ACM Research, Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the ACM Research First Quarter 2025 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Mr. Stephen Palayo, Managing Director of the Blue Shirt Group. Stephen, please go ahead.

Good day, everyone. Thank you for joining us to discuss first quarter 2025 results, which we released before the U.S. market opened today. The release is available on our website as well as from Newswire Services. There is also a supplemental slide deck posted to the investor section of our website that we will reference during our prepared remarks. On the call with me today are CEO David Wong, our CFO Mark McKechnie, and Lisa Fang, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain of the financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation, and an unrealized gain and loss on short-term investments. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slide 13. Also, unless otherwise noted, the following figures refer to the first quarter of 2025, and comparisons are with the first quarter of 2024. I will now turn the call over to David Wong. David?

Thanks, Stephen. Hello, everyone, and welcome to ACM Research first quarter early conference call. We've just completed another important quarter, not only in terms of performance, but also in how we are advancing our position in this global semiconductor industry. Before I reveal the results, I would like to highlight a few recent developments and reflect the momentum we're building and the direction we're heading. We were pleased to see ACM research recently appeared on the list of the top 20 global semiconductor equipment company for 2024, as published by a leading third-party market research firm. That recognition reflects the steady progress we have made over the year and the growing impact of our innovative products. In China, we estimate our market share in both wafer cleaning and printing reached more than 25%, which translates to more than 9% global for each product category. Let's speak to their trust. We have earned from leading customers and also strength our product portfolio. Our panel-level packaging tool received the 3D Insight Technology Enablement Award. As a reminder, panel-level packaging is a next-generation solution for high-performance AI chip packaging. This award is yet another great validation of ACM's commitment to delivering innovative and enabling technology to our customers. At the same time, we are all aware that the global trade environment is shifting, with new tariffs and evolving policies. we are operating in a more complex and less predictable environment. In this new period, we think the strategy we set forth many years ago, develop world-class tools, establish R&D and production in key countries where major semiconductor customers are located, and focus sales effort on the global market becomes even more important for our future success. ACM is a U.S. company with deep operations strength in Asia. We're in a unique position. We have built a successful business in Asia by delivering world-class tools. As a multi-product company, we're expanding our tool, offering to better support our customers in Asia. We're now taking important steps to expanding our business into global market. In the U.S., we're investing in Oregon facility, starting with the class 100 clean room for wafer demo and R&D activities. And we're laying the groundwork for initial production capacity in our Oregon facility. We currently believe this is the best way to reduce tariff uncertainty for the US customer. And it is also a good business to establish production close to a customer. We believe that HCM position as the only US company with a full top-to-bottom Canadian product line, combined with technology lab and the commitment to production in Oregon, put us in a good position to take on the global market. Now, onto our business results. Please turn to slide three. For the first quarter of 2025, we delivered a revenue of $172 million, up 13% over a year. shipment were 157 million, down 36%. We know that shipment in Q1 of 2024 was especially strong due to customer demand. So this was a tough comparison. We anticipate a return to year-over-year shipment growth in the second quarter. Growth margin was 48.2%, exceeding our targeted range of 42% to 48%. We ended the quarter with a net cash of $271 million, upper from $259 million at the year end, 2024. Now I will provide the detail on product. Please turn to slide four. Revenue from single wafer cleaning, pothole, and semi-critical cleaning tools grow 18% and represent 75% of the total revenue. Growth was led by a strong demand for our staff and table platform, as well as continual momentum for Ultra-CB backside cleaning tool. In Q1, we qualify our high temperature SPM tool with a leading logic customer in China and achieved customer acceptance for our backend bevel edge tool from a US customer. Looking ahead in cleaning, We expect to see strong product cycle across high-temperature SPM, Tahoe, and other cleaning segments. We believe our top-to-bottom cleaning portfolio put us in a strong position to continue gaining share both in China and expanding to global market. Revenue from ECP, furnace, and other technology grow 7% and represent 16% of total revenue. We saw strong momentum in ECP tool for advanced packaging, and we are excited about the initial response to a new Ultra-ECP APP tool. As I mentioned before, ACM Ultra-ECP APP panel level plating tool received the 2025 3D Insights Technology Enablement Award in the United States. We believe ACM is the first and only supplier to offer rotating horizontal plating approach for the panel-level packaging. The industry is now aggressively migrating from wafer-level packaging to panel-level packaging as one of the leading solutions for the next generation of AI chips. The reason is simple. You get a better utilization with a square panel versus a circular wafer. As a result, We now experience a lot of interest from several major players in the industry. This product highlights ACM technology leadership in both front-end processing and advanced packaging applications. We believe this will allow us to play a key role as global industry demand innovations to support even involving semiconductor requirements for AI. We further Our furnace product continue to gain traction. Our view is that market is increasingly demand high temperature annealing solution, particularly for power semiconductor IGBT devices. Our UltraFN vertical furnace tool is a proprietary course-based design that reach temperature of up to 1,250 degrees C without distorting the wafer surface. We believe no other supplier currently achieve this temperature level in a vertical platform. This is yet another good example of ACM technology leadership. We expect a revenue contribution from our furnace product line, including LPCVD, oxidation, and ARD, to accelerate meaningfully in 2025, expanding from a relatively small base in 2024. Revenue from advanced packaging which is crude ECP but including service and the spell was down 10.5% and representing 9% of revenue. We're making a good progress with a new track and PCVD platforms. Both of these products come with ACM innovative and differentiated platform design that allow for process flexibility and high throughput. We had a solid list of ongoing demonstration and evaluation for both TRAC and PECVD. For TRAC, we plan to deliver our 300 WPH inline KRF beta tool in mid-2025. For our new platform, TRAC and PECVD, we expect some initial revenue contribution in 2025 with more in 2026 and beyond. To wrap up to the product, we have been on a strong growth path for the past five years. with new products, including Tahoe SPM and Furnace in 2025, followed by our panel-level packaging tools, Track and PCBD in 2026 and beyond. We remain committed to a high-growth model for the next five years. As a reminder, our $3 billion long-term revenue target anticipates $1.5 billion from China and $1.5 billion from the global market. Next. Let me provide update on our production facility. First is Lingang, please turn to slide eight. Our state of art Lingang production and R&D center is nearly completed. The site including two production building with the first now in production and the second available for future expansion. Each of the two production building can support up to 1.5 billion of the annual production capacity. Combined, we believe we can eventually support 3 billion of the production at Linga. Next, our Oregon facility, please turn to slide eight. As I mentioned before, we are investing in our US footprint. Our Oregon facility is 40,000 square feet. We are building out a demo lab and a clean room, and plan to add initial manufacturing to support our global customers. Now I will provide outlook for the full year 2025, persistent to slide 8, slide 10. We are maintaining our 2025 revenue outlook in a range of $850 million to $950 million. This implies 15% year-over-year growth at the middle point. In closing, our focus remains on delivering differentiated enabling technology. that solve our global customer's most critical process challenges. Now, let me turn the call over to the CFO, Mark, who will reveal detail of our first quarter results. Mark, please.