Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What factors are contributing to the expectation of a stronger second half of 2025 compared to the first half? A: Russell Low, President and CEO, explained that the expectation is based on their backlog, customer conversations, and internal work. Bookings have stabilized, and they are ahead of bookings compared to Q4. Customers have formalized their plans, allowing Axcelis to understand shipping plans better, giving them confidence in a stronger second half.
Q: Why is Axcelis not expecting a pickup in NAND memory revenue despite positive commentary from peers? A: An unidentified company representative stated that NAND is expected to remain muted in 2025. Axcelis sells more implanters when customers expand wafer output, not just when they change technology nodes. Current customer activities are focused on node changes rather than capacity expansion, which doesn't benefit Axcelis until new factories are filled.
Q: How is Axcelis managing the impact of new export controls on their business in China? A: An unidentified company representative mentioned that the initial estimate of the impact was cautious, including potential risks to system shipments. However, new information has provided confidence in their ability to deliver these shipments, leading to an expectation that the impact will be closer to the low end of the previously guided range.
Q: What are the indicators that the first quarter might be the bottom for the current market digestion? A: Russell Low noted that while there is significant digestion in mature technologies in China, the business outside of China remains resilient. They see positive signs from the US, Europe, and Korea, suggesting that the first half will be lower than the second half, but not broken down into specific quarters.
Q: What are Axcelis's plans for expanding into Japan, and how does it fit into their long-term strategy? A: Russell Low highlighted that Japan represents a significant opportunity, with Axcelis having made a beachhead in power applications. They aim to expand through their strongest products and then bring the rest of their portfolio. The expansion into Japan and advanced logic is seen as a multi-year effort, contributing to their long-term growth strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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