Eltek Ltd.

and welcome to the NOVA Limited fourth quarter and full year 2024 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Mary Siegel, CEO of MSIR. Please go ahead.

Thank you, operator, and good day to everybody. I would like to welcome all of you to NOVA's fourth quarter and full year 2024 financial results conference call. With us on the line today are Gabby Weissman, President and CEO, and Guy Kisner, CFO. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, Please view it in the Investor Relations section of the company's website. Gabby will begin the call with a business update, followed by Guy with an overview of the financials. We will then open the call for the question and answer session. I'll now turn the call over to Gabby Weissman, NOVA's President and CEO. Gabby, please go ahead.

Thank you, Miri, and thank you all for joining us today. I will start the call by summarizing our fourth quarter and full year performance highlights. Following my commentary, Guy will review the quarterly and annual financial results in detail. NOVA ended the fiscal year on a high note with record revenue and profitability, outperforming industry indices. Our revenues grew 30% year over year and reached $672.4 million while non-GAAP net income grew 38%. We have cemented our position across multiple device segments and achieved numerous milestones across our product lines, including strategic penetrations into leading manufacturers, an evolving position in new segments, and a growing market share. Our agile operational model and strategic focus continue to generate value to our shareholders, enabling us to drive higher profitability while relentlessly growing our business. Our performance this year was driven by our materials metrology solutions record sales, coupled with a growing adoption across market segments. Additionally, the growing revenue from advanced packaging processes underscores the importance of our dimensional and chemical metrology solutions. This broad-based growth highlights the strength of our diversified portfolio and our ability to capitalize on multiple market opportunities. Turning to the fourth quarter record results and our sixth consecutive quarter of growth, we exceeded the top end of our guidance in revenue and non-GAAP profitability. Our record quarterly revenue was driven by the robust sales of the Veriflex, Ellipson, and Metreon platforms. This success was augmented by record sales of our dimensional standalone OCD solutions that saw heightened demand due to their unique capabilities in gate-all-around and advanced packaging applications. These results underline our ability to meet the evolving needs of our customers and maintain our competitive edge in the market. Looking forward, NOVA is poised to leverage the transition into advanced manufacturing processes and architectures. We expect our growing exposure to new market segments and our differentiated portfolio to drive sustained growth into 2025, continuing the momentum we've built. The surge in AI-related demand has been a significant driver of our market, as it necessitates energy-efficient computing power and accelerates the demand for advanced processing nodes and memory solutions. Our customers are leading the transition to 3D architectures, which translate into multiple catalysts for our business, including larger and more complex dyes that require a growing number of wafers, a higher number of layers, and a leap in the number of process steps at a much smaller tolerance for error. Increasing complexity drives the need for high quality metrology solutions, which Nova is well positioned to provide. Let me share some highlights from 2024 and the recent quarter. First, we are encouraged by the broad adoption of Nova's comprehensive portfolios across gate all around and high bandwidth memory processes. Leading foundries, logic and memory manufacturers are increasingly integrating multiple Nova solutions from our optical dimensions, materials, and chemical metrology portfolio. This widespread adoption underscores our ability to address the complex metrology challenges associated when manufacturing the most advanced semiconductor nodes. Our unique solutions for two and a half and 3D structure applications are pivotal in enabling our customers to achieve the precision and efficiency required for current and next generation technologies. Our advanced packaging revenue more than doubled this year, reaching 15% of product revenue and signifying its growing importance to NOVA. Our integrated metrology solutions have been adopted by four of the top five advanced packaging manufacturers, while our standalone OCD market share in the segment grew significantly. With a recent addition of Centronics, we expect our revenues of advanced packaging to grow further. Centronix modular dimensional metrology technology will enable us to diversify our offering into the rapidly growing field of advanced wafer-level packaging and specialty devices and into additional wafer sizes and types beyond 300 millimeter silicon wafers. Along with NOVA's optical CD standalone and integrated metrology, we can offer customers a rich portfolio for critical applications in both back-end and front-end fabrication processes. Centronics builds highly modular multi-sensor platforms with proprietary sensors and software that extend the range of applications we can solve. Some key examples that are critical to advanced packaging include total thickness variation, topographies for roughness measurements, and wafer bow and warpage. Following the deal closing announced last month, the post-merger integration teams are working diligently to tighten collaboration and align activities while maintaining focus on execution, meeting delivery timelines, and business goals. Now let me review some of the highlights from our product division. In the dimensional metrology division, our integrated metrology earned new market share in multiple segments, including advanced packaging and HBM, expanding our TAM and securing our market leadership. Our standalone OCD solutions had a record year and increased our market share, driven by high demand from numerous customers due to their high productivity, precision, and unique offering. The Nova Prism platform sales grew at high double digits this year-over-year, with multiple engagements with both front end and advanced packaging customers. To meet market demand, we recently launched the Nova Velocity, the next generation of the successful high productivity platform MMSR. Driven by increasing demand for productivity and yield improvements, Velocity features a unique dual chamber configuration that enables the highest productivity in standalone tools in the market. The platform's speed and robustness have been a deciding factor for a leading logic manufacturer who adopted the platform and is expected to purchase multiple tools. These achievements highlight our ability to deliver innovative solutions that cater to the needs of our customers. Next, our materials metrology portfolio delivered record quarterly and annual results. As we shared in early January, the Metreon platform was adopted by a leading global memory customer for its most advanced DRAM R&D as well as DRAM and NAND high volume manufacturing lines. Metreon was selected based on its ability to perform full wafer measurements of epitaxial layers with high sensitivity and precision. We expect to receive additional orders from this customer. In addition, The platform is currently being evaluated by two of the top five customers in memory and logic, and we anticipate receiving orders from them later this year. The Veriflex platform saw a market transition and broad adoption of its fourth generation, becoming the tool of record for several leading foundry and memory customers. The Nova Ellipson platform performed well this year, with repeat orders from a leading memory customer and penetrating to two new major customers. Looking ahead, we have strategic foundries already planning to use the platform for strain and material concentration measurements. The performance of our materials metrology portfolio attests to the value of our solutions and their critical role in advanced semiconductor manufacturing. Our chemical metrology division had a record growth year at a high double-digit rate. Significant highlights include the Anchocene market share growth in front-end customers and the Ankylizer proliferation with memory customers for HBM. Additionally, we have ongoing evaluations with memory and foundry customers, which we expect to materialize later this year. Finally, Our service division delivered another record quarter and year, with 2024 revenues growing 19% year-over-year, driven by increasing demand for capacity and yield improvements. In terms of market outlook, our industry continues at an upward momentum, driven by end market demand for mobile and AI, and the investments in building a matching capacity in advanced logic nodes, DRAM, and advanced packaging. We expect WFE to grow at mid-single digits this year, driven by leading-edge demand. In summary, our well-established fundamentals will help us increase exposure to additional opportunities in adjacent markets and processes, new customers, and new critical applications. Our strategic priorities remain intact with continuous investment in our long-term roadmap and by partnering with our customers across all territories. In 2025, we expect to capitalize on the opportunities created by our enhanced market position, continue our growth trajectory, and outperform WFE. We will elaborate on our strategy and vision at our upcoming Virtual Investor Day on March 17th, and we look forward to seeing you all there. Now, for some more details on our financials, let me hand over the call to Guy.