Q4 2024 Nova Ltd Earnings Call
Speaker Change: [music].
Good day and Volta.
For a limited fourth quarter and full year 2024 results conference call.
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Mary Steve: I would now like to turn the conference over to Mary Steve All C. O M. S. IR. Please go ahead.
Speaker Change: Thank you operator, and good day to everybody I would like to welcome all of you to Nova's fourth quarter and full year 'twenty 'twenty four financial results conference call.
Speaker Change: With us on the line today are <unk>, President and C O N guy keep their CFO before.
Speaker Change: Before we begin I would like to remind our listeners that certain information provided on this call may contain forward looking statements and the safe Harbor statement outlined in today's earnings release also pertains to this call.
Speaker Change: Have not received a copy of the release. Please view it in the Investor Relations section of the company's website.
Speaker Change: Gaby will begin the call with a business update followed by Guy with an overview of the financials. We will then open the call for the question and answer session. I'll now turn the call over to Gabby Weissman, <unk>, President and CEO Gabby. Please go ahead.
Gabby Weissman: Thank you Mary and thank you all for joining us today.
Gabby Weissman: I will start the call by summarizing our fourth quarter and full year performance highlights.
Gabby Weissman: Following my commentary.
Gabby Weissman: I will review the quarterly and annual financial results in detail.
Nova ended the fiscal year on a high note with record revenue and profitability.
Gabby Weissman: Outperforming industry indices.
Our revenues grew 30% year over year and reached $672 $4 million, while non-GAAP net income grew 38%.
Gabby Weissman: We have cemented our position across multiple device segments and achieved numerous milestones across our product lines, including strategic penetrations into leading manufacturers.
Gabby Weissman: And evolving position in new segments, and our growing market share.
Gabby Weissman: Our agile operational model and strategic focus continues to generate value to our shareholders, enabling us to drive higher profitability, while relentlessly growing our business.
Gabby Weissman: Our performance this year was driven by our materials metrology solutions record sales cut.
Gabby Weissman: Coupled with a growing adoption across market segments.
Gabby Weissman: Additionally, the growing revenue from advanced packaging processes underscores the importance of our dimensional and chemical metrology solutions.
Gabby Weissman: This broad based growth highlights the strength of our diversified portfolio and our ability to capitalize on multiple market opportunities.
Gabby Weissman: Uh huh.
Gabby Weissman: Turning to the fourth quarter record results and our sixth consecutive quarter of growth.
Gabby Weissman: We said, we exceeded the top end of our guidance in revenue and non-GAAP profitability.
Gabby Weissman: Our record quarterly revenue was driven by the robust sales of the Vera Flex, Alex fun and metro on platforms.
Gabby Weissman: This success was augmented by record sales or Dimensionalize Standalone OCD solutions.
Gabby Weissman: So heightened demand due to their unique capabilities.
Gabby Weissman: Gate, all around and advanced packaging applications.
Gabby Weissman: These results underlying our ability to meet the evolving needs of our customers and maintain our competitive edge in the market.
Gabby Weissman: Looking forward nobody is poised to leverage the transition into advanced manufacturing processes and architectures.
Gabby Weissman: We expect a growing exposure to new market segments, and our differentiated portfolio to drive sustained growth into 2020 five continuing the momentum we have built.
Gabby Weissman: The surge in AI related demand has been a significant driver of our market.
Gabby Weissman: Is it necessitates energy efficient computing power and accelerates the demand for advanced processing nodes and memory solutions.
Gabby Weissman: Our customers are leading the transition to freely architectures, which translate into multiple catalysts for our business, including larger and more complex dies that require a growing number of wafers at a higher number of layers and a leap in the number of process steps at the much smaller tolerance.
Gabby Weissman: Error.
Gabby Weissman: The increasing complexity drives the need for high quality metrology solutions, which Nova is well positioned to provide.
Gabby Weissman: Let me share some highlights from 2024 and the recent quarter.
Gabby Weissman: First we are encouraged by the broad adoption of Nova comprehensive portfolio across cable around and high bandwidth memory processes.
Gabby Weissman: Leading foundry logic and memory manufacturers are increasingly integrating multiple novel solutions from our optical dimensions materials and chemical metrology portfolio.
Gabby Weissman: This widespread adoption underscores our ability to address the complex metrology challenges associated with manufacturing the most advanced semiconductor nodes.
Speaker Change: Oh, a unique solutions for two and a half and freely structure application, a pivotal and enabling our customers to achieve the precision and efficiency required for current and next generation technologies.
Gabby Weissman: Yeah.
Gabby Weissman: Our advanced packaging revenue more than doubled this year, reaching 15% of product revenue and suddenly find its growing importance to nova.
Gabby Weissman: Our integrated metrology solutions have been adopted by four of the top five advanced packaging manufacturers, while a standalone OCD market share in this segment grew significantly.
Gabby Weissman: With the recent addition of Centronics, we expect our revenues of advanced packaging to grow further.
Gabby Weissman: And chronic modular dimensional metrology technology will enable us to diversify our offering into the rapidly growing field of advanced wafer level packaging and specialty devices and.
Gabby Weissman: And into additional wafer sizes and types beyond 300 millimeter silicon wafers.
Gabby Weissman: Along with Nova's optical CD Standalone and integrated metrology, we can offer customers a rich portfolio for critical applications in both backend and front end fabrication processes.
Gabby Weissman: Centronics built highly modular multi sensor platforms with proprietary sensors and software that extends the range of applications we control.
Gabby Weissman: Some key example that are critical to advanced packaging includes total thickness variation topography is full roughness measurements and wafer bow and we'll pitch.
Gabby Weissman: Following the deal closing announced last month. The post merger integration teams are working diligently to tightened collaboration and align activities, while maintaining focus on execution, we think delivery timelines and business school.
Gabby Weissman: Now let me review some of the highlights from our product Division.
Gabby Weissman: The dimensional metrology division, our integrated metrology and new market share in multiple segments, including advanced packaging and H B M, expanding our Tam and securing our market leadership.
Gabby Weissman: Our Standalone OCD solutions had a record year and increased our market share driven by higher demand from number of numerous customers due to their high productivity precision and unique offering.
Gabby Weissman: The Nova PRIZM platform sales grew at high double digits. This year over year with multiple engagements with both front end and advanced packaging customers.
Gabby Weissman: Yeah.
Gabby Weissman: To meet market demand, we recently launched the Nova velocity. The next generation of the successful high productivity platform MSR.
Gabby Weissman: Driven by increasing demand for productivity and yield improvements velocity features a unique dual chamber configuration that enables the highest productivity and standalone tools in the market.
Gabby Weissman: The platform's speed and robustness have been at deciding factor for a leading logic manufacturer who adopted the platform and he is expected to purchase multiple tools.
Gabby Weissman: These achievements highlight our ability to deliver innovative solutions that cater to the needs of our customers.
Gabby Weissman: Next our materials metrology portfolio delivered record quarterly and annual results.
Gabby Weissman: As we shared in early January the metric on platform was adopted by a leading global memory customer for its most advanced DRAM R&D as well as DRAM and NAND high volume manufacturing lines.
Gabby Weissman: Metro was selected based on its ability to perform full wafer measurements of epitaxial layers with high sensitivity and precision.
Gabby Weissman: We expect to receive additional orders from this customer.
Gabby Weissman: In addition, the platform is currently being evaluated by two of the top five customers in memory and logic and we anticipate receiving orders from them later this year.
Gabby Weissman: Yeah.
Gabby Weissman: The Vera flex platform, so a market transition and broad adoption of its fourth generation, becoming the tool of record for several leading foundry and memory customers.
Gabby Weissman: De Novo at leaps on platform performed well this year would repeat orders from a leading memory customer and penetrating to two new major customers.
Gabby Weissman: Looking ahead, we have strategic foundry is already planning to use the platform for strain and material concentration measurement.
Gabby Weissman: The performance of our materials metrology portfolio.
Gabby Weissman: Attests to the value of our solutions and their critical role in advanced semiconductor manufacturing.
Gabby Weissman: Our chemical Metrology Division had a record growth year at the high double digit rates.
Gabby Weissman: Significant highlights include the ankle seen market share growth and front end customers and the ankle is a proliferation with memory customers for H b.
Gabby Weissman: Additionally, we have ongoing evaluations with memory and foundry customers, which we expect to materialize later this year.
Gabby Weissman: Finally, our service division delivered another record quarter and year with 2024 revenues growing 19% year over year, driven by increasing demand for capacity and yield improvements.
Gabby Weissman: In terms of market outlook, our industry continues.
Gabby Weissman: Our board momentum driven by end market demand for mobile and AI and the investments in building, a matching capacity and advanced logic nodes DRAM and advanced packaging.
Gabby Weissman: We expect double your feet to grow at mid single digits. This year, driven by leading edge demand.
Gabby Weissman: In summary, our well established fundamental will help us increase the exposure to additional opportunities in adjacent markets and processes, new customers and new critical application.
Gabby Weissman: Our strategic priorities remain intact with continuous investment in our long term roadmap and by partnering with our customers across all territories.
Gabby Weissman: In 2025, we expect to capitalize on the opportunities created by our enhanced market position continue our growth trajectory and outperformed W. P.
Gabby Weissman: We will elaborate on our strategy and vision at the upcoming virtual Investor Day on March 17, and we look forward to seeing you all there.
Gabby Weissman: Now for some more details on our financials, let me hand over the call to guide.
Speaker Change: Thanks, Gabby good day, everyone and thank you for joining our 2020 for fourth quarter Conference call.
Speaker Change: I will begin by reviewing our financial achievements for the fourth quarter of 2024.
Then summarize our performance for the full year and finally provide guidance for the first quarter of 2025.
Speaker Change: In the fourth quarter of 2024 total revenue reached a record high of 194 point to $8 million make.
Speaker Change: Make it is the third consecutive quarter of record breaking results.
Speaker Change: This performance exceeded the company's guidance, reflecting a 9% quarter over quarter.
Speaker Change: Increase in 45% growth year over year.
Speaker Change: These achievements demonstrate our strong ability to anticipate the capture and respond to evolving market demand.
Speaker Change: Product revenue distribution was approximately 72% from logic and foundry and approximately 28% for memory.
Speaker Change: Product revenues included three customers and fourth territories, which contributed each 10% or more to product revenues.
Speaker Change: In the fourth quarter blended gross margin aligned with our guidance.
Speaker Change: <unk>, 56% on an on the GAAP basis, and 58% on a non-GAAP basis.
Speaker Change: Well within our target model range of 57% to 15, 9%.
Speaker Change: Operating expenses increased to $54 $5 million on a GAAP basis and $48 nine on a non-GAAP basis.
Speaker Change: A significant portion of the increase it was directed towards expanding our R&D efforts, ensuring we stay ahead in innovation and technology leadership.
Speaker Change: Operating margin in the fourth quarter reached 28% when they get basis and 33% on a non-GAAP basis.
Speaker Change: Surpassing the upper range of our target model of 27% to 31%.
Speaker Change: The effective tax rate in the fourth quarter was approximately 15%.
Speaker Change: Earnings per share in the fourth quarter on a GAAP basis were $1.58 per diluted share.
Speaker Change: And the earnings per share on a non-GAAP basis were $1.94 per diluted share exceeding.
Speaker Change: Exceeding the high end of our fourth quarter guidance.
Speaker Change: Moving on the annual results for the calendar year 2024.
Speaker Change: Revenue increased 30% year over year in.
Speaker Change: In a year, where the industry experienced moderate growth our ability to scale at this space demonstrate the strength of our business model the value, we bring to customers and the effectiveness of our long term strategy.
Speaker Change: The geographic revenue split in 2024 was as follows.
Speaker Change: China was 13, 9%, Taiwan was 20% Korea was 18%.
Speaker Change: <unk> was 14% and other territories contributed the remaining 9%.
Speaker Change: Gross margin for the year came in at 58% when they get basis and 59% on a non-GAAP basis.
Speaker Change: At the high end of the company target model of 57% to 59%.
Speaker Change: Despite cost pressures and the industry wide supply chain dynamics, we maintained robust profitability through operational efficiencies pricing discipline and continued focus on higher value solutions.
Speaker Change: Operating margin for the year came in at 28% when they get basis and 33% on a non-GAAP basis.
Speaker Change: Earnings per diluted share on an annual basis came in at $5.75 on a GAAP basis.
Speaker Change: And $6.69 on a non-GAAP basis.
Speaker Change: Achieving a record high EPS this year underscore our ability to drive profitable growth by effectively converting top line extension into bottom line value.
Speaker Change: Our disciplined approach to execution operational efficiencies and strategic investments has allowed us to scale well maintained strong financial performance.
Speaker Change: This milestone reflects the strength of our business model and our commitment to deliver sustained value to our shareholders.
Speaker Change: Turning to the balance sheet, we ended 2024 with $820 million in cash cash equivalents bank deposits and marketable securities.
Speaker Change: During 2024, the company generated 218 million in free cash flow.
Speaker Change: And presented healthy parameters related to working capital management.
Speaker Change: In addition, the company deployed approximately $48 5 million in cash as follow.
Speaker Change: Approximately $30 million was deployed for share buybacks and approximately $18 5 million was deployed to facilitate the early conversion of 9% of our outstanding convertible notes.
Speaker Change: With the Paramount paid in cash and the remaining balance settled in shares.
Speaker Change: At the end of January 2025, we completed the acquisition of Syntonic metrology.
Speaker Change: Deploying approximately $60 million in cash for the transaction.
Speaker Change: As a result, centronics financial results will be consolidated into Nova to Nova starting in February 2025.
Speaker Change: The acquisition aligns with our strategic growth priorities and we expect it to be accretive on a non-GAAP basis within 12 months.
Speaker Change: Our guidance reflects the impact of this combination.
Speaker Change: Now, let's move to our guidance, which factors in the acquisition.
Speaker Change: We currently expect revenue for the quarter to be between $205 million and $215 million.
Speaker Change: Earning per diluted share to range from one dollar and 75 cents to one dollar and 91 cents.
Speaker Change: non-GAAP, earning per diluted share to range from $2 to $2.16.
Speaker Change: At the midpoint of our first quarter 2025 estimates we anticipate the following.
Speaker Change: Gross margins of approximately 57% on a GAAP basis, and approximately 59% on a non-GAAP basis.
Speaker Change: Operating expenses on a GAAP basis to increase to approximately $60 million.
Speaker Change: Operating expenses on a non-GAAP basis to increase to approximately 50 $54 million.
Speaker Change: Financial income on a non-GAAP basis to remain similar to that of the fourth quarter.
Speaker Change: Effective tax rate is expected to be approximately 15%.
Speaker Change: With that we will be pleased to take your questions.
Speaker Change: Operator.
Speaker Change: We will now begin the question and answer session.
Speaker Change: Can I ask a question you May press Star then one on your telephone keypad.
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Speaker Change: We will pause momentarily.
Speaker Change: Assembler roster.
Speaker Change: The first question comes from Jeff.
Speaker Change: <unk> with Citi. Please go ahead.
Speaker Change: Hi, Thank you for taking my questions and nice results.
Gabby Weissman: Gabby is the first question on advanced packaging and so you doubled your sales last year to 15% of product sales I assume.
Gabby Weissman: Sales were driven by your uncle's neutral chemical metrology products.
Gabby Weissman: Can you talk about your aspirations or advanced packaging sales for the current year.
Gabby Weissman: Definitely thank you so much for the question. So first of all the advanced packaging had contribution from both our chemical metrology division as well as the dimensional metrology Division.
Gabby Weissman: We have our integrated metrology in all of the top five advanced packaging manufacturers and we have a significant adoption of our prison Standalone OCD platform.
Gabby Weissman: It's a it's both divisions contributed to this to this growth.
Gabby Weissman: And we do expect this year to expect to continue and grow by a double digit growth.
Gabby Weissman: Great.
Gabby Weissman: Another.
Gabby Weissman: Excuse me one more thing that with your permission I'd like to add is that with the addition of centronics, we do expect AR to fuel our growth as we are as we move in.
Gabby Weissman: With this platform to additional customers and grow their adoption over there as well.
Gabby Weissman: Great and one for Guy on the services' growth last year, a very strong 19% growth.
One of your peers have talked about a more muted.
Gabby Weissman: This is growth this year, primarily because of a 200 millimeter equipment slowdown in China. So that you can talk about.
Gabby Weissman: The services growth outlook for this year as well as any impact from the restrictions that came on late last year to either services or system sales this year.
Speaker Change: Yes of course, so this year as you mentioned the service businesses grew by 19%. This growth was fueled also by increasing utilization of the tools in 2024 compared to 2023.
Speaker Change: When were looking head our model assumed for the service to grow between 10% to 15% and this is what we expect for 2025 months ago.
Speaker Change: And the impact from restrictions.
Speaker Change: We don't see a significant impact at all on the services from the restriction part.
Speaker Change: Thanks.
Speaker Change: The next question comes from Vivek Arya with Bank of America. Please go ahead.
Speaker Change: Hi, This is Dr. Feng Zhang on behalf of Quebec, Hi, Thanks for taking our question.
Speaker Change: On memory versus foundry logic I'm curious, how you are thinking about the demand.
Speaker Change: Into 2025, and which segment do you expect to grow faster. Thank you.
Speaker Change: Thank you. So we do expect the advanced logic and advanced packaging to lead the pack in the 2025.
Speaker Change: The growth are we definitely see the.
Speaker Change: H B M segment as part of the advanced packaging growing with the metrology intensity as well, but the bottom line is it's definitely advanced logic and advanced packaging.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: And then one on gross margins obviously.
Speaker Change: A recovery into Q1.
Speaker Change: But that's also at the high end of your long term range. So could you talk about the drivers that are.
Speaker Change: Driving the expansion in Q1, and then what would it take for you to reach above that 60 point 60 per standpoint again. Thank you so much.
Speaker Change: So our gross margin, we remain committed to our target model and believe that a given the business dynamics, we anticipate heading into 2025.
Speaker Change: We will continue to demonstrate strong gross margins.
Speaker Change: Our ability to sustain healthy gross margins reflect the value, we bring to our customers through differentiated technology and strong execution and operational efficiencies.
Speaker Change: While there may be some quarter to quarter fluctuation due to product mix and market dynamics and market conditions. We are confident that our long term margin portfolio remain intact.
Speaker Change: So as we mentioned before.
Speaker Change: The quarter over quarter changes can fluctuate mainly due to product mix, but on the annual basis, we will we will be in our target model.
Speaker Change: Reaching a above 60% eh is a.
Speaker Change: Challenging, but it's a it's a the main unknown is basically how successful will be with the new product and so forth. So.
Speaker Change: Our model is dictates the end reflects the current business dynamics that we have.
Andrew: The next question comes from Andrew <unk> with Jefferies. Please go ahead.
Andrew: Hi, Thanks for taking my questions two quick ones, one we're seeing HBM.
Speaker Change: Two different kinds of stories out of your peers, how do you see the competitive market and capacity built there and then the second is China, obviously, you guys have a pretty high.
Speaker Change: The amount of revenue coming from China, What do you see there kind of long term is a lot of your peers are seeing that come down. Thank you.
Speaker Change: So in terms of H band. So first of all are we see advanced packaging growing very significantly for us, whereas the infant stages with regards to dimensional metrology portfolio and the majority of our business with advanced packaging at the moment is the logic side.
Speaker Change: The a two and a half the architectures, but there's definitely buildup on the H B M and as I mentioned.
Speaker Change: The process control intensity is growing over there as well, which means that we have a a higher.
Speaker Change: Appeal to both our chemical and dimensional portfolio. So we do see growth in our high bandwidth manufacturing as well could you repeat the question about China.
Speaker Change: Yeah, just you guys have pretty high China exposure and a lot of your peers are seeing their China exposure come down.
Speaker Change: And some of these <unk>.
Speaker Change: Sales come off just want to know what youre seeing in China and.
Speaker Change: That's for all 25.
Speaker Change: Sure. So in 2020 for the China share of our overall sales was a 39% our strength there is in line with our industry peers and due to the fact that the growth. This year will come from our advanced nodes, we see.
Speaker Change: The share of China are declining.
Speaker Change: Thank you.
Speaker Change: The next question comes from.
Speaker Change: Sure I'd say with Evercore ISI. Please go ahead.
Speaker Change: Hi, Ken.
Speaker Change: Okay.
Okay.
Speaker Change: Okay.
Speaker Change: Yeah quite can be ashamed.
Speaker Change: Thank God exactly what do you expect.
Speaker Change: What I think will take a while ago and then what.
Speaker Change: Look the margin.
Speaker Change: Oh yeah.
Speaker Change: This portfolio.
Speaker Change: When somebody asked me chemical me hopefully.
Speaker Change: So the line was a bit broken for that so I hope I understood. The question correctly, but overall centronics last year had about 10% of the $200 million Tam the market. Our first quarter forecast already includes the revenue from the relative period centronics several rip.
Speaker Change: On the Nova.
Speaker Change: We closed the deal on January 30th.
Speaker Change: We do expect an upside to materialize as we progressed with the post merger integration and we are very enthusiastic by the level of engineering with seeing the solutions and the fast growth.
Speaker Change: Centronics our main markets.
Speaker Change: And regarding the question about the financial model, So centronics Elia aligned well with our financial model.
Speaker Change: Which is one of our criteria in our due diligence process for any acquisition.
Speaker Change: And as we previously stated the deal is accretive and we expect it to contribute positively to our financial results. So I would say, a it's more or less free to our financial model in terms of gross margins and operating margins as well.
Speaker Change: And then.
Kept: Alright, and just kept me from Medtronic.
Speaker Change: In Cleveland.
Speaker Change: And matter of fact.
Speaker Change: How are you.
Speaker Change: What.
Speaker Change: Have you kind of quantify does that potentially you could get some center.
Speaker Change: So we've just opened up a completely new facility in Butler in Germany.
Speaker Change: This facility, which is also our environmentally friendly hosts all the all the different units of the chemical metrology division under one roof.
Speaker Change: And he is a state of the art. The building, we do expect the capacity to be able to drive the business forward, obviously as the business continues on its upward momentum we will adjust the capacities accordingly.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: The next question comes from Matthew Prisco with Cantor. Please go ahead.
Speaker Change: Hey, guys. Thanks for taking the question I guess first can you walk us through the drivers of the strong sequential growth into <unk> across maybe end market products and including the <unk> acquisition contribution isn't then over the past few quarters, you've been increasing revenues roughly $15 million to $20 million per quarter or those types of sequential increase is sustainable.
Speaker Change: As we move to 'twenty five.
Speaker Change: Yeah.
Speaker Change: So we don't give a forecast for the entire year are what we do expect to outperform W. A fee.
I think that we have a very strong end markets are driving the industry.
Speaker Change: Whether it's AI or HBC, and mobile where all acquainted with the fundamentals over there the translate both to our investments in our advanced nodes, especially advanced logic as well as the advanced packaging.
Speaker Change: And we definitely see our position across those markets.
Speaker Change: The fundamental in order to support our continued growth into the year.
Speaker Change: Yeah.
Speaker Change: And anything on the <unk> color on where you're seeing that strength and what the symphonic contribution.
Speaker Change: Also as I mentioned, the our first quarter forecast include the revenues from the relative periods Centronics will report on the Nova and you can deduct from the fact that centronics has it at about 10% of a $200 million Tam market last year as to the level of bid.
Speaker Change: But we expect and especially in at least in the first quarter.
Speaker Change: Perfect and then as a follow up can you help walk us through the translation of these materials metrology design win to revenue for instance, <unk> recent selection by a leading memory manufacturer does that mean shipping one tool to a fab for high volume production and then how quickly does that tool proliferate across Fabs and then.
Speaker Change: And what's the process in typical timing of customers expanding the number of tools per fab just any color into how we can think about better modeling the opportunity going forward.
Speaker Change: So first of all we're very excited about this recent adoption focusing on R&D for DRAM as well as a three D. NAND, we do expect proliferation into high volume manufacturing with this customer and we believe that this market.
Which is for measuring.
Speaker Change: The profile of multiple layers.
Speaker Change: And these kind of areas to continue and drive the adoption. We mentioned the fact that we have at the moment two additional evaluations with key logic and memory manufacturers that we expect to materialize later this year and this.
Speaker Change: This is a the first introduction of such an in line since tool, we expect the adoption to start with the about one tool per fab as we are as we experience when X P. S was adopted 15 to 20 years ago, and then of course increase the number of tools buffet.
Speaker Change: As more applications are.
Speaker Change: And higher utilization of the tool will happen. So eventually we believe and we hope that the kind of.
Speaker Change: Adoption rate that happened with Xps will repeat itself with our with the Metro one <unk>.
Speaker Change: We can't anticipate the exact timing of such a and adoption of more than one or two tools per fab, but we have a lot of room to grow with a metric on both with a number of customers as well as with a number of fabs as capacity growth and we're very excited about the opportunity as unveils with a metric ton.
Speaker Change: Helpful. Thanks, guys.
Speaker Change: The next question comes from Mark Miller with the Benchmark Company. Please go ahead.
Mark Miller: Let me just express my congratulations on another record quarter. This is becoming routine for you guys. Oh I was just wondering if you could discuss where youre seeing significant share gains.
Speaker Change: Markets.
Speaker Change: Yeah.
Speaker Change: Thank you so much mark for the comments, so we see a few areas in which we saw share gains. So first of all in terms of the prism Standalone OCD, we saw share gains in both our advanced manufacturing as well as advanced packaging, we so.
Speaker Change: Increase in our market share on the front end side of the chemical metrology portfolio. We so are obviously higher utilization in our additional adoption of.
Speaker Change: Of the xps tools and material metrology and we also gained some share on the integrated metrology, especially as we entered into the advanced packaging space. Both in the two and a half these architectures in the logic as well as in high bandwidth manufacturing.
Speaker Change: In terms of your memory sales could you give a little more color in terms of what percent of the member sales were high bandwidth memory and what if any you're seeing for men.
Speaker Change: So I think that we need to address it as more as a DRAM versus NAND or H b M versus the other architectures with your permission. So obviously DRAM a little stronger than NAND and if we put HBM is part of the DRAM than that was the.
Speaker Change: In terms of our memory business HBM growth of course is higher in that respect are compared to the DRAM one.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: The next question comes from Charles <unk> with Needham. Please go ahead.
Charles: Hi, Congrats.
Speaker Change: Congratulations.
Speaker Change: A truly exceptional results really congrats that Nova <unk>, yes, I have a question maybe to question. Let me ask you the first one.
Speaker Change: The Q1 guidance, if I flatline that numbers that would imply a roughly speaking 25% year on year growth in 2025.
Speaker Change: And I think <unk> guided.
Speaker Change: Mid single digit and I thought historically, you expecting outperformance roughly one five back but.
Speaker Change: Any reason for us to have a little more confidence that Ethernet buybacks.
Speaker Change: <unk> this year, but you guys did well outperformance.
Speaker Change: Yeah.
Speaker Change: What are the reasons to believe that that basket of outperformance will continue in 'twenty five.
Speaker Change: Thank you for the comments Charles I think that the.
Speaker Change: It has to do with to make a free major issues. One is the position that we have especially with a unique.
Speaker Change: Value driven by the technologies that we offer.
Speaker Change: The second one is expanding our position into advanced packaging and seeing higher adoption.
Speaker Change: And the third one of course, which drives that as well as the centronics acquisition.
Speaker Change: That gives us an opportunity to expand to additional customers than the ones that were exposed to today.
Speaker Change: On top of it all of course by the fact that we have a strong position in advanced logic and that gives us the grounds to believe that we have the fundamentals the infrastructure in order to drive the growth into 2025.
Speaker Change: Thanks, maybe another question on gate all around.
Speaker Change: Believe you you mentioned the gate all around revenue points decline before was roughly high single digit of the product revenue based on the latest reporting sounds like its $40 million ish.
Speaker Change: I think most of your peers are guiding get paid her around revenue doubling but.
Speaker Change: The guidance seems to suggest there's a little bit more than doubling for you guys might be if you provide a little bit more color.
Speaker Change: As well in terms of aware.
Speaker Change: You're tracking to that 500 million accumulated.
Speaker Change: Accumulative data.
Speaker Change: Eight all around revenue from sex any any additional quantitative color will be very helpful. Thank you.
Speaker Change: Okay.
Speaker Change: So I'm not sure I can add more to the fact that our we are committed to the $500 million from gate all around until 2026, we haven't changed.
Speaker Change: Changed our position in that respect.
Speaker Change: We will try to give more color during the Investor day on March 17th, but I think that the tracking that number.
Speaker Change: Gives.
Speaker Change: It gives a lot in terms of our confidence in making it a this year as well.
Kathy: Thanks Kathy.
Speaker Change: Sure.
Speaker Change: This concludes our question and answer session.
Speaker Change: I'd like to turn the conference back over to Gabby Wiseman.
Gabby Wiseman: President and CEO for closing remarks.
Gabby Wiseman: Thank you operator, and thank you all for joining our call today.
Gabby Wiseman: Yeah.
Gabby Wiseman: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.