna lead to future growth you've been beyond our 650 million dollar.
Business model I, I'm Gonna I'll turn it over and dug into the second but you know as I said, we have your second part of the question was you know the product line extensions and and how are the products dealing with the products are doing extremely well and I didn't mention that we have.
6 evaluation units in this in the field right now we've got 2 in memory, 3 and mature process technology and 1 in advance logic and you know we're looking to all of those evaluations to drive future growth for them or in high correct, which is you know the largest segment.
The implant product types.
And that's you know a place where we are really focused in terms of driving additional growth and 2 of them are in high energy and our high energy business.
Her name is very strong and we are yeah. We have a leadership position there were putting these product line extensions out into the field. So for example out of those 6.
Evaluation unit to our Purion S day, Max's leaning image sensor manufacturers 1 of them is a purion H 200. This at a leading powered device manufacturer.
Manufacture and you know the other is is that I'll mention is is appearing on age and advanced logic customer and we truly believe that this is the opportunity that we've been looking for it to.
Penetrate this segment and really get a foothold income growth.
Is very important market.
I don't know if you want to add anything to that in terms of some of the details on the product himself.
I think you covered most of it the you know I think Craig for Silicon carbide tools for puree, ma'am, appearing it's 200 and no period actually in that market are doing very well and the period H 200, especially as appears to be a very popular.
<unk> option for customers in the power market. So we're looking forward to good growth in that product line.
That's really helpful Mary.
For the follow up question relates to the remarks around the.
Point in time moving capacity.
[noise] for to customers from what the facility getting ready to ramp up in South Korea. So the question is this when that facility.
Is open then and operational what's the what's the revenue capacity of the firm.
In the near term next 1 to 2 years and as we look at somebody for longer term trends, which Mary you've identified the you know the.
Multi decade dynamics, Shin and auto related E D N a dash in the spiritual best position that that <unk> has there.
We'll we'll existing capacity plus South Korea give you the the 3 to 5 year headroom, but you need or will there be other capacity that you'll need to bring online. It's free book at getting from here to at least kind of the first step for work with some be secular auto dynamics by 2025.20 per cent yeah.
But.
Craig is Kevin let me grab the first part of it so.
From our capacity to point of view of what I will tell you is that you know where.
It's the models were looking at beyond 650, right now that we're going to publish at the end of the year.
We'll have plenty of capacities between our Beverly site and the new facility in South Korea to cover those models.
Longer term you know if we need to do additional expansion.
We can take a look at what we're doing in South Korea and add capacity there, but I think you know we did a lot of work over the last couple of years with our existing infrastructure through Cayenne events, we invested in the capital equipment. So we freed up space.
So I think between all of the things we've done in South Korea. There is there won't be capacity issues from a pure Bill's point of view moving forward.
Can I just add 1 day to that so uhm Crazy day, specifically assets that I that I didn't want to just add that.
We have spoken no we have a very strong position with customers in Korea, and I've been in personal contact when does that day at the pleasure is telling 1 of our largest customers in person about the fact that we're we're adding this catastrophe south Korea and they're all extremely.
For you. So the good news is we will have the capability to basically means does need and again I think it's I think it's a plus now I'd only in terms of the capacity, but I think it's a blast in terms of our positioning in in South Korea as well as in the Asian market.
Yeah, No. That's Mary just 1 I'll just go ahead and just wanted a quick quick fault I Should've mentioned too Crazy the plan for South Korea is that we'll be able to ship for you know to any of our customers from that facility as well. So it's not going to be setup. Just for you know 1 or 2 particular customers. The plan is that whatever we're building there has the capability to.
<unk> to any of our customers.
Okay. So you could meet some of that very strong trying to market demand from South Korea. After it opens yes, yeah. Yeah. Okay very very helpful color team will hop back in the queue. Thank you.
Thank you.
I can't do you ask a question please fire.
For 1.
Your next question comes from from <unk> from the eighties. It then your line is open.
Yes, good morning, and thanks for the question Mary I 1 day.
For I can hear a little bit more about the the emerging memory recovery and how it how do you think it rolls out over the next year or 2 in terms of both day and DRAM and maybe the timing.
Okay, well I think you know as we said or did they just said we are starting to see this pick up now come at the end of the year, we expected to build into 2022 Ah business right now as I. Just mentioned for example, an issue with evenly split between me and and day Ram.
And and honestly, we've said this a number of times.
Arms of our preference it doesn't really matter what specific type of device capacity the memory customer gray and because you know, there's a little bit more high energy and and the man, there's a little bit more high current DRAM and we have exposure in our process to.
Bradford too you know to both of those types of devices. So it doesn't.
We're just waiting to see really how it lays out again I don't know if you have any additional color you want to add on with your thoughts.
Yeah. So so tell me.
You know for implants, Uhm, we're very much capacity dependent in terms of growth so as bad way for starts they.
They need to add and <unk> and you know as you could see from the various memory company onions calls. This quarter. You know demand continues to be very strong and supply is taking the last year. They did a lot of technology increases to increase their for their bit Oprah Peter.
Additional layers score shrinks in terms of DRAM and now they're at a point, where they're beginning to fill the shows that day. They put in place and so we expected as we go into the end of this year and throughout next year. It <unk> it should be a pretty good cycle in terms of memory capacity way for start ups.
Thanks for I guess quite helpful. And then so they talked about.
Your business your sister's business being 70 per cent mature. This year. What is your long term view of a mix between a mature in memory and it seems like it's excuse me more towards mature over the last year or 2 but it is your long term view changed.
Oh, thank our long term for Ya.
That's correct.
You wanted that did you want to know how can I.
I was gonna I was gonna say the same thing at the back.
Back the days when when it was 50.50.
Or even 70.30 in favor of memory are probably behind us give them the strength and sort of the diverse and large customer base that we've developed so as the power market continues to grow in the image sensor market as we establish a foothold in Japan and in advanced logic.
You know then memory will continue to be strong as it cycles in terms of capacity.
No, but I think we would expect to continue to see you know a.
For a stronger mix from the other technologies overtime.
Alright, great and then finally, when you look at the email tools and 4 of them potentially closing up for later this year I was gonna ask you about the hit rate followed orders or sound like Mary.
Earlier that expect business from all for so I'm just curious at this point what is the typical timing of inclusion of a V Bell too too maybe some volume production tools.
Well it can vary anyway, we've talked about how emails typically run 1 year, some run a little bit Wanna, some run a little bit shorter, but in general it's about a year, where we become classes to a record and then get repeat orders now there are systems.
Where we are able to get repeat orders even prior to closing evaluation. What's happened is we've worked very closely with the customer. The results has been very good and the customer has requirements to add capacity and so we have gotten uhm routine orange again, less and less than 12 months.
So it really varies by customer, but I think in general 12.19.
Thanks for.
Okay, great. Thank you for your time today.
Thank you.
Thank you.
To ask a question for me. Please press for 1 your next question comes from the line of Green Mountain from Needham and company. Your line is open.
It'll be for my congratulations on the night's results and an outlook wanted to start just just for the E mail tools to make sure I've got the numbers right.
I think you said you will complete for emails or expecting closed for you gals before the end of the year with 1 in the third quarter or so so likely free then in the fourth quarter was that correct.
Quinn Kevin.
So we have we have 1 in the third quarter. That's in our guidance and then we we expect to see a for additional tools before the end of the year.
So that's in addition to the 1 in the third quarter. So it's for then in queue for yeah.
Yeah.
Got it Okay, and then Kevin the the guidance for the full year on gross margin of just over 42 per cent sort of apply to sit down and and margin in in the December quarter I assume a lot of that reflects those for you they'll tools you recognize but I'm wondering whether the south Korea facility care.
<unk> any startup costs or absorption issues as it begins to ramp capacity.
Late this year.
Yeah. So.
Initially there is some drag from that Quinn for those exact reason you brought up the absorption issue I mean, we're hiring people right now.
For training people and.
The expectation is that once for a fully operational you know some time into next year.
You know this becomes a margin accretive type of a thing versus a very Ah.
Slight drag this year, but yeah. So there is a little bit of a margin pressure coming from that and then you know as you mentioned the additional eval closing out uhm as well, but I think.
I think that's the key point in our margins are already.
We've had roadmaps and plays for for those Roadmaps you know some of them are my timing based so I mean, we're way ahead of our models right now in terms of where we thought it would be on revenue.
And the gross margin is is coming along and it should continue to move move up as we execute on these you know.
Costa initiatives, we have get the factory fully operational over there now.
Flip some of these evaluation tools, which are product extensions in high margin until follow on orders that Mary was just talking about and I think those are really the levers that are gonna move you know continue to give us a margin growth and.
The timing is again movie based on the questions that we can get some of this work done.
Get it and then I wanted to ask for a longer term question. Mary you you'd mentioned that you think the item plant Tam now is is much larger than than perhaps it had been I think for.
Fairly long time, you've you've described a T M. A volume implant it about a billion dollars wondering if you have an updated tab you might give us and you know I know you're gonna give us new Mark sorry, new longterm models, but but I think you're 550 and 650 models sort of assumed.
You know up to 45 per cent share of the old T. I'm wondering if you might update your sort of market share thoughts given it the chance that much larger.
Well alright.
Grab that Doug Doug.
Diagnose you wanted.
I don't want you to yeah. It was so so the the tag let's start with the first question on the time as we've said numerous times, it's difficult to actually quantify that because there's not a lot of actual reporting we had been for the last several years.
Saying that the team had been about 1 billion and was growing at 10% to 15%.
So yeah at this point if you look at.
Some of the more.
More recent industry analysts numbers. It's it's now looking like it's probably up in the 1 and a half billion range and so where.
Right now trying to quantify that and and get get our estimate in terms of of share again, it becomes a very difficult thing for us to exactly calculated given that the denominator. This is kind of a moving target and so what we.
I do know is we have very high share and.
Technology leadership, Mindshare leadership and market leadership, especially in the targeted segments like the.
Power device and image sensor markets and we continue to do extremely well with the focus products.
M W developed for the peering extensions so.
Where we'll update the model and at that point make make some decisions on how much additional color, we do around anytime calculation or for sure.
Great and then last question just trying to trying to business I know you received licenses to ship to 1 of the Chinese foundries wondering if you could comment which was the China revenue concentrated this quarter's results received those licenses or is it pretty diversified for.
Yeah, well it was a fairly to for site revenue strength.
It was it was a mix we there.
Was.
It was the concentration to 1 particular customer interest based on the timing of some of the export licenses that we received but China is is really not for the large and diverse group of both.
Taken multinational customers and then for.
Particular customer that you're referring to and then I mentioned is is the only 1 of many many customers that we have in China. So there was a little bit of that but I would say in general. It was it was much more of a next across abroad number or a large number of customers.
Great. Thank you for the day or solid color.
Quentin is Kevin again [laughter].
I'm Gonna go back to the eval. So it is it's.
It's 1 in Q3 is a total of for more for the remainder of the year. So it's 1 in Q3.3 in queue for which I think is what what Mary instead earlier so.
I apologize for that I think I I think that confuse the issue. So just for them, while we expect 1 in Q3 and 3 remaining ones in queue for.
For that was it thank you should.
Yes.
Which includes take any person to call I will now trying to call back over to Mary for my who will make a few closing remarks.
Thank you Mary I'd like to thank everyone for joining us today, and we hope to talk with you virtually and feeling person at upcoming investor events in.
In August we will be participating in the medium secondhand virtual semi capital will be a conference and also the Jeffrey 2021 semiconductor I T hardware and communications infrastructure stomach and for me.
Thank you for your continued support.
[noise] sufficient inclusiveness ambition. Thank you for your participation entities conference you may now disconnect good day.
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