Q4 2025 Kulicke & Soffa Industries Inc Earnings Call

As a formal presentation if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host Joseph <unk> Senior director of Investor Relations for Culiacan sulfur. Thank you Mr. Al Kindi you may begin.

Thank you welcome everyone to Culiacan softens fiscal fourth quarter 2025 conference call Lustre wrong interim Chief Executive Officer, and Chief Financial Officer also joins me on today's call.

non-GAAP financial measures referenced today should be considered in addition to not as a substitute for or in isolation from our GAAP financial information.

Joseph Elgindy: Thank you. Welcome, everyone, to Kulicke & Soffa's Fiscal Q4 2025 Conference Call. Lester Wong, Interim Chief Executive Officer and Chief Financial Officer, also joins me on today's call. Non-GAAP financial measures referenced today should be considered in addition to, not as a substitute for, or in isolation from our GAAP financial information.

GAAP to non-GAAP reconciliation tables are included within our latest earnings release and earnings presentation. Both are available at Investor <unk> Dot com.

David Brown: GAAP to non-GAAP reconciliation tables are included within our latest earnings release and earnings presentation. Both are available at investor.kns.com, along with prepared remarks for today's call. In addition to historical information, today's discussion contains forward-looking statements regarding our future performance and outlook. These statements are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may cause actual results to differ materially. For complete discussion of the risks associated with Kulicke and Soffa that could affect our future results and financial condition, please refer to our latest Form 10-K and upcoming SEC filings for additional information. With that said, I will now turn the call over to Lester Wong for the business overview. Please go ahead, Lester. Thank you, Joe. Good morning, everyone.

GAAP to non-GAAP reconciliation tables are included within our latest earnings release and earnings presentation. Both are available at investor.kns.com, along with prepared remarks for today's call. In addition to historical information, today's discussion contains forward-looking statements regarding our future performance and outlook. These statements are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may cause actual results to differ materially. For complete discussion of the risks associated with Kulicke and Soffa that could affect our future results and financial condition, please refer to our latest Form 10-K and upcoming SEC filings for additional information. With that said, I will now turn the call over to Lester Wong for the business overview. Please go ahead, Lester.

Okay.

And involve risks and uncertainties that may cause actual results to differ materially.

For complete discussion of the risks associated with fuel can soften that could affect our future results and financial condition. Please refer to our latest Form 10-K and upcoming SEC filings for additional information.

With that said I'll now turn the call over to lesser wrong for the business overview. Please go ahead lesser thank you Joe Good morning, everyone before discussing this quarter's business performance and outlook I want to briefly discuss recent organizational changes we announced on October 28, I have taken over as interim CEO due to fusin churn.

Lester Wong: Thank you, Joe. Good morning, everyone. Before discussing this quarter's business performance and outlook, I want to briefly discuss recent organizational changes we announced on 28th October 2024. I have taken over as Interim CEO due to Fusen Chen's recent retirement and will continue my existing duties as the company's Executive Vice President and Chief Financial Officer. Fusen is actively recovering and doing well, and we appreciate everyone's thoughts and concerns. While a search for a permanent successor among external and internal candidates is underway, we are fortunate to have a deep bench of talented leaders in the executive team and involved board of directors who are committed to ensuring the continuity of leadership, stability, and strategic focus of the company.

Recent retirement, and we will continue my existing duties as the company's executive Vice President and Chief Financial Officer.

David Brown: Before discussing this quarter's business performance and outlook, I want to briefly discuss recent organizational changes we announced on 28 October 2024. I have taken over as Interim CEO due to Fusen Chen's recent retirement and will continue my existing duties as the company's Executive Vice President and Chief Financial Officer. Fusen is actively recovering and doing well, and we appreciate everyone's thoughts and concerns. While a search for a permanent successor among external and internal candidates is underway, we are fortunate to have a deep bench of talented leaders in the executive team and involved board of directors who are committed to ensuring the continuity of leadership, stability, and strategic focus of the company. We expect this transition to be seamless, and customers can expect continued innovation, global support, and strong commitment from K&S to serve the evolving needs and to enable next-generation devices.

Fusin is actively recovery and doing well and we appreciate everyone's thoughts and concerns.

While its search for a permanent successor, among external and internal candidates is underway. We are fortunate to have a deep bench of talented leaders in the executive team and it involve board of directors, who are committed to ensuring the continuity of leadership stability and strategic focus of the company.

With that said, I will now turn the call over to Lester, Wong for the business overview. Please, go ahead, Lester. Thank you, Joe. Good morning everyone before discussing this quarter's business performance and Outlook. I want to briefly discuss recent organizational changes. We announced on October 28th. I have taken over as interim CEO due to Fusion's recent retirement and will continue my existing duties as the company's EXE.

Executive Vice President and Chief Financial Officer.

Fuson is actively recovering and doing well, and we appreciate everyone's thoughts and concerns.

We expect this transition to be seamless and customer can accept continue innovation global support and strong commitment from <unk> to serve the evolving needs and to enable next generation devices.

I want to thank Susan for his leadership over the past nine years under his guidance, we pursue meaningful new business opportunities and expanded our market access by securing a foothold in several high potential technologies.

We expect this transition to be seamless, and customers can expect continued innovation, global support, and strong commitment from K&S to serve the evolving needs and to enable next-generation devices.I want to thank Fusen for his leadership over the past nine years. Under his guidance, we pursued meaningful new business opportunities and expanded our market assets by securing a foothold in several high-potential technologies. We have also dramatically increased the volume of customer engagement and improved time-to-market execution. In doing so, we have accelerated the growth of our advanced portfolio of solutions, which enable meaningful share gain in leading-edge logic, and has paved the path for additional expansion in DRAM, power semiconductor, and advanced dispense. Fusen's legacy is an organization defined by growth, agility, and close customer focus.

While a search for a permanent successor among external and internal candidates is underway, we are fortunate to have a deep bench of talented leaders in the executive team and an involved board of directors who are committed to ensuring the continuity of leadership, stability, and strategic focus of the company.

We have also dramatically increased the volume of customer engagement and improve time to market execution in doing so we have accelerated the growth of our advanced portfolio of solutions, which enable meaningful share gain and leading edge logic and has paved the path for additional expansion in DRAM power semiconductor and advanced dispense.

David Brown: I want to thank Fusen for his leadership over the past nine years. Under his guidance, we pursued meaningful new business opportunities and expanded our market assets by securing a foothold in several high-potential technologies. We have also dramatically increased the volume of customer engagement and improved time-to-market execution. In doing so, we have accelerated the growth of our advanced portfolio of solutions, which enable meaningful share gain in leading-edge logic, and has paved the path for additional expansion in DRAM, power semiconductor, and advanced dispense. Fusen's legacy is an organization defined by growth, agility, and close customer focus.

We expect this transition to be seamless and customer. Can accept continued Innovation, Global support and strong commitment from kns to serve the evolving needs and to enable Next Generation devices.

I want to thank Susan for his leadership over the past 9 years.

Under his guidance, we pursue meaningful new business opportunities and expanded our market assets by securing a foothold in several high-potential technologies.

Goossens legacy as an organization defined by growth agility and close customer focus.

We appreciate that he has agreed to provide advisory support over the coming year and believe his vast experience and industry knowledge will be a useful resource to the company as we extend our leadership in advanced packaging and adapt industry transitions such as the rise of chip architectures and heterogeneous integration.

In doing so, we have accelerated the growth of our advanced portfolio of solutions, which enables meaningful share gains in Leading Edge Logic and has paved the path for additional expansion in DRAM power, semiconductor, and advanced dispense.

David Brown: We appreciate that he has agreed to provide advisory support over the coming year, and believe his vast experience and industry knowledge will be a useful resource to the company as we extend our leadership in advanced packaging and adapt to industry transitions such as the rise of chiplet architectures and heterogeneous integration. I, along with the entire organization, would like to wish Fusen a happy and healthy retirement. I am confident we will continue to win market share and grow the business over the long term. As all of our end markets are showing signs of improvement, we have recently begun to prepare for higher production while continuing to aggressively drive several exciting technology transitions. Additionally, in my role as Interim CEO, I am grateful to have met many customers in person over the past month, and look forward to meeting with many others over the near term.

We appreciate that he has agreed to provide advisory support over the coming year, and believe his vast experience and industry knowledge will be a useful resource to the company as we extend our leadership in advanced packaging and adapt to industry transitions such as the rise of chiplet architectures and heterogeneous integration. I, along with the entire organization, would like to wish Fusen a happy and healthy retirement. I am confident we will continue to win market share and grow the business over the long term. As all of our end markets are showing signs of improvement, we have recently begun to prepare for higher production while continuing to aggressively drive several exciting technology transitions. Additionally, in my role as Interim CEO, I am grateful to have met many customers in person over the past month, and look forward to meeting with many others over the near term.

Legacy is an organization defined by growth, agility, and close customer focus.

I along with the entire organization would like to wish fruits, and a happy and healthy retirement.

I am confident we will continue to win market share and grow the business over the long term as all of our end markets are showing signs of improvement. We have recently begun to prepare for higher production, while continuing to aggressively drive several exciting technology transitions.

We appreciate that. He has agreed to provide advisory Support over the coming year and believe his vast experience. And Industry knowledge, will be a useful resource to the company. As we extend our leadership in advanced packaging and adapt the industry transitions such as the rise of chiplet, architectures and heterogeneous integration. I along with the entire organization would like to wish fuson a happy and healthy retirement.

Additionally, in my role as interim CEO I am grateful to have met many customers in person over the past month and look forward to meeting with many others over the near term we.

We are fully committed to consistently providing customer with best in class capabilities and high performance solutions, They expect from Kansas.

I am confident we will continue to win market share and grow the business over the long term, as all of our end markets are showing signs of improvement. We have recently begun to prepare for higher production while continuing to aggressively drive several exciting technology transitions.

Turning to our recent business results. We are encouraged by improved order activity supported by favorable utilization trends and general semiconductor and memory end markets, while we continue to execute on key initiatives.

David Brown: We are fully committed to consistently providing customers with best-in-class capabilities and high-performance solutions they expect from K&S. Turning to our recent business results, we are encouraged by improved order activity, supported by favorable utilization trends in general semiconductor and memory end markets, while we continue to execute our key initiatives. Within our fourth fiscal quarter, we generated revenue of $177.6 million, GAAP earnings per share of $0.12, and non-GAAP earnings per share of $0.28. We remain focused on operational efficiency as we expand our reach within thermal compression, vertical wire, advanced dispense, and power semiconductor transitions. From an end market standpoint, utilization rate for high-volume general semiconductor and memory applications continues to improve, while dynamics within the automotive and industrial markets are now showing early improvement.

We are fully committed to consistently providing customers with best-in-class capabilities and high-performance solutions they expect from K&S. Turning to our recent business results, we are encouraged by improved order activity, supported by favorable utilization trends in general semiconductor and memory end markets, while we continue to execute our key initiatives. Within our fourth fiscal quarter, we generated revenue of $177.6 million, GAAP earnings per share of $0.12, and non-GAAP earnings per share of $0.28. We remain focused on operational efficiency as we expand our reach within thermal compression, vertical wire, advanced dispense, and power semiconductor transitions. From an end market standpoint, utilization rate for high-volume general semiconductor and memory applications continues to improve, while dynamics within the automotive and industrial markets are now showing early improvement.

Additionally, in my role as interim CEO, I am grateful to have met many customers in person over the past month and look forward to meeting with many others over the near term.

We'll then our fourth fiscal quarter, we generated revenue of $177.6 million GAAP earnings per share of <unk> 12 cents and non-GAAP earnings per share of 28 cents.

We are fully committed to consistently providing customers with best-in-class capabilities and high-performance solutions. They expect this from KNS.

Main focus on operational efficiency as we expand our reach within thermal compression vertical wire advanced suspense and power semiconductor transitions.

Turning to our recent business results, we are encouraged by improved order activity supported by favorable utilization trends in the general semiconductor and memory markets, while we continue to execute on key initiatives.

Within our fourth fiscal quarter, we generated revenue of $177.6 million.

From an end market standpoint utilization rate for high volume general semiconductor and memory applications continue to improve while dynamics within the automotive and industrial markets are now showing early improvement.

Gap earnings per share of 12 cents, and non-gaap earnings per share of 28 cents.

General semiconductor revenue increased by 24% sequentially, driven by technology and capacity needs, which increased thermal compression and ball bonder demand during the September quarter we.

We remain focused on operational efficiency as we expand our reach within the thermal compression vertical wire, advanced suspension, and power semiconductor transitions.

We estimate utilization rates are currently over 80% for this key end market.

David Brown: General semiconductor revenue increased by 24% sequentially, driven by technology and capacity needs, which increased thermal compression and ball bonder demand during the September quarter. We estimate utilization rates are currently over 80% for this key end market. Memory has also improved sequentially, similar to general semi, in both utilization and revenue. Memory-related revenue increased by nearly 60% sequentially to $24.4 million, and was driven predominantly by NAND-related capacity additions. Historically, our memory solutions were tailored for high-density NAND assembly. Although we remain closely engaged in supporting advanced packaging transition within DRAM, we continue to expect the growth in high-performance edge applications, like on-device AI or AI on the edge, will begin to accelerate this trend. Order hesitation within automotive and industrial has continued into the September quarter, with a relatively sharp sequential decline.

General semiconductor revenue increased by 24% sequentially, driven by technology and capacity needs, which increased thermal compression and ball bonder demand during the September quarter. We estimate utilization rates are currently over 80% for this key end market. Memory has also improved sequentially, similar to general semi, in both utilization and revenue. Memory-related revenue increased by nearly 60% sequentially to $24.4 million, and was driven predominantly by NAND-related capacity additions. Historically, our memory solutions were tailored for high-density NAND assembly. Although we remain closely engaged in supporting advanced packaging transition within DRAM, we continue to expect the growth in high-performance edge applications, like on-device AI or AI on the edge, will begin to accelerate this trend. Order hesitation within automotive and industrial has continued into the September quarter, with a relatively sharp sequential decline.

From an End Market standpoint utilization rate for high volume General, semiconductor and memory applications continue to improve while Dynamics within the automotive and Industrial markets are now showing early Improvement.

Memory has also improved sequentially similar to general semi in both utilization and revenue.

Memory related revenue increased by nearly 60% sequentially to $24 $4 million and was driven predominantly by NAND related capacity additions.

General Semiconductor revenue increased by 24% sequentially, driven by technology and capacity needs which increased thermal compression and ball bonder demand during the September quarter.

We estimate utilization. Rates are currently over 80% for this key market.

Historically, our memory solution, where Taylor for high density NAND Assembly, although we remain closely engaged in supporting advanced packaging transition within DRAM.

Memory has also improved sequentially, similar to General Semi, in both utilization and revenue.

We continue to expect the growth in high performance edge application light on device AI or AI on the edge will begin to accelerate this trend.

Memory-related revenue increased by nearly 60%, sequentially, to $24.4 million and was driven predominantly by non-related capacity additions.

Order hesitation with an automotive and industrial has continue into the September quarter with a relatively sharp sequential decline.

Historically, our memory solutions were tailored for high density—nan assembly. Although we remain closely engaged in supporting advanced packaging transition within DRAM.

While the broader automotive market has been softer we anticipate a sequential improvement during the current December quarter and are pleased to report a more positive outlook through fiscal 2026.

We continue to expect the growth in high-performance edge applications, like on-device AI or AI on the edge, will begin to accelerate this trend.

As a reminder, we remain an active technology partner, providing many new innovations when power semiconductor, which are supporting long term transitions within the EV and other clean tech markets.

David Brown: While the broader automotive market has been softer, we anticipate a sequential improvement during the current December quarter and are pleased to report a more positive outlook through fiscal 2026. As a reminder, we remain an active technology partner, providing many new innovations within power semiconductor, which are supporting long-term transitions within the EV and other clean tech markets. Last, APS has increased by 17% sequentially, which aligns with improving utilization data, and more distinctly highlights increased production activity across our high-volume install base. We are optimistic about fiscal 2026 and remain encouraged by improving end market dynamics, along with strong traction we are seeing across our growing set of advanced packaging, advanced dispense, and power semiconductor opportunities. Within advanced packaging, we continue to support the industry adoption of advanced thermal compression and vertical wire applications, and remain closely engaged with multiple leading customers on these exciting initiatives.

While the broader automotive market has been softer, we anticipate a sequential improvement during the current December quarter and are pleased to report a more positive outlook through fiscal 2026. As a reminder, we remain an active technology partner, providing many new innovations within power semiconductor, which are supporting long-term transitions within the EV and other clean tech markets. Last, APS has increased by 17% sequentially, which aligns with improving utilization data, and more distinctly highlights increased production activity across our high-volume install base. We are optimistic about fiscal 2026 and remain encouraged by improving end market dynamics, along with strong traction we are seeing across our growing set of advanced packaging, advanced dispense, and power semiconductor opportunities. Within advanced packaging, we continue to support the industry adoption of advanced thermal compression and vertical wire applications, and remain closely engaged with multiple leading customers on these exciting initiatives.

Order hesitation with automotive and industrial has continued into the September quarter, with a relatively sharp sequential decline.

Last a T. S has increased by 17% sequentially, which aligns with improving utilization data and more distinctly highlight increased production activity across our high volume installed base.

While the broader Automotive Market has been softer. We anticipate a sequential Improvement during the current December quarter and I'll, please the report a more positive outlook through fiscal 2026.

We are optimistic about fiscal 2026 and remain encouraged by improving end market dynamics, along with strong traction we are seeing across a growing set of advanced packaging advanced suspense and power semiconductor opportunities.

As a reminder, we remain an active technology partner, providing many new innovations within power semiconductors that support long-term transitions within the EV and other clean tech markets.

We are in advanced packaging, we continue to support the industry adoption of advanced thermal compression and vertical why applications and remain closely engaged with multiple leading customers on these exciting initiatives.

Last APS has increased by 17% sequentially, which aligns with improving utilization data and more distinctly highlights increased production activity across a high-volume install base.

First we're influx this thermal compression or FTC, we continue to directly address the needs of advanced heterogeneous logic applications. We are pleased to see growing demand across our customer base driven by the increasing capacity needs of IDM foundries and assembly and test customers.

We are optimistic about fiscal, 2026 and remain encouraged by improving and market dynamics along with strong traction. We are seeing across our growing set of advanced packaging, Advanced suspense and power semiconductor opportunities.

David Brown: First, within Fluxless Thermal Compression, or FTC, we continue to directly address the needs of advanced heterogeneous logic applications. We are pleased to see growing demand across our customer base, driven by the increasing capacity needs of IDM, foundry, and assembly and test customers. Our operational and supply chain teams are actively preparing for a production ramp through fiscal 2026, as adoption for our FTC process begins to accelerate. Additionally, we are preparing to ship our first HBM system within the current December ending quarter. Within the HBM market, we continue to anticipate advanced thermal compression capabilities, such as FTC, provide an attractive assembly alternative as bandwidth requirements increase with future HBM standards. On the mobility side of DRAM, we continue to expect on-device AI applications to demand high levels of bandwidth and increase the need for new vertical wire-based assembly over the coming years.

First, within Fluxless Thermal Compression, or FTC, we continue to directly address the needs of advanced heterogeneous logic applications. We are pleased to see growing demand across our customer base, driven by the increasing capacity needs of IDM, foundry, and assembly and test customers. Our operational and supply chain teams are actively preparing for a production ramp through fiscal 2026, as adoption for our FTC process begins to accelerate. Additionally, we are preparing to ship our first HBM system within the current December ending quarter. Within the HBM market, we continue to anticipate advanced thermal compression capabilities, such as FTC, provide an attractive assembly alternative as bandwidth requirements increase with future HBM standards. On the mobility side of DRAM, we continue to expect on-device AI applications to demand high levels of bandwidth and increase the need for new vertical wire-based assembly over the coming years.

Within advanced packaging, we continue to support the industry. Adoption of advanced thermal compression and vertical Y applications remains closely engaged with multiple leading customers on these exciting initiatives.

Our operational and supply chain teams are actively preparing for a production ramp through fiscal 2026 as adoption for FTC process begins to accelerate.

Additionally, we are preparing to ship our first H B M system within the current December ending quarter.

First, we're in flux. This thermal compression, or FTC, we continue to directly address the needs of advanced heterogeneous logic applications. We are pleased to see growing demand across our customer base, driven by the increasing capacity needs of IDM, foundry, and assembly and test customers.

Within the HCM market, we continue to anticipate advanced thermal compression capabilities, such as FTC provides an attractive assembly alternative as bandwidth requirements increase with future H B M standards.

Our operational and supply chain. Teams are actively preparing for a production ramp through fiscal 2026 as adoption for our FTC process begins to accelerate.

On the mobility file DRAM, we continue to expect on device AI applications to demand high level of bandwidth and increase the need for new vertical wire based assembly over the coming years.

Quarter.

This is a great example of how advanced packaging techniques are directly supporting power efficiency performance and form factor improvements, helping to offset the rising cost of traditional transistor strength.

Within the HBM market, we continue to anticipate advanced thermal compression capabilities, such as FTC provides, as an attractive assembly alternative as bandwidth requirements increase with future HBM standards.

We remain engaged with a broad group of memory customers, who are actively preparing for this transition.

David Brown: This is a great example of how advanced packaging techniques are directly supporting power efficiency, performance, and form factor improvements, helping to offset the rising costs of traditional transistor strength. We remain engaged with a broad group of memory customers who are actively preparing for this transition. Our vertical wire market expectations into fiscal 2026 remain consistent, and we continue to anticipate a shift to high-volume market production by the end of the year. Longer term, we anticipate STACK DRAM, or mobile HBM, will continue to grow aggressively with high-volume edge-related applications. Next, with advanced dispense, we are pleased to release our recent dispense system, Essilon, during Semiconductor Taiwan in September. Essilon leverages our unique and high-precision dispense capabilities with a highly robust architecture platform, which has been proven in critical production environments. Transitions in many of our end markets are increasing demands for high-precision, and more capable dispense systems.

This is a great example of how advanced packaging techniques are directly supporting power efficiency, performance, and form factor improvements, helping to offset the rising costs of traditional transistor strength. We remain engaged with a broad group of memory customers who are actively preparing for this transition. Our vertical wire market expectations into fiscal 2026 remain consistent, and we continue to anticipate a shift to high-volume market production by the end of the year. Longer term, we anticipate STACK DRAM, or mobile HBM, will continue to grow aggressively with high-volume edge-related applications. Next, with advanced dispense, we are pleased to release our recent dispense system, Essilon, during Semiconductor Taiwan in September. Essilon leverages our unique and high-precision dispense capabilities with a highly robust architecture platform, which has been proven in critical production environments. Transitions in many of our end markets are increasing demands for high-precision, and more capable dispense systems.

On the mobility side of DRAM, we continue to expect on-device AI applications to demand a high level of bandwidth and increase the need for new vertical, wire-based assembly over the coming years.

A word go why market expectations into fiscal 2026 remain consistent and we continue to anticipate a shift to high volume market production by the end of the year.

This is a great example of how advanced packaging techniques are directly supporting power efficiency, performance and form factor improvements helping to offset the rising costs of traditional transistor strength.

Longer term, we anticipate stacked DRAM or mobile H B M will continue to grow aggressively with high volume edge related applications.

We remain engaged with a broad group of memory customers who are actively preparing for this transition.

Next with advanced dispense we are pleased to release, our recent defense system S. Along during semiconductor Taiwan in September.

Market expectations for fiscal 2026 remain consistent, and we continue to anticipate a shift to higher volume market production by the end of the year.

<unk> Leverages, our unique and high precision dispense capabilities with a highly robust architecture platform, which has been proven in critical production environment.

Longer term, we anticipate that stack, dramas, or mobile HBM will continue to grow aggressively, with high-volume edge-related applications.

Transitions in many of our end markets are increasing demands for high precision and more capable dispense systems.

Next with Advanced dispense, we are pleased to release our recent dispense system Elon during semiconductor Taiwan in September.

We continue to receive recurring purchase orders as well as new customer purchase orders for our growing line of advanced dispense systems.

Finally, while the current automotive and industrial market remains dynamic we continue to develop innovative solutions to address increasing level of assemble assembly complexity surrounding power semiconductor applications.

Elon leverages our unique and high-precision dispense capabilities with a highly robust architecture platform, which has been proven in critical production environments.

David Brown: We continue to receive recurring purchase orders, as well as new customer purchase orders for our growing line of advanced dispense systems. Finally, while the current automotive and industrial market remains dynamic, we continue to develop innovative solutions to address the increasing level of assembly complexity surrounding power semiconductor applications. In summary, we continue to expand our market presence on multiple fronts and remain cautiously optimistic as key regions and end markets show signs of cyclical improvement. We are pleased to see ongoing general semiconductor capacity digestion and expansion within our key regions, as well as memory technology transitions and pricing improvements, which are all promising indicators, and that increases our confidence in the outlook. We continue to navigate a uniquely exciting time in semiconductor assembly, with the potential to capitalize on a wide set of opportunities in the industry.

We continue to receive recurring purchase orders, as well as new customer purchase orders for our growing line of advanced dispense systems. Finally, while the current automotive and industrial market remains dynamic, we continue to develop innovative solutions to address the increasing level of assembly complexity surrounding power semiconductor applications. In summary, we continue to expand our market presence on multiple fronts and remain cautiously optimistic as key regions and end markets show signs of cyclical improvement. We are pleased to see ongoing general semiconductor capacity digestion and expansion within our key regions, as well as memory technology transitions and pricing improvements, which are all promising indicators, and that increases our confidence in the outlook. We continue to navigate a uniquely exciting time in semiconductor assembly, with the potential to capitalize on a wide set of opportunities in the industry.

Transitions in many of our end markets are increasing demands for high precision and more capable dispense systems.

In summary, we continue to expand our market presence on multiple fronts and remain cautiously optimistic as key regions and end markets show signs of a cyclical improvement.

We continue to receive recurring purchase orders, as well as new customer purchase orders, for our growing line of advanced dispense systems.

We are pleased to see ongoing general semiconductor capacity digestion and expansion within our key regions as well as memory technology transitions and pricing improvements, which are all promising indicators and that increases our confidence in the outlook.

Finally, while the current automotive and industrial market remains dynamic, we continue to develop innovative solutions to address the increasing level of assembly complexity surrounding power semiconductor applications.

We continue to navigate a uniquely exciting time and semiconductor assembly, where the potential to capitalize on a wide set of opportunities in the industry.

in summary, we continue to expand our Market presence on multiple fronts and remain cautiously optimistic as key regions and end markets show signs of cyclical Improvement,

With that said I will now provide a brief financial update my remarks today will refer to GAAP results unless noted we.

We are pleased to see ongoing general semiconductor capacity, digestion, and expansion within our key regions, as well as memory technology transitions and pricing improvements, which are all promising indicators that increase our confidence in the outlook.

We deliver revenue above guidance continue to execute on close customer engagements and maintain an ongoing focus on cost control.

Gross margins came in at 45, 7% and we delivered 28 of non-GAAP earnings.

David Brown: With that said, I will now provide a brief financial update. My remarks today will refer to GAAP results unless noted. We deliver revenue above guidance, continue to execute on close customer engagements, and maintain an ongoing focus on cost control. Gross margins came in at 45.7%, and we delivered $0.28 of non-GAAP earnings. Total operating expense came in at $80.3 million on a GAAP basis, and just below $70 million on a non-GAAP basis. We continue to remain focused on operational efficiency while we support a growing set of opportunities. We continue to anticipate non-GAAP operating expense to be around $70 million over the coming quarters, which provides a strong foundation for operational leverage as demand for our solution ramps. Tax expense came in at $0.3 million, and we continue to anticipate our effective tax rate will remain above 20% over the near term.

With that said, I will now provide a brief financial update. My remarks today will refer to GAAP results unless noted. We deliver revenue above guidance, continue to execute on close customer engagements, and maintain an ongoing focus on cost control. Gross margins came in at 45.7%, and we delivered $0.28 of non-GAAP earnings. Total operating expense came in at $80.3 million on a GAAP basis, and just below $70 million on a non-GAAP basis. We continue to remain focused on operational efficiency while we support a growing set of opportunities. We continue to anticipate non-GAAP operating expense to be around $70 million over the coming quarters, which provides a strong foundation for operational leverage as demand for our solution ramps. Tax expense came in at $0.3 million, and we continue to anticipate our effective tax rate will remain above 20% over the near term.

We continue to navigate a uniquely exciting time in semiconductor assembly where the potential of the capitalized on a wide set of opportunities in the industry.

Total operating expense came in at $83 million on a GAAP basis, and just below 70 million on a non-GAAP basis.

With that said, I will now provide a brief Financial update. My remarks today will refer to Gap results. Unless noted,

We continue to remain focused on operational efficiency, while we support a growing set of opportunities.

We deliver Revenue above guidance, continue to execute on clothes, customer engagements and maintain an ongoing focus on cost control.

We continue to anticipate non-GAAP operating expense to be around $70 million over the coming quarters will provide a strong foundation for operational leverage as demand for our solutions ramps.

Gross margins came in at 45.7%, and we delivered 28 cents of non-GAAP earnings.

Total operating expense came in at 80.3% and just below $70 million on a non-GAAP basis.

<unk> expense came in at zero point $3 million and we continue to anticipate our effective tax rate will remain above 20% over the near term.

We continue to remain focused on operational efficiency while we support a growing set of opportunities.

During the September quarter, we continue our repurchase program and deployed $16 $7 million to repurchase 464000 shares.

We continue to anticipate non-GAAP offering expense to be around $70 million over the coming quarters, which provides a strong foundation for operational leverage as demand for our solution ramps.

Over fiscal year 2025, we repurchased two 4 million shares representing nearly 5% of shares outstanding for $96 $5 million.

David Brown: During the September quarter, we continue our repurchase program and deployed $16.7 million to repurchase 464,000 shares. Over fiscal year 2025, we repurchased 2.4 million shares, representing nearly 5% of shares outstanding, for $96.5 million. Looking ahead, end market improvements within general semiconductor and memory are becoming more evident, supported by regional utilization improvement, and a strong sequential increase in APS demand. While automotive and industrial was previously expected to create an ongoing headwind into fiscal 2026, we are pleased to now anticipate sequential improvement into the December quarter. For the December quarter, revenue is expected to increase by approximately 7% sequentially to $190 million, with gross margins at 47%. Non-GAAP operating expenses are expected to be $71 million, with GAAP earnings per share targeted to be $0.18, and non-GAAP earnings per share of $0.33.

During the September quarter, we continue our repurchase program and deployed $16.7 million to repurchase 464,000 shares. Over fiscal year 2025, we repurchased 2.4 million shares, representing nearly 5% of shares outstanding, for $96.5 million. Looking ahead, end market improvements within general semiconductor and memory are becoming more evident, supported by regional utilization improvement, and a strong sequential increase in APS demand. While automotive and industrial was previously expected to create an ongoing headwind into fiscal 2026, we are pleased to now anticipate sequential improvement into the December quarter. For the December quarter, revenue is expected to increase by approximately 7% sequentially to $190 million, with gross margins at 47%. Non-GAAP operating expenses are expected to be $71 million, with GAAP earnings per share targeted to be $0.18, and non-GAAP earnings per share of $0.33.

Expenses came in at $0.3 million, and we continue to anticipate our effective tax rate will remain above 20% over the near term.

Looking ahead and market improvements within general semiconductor and memory are becoming more evident supported by regional utilization improvement and a strong sequential increase in Aps demand.

During the September quarter, we continued our repurchase program and deployed $16.7 million to repurchase 464,000 shares.

Our automotive and industrial was previously expect to create an ongoing headwind into fiscal 2026. We are pleased to now anticipate sequential improvement into the December quarter.

Over fiscal year 2025, we repurchased 2.4 million shares, representing nearly 5% of shares outstanding, for $96.5 million.

For the December quarter revenue is expected to increase by approximately 7% sequentially to $190 million with gross margins at 47% non-GAAP operating expenses are expected to be 71 million with GAAP earnings per share targeted to be 18 cents and non-GAAP earnings per share of 33.

Looking ahead, market improvements within General, semiconductor, and memory are becoming more evident, supported by regional utilization improvement and a strong sequential increase in APS demand.

While automotive and industrial were previously expected to create an ongoing headwind in fiscal 2026, we are pleased to now anticipate sequential improvement into the December quarter.

Yeah.

While we remain focused on production readiness and key growth opportunities. We have also strengthened operational and development efficiencies over the past few quarters.

We are confident that these efforts position us to emerge from the extended soft demand period, a leaner and more growth optimized organization.

David Brown: While we remain focused on production readiness and key growth opportunities, we have also strengthened operational and development efficiencies over the past few quarters. We are confident that these efforts position us to emerge from the extended soft demand period a leaner and more growth-optimized organization. Today, we're either a dominant incumbent leader or are aggressively taking share in every key market we serve. We continue to ensure our highest potential opportunities are well-resourced, and our customer development efforts are on a positive trajectory. Looking into fiscal 2026, we anticipate that half of our incremental growth will stem from technology transitions and share gains in new markets. At the same time, the other portion of sequential growth is increasingly encouraging due to the anticipation of ongoing cyclical recovery over the coming quarters.

While we remain focused on production readiness and key growth opportunities, we have also strengthened operational and development efficiencies over the past few quarters. We are confident that these efforts position us to emerge from the extended soft demand period a leaner and more growth-optimized organization. Today, we're either a dominant incumbent leader or are aggressively taking share in every key market we serve. We continue to ensure our highest potential opportunities are well-resourced, and our customer development efforts are on a positive trajectory. Looking into fiscal 2026, we anticipate that half of our incremental growth will stem from technology transitions and share gains in new markets. At the same time, the other portion of sequential growth is increasingly encouraging due to the anticipation of ongoing cyclical recovery over the coming quarters.

For the December quarter, revenue is expected to increase by approximately 7% sequentially to $10,090 million, with gross margins at 47%, non-GAAP. Operating expenses are expected to be $71 million, with GAAP earnings per share targeted to be $0.18 and non-GAAP earnings per share of $0.33.

Today, we're either a dominant incumbent leader or are aggressively taking share in every key markets we serve.

We continue to ensure our highest potential opportunities are well resource and our customer development efforts on a positive trajectory.

Looking into fiscal 2026, we anticipate that half of our incremental growth will stem from technology transitions and share gains in new markets.

We remain focused on production readiness and key growth opportunities. We have also strengthened operational and development efficiencies over the past few quarters. We are confident that these efforts position us to emerge from the extended soft demand period as a leaner and more growth-optimized organization.

In every key market we serve.

At the same time the other portion of sequential growth is increasingly encouraging due to anticipation of ongoing cyclical recovery over the coming quarters.

We continue to ensure our Highest Potential opportunities are. Well resourced and our customer developments are on a positive trajectory.

We look forward to ongoing execution and progress on advanced packaging advanced dispense and power semiconductor opportunities as we prepare for the broader core market recovery.

Looking into fiscal 2026, we anticipate that half of our incremental growth will stem from technology transitions and share gains in new markets.

At the same time, the other

In closing we remain focused on executing our strategic priorities are confident in our capabilities and technology leadership and prepared to navigate the near term macro environment.

growth is increasingly.

David Brown: We look forward to ongoing execution and progress on advanced packaging, advanced dispense, and power semiconductor opportunities as we prepare for the broader core market recovery. In closing, we remain focused on executing our strategic priorities, are confident in our capabilities and technology leadership, and prepare to navigate the near-term macro environment. This concludes our prepared comments. Operator, please open the call for questions. Thank you. The floor is now open for questions. If you would like to ask a question, please press Star 1 on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the Star keys.

We look forward to ongoing execution and progress on advanced packaging, advanced dispense, and power semiconductor opportunities as we prepare for the broader core market recovery. In closing, we remain focused on executing our strategic priorities, are confident in our capabilities and technology leadership, and prepare to navigate the near-term macro environment. This concludes our prepared comments. Operator, please open the call for questions.

And duty anticipation of ongoing cyclical recovery over the coming quarters.

This concludes our prepared comments operator, please open the call for questions.

We look forward to ongoing execution and programs on advanced packaging, advanced suspense, and power semiconductor opportunities as we prepare for the broader core market recovery.

Thank you the floor is now open for questions. If you would like to ask a question. Please press star one on your telephone keypad at this time, a confirmation tone will indicate that your line is in the question queue. You May press star two if he would like to remove your question from the queue.

In closing, we remain focused on executing our strategic priorities, confident in our capabilities and technology leadership, and prepared to navigate the near-term macro environment.

Operator 2: Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the Star keys.Again, that's star one to register a question at this time. Today's first question is coming from Krish Sankar of TD Cowen. Please go ahead.

This concludes our prepared comments, operator. Please open the call for questions.

For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star Keys again Thats Star One to register a question at this time.

Today's first question is coming from Chris Shankar FTB Cowen. Please go ahead.

Yeah, Hi, Thanks for taking my question and good luck to foods, I'm guessing you're going to Miss him.

Thank you. The floor is now open for questions. If you would like to ask a question, please press *1 on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

David Brown: Again, that's Star 1 to register a question at this time. Today's first question is coming from Krish Sankar of TD Cowen. Please go ahead. Yeah, hi. Thanks for taking my question. And good luck to Fusen. I'm definitely going to miss him. I have two questions, Lester. The first one, you know, it looks like based on your guidance, pretty much sequentially, all your three segments, general semi, memory, and auto industrial should grow. Is that the right way to think about it? How to think about it into the March quarter and any kind of seasonality effects? Then a follow-up. Thanks, Krish. I appreciate your sentiments for Fusen, and I will definitely pass it on. As far as the three segments are concerned, I think, as we said, general semi and memory are actually very strong. Utilization for both is over 80%.

Two questions left the first one it looks like based on your guidance.

For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key. Again, that's star, 1 to register a question at this time.

Pretty much sequence really all your three segments general semi memory and altra industrial should grow.

Krish Sankar: Yeah, hi. Thanks for taking my question. And good luck to Fusen. I'm definitely going to miss him. I have two questions, Lester. The first one, you know, it looks like based on your guidance, pretty much sequentially, all your three segments, general semi, memory, and auto industrial should grow. Is that the right way to think about it? How to think about it into the March quarter and any kind of seasonality effects? Then a follow-up.

Today's first question is coming from Chris Shankar of TD Cowen. Please go ahead.

Is that the right way to think about it and how to think about it into the March quarter, and any kind of seasonality effects and then a follow up.

Thanks, Krish and I appreciate your sentiments for Bruce and I will definitely pass it on.

As far as the three segments, there and I think as we said general semi and our memory are actually very strong utilization for both of us are over 80.

Lester Wong: Thanks, Krish. I appreciate your sentiments for Fusen, and I will definitely pass it on. As far as the three segments are concerned, as we said, general semi and memory are actually very strong. Utilization for both is over 80%. Auto and industrial is still lagging a little bit, but we do, we're very optimistic about it because we do see improvements, and there will be sequential growth into Q1. As far as how we want to look at the March quarter, March will probably be flat to Q1, so we don't see any seasonality into the March quarter.

Auto and industrial is still lagging a little bit, but we do we're very optimistic about it because we do see improvement and we think there'll be sequential growth in.

Yeah. Hi thanks for taking my question and uh, good luck to fools and definitely going to miss him. Um I have 2 questions, left, sir, the first 1 you know, it looks like based on your guidance. Um, pretty much sequentially, all your 3 segments General semi memory and auto industrial should grow. Um is that the right way to think about it? And how to think about it into the March quarter and any kind of seasonality effects, not a follow-up.

Into Q1, so I think as far as how we want to look at the March quarter. We think March will probably be probably flat to Q1. So we don't see any seasonality into the March quarter.

David Brown: Auto and industrial is still lagging a little bit, but we do, we're very optimistic about it because we do see improvements, and we think there will be sequential growth into Q1. I think as far as how we want to look at the March quarter, we think March will probably be, you know, probably flat to Q1, so we don't see any seasonality into the March quarter. Got it, Lester. Thanks for that. As a quick follow-up, you know, one of your Taiwan competitors spoke about their FTC plasma solution for chip-to-wafer has passed final call. It's being used with a leading foundry. I'm kind of curious, what is your status there? Do you think they could split the business, or you're not in pole position anymore? Well, Krish, I think we're still the only one at the foundry doing high-volume production, right?

Got it thanks for that and then as a quick follow up you know one of your Taiwan competitors spoke about.

The FTC plasma solution for chip to wafer has passed final call as being used with a leading foundry. So I'm kind of curious what is your status there and do you think they could split the business or.

Krish Sankar: Got it, Lester. Thanks for that. As a quick follow-up, you know, one of your Taiwan competitors spoke about their FTC plasma solution for chip-to-wafer has passed final call. It's being used with a leading foundry. I'm kind of curious, what is your status there? Do you think they could split the business, or you're not in pole position anymore?

Thanks Christian. I appreciate your, uh, sentence for food and I will definitely pass it on uh, as far as the 3 segments concern. I think, as we said General semi and our memory are actually very strong. Uh, utilization for both is uh, over 80 autonomous. Industrial is still lagging a little bit. Uh, but we do, we're very optimistic about it because we do see improvements and uh we think they'll be sequential growth in uh into uh q1. So I think as far as how we want to look at the March quarter, we think March will probably be, you know, probably flat to uh, tq1. So we don't see any seasonality into the March quarter.

Youre not in pole position anymore.

Well, Chris I think we're still the only one at the foundry doing high volume production right I won't comment on competitors I mean, we were quite a long time ago. So I think we continue to feel very strongly about our solution and our solution now has both formic acid and plasma. So it gives the customer a lot more optionality to do it we have single.

Lester Wong: Well, Krish, we're still the only one at the foundry doing high-volume production. I won't comment on competitors. I mean, we were quite a long time ago. We continue to feel very strongly about our solution. You know, our solution now has both formic acid and plasma, so it gives the customer a lot more optionality to do it. We have single head. We have dual head. We think our FTC solution is basically best in class, and we feel very, very competitive at the foundry as well as anywhere else to compete against the competitors.

Got it, let's do things for that. And then there's a quick follow up, you know, 1 of your Taiwan competitors, spoke about their FTC plasma solution for chip to wafer has passed. Final Call has been used for the leading Foundry so I'm kind of curious. What is your status there and do you think they could split the business or uh uh you're not in Pole Position anymore?

We have dual head. So we think our FTC solution is basically berth in best in class and we feel very very competitive at the foundry as well is there anywhere else that compete against the competitors.

David Brown: I won't comment on competitors. I mean, we were quite a long time ago. I think we continue to feel very strongly about our solution. You know, our solution now has both formic acid and plasma, so it gives the customer a lot more optionality to do it. We have single head. We have dual head. We think our FTC solution is basically best in class, and we feel very, very competitive at the foundry as well as anywhere else to compete against the competitors. Got it. Thanks a lot, Lester. Thank you. The next question is coming from Charles Shi of Needham & Company. Please go ahead. Hi, Lester. Thanks for taking my questions. Maybe the first one. You talked about shipping a system to the HBM customer.

Got it okay.

Thank you. The next question is coming from Charles <unk> of Needham <unk> Co. Please go ahead.

Hi.

Yes, Sir thanks for taking.

My question is on maybe the first one.

Krish Sankar: Got it. Thanks a lot, Lester.

Well, Chris, I think we're still the only 1 at The Foundry, doing high volume production, right? Uh I won't call me on a competitor's. I mean we've we would call a long time ago. So I think we continue to feel very strongly about our solution. You know, our solution now has both formic acid and plasma, so it gives the customer a lot more optionality to do it. We have single head, we have dual head. So we think our FTC solution is basically best in best-in-class and we feel very very competitive uh at The Foundry as well as anywhere else to compete against the competitors.

You talked about.

Operator 2: Thank you. The next question is coming from Charles Shi of Needham & Company. Please go ahead.

Got it. Thanks a lot. That's true.

Shipping a system to the HCM customer I know you. The team has worked on this for a while and it's.

Thank you. The next question.

Charles Shi: Hi, Lester. Thanks for taking my questions. Maybe the first one. You talked about shipping a system to the HBM customer. I know the team has worked on this for a while, and it's finally shipping, so it's definitely going to be good news, I've seen by most of the investors. I wondered if you can provide a little bit more color on this shipment. What's the nature of the shipment? I mean, as much as you can provide color, where you are shipping the system to, and what's the next milestone? Thank you.

Coming from Charles, I'll hand it over to Nina and Company. Please go ahead.

Finally shipping so it's definitely going to be good news I've seen by most of the investors.

Wonder if you can provide a little more color.

This shipment, what's the nature of the shipment.

David Brown: I know the team has worked on this for a while, and it's finally shipping, so it's definitely going to be good news, I've seen by most of the investors. I kind of wondered if you can provide a little bit more color on this shipment. What's the nature of the shipment? I mean, as much as you can provide color, where you are shipping the system to, and what's the next milestone? Thank you. Thanks, Charles. Well, we're shipping the system to somewhere in the United States, right, without being too specific. As far as the next milestone is, once it's installed, they're going to start running wafer through it, and we're going to look for a qualification. We hope to share some news a few months after the system has been installed at the customer. Thanks.

I mean as much as we can provide color on where you are shipping a system to and what's the next milestone.

Thanks, Charles well, we're shipping the system to the somewhere in the United States right without being too specific as.

Hi, uh, Lester. Um, thanks for taking my question. So, maybe the first one, um, you talked about, uh, shipping a, uh, system to the HPM customer. I know you—the team has worked on this for a while and, uh, it's finally shipping. So, it's definitely going to be good news, uh, I've seen by most of the investors, but I'm kind of wondering, uh, if you can...

As far as the next milestone is once it's installed they're going to start running a wafer through it on and we're going to look for a qualification. So we hope to get share some new user in a few months. After the system has been installed at the customer.

Lester Wong: Thanks, Charles. Well, we're shipping the system to somewhere in the United States, without being too specific. As far as the next milestone is, once it's installed, they're going to start running wafer through it, and we're going to look for a qualification. We hope to share some news a few months after the system has been installed at the customer.

Can you provide a little more color on this shipment? What's the nature of the shipment, where I mean, as much as you can, probably where you are shipping it to, and what's the next milestone? Thank you.

Do you have any insight.

Into which generation of HBM. This qualification is targeted.

I would say, it's probably for E.

Okay. Thank you.

Thanks Charles. Well, we're shipping the, the system to the somewhere in the United States, right? Without being too specific. Uh, as far as the next Milestone is, once it's installed, they're going to start running, uh, way through it on and we're going to look for a qualification. So we hope to get share some news, uh, a few months after the system has been installed at the customer

Charles Shi: Thanks. Do you have any insight into which generation of HBM this qualification is targeted at?

David Brown: Do you have any insight into which generation of HBM this qualification is targeted at? I would say it's probably 4E. Okay. Thank you. Maybe the next question, you talked about growth for fiscal 2026. Half of that is coming from tech transitions, share gains, the other half from cyclical recovery. Wondering if you could put some quantitative color into that, like how much, how many percentage points you think can come from both areas and any directional. I mean, hopefully, it can be a little bit more quantitative. That would be great. Thank you. Sure, Charles. As you know, we don't guide beyond the quarter, but I think we're very comfortable with, for FY2026, we're very comfortable with the consensus number, which I believe is around $730, $740.

So maybe the next question you talk about growth for.

Fiscal 'twenty six half of that is coming from transitions of share gains.

Lester Wong: I would say it's probably 540.

Thanks. Uh, do you have any insight into which generation of HBM this qualification is targeted at?

For a cyclical recovery.

Charles Shi: Okay. Thank you. Maybe the next question, you talked about growth for fiscal 2026. Half of that is coming from tech transitions, share gains, the other half from cyclical recovery. Wondering if you could put some quantitative color into that, like how much, how many percentage points you think can come from both areas and any directional. I mean, hopefully, it can be a little bit more quantitative. That would be great. Thank you.

Wondering if you could put some quantitative color.

Tobacco, how much how many percentage points you thing come from both areas.

Any directional I mean, hopefully it can be a little more commutate there will be great.

Sure Charles as you know, we don't guide beyond the quarter, but I think we're very comfortable with the four FY 'twenty six we're very comfortable the consensus number.

Um, so maybe in the next question, you talked about growth for fiscal 2026. Half of that is coming from tech transitions, the gains, and the other half from 6 recovery, but I'm wondering if you can provide some additional color.

Which I believe is around 737 40.

And then again as I said in my remarks, and as you just repeat it we think have incremental growth would be from technology transition like FTC like vertical wire like advanced dispense as tower semiconductor and then the other one would be from the cyclical recovery led by the very high utilization rate, which we see out there was about 80% right now.

Into that, like how much, uh, how many percentage points do you think can come from both areas? And any directional? I mean, hopefully it can be a little bit more quantitative; it would be great. Thank you.

Lester Wong: Sure, Charles. As you know, we don't guide beyond the quarter, but we're very comfortable with, for FY2026, we're very comfortable with the consensus number, which I believe is around $730, $740. As I said in my remarks and as you just repeated, we think half the incremental growth will be from technology transition, like FTC, like vertical wire, like advanced dispense, as well as power semiconductor. The other one would be from the cyclical recovery led by the very high utilization rate, which we see out there, which is about 80% right now.

David Brown: As I said in my remarks and as you just repeated, we think half the incremental growth will be from technology transition, like FTC, like vertical wire, like advanced dispense, as well as power semiconductor. The other one would be from the cyclical recovery led by the very high utilization rate, which we see out there, which is about 80% right now. Got it. Thanks, Lester. Thank you. The next question is coming from Tom Diffely of DA Davidson. Please go ahead. Yes. Good morning. Thank you for letting me ask a few questions. Lester, I was wondering if you could talk a little bit more about the NAND market. You know, we're hearing obviously strength in high bandwidth memory, and that's using up some of the DRAM capacity.

Okay.

Got it thanks Lester.

Thank you. The next question is coming from Tom Diffley of D. A Davidson. Please go ahead.

Yes. Good morning. Thank you for letting me ask a few questions last year I was wondering if you could talk a little bit more about the NAND market.

Charles Shi: Got it. Thanks, Lester.

Good Charles, as, as, you know, we, we don't guide beyond the quarter, but I think, uh, we're very comfortable with the, uh, for Phi 26. We're very comfortable, the consensus number, uh, which I believe is around 7:30 7:40. Uh, and then again, as I said in my remarks and as you just repeat it, we think half the incremental, growth will be from technology transition, like FTC like vertical wire like Advanced dispense as well as power semiconductor. And then the other 1 would be from the cyclical recovery. Uh, led by the very high utilization rate, uh, which we see out there was about 80%, right now.

Operator 2: Thank you. The next question is coming from Tom Diffely of D.A. Davidson. Please go ahead.

Got it. Thanks Lester.

We're hearing obviously strength in high bandwidth memory, and that's using up some of the DRAM capacity, but I haven't heard anybody talk about strength or improvements in the NAND markets until you mentioned it earlier today maybe.

Tom Diffely: Yes. Good morning. Thank you for letting me ask a few questions. Lester, I was wondering if you could talk a little bit more about the NAND market. You know, we're hearing obviously strength in high bandwidth memory, and that's using up some of the DRAM capacity. I haven't heard anybody talk about strength or improvements in the NAND markets until you mentioned it earlier today. Maybe just a little more comment on the NAND market.

Thank you. The next question is coming from Tom Disley of DA Davidson. Please go ahead.

Maybe just a little more comment on the end market.

Well sure I mean, I think what we're seeing is we're seeing very high utilization rates and memory is over 80% about 80% to 83%. We're also seeing in all.

David Brown: I haven't heard anybody talk about strength or improvements in the NAND markets until you mentioned it earlier today. Maybe just a little more comment on the NAND market. Well, sure. I mean, I think what we're seeing is we're seeing very high utilization rates in memory. It's over 80%, about 80% to 83%. We're also seeing, you know, I guess, purchase orders increasing in that market as well, particularly in China. Again, China itself, it's driven by general semi and memory, and China utilization is actually close to 90%. That's basically what we're seeing in the field, Tom. Okay. You said there wasn't much in the way of normal seasonality, but would you still expect more of a ramp to happen post-Chinese New Year, kind of the normal cycle as far as incoming new orders?

I guess purchase orders increasing in that market as well, particularly in China again, China itself.

Lester Wong: Well, sure. I mean what we're seeing is we're seeing very high utilization rates in memory. It's over 80%, about 80% to 83. We're also seeing, you know, I guess, purchase orders increasing in that market as well, particularly in China. Again, China itself, it's driven by general semi and memory, and China utilization is actually close to 90%. That's basically what we're seeing in the field, Tom.

Yes, good morning. Thank you for letting me ask a few questions. Uh, last year, I was wondering if you could talk a little bit more about the nand market. Um you know we're here in obviously strength and high bandwidth memory and that's using up some of the dram capacity. Um but I haven't heard anybody talk about strength or improvements in the Nan markets, until you mentioned it earlier today. Um maybe just a little more comment on the End Market.

It's driven by general semi in memory and a tighter utilization is actually close to 90%. So that's basically what we're seeing in the field all.

Okay and would you still you said there wasn't much in way of normal seasonality, but would you still expect more of a ramp to happen post Chinese new year kind of a normal cycle as foreigners.

Well, sure, I mean, I think we what we're seeing is we're seeing very high utilization rates, uh, in memory, it's, uh, over 80% of about 82 83%. Uh, we also seeing, you know, um,

New orders.

Well, we're actually again already seeing orders now into a into Q2. So I'd say I think it will probably be flat I think this year, our FY 'twenty fixed probably would be a little bit more linearity.

Tom Diffely: Okay. You said there wasn't much in the way of normal seasonality, but would you still expect more of a ramp to happen post-Chinese New Year, kind of the normal cycle as far as incoming new orders?

I guess purchase orders increasing in that market as well. Uh, particularly in China uh again in China itself, the uh it's driven by General semien memory and uh I'm trying to utilization is actually close to 90% so that's basically what what, we're seeing in the field, Tom.

Throughout the entire year, so I think again I don't see it a huge uptake after Chinese new year, but it would be nice to happened.

Okay. And would you still you said there wasn't much in the way of normal seasonality, but would you still expect more of a ramp to happen? Post Chinese New Year, kind of the normal cycle as far as uh incoming new orders.

David Brown: Well, we're actually, again, already seeing, you know, orders now into Q2. I'd say I think it'll probably be flat. I think this year, FY2026, probably would be a little bit more linearity throughout the entire year. I think, again, I don't see a huge uptick after Chinese New Year, but it'd be nice if it happened. Yeah. I do want to echo your comments on Fusen. You know, I've been covering the company on and off for 25 years. When he came in, you know, several many years ago, there was really a sea change in the productivity of the company and the outlook of the company. I wish him all the best. Thank you, Tom. Thank you. As I indicated, you know, Fusen transformed KNS and, you know, expanded, you know, our portfolio of advanced products.

Lester Wong: Well, we're actually, again, already seeing, you know, orders now into Q2. I'd say it'll probably be flat. This year, FY2026, probably would be a little bit more linearity throughout the entire year. Again, I don't see a huge uptick after Chinese New Year, but it'd be nice if it happened.

Well, we're we're actually again.

Yeah, and I do want to Echo your comments on fusin and I've been covering the company on and off for 25 years and then when he came in.

Several many years ago, there was really a sea change in the productivity of the company and in the outlook of the company. So I wish him all the best.

Tom Diffely: Yeah. I do want to echo your comments on Fusen. You know, I've been covering the company on and off for 25 years. When he came in, you know, several many years ago, there was really a sea change in the productivity of the company and the outlook of the company. I wish him all the best.

Orders now into, uh, into Q2. So I said, I think it'll probably be flat. I think this year FY, 26 probably would be a little bit more linearity, uh, throughout the entire year. So, uh, I think again, I don't see it. A huge uptick after Chinese New Year, but it'd be nice if it happened.

Thank you Tom Thank you as I indicated fusin transformed <unk> and expanded our portfolio of advanced products and you know a big part of this incremental growth from the technology.

Transition is due to you know his vision and his strategy. So we all wish him well in his retirement.

Lester Wong: Thank you, Tom. Thank you. As I indicated, you know, Fusen transformed K&S and, you know, expanded, you know, our portfolio of advanced products. You know, a big part of this incremental growth from technology transition is due to, you know, his vision and his strategy. We all wish him well in his retirement.

Yeah, and I do want to Echo your comments on fuson. You know, I've been covering the company on and off for 25 years and uh when he came in um you know several many years ago. Uh there was really a seed change in the productivity of the company and and the alaka company so I wish him all the best.

Thanks Lester.

Once again, ladies and gentlemen that star one to register a question at this time.

David Brown: You know, a big part of this incremental growth from technology transition is due to, you know, his vision and his strategy. We all wish him well in his retirement. Yeah. Thanks, Lester. Once again, ladies and gentlemen, that's Star 1 to register a question at this time. Our next question is coming from Dave Dooley of Steelhead Securities. Please go ahead. Yeah. Good evening, and thanks for taking my questions. Please relay my best wishes on retirement to Fusen as well. Will do, Dave. Okay. First question, I think in your slide deck, you talked about increasing market share in the HBM market. Could you just elaborate a little bit further on that? Is that just what you were referring to as shipping an HBM tool for general compression bonding, or is there something else to that commentary?

Our next question is coming from David Duley of Steelhead Securities. Please go ahead.

Yep.

Tom Diffely: Yeah. Thanks, Lester.

Good evening and thanks for taking my questions and please relay my congrats.

Operator 2: Once again, ladies and gentlemen, that's star one to register a question at this time. Our next question is coming from Dave Duley of Steelhead Securities. Please go ahead.

Thank. Thank you Tom. Thank you, uh, as, as I indicated, you know, fuson transferring kns, uh, and you know, expanded, you know, our portfolio Advanced products and, you know, a big part of this, uh, incremental growth from uh, tech technology transition is, is due to, you know, his vision and his strategy. So we all wish him well in his retirement. Yeah, thanks Lester.

My best wishes on retirement of Houston as well.

Once again, ladies and gentlemen, that's star 1 to register a question at this time.

Dave Okay.

Dave Duley: Yeah. Good evening, and thanks for taking my questions. Please relay my best wishes on retirement to Fusen as well.

First question.

Our next question is coming from Dave, Julie of steelhead Securities. Please go ahead.

I think in your.

A slide deck you talked about.

Yeah.

Increasing market share in the H B M market.

Could you just elaborate a little bit further on that is that what you were referring to is shipping at H B M tool for thermal compression bonding or is there something else to that commentary.

Lester Wong: Will do, Dave.

Dave Duley: Okay. First question, in your slide deck, you talked about increasing market share in the HBM market. Could you just elaborate a little bit further on that? Is that just what you were referring to as shipping an HBM tool for general compression bonding, or is there something else to that commentary?

Good evening, and thanks for taking my questions and, and, um, please relay my, uh, congrat, my, my best wishes on retirement to fussen as well. Um, well, do Dave, okay,

So Dave I think actually the slides referred to including market share in DRAM now specifically H B M. As I think I said in my remarks, as well as responding Charles' question, we are going to ship, our first H B M machine to a customer in the U S.

Up first question. Um, I think in your slide deck, you talked about, uh, increasing market share in the HBM market. Um, could you just elaborate a little bit further on that? Is that just what you were referring to, is shipping in HBM tools for general compression bonding, or is there something else to that commentary?

David Brown: Dave, I think actually the slide referred to increasing market share in DRAM, not specifically HBM. As I think I said in my remarks, as well as responding to Charles' question, we are going to ship our first HBM machine to a customer in the US for qualification. Okay. That commentary is just wrapped around the HBM shipment to a thermal compression bonding tool, nothing else. Yes. For now, we are very, as you know, we started our thermal compression, you know, focused on logic. You know, we are the market leader in logic for thermal compression, but again, we're just entering the HBM market now. We're very optimistic. We believe the tool is very well suited to HBM, and we think as standards change, and as well as density increases, I think the tool, the thermal compression tool, will do really well.

Lester Wong: Dave, actually the slide referred to increasing market share in DRAM, not specifically HBM. As I said in my remarks, as well as responding to Charles' question, we are going to ship our first HBM machine to a customer in the US for qualification.

For qualification.

Okay. So that commentary you just wrapped around the HBM shipment too.

<unk>.

Thermal compression bonding toward nothing else.

Yes for now we are very as you know we started our thermal compression focus on logic. You know we are the market leader in logic for thermo compression, but again, we're just entering the <unk> market now.

Dave Duley: Okay. That commentary is just wrapped around the HBM shipment to a thermal compression bonding tool, nothing else.

So, uh, Dave, I think actually the slide referred to including Mark share in dram, not specifically hbm. Uh, as I think, uh, I said in my remarks as well as responding in Charles question, uh, we are going to ship, uh, our first hbm machine to a customer in the US, uh, for qualification.

Okay, so

Commentary is just wrapped around the HBM shipment to, uh, uh,

Lester Wong: Yes. For now, we are very, as you know, we started our thermal compression, you know, focused on logic. You know, we are the market leader in logic for thermal compression, but again, we're just entering the HBM market now. We're very optimistic. We believe the tool is very well suited to HBM, and we think as standards change, and as well as density increases, the tool, the thermal compression tool, will do really well.

But we are we're very optimistic we believe that tool is a.

Uh, of terminal compression bonding tool. Nothing else.

It's very well suited to H B M and we think as a standard change in AD as well as.

Density increases I think the tool the flux thermal compression tool will do really well.

Yes, for now we we are very, as, you know, we started, uh, our thermal compression, you know, focused on logic, you know, we are the market leader in Logic for thermal compression, but again, we're just entering the hbm market now.

Now do you think that this customer you'll be trying to displace.

A flux lists that are more standard thermal compression tool or will you be are you up against the hybrid through or what do you think kind of the how this unfolds as far as the qualification goes and what youre competing against.

David Brown: Now, do you think at this customer you'll be trying to displace a fluxless thermal, a standard thermal compression tool, or are you up against a hybrid tool? What do you think, kind of how this unfolds as far as the qualification goes and what you're competing against? Well, I think we're basically competing against other thermal compression bonders, right? Not so much hybrids for now. I think hybrids still, as we've spoken before, for HBM, hybrids a little bit off for now. I think mainly the competition will be other TCB. Okay. You mentioned vertical wire ramping in the, I think in the back in 2026. Could you just elaborate a little bit more on what exact, you know, why is that ramping now? Is it tied to a specific handset model or some in-market?

Dave Duley: Now, do you think at this customer you'll be trying to displace a fluxless thermal, a standard thermal compression tool, or are you up against a hybrid tool? What do you think, kind of how this unfolds as far as the qualification goes and what you're competing against?

Uh, uh, it's very well suited to HBM, uh, and we think as, you know, standards change and as well as, um, density increases, I think the tool, uh, the flex thermal compression tool, uh, will do really well.

Well I think we're basically competing against other thermal compression bonder is right not so much hybrid for now I think hybrid still as we've spoken before of HBM high rates, a little bit off well now so I think mainly the competition with the other TCP.

Lester Wong: Well, we're basically competing against other thermal compression bonders. Not so much hybrids for now. Hybrids still, as we've spoken before, for HBM, hybrids a little bit off for now. Mainly the competition will be other TCB.

Now, do you think that this customer you'll be trying to displace, um, a Flexus thermal, uh, a standard thermal compression tool, or will you, are you up against a hybrid tool? Or what do you think kind of how this unfolds, uh, as far as the qualification goes and what you're competing against?

Yeah.

Okay and then.

You mentioned.

Vertical wire ramping.

And the I think in the back in 2026 could you just elaborate a little bit more on what exact what.

Dave Duley: Okay. You mentioned vertical wire ramping in the, In the back in 2026. Could you just elaborate a little bit more on what exact, you know, why is that ramping now? Is it tied to a specific handset model or some in-market? Maybe help us understand what expectations you have for that new business in 2026.

Why not why is that ramping now is that tied to.

Other thermal compression bonds, right? Uh, not so much hybrid for now. I think hybrid still as we've spoken before. Uh for hbm hybrid is a little bit off for now. So I think mainly the competition will be other TCB

Specific handset model or some in market and then maybe help us understand what expectations you have for that business in 2026.

Okay, and then, um, you mentioned, uh,

Sure well I mean, we've been working on vertical wise for a while.

And now we've had calls.

We have tools at our many customers both in China as well as outside of China, where as the pause progress. We believe that the first high volume production will be in the latter part of <unk> 26, which means we start shipping tools in the latter part of our fiscal 'twenty six right. So.

David Brown: Maybe help us understand what expectations you have for that new business in 2026. Sure. Well, I mean, we've been working on vertical wire for a while, and now we've had calls, and we have tools at many customers, both in China as well as outside of China. As the calls progress, we believe that the first high-volume production will be in the latter part of CY2026, which means we start shipping tools in the latter part of our fiscal 2026, right? I think that's basically the sort of the color around what we think. As far as our expectations, we still think FY2026 is going to be the beginning. I think somewhere around the neighborhood of $10 billion, and I think we think it will ramp significantly in 2027 and beyond. Okay.

Lester Wong: Sure. Well, I mean, we've been working on vertical wire for a while, and now we've had calls, and we have tools at many customers, both in China as well as outside of China. As the calls progress, we believe that the first high-volume production will be in the latter part of CY2026, which means we start shipping tools in the latter part of our fiscal 2026. That's basically the sort of the color around what we think. As far as our expectations, we still think FY2026 is going to be the beginning. Somewhere around the neighborhood of $10 billion, and it will ramp significantly in 2027 and beyond.

Vertical wire ramping, um, in the, I think in the back in 2026, could you just elaborate a little bit more on? What exactly, what, you know, why? Why is that ramping now? Is it tied to a specific handset model or some in-market? Um, and then maybe help us understand what expectations you have for that business in 2026.

That's basically the sort of the color around what we think and as far as our expectations. We still think FY 'twenty six it's going to be the beginning so I think somewhere around the neighborhood of $10 billion and I think we think it will ramp significantly in 2007 and beyond.

Okay and can you.

You have as far as your core business goes usually.

It's somewhat tied to unit volume growth in the general semi market I was just wondering if you had an idea about how fast units are growing in 2025 or a prediction for unit growth in 2026.

Dave Duley: Okay. Do you have, as far as your core business goes, usually it's somewhat tied to unit volume growth in the general semi market. I was just wondering if you had an idea about how fast units are growing in 2025 or a prediction for unit growth in 2026.

Sure. Well, I mean we've been working on vertical y for a while. Um, and now we've had calls, uh, and we have tools at many customers, uh, both in China as well outside of China. Uh, we're you know, as the calls progress we believe that the first high volume production uh will be in the latter part of uh Cy 26 which uh means we start shipping tools, uh you know, in the latter part of our fiscal 26, right? So I think that's basically, you know uh the sort of the color around what we think and as far as you know, our expectations we still think FY 26 is going to be, you know, the beginning. Uh, so I think somewhere around the neighborhood of 10 billion dollars and I think we think it will ramp significantly in 27 and Beyond.

David Brown: Do you have, as far as your core business goes, usually it's somewhat tied to unit volume growth in the general semi market. I was just wondering if you had an idea about how fast units are growing in 2025 or a prediction for unit growth in 2026. Well, yeah, we have used that before, and I think it's probably 5%, 7%. Again, I think what is really giving us confidence is the utilization rate, which is, as I said, over 80% in both memory and general semiconductor, and then 80% overall. Also, again, a lot of our core business is in China, and that utilization rate is almost close to 90%. Thank you. Thanks, Dave. Thank you. The next question is coming from Craig Ellis of B. Riley Securities. Please go ahead. Yeah. Thanks for taking the question.

Well, yeah, we haven't used that before and I think it's probably 5% to 7%, but again I think what is really giving us confidence is the utilization rate, which is as I said over 80% in both memory and general semiconductor and then 80% overall also again.

The unit volume growth and the general semi-market. I was just wondering if you had an idea about how fast units are growing in 2025, or a prediction for unit growth in 2026.

Lester Wong: We have used that before, and it's probably 5%, 7%. Again, what is really giving us confidence is the utilization rate, which is, as I said, over 80% in both memory and general semiconductor, and then 80% overall. Also, again, a lot of our core business is in China, and that utilization rate is almost close to 90%.

Lot of our core business is in China and that utilization rate is almost close to 90%.

Thank you.

Thanks, Dave.

Thank you. The next question is coming from Craig Ellis of B Riley Securities. Please go ahead.

Yeah. Thanks for taking the question and luster Good luck Ken.

Dave Duley: Thank you.

Utilization rate is uh, almost close to 90%.

Lester Wong: Thanks, Dave.

And the role and John and good luck to fusion as well with health insurers.

Thank you.

Operator 2: Thank you. The next question is coming from Craig Ellis of B. Riley Securities. Please go ahead.

Thanks Dave.

I wanted to start and admittedly I missed the first part of that part of the call, but I wanted to start better understanding the dynamics that youre seeing in the memory market. What's your do you think this is <unk>.

Thank you. The next question is coming.

from Craig, Ellis of

Highly Securities. Please go ahead.

Craig Ellis: Yeah. Thanks for taking the question. Lester, good luck in the role, and good luck to Fusen as well with health issues. I wanted to start, and admittedly, I missed the first part of the call, but I wanted to start better understanding the dynamics that you're seeing in the memory market. Lester, do you think this is just a steeper slope that you're seeing in memory as utilization and orders have improved, or is it really just a different timing for what might be a typical seasonal move-up in memory ahead of second half build? The question is really on the trajectory of the recovery that you're seeing.

David Brown: Lester, good luck in the role, and good luck to Fusen as well with health issues. I wanted to start, and admittedly, I missed the first part of the call, but I wanted to start better understanding the dynamics that you're seeing in the memory market. Lester, do you think this is just a steeper slope that you're seeing in memory as utilization and orders have improved, or is it really just a different timing for what might be a typical seasonal move-up in memory ahead of second half build? The question is really on the trajectory of the recovery that you're seeing. Well, as so, Craig, I think right now memory utilization is very high. I mean, sales are increasing there. There's still obviously lagging general semi. I think right now, I do think this is a ramp in memory, and it will continue into FY2026.

Just a steeper slope that you are seeing in memory is utilization orders have improved door or is it really just.

Different.

Timing for what might be a typical seasonal move up in memory. We're ahead of second half Bill. So on so the question is really on the trajectory area.

But you are saying.

Well as as.

So Craig I think right now.

Memory is.

Utilization is very high I mean, our sales are increasing their Ah theres still obviously lagging general semi so I think right now I do think this is a ramp in memory.

Yeah. Thanks for taking the question and Lester. Good luck. And uh, and the role and, um, and good luck to Putin as well with health issues. Um, I wanted to start and admittedly, I missed the first part of the part of the call, but I wanted to start better understanding the Dynamics that you're seeing, in the memory Market Lear. Do you think this is, um, just a steeper slope that you're seeing in memory is, uh, utilization and orders have improved or or is it really just a, a different, uh, timing for what might be, a typical seasonal move up in memory ahead of second half build. So, uh, so the question is really on the trajectory area of the recovery that you're seeing

Lester Wong: Craig, right now memory utilization is very high. I mean, sales are increasing there. There's still obviously lagging general semi. Right now, I do think this is a ramp in memory, and it will continue into FY2026.

well, as, as um,

And it will continue into FY 'twenty six.

Yep.

So Craig, I think right now, uh, memory is...

And can you.

Can you talk about.

The potential for memory in 2006 to get back to historic revenue levels from them because general Xiaomi is rebounding.

David Brown: Yep. Can you talk about the potential for memory in 2026 to get back to historic revenue levels? Because general semi is rebounding and it's doing so against a slightly improved, but not significantly improved, high-volume PC and smartphone market, what do you think is really driving the improvement in general semi? Well, I think it's still smartphone and, you know, high-performance computer, right? I mean, it's cyclical. I think for a long time, we've, as you know, we've had almost three plus four years of a downturn, right? This is, you know, the digestion of the tremendous amount of inventory that was built up in 2021, 2022. I think actually this is almost back to a normal cycle, right? It's the beginning of the recovery, which I think we've all been waiting for. Okay.

Craig Ellis: Yep. Can you talk about the potential for memory in 2026 to get back to historic revenue levels? Because general semi is rebounding and it's doing so against a slightly improved, but not significantly improved, high-volume PC and smartphone market, what do you think is really driving the improvement in general semi?

Utilization is very high. I mean, uh, sales are increasing their, uh, there's still obviously lagging General semi. So, I think right now I do think this is a, a ramp in memory. Uh, and uh, it will continue into FY, 26,

And it's doing so again.

Yep. And um, and can you, um,

A slightly improvement now significantly improved high volume PC and smartphone market. What do you think is really driving the improvement Ken general semi.

can you talk about, um,

Well I think it's still still smartphone and high schools computer right. I mean, it's cyclical I think from a long time, we've as you know we've had almost three plus four years of the downturn right and this is.

The potential for memory in 26 is to get back to historic revenue levels, and then because General Semiconductor is rebounding.

and,

And it's doing so against a slightly improved, but not significantly improved, high-volume PC and smartphone market. What do you think is really driving the improvement in general semi?

The digestion of the tremendous amount of inventory that was built up in 'twenty. One 'twenty. Two so I think actually this is almost back to a normal cycle right and is the beginning of the recovery, which I think we've all been waiting for.

Lester Wong: Well, It's still smartphone and, you know, high-performance computer. I mean, it's cyclical. For a long time, we've, as you know, we've had almost 3+ 4 years of a downturn. This is, you know, the digestion of the tremendous amount of inventory that was built up in 2021, 2022. Actually this is almost back to a normal cycle. It's the beginning of the recovery, which we've all been waiting for.

Okay.

And then lastly, I think you did mention in prepared remarks.

But we're not yet seeing any signs of pump work from the auto and industrial market, but as you talk to customers.

And those end markets are you getting any indication that they could begin to see an upturn sometime in the first half of calendar 'twenty six or worse still just very low visibility in absence of any signs of improvement.

Well, I I think it's still still smartphone and and and, you know, uh, high performance computer, right? Uh, I mean, it's cyclical. I think it's for a long time. We've as, you know, we've had almost 3 plus 4 years of of a downturn, right? And, uh, this is, uh, you know, the digestion of the tremendous amount of inventory that uh, was built up in 2122. So I think actually, this is almost back to a normal cycle, right? Uh, and is the beginning of the recovery which uh I think we've all been waiting for

Craig Ellis: Okay. Lastly, I think you did mention in prepared remarks that we're not yet seeing any signs of uplift from the auto and industrial market. As you talk to customers in those end markets, are you getting any indication that they could begin to see an upturn sometime in the first half of calendar 2026, or is it still just very low visibility and an absence of any signs of improvement?

David Brown: Lastly, I think you did mention in prepared remarks that we're not yet seeing any signs of uplift from the auto and industrial market. As you talk to customers in those end markets, are you getting any indication that they could begin to see an upturn sometime in the first half of calendar 2026, or is it still just very low visibility and an absence of any signs of improvement? Craig, I think when we talk to customers, we actually get a sense of optimism, right? I think, you know, while there is still a little bit of headwinds, it's definitely improved significantly. We expect our auto industrial revenue to increase sequentially in Q1 from Q4, right? Going forward, we do see it, you know, it's lagging general semi and memory a little bit, but we do see it coming back, right?

Okay. And then lastly, I think you did mention prepared remarks that we're not yet seeing any signs of uplift from the auto and industrial market. But as you talk to customers,

So Craig I think when we talk to customers, we actually get a sense of optimism right.

Thank you know while there is still a little bit of headwinds has definitely improved significantly and we expect our auto industrial revenue too.

Lester Wong: Craig, when we talk to customers, we actually get a sense of optimism. You know, while there is still a little bit of headwinds, it's definitely improved significantly. We expect our auto industrial revenue to increase sequentially in Q1 from Q4. Going forward, we do see it, you know, it's lagging general semi and memory a little bit, but we do see it coming back. Particularly maybe our customers in Southeast Asia as well as in China. One thing you know, Craig, as you know, we are sort of involved in sort of a technology transition on power semi, which is basically, again, for clean tech as well as for EV. With all those factors, we definitely think FY26 would be a much better year for auto industrial.

<unk> increased sequentially.

In those end markets, are you getting any indication that they could begin to see an upturn sometime in the first half of calendar 2026, or is it still just very low visibility and an absence of any signs of improvement?

In Q1 from Q4, right and then I think going forward, we do see it you know, it's lagging general semi in memory, a little bit, but we do see it coming back right, particularly maybe our customers in southeast Asia as well as in China.

So and one thing I think.

As you know we are sort of involved in sort of a technology transition on power semi which is basically again for clean tech as well as for EV. So I think of all those factors, we definitely think FY 'twenty sites will be much better year for auto industrial.

David Brown: Particularly maybe our customers in Southeast Asia as well as in China. One thing I think, you know, Craig, as you know, we are sort of involved in sort of a technology transition on power semi, which is basically, again, for clean tech as well as for EV. I think with all those factors, we definitely think FY26 would be a much better year for auto industrial. That's really helpful, Lester. Thank you. Thank you, Craig. Thank you. At this time, I would like to turn the floor back over to Mr. Elgindy for closing comments. Thank you, Donna, and thank you all for joining today's call. Over the months, we'll be participating at conferences in New York and Phoenix. As always, please feel free to follow up directly with any additional questions. This concludes today's call. Have a great day, everyone.

That's really helpful answer thank you.

Thank you Craig.

Thank you at this time I would like to turn the floor back over to Mr. <unk> for closing comments.

Thank you Dana and thank you all for joining today's call over the months, we'll be participating at conferences in New York and Phoenix as always please feel free to follow up directly with any additional questions. This concludes today's call have a great day everyone.

Craig Ellis: That's really helpful, Lester. Thank you.

So, so Craig, I think, when we talked to customers, we actually get a sense of optimism, right? Uh, I think, you know, while there is still a little bit of headwinds it's definitely improved significantly and we expect uh our Auto industrial revenue to uh in increase sequentially uh into 1 from Q4, right? And then I think going forward uh we we do see it, you know, it's lagging General semi and memory a little bit but we do see it coming back right? Particularly maybe, uh, our customers in Southeast Asia, as well as in China. So, and 1 thing, I think, uh, you know, Craig, as you know, we are sort of involved in sort of a technology transition on power semi, which is basically again for fintech, as well as for Ev. So, I think with all those factors we definitely think fry 26 would be a much better year for auto-industrial.

Lester Wong: Thank you, Craig.

That's really helpful, Lester. Thank you.

Operator 2: Thank you. At this time, I would like to turn the floor back over to Mr. Elgindy for closing comments.

Thank you, Craig.

Joseph Elgindy: Thank you, Donna, and thank you all for joining today's call. Over the months, we'll be participating at conferences in New York and Phoenix. As always, please feel free to follow up directly with any additional questions. This concludes today's call. Have a great day, everyone.

Thank you. At this time, I would like to turn the floor back over to Mr. Elgindy.

Ladies and gentlemen, thank you for your participation you may now disconnect. Your lines are log off the webcast have a wonderful day.

Thank you, Donna, and thank you all for joining today's call. Over the months, we'll be participating in conferences in New York and Phoenix. As always, please feel free to follow up directly with any additional questions. This concludes today's call. Have a great day, everyone.

David Brown: Ladies and gentlemen, thank you for your participation. You may now disconnect your lines or log off the webcast. Have a wonderful day.

Operator 2: Ladies and gentlemen, thank you for your participation. You may now disconnect your lines or log off the webcast. Have a wonderful day.

Ladies and gentlemen.

Careful day.

Okay.