Q2 2024 Kulicke and Soffa Industries Inc Earnings Call
Operator: Greetings and welcome to the Kulicke and Soffa 2024 second quarter results and conference call. At this time, all participants are listening only. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations. Thank you, sir. You may begin. Thank you.
Greetings and welcome to the Kilotons. So the 'twenty 'twenty four second quarter results conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star zero on your.
Telephone keypad.
Joseph Elgindy: As a reminder, this conference is being recorded it is now my pleasure to introduce your host Joseph L. Senior director of Investor Relations. Thank you. Sir you may begin thank you welcome.
Joseph Elgindy: Thank you. Welcome, everyone, to Kulicke and Soffa's Fiscal Second Quarter 2024 Conference Call. Fusen Chen, President and Chief Executive Officer, and Lester Wong, Chief Financial Officer, are also joining us on today's call. Non-GAAP financial measures referenced today should be considered in addition to, not as a substitute for, or in isolation from, our GAAP financial information. GAAP to non-GAAP reconciliation tables are included within our latest earnings release and our earnings presentation, both of which are available at investor.kns.com along with prepared remarks for today's call.
Joseph Elgindy: Welcome everyone to cool gets off its fiscal second quarter 2024 conference call, Susan Chen President and Chief Executive Officer, and Lester Wong Chief Financial Officer are also joining on today's call.
Joseph Elgindy: non-GAAP financial measures referenced today should be considered in addition to not as a substitute for or in isolation from our GAAP financial information GAAP to non-GAAP reconciliation tables are included within our latest earnings release and our earnings presentation. Both are available at Investor Docker and S. Dot com along with prepared remarks for today's call.
Joseph Elgindy: In addition to historical statements, today's remarks will contain statements relating to future events and our future results. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that may cause our actual results and financial condition to differ materially from the statements made today. For a complete discussion of the risks associated with Kulicke and Soffa that could affect our future results and financial condition, please refer to our recent and upcoming SEC filings, specifically our most recently filed Form 10-K and the 8-K files yesterday. With that said, I would now like to turn the call over to Fusen Chen for the business overview. Please go ahead, Fusen.
Joseph Elgindy: In addition to historical statements today's remarks will contain statements relating to future events and our future results. These statements are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that may cause our actual results and financial condition to differ materially from the statements made today for a complete discussed.
Joseph Elgindy: The risks associated with cool can software that could affect our future results and financial condition. Please refer to our recent and upcoming SEC filings specifically, our most recently filed Form 10-K, and the 8-K filed yesterday with that said I would now like to turn the call over to Susan Chen for the business overview. Please go ahead Susan.
Fusen Ernie Chen: Good morning, everyone.
Fusen Ernie Chen: While certain markets, including LED, automotive, and the industry, continue to be a challenge in the near-term, we remain focused on expanding our market position and driving new and successful customer qualifications over the coming quarters in thermal compression, VFO, and advanced expanse. These expected successes, combined with a recovering core market and a significant focus on operational efficiency, will be beneficial to customers, employees, and investors over the coming years. Before discussing this quarter's results and outlook, I wanted to briefly discuss Project W and our overriding customer engagement strategy.
Fusen Ernie Chen: What else is in marketing with the automotive and the industrial continues to be a challenge in Utah we've.
Fusen Ernie Chen: We remain focused on expanding our market position and the driving new and sustainable customer qualification over the coming quarters, Yeah similar completion.
Fusen Ernie Chen: Oh and the best is pants.
Fusen Ernie Chen: This expected so associates combined with a recovery in coal market and a significant focus on operational efficiency will be beneficial to customers.
Fusen Ernie Chen: Please.
Fusen Ernie Chen: Investor over the coming years.
Fusen Ernie Chen: Before discussing this cool does it result in all look I won't get too what do you think he discussed plus with Bellevue and our overriding customer engagement strategy.
Fusen Ernie Chen: Since 2017, KNF has evolved by growing intimate customer engagement. This customer-focused growth strategy has been successful and has allowed us to take a share in the new market, as we expand our competencies. A few recent examples of this engagement approach include our effort to enter the advanced display market, enter the cold package optics market, expand our shares in leading-edge logic, and actively enable the next high-volume packaging format for D-Line. Our advanced dispense business is taking a similar customer-focused approach, which I will explain shortly.
Fusen Ernie Chen: Just probably 17 Chimera has evolved like growing internet customer engagement.
Fusen Ernie Chen: Customer focused growth strategy has been successful and that has allowed us to think that she is in new market.
So we can expand our comprehensive.
Fusen Ernie Chen: A few recent examples of this engagement approach.
Fusen Ernie Chen: Our efforts to enter the screen market and then of course take these upticks monkeys.
Expand always shifts in leading edge logic and the activity enabled next I bought in packaging format for DRAM.
Fusen Ernie Chen: At the most expensive business is taking a similar customer focused approach, which I will explain shortly.
Fusen Ernie Chen: While our intimate engagement strategy has provided new market access, share gain, and profitability, there will always be a potential risk that a project may be cancelled by the end customer, which unfortunately was the case for Project W. Industry challenges combined with medical factors likely played a role in our customers' decision to discontinue this program with its supply chain partners, including KNEX. Project-related assets, and the tool.
Fusen Ernie Chen: While our intimate engagement studies has whereby a new market access so again and the profitability.
Fusen Ernie Chen: There will always be a potential risk of the project may be canceled by the end customer, which I'm fortunate that he wasn't the case for project W.
Fusen Ernie Chen: Industry challenges you come by we make will likely play a role in our customers' decision to discontinue this program, which is our supply chain partners, including Kansas.
Fusen Ernie Chen: Project related.
Fusen Ernie Chen: Law and the finish goods, inventory, as well as the open purchase order with our in-vendor, which was accounted for in the second quarter's impairment charge, which has affected both GAAP and non-GAAP earnings. largely, related to the cancellation of Project W, we have restructured to remain lean and have reallocated resources to accelerate other critical business initiatives, including fulfilling a sizeable purchase order and broadening customer demand for memory, advanced dispensing, and advanced packaging solutions.
Fusen Ernie Chen: And the tool law and the finish with humans.
Fusen Ernie Chen: The inventory that's the way is the open purchase order with our Linda.
Linda well accounted for in the second quarters, the impairment charge, which affected both GAAP and non-GAAP only.
Fusen Ernie Chen: Now Judy.
Fusen Ernie Chen: He led to the cancellation Oprah project W. We have new structures to really remain lean and I have the resource to a theory olive critical business initiatives, including fulfilling our Si spoke coaches odor and the bothering customer demand for memory.
Fusen Ernie Chen: The best Defense and advanced packaging solution.
Fusen Ernie Chen: Restructuring and reallocation decisions are never taken lightly, although these actions were necessary to maintain a focused operational model. We continue to expect gradual market recovery through Fiscal 2024 with greater technology and capacity opportunities in Fiscal 2025.
Fusen Ernie Chen: Restructuring and they'll be occasion, excuse me and neighbor, taking liberty alone these actions when necessary to maintain our focus operational model.
Fusen Ernie Chen: We continue to expect gradual market recovery is true physical upon plentiful with a greater technology and the capacity opportunity physical points of 75.
Fusen Ernie Chen: We continue to anticipate demand improvement, led by General Semiconductor Carmine with a more resilient memory demand. For General Semiconductor, more vendor order activity is improving and supported by the utilization trend. Also, customer momentum continues as we broaden advanced packaging engagement. Since our second fiscal quarter of 2023, we have already experienced an over 50% increase in ball boundary revenue despite ongoing headwinds within the automotive, industrial, and the LED market. We continue to prepare for more robust demand in general semiconductor applications, as all the activities with high volume customers gradually accelerate.
Near term, we continue to anticipate making human data by general semi conductor or come up with a more use of memory demand.
Fusen Ernie Chen: Well, it's you know semiconductor ball.
Fusen Ernie Chen: On the all the activity is improving and that's supported by utilization trend also customer momentum continued as we broaden our advanced packaging engagements.
Fusen Ernie Chen: She is our second fiscal quarter 'twenty plenty of sleep, we have already experienced.
Fusen Ernie Chen: And over a 50% increase in ball Bonder, Libya is flat ongoing headwind, we didn't automotive industrial and the energy market.
Fusen Ernie Chen: We continue to prepare for a more robust demand in general in semiconductor applications.
Fusen Ernie Chen: The order activity with high volume customers were a jewelry at a serious.
Fusen Ernie Chen: Yes.
Fusen Ernie Chen: After market close yesterday, we announced a sizable purchase order of 1,000 rapid probe systems from a fast-growing assembly and test company, which were upgraded with our probe suite's response-based mounting and looping capabilities. Improving the operation rate combined with a high volume order provides us with an optimum on near-term general loss and conductive recovery. Next, demand for LED has been limited due to the low integration rate across our customer base.
Fusen Ernie Chen: After market close yesterday, we announced a sizable coaches older one seldon they probe system, a fast growing assembly and test company, which war.
With our full suite response base of Bulgaria, and the room cleaning capabilities.
Fusen Ernie Chen: Improving you've had these or they come back with a high volume order provides us with optimism.
Fusen Ernie Chen: Near term general lots hasn't caught up to a recovery.
Fusen Ernie Chen: Next even before it OLED has a demand limited due to low penetration rates across our customer base.
Fusen Ernie Chen: The automotive and industrial markets continue to face near-term headwinds, but based on utilization rates and customer feedback, we anticipate demand to stabilize with a broader recovery to begin over the coming quarters. Despite the current south-east, our current quarter's automotive revenue long-run, fiscal year 2024 today, is 33% above our most recent automotive and industrial truck long-run experience throughout fiscal year 2020. This fairly rapid increase in truck-to-truck performance is largely driven by broad and secure trends we are enabling.
Fusen Ernie Chen: The automotive and the industrial market continues to face near term headwinds alone based on utilization rate and the customer feedback.
Fusen Ernie Chen: Anticipate demand to stabilize with a broader recovery to begin over the coming quarters.
Fusen Ernie Chen: In spite of putting the companies all current quarter automotive revenue long day fiscal year 'twenty 'twenty four two this is a seriously.
Fusen Ernie Chen: About our most recent automotive and the industrial Trump long rate experience through all of fiscal year 2020.
Fusen Ernie Chen: Yes fairly rapidly increase in truck to truck performance is largely driven by broad and the secular trends. We are enabling these trends are driven by global electric vehicle sustainable energy and smart power distribution need which provide ongoing gross.
Fusen Ernie Chen: These trends are driven by global electric vehicles, sustainable energy, and smart power distribution needs, which provide ongoing growth opportunities. Finally, memory has sequentially reduced from a very strong order, largely due to customer mixed-gen. Demand for our memory solution has expanded significantly from the tough labor we experienced last fiscal year during the first fiscal half of 2020-2024. Our memory revenue has nearly doubled from our entire memory revenue in fiscal year 2023. We expect the math-across-memory application to continue to recover over the coming quarters.
Fusen Ernie Chen: Opportunity.
Fusen Ernie Chen: Finally, <unk> has sequentially reduced from a very strong quarter, largely due to customer mix change.
Fusen Ernie Chen: Oh memory solution has expanded significantly Rhonda Chauffer label, we experienced last fiscal year.
Fusen Ernie Chen: During the fourth.
Fusen Ernie Chen: Please go households, hungry hungry are plentiful.
Fusen Ernie Chen: Our neighbour 11, you have nearly doubled our entire member uranium in fiscal year 2023.
Fusen Ernie Chen: We expect the amount of course memory application to continue to recover over the coming quarters.
Fusen Ernie Chen: Looking ahead, our core business is anticipated to strengthen as the general semiconductor industry continues to improve, and we remain very focused on near-term execution. New Technology Wins in Memory, share again in Advanced Dispense, and the Brothering of our summer competition customer base. I would like to take a few minutes to explain each.
Speaker Change: Looking ahead.
Speaker Change: Our core business is anticipated to strengthen as a general semi conductor continue to improve and we remain very focused on near term execution.
Speaker Change: Okay got you win in memory.
Speaker Change: In advance of these patents and in a broad array of almost similar completion customer base I would like to take a few minutes to explain each.
Fusen Ernie Chen: First, within memory, we continue to actively qualify and develop vertical failover or VFO solutions, utilizing our wafer-label packaging system, which is expected to expand our memory market access over the coming years. While VFO memory solutions are still emerging, customer momentum is strong, and we expect they will transition into higher volume production next year. In addition to leading memory customers, we continue to actively support key vertical wire development with a leading IDM and Fabless company who are defending this new solution.
Speaker Change: Of course, we can memory, we continue to actually be quantified and you bet political saying Oh, it's all solution utilizing our wafer level packaging system, which is expected to expand all of them and what are your market access over the coming years.
Speaker Change: Why don't we F O memory solution austere.
Speaker Change: Emerging customer momentum is strong and we expect they will transition into high volume production next year.
Speaker Change: In addition to leading memory customers. We continue to actively support key political why don't you bring them in with the leading IDM and Fabless company.
Speaker Change: Who are depending on these new solutions.
Fusen Ernie Chen: The benefit of our unique vertical wire solution extends well beyond the memory market. Medical wire is culinary, moving into high volume production for shielding requirements, and is well positioned to provide a new cost-effective packaging solution for future high volume systems in packaging applications.
Speaker Change: The benefits of our unique vertical while so roofing extend well beyond the memory market.
Speaker Change: Do you go while it is currently.
Speaker Change: Moving into high volume production, but for sure. The open comment and that is a way of Parisian to provide a new cost if you're picking solution all future I've bought in system in package applications.
Fusen Ernie Chen: Our VFO team is currently supporting the development of a future stack connectivity application which can drive high volume adoption. Next, our advanced dispense business continues to gain momentum as we are aggressively demonstrating high-appreciation dispense opportunities in advanced packaging, battery assembly, and the display market. Broadening customer interest and the ongoing evaluation progress are driving momentum, and we expect to begin growing our market share in the near term. Our advanced dispense solutions are highly competitive due to their micro-dispensing capability, being equipped with self-compensation, in-line inspection, and excellent repeatability.
Speaker Change: Oh boy airports him he's cut him that he is supporting the development of future connectivity application, which can drive high volume adoption.
Speaker Change: Next all of the best Defense business continued to gain momentum as we are penetrating I appreciation the expense opportunity in advanced packaging.
Speaker Change: The assembly and the display market.
Speaker Change: Rather than cosmic injuries, and the ongoing evaluation progress.
Speaker Change: Driving momentum and we expect to begin growing our market share in the near term.
Speaker Change: Oh, you spent solution a highly competitive due to a deal Michael dispensing capability being equipped with sales compensation.
Speaker Change: Inspection.
Speaker Change: And the excellent repeatability.
Fusen Ernie Chen: Quantification win over the coming quarter will secure a foundation of advanced dispensed customers, which will support revenue growth in fiscal 2025 and beyond. Finally, we continue to gain momentum in Summer Compression Bounding, or TCB, which has expanded in revenue by nearly four times compared to the trading four quarters of demand over our fiscal 2021 results. As customer momentum continues to build, it is becoming clear that our TCV solution can broadly support and scale chip and heterogeneous integration.
Speaker Change: What are your potential win over the coming quarter, what secure a foundation of defense customers, which will support revenue growth in fiscal 'twenty to 'twenty, five and they'd be yep.
Speaker Change: Finally, we continue to gain momentum in somewhat competition bounty and old GCB, which has expanded in revenue by nearly four times comparing the trailing four quarters of demand over fiscal 2021 result.
Speaker Change: As customer momentum continuing to build it is becoming Korea not artificially solution can brother is support and the scale and the heterogeneous integration.
Fusen Ernie Chen: Furthermore, we continue to expect demand for our leading fluxless TCB solution to increase significantly in the future. We have already built a baseline of approximately $60 million in sales during fiscal year 2023 and currently have active new engagement with over 10 separate flux-based TCB opportunities supporting key IDM, OSET, and Fungi customers. We continue to receive multiple inquiries for additional TGV opportunities with other customers. This funnel of growing demand across a wide customer base serves as a testament that we are in the early stage of TCB growth. The need to efficiently create more transistor-dense packaging will only accelerate this market moment.
Speaker Change: We continue to expect demand for our leading Brocksmith PCB solution to increase significantly in the futures.
Speaker Change: We have already built a base of approximately $60 million of sales during fiscal year 2023, and the cut of that he has.
Speaker Change: If new engagement with over 10 separate separately Occidental PCB opportunities supporting the idea or was that in the foundry customers. We continue to do we shipped multiple in party for additional GCB opportunities with other customers.
Speaker Change: This funnel of growing demand across a wide customer base. So that's a testament that we are in the early stage of PCB grows.
Speaker Change: The need to efficiently more tranches to advanced packaging will only accelerate this market momentum.
Fusen Ernie Chen: Our flux-less PCB solutions are extremely well-positioned for the next wave of demand, and we remain committed to near-term execution. Upon near-term customer qualification success and healthy customer demand trajectory, we anticipate our dedicated advanced packaging solution, which includes free-chip mass reflow, TCB, and the wafer label packaging system, to approach $200 million in annual revenue by fiscal year 2025, although contingent upon near-term qualification and business execution.
Speaker Change: All fronts less PCB soldiering on extremely well position for the next wave of demand and that we remain committed to.
Speaker Change: Execution.
Speaker Change: Well, probably near term customer qualification process and healthy customer demand trajectory, we anticipate.
Speaker Change: But the banks picky and solution, which including free chip NASA lethal.
Speaker Change: TCP and the wafer level packaging system.
Speaker Change: Approach 200 million.
Speaker Change: Annual revenue by fiscal year 2025.
Speaker Change: Contingent upon you know some quantification and the business execution.
Fusen Ernie Chen: A cross-advanced packaging application is anticipated to further accelerate. Looking more near-term, new engagements for next-generation high bandwidth memory, or HBM, can potentially begin shipping as early as this calendar year. Also, our unique copper-to-copper capability has very strong customer momentum and could potentially delay higher volume production of hybrid bonding due to a more competitive cost of ownership. Currently, our Advanced Solutions team remains very focused on near-term customer engagement with the leading IDM, OSET, and Fungie customers.
Speaker Change: It goes across advanced packaging application is anticipated to further select.
Speaker Change: Looking more near term new engagement for next generation high they're always a memory or H b M can potentially begin shipping as early as it used to calendar year also all unique copper two couple of capability.
Speaker Change: So very strong customer momentum and that could potentially delay higher volume adoption of hybrid bonding you to a more competitive cost of ownership.
Speaker Change: Uh huh.
Speaker Change: All of the best solution team remains very focused on near term customer engagement with a leading IDM and foundry customers. This broad group of customers, you're quite cost effective process that support high bandwidth fine pitch interconnect and the stack die capabilities.
Fusen Ernie Chen: This broad group of customers requires a cost-effective process that supports high bandwidth, fine-pitched interconnect, and stack-dive capability. All of these fluxless TCP solutions are well-positioned to support high-volume copper-to-copper interconnects with a pitch from 35 to 5 micrometers. Our capability to kick from tray, tap, and reel, or wafer and bond to substrate, chip, or wafer is robust and expected to support the broad future market of thermal competition boundaries.
Speaker Change: Or do you see an influx of those PCB solution are well position to support high volume copper to copper interconnect with a pitch from 75 to find Michael.
Speaker Change: Oh capability to pick their own trade have embryo, all wafer and the bound to substrate.
Speaker Change: Oh wafer is a robust and expect it to support the broth future market of similar competition Bobby.
Fusen Ernie Chen: Today, our flux-less TCB solutions are best in class and have allowed us to be first to mass production through our engagement with a leading IDM. In parallel, we have also continued to take the shares with a leading onset as they begin to ramp 3D assembly for higher growth and a higher volume market such as mobile, sensing, and cold package uptake. We have made significant progress in recent years to expand our TCD shares across this initial base of IBM and Allstate customers, who we have built long-term relationships with.
Speaker Change: Today, Oh Fructed S. PCB solution best in class and have allowed us to be first to mass production.
Speaker Change: Our engagement with eating idea.
Speaker Change: In parallel we have also continued to take the shifts with the DDA all set as they begin to Bim three D Assembly for high growth and the highest volume market such as a mobile same thing and they couldnt take each upticks.
Speaker Change: We made significant progress over recent years to expand our Tc dishes.
Speaker Change: This initial base of IBM and the OSA cousins, who we have build a long term relationship.
Fusen Ernie Chen: Over the past few quarters, we have continued to allocate additional R&D resources towards specific boundary opportunities, which we anticipate can present a sizable portion of the future TCP marketplace. Today, our global TCB team is actively engaged to support future intercontinental needs through all of our customer engagements. We look forward to announcing additional qualification wins and the new partnership over the coming quarter. In conclusion, we continue to look forward to a brighter 2025.
Speaker Change: Over the past few quarters, we have continued to allocate additional R&D resources towards specific foundry opportunities, which we anticipate can present.
Speaker Change: A sizable portion of the future PCB market place.
Speaker Change: To date, all wearable GCB team is actively engaged to support a future in the context need so all of our customer engagements. We look forward to announcing additional qualification win and a new partnership over the coming quarters.
Speaker Change: In closing we continue to look forward to a bright to pumping 25.
Fusen Ernie Chen: We have an intense focus on enhancing operational efficiency, are preparing for a core market recovery, and continuing to support key technology transitions with our growing memory, advanced dispense, and advanced packaging opportunities. We look forward to sharing our near-term progress, which will solidify our foundation for future growth.
Speaker Change: We have an intense focus on enhancing operational efficiencies.
Speaker Change: Preparing for a coal market recovery and are continuing to support key technology transitions with our growing memory.
Speaker Change: <unk> expense in the advanced packaging opportunity.
Speaker Change: We look forward to sharing over the near term programs, which will solidify our foundation for future growth.
Speaker Change: I will now turn the call over to list for the financial update.
List: Mr <unk>.
Lester A. Wong: Thank you, Fusen. My remarks today will refer to GAP results on the last note. While there continue to be headwinds across specific end markets related to macroeconomic and industry conditions, it continues to remain an exciting time for the company. As Fusen mentioned, we are pleased to see improving order activity with higher volume customers and anticipate additional groups of customers to begin ramping for both capacity and technology needs over the near term.
Speaker Change: Thank you.
List: My remarks today will refer to GAAP results unless noted.
Speaker Change: There continues to be headwinds across specific end markets related to macro economic and industry conditions. It continues to remain an exciting time for the company.
Speaker Change: As Susan mentioned, we are pleased to see improving order activity with higher volume customers and anticipate additional groups of customers to begin ramping for both capacity and technology needs over the near term.
Lester A. Wong: During the March quarter, we generated $172.1 million of revenue and a 9.6% gross margin. Without this quarter's unique charges, gross margin would have been similar to the prior quarter. During this recent quarter, we booked pre-tax charges, including impairments, in the amount of $105.5 million. As you recall, we announced on March 11th that the company anticipated pre-tax charges, including impairments relating to the cancellation of Project W, to be between the low estimate of $110 million and a high estimate of $130 million.
Speaker Change: During the March quarter, we generated $172 $1 million of revenue and a nine 6% gross margin.
Speaker Change: Without this quarters unique charges gross margin would have been similar to the prior quarter.
Speaker Change: During this recent quarter, we booked pretax charges, including impairment in the amount of $105 $5 million.
Speaker Change: As you recall, we announced in March 11th that the company has anticipated pre tax charges, including impairment relating to the cancellation of project W to be between the low estimate of $110 million and a high estimate of $130 million.
Lester A. Wong: By the end of fiscal year 2024, we expect our total charges to come in below our high estimate of $130 million. In addition to reallocating key R&D members to in-demand projects, we prudently reduced resources which have directly and indirectly supported project dumping.
Speaker Change: By the end of fiscal year 'twenty 'twenty four we expect our total charges to come in at the low or high estimate of $130 million.
Speaker Change: In addition to reallocating key R&D members to in demand projects, we prudently reduce resources, which have directly and indirectly supported project W.
Lester A. Wong: We booked GAAP tax expenses of $6.4 million for the March quarter, which included tax items related to unique events during the quarter. We continue to anticipate an effective tax rate above 20% through the remainder of fiscal year 2024. Our repurchase program remains opportunistic, and we have again increased our repurchase activity sequentially. During the March quarter, we booked $37.3 million of open market repurchase activity, which represents a sequential increase of nearly 40% over the December quarter.
Speaker Change: We booked GAAP tax expenses of $6 4 million for the March quarter, which included tax items related to unique events during the quarter.
Speaker Change: We continue to anticipate an effective tax rate above 20% through the remainder of fiscal year 2024.
Speaker Change: Our repurchase program remain opportunistic and we have again increased our repurchase activity sequentially.
Speaker Change: During the March quarter, we booked $37 $3 million of open market repurchases activity, which represent a sequential increase of nearly 40% over the December quarter.
Lester A. Wong: Although gradual, recent order activity increases expectations of broader general semiconductor end market growth. We continue to anticipate near-term headwinds within the automotive and power semiconductor end markets and also anticipate approximately $15 million of lost revenue relating to the cancellation of Project W in the second fiscal quarter. Looking into the June quarter, we expect revenue of approximately $180 million, plus or minus $10 million, with gross margins of 47%. Non-GAAP operating expenses are anticipated to be $72 million, plus or minus 2%, which includes additional wind-down expenses of approximately $2.5 million.
Speaker Change: Although gradual recent order activity increases expectations, a broader general semiconductor end market growth.
Speaker Change: We continue to anticipate near term headwinds within the automotive and power semiconductor end markets and also anticipate approximately $15 million of lost revenue relating to the cancellation of project W. In the second fiscal half.
Speaker Change: Looking into the June quarter, we expect revenue of approximately $180 million, plus or minus $10 million with gross margins of 47%.
non-GAAP operating expenses are anticipated to be $72 million, plus or minus 2%, which includes additional wind down expenses of approximately $2 $5 million.
Lester A. Wong: Collectively, for the June quarter, we expect GAAP EPS of $0.17 per share and non-GAAP EPS of $0.30 per share. Over the coming quarters, we look forward to providing additional updates as we reach new milestones which will help build a foundation for memory, dispense, and thermal conversion opportunities over the coming year. Operator, please open the call for questions.
Speaker Change: Collectively for the June quarter, we expect GAAP EPS of <unk> 17 per share and non-GAAP EPS of <unk> 30 per share.
Speaker Change: Over the coming quarters, we look forward to providing additional updates as we reach new milestones, which will help build a foundation in memory dispense and thermo compression opportunities over the coming years.
Speaker Change: This concludes our prepared comments operator, please open the call for questions.
Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question... You may press star 2 if you would like to remove your question. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we poll for questions. Our first question comes from Krish Sankar with TD Cowen. Please proceed with your question.
Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Krish Sankar: Thanks for taking my question. I had two of them.
Speaker Change: You May press star two if he would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
Speaker Change: Our first question comes from Krish Shankar with PD Cowen. Please proceed with your question.
Krish Sankar: First one, on your general semi-core wirebonder business, it looks like that's kind of bouncing off the bottom. Fusen, do you think that this is a cyclical recovery for the wirebonder business, i.e., utilization rates are going up for OSATs and you're beginning to see true end-demand pull-through, or is this more bouncing off the bottom until visibility gets better?
Krish Sankar: Thanks for taking my question I feel of them first one on your general semi core wire Bonder business.
Krish Sankar: It looks like that's kind of bouncing off the bottom Umm Susan do you think that.
Krish Sankar: Is this a cyclical recovery for the wire bonder business, our utilization rates are going up for all sites and you're beginning to see true end demand pull through or is this more of the bouncing off the bottom until when somebody gets better.
Fusen Ernie Chen: Well, Krish, I believe, in general, the recovery was not strong enough. You know, I explained it last quarter.
Krish Sankar: Well.
Krish Sankar: I.
Fusen Ernie Chen: I believe in general the REIT.
Fusen Ernie Chen: Okay.
Fusen Ernie Chen: Was not strong enough.
Fusen Ernie Chen: When do you last quarter.
Fusen Ernie Chen: <unk> automotive semi.
Fusen Ernie Chen: Automotive Power Semi and LOD was the center of stubbornness when we had General Semiconductor Recovery, right? But even with this, actually, our second quarter was mitigated by stronger, you know, improvement. In fact, Bolt-Wanderer actually increased in revenue by 55% in Q2 of 24, versus 23.
Fusen Ernie Chen: And it wasn't center of stopping these when.
Fusen Ernie Chen: When you have a copy of a recovery right.
Fusen Ernie Chen: Even with these actually are second quarter mitigated by a stronger you know.
Fusen Ernie Chen: The implement they belong to us increased revenue by 55%.
Fusen Ernie Chen: Plentiful.
Fusen Ernie Chen: Both of them are.
Fusen Ernie Chen: Plenty of Citi.
Fusen Ernie Chen: So, uh... Going to our Q3, even cellosemic continues to go up, but the LED and the polysemic also, you know, also incrementally get weaker. So what I'm trying to say is that I think this industry probably needs a little bit more, more in the recovery. And even if we have a general semiconductor, you know, recovery, we also have a headwind, you know, auto, that's what I'm trying to say. As a result, you know, actually part of that, they actually cancel together, right?
So.
Fusen Ernie Chen: Hello.
Fusen Ernie Chen: Accused to be.
Fusen Ernie Chen: He then can also continue to go up.
Fusen Ernie Chen: But it'll.
Fusen Ernie Chen: And the policy I mean, you know us.
Speaker Change: Oh, sorry.
Speaker Change: In incrementally also get weaker.
Speaker Change: So what I was trying to say is I think at the end.
Does she.
Speaker Change: I, probably need a little bit.
Speaker Change: More bolt ons or recovery and.
Speaker Change: You bet, we have Jonathan conductor.
Speaker Change: We also have a headwind at all and that's why I sort of say that's it.
Speaker Change: You know actually part of that they actually cancel together, but what I'm trying to say is I think a 25.
Fusen Ernie Chen: But what I'm trying to say is I think 2025 will be a better year for us. You know, if we see some recovery in PC, phone, and car, then this should be very easy, you know, to add on in a much bigger way. So I don't know if I answered your questions. I think recovery is on the way, but when we have increased in the general semi, we also see weakening in the auto. That was the reason I think it was very slow.
Speaker Change: Our beta yield for us.
Speaker Change: If we see some recovery in.
Speaker Change: Awful and auto.
Speaker Change: This should be very easy you know two two.
Speaker Change: In a much bigger way right. So I don't know if I answered your questions I think it'd be a couple of years.
Speaker Change: On the way, but we have an increase in the <unk>.
Speaker Change: We also see the weaken.
Speaker Change: Or what's the reason I think.
Speaker Change: You're supposed to be slower, but I was looking for what we expect.
Fusen Ernie Chen: But looking forward, we expect the recovery to be more broader and add PC, phone, and auto. And, you know, at this moment, even with a stronger board on the... 55% of public trust, but that's only... 40% of FY24 revenue compared to the peak. So I think our recovery still has a long way to go. And probably this industry needs a little bit broader recovery.
Speaker Change: The recovery will be.
Speaker Change: More product.
Speaker Change: In the RPC for auto and you know the discipline.
Speaker Change: Either we have a stronger a ball bonder.
Speaker Change: That puts us above the trough.
Speaker Change: Although still only.
Speaker Change: 40% of FY.
Speaker Change: Slide 24, maybe new commentary compared them to pick.
Speaker Change: Oh recoveries like adult.
Speaker Change: Probably these industrial neither a debate.
Speaker Change: Recoveries.
Krish Sankar: One other quick follow-up, can you give us an update on your TCB qualification at the Taiwan Foundry? I thought the qual was expected to be done around this time, where the end customer is moving from hybrid bonding to TCB. Can you give us an update there?
Speaker Change: Got it Okay and then one other quick follow up.
Speaker Change: Can you give us an update on your PCB qualification of the Taiwan Foundry I thought did you switch the quality is expected to be done around this time, where they.
Speaker Change: And customers going from hybrid bonding to D. C. B can you give us an update there.
Fusen Ernie Chen: Okay, Krish, let me first tell you, I think the... The Hybrid Mounting and the TCB actually coexist in this market, right? So what I said, okay, I can tell you this, the foundry is one of several priority engagements for us at this moment, and we have actually engagement and qualification for multiple applications with our new fluxless technology there, so it's not only like a single project. As I mentioned, we are currently the first and the only flux-less technology provider in mass production for the whole industry.
Speaker Change: Okay I appreciate that meet our profile.
Speaker Change: Thank God.
Speaker Change: Uh huh.
Speaker Change: The hybrid and the PCB extra need their Cui.
Speaker Change: Market right. So oh, Okay I can tell you this.
Speaker Change: He is one of our several of our.
Speaker Change: I wanted to engage them and for us at this moment.
Speaker Change: And we have excellent engagement and the qualification for multiple application with our new frosted ice technology right.
Speaker Change: So it's not only that.
Speaker Change: A single project.
Speaker Change: As I mentioned, we are.
Speaker Change: Currently the first and only factor that's technology provider in the mass production for the whole industry.
Fusen Ernie Chen: And the advanced technology process in fungi is already, and is always relevant. And the production of this new advanced technology for production is intended for CY25. And we are in early discussions for shipment to begin in the first half of CY25. So we expect to reach a new short-term milestone and give you an update this evening or prior to our next call. So I'm trying to tell you, we feel like the progress is good, but you know, the qualification in the foundry really takes a very, very long time. Let me give you an example.
Speaker Change: And the best technology process in the foundry.
Speaker Change: OLED is always a very lengthy and.
Speaker Change: And the production is a new advanced technology. You know production is intended for <unk> 25, and we are in early discussions for shipments to begin in the first half of US you've got 25 right. So we expect to reach you.
Speaker Change: A short time.
Speaker Change: And to give you a bit.
Speaker Change: All right.
Speaker Change: Our next call, but that's why it's hard to tell you I think we feel like our progress is good but and partly because you can.
Speaker Change: We take a very they do let's see let me give you example.
Fusen Ernie Chen: We anticipate this funding relationship to progress similarly to our engagement on the IDM side. We began to engage in 2021 and then began to actually take the shares 18 months later, right? So, you know, quantification can take a little bit longer. And this is the TCB application, and TCB actually is increasing importance at the beginning. And we have a very good presence in OSET, as well as IBM. And we do expect it, you know; it's just a matter of time. Since we have multiple projects, we will grow our shares in Foundry in the coming quarters.
We anticipate.
Speaker Change: This <unk>.
Speaker Change: Relationship.
Speaker Change: She felt you our engagement on the IBM side.
Speaker Change: The game to engage in 2020 one.
Speaker Change: And it became too actually.
Speaker Change: It just shows 18 months of data right. So.
Speaker Change: Quiet because you can take out a bit longer and D. C is a teacher application and tea actually is the increasing importance in the game and we have a very good operations in Oh said.
Speaker Change: As well as IBM and we do expect you know Oh, it's just a matter of time seem to have multiple projects, we will grow our shifts in Oh Gee.
Speaker Change: Cortes.
Fusen Ernie Chen: So, thank you very much, Fusen Chen.
Speaker Change: Got it thank you very much for the thing.
Speaker Change: Okay.
Speaker Change: Yeah.
David Duley: Our next question comes from Dave Duley with Steelhead Securities. Please proceed with your question.
Speaker Change: Our next question comes from David Kelley with Steelhead Securities. Please proceed with your question.
David Duley: Good evening, thanks for taking my question. I also have a follow-up question on thermal compression bonding. I guess one of your competitors had a conference call a few days ago talking about how they thought that all the memory guys were going to pursue kind of a dual strategy with both thermal compression bonding and hybrid bonding. And I think they implied that thermal compression bonding would be the technology of choice for HBM-3 and HBM-4.
David Kelley: Good evening. Thanks for taking my question I also have a follow up on thermal compression bonding I guess one of your competitors had a conference call a few days ago talking about how they thought that.
David Kelley: All the memory guys, we're going to pursue kind of a dual strategy with both thermal compression bonding in hybrid bonding.
David Kelley: And I think they implied that thermal compression bonding would be the kind of a technology of choice for H B M. Three an H P. M. Four I'm just wondering.
David Duley: I'm just wondering where we are as far as working with the memory guys on thermal compression bonding, and do you see TCB as the near-term solution for stacking these memory dies, or will they continue to use the current technology? Thanks.
David Kelley: Where we are at as far as working with the memory guys with thermal compression bonding and do you see T. C. B S. The near term solution first for stacking. These top memory die or will they continue to use the current technology.
Fusen Ernie Chen: Okay, so we actually believe, you know, TCB right now is a production tool, and next generation will still be TCB. One reason, I think, is capability. The other reason is really the cost.
David Kelley: Okay. So we actually believe our T. C. B you know right now is a production tool and next generation it will still be T D.
David Kelley: No reason I think is a capability yellow reason isn't really low cost.
Fusen Ernie Chen: We are engaging the next generation of HBM, and our, you know, working together system, you know, probably, potentially will be shipped by the end of this year. I think we also have another exciting project we call VFO. This project can physically reduce the form factor of a memory package by 40% and also increase the I.O. as well as improve electrical performance. The first production is actually intended for low-power DDR, but one of our memory customers also has a roadmap for HBM, but it will not be for the next generation HBM, but actually, one of our customers has the potential to be an HBM supplier.
David Kelley: We are engaging a next generation off of it you'd be in and out.
Speaker Change: Oh, you know.
Speaker Change: Working to get a system, you know probably potentially will be shipped by end of.
Speaker Change: Ah, Yes, you can say.
Speaker Change: I think we also have another exciting you know.
Speaker Change: Our budget, we called V F O.
Speaker Change: This is a project actually 10 physically reviews.
Two of them, namely package by 40% and also increase the I O. That's what I say.
Speaker Change: Actual performance.
Speaker Change: The first production actually used the intended Oh, you know no part D D. All but one over a memory customer also have another one that you know for ESPN, but will not be for the next generation of it should be yes, but actually one that one customer has a potential to be at.
Fusen Ernie Chen: So we actually work on both ways. TCB, we actually focus on heterogeneous integration and TLAB. This is for advanced logic, but for memory, we actually have VFO. Actually, both of our projects will increase our potential revenue. So to answer your question, I think TCB is the focus, and we believe TCB is used, is simple, and capable, and we believe the current generation and next generation of HBM is going to be
Speaker Change: It should be and so we actually are.
Speaker Change: The way.
Speaker Change: T G B no we actually focus on you know a heterogeneous integration and should have a decent for a bunch of logic.
For the memory actually we had thought before actually both overall project will increase our potential revenue.
Speaker Change: So to answer your question I think what you should be the book up and we'd be give a TCE of ease of use.
Speaker Change: He is a simple and a capable and we believe our current generation and next generation of H B M. He's going to be T V.
David Duley: Okay, great. And my second question has to do with the core business. You know, you announced a thousand unit order for a new wire bonder. I'm assuming this is the first big order that you've received. Would it be fair to assume, you know, usually when you get one big order, you start to collect other large orders from the other OSATs or IDMs because they all kind of tend to order at the same time? Is that the assumption that we should start to make here, that you're starting to roll up these big orders on a more consistent basis? Well, Dave, uh, Lester...
Speaker Change: Okay great.
Speaker Change: My second question has to do with the core business.
Speaker Change: You know you announced a thousand unit order I guess for for.
Speaker Change:
Speaker Change: The wire Bonder I'm, assuming this is the first big order that you've received.
Speaker Change: Would it be fair to assume you know usually when you get one big order you start to collect other large order from the other oh sats or ibm's, because they all kind of tend to order at the same time is that the assumption that we should start to start to make here is that you're starting to roll up these big orders on a more consistent basis.
Lester A. Wong: Well, Dave, it's Lester. We have definitely seen, over the last couple of months, gradually improving order requests as well as customer inquiries, RFQs. The POs are starting to come in, as we indicated, this one big PO is starting to come in. We do see the utilization rates are also creeping up, so that also is an indicator of higher volume purchases. And even in the weaker end markets, we are starting to get some discussions with customers about their sort of future demand. So, yeah, I would say that we do believe that, as Fusen said earlier, the second half, we bet on the first half, but definitely early FY25, that's when the ramp probably should kick off.
Speaker Change: Well, Dave I was last week.
Speaker Change: I've definitely seen over the last couple of months. You know are you know gradually improving are you know order order with class as well as customer inquiries are accused the appeals are assigned to come as we indicated this one big T O is starting to come in.
Speaker Change: We do see the utilization rates also creeping up so that also is an indicator of a high volume purchases.
Speaker Change: And even in the weaker end markets, we are starting to get some discussion with customers about their sort of future demand. So yeah, I would say that we do believe that.
Speaker Change: So as I said earlier, the second half we've been in the first half, but definitely a early FY 'twenty five that's when the ramp probably should kick off.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: I think.
Thomas Robert Diffely: Our next question comes from Tom Dispe with D.A. Davidson. Please proceed with your question.
Speaker Change: Our next question comes from Tom just sticking with D. A Davidson. Please proceed with your question.
Thomas Robert Diffely: Yes, I appreciate the chance to ask a question here. Fusen, on the memory side, nice explanation of the vertical fan-out and the thermal compression bonder. Curious though, are those all just focused on the DRAM market, because historically, you've been stronger on the flash side or the NAND side? So curious if these technologies are looking at both memory types or just DRAM.
Tom: Yes, I appreciate the chance to ask question here Fusin on the memory side, a nice explanation of the vertical fan out.
Tom: And the thermo compression Bonder curious, though are those all just focused on the DRAM market because historically you've been stronger on the flash side or the NAND side. Just curious if these technologies are looking at both memory types or just DRAM.
Fusen Ernie Chen: Actually, thank you for the question, Tom. At this moment, the memory market is recovering. At this moment, we believe NAND plays a little bit stronger role. But to go back to your question, this is a vertical thing now.
Speaker Change: Actually Oh, thank you for the question Tom.
Speaker Change: At this moment a memory market is a is a.
Speaker Change: Recovering and there isn't room, when we'd be deep on them a little bit stronger law.
Speaker Change: But go back to a question you know this is a political thing though we.
Thomas Robert Diffely: We are working with all the memory customers. This is very exciting; all the memory customers. And behind that, actually, is a bigger IBM company. We actually have DRAM with all the memory customers, but we also have one NAND company working with us for the vertical panel. So to answer your questions, this vertical panel, we believe just at the initial stage, starting with low power DDR and even NAND, I think it's getting started on the development. In the future, it's going to be applicable for other applications, not only memory. So I hope I have answered your question.
Speaker Change: We are working with all of the memory customers. This is a very exciting all the memory customer and behind that actually is a big idea of a company.
Speaker Change: We actually have.
Speaker Change: Ah the DRAM with all the memory customers, but we also have a one ne company working with us for the vertical panel right. So to answer your questions. There's a political thing, though what we believed at the initial stage I'll start with a low power T D R and ebay.
Speaker Change: I think it's I guess started you know for the development.
Speaker Change: Future as you know.
Speaker Change: He is going to be applicable for the application not only.
Speaker Change: Memory, only so I hope I answered your question.
Thomas Robert Diffely: A follow-up on the display side, first, how fungible is the team going from display to TCB and dispense? And then, with the exit of Project W, what is your outlook on display for your other sets of tools?
Speaker Change: Perfect and then a follow up on the display side I guess two part question here first is how fungible are the is the team going from display to T. C. B in defense and then with the exit of project W. Are what is your outlook for display for your other sets of tools.
Fusen Ernie Chen: Okay, so let me answer your second question. I think, you know, the microLED V-speed is somewhat, you know, unclear due to, you know, the project cancellation, but the impact on the industry is actually really there. So, microLED we do believe is a setback for the whole industry for a few years. I'm not sure, two years, three years.
Speaker Change: Okay. So let me answer your second question is I think you know the micro Leds with speed.
Speaker Change: What you know in Korea due to you know the project cancellation, the invigorate industrial actually it used to be there. So Michael as you know we do believe it's a setback for the whole industry you know for a few years not sure two years three years.
Speaker Change: But despite change Oh Dear Oh.
Fusen Ernie Chen: But despite the change in microLED, a high-speed pick-and-place dye transfer system is still needed for the mini-LED application, and this will still be a good opportunity for our Luminex. And at this moment, actually, we are still targeting smaller die size, mini-LED, for direct emissive large format display with a high volume opportunity for our Luminex in the second half of CY25.
Speaker Change: High speed pick and place a transport system is.
Speaker Change: You'll need it you know a full Oh D in application and this would be still good opportunity for a roomy next and there is a woman actually we are still targeting smaller die size media L. D fourth direct initiative large format displays with a high bar.
Speaker Change: Opportunity for Illumina X in a SEC.
Speaker Change: And half of what she away 25, right. So the project is ongoing but in terms of people are actually you know are really dependent on the capability of our people right. You know either project a cancel for sure impact some other people, but for some people if we can actually.
Thomas Robert Diffely: So the project is ongoing. But in terms of people, actually, it really depends on the capability of people, right? If the project is cancelled, for sure, it impacts some people. But for some people, if we can actually continue to allow them to contribute to the company, I think a mechanical engineer is a mechanical engineer. So we do keep a big part of the people, and it's a useful project for the future. Great. No, it's very helpful. I appreciate your time today.
Speaker Change: You know a E. You know continue for them to contribute in the company I think a mechanical engineer isn't mechanical engineers. So we do also keep you know a big part of all the people and are in the useful project you know for the futures.
Thomas Robert Diffely: Great, that's very helpful. I appreciate your time today.
Speaker Change: Great. That's very helpful. I appreciate your time today.
Speaker Change: Thank you.
Operator: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. Our next question comes from Ross Cole with Needham & Co. Please proceed with your question.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Our next question comes from Ross <unk> with Needham <unk> Co. Please proceed with your question.
Ross Cole: I thank you for taking my call on behalf of Charles Shih. So my question is, can you describe the significance of the 1,000 system order from this fast-growing assembly and test customer? What kind of ASP uplift should we be thinking about relative to your more standard ball blunder systems? Thank you.
Ross: Alright, Thank you for taking my call on behalf of Charles She.
Ross: So my question is can you describe the significance of that 1000 system order from this fast growing assembly and test customer what kind of a S. P. Uplift should we be thinking about relative to your more standard ball Bonder systems. Thank you.
Lester A. Wong: Well, Ross, I guess this is one of our more advanced ball bonder systems. It's a China-based customer. Again, it's about a thousand machine order. And again, it serves mostly general semi-applications, consumers, smartphones, and PCs. Again, this is some of our leading technology. And again, the customer not only bought a significant amount of new bonders, but they also upgraded their existing bonders with our new ProSuite, which is our advanced bonding looping software.
Speaker Change: Well Ross.
Speaker Change: Ross I guess this is one of our more events.
Speaker Change: Bob on the system, it's a China based customer again, it's about thousand machine order.
Ross: And against served mostly the general semi applications consumer smartphones P. C. Again. This is some of our most leading technology and again the customer not only bought a second on the amount of new bonds. They also upgrade it there.
Ross: Our existing bond with a new pro suite, which is our advanced bonding looping software.
Ross Cole: Great, thank you. And then could I ask a second question as well? What was the backlog like exiting the March quarter? Can you provide some directional color if you don't want to quantify it? Sure, so I think the book to build for, uh...
Speaker Change: Great. Thank you and then could I ask a second question as well what was the backlog like exiting the March quarter can you provide some directional color. If you don't want to quantify it.
Lester A. Wong: Sure. So I think the book to bill for the quarter was approximately about one, which is pretty much its normalized level other than when you're in a ramp or in a trough cycle. So we have seen bookings improve. Backlog has come down, as we said, as we burned through some of the orders that we received during the ramp. So I think it's much more at a normalized level now, similar to our lead times, which are about 8 to 12 weeks for Ball Bonder and about 12 to 16 weeks for Wedge.
Speaker Change: Sure. So I think the book to Bill for the quarter was a process about one which has a pretty much its the normalize level out other than when you're in a ramp or in a trough cycle. So we have seen our bookings our.
Speaker Change: Improved backlog has come down as we said as we burn down some of the orders that was that.
Speaker Change: And that we received during a.
Speaker Change: The ramp so I think it's much more at a normalized level now similar to our lead times, which is about eight to 12 weeks of ball Bonder and about 12 to 16 four wedge bonder.
Speaker Change: Great. Thank you.
Speaker Change: Thanks Al.
Operator: There are no further questions at this time. I would now like to turn the floor back over to Joe Elgindy for closing comments. Thank you, Maria, and thank you all for joining today's call.
Speaker Change: There are no further questions at this time I would now like to turn the floor back over there Joe.
Speaker Change: Closing comments.
Joseph Elgindy: Thank you, Maria, and thank you all for joining today's call. Over the coming quarter, we'll be presenting at conferences in Minneapolis, New York, and San Francisco.
Joe: Thank you Maria and thank you all for joining today's call over the coming quarter will be presenting at conferences in Minneapolis, New York and San Francisco.
Joseph Elgindy: As always, please feel free to follow up directly with any additional questions. This concludes today's call. Have a great day, everyone.
Operator: [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??
Speaker Change: As always please feel free to follow up directly with any additional questions. This concludes today's call have a great day everyone.
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Tom Diffely: Mhm.
Fusen Ernie Chen: Okay.