Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more context around order activity, particularly in terms of end use and geographic basis? A: James Coogan, CFO, explained that the softness in the general mature and power space, especially in China, is driving lower order activity. Although there are ongoing discussions, the placement of purchase orders continues to be delayed, impacting expectations for the first half of 2025.
Q: What are the positives and headwinds for the first half of 2025 compared to the second half of 2024? A: Russell Low, CEO, noted that while there is a digestion period for general mature and power markets, particularly in China, memory shows promise. They expect more activity in memory in Q4 and into the first half of 2025. However, without a meaningful recovery, 2025 could be a down year compared to 2024.
Q: Have you taken any actions to eliminate the use of Chinese components in your supply chain? A: James Coogan, CFO, stated that while not specifically eliminating Chinese components, Axcelis actively manages its supply chain to improve localization and reduce cross-border shipping costs. They have a strong supply base in the U.S. and other regions outside China.
Q: How is the transition from 150mm to 200mm silicon carbide wafers affecting your business? A: Russell Low, CEO, mentioned that the transition is picking up speed, with many customers already taking delivery of 200mm capabilities. Most customers will bring up 200mm capacity on new machines rather than transferring from 150mm, presenting opportunities for new tool sales and aftermarket upgrades.
Q: Can you provide insights into the utilization rates of your equipment, particularly in silicon carbide? A: James Coogan, CFO, indicated that utilization rates are generally down, as reflected in lower CS&I numbers. The softness in general mature and power markets, along with memory, affects utilization, but specific customer or regional details were not disclosed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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