Q2 2024 ACM Research Inc Earnings Call
Speaker Change: Good day, ladies and gentlemen. Thank you for standing by and welcome to the ACM Research Fiscal Second Quarter 2024 Earnings Conference Call. Currently, all participants are in the listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.
Unknown Attendee: Currently, all participants are in a listenly mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call.
Operator: As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I'll turn the call over to Mr. Steven Pelayo, Managing Director of the Blue Shirt Group. Mr. Pelayo, please go ahead.
Unknown Attendee: If you have any objections, you may disconnect at this time.
Speaker Change: As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.
Steven Pelayo: Now I'll turn the call over to Mr. Steven Pelayo, Managing Director of the Blue Shack Group. Mr. Pelayo, please go ahead.
Speaker Change: Now I'll turn the call over to Mr. Steven Pelayo, Managing Director of the Blue Shirt Group. Mr. Pelayo, please go ahead.
Steven Pelayo: Thank you, Desmond.
Steven Pelayo: Good day, everyone. Thank you for joining us to discuss second quarter of 2024 results, which we released before the US market open today. The release is available on our website as well as from newswire services. There is also a supplemental slide deck posted to the investor section of our website that we will reference during our prepared remarks.
Steven Pelayo: Thank you, Desmond. Good day, everyone. Thank you for joining us to discuss second quarter of 2024 results, which we released before the U.S. market opened today. The release is available on our website as well as from Newswire Services.
Speaker Change: There is also a supplemental slide deck posted to the investor section of our website that we will reference during our prepared remarks. On the call with me today are our CEO , David Wong, our CFO , Mark McKechnie, and Lisa Fang, our CFO of our operating subsidiary, ACM Shanghai.
Steven Pelayo: On the call with me today are our CEO, David Wong, our CFO, Mark McKechnie, and Lisa Fang, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under the risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission.
Speaker Change: Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that
Speaker Change: might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainty that could cause actual results to differ materially. Those risks are described under...
Speaker Change: the risk factors and elsewhere in ACM's filings with the
Steven Pelayo: Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain of these financial results that we provide on this call will be on a non-GAAP basis, which exclude stock-based compensation and an unrealized gain or loss on short-term investment.
Speaker Change: Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements.
Speaker Change: Certain of these financial results that we provide on this call will be on a non-gap basis, which excludes stock-based compensation and an unrealized gain or loss on short-term investments.
Steven Pelayo: For our gap results and a reconciliation between gap and non-gap amounts, you should refer to our earnings release, which is posted on the IR section of our website.
Speaker Change: For our GAAP results and a reconciliation between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slide 12. Let me now turn the call over to David Wong, who will begin with slide 3. David?
David Wong: Let me now turn the call over to Dave Wong, who will begin with slide three, David. Thanks, Stephen. Hello, everyone, and welcome to ACM Research, 2nd quarter, 2024, early in conference call. Please turn to slide three. For the 2nd quarter, revenue was $200.25 million, upper 40%. The市men were $200.3 million, upper 32%. Profitability was good, with the gross margin of 48.2% and operating margin of 25.6%. And we ended the quarter with approximately 367 million of cash and time deposit, with a positive cash flow from operation for the quarter. Revenue for the first half of the year was $350.7 million, upper 62%.
Steven Pelayo: Thanks, Steven. Hello, everyone, and welcome to the ACM Research Second Quarter 2024 Early Conference Call. Please turn to slide 3.
David Wong: Thanks, Steven. Hello, everyone, and welcome to ACM Research, second quarter, 2024, Earlene Conference Call. Please turn to slide three.
Steven Pelayo: For the second quarter, revenue was $202.5 million, upper 40%. Shipments were $203 million, upper 32%. Profitability was good, with a gross margin of 48.2% and operating margin of 25.6%. And we ended the quarter with approximately $367 million in cash and time deposits with a positive cash flow from operations for the quarter.
David Wong: For the second quarter, revenue was $202.5 million.
Speaker Change: upper 40 percent. Shipments were $203 million, upper 32 percent. Profitability was good, with a gross margin of 48.2 percent and operating margin of 25.6 percent.
Speaker Change: And we ended the quarter with approximately $367 million in cash and time deposits, with a positive cash flow from operations for the quarter.
Steven Pelayo: Revenue for the first half of the year was $354.7 million, up 62%. We believe this growth rate is higher than the growth rate of China WFE and demonstrates market share gain for ACM and the contribution from new products. Now I will provide detail on the products. Please turn to slide four. Revenue from single wafer cleaning, pothole, and the semi-critical cleaning product grew 36% in Q2. And we present 76% of total revenue.
Speaker Change: Revenue for the first half of the year was $354.7 million, up 62%.
David Wong: We believe this; the gross rate is higher than the gross rate of China's WFE, and the demonstrates market share gain for ACM and the contribution from new product cycles.
Speaker Change: We believe this growth rate is higher than the growth rate of China's WFE, and it demonstrates market share gain for ACM and the contribution from new product cycles.
David Wong: Now, I will provide detail on product. Please turn to slide four. Revenue from single way for a Canadian Tahoe and a semi-critical Canadian product, grow 36% in Q2. And we presented 76% of total revenue. ACM offers what we believe is among the industry and most comprehensive Canadian portfolio. We estimate the global total available market for 10 for Canadian is close to a 6 billion, and ACM produced product supporting 90% of all Canadian process steps in their both memory and their logic. During the last earning call, we highlight the so freaking proxies or SPM portion of their Canadian market, which has been a relatively small contributor to our business, but we presented 25 to 30% of the total front and the Canadian market.
Speaker Change: Now I will provide detail on product. Please turn to slide four.
Speaker Change: Revenue from single wafer cleaning, PAHO, and the semi-critical cleaning product grew 36% in Q2, and represents 76% of total revenue.
Steven Pelayo: ACM offers what we believe is among the industry's most comprehensive cleaning portfolios, we estimate the global total available market or 10 for cleaning is close to 6 billion and ACM produced product supporting 90% of all cleaning process steps in their, During the last earning call, we highlight the sulfuric peroxide or SPM portion of the Canadian market, which has been a relatively small contributor to our business. But we presented 25 to 30% of the total front end cleaning market. ACM now offer full product line of SPM tool across all temperature range.
Speaker Change: ACM offers what we believe is among the industry's most comprehensive cleaning portfolios.
Speaker Change: We estimate the global total available market, or TAM, for cleaning is close to $6 billion, and ACM produced products supporting 90% of all cleaning process steps in their both memory and their logic.
Speaker Change: During the last earning call, we highlight the sulfuric peroxide, or SPM, portion of the Canadian market, which has been a relatively small contributor to our business, but represents 25 to 30 percent of the total front-end Canadian market.
David Wong: ACM now offer full product line of SPM tool across all temperature range. We have already been shipped top and a single wafer tools for lower and middle temperature SPM steps. We now have differentiated high temperature SPM tool that we believe publishing us to gain market share from their current market leaders. We currently have more than 10 SPM customers in production or evaluation and look forward to increase contribution to shipment or revenue as we run from production in the next 12 to 24 months. We also expect a battle at your Canadian tool to contribute more revenue in 2024, and we are on track to complete evaluation of a supercritical CO2 drawing, Canadian tool this year and revenue in 2025.
Speaker Change: ACM now offers a full product line of SPM tools across all temperature ranges. We have already been shipped Tahoe and single wafer tools for lower and middle temperature SPM steps.
Steven Pelayo: We have already shipped Tahoe and single wafer tools for lower and middle temperature SPM steps. We now have a differentiated high temperature SBM tool that we believe positions us to gain market share from the current market leader. We currently have more than 10 SPM customers in production or evaluation and look forward to increased contribution to shipment or revenue as we ramp up production in the next 12 to 24 months. We also expect our Bevel-Etcher Canadian tool to contribute more revenue in 2024.
Speaker Change: We now have a differentiated high-temperature SBM tool that we believe positions us to gain market share from the current market leader.
Speaker Change: We currently have more than 10 SBM customers in production or evaluation. I look forward to increased contribution to shipment or revenue as we ramp up production in the next 12 to 24 months.
Speaker Change: We also expect our Bevel-Etcher Canadian tool to contribute more revenue in 2024, and we are on track to complete evaluation of a supercritical CO2 drying Canadian tool this year and the revenue in 2025.
Steven Pelayo: And we are on track to complete the evaluation of a supercritical CO2 giant Canadian tool this year and the revenue in 2025. We believe our ACM cleaning portfolio, including SEP, DEBO, Tahoe, Semicritical, together with SPM and Supercritical CO2 Dry, has achieved world class status. We see a good opportunity for continual market share gain in mainland China, and we are confident. We are confident we have what it takes to attract major customers in the international market. Revenue from ECP, the furnace, and other technology grew 104% in Q2 and represented 19% of total revenue.
David Wong: We believe ACM Canadian portfolio including SAP, Tivo, Tauho, semi-critical together with SPM and Supercritical CO2 drawing has achieved water cost status. We see good opportunity for continual market share gain in mainland China, and we are confident. Confident, we have a what it takes to a scare major customer in the international market. Revenue from ECP, furnace and other technology growth 100 to 4% in Q2, and we present a 19% of a total revenue, which achieved another quarterly record in this category with nearly 39 million in revenue in Q2. In plating, we are seeing strong demand for both front-end wafer processing and back-end their packaging.
Speaker Change: We believe ACM cleaning portfolio, including SAP, T-Bowl, Tahoe, Semicritical, together with SPM and Supercritical CO2 Dry, has achieved world-class status.
Speaker Change: We see good opportunity for continual market share gain in Mainland China, and we are confident, confident we have what it takes to scare major customers in the international market.
Speaker Change: Revenue from ECP, furnace, and other technology growth 104% in Q2 and represent a 19% of a total revenue.
Steven Pelayo: We achieved another quarterly record in this category with nearly 39 million in revenue in Q2. In plating, we are seeing strong demand for both front-end wafer processing and back-end packaging. We have a major new product announcement today, the Ultra ECP-AP-P printing tool for the next generation fan-out panel-level packaging, or FOPLP. We believe this is a game-changing lead position for ACM to participate in the growing demand for AI solutions. Our proprietary design employs a horizontal plating method that delivers film uniformity and precision across the entire panel.
Speaker Change: We achieved another quarterly record in this category with nearly $39 million in revenue in Q2. In plating, we are seeing strong demand for both front-end wafer processing and back-end packaging.
David Wong: We have a major new product announcement today, the ultra-ECP-AP-P plating tool for the next generation fan-out panel level packaging or FLPLP. We believe this is a game-changing that position ACM to participate in growing demand for AI solutions. Our proprietary design employee for example, plating method that delivers film uniformity and the precision across the entire panel. We believe ACM is among the first to employ horizontal plating for panel applications, and it was tracing the market in the evening of the month packaging with a some micron feature on large panels. This technology, especially applicable to GPU and a high-density high bandwidth memory HBF.
Speaker Change: We have a major new product announcement today, the Alture ECP AP-P printing tool for the next generation fan out.
Speaker Change: panel level packaging or FOPLP. We believe this is a game-changing that position ACM to participate in growing demand for AI solutions.
Steven Pelayo: We believe ACM is among the first to employ horizontal plating for panel applications, and it will strengthen the market, enabling advanced packaging with a submicron feature on large panels. This technology is specially applicable to GPUs and high density, high bandwidth memory, HVM.
Speaker Change: Our proprietary design employs a horizontal plating method that delivers film uniformity and precision across the entire panel. We believe ACM is among
Speaker Change: The first to employ horizontal plating for panel applications, and it was strengthening the market, enabling advanced packaging with a submicron feature on large panels.
Speaker Change: This technology is specially applicable to GPU and high-density, high-bandwidth memory HPF. We see a large opportunity as several major semiconductor leaders have chosen Pano for their AI chip packaging solution.
David Wong: We see a large opportunity as several major semiconductor leaders choosing panel for their AIG packaging solution. and we continue to make a good progress with our furnace product, which I trust, more process step, ranging from oxidation and yield to LPCVD and ARD. As noted in prior call, our furnace product cycle is about 18 months behind the PD. We believe our furnace product portfolio will benefit from increasing capacity for both memory and logic. Overall, we expect to have more than 16 for this customer by end of this year, compared to the 9th at the end of 2023.
Steven Pelayo: We see a large opportunity as several major semiconductor leaders have chosen Panel for their AI chip packaging solution. And we continue to make good progress with our furnace product, which addresses more process steps, ranging from oxidation, anneal, to LPCVD and ARD. However, as noted in the prior call, our furnace product cycle is about 18 months behind plating.
Speaker Change: And we continue to make good progress with our furnace products, which address more process steps, ranging from oxidation, anneal, to LPCVD and ARD.
Speaker Change: As noted in prior call, our furnace product cycle is about 18 months behind plating. We believe our furnace product portfolio will benefit from increasing capacity for both memory and logic.
Steven Pelayo: We believe our furnace product portfolio will benefit from increasing capacity for both memory and logic. Overall, we expect to have more than 16 for this customer by the end of this year compared to nine at the end of 2023. Revenue from Advanced Packaging, which excludes ACP but includes service and sales, declined by 20% for Q2, but was up 13.5% for the first half of the year.
Speaker Change: Overall, we expect to have more than 60 furnished customers by the end of this year, compared to the nine at the end of 2023.
David Wong: Revenue from advanced packaging, which is including SAP, but including service and this panel, declined by 20% for Q2, but was up 13.5% for the first half of the year. This category includes a range of packaging tools such as holder, developer, scrubber, PR stripper, and wet etchers, and also service and spare parts. And we are exploring new products and technology to participate in a next generation of advanced packaging. We believe ACM is one of the only companies that offers a full set of wet tools, polish tools, and a cable plating tool for the advanced packaging.
Speaker Change: Revenue from Advanced Packaging, which excludes ECT, but includes service and repair, declined by 20% for Q2, but was up 13.5% for the first half of the year.
Steven Pelayo: This category includes a range of packaging tools such as coater, developer, scrubber, PR stripper, and wet etchers, and also service and spare parts. And we are exploring new products and technology to participate in the next generation of advanced packaging. We believe ACM is one of the only companies that offers a full set of wear tools, polish tool, and carbon plating tool for advanced packaging.
Speaker Change: This category includes a range of packaging tools such as a coater, developer, scrubber, PR stripper, and wet etchers, and also service and spare parts.
Speaker Change: And we are exploring new products and technology to participate in the next generation of advanced packaging. We believe ACM is one of the only companies that offers a full set of wear tools, polish tools, and carbon plating tools for advanced packaging.
David Wong: Last week, we announced the ultr C vacuum dash P flux cleaning tool for fan-out panel level packaging. This is a companion tool to the SAP AP Dash P, which I mentioned earlier, and extending ACM product portfolio to the panel space. In July, we shipped our first ultr c vacuum dash p flux tool to a new channel packaging manufacturer. Putting together, we believe those two panel tools including plating and cleaning, market strong offering by ACM to address a fan out panel level packaging market. We believe ACM is among the first to applying horizontal plating technology into a panel packaging application.
Steven Pelayo: Last week, we announced the O2C Vacuum-P Flux Cleaning Tool for fan-out panel-level packaging. This is a, Putting together, we believe those two panel tools, including plating and cleaning, mark a strong offering by ACM to address the final panel level packaging market. We believe ACM is among the first to apply horizontal plating technology to panel packaging applications.
Speaker Change: Last week, we announced the O2C Vacuum-P Flux Cleaning Tool for fan-out panel-level packaging.
Speaker Change: This is a...
Speaker Change: companion tool to the ECP AP-P, which I mentioned earlier, and extending ACM product portfolio to the panel space. In July , we shipped our first O2C vacuum dash P flux tool to a new China packaging manufacturer.
Speaker Change: Putting together, we believe those two panel tools, including plating and cleaning, mark a strong offering by ACM to address a final panel-level packaging market. We believe ACM is among the first to apply horizontal plating technology into panel packaging applications.
Steven Pelayo: And we believe our technology will help accelerate ACM's global market, here again as an interest in panel-level packaging is growing rapidly at Foundry, IDM, and OSET in the US, Korea, Taiwan, and mainland China, finishing up on product. We are making good progress with our track and the PSAVD platform. We believe our proprietary approach positions both tools for success for mainland China and the global market. We shipped a beta version of the PCV tool in July to a larger customer. The innovative platform is capable of handling a wide variety of the PCVD process.
David Wong: And we believe our technology will help accelerate ACM's global market. Here again, as an interest in panel level packaging is growing rapidly at the Foundry, IDM, and the OSAT in the US, Korea, Taiwan, and the main and China.
Speaker Change: And we believe our technology will help accelerate ACM's global market share gain as an interest in panel-level packaging.
Speaker Change: is growing rapidly at Foundry, IDM, and OSET in the U.S., Korea, Taiwan, and mainland China.
David Wong: Finish up our product. We are making good progress with our track and the PSVD platform. We believe our proprietary approach, producing both tool for success, for main and China and the global customer. We shipped our beta version of PSVD tool in July to a logical customer. The innovation platform is capable of handling a wider variety of the PSVD process. We expect a multiple valuation this year and a number of local customers in Foundry, Logic and Memory, and other areas. We are moving forward in the development of our track tool, which has differentiated the design with the folks on high throughput and low maintenance.
Speaker Change: Finish up on product. We are making good progress with our track and PSAVD platform.
Speaker Change: We believe our proprietary approach positions both tools for success for Mainland China and the global customer.
Speaker Change: We shipped a beta version of the PCVD tool in July to a large customer. The innovative platform is capable of handling a wide variety of the PCVD process.
Steven Pelayo: We expect multiple evaluations this year and a number of local customers in foundry, logic, and memory, and other areas. We're moving forward with the development of our track tool, which has a differentiated design with a focus on high throughput and low maintenance. In addition to the AIF evaluation tool and a major Chinese foundry, we're also engaging with several customers for inline and KF line-based software. We expect good progress for both PCVD and TRAC over the next year, with revenue likely later than 2025 and more notable contribution in 2026 and beyond. Moving on to the customer, please turn to slide seven.
Speaker Change: We expect multiple evaluations this year and a number of our local customers in foundry, logic and memory, and other areas.
Speaker Change: We are moving forward in the development of our track tool, which has a differentiated design with a focus on high throughput and low maintenance.
David Wong: In addition to AIF evaluation tool in the major Chinese foundry, we are also engaging with several customers for online and careful line based on the geography. We expect a good progress for both PSVD and track over the next year with a revenue likely in late 2025 and more notable contribution in 2026 and a BR.
Speaker Change: In addition to AIF evaluation tool and a major Chinese foundry, we are also engaging with several customers for I-Line and KF-Line based lithography.
Speaker Change: We expect good progress for both PSVD and TRAC over the next year, with revenue likely in later than 2025, and more notable contributions in 2026 and beyond.
David Wong: Moving on to a customer, present to slide seven. In Q2, we saw a broader demand from foundry, logic, power, and memory, both NAND and DRAM. For the second quarter of 2024, we had a 4, 10%. Customer representative, figure eight of the Raminio versus three customer representing 51st 2% in the second quarter of 2023. In China, we have a leading position in Cunini with a significant role to grow. We believe we have become a world-class multi-product company with competitive products in markets for plating and furnace. And we have a solid evaluation pipeline for track and PSVD.
Speaker Change: Moving on to customer, please turn to slide 7. In Q2, we saw broader demand from foundry logic power and memory, both NAND and DRAM. For the second quarter of 2024, we had a 4, 10 percent.
Steven Pelayo: In Q2, we saw broader demand from foundry logic power and memory, both NAND and DRAM. For the second quarter of 2024, we had a 4.10% customer represented 58% of the revenue versus three customers represented 52% in the second quarter of 2023. In China, we have a leading position in cleaning with significant room to grow. We believe we have become a world-class multi-product company with competitive products in markets for plating and furniture.
Speaker Change: Customer represented 58% of the revenue versus 3%. Customer represented 52% in the second quarter of 2023.
Speaker Change: In China, we have a leading position in cleaning with a significant room to grow. We believe we have become a world-class multi-product company with competitive products in markets for plating and furnace.
Steven Pelayo: And we have a solid evaluation pipeline for track and PCBD. Overall, we believe our China growth is being driven by market share gain, new products, and increased localization. In the US, we will deliver ultra, C.B. Backside Cleaning, and the Bevel Edge Tool in the second quarter of 2024.
Speaker Change: and we have a solid evaluation pipeline for track and PCBD. Overall, we believe our China growth is being driven by the market share gain, new product, and increased localization.
David Wong: Overall, we believe our China growth is being driven by the market share gain, new product, and increased localization. In the US, we deliver a ultra-CB backside tuning and the battle edge tool in the second quarter of 2024 to a large U.S. manufacturing manufacturer that qualifies as the first SaaS continuing tool for Raminio later last year. This demonstrates a deepened relationship, which we believe can lead to a production order across a multiple product line. And today, I'm pleased to announce we have received an order from the U.S.-based wafer-level packaging house for a co-author developer tool. We expect to deliver this tool to the U.S.
Speaker Change: In the U.S., we delivered an Ultra CB backside cleaning and a bevel-edged tool in the second quarter of 2024 to a large U.S. manufacturer that qualifies as the first SAP cleaning tool for revenue later last year.
Steven Pelayo: To a large U.S. manufacturer, Qualify was the first SAF cleaning tool for revenue later last year. This demonstrates a deepened relationship, which we believe can lead to a production order across multiple product lines. And today, I'm pleased to announce we have received an order from a U.S.-based wafer-level packaging house for the COSR developer tool. We expect to deliver this tool to the U.S. facility in the first half of 2025. Last month, we had a great week at the Semicon West trade show in San Francisco.
Speaker Change: This demonstrates a deepened relationship which we believe can lead to a production order across multiple product lines.
Speaker Change: And today, I'm pleased to announce we have received an order from a U.S.-based wafer-level packaging house for a CODER developer tool. We expect to deliver this tool to the U.S. facility in the first half of 2025.
David Wong: facility in the first half of 2025.
David Wong: Last month, we have a greater week at the Semiconductor West trade show in San Francisco. We had several days of a solid meeting with a number of U.S. chip maker with the fabs in U.S. and the board. With good interest in our SaaS, T-boat, Tahoe, supercritical CO2, dry, plating an R-WAT edge tool. In Europe, we are in the final stage of our qualification of our ultra-C-Saf-Fine continuing tool in a major global semiconductor manufacturer. In Korea, we engage with a multiple customer for both front-end and packaging tool, including a single wafer and a batch clean. Tahoe, ECP, Fernos, ARD, PSVD, and track.
Speaker Change: Last month, we had a greater week at the Semicon West trade show in San Francisco.
Steven Pelayo: We had several days of solid meetings with a number of US chipmakers, with the five in the US and abroad, with good interest in our set, TIBO, Tahoe, supercritical CO2, dry, plating, and our wet edge tool. In Europe, we are in the final stage of our qualification of the Ultra-C-SAF5 Canadian tool and a major global semiconductor manufacturer. In Korea, we engage with multiple customers for both front-end and packaging tools, including single wafer and batch cleaning. Tahoe, ECP, Furnace, ALD, PSAVD, and TRAC
Speaker Change: We had several days of a solid meeting with a number of U.S. chipmakers with fabs in the U.S. and aboard, with good interest in our SAP, TIBO, Tahoe, supercritical CO2 drying, plating, and our wet-etched tools.
Speaker Change: In Europe , we are in the final stage of our qualification of Ultra-Thin SAF-5 Canadian tool and a major global semiconductor manufacturer.
Speaker Change: In Korea, we engage with multiple customers for both front-end and packaging tools, including single wafer and batch cleaning.
Speaker Change: Tahoe, ECP, Furnace, ALD, PSAVD, and TRAC. We see an opportunity for our tool with SK hynix high bandwidth memory capacity product.
David Wong: We see our opportunity for our two of us at S.K. Hainik's high bandwidth memory capacity product.
Steven Pelayo: We see an opportunity for our tool with the SK hynix high bandwidth memory capacity product. To support growth, we made progress on our facility expansion in China and other regions. Please turn to slide 8.
David Wong: To support growth, we made a progress on our facility expansion in China and other regime, pretty soon to slide eight. In China, our Lingang production and on the center is a neonate complete. We expect our initial production to begin in the second half of this year. In Korea, we believe a strong commitment can improve our relationship with the key Korean customers. Our resources in Korea can also provide another basis to support international customers. We continue investing our Oregon site to add our service support and demonstration capability for R&D and customer activity in the US and Europe.
Speaker Change: To support growth, we made progress on our facility expansion in China and other regions. Please turn to slide 8. In China, our Lingang production and R&D center is nearly complete. We expect our initial production to begin in the second half of this year.
Steven Pelayo: In China, our Lingang Production and R&D Center is a near-knee company. We expect our initial production to begin in the second half of. In Korea, we believe a strong commitment can improve our relationship with key Korean customers. Our resources in Korea can also provide another basis to support international customers. We continue to invest in our Oregon site to improve our service support and demonstration capability for R&D and customer activity in the U.S. and Europe. In Q3, we entered into an agreement to purchase a 40,000 square feet R&D facility in Oregon with a full functional 5,000 square feet clean room. The purchase is scheduled to close in Q4.
Speaker Change: In Korea, we believe a strong commitment can improve our relation with key Korean customers. Our resources in Korea can also provide another basis to support international customers.
Speaker Change: We continue to invest in our Oregon site.
Speaker Change: at our service, support, and demonstration capability for R&D and customer activity in the U.S. and Europe .
David Wong: In Q3, we enter into our agreement to purchasing a 40,000 square feet on the facility in Oregon with a full functional 5,000 square feet clean. The purchasing is scheduled to close in Q4. This new facility demonstrates a strong commitment to the US market. Allow us to conduct our R&D, and the institution of ACM Technology, near major semiconductor producers.
Speaker Change: In Q3, we entered into an agreement to purchase 40,000 square feet R&D facility in Oregon with a full functional 5,000 square feet clean room.
Steven Pelayo: This new facility demonstrates a strong commitment to the U.S. market and allows us to conduct R&D and demonstration of ACM Technology near major semiconductor producers. Several years ago, we set a long-term revenue target of $1 billion. We are now closing on this level, and we have made good progress with a new product and international marketing. As a result, I'm happy to report that today we have set a new long-term revenue target of $3 billion. Please turn to slide 6.
Speaker Change: The purchasing is scheduled to close in Q4. This new facility demonstrates a strong commitment to the U.S. market, allowing us to conduct R&D and demonstration of ACM technology near major semiconductor producers.
David Wong: Several years ago, we sat a long-term revenue target of $1 billion. We are now closing to this level, and we have made a good progress with new product and international marketing. As a result, I'm happy to report that today. We have set a new, long-term revenue target of $3 billion.
Speaker Change: Several years ago, we set a long-term revenue target of $1 billion.
Speaker Change: We are now closing to this level, and we have made good progress with new products and international marketing.
Speaker Change: As a result, I'm happy to report that today we have set a new long-term revenue target of $3 billion. Please turn to slide 6.
David Wong: Please send to us slide six. Key reason for increasing, include. First, we have a skill of our business, e-men and China and also Korea. We now ship a Canadian plating and advanced package tool to near the order major and the smaller semiconductor manufacturers. And we are amongst the top one or two local producers for each category. Second, we believe our product, what cost? This, including our current offering and our new product roadmap. We are committed to innovation, and we believe we can compete head to head with a top-tier player both in China and the international market.
Steven Pelayo: Key reasons for increasing include first, we have a skilled business in mainland China and also Korea. We now ship cleaning, plating, and advanced packing tools to near the order major and smaller semiconductor manufacturers, and we are amongst the top one or two local producers for each category.
Speaker Change: Key reasons for increasing...
Speaker Change: First, we have scaled our business in mainland China and also Korea. We now ship cleaning, plating, and advanced packaging tools to near-the-order major and smaller semiconductor manufacturers.
Speaker Change: And we are amongst the top one or two local producers for each category.
Steven Pelayo: Second, we believe all our products are world class, this including our current offering and our new product, Roadmap. We are committed to innovation. And we believe we can compete head to head with a top tier player, both in China and the international market, at a high level.
Speaker Change: Second, we believe our product.
Speaker Change: award costs, this including our current offering and our new product roadmap. We are committed to innovation and we believe we can compete head-to-head with a top tier player both in China and international market.
David Wong: At the high level, we believe a marketer ship to AI is moving the market towards ACM technology warehouse. We have been investing in key technology for years. And we are now seeing good interest to apply key technology to several industrial trends.
Steven Pelayo: We believe a market shift to AI is moving the market towards ACM technology warehouse. We have been investing in key technology for years, and we are now seeing good interest to apply key technology to several industrial trends. Let me highlight a few.
Speaker Change: At a high level, we believe a market shift to AI is moving the market towards ACM technology warehouse.
Speaker Change: We have been investing in key technology for years, and we are now seeing good interest to apply key technology to several industrial trends.
David Wong: Let me highlight a few. The shift of 3D structure for land, DRAM and logic is driving demand for our vertical Canadian solution, including T-Bout and Supercudial CO2 drive. And also our proprietary furnace ARD design. Next, HBM required a driving demand for our TSV plating and 2.5D advanced packaging solutions. For TSVD, ACM has a very unique approach, including one chamber with three trucks that allow our customer to address multiple processes with the same platform. For track, ACM differentiates the platform; it design for high throughput and no maintenance to scan it. And therefore, panel plating, as we announced today, we believe ACM new ultra-ECP, AP-P, is a game changer that will support future AI chip packaging at the panel level.
Steven Pelayo: The shift of 3D structure for NAND, DRAM, and logic is driving demand for our vertical cleaning solution, including T-Bowl and supercritical CO2 dry, and also our proprietary furnace ARD design. Next, HBM requires a driving demand for our TSV plating and 2.5D advanced packaging solution. For PECVD, ACM has a very unique approach, including one chamber with three chucks. That allows our customer to address multiple processes with the same platform. For track, the ACM differentiator platform is designed for high-throughput and no-maintenance tool scanners.
Speaker Change: Let me highlight a few.
Speaker Change: The shift of 3D structure for NAND, DRAM, and logic is driving demand for our vertical cleaning solution including TIBO and supercritical CO2 dry, and also our proprietary furnace ALD design.
Speaker Change: Next, HBM requires a driving demand for our TSV plating and 2.5D advanced packaging solutions.
Speaker Change: For TRACK, ACM differentiated platform is designed for high-throughput and no-maintenance tool scanners.
Steven Pelayo: And for panel plating, as we announced today, we believe ACM's new Ultra ECP AP-P is a game changer that will support future AI chip packaging at the panel level. Third, although we are not yet seeing product line proving at a scale in China and Korea, we are seeing good traction with our global customers. We have multiple tools under evaluation and several major customers in the US, Europe, Korea, and Southeast Asia. We are confident those can lead to volume production orders.
Speaker Change: And for panel plating, as we announced today, we believe ACM's new Ultra ECP AP-P is a game-changer that will support future AI chip packaging at the panel level.
David Wong: Third, without product line proving the scale in China and Korea, we are seeing good traction with our global customers. We have a multiple tool on the evaluation of several major customers in the US, European, Korea and the Southeast Asia. We are confident those can lead to volume production orders.
Speaker Change: Third, with our product line improving at a scale in China and Korea, we are seeing good traction with our global customers. We have multiple tools under evaluation at several major customers in the U.S., European, Korea, and Southeast Asia.
David Wong: In the longer term, we spent up to half our business, the market, beyond mainland China. Bring it all together. Our $3 billion dollar target, assuming that China will come for about a $1.5 billion revenue and the rest of the world, which is 2-3x larger than China, will come for the other $1.5 billion.
Speaker Change: We are confident those can lead to volume production orders, and in the longer term, we expect up to half our business in market beyond mainland China.
Steven Pelayo: In the longer term, we expect up to half our business in markets beyond mainland China, bringing it all together, all $3 billion target, assuming that China will come for about $1.5 billion revenue, and the rest of the world, which is two to three x larger than China, will come for the other $1.5 billion. I will now provide our outlook, presenting to Slide 9. We have reached our 2024 revenue outlook to a new range of $695 to $735 million versus the prior outlook of $650 million to $725 million.
Speaker Change: Bring it all together, our $3 billion target, assuming that China will account for about $1.5 billion revenue, and the rest of the world, which is 2 to 3x larger than China, will account for other $1.5 billion.
David Wong: I will now provide our outlook, pretty soon to slide the 9. We have a risk of our 2024 revenue outlook to a new to be in the range of 6.95 to 7.35 million versus prior outlook of a 6.50 million to 7.25 million. At the middle point, our new outlook represents 28% year-over-year growth compared to 23% previously. We expect our shimmon in the second half of the year to grow. With the full year shimmon growth rate, our piecing revenue growth rate. We note our visibility for the year is largely driven by our current order book, anticipate the new orders and the qualification or customer acceptance of their previous shift evaluation tool to a range of the customers.
Speaker Change: I will now provide our Outlook presentation to Slide 9.
Speaker Change: We have raised our 2024 revenue outlook to be in the range of $695 million to $735 million versus prior outlook of $650 million to $725 million.
Steven Pelayo: At the middle point, our new outlook represents 28% year over year growth, compared to 23% previously. We expect our shipment in the second half of the year to grow, with a full year of Shiman Grocery outpacing Rivalry Grocery. We note our visibility for the year is largely driven by our current order book. anticipate the new orders and the qualification or customer acceptance of their previous shipped evaluation tool to a range of the customer. We believe WFG spending in Mainland China will remain stable as the country continues to on its goal to match production capacity with end market consumption.
Speaker Change: At the middle point, our new outlook represents 28% year-over-year growth, compared to 23% previously. We expect our shipment in the second half of the year to grow, with a full-year shipment growth rate outpacing revenue growth rate.
Speaker Change: We note our visibility for the year is largely driven by our current order book. Anticipate the new orders and the qualification or customer acceptance of the previous shipped evaluation tool to a range of the customers.
David Wong: We believe WFG is spending in mainland China, where it remains stable as the country continue to on its goal to match the production capacity with end-market consumption. We are focused on gaining market share in the mainland China, running our new product and expanding our business to new customers in the US, Korea, Taiwan, Europe, and other Southeast Asia market.
Speaker Change: We believe WFG spending in Mainland China will remain stable as the country continues to on its goal to match its production capacity with end market consumption.
Steven Pelayo: We are focused on gaining market share in mainland China, running our new product, and expanding our business to new customers in the US, Korea, Taiwan, Europe, and other Southeast Asian markets. Now, let me turn the call over to our CFO, Mark, who will reveal details of our second quarter results. Mark, please.
Speaker Change: We are focused on gaining market share in the mainland China, running our new product, and expanding our business to new customers in the U.S., Korea, Taiwan, Europe , and other Southeast Asian markets.
Mark Mckechnie: Now, let me turn the call over to our CEO, Mark, who revealed details of our second-quarter result. Mark, please. Thank you, David. Good day, everyone.
Speaker Change: Now, let me turn the call over to our CFO , Mark, who will reveal details of our second quarter results. Mark, please. Thank you. Thank you.
Mark: Thank you, David. Good day, everyone.
Mark Mckechnie: Please turn to slide 10. Unless I note otherwise, I will refer to non-GAAP financial measures, which exclude stock-based compensation and realized gain/loss and short-term investments. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. Unless otherwise noted, the following figures refer to the second quarter of 2024; in comparisons, are with the second quarter of 2023.
Mark: Please turn to slide 10. Unless I note otherwise, I'll refer to non-GAAP financial measures, which exclude stock-based compensation, unrealized gain-loss, and short-term investments. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. Unless otherwise noted, the following figures refer to the second quarter of 2024, and comparisons are with the second quarter of 2023. I will now provide financial highlights for the second quarter of 2024.
Mark Mckechnie: Thank you, David. Good day, everyone. Please turn to slide 10. Unless I note otherwise, I'll refer to non-GAAP financial measures, which exclude stock-based compensation, unrealized gain-loss, and short-term investments.
Mark Mckechnie: Reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release.
Mark: Revenue was $202.5 million, up 40 percent. Revenue for single wafer cleaning, Tahoe, and semi-critical cleaning was $153.2 million, up 36.2 percent. Revenue for ECP, front-end packaging, furnace, and other technologies was $39.0 million, up 103.8 percent. Revenue for advanced packaging, excluding ECP, services, and spares, was $10.3 million for the second quarter, down 20.4 percent, but for the first half, it grew by 13.5 percent. Total shipments were $203 million, up 32%.
Speaker Change: Unless otherwise noted, the following figures refer to the second quarter of 2024, and comparisons are with the second quarter of 2023.
Mark Mckechnie: I will now provide financial highlights for the second quarter of 2024. Revenue was 202.5 million of 40%. Revenue for single-way for cleaning, Tahoe, and semi-critical cleaning was 153.2 million of 36.2%. Revenue for ECP, front end packaging, furnace, and other technologies was 39.0 million of 103. 8%. Revenue for advanced packaging, excluding ECP services and spares, was 10.3 million for the second quarter, down 20.4%, but for the first half it grew by 13.5%. Total shipments were 203 million of 32%. Growth margin was 48.2%, versus 47.6%. This exceeded our long-term growth margin target of 40 to 45%. For the full year, we now expect our growth margins to be above the high end of the range.
Speaker Change: I will now provide financial highlights for the second quarter of 2024. Revenue was $202.5 million, up 40%. Revenue for single wafer cleaning, Tahoe, and semi-critical cleaning was $153.2 million.
Speaker Change: of 36.2%.
Speaker Change: Revenue for ECP, front-end packaging, furnace, and other technologies was $39.0 million, up 103.8%.
Speaker Change: Revenue for advanced packaging excluding ECP, services and spares was $10.3 million for the second quarter, down 20.4%, but for the first half it grew by 13.5%.
Mark: Gross margin was 48.2% versus 47.6%. This exceeded our long-term gross margin target of 40 to 45%. For the full year, we now expect our gross margins to be above the high end of the range. This is due to gross margins above the range for the first half and our expectations for gross margin at the upper end of our target range for Q3. We continue to expect gross margin to vary from period to period due to a variety of factors, such as sales volume, product mix, and currency impact.
Speaker Change: Total shipments were $203 million, up 32%.
Speaker Change: Gross margin was 48.2% vs. 47.6%.
Speaker Change: This exceeded our long-term gross margin target of 40 to 45 percent.
Speaker Change: For the full year, we now expect our gross margins to be above the high end of the range. This is due to gross margins above the range for the first half and our expectations for gross margin at the upper end of our target range for Q3 and Q4.
Mark Mckechnie: This is due to growth margins above the range for the first half and our expectations for growth margin at the upper end of our target range for Q3 and Q4. We continue to expect growth margin to vary from period to period due to a variety of factors such as sales volume, product mix, and currency impacts. Operating expenses were 45.6 million from 36.3 million. R&D was 21.8 million versus 19.4 million. The year-over-year increase primarily reflects additional personal expenses to support our product development pipeline. Sales and marketing was 14.1 million versus 11 million, and GNA was 9.8 million versus 6.0 million.
Mark: Operating expenses were $45.6 million, up from $36.3 million. R&D was $21.8 million versus $19.4 million. The year-over-year increase primarily reflects additional personnel expenses to support our product development pipeline. Sales and marketing were $14.1 million versus $11 million, and G&A was $9.8 million versus $6.0 million. For 2024, we plan for R&D in the 13 to 15% range, sales and marketing in the 7 to 8% range, and G&A in the 5 to 6% range.
Speaker Change: Operating expenses were $45.6 million up from $36.3 million. R&D was $21.8 million versus $19.4 million. The year-over-year increase primarily reflects additional personnel expenses to support our product development pipeline.
Mark Mckechnie: For 2024, we planned for R&D in the 13-15% range, sales and marketing in the 7-8% range, and GNA in the 5-6% range. Operating income was 51.9 million versus 32.4 million. Operating margin was 25.6% versus 22.4%. We had no realized gain from the sale of short-term investments for the quarter, as compared to a gain of 3.9 million in the year-go period. Recall that the realized gains are included in our non-GAAP earnings. Income tax expense was 9.3 million versus 7.6 million. For the full year, we planned for an effective tax rate on non-GAAP pre-tax income in the 15-20% range.
Mark: Operating income was $51.9 million versus $32.4 million. Operating margin was 25.6% versus 22.4%. We had no realized gain from the sale of short-term investments for the quarter as compared to a gain of $3.9 million in the year-ago period. Recall that the realized gains are included in our non-GAAP earnings; income tax expense was 9.3 million versus 7.6 million. For the full year, we plan for an effective tax rate on non-gap pre-tax income in the 15 to 20% range.
Speaker Change: We had no realized gain from the sale of short-term investments for the quarter as compared to a gain of 3.9 million in the year ago period. Recall that the realized gains are included in our nine gap earnings.
Speaker Change: Income tax expense was $9.3 million versus $7.6 million. For the full year, we plan for an effective tax rate on non-GAAP pre-tax income in the 15 to 20 percent range.
Mark Mckechnie: Net income attributable to ACM Research was 37.3 million versus 31.3 million. Net income per divided share was 55 cents versus 48 cents. Our non-GAAP net income excluded 14.3 million, or 21 cents per share, in stock-based compensation expense. We note that due to the accelerated amortization for ACM Shanghai stock option grants, we do expect SPC expense to gradually roll off in the third quarter and beyond.
Mark: Net income attributable to ACM Research was $37.3 million versus $31.3 million. Net income per delivered share was $0.55 versus $0.48. Our non-GAAP net income excluded $14.3 million, or 21 cents per share, in stock-based compensation expense. We note that due to the accelerated amortization for ACM Shanghai Stock Option grants, we do expect SPC expense to gradually roll off in the third quarter and beyond.
Speaker Change: We note that due to the accelerated amortization for ACM Shanghai stock option grants, we do expect SPC expense to gradually roll off in the third quarter and beyond.
Mark Mckechnie: Now we've reviewed selected balance sheet and cash flow items. Cash equivalent for restricted cash in time deposits ended the second quarter at 366.8 million versus 288.3 million at the end of last quarter. Total inventory was 602.9 million versus 581.1 million at the end of last quarter. This included raw materials and work in process of 324.0 million and finished goods inventory of 278.9 million. Finish goods inventory mainly includes first tools under evaluation at our customers; also includes finished goods at ACM facilities. Cash flow from operations was 61 million for the second quarter and 51.9 million for the first half of the year.
Mark: I will now review selected balance sheet and cash flow items. Cash equivalents, restricted cash, and time deposits ended the second quarter at $366.8 million versus $288.3 million at the end of the previous quarter. Total inventory was $602.9 million, versus $581.1 million at the end of last quarter. This included raw materials and work in process of $324.0 million and finished goods inventory of $278.9 million. Finished goods inventory mainly includes first tools under evaluation at our customers but also includes finished goods at ACM facilities.
Speaker Change: Cash equivalents, restricted cash, and time deposits ended the second quarter at $366.8 million versus $288.3 million at the end of last quarter.
Speaker Change: Finished goods inventory mainly includes first tools under evaluation at our customers. Also includes finished goods at ACM facilities.
Mark: Cash flow from operations was $61 million for the second quarter and $51.9 million for the first half of the year. Capital expenses were $13.6 million for the second quarter and $39.7 million for the first half of the year. For the full year 2024, we expect to spend about $100 million in capital expenditures, primarily continuing investments in our Lingang facilities, remodeling the new headquarters for ACM Shanghai, and our investments in Korea and the US together with fixed asset expenditure.
Speaker Change: Cash flow from operations was $61 million for the second quarter and $51.9 million for the first half of the year.
Mark Mckechnie: Capital expenses were 13.6 million for the second quarter, 39.7 million for the first half of the year. For the full year 2024, we expect to spend about 100 million in capital expenditures. This primarily includes continued investments in our Linggang facilities, remodeling for the new headquarters for ACM Shanghai, and our investments in Korea and the US together with fixed asset expenditures.
Speaker Change: This primarily includes continued investments in our Lingang facilities, remodeling for the new headquarters for ACM Shanghai, and our investments in the Korea and the US, together with fixed asset expenditures.
Unknown Attendee: That concludes our prepared remarks.
Operator: That concludes our prepared remarks. Now, let us open the call for any questions that you may have. Operator, please go ahead. Thank you for taking the question and answer session.
Unknown Attendee: Now let us open the call for any questions that you may have.
Unknown Attendee: Operator, please go ahead. Thank you.
Unknown Attendee: We will now begin the question and answer session. To ask questions on the phone, please press star 11 and wait for an empty be announced. If you'd like to cancel requests, please press Star 11 again. One moment for the first question.
Operator: We will now begin the question and answer session. To ask questions on the phone, please press star 1 1 and wait for an empty BNL. If you would like to cancel your request, please press star 11 again. One moment for the first question. Hi David. Mark Lee.
Speaker Change: Thank you. We will now begin the question and answer session. To ask questions on the phone, please press star 11 and wait for a name to be announced. If you would like to cancel your request, please press star 11 again. One moment for the first question.
Suji DeSilva: Alpha's questions come show the line of Sugita Silver from Ralph Capital. Please go ahead. Hi, David. Mark Lee, sir, congrats on the progress here and the up guidance. For the second half, your shipments appear to be increasing. Can you talk about maybe one percent or give it some sense of how much of that shipment base is outside of China versus China? And how that will increase in the mix over time?
Speaker Change: Thank you.
Speaker Change: Our first question comes from the line of Suji DeSilva from Roth Capital. Please go ahead.
Suji DeSilva: Hi David, Mark, and Lisa, congratulations on the progress here and the guidance. So the second half, your shipments appear to be increasing. Can you talk about maybe 1% or give us some sense of how much of that shipment base is outside of China versus China and how that will increase?
Suji DeSilva: Hi David, Mark, Lisa, congrats on the progress here and the guidance.
Suji DeSilva: So the second half, your shipments appear to be increasing. Can you talk about maybe 1% or give us some sense of how much of that shipment base is outside of China versus China and how that will increase in the mix over time?
Mark Mckechnie: You want to take care? Mark? Yeah, sure.
Mark: Thank you. You want to take that? You want to take care of it, Mark? Yeah, sure. Hey, Suji, thanks.
Speaker Change: If you want to do that, that's awesome.
Mark Mckechnie: Oh, hey, Suji, thanks. Yeah, so yeah, that we expect our shipments to be a bit higher in the second half versus the first half of the year. You know, we'd expect shipments up, obviously, in the third quarter in terms of the mix internationally outside of mainland China. Suji, I would say that the substantial majority of our shipments will still be within China. And so we will have some shipments outside, but the really substantial majority is going to be to the mainland China market in the back half of the year. Okay. Yeah, of course.
Mark: Yeah, you did point out that we expect our shipments to be a bit higher in the second half versus the first half of the year. You know, we'd expect shipments to be higher, obviously, in the third quarter. In terms of the mix internationally or outside of mainland China, Suji, I would say that the substantial majority of our shipments will still be within China. And so we will have some shipments outside, but really, a substantial majority is going to be to the mainland Chinese market in the second half of the year. Okay.
Speaker Change: You want to take care of Mark? Yeah, sure. Hey, Suji, thanks. Yeah, so yeah, that we expect our shipments to be a bit higher in the second half versus the first half of the year. You know, we'd expect shipments up obviously in the third quarter.
CG: In terms of the mix internationally, or outside of mainland China, CG, I would say that the substantial majority of our shipments will still be within China. And so we will have some shipments outside, but really a substantial majority is going to be to the mainland China market.
Unknown Attendee: And then specifically for the Korean customers, I know you've been shipping into the Chinese fabs for Korean customers, but are you already shipping into the Korean fab for Korean customers? And if not, what's the timing of that starting, because that sounds like something newer as an opportunity I've heard versus kind of the US and Europe.
CG: in the back half of the year.
Mark Mckechnie: And then specifically the Korea customers, I know you've been shipping into the China fans for Korea customers, but are you already shipping into Korea fab for Korean customers? And if not, what's the timing of that starting? That's not like something newer as an opportunity I've heard versus kind of US and Europe. Okay, so we're definitely working with the Korean customer. And there's so this moment, we're now Q2 where I'm no shim and gold, they're Korean right now. However, you know, we do see the opportunity, including also on the tool and for their, you know, the young and Canadian product. Well, we're heavily engaged with the Korean customer.
CG: Okay.
Speaker Change: And then specifically for the Korea customers, I know you've been shipping into the China fabs for Korea customers, but are you already shipping into Korea fab for Korean customers? And if not, what's the timing of that starting? Because that sounds like something newer as an opportunity I've heard versus kind of US and Europe .
Steven Pelayo: Okay, so we are definitely working with a Korean customer. And so at this moment, we're now, I mean, Q2, we have no shipment go to Korea right now. However, you know, we do see the opportunity, including an R&D tool. And for them, you know, beyond the Canadian product, we're heavily engaged with the Korean customer. So we see that there are additional new products, you know, we hopefully can be shipping in the second half of this year, which is really another bigger, high-quality product for the HBM, you know, right? That's what we're looking for.
Speaker Change: Okay, so we are definitely working with a Korean customer.
Speaker Change: And so at this moment, we are now in Q2. We have no Shim and Gold here in Korea right now.
Speaker Change: However, you know, we do see the opportunity, including also R&D tools, and for their, you know, beyond the cleaning product, we're heavily engaged with our Korean customers.
Mark Mckechnie: So we see that additional new product, you know, where hopefully can be shipping their second half this year, which is really another cheaper product for the HBM, you know, for purchase, right? That's where it works for the people. That's standing. That's great.
Speaker Change: So, we see that additional new products, you know, will hopefully can be shipping in the second half of this year, which is really another bigger type of product for the HBM, you know, production, right? That's where we're looking for.
Unknown Attendee: And then my last question is on the high bandwidth memory supply chain in Taiwan, which has been growing very strong. Can you talk about your opportunity there and who the competition is today in that market? Because you know, with AI, that's growing very fast.
Mark Mckechnie: And then my last question is on the high bandwidth memory supply chain in Taiwan, which has been growing very strong. Can you talk about your opportunity there if that's soon and who the competition today is in that market because, you know, with AI, that's growing very fast. Okay, you mean the panel panel panel side of the new product? You mean that, is that correct? The high bandwidth memory opportunity to supply chain later the products into that in China. Taiwan, right? Yeah, you mean our new panel product? You talk about the market. Yeah, yeah. Right. The back of the packaging.
Speaker Change: And then my last question is on the high bandwidth memory supply chain in Taiwan, which has been growing very strong. Can you talk about your opportunity there, if that's soon, and who the competition today is in that market, because we know with AI that's growing very fast.
Unknown Attendee: Okay, you mean the panel, panel, panel side of the new product, Siji, do you mean that? Is that correct?
Speaker Change: Okay you mean the panel panel panel side a new product you mean that is that correct? The high bandwidth memory opportunity to supply chain there the products into that in China Taiwan rather.
Unknown Attendee: The High Bandwidth Memory Opportunity, the supply chain there, the products, and the Internet in China and Taiwan.
Steven Pelayo: Yeah, you mean our new panel product? You're talking about our previous product? Yes, yeah, yeah. Right. The back, the back end of it.
Speaker Change: Yeah, you mean our new panel product, you talk about our previous product? Yes, yeah, yeah, right, the back, the back of the packaging.
Steven Pelayo: Oh, bags and packaging. Okay, I see. Well, for the bags and packaging, you know, we're engaging with the customer in Taiwan and also engaging with customers in the U.S., right? We announced we have received our first code developer order from one of the U.S. advanced packaging houses. And definitely, you know, we have a well-set up this weather forecast tool for advanced packaging. So we're having engaged with multiple customers in Taiwan.
Mark Mckechnie: Okay, I see. Well, for their backland packaging is, you know, we're engaged with the customer in Taiwan and also engaged with customer in the US, right? Which announced we have received their first their cold developer order from one of the US advance packaging house. And definitely, you know, wherever, where are set up there? This weather, weather tool for advance packaging. So we're having engaged with multiple customers in Taiwan. Meanwhile, we just announced this our panel, you know, low pressure cleaning for Flash and also announced this horizontal plating for the panel. I think the two new products were definitely addressed.
Speaker Change: Oh, bags are a package. Okay, I see.
Speaker Change: Well, for the bags and packaging, you know, we're engaging with a customer in Taiwan and also engaging with a customer in the U.S., right, which announced we have received our first code developer order from one of the U.S. advanced packaging house.
Speaker Change: And definitely, you know, we have a well set of this wider tool for the advanced packaging. So we're having engaged with multiple customers in Taiwan. Meanwhile, we just announced this...
Steven Pelayo: Meanwhile, we just announced this, our panel, you know, low-pressure cleaning for flux, and also announced this horizontal plating for the panel. I think the two new products will definitely address the new trend, also, you know, the new packaging requirement. So we're engaging with multiple customers right now, and, you know, in Mainland China and also in Taiwan and also in the U.S. So we believe that will bring another exciting market for our new panel product.
Speaker Change: our panel, you know, low-pressure cleaning for flux and also announce this horizontal plating for the panel.
Mark Mckechnie: The new trend also, you know, new update. There's the packaging requirement. So we're engaging with the multiple customers right now. And you know, in mainland China and also in Taiwan, I was in the US. So we believe that's what bring another exciting market and for our new panel product. And plus, we're still engaging also developer additional new type, other type of the, you know, panel panel product too. So we believe that's what bring another our revenue growth potential, right, in this product portfolio.
Speaker Change: I think the two new products were definitely addressed, the new...
Speaker Change: trend. Also, you know, new of this packaging requirement. So we're engaging with multiple customers right now and, you know, in Mainland China and also in Taiwan and also in the U.S.
Speaker Change: So we believe that will bring another exciting market for our new panel product.
Speaker Change: And plus we're still engaging also developer additional new type other type of the you know panel panel panel product too. So we believe that's what bring another our revenue growth potential right in this in this product portfolio.
Steven Pelayo: And plus, we're still engaging also developers of additional new types, other types of the, you know, panel, panel, panel products, too. So we believe that's where we're bringing another revenue growth potential, right into this, into this product portfolio. Okay, sounds like
Mark Mckechnie: Okay, sounds like great progress all around. Thanks, David; thanks, guys. Thank you. Thank you for the questions.
Suji DeSilva: Sounds like great progress all around. Thanks, David. Thanks, guys. Thank you, Suji.
Speaker Change: Okay, sounds like great progress all around. Thanks, David. Thanks, guys. Thank you, Suji.
Unknown Attendee: One move for the next question.
Operator: One moment for the next question. Our next question comes from the line of Chou Hsu from Need Ham and Co. Please go ahead.
Speaker Change: Thank you for the questions.
Speaker Change: One moment for the next question.
Chao Shu: Our next question comes from the line of Chao Shu from Nitham and Cole. Please go ahead. Hi, a couple of questions. The first one looks like you're implying a half of a half, largely flat for a second half of the year, but the shipment is probably higher in the second half. So just want to also want to clarify when you say a shipment and a second half of the year to grow, hopefully that's a half of a half comment or that's a sequential portal of a quarter comment. That's the first question. It's a half over half.
Speaker Change: Our next question comes from the line of Chou Hsu from Needham, Angkor. Please go ahead.
Chou Hsu: Hi, a couple of questions. The first one, looks like you are implying a largely flat rate for the second half of the year, but the shipment is probably higher in the second half. So just want to also clarify when you say a shipment in the second half of the year is going to grow. Hopefully, that's a half of a half comment or that's a sequential quarter of a quarter comment. That's the first question.
Chou Hsu: Hi, a couple of questions. The first one.
Chou Hsu: It looks like you are implying a half of a half, largely flat for the second half of the year, but the shipment is probably higher in the second half.
Speaker Change: So just want to also want to clarify, when you say a shift in the second half of the year to grow, hopefully that's a half of a half comment, or that's a sequential quarter of a quarter comment. That's the first question.
Steven Pelayo: It's a half over half. Yeah, we'd expect shipments to be higher in the second half than they were in the first half.
Mark Mckechnie: Yeah, we'd expect shipments to be higher in the second half than they were in the first half. Yeah, but any thoughts on the implied revenue guide for second half being largely flat versus the first half and how should the people think about this? Actually, revenue also second half is higher than first half, right? You look at the point of the new sections.
Speaker Change: It's a half over half. Yeah, we'd expect shipments to be higher in the second half than they were in the first half.
Steven Pelayo: Yeah, but any thoughts on the implied revenue guide for the second half being largely flat versus the first half and how should people think about Actually, revenue also second?
Speaker Change: Yeah, but any thoughts on the implied the revenue guide for second half being largely flat versus the first half and how should the people think about this?
Steven Pelayo: Actually, revenue in the second half is also higher than in the first half, right? You're looking at the middle point of the new sectors.
Speaker Change: Actually, revenue also second half is higher than first half, right? You look at our middle point of the new section.
Chao Shu: Okay, then the second question is about the capital allocation. Definitely, the ACM Shanghai is already paying a dividend to ACM Shanghai customers.
Chou Hsu: Okay, then the second question is about capital allocation. Definitely, ACM Shanghai is already paying a dividend to its customers. I wonder any thoughts on starting a dividend policy with the ACM research investors, and especially when ACM Shanghai is probably going to see the lockup expiry pretty soon.
Speaker Change: Okay, then the second question is about the capital allocation.
Speaker Change: Definitely, the ACM Shanghai is already paying a dividend to ACM Shanghai customers.
David Wong: I wonder any thoughts on starting a dividend policy with the ACM Research investors and especially when the ACM Shanghai probably going to see the long cup expiry pretty soon. Yeah, okay, good point, and we do have a dividend, right? And last year, and probably will continue this dividend of this building to all the events of ACM Shanghai, you know, for for for new future.
Speaker Change: I wonder any thoughts on starting a dividend policy with the ACM research investors, especially when the ACM Shanghai is probably going to see the long-term expiry pretty soon.
Steven Pelayo: Yeah, okay, good point. And we do have a dividend, right? And last year, and probably will continue this dividend dispute for all the events of ACM Shanghai, you know, for the near future. Then you talk about the lockup and of the ACM USA, you know, for their share in the China, Shanghai. I think in this moment, our still major business from Shanghai and ACM USA can definitely sell their share. However, you know, you can see there is a status right now; we're keeping our share, right? The reason is that we do have a dividend and also ACM USA has, you know, the cash going on. And there's no reason to sell our precious, you know, you know, share inside of China.
Speaker Change: Yeah, okay, good point. And we do have a dividend, right, and last year and probably will continue this dividend dispute into all the events of ACM Shanghai, you know, for near future.
Mark Mckechnie: Then you talk about the lock up and of the ACM USA, you know, for their share in China Shanghai. I think in this moment are still major business from Shanghai and the ACM USA definitely can sell their share. However, you know, you can see there are a starter right now while keeping our share right there. Is that we do have a dividend and also ACM USA have her, you know, the cash going on and there's no reason to sell our precious, you know, share inside of China.
David Wong: Sorry, David, just want to clarify why I say dividend; I mean the dividend for ACM USA shareholders, not the ACM Shanghai shareholder. Okay, okay, so the dividend we got from ACM Shanghai and will come to ACM USA. So this money, I think, where we reinvest into our, you know, marketing sell and also potential supporting and R&D and therefore all the purpose. Right, so this moment we believe the cash we got from dividend the best interest for the invasor USA is reinvest back to the business. Instead of just, you know, distribute dividend to their ACM USA master.
Chou Hsu: Sorry, David, just want to clarify that when I say dividend, I mean the dividend for ACM USA shareholders, not the ACM Shanghai shareholders.
Steven Pelayo: So the dividend we got from ACM Shanghai and will come to ACM USA, so this money, I think, will be reinvested into our marketing cell and also potential support and R&D, and for other purposes, right? So at this moment, we believe the cash we got from the dividend is the best interest for the investor in the USA to reinvest back into the business instead of just, you know, distribute dividends to their ACM USA investor. So we think that will be our major purpose for the dividend usage. Hey, Mark, anything you want to add to that? Yeah, I mean, Charlie, Charles, I think it's a good idea.
Speaker Change: So the dividend we got from ACM Shanghai and will come to ACM USA, so this money I think will be reinvested into our marketing cell.
Speaker Change: Right, so at this moment, we believe the cash we got from dividend, the best interest for the investor USA is reinvest back to the business.
Mark Mckechnie: So we think that's what we are major provost for the dividends of, you know, USA.
Mark Mckechnie: Mark, anyone add on that? Yeah, I mean, Charlie, I think it's an interesting question, but, you know, echoing what David says, we don't have any plans to pay a dividend from the U.S.
Mark: Yeah, I mean, Charlie, Charles, I think it's a, it's an interesting question, but, you know, echoing what David says, we don't have any plans to pay a dividend from the U.S.
Mark: Hey Mark, anything you want to add on that? Yeah I mean Charlie, Charles, I think it's a it's an interesting question but you know echoing what David says we don't have any plans to pay a dividend from the U.S.
Speaker Change: Thank you.
Operator: Thank you for the questions. One moment for the next question. Our next question comes from the line of Mark Miller from the Benchmark Company. Please go ahead.
Speaker Change: Our next question comes from the line of Mark Miller from the Benchmark Company. Please go ahead.
Mark Mckechnie: Let me say congratulations, another very good quarter, and again, you're probably the greatest growth stock that, at least in my universe, and hopefully the investors will respond to that more aggressively in the future. In terms of your e-vals going on, especially outside of China, can you give it a little more color in terms of the e-vals, in terms of what type tools and what countries? Okay, sure, Mark. At the end of this moment, and we do have a Canadian tool, right, as being go to a U.S. customer, we do have a two type of tools, why is there a SAPs, you know, a community, and another one is really backside, and also Beverly clean, right, in the same customer.
Mark Miller: Let me say congratulations, another very good quarter. Yeah, you're probably the greatest growth stock in my universe, and hopefully, the investors will respond to that more aggressively in the future. In terms of your evals going on, especially outside of China, can you give it a little more color in terms of evals in terms of what type of tools and what countries?
Mark Miller: Let me say congratulations, another very good quarter.
Mark Miller: Again, you're probably the greatest growth stock, at least in my universe, and hopefully the investors will.
Steven Pelayo: Okay, sure, Mark. At this moment, and we do have a cleaning tool, right, as we go to a US customer, we do have two types of tool. One is a SAP, you know, cleaning, and another one is really backside and also bevel clean, right, in the same customer. And recently, we've received another order from a Kota developer from the US, you know, Advanced Technology Hub. And also, we do have another evaluation tool, or SPO tool, in there from their European customer for the evaluation. Also, meanwhile, we're heavily engaged with a Korean customer for copper plating, right, and tool. That's in the demo status.
Speaker Change: Okay, sure, Mark. At this moment, we do have a Canadian tool, right, as being...
Speaker Change: I go to a U.S. customer, we do have two types of tools, one is a SAP cleaning and another one is rear to back side and also bevel clean, right, in the same customer.
David Wong: And recent was receiving another order from co-today developer from U.S., you know, at the wrong factory house. And also we do have also another evaluation tool, OSPO tool, and they're from their European customer in the evaluation. Also, meanwhile, we're having the engage with the Korean customer for cooperating, right, and tool. That's in the demo status, and hopefully quickly we can ship to their production for their final production evaluation. And also we're talking with our field customer in their Singapore, and also in the U.S. And they're talking about our new community capability, including Tivo, and Tahoe, and also our, I want to say that is a super critical CO2, and really with design for the ones that, you know, technology evaluation, especially for 3D clean, and also for so big at the clean.
Speaker Change: Recently, we are receiving another order from a COTA developer from the U.S. Advanced Technology House.
Speaker Change: and also we do have also another evaluation tool or SPO tool in there from their European customer in the evaluation.
Speaker Change: Also, meanwhile, we're heavily engaged with a Korean customer for copper plating, right, and tool. That's in a demo status, and, you know, hopefully, quickly, we can ship to their production line for their final production evaluation.
Steven Pelayo: And, you know, hopefully, quickly, we can ship them to their production for their final production evaluation. And also, we're talking with a few customers in Singapore and also, you know, in the US to talk about our new cleaning capability, including Thiebaud and Tahoe, and also our, I want to say that is a supercritical CO2, which was really designed for advanced technology evaluation, especially for 3D cleaning, and also for acid cleaning. So that kind of also a powerful cleaning tool we're engaging with multiple customers.
Speaker Change: And also we're talking with a few customers in Singapore.
Speaker Change: and also, you know, in the U.S. and talk about our new cleaning capability, including T-Bow.
Speaker Change: I want to say that our supercritical CO2 is really designed for
Speaker Change: advance their, you know, technology evaluation, especially for 3D cleaning.
David Wong: So that kind of are also a powerful community tool, what engage with the multiple customer right now.
Speaker Change: and also for, so they can act as a clean. So that kind of also a powerful convenient tool when engaging with multiple customers right now.
Chao Shu: Okay, in terms of your margin guidance, the margins have been certainly above the target range for guiding the margins being at the top of them kind of range.
Mark Miller: Okay, in terms of your margin guidance, the margins have certainly been above the target range for guiding, the margins being at the top of the guiding range. I assume that implies that your backlog, the margins of the tools in the backlog are at or above your target range.
Speaker Change: Okay, in terms of your margin guidance, the margins have been certainly above the target range regarding the margins being at the top of the guiding range. I assume that implies that your backlog, the margins of the tools in the backlog are at or above your target range.
Mark Mckechnie: I assume that implies that your backlog, the margins of the tools in the backlog, are at or above your target range.
Mark Mckechnie: Mark, do you want to answer that? That's right, Mark. I mean, you know, we mentioned that, you know, for the year of gross margins would be above the normal 40 to 45% range, really because they were, you know, stronger above the range for the first half of the year. And the rest of the year, we're expecting them to be at the upper end of our range. And so, yeah, I mean, our visibility on the margin profile for the end of the year is pretty good.
Mark: Mark, you want to answer that? That's right, Mark. I mean, you know, we met.
Mark: That's right, Mark. I mean, you know, we mentioned that, for the year, our gross margins would be above the normal 40 to 45% range because they were, you know, stronger above that range for the first half of the year. And for the rest of the year, we're expecting them to be at the upper end of our range. And so, yeah, I mean, our visibility on the margin profile for the end of the year is pretty good. Thank you.
Speaker Change: Mark, you want to answer that?
Speaker Change: That's right, Mark. I mean, you know, we mentioned that, you know, for the year, our gross margins would be above the normal 40 to 45% range really, because they were, you know, stronger.
Mark: Above the range for the first half of the year and the rest of the year, we're expecting to be at the upper end of our range. And so, yeah, I mean, our visibility on the margin profile for the end of the year is pretty good.
Mark Mckechnie: Thank you. Thank you for the questions.
Mark: Thank you.
Operator: Thank you for your questions. Once again, to ask a question, please press star 11 and wait for a name to be announced. One moment for the next question. The next question comes from the line of Robert McKay from Blue Lotus. Please go ahead.
Unknown Attendee: Once again, to ask questions, please press star 11, and we have a friend named to be in there.
Speaker Change: Thank you for your questions. Once again, to ask a question, please press star 11 and wait for a name to be announced.
Unknown Attendee: What moment for the next questions?
Robert McKay: Next questions comes from the line of Robert McKay from Blue Lotus. Please go ahead. David, thanks for taking my question. Am I coming in clearly? Yes, Robert V. Okay, great.
Robert McKay: Hey there, thanks for taking my question. Am I coming in clearly?
Operator: Yes, Robert, please. Great. Okay, great.
Speaker Change: Hey there, thanks for taking my question. Am I coming in clearly?
Robert McKay: So I have a bit of a touchy question, and I think it might be important. I was wondering if we've evaluated, if there's any, you know, there's been some discussion regarding some further restriction on, you know, Chinese companies. I was wondering if there might be, if we've evaluated, we know what kind of impact there might be if that unfortunately does come through. And, you know, what our thoughts are on that, if there's anything we can talk about in that respect.
Robert McKay: So I have a bit of a touchy question. And I think it might be important. If I was wondering if we've evaluated, if there's any, you know, there's been some discussion regarding some further restriction on, you know, Chinese companies, I was wondering if there might be, if we've evaluated, we know what kind of impact there might be. If that unfortunately does come through and, you know, what, what thoughts are on that? This is anything we can talk about in that respect? You talk about this new, new rule for the export control, you know, new me?
Speaker Change: I think it might be important is I was wondering if we've evaluated, if there's any...
Robert McKay: you talk about this new new rule for their export control. Is that what you mean? Yes, exactly.
Speaker Change: You talk about this new new rule for the export control, is that what you mean? Yes, exactly. Okay, well, I mean, again, right, we just heard some, you know, real market there, you know, rumor. Well, carefully, you know, I should say, you know,
David Wong: Yes, exactly. Okay, well, I mean, again, right, we each other heard some, you know, real, their market, their, you know, rumor, we're carefully, you know, watch out, the new rule come out. And we're ACM definitely will follow the law, right? And there's the USA law and follow Chinese law with the international business. And, you know, well, we're carefully in this moment, no speculator. But I would say the, you know, something come out is only not only ACM, right? A lot of U.S. Company got impacted too. So we just want to watch out what's going on to, you know, to whatever adjustment based on the new regulatory come out.
Steven Pelayo: Okay, well, I mean, again, right, we just heard some, you know, real news about their market, their, you know, rumor. Well, carefully, you know, I should say, you know, watch out for the new rule when it comes out. And where ACM definitely will follow the law, right and USA law, and follow Chinese law with international business, and you know, we're careful at this moment, no speculator. But I will say that if something comes out, it's not only ACM, right? A lot of US companies got impacted too, so we just want to watch out what's going on to, you know, whatever adjustment based on the new regulatory environment.
Speaker Change: Watch out the new rule come out and where ACM definitely will follow the law right and USA law and follow Chinese law with the international business.
Speaker Change: You know, while we're covering him at this moment, no speculator.
Speaker Change: But I will say that if something comes out, it's not only ACM, right? A lot of U.S. companies got impacted, too.
Speaker Change: So we just want to watch out what's going on.
Mark Mckechnie: Okay, I would add to that is, you know, we take a deep step back and we look at the China WFE. You know, I think David's view on WFE in China is that pretty stable for this year? And, you know, for the years to come that, you know, the country will continue to invest in their production capacity. And so, you know, we'll, we'll, like David mentioned, we'll monitor the, the, the any of the new regulations; of course, will follow the rules. But, you know, we generally anticipate WFE in China to remain pretty stable.
Mark: I would add to that, you know, we take a deep step back and we look at the Chinese WFE. You know, I think David's view, our view on WFE in China, is, is that pretty stable for this year? And, you know, for the years to come, the country will continue to invest in its production capacity. And so, you know, Well, like David mentioned, we'll monitor any of the new regulations, and, of course, we'll follow the rules. But, you know, we generally anticipate WFP in China to remain pretty stable.
Speaker Change: Maybe the only thing I would add to that is, you know, we take a deep step back and we look at the China WFE, you know, I think David's view, our view on WFE in China.
Speaker Change: Well, like David mentioned, we'll monitor any of the new regulations, of course we'll follow the rules, but we generally anticipate WFE in China to remain pretty stable.
Robert McKay: Got it. Thanks. Thanks for the clarity.
Robert McKay: Got it. Thanks. Thanks for the clarification. In terms of our supply chain, then, is there any, you know, potential impact on the supply chain if there is, if there are any of these, if any of these rumors do come to fruition?
David Wong: In terms of our supply chain, then, is there any, you know, potential impact supply chain if there is, if there is any of these, if any of these rumors do come to fruition? Supply chain this moment, I see their, you know, stable right now, right? Obviously, we're looking for all different kind of supply chain, you know, and for mature product, we still buy U.S. components. And for whatever the month knows, we have been using, you know, non-USA parts. And this moment was looking for their multiple supply chain, those, you know, in their other country, also inside of China, we also qualified a local player of the components.
Speaker Change: Got it. Thanks. Thanks for the clarity. In terms of our supply chain, then, is there any, you know, potential impact supply chain if there is, if there is any of these, if any of these rumors do come to fruition?
Steven Pelayo: Supply chain, at this moment, I see they're pretty stable right now, right? Obviously, we're looking for all different kinds of supply chains, you know, and for mature products, we still buy U.S. components, but for whatever, as long as we have to use non-U.S. parts. And at this moment, we're also looking for multiple supply chains, both in other countries and also inside of China. We have qualified a local player for the components. So we definitely have, you know, a plan to secure our supply chain. And when there's any, you know, a new regulatory comes out, and we can, you know, quickly switch to another alternative choice in the supply chain.
David Wong: So, we definitely have, you know, a plan to secure a supply chain. And when there any, you know, a new regulatory come out, and we can, you know, quickly switching to other, other alternative choice of the supply chain.
Speaker Change: So, we definitely have a plan to secure our supply chain and when a new regulatory comes out we can quickly switch to other alternative choices of the supply chain.
Robert McKay: Chan. Okay, God, God, it makes a lot of sense. So you have some backups; that's very good to hear.
Robert McKay: Okay, got it. That makes a lot of sense. So you have some backups.
Speaker Change: Okay, got it. That makes a lot of sense. So you have some backups. That's very good to hear. And then I had one more question, I think is related to the private offering that we announced in January . I think we were going to some private offering with our Shanghai shares.
Robert McKay: And then I had one more question I think is related to the private offering that we announced in January. I think we were going to some private offering with our Shanghai shares. I was just wondering if we have any update in regards to the into that private offering, if there's any progress on that front. And when we get to hear more about it. Yeah. Actually, you know, we're in a process for the final formal application, right? But we know that there are a proving process in the second offering in China; we're taking time. We estimate probably six in amounts even longer.
Speaker Change: I was just wondering if we have any update in regards to that private offering, if there's any progress on that front.
Robert McKay: That's very good to hear. And then I had one more question, which I think is related to the private offering that we announced in January. I think we were going to some private offering with our Shanghai shares. I was just wondering if we have any update in regards to that private offering, if there's any progress on that front? And when will we get to hear more about it? Yes, actually, you know, we're in the process of making the final formal application, right.
David Wong: So our, you know, our permission probably we're expecting middle of next year. We might be gathered. And then within another one year of the permission we got, then we can, you know, probably see the second offering based on market situation. And obviously, and we're expecting that time, we got our PSVD and the track system and also foreigners, including our panel packaging tool, getting the market. So we're choosing the right time, and they're all right; they're in a pricing to raising our second fund.
Speaker Change: So our, you know, our permission probably we're expecting middle of next year, we might be guided. And then within another one year of the permission we got, then we can, you know, probably receive a second offering based on market situation.
Robert McKay: But we know that their approving process for the second offering in China will take time, we estimate probably six, eight months, even longer. So our, you know, our permission, probably we're expecting middle of next year, we might be guided. And then within another one year of the permission we got, then we can, you know, probably see the second offering based on the market situation. Now, obviously, I know we're expecting that time when we got our PCBD and the track system and also foreigners, including our panel packaging tool, to get the market.
Robert McKay: Okay. That makes a lot of sense. Thanks.
Robert McKay: So we're choosing the right time and, or rather, you know, pricing to race in our second fund. Okay, that makes a lot of sense. Thanks. And then I had one more question. It was just about if we have any new products that we can look forward to in the second half of this year or in early 2025 that we can think about, or should we just wait until the announcement? Well, obviously.
David Wong: And then I had one more question. It was just about if we have any new products that we can look forward to in the second half of this year, or in early 2025 that, you know, that we can we can think about, or should we just wait until the announcement? Well, obviously, we're announced already, right? I mean, that's cute too. We're not too proud already. So I want to say, we're continuing, you know, exploring a new product. And obviously, like this panel, right, we're announced too, or still welcome their additional other type of the panel product.
Speaker Change: Okay, that makes a lot of sense. Thanks. And then I had one more question. It was just about if we have any, you know, new products that we can look forward to in the second half of this year or in early 2025 that, you know, that we can we can think about or should we just wait until the announcement?
Steven Pelayo: Well, obviously, we've announced two products already this Q2, right? I mean, this Q2, we announced two products already this quarter. So, I want to say we'll continue, you know, exploring a new product. And obviously, like this panel, right? We announced two. We'll still work on the additional other types of panel products for this year. And probably we're going to announce another, you know, new product when it gets ready. Meanwhile, I still say we're still focusing our major focus on RUZC, what they're doing right now.
Speaker Change: So I want to say we'll continue, you know, exploring a new product and obviously like this panel, right, we're announced to still work on the additional other type of the panel product and for the
David Wong: And for their, for this year, and probably we can announce another, you know, new product when they, when it got already. Meanwhile, I still say, we're still major folks on our EZC, what they're doing right now, you know, cleaning, cooperating, furnace, and especially the furnace AOD and track and the PSVD. So our new product probably still, you know, along this major technology and also the product. We're not going to develop all other new, which is a completely new, more than this category I mentioned.
Speaker Change: Meanwhile, as they'll say, we're still major focus on RUZC, what they're doing right now, you know, cleaning, copper plating, furnace.
Steven Pelayo: You know, cleaning, cover plating, furnace, and especially the furnace ALD and track and the PCBD. So, our new product probably is still, you know, along this major technology and also the product. We're not going to develop another new product, which is completely new, more than this category I mentioned.
Robert McKay: Got it. That's very clear. Thank you very much. And also great results. And according to the touchy questions, but thank you very much. Yeah. Thank you, Robert. Thank you for the questions.
Robert McKay: Got it. That's very clear. Thank you very much. And also, great results. And sorry for the touchy questions, but thank you very much. Yeah. Thank you, Robert.
Operator: Thank you for the questions. Once again, to ask a question, please press star 1. There are no questions at this time. I would like to call on the participants for closing remarks.
Unknown Attendee: Once again, to ask questions, press star one link. Yeah, no questions at this time.
Unknown Attendee: I'll ask you for the additional closing remarks. Okay. Thank you, operator. And thank you all for participating on today's call.
Steven Pelayo: Okay, thank you, operator. And thank you all for participating in today's call and for your support. Before we close, Stephen is going to mention our upcoming investor relations events. Stephen, please.
Speaker Change: Okay, thank you, operator, and thank you all for participating on today's call and for your support. Before we close, Steven is going to mention our upcoming investor relations events. Steven, please.
Steven Pelayo: And for your support, before we close, Stephen is going to mention our upcoming Investor Relations events. Stephen, please.
Stephen: Thanks, David. Before we conclude, I just want to give everyone a quick reminder about our upcoming investor conferences. On August 27th, we will present at Jeffrey's Semiconductor IT, Hardware, and Communications Technology Summit at the Four Seasons Hotel in Chicago, United States. On September 4th, we will present at the Benchmark 2024 TMT Conference in New York City. Attendance at the conference is by invitation only. For interested investors, please contact your sales representatives to register and schedule one-on-one meetings with the management team. This concludes our call, and you may now disconnect. Bye-bye.
Steven Pelayo: Thanks, David. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On August 27th, we will present a Jeffery Semiconductor IT hardware and communications technology summit at the Four Seasons Hotel in Chicago and the United States. On September 4th, we will present at Benchmark 2024 TMT conference in New York City. Attendance at the conference is by invitation only for interested investors. Please contact your representative sales representatives to register and schedule one-on-one meetings with the management team.
Steven Pelayo: Thanks, David. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On August 27th, we will present at Jeffrey's Semiconductor IT
Steven Pelayo: Hardware and Communications Technology Summit at the Four Seasons Hotel in Chicago.
Steven Pelayo: We will present at Benchmark 2024 TMT Conference in New York City. Attendance at the conference is by invitation only. For interested investors, please contact your sales representatives to register and schedule one-on-one meetings with the management team. This concludes our call, and you may now disconnect. Bye-bye.
Unknown Attendee: This concludes our call, and you may now disconnect. Bye-bye.
Speaker Change: www.acmresearch.com