Q3 2022 Camtek Ltd Earnings Call
It's 49% and operating margin.
Eight 3%.
Close to 60% of our revenues came from.
From advanced interconnect technology application.
It's Regina this integration and HBM.
For over 30% of this segment.
We continue to expand our customer base, we sold system to 42, new customers in the first nine months of this year.
Specifically, we are cementing our position in the front end and compound semi segment.
These two segments accounted for approximately a quarter of our revenues.
As widely reported consumer demand for PC and mobile is down.
As a result, the contribution of Cmos image sensor related system to this year's revenue will be slightly below 10%.
This quarter, we continued to strengthen our position in <unk>.
The us and Europe due to major industry investment made there.
U S and Europe accounted for 27% of our sales versus 21% last quarter, 12% in Q3 of last year.
Q4 revenues are expected to be similar to those of Q3 translating into record annual revenue of around $320 million for 2022.
The company Diversifies exposure to multiple customers secular trends and territories contributed to our success.
Last month, the U S Commerce Department announce new regulations, restricting defense and support of semi conductor equipment for advanced nodes in China in both memory and logic.
Our customers in China are mainly offsets in the advanced packaging segment, all manufacturers of trailing edge silicon wafers.
We continue to evaluate the impact of such restrictions on Comtech, but based on our initial assessment, we believe the direct revenue impact will be marginal.
The global economy is projected to decline.
2023, and expected to affect both wafer fab equipment in general and even more so in the memory segment.
2023 is expected to be a challenging year for the industry with customers being more cautious.
We believe that although complex business model is not immune.
They are more resilient.
I will point few prisons one.
We support a technology change in the industry of transition to advanced packaging and <unk> integration.
6% of our business is it related to this segment. This trend is expected to continue.
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Operator.
Can you hear.
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[music] hi, good morning.
Yes.
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Thank you.
Yes.
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Ladies and gentlemen, thank you for standing by Mr. Rami Langer would you like to continue please.
And I apologize there we have a technical issue and I will continue on Ross's behalf.
And I will pick up where he stopped and as we said we believe that <unk> business model is not immune. It is however, more resilient and let me give you the reasons for it.
First is we support that technology changing the industry transition to advanced packaging heterogeneous integration, 60% of our business is related to these segment. This trend is expected to continue in the next few years.
Furthermore, the sales to the memory segment are limited to DRAM, only which historically accounted for less than 5% of our total business.
This segment.
We mainly supported the transition of the high bandwidth memory, which is growing based on orders we have on hand and in the pipeline. We expect increased sales in this space next year.
Also the increasing complexity of wafers being manufactured today means with manufacturers require ever more advanced inspection systems in their facilities.
We believe that the field of inspection in the segments in which we operate will be less affected in the event of a slowdown.
Moreover, Comtech has a wide and diversified customer base. This quarter alone we sold systems to more than 40 different customers and added eight new customers.
Altogether, we have over 250 active customers.
Despite the positive factors that I've outlined we are progressing cautiously into the new year.
We are carefully monitoring our balance sheet items, such as inventory levels and accounts receivable as well as our head count.
However, we continue to invest in R&D and plan to introduce new products and capabilities next year, securing our long term growth path.
I would like to conclude by stating that semiconductor is a strict strategic industry and all leading countries are heavily invested in it.
We expect that in 2023, the semi conductor industry will likely decline.
<unk> is also not immune but we believe our leading position wide customer base and longer term strategic relationship with customers will enable our business to be more resilient than the overall semiconductor industry.
I would like to hand over to Moshe for a more.
More detailed discussion of the financial results.
Thank you Rami in my financial summary ahead, I will provide the results on a non-GAAP basis. The reconciliation between the GAAP results and the non-GAAP results appear in the tables at the end of the press release issued earlier today.
Third quarter revenues came at a record $82 million, an increase of 16% compared with the third quarter of 'twenty planning one the geographic revenue split for the quarter was as follows Asia accounted for 73%.
The U S and Europe for 27%.
Gross profit for the quarter was $42 million the gross margin for the quarter was 14, 9% versus 59%.
The third quarter of last year.
Yes, indeed, it is below the typical range of our gross margin model and this quarter. It was mainly driven by.
And less favorable product mix, resulting from a few large orders.
It does not represent a meaningful trends, we expect some improvement in our gross margin in the fourth quarter.
Operating expenses in the quarter were $17 million, an increase of $2 $7 million compared to the third quarter of last year and $300000 compared to the previous quarter.
The increase from last year.
It's mostly due to the increase in R&D expenses and sales related activities to support the increased revenue.
Operating profit in the quarter was $23 $2 million compared to the $21 7 million.
Reported in the third quarter of last year, and $23 2 million.
In the previous quarter.
Operating margin was 28, 3%.
Compared to 36% last year and 29, 9% in the previous quarter.
Net income for the third quarter of <unk> 20.
<unk> 22 was $23 $3 million or <unk> 48 cents per diluted share. This is compared to a net income of $20 million or <unk> 45.
<unk> per share.
In the third quarter of last year.
Diluted number of shares as of the end of the third quarter was $48 3 million.
Turning to some high level balance sheet, and cash flow metrics cash and cash equivalents, including short and long term deposits as of September 32022.
$463 million.
This compared with $438 million at the end of the second quarter.
We generated $25 $3 million in cash from operation in this in the quarter.
Inventory levels remained flat compared to the end of the previous quarter in the last few quarters, we increased the inventory to overcome potential supply chain issues.
Where does the stabilization trend of the supply chain, we plan to reduce the inventory level.
Accounts receivables went down by $9 7 million as we had good strong collection in the quarter. This represent approximately 71 days outstanding.
I would like to note that the company management is closely monitoring the different scenarios of market demand and customer investment plans for <unk>.
2023.
<unk> is ready to respond accordingly.
Regarding guidance.
Mentioned before we expect fourth quarter revenues to be around the same level as of the third quarter.
And with that Rafi, Rami and I will be open to take your questions.
Operator.
With us Ken Yes sure.
Continuing with the sweep of the week.
Okay.
At this time, we will begin the question and answer session.
You have a question please press star one.
Cancel your request please press star two.
Using speaker equipment, Kelly lift the handset before pressing the numbers Youre question is will be pulled in the order. They are received please standby while we poll for your questions.
The first question is from Brian Chin of Stifel. Please go ahead.
Hi, there good afternoon, and thanks for letting us ask a few questions.
Maybe kind of roughly first a follow up.
Following the recent U S export restrictions in China I'm, just curious what is your sense on on the new investments.
How the new investments in fab in advanced packaging capacity might.
It might be directed and prioritize moving forward.
Also how big of a benefit do you see this for <unk> next year based on increased activity in China in areas like advanced packaging or specialty power et cetera.
Yes.
The situation in China, Inc.
Remember just four weeks ago.
The Commerce Department.
Made all of this restriction in the announcement.
And I think it's too early to evaluate the effect on the semiconductor industry in China.
But at this point.
When we discuss with customer in China, It looks like business as usual.
And the utilization is okay in the.
Fuel everything look like normal.
So I believe it's still too early to understand if this restriction.
The effect of the oil industry or specific area, we don't know yet, but as I said before.
At this point it looks like business as usual.
Okay.
And kind of moving beyond the geopolitical but.
Is it fair to characterize.
The environment Youre seeing in sort of your order book in the backlog.
Those patterns is it fair to characterize.
Your advanced packaging customers and maybe even more broadly as being in a digestion mode and based on your order quarter bucket can you provide any sense on the revenue trajectory into Q1 or first half next year.
Look first of all as we as.
As we mentioned you know most of our customers are not in the notes and we are mainly.
Support the ulcer so not in this under this restriction.
Second about the backlog and pipeline.
I would say that if we just looking over a year ago.
All the supply chain interruption close to many customer to place all their highest of time to secure delivery.
Now in.
Delivery back to normal and people feel more comfortable and uneven some you know think about <unk>.
EBIT progressive slowdown indefinitely customer not so Harry to place order.
So we can see you know that.
The amount of pipeline is much bigger than backlog.
So we discussed with Scott.
We see leads but.
We can see today.
Forecast as we sold a year ago because of the cost of the looking the place.
It's all about when they really need it and they don't feel the need to secure.
Every.
A few quarter ahead.
Also as I said, if we talk together the backlog and the pipeline, it's Luke I would say.
<unk> normal but the.
I would say to see when the pipeline.
It would be converted to backlog.
It can take time and probably as before we will.
No more before we start the new quarter, we get a better picture.
Okay.
Got it.
Based on that huge sample size, but I've noticed our observed sometimes Q1 kind of maybe its seasonal tends to be sequentially up in terms of revenue.
But maybe it's listen listening to what you are saying, Ralph maybe you could take a step down a bit given sort of you don't have as much backlog defined backlog moving into next year.
Ravi chemical did contribute.
<unk>.
Let me try and be a little bit.
Joe.
Definitely our visibility at this stage looking into 'twenty Threes limited.
Now the backlog is healthy.
And we have a very strong pipeline.
And I think as Rafi said it is too early to assess how quickly. This pipeline will turn into orders and this is a little bit different than where we were let's say a year ago, but definitely at this stage. It's too early we'll need to wait for another few weeks and Tim will be able to really get a better assessment.
On the first half of 'twenty three.
Okay fair enough I'll hop out.
Alright, Thanks, a lot.
Okay.
The next question is from Tom O'malley of Barclays. Please go ahead.
Hey, Thanks for taking my question guys I just had a question on the December quarter. So so clearly visibility isn't as strong as it was before but you guys are guiding to flat business could you just talk about how much of the December quarter is actually booked today already and how much is in flux as the quarter goes along.
No.
The current or the current quarter is fully booked and it really now it's a question of executing the shipment and that's it.
We don't expect any surprises this quarter.
Okay.
And then if I look at the mix of business.
Clearly Cmos image sensing is a little weaker I think you said in the prepared remarks that thats coming in below 10%, it's already kind of tracking well below that so that makes sense, but in the quarter for September you saw a pretty big decline in what you've called the other or general business.
What contributed to that decline sequentially and will that go down again in December .
Okay. Thanks, a lot.
Hi.
Tom I'm not sure about which decline I mean, we are seeing and I think we said it in the pre fair in the prepared remarks, our business for the advanced packaging is around 60%. It has been in the last few.
Quarters, and it's a very similar rate.
The front end and the compound semi is about 25%. So overall I would say.
85% of the business is very very stable now the rest.
MS image sensor historically was above 10% this year it will be a little bit less and this will be compensated by what we call general.
The inspection applications things like Mems and other applications, which are smaller in the in the volume, but from the business point of view there aren't any differences or declines the only change I would say is the Cmos image sensors and this is strongly.
Related to mobile phone sales.
Got it got it and then just just one more on on.
On the coverage so totally understandable that youre seeing limited visibility I think broadly markets are just getting weaker in general.
And you're kind of talking about our semiconductor market. That's down next year have you thought about what your business can grow in a scenario, where wafer fab wafer fab equipment is down 20% plus.
I'm just trying to understand you guys have clearly outgrown the market for the past several years in a market that's down say 10 or 20% how much growth do you think you see off of the market.
That's a little weaker next year. Thank you.
So Tom I think it is much too early to say today.
What will be with our current feasibility to really say to give a good indication of the 23 business. What we believe that we'll do better than industry.
And at this stage, how much better than the industry. It is really too early to say and I believe that within a quarter or so we'll be in a much better position to give more accurate statements.
Thank you.
Thank you.
Sure.
The next question is from Charles <unk> of Needham <unk> Company. Please go ahead.
Hi, Thank you for taking my question.
For a little bit longer term question not specific to the 2020 three.
I think a lot under appreciate that part of your business is that you have a very broad customer base 250 active.
Assuming each one of them just by walking systems Thats enough to support your $200 million annual run rate.
Okay.
I think customers either greenfield customers.
In a competitive displacement.
However, I do want to ask you.
Question from this point and forward.
Much.
Incremental additions of new customers do you think it's going to be could there be a slowdown offer a number of customer you can add going forward.
Here and specifically I wanted to ask you about.
Wafer manufacturers I don't recall, you talk about that particular set of customers and that is that some competitive displacement there. Thank you.
Yes.
Yes.
I didn't think about it before but you know.
<unk>.
First of all I believe it will continue to add new customers and work and the broad addition of customers is in general it's not related to one specific territory I think is weak.
Grow the business, we're getting into new segments, and therefore, yes, we will continue to add customers whether it will be in the range of this year that we've already added 42 customers I am not sure whether it will be or it will be in a different magnitude, but definitely if we look also.
Storing clean to previous years, we've been adding a significant number of customers every year now specifically wafer manufacturers, yes, we are adding new wafer manufacturers to our portfolio.
And we'll continue to add and when I look at the target market for 2023, I believe that we will have new customers in this segment as well.
Did I answer your question.
Yes, yes.
So the other question.
Well first of all.
We appreciate you from time to time provide.
Press releases about the latest.
Orders you received from your customers about that your last update was in early September so between September to now over the last two months or how do you see the ordering rate going on.
I may have another follow up after that thank you.
So I think Rob you mentioned it in the previous remark that <unk> talked about.
Yes, we've been adding.
Orders I think currently we see customers are waiting to make sure that they are getting the business before they'll turn the pipeline.
Into.
But when we look today at our backlog and the pipeline.
The business is healthy the really the big question and this is why we are.
We Havent limited visibility is the rate of the customer's Sterling potential appeals from the pipeline into <unk> you are taking more time and they will the lead times are shorter.
So I think we'll have a better assessment and we'll be able to give better numbers are more accurate numbers within a couple of months.
Yes, I would like to at all my comment.
Usually when we make announcement of order it should be you know all the what we call multiple system orders.
Don't make announcements for one or two systems per customer.
Different and if we look on our portfolio. It's definitely you know contain a lot of what we call run into this unit per customer. So definitely we don't make any announcements of each order.
OLED.
Got it got it so maybe my last follow up.
Yes.
In your backlog what's the.
Based on your backlog, what's your visibility into first half 'twenty, three and you see some something shipments scheduled well what's the latest.
Our second quarter 2003 or is it still first quarter alright. Thank you.
Looking into the backlog, we have backlog today that is already including machine shipments in the first and the second quarter. However, we still need in order to complete shipments for both quarters, we will.
Need to converge some of the pipeline into Piceance and Thats exactly what were doing today.
Thank you.
No.
The next question is from Craig Ellis of B Riley Securities. Please go ahead.
Tim Thanks for taking the question and congratulations on the execution in the third quarter.
A lot of discussion around backlog and orders and visibility into cash.
Calendar 'twenty three so I wanted to pivot to gross margin.
You talked about some March customer dynamics have impacted gross margin in the quarter can you just identify if there were any other factors that impacted gross margin.
And what should be expected with gross margin beyond the calendar fourth quarter will they get back to that 51% level or their input cost or other large customer items that would have been maybe sub 50 or right around 50%.
So the main the main impact of the relatively lower gross margin for the third quarter was indeed.
A few large orders that we have delivered in the quarter and we will continue we will complete the delivery of them.
Over the course of the fourth quarter. So you will see some improvement in the fourth quarter, but not to the full extent, we should go above the 50% Mark.
Next next year.
I'm not sure to the full 52, the upper limit, but we should be able to go back to above the 50% level.
Got it that's helpful. And then second question just relates to operating expense.
I acknowledge we're dealing with an unusually uncertain environment, but the question is this.
Yes.
Trends in other dynamics meant that we weren't seeing the.
The backlog conversion too.
Two firm orders as you look at operating expense do you feel like you have any flexibility to reduce operating expense tactically or given the significant increase in customer engagements do you really have pressure on R&D to scale that up so that you can do the work that you.
You need to do to serve all of these new customers.
So.
The two key elements in our operating expense structure is R&D and sales and marketing G&A stays pretty much flat.
I believe that our business model is pretty agile so we can.
Change some of the.
Good.
<unk> mix between.
Direct and indirect.
On the R&D front.
I think Rami Rafi mentioned in his prepared remarks.
The quick.
Want to continue to invest we have plans to introduce new products and new capabilities. So this is definitely an area that we don't want to.
Our effect, but but within the sales and marketing there are certain activities that can be.
Changed.
Based on activity level.
Yes that makes sense and then for my final question, a real strong cash performance in the quarter.
Where we are with $460 million in cash and equivalents.
Rafi can you just give us an update on how youre thinking about M&A I know you've talked about in the past and one of the things that precluded significant progress was that we had a COVID-19 environment that really made it hard to get out and meet potential targets in person, but but what should an investor expectations as we exit 'twenty.
Two and look into 'twenty three on potential there. Thank you.
Yes.
M&A definitely we know we.
We invest a lot of airports.
And the fifth time not participate the meeting in Israel.
Because it also.
Im investing on this on this issue.
So we really believe that.
Yeah.
We could do something in the next few months definitely but you know it's a long process. Even if you find something you want to make today, especially good good.
To check everything to be sure that this is the right marriage and not to do to make any mistakes.
So we do it cautiously, but definitely we invest a lot of effort to execute.
I would say in the next six months something.
And can you talk a little bit about what your priorities are whether rates.
<unk> increased.
Geographic or end market exposure or a particular technology capability.
Can you talk about the M&A priority MMA.
Yes.
Okay.
I would say that since we take major market share, we're not looking for a company similar to comtech or doing something like this.
This is not so don't forget to bring any if any.
Vantage for US we focus more on some in one hand should be in the same market segment, but on the other end in different technology or different product line and then we can still use our.
<unk> share of sales and marketing support.
And joy this infrastructure to promote another product line.
This is the roughly the way this is the priority that.
We are giving.
Some areas.
Metrology there are some process the other thing that still targeting the same segment.
We focus and we really believe that we can bring some some results very soon.
That makes sense.
Not so much scaler, but really technology extension product line extension.
Thanks, guys.
Thank you.
Yes.
The next question is from Gus Richard of Northland. Please go ahead.
Yes, thanks for taking my question.
Just on the.
Vernon side, you mentioned, you've got pretty good demand from.
Excuse me compound semi and I was just wondering is that silicon carbide gallium arsenide.
Yes, indium phosphide.
Gallium nitride.
Which compound semiconductors is driving that part of your business.
I think today whats dominant in the business in the last I would say couple of quarters, it's definitely the silicon carbide portion.
Okay.
And how much of your front end businesses compound.
Now.
Sure.
I would say it differs from quarter to quarter. It is roughly I would say.
Loans to 10%, but it's one quarter more one quarter left roughly 10% of the business.
Yes.
Got it that's very helpful. And then just one last attempt on on visibility.
90 days ago, we were sliding out I think into Q1.
Today, if somebody came in and wanted.
A tool as soon as possible when could you accommodate that customer.
This is a difficult question because it really depends on the kind of the tier ones. So certain tools will be able to give him in less than two quarters.
How much less.
But I would say.
It is the soonest. We can gave is roughly four to six months. This is as soon as we can give somebody a tool.
Got it and what does that.
Normal times, if we ever get back to that.
Would that lead time be.
That's the that's the lead time I mean, you are talking about 16% to 20 months at 20 weeks.
And if you go back, let's say six months or more.
Over a year ago, I think those lead times extended up to two quarters.
So definitely lead times are shorter today.
Roughly I would say to have shortened by roughly if you want to give number anywhere.
Around a month and a half to two months.
And thats exactly the difficulty that we have been describing now because having said that people understand that we can provide machines at around four months and therefore, the less quick to to secure the slots. They understand that there are slots slots.
In our in our manufacturing and.
Therefore, this limits our visibility to the first half of next year.
Got it got it Super helpful.
Yeah.
Do you have any.
Supply constraints at this point or have the supply chain issues been alleviated.
I believe they have been alleviated.
There are some issues here and there there is a missing component here and there, but we are able to get the material that we need I don't think that supply chain issues today.
<unk> will create any any shortage.
Lack of or the ability to ship any machine. So so I think this is not the main issues today.
We have overall.
We can get the parts I think the supply chain in general is getting to I would say more reasonable situation.
Okay and then the last one for me.
Today, roughly what is your.
Quarterly revenue capacity.
Yeah.
No.
I think that we're not that we I think we discussed this in previous.
We have made a significant investment in clean room capacity and today. The capacity is it's not a limitation anymore, we've increased our capacity.
By about.
50%, where today able from our facility to ship about half a billion dollars of.
Revenues Orient in machines.
This is not a limitation anymore.
Okay, great. Thank you so much for taking my questions.
Okay.
If there are any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
There are no further questions at this time.
Before I ask Mr. Amit to go ahead with his closing statement I would like to remind participants that a replay of this call will be available on <unk> website Www Dot com Tech.
That IL beginning tomorrow, Mr. Amit would you like to make your concluding statements.
Yes, hi.
I would like to thank to thank you all.
For your continued interest in our business again, I would like to thank all of our employees and my management team.
For the.
Tremendous performance and we look forward to continuing to.
To our investors I think your long term support I look forward to talking with you again next quarter. Thank you and goodbye.
Thank you. This concludes the camp tax third quarter 2022 results conference call. Thank you for your participation you May go ahead and disconnect.
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Yes.
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Good evening.
Good evening.
Name is Dan Brennan.
I'm a member of the <unk>, United Methodist Church, and I'd like to walk you through our sanctuary. The sanctuary was built in <unk>.
It's a great place to work, but it's also and it's also a great place for our cancer Tonight. We are so happy to have the.
Perfect community Orchestra with us.
Get the cancer started I would like to introduce our conductor.
Conductor conductors.
Andrea.
Brian .
Yes.
Good evening, everyone. My name is Andrea with Pronto, and I am the music director and founder of the farming community Orchestra.
We welcome you this evening to this concert.
Our opening confidence season named masquerade. Thank you for joining us as we present this and chanting program for advancing pieces.
For me come with orchestra's mission is to provide the opportunity to learn and perform orchestral music and make that opportunity accessible to all adult musicians students amateurs teachers retire professionals and in turn reach out to our community with.
With family friendly and pre cancers.
The Fermi Orchestra family host three ensembles now the Permian community Orchestra, which will be lost on the program Tonight.
Fermi community strings, which you will see before me here and before you and the Fermi Foods I'm very pleased Tonight to also introduce our guest conductor Geneka Richardson at the podium to direct it for me.
It may be a great program.
As you look through this evening's program and I Hope most of you have a program I know, we kind of ran out. So if you can share amongst yourselves that would be great.
You may not recognize by name all of the pieces that are on the program, but I guarantee that you will listen and be like.
I've heard that before.
Or I know I know that one oh, that's what it's called.
So there's a lot of familiar tune Tonight, and I hope you enjoy it.
So without further Ado here's the permit.
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Before we play our final piece.
All I can tell you a little bit about the farming community strings. This is our second year that we've been an ensemble and the ensemble is made up of is it really a training orchestra.
For beginners and adult spring mutations that are coming back after a period of time.
And many of these mutations picked up playing instruments as adults as well.
I'm really really proud of the work they've done this this session.
There are some new faces in our orchestrate this.
Session as well and we welcome them and we're so proud of the work that they've they've done they've made tremendous strides non sample. So very very proud of you. All thank you so for our last piece.
Is the three shadow dancing.
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Good evening and thank you for coming out Tonight.
This is the Fermi fluke Claire and we're going to play a few pieces for you before each piece I would like to tell you a little bit about each piece. So our first one is the <unk>.
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And the poker.
Couple of Dan.
Mid 19th century Bohemian origin in duple time, so that means it's in.
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Play today include the clarinet yoga and the journey Linda Koga.
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Next arrangement. Our next piece is called puck often its smelter one.
And this arrangement of puck is from the lyric pieces.
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Edvard Grieg paints a musical picture of park, who is <unk>.
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Shakespeare.
The composer has master Lee.
Created contracting playful mood from heavy serious minor sections, featuring our low fluid in the back.
And on the slide here.
Two the dancing lighthearted major section, where you will hear the Piccolo NFC dancing.
I have an idea of how.
This is set up we have a fluke family.
Going from lowest to highest.
Our contrabass fluids.
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And then we have our base.
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Which is the only flu in the key of GE.
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Our next election actually has three movements to it.
It is called three dances from Henry.
So a little bit about this before the motion pictures in theaters in England. It would comment you have incidental music performed during plays such as the so Henry the age of the play.
And as I mentioned either happened in between.
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Three dances from Henry the eighth.
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A collection of British dances that were composed.
<unk> hundred 92 by Edward German.
The first movie called Laurus Dan.
And this is an English folk dance executed by a group of dancers wearing bell pad on there.
The second movement, you're going to hear it called shepherds Dan.
And shippers, Dan is a lilting dance and six eight.
And you will hear a free floating melody over the drones the shepherds bagpipe.
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We hope you enjoy it.
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The dance is a ballroom dance originating from the eight hundreds in Argentina.
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<unk> body position and a breath deposits.
Great Horse Lee is a classic piano teacher and composer from the UK and has been involved in classical ballet for many years.
Also composes miniatures.
Miniatures excuse me for small ensembles. So we hope you enjoy tango.
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So this is Fermi community orchestra.
I hope you're enjoying the program so far.
<unk> optimized service Richardson for a fantastic quarter performance.
So great to have her here and they sounded wonderful.
Our next piece Danse macabre, but Tom Polen written by a French composer named Camille Pascal and I've written at $18 74.
Tom is there a kestrel piece designed to evoke the theme of our story a poem or work a visual alright musical ideas.
So I thought I'd use the palm by Henry catalysts as a basis for the teeth. The legend of death fiddling on Halloween night as skeletons dance on their grades you.
You can find the poem in your program. If you want to look at look at it and this piece you will hear how the orchestra represents the ideas and the palm listen for the zigzag zag of the violent the winter wind blowing, but dancing bones of the skeleton.
Over there.
And the Roosters CRO heralding the breakup Don at the end of the dance.
We are pleased to welcome our good friend and concert Master Kathy Covance.
The stage, playing with solo role of the Devil violin, Here's Danse macabre.
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[noise] before we play our last piece I wanted to thank you all again for joining us for this concert Tonight.
We can't do it without your support and without the support of so many if you look in the back cover of your program you will find our benefactors for this year, who we are very grateful for I, especially want to thank the <unk> United Methodist Church.
Pastor, Cynthia Anderson and the board of trustees for their generosity and walking welcoming our ensembles on Sunday evenings, and making us feel at home here.
We are so fortunate to have CJ and Rob Walter back running our livestream and audio Tonight, hi, everyone watching from home. Thank you for watching Thank you guys for your support in that now.
And I also want to thank a big thank you to our library and Rachel horrible who's in the audience Tonight for all of your help with all of our music.
Okay.
[noise] no for our final piece, we need a little audience participation.
How are you all in.
Alright, okay.
That's the margin that piece of it is traditionally played as an encore in Vienna and their new year's Eve celebration every year.
The audience customarily participated by clapping in time with the orchestra.
At certain points of the piece, so I need to do three things for me I need you to clap.
Thoughtfully.
Loudly.
Not at all.
Ill give you.
Great.
One is a little club and when is that okay.
Okay.
And that's your job so enjoy our last piece of that CE Mark. Thank you very much.
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Good evening My name is Dan to enhanced and I'm a member of the.
<unk>, United Methodist Church, and I'd like to welcome you to our sanctuary. This beautiful sanctuary was constructed in 18 87, it's a great place to work.
So a great place for our concert.
So we are very happy to welcome the Permian community Orchestra further firmly Pops concert.
So.
At this point.
Like to introduce Andrea.
Director who will.
Take it away.
Okay.
[noise]. Good evening, everyone. My name is Andrea Lufthansa in the music director of it for me community Orchestra.
Welcome you this evening to our Pops concert or in our last concert of the season.
A little bit about the farming community orchestra, it's made up of a bunch of a group of dedicated and supportive.
Adult musicians, who love to play explore and learn great orchestral works together for me key markets with mission has always been to provide the opportunity to learn and perform orchestral music and make that opportunity accessible to all adult musicians, whether they be students amateurs teachers retired professionals and in turn provide these free concert.
To you all.
We have grown to host three ensembles now, which you'll hear Tonight.
The farming community Orca surgical in the program.
Permit community strings, and the Fermi Flus stage right now.
Tonight, you will witness our orchestrate its largest forum at the demands as the demands of movie musical scores require large instrumentation there'll be some transitional time between these groups. So thank you in advance for your patience as we make those changes.
Now I present once again by popular demand are.
The permits to acquire.
[noise] there are many ranges of fluids beyond the standard our kestrel concert.
Which makes Macquarie arrangements, so popular and fun not only for the players but for the audience as well on stage Tonight, we have five different types of fleets at the very top we have the piccolo.
And then we have the regular concert Steve fluids.
But you would see in AR and AR and the orchestra, you also see piccolo too.
And then we have the alto flute that plays a little bit lower in pitch.
And then the base fluids.
And then finally.
Contrabass flu.
I'm a cellist so a lot of times growing up I'd be carrying around my big cello case and people would say to me don't you wish you played the flute.
And I said well.
Hello dwarfs in comparison to that gargantuan thing there that's such a cool sounding instrument I think you guys are really going to enjoy our program Tonight.
So without further Ado here at the firm.
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This is the farming community shrinks.
<unk> began the season as a fundamental training orchestra for adult Street musicians. Many of these mutations picked up playing instruments is a delta of return after a period of time, we congratulate them on a great first season of alerting and performing and they will also be joining the army orchestra later on for our plants plagued funk.
So Tonight I'm also proud very proud to welcome our assistant director Kathy <unk> to the podium to conduct the first two pieces on our program Kathy has been a great partner and dedicated educator and coach for the musicians in the Fermi strength. So please help me welcome Kathy come back into the <unk>.
[noise].
Participation.
That would be.
Linda.
Are there any kids out there that would be willing to help us out with a little audience participation anybody that wanted to be precaution as before.
Okay.
Carson is it doesn't have enough hands.
Did you all of the partners.
But so.
So we need some little AG carriers.
To be able to add to our next tea.
And beyond that.
So Andrew.
Korea.
So this next piece I'm, assuming it should be pretty familiar with everybody. This is from the peanuts.
So with all the different wonderful stuff that we grew up with this is Linus and Lucy. So if you remember that one at all it was a pretty good level.
Uh huh.
So Levi would you like to demonstrate how the kids need to play that.
Great.
Yeah.
Paul.
Oh, I guess, that's the basis of the shakeout part for lineups and Lucy is a series of notes throughout the whole piece.
This will be followed as holding your shaker at the highest point.
Pushing it forward one letting all of the beads shake and then rotating your hand in arc down to the second place, which would cause one and two and kind of like your phone the triangle pattern.
Facing forward.
So one and two and one and two and one and two and one and two.
Of course you'd be following the directors.
So whatever.
Whenever <unk> chicken.
Uh huh.
This is also coinciding with my.
So.
If you've never heard the sound of a high hat.
It sounds something like this.
So when you hear that sound you will be doing one motion so.
The piece it sounds like.
Yeah.
Or something along that kind of stuff.
That would follow the pattern that you would have to shake the shaker.
Thank you.
[noise] Alright, all my profession is out there you guys already.
Hey, Brad.
All right.
Yeah.
Yes.
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Oh Oh, okay.
Okay.
So if you have a shaker right now in your hand.
As long as you promise to keep it quiet for the rest of the concert.
You may keep it.
So enjoy it thank you very much and thanks for contributing to that piece that really made a big difference and a great great job.
Thank you Kathy.
Before we perform our final piece with the firm you strings I want to announce a change in our program.
Tonight, Deanne Appleton, who is listed as a sell with four Gabriel although it's quite ill and unfortunately will not be able to play with Us Tonight.
So we know she's watching from home and we send our well wishes and Mr. Tonight. So we.
We hope for a quick recovery.
Indiana place, we're very very fortunate to have.
An oboist come and joined today on last minute.
Her name is Gail sunken and she'll be playing with solid Tonight as well as joining the community Orchestra later on girls and accomplished oboist and jazz piano.
In the Chicago area, having played with many ensemble can we thank you very much for joining us so welcome Gail.
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This is the pharma community orchestra everybody.
[noise], we are definitely busting at the seams here.
And going strong this is our fourth season with the orchestra.
And we survived.
The breaking cobot of not being able to play in and we came back nicely strong we kept up with online Arkansas up you can imagine what that might be.
But it worked and we stayed together and we're just bigger and better than ever and we're very very happy to play this pop concert for you Tonight.
The first piece on the program blank blank blank by Leroy Anderson, you may not recognize the name, but I think youll recognize the tune it.
<unk> performed Tonight by the Fermi strings and the Fermi.
Army Orchestra strings.
And it's a pizzicato only piece, it's only it's buck.
I can see any bose and know Windsor bras or progression.
The remaining pieces are popular favorites that you probably are familiar with Broadway.
Broadway tunes from Phantom of the opera music from the movie Chronicles of Narnia, and Superman and the program concludes with the jazz influence orchestral tone poem and American in Paris by George Gershwin, which subsequently inspired the film and stage versions, but you may be.
Familiar with so we hope you enjoy the program. Thank you.
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