Nova Ltd.

Good day, and welcome to the NOVA Limited First Quarter 2025 Results Conference Call. All participants will be in lesson-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 touchtone phone. To withdraw your question, please press star and then two. Please note that this event is being recorded. I would now like to turn the conference over to Mary Segal, CEO of MSIR. Please go ahead.

Thanks, Operator, and good day, everyone. I would like to welcome all of you to NOVA's first quarter 2025 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, Novus 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 first quarter performance highlights. Following my commentary, Guy will review the quarterly financial results in detail. NOVA achieved another exceptional quarter with record results in both revenue and profitability. Our revenues grew 50% year-over-year, exceeded our EPS guidance, and increased non-GAAP EPS by 56% year-over-year. Our business performance is tightly linked to our executional and operational excellence, as well as our inherent ability to adapt to evolving market dynamics. Our performance was driven by NOVA's strong standing across market segments, regions, key customers, and technologies. This position was validated by the recent release of the annual Gartner Market Share Report. highlighting our growing presence the report indicates that nova's market share increased significantly in the thin film and os and cd metrology segment solidifying our position as the second largest vendor in this market semiconductor manufacturing capacity is in robust growth mode driven by demand for ai applications this surge has translated into significant revenues for NOVA as manufacturers across the globe build their production capacity and adopt the unique value proposition our portfolio offers. Our customers estimate the newly introduced AI models will enhance efficiency and lower the barriers to future AI development, resulting in broader usage and increased adoption of AI, all of which depend on advanced technology nodes. In parallel, the demand we see for mature nodes remains stable, with many new customers joining the ranks. As our second quarter guidance suggests, we expect these positive trends to continue. On a global level, macroeconomic uncertainty impacts various sectors, and the potential indirect implications of the current international trade climate are still unclear. Despite this, we have not observed significant shifts in demand or planned customers' investments, and our business remains solid. Now let me turn to some business highlights for the quotas. The accelerating adoption of gate-all-around and advanced packaging solutions lead customers to build capacity and increasingly embrace our portfolio. As a result, we saw a significant increase in revenues from gate-all-around and advanced packaging processes, which manifested in several areas of our business. First, we achieved record sales in our standalone solutions, led by record revenues from the Prism platform. PRISM has successfully completed two more evaluations for advanced packaging and leading edge nodes by a leading logic manufacturer, and it is shaping out to be a best seller for us. The PRISM spectral interferometry technology and unique algorithmic capability bring clear benefits to process control of through silicon via and critical hybrid bonding applications, which our customers appreciate. Second, we also saw record sales of our integrated metrology solutions. This quarter's highlights include a new penetration into two GatorAround manufacturers, one of which also adopted the solution for its advanced packaging processes. I'm proud to say that these latest adoptions have been driven by NOVA's superior technology, but just as much it is a testament to the power of collaborating with our customers. Third, our software business achieved record performance, driven by strong sales of our software suite, targeting high-value applications and improving performance and efficiencies. More specifically, our advanced packaging customers have noted the advantage of using our machine learning capabilities to solve critical challenges and reduce costs in their increasingly complex processes. Fourth, our materials metrology solutions also benefit from this demand. Denova Ellipson was recently adopted for gate-all-around processes by a leading IDM that already employs multiple Ellipson tools in other areas. In addition, we shipped another Metreon platform for qualification with a new gate-all-around customer. We also saw the continued adoption of the Nova Veriflex 4 platform by additional customers towards gate-all-around manufacturing lines. We recently introduced some new capabilities on the Veriflex platform, which opened a whole new range of layers for advanced 3D NAND manufacturing. We will be able to share more details in the future. On the memory side, the majority of demand is coming from DRAM, and it is driven by the need to increase capacity in high bandwidth memory production. Notably, we are seeing heightened demand for our chemical metrology solutions. Finally, all this growth is also driving our services business forward. This quarter ended with another record in service revenues, which grew more than 30% year over year. Now, I want to share some updates on our operations in Germany. During the first quarter, we completed the acquisition of Centronics, and we are progressing well in post-merger integration. While the contribution to the first quarter is relatively small, we expect to see our business from this acquisition grow significantly in Q2 as we transition to direct sales in key markets. Also, during the first quarter, we moved into our new facility in Bad Urach, Germany, The new facility combines state-of-the-art manufacturing with a research and development center focused on chemical metrology. The new site doubles the capacity of NOVA's chemical metrology division and fosters collaboration by bringing all the division teams together in one location. The transition to the new facility has been seamless, and the next quarter looks very promising for the division. Before I complete my prepared remarks, I wanted to note that we recently published NOVA's 2025 Sustainability Insights Report. The report highlights significant milestones in various areas, including renewable energy use and reduction in greenhouse gas emissions. The report includes updated KPIs that have been incorporated into our operating model along with a revised set of goals that place greater emphasis on key environmental and social impacts. To summarize my part, NOVA had a robust quarter characterized by healthy demand across various nodes, segments, and territories. These positive trends continue to underscore the value of our tools and services. As we look ahead to the second quarter, we anticipate similar strong demand patterns. The current markets are making visibility more challenging. In the coming months, we expect to gain clearer insights and will diligently monitor potential impacts on market demand, managing our business with prudence. Considering our current business momentum, market share opportunities, and the anticipated increase in process control intensity at the leading edge, we are confident in our ability to outperform WFC growth in 2025. Now, for some more details on our financials, let me hand over the call to Guy.