Veeco Instruments Inc.

Q3 2021 Earnings Conference Call


spk_0: welcome to the veto instruments in ousted que three twenty twenty one earnings call at this time like to china comfort zone in the sir anthony the to be get an answer relations please go ahead
spk_1: thank you and good afternoon everyone joining the on the called they are bill miller because chief executive officer and john kerry and our chief financial officer please earnings release is available on the the go website please note that we ever repairs like presentation to copy today's webcast week or you to follow along with the slides on pico dot com because being recorded a beagle instruments and is copyrighted material it cannot be recorded a rebroadcast without the goes express permission your participation implied consent to are recording to the extent this call discusses expectations about market conditions market acceptance and future sales of the company's products future disclosures future earnings expectations or otherwise make statements about the future such statements are forward looking and are subject to a number of risk and uncertainty that could cause actual results to differ materially from statements made including as a result of the company team pandemic these factors are discussed in the business description management discussion and analysis and risk factors sections of the country's reports on form ten k an annual report to shareholders and in our subsequent quarterly reports on form ten you current reports on forms eight k and press releases bigger does not undertake any obligation to up the any forward looking statements including those need on this call to reflect future events or circumstances after the date of such statements during this call management may address non gap financial measures information regarding such nine got financial measures including reconciliation to get measures of performance is available on our website with that i will turn call over to our ceo miller
spk_2: thanks anthony
spk_1: good afternoon everyone can thank you for joining the call the bigger yeah jim outstanding job this quarter we posted solid to treat financial results or continue to invest for growth and we're making progress towards our long term financial targets we shared at our house day on september ninth all or two tregarding metrics came in at or near the high end of our guys with revenue one hundred fifty dollars can buy records semiconductor sales and strong stories revenue are non yeah gross margin came in at forty three percent and we on job operating income of twenty four million dollars leading to dilute non gaap fps of for he says a quarterly revenue is up thirty four percent you're on you're looking at your to date revenue compare the same period last year we chief thirty seven percent revenue growth driven by sixty seven percent increase and semiconductor sales and we generated thirty million dollars in cash flow from operations which the highest score in generated and all seven years we can transforming the company to take advantage of lasting global negatrons part of the transformation includes making fundamental changes such as developing and practicing a set of core values to improve our culture this afternoon was published our second sustainability report many of our transformational improvements over the last few years are reflected in this report but it includes so much more we greatly improved our environmental and social disclosures and continue to make progress in these areas minimizing our environmental footprint becoming more inclusive and continue our commitment to good governance all line with because core values we know these actions will help us improve our operations to better serve our stakeholders while building a more sustainable and transparent company now let's start to an update on our specific market opportunities beginning with our semiconductor market it's been well publicized that way for fat equipment spending is expected to be over eighty billion dollars and twenty twenty one and twenty twenty two is expected to grow further from there the strengthen equipment spending reflects both technological advancement and capacity additions we address this market with three major product lines were innovation has resulted in solutions that drive better performance for our customers enabling better performance allows us to win and targeted applications and expand our served market in fact we shared it are endless day that over the long term we expect our semiconductor market opportunity to grow a keg or of approximately twenty three percent much faster than forecasted launch erm wfp growth the three product lines are laser kneeling which is currently used in production at told advanced and trailing logic knows i being deposition systems for t v last blank production and orthography for their packaging our laser annealing products are used by device manufacturers and a most critical process steps customers choose v goes laser annealing solutions because of it's superior capability it's a needle that kneeling with the shortest lol times for improved device performance or currently production tool a record at multiple customer we expect growth and was product line the come from market expansion in a few ways in the near term will continue to work with our existing logic customers on their next notes and we're making progress with a significant new logic customer and the longer term we've engaged memory customers with evaluation systems and demos and expect to penetrate this important market overtime we had another stronger than a quarter laser and yelling get them by systems to existing logic customers and they build our current knows our next products seven the semiconductor market that i been deposition system for ie the last flight production the the with atrophy it's critical to the progression of moore's law and device geometries in the logic and memories continue to shrink we expect continued adoption of he the lithography we've seen public remarks from intel samsung tsmc hi next and micron confirming our commitment to give you the and they seek to advance their product road maps and addition a it's ml recently announced plans for double dare you be skin or output from thirty five systems and twenty twenty two from and seventy systems and twenty twenty five consequently we expect to me integral for i'm being systems use for gave the math like production in fact we recently increased our outlook for be left blank systems from two to force it does per year get three to five systems annually on average moving to advance packaging for a few quarters out we have expressed increasing confidence in our advance packaging opportunity we had a strong equipment shipping quarter far with docker few systems and we had a repeat multi system order from a leading osa to support production of gp use and high performance computing chips all three of our products serving the semiconductor market are performing well and are expected to continue this momentum for the foreseeable future as expressed in our enlisting the semiconductor market that are biggest driver of growth over the next three to five years and we're making progress towards that goal we serve the compound semiconductor market primarily with to product lines are what processing equipment for our power amplifiers and filters and emo see the equipment for power and photonics applications are wet processing equipment has broad appeal and material lift off and solvent based applications in addition to the continue demand for i were processing equipment across our of filter and amplifier applications or seeing demand in photonics applications as well our and cbd systems enable fast charging another power management solutions as well as might her well geeze we should single a for systems for power and like a rally the application during the quarter and continue to work towards penetrating geeze growth markets or third market is data storage and the near term based on our or activity we expect data storage revenue to decline however our customers continue to invest in their aerial density road maps and increase the as they produce both driving more i am being system demand with the amount of data stored forecast to grow at thirty five percent annually are confident about the long term prospects of our data storage business in summary led by or traction and of semiconductor market demonstrated by application limbs backlog position and visibility we are confident we will grow revenue in twenty twenty two now for an update on our twenty twenty one priorities first regarding our resilience there are a couple of days with fifty being a priority for the company and one of our core values we've decided to delay our club at nine pm return to facilities plan that keeps our manufacturing employees safer while ensuring continuity of our operation regarding the it's of our supply chain like many of our peers more experience in effects of global supply chain disruptions that is longer lee kind and cost increases we've been buying in advance and resurfacing components on a more frequent basis each quarter in order to pro actively manage the impact to our i'd like to thank our supply chain team for minimizing disruptions car customers next we continue to focus on profitability am on track to meet our long term financial targets and from a growth perspective were solidly on track deliver more than twenty five percent revenue growth in twenty twenty one our investments in evaluation systems and service infrastructure are setting us up for success in twenty twenty two and beyond by keeping these priorities cop of mind to veto united team is committed to making a material difference and building a stronger vika now i'll handed over to john thanks to own good afternoon everyone are we discussing nine yeah financial results and encouraging you to refer to the reconciliation for gap results now crushingly or at the end of the ninety degrees impatient looking at our of new revenue for the record with a hundred and fifty million dollars representing a thirty four percent year on year increase and both three percent sequentially semiconductor at a record seventy six million dollars me up in the one with fan of the orange revolution increase forty two percent sequentially in a hundred and twenty seven percent year on year the and that means we've made in evaluation civil servants product development and manufacturing after the have enabled exam in our semiconductor movement the storage at thirty nine million dollars or twenty six percent of revenue every fucking book capacity and in technology additions by our customers revenue and officers prevented from a year ago and i'm expecting down twenty five percent annually come on semiconductor was relatively flat sequentially and twenty three million dollars would represent a thirteen percent of revenue by a multimedia my parkinson's the phone from power aura and photonic application and scientific and other came in at eleven million dollars and made up a percent of revenue
spk_3: a few comments on to three revenue by region
spk_1: our asia pacific region in school in child was forty percent of the total would say on the line be in in length of youngsters them the semiconductor customers and the main contributor the united states region made of thirty three percent and was driven by i've been through some shifted data storage costs china made up a pain percent primarily from semiconductor and shift to variety of the customers and finally the meta nine percent now trying to i know i'm gonna quarterly results gross margin came in at forty two point six percent which was a percentage points higher than last quarter and for the top and with our got it operating expenses for the core with thirty nine point six million dollars fly a last quarter and twenty six point four percent of revenue which was the reduction from last quarter operating income of twenty four point three million dollars for the court increase fourteen percent sequentially and seventy two percent from the same quarter last year and thanks for the poor was partly by our thousand dollars with net income coming in at one point five million dollars nine yeah bps was forty seven on and to share town of fifty one point seven million shares now onto the balcony the careful i like we ended up ordering cash in short term investment than three hundred thirty six million dollars but the quantum angry resistance million dollars from a working capital perspective our accounts receivable decrease that eighty seven billion dollars this role of decreasing the of those than fifty two days from sixty seven days in the park or inventory increase approximately seven million dollars to one hundred and seventy one million dollars to support increase in value in procuring components earlier to address longer lead on the elderly the lumens or increase two hundred and seventy three from one hundred and sixty seven and into to accounts payable decreased to forty nine hundred dollars at every level pp own decrease depicting fifty one days from the a into to
spk_3: reduced our working capital by seven million dollars during huge read if along with our area in the or resulted in thirty million dollars of cash flow from operation
spk_1: long term debt on she was recorded at three hundred and thirty two million dollars for preventing the carrying value of three hundred eighty nine billion dollars inconvertible know our how that turned the corner with twenty two million dollars these include eighteen billion dollars to the phantom have a passion project and apartment four million dollars and other capital spending our found a facility of coming along well and we back to ship out first systems from that location in coming weeks
spk_3: now turning to our guy
spk_1: the queue for revenue expectancy be between the hundred and forty and one hundred and sixty million dollars would not gap was margin between forty one point three percent we expect you for knowledge out there to be between forty one million forty three million dollars an increase from two three as we continue to invest for broke we are on pace however been bombed iraq as as a percentage of really to decline as compared to twenty twenty yeah ppl the coupon expected between for stamps and twenty two cents per share not yeah pbm to stay in between twenty and fans and forty five cents per share them with you not get bps and based on approximately fifty two million check out for reference even cable on the back of section of the island's pretty patients provide detail on your back with the convertible notes on to check out at the midpoint of our cue poor guy in full gear twenty twenty one revenue in respect to be approximately five hundred eighty million dollars with the dollar thirty five and non gap ppm this of about folio twenty twenty one guy once again with revenue up twenty percent a year on year and on gas ps of more than fifty percent now for not be the on cue for in the first quarter of twenty twenty two we will be adopting the haven't expanded a issue for twenty years old said for convertible data accounting upon adoption how convertible notes will be account and holy as dead for model two when calculating longer bps darting into one point one two orderly cash interest expense and the mountain three point two million dollars should be added back and non gaap net income and from and fifteen point six million shares should be added to the way the average day the shares outstanding to with black if kimberly method of account replacing the delusion is beyond using the common persons documented recounted we provide the table the back upstairs and of the earnings be impatient detail told the gap and non gap of fact of the new give converting after that accounting for our convertible notes please note there is no cash flow impact result in front of the cabin change you on how visibility into cube one point one two different levels we rather do a similar range to argue for guys looking further into twenty twenty two weeks back over year revenue to grow compared to twenty twenty one as we continue to gain traction in our family dog and business as the are highlighted earlier we will also continue to make the necessary bath and people material infrastructure to support our bro and then back the on i'll be happy to take your question
spk_4: thank you
spk_0: and she liked ask a question fishing were pissing star want any time phone keypad if using a speakerphone punishing me function is to last a long signal to reach our equipment once again and star want to comply to ask a question and we'll take our first question from tunnel and barclays please go ahead have you guys good afternoon and congratulations on the really nice results
spk_3: bill i think most most earnings call to do me a good job of walking this through some of the different tools that are and evaluation give us an update on what's shifted was kind of on the come here could you please walk through you know some of the tools
spk_0: that you still have yet to shift the here and then talk about any kind of new and you may have on the to a and that be really helpful
spk_1: yet i'm at a timely question we've been selling the street playing the ship ten tools of this year at this point we've shipped nine of those and so at the plant ten eight or in semi the to are in compound sent me in the seventies space the big driver is ls say what we have five ellis a tools shipping about tools out in the field the most interesting lines are arduous third advanced logic customer we'd actually turn that all over to the customer they're running qualifications and and news where hearing is positive i would say that and similarly in the where am i wish it to leave our systems to the ram customer he and want to get in there are there are tools are have been turned over to the customer they're running device calls and the news i would say a positive it's time so that sounds pretty exciting or and in the compound semiconductor space ah we have shipped to evaluation systems one is er lumen out for right micro l e d applications and we recently shift ah and eight and scan on so again single way for propelled tool two are a large foundry for power electronics or application so i would i would characterize our progress at this time as as pretty positive i think we are really on track or maybe a little bit ahead of where we currently out our plan this pond last year so we're we're pretty bullish about our about the progress we're making
spk_5: join a woman my ball than just about the the of the in the corner from the semiconductor been is weekly record highs there is that a function of timing for the up events or are you being in retraction are in different areas of the business where you know you're you're getting new to order the you hadn't have were understand me times are our loan book and you just described kind of what happened in the corner and then i also don't like with him some new traction with the customers but that the little looking like it can be really shown the next year you know about some of the different areas where you're you're seeing increased order activity in the family business right now i inhaled i may impact next year thank you
spk_1: yet trial i would say regarding the quarter john i would say we we did reach our record our revenues and really that's on the back of all three legs of our store a semiconductor that as laser and elaine ah we ship didn't you be tool in the quarter and a tremendous saw progress we're making advanced tactics i think ah the stop up there was i would say on all three of our stock markets with in semi that leesburg the champ yeah that the an anachronistic go get it so yeah i kind of look out a little farther over the arise and we're really excited about the growth opportunities for us and semi arm this year are seventy revenue through que three is up sixty seven percent compared to the same year last year you were forecasting doubling are backlog and semi from the beginning of the year to the end of twenty twenty one and i would say we're experiencing tremendous poll across the board from and a said laser kneeling with our existing customers of he said he spoke about the opportunities with a new logic in memory customers you be mask like ah remained strong lifts you know both logic and memory customers adopting you the ah we've taken apart annual forecasts from two to four systems to three to five systems based on ah yes and remarks and then also indie bands packaging space weeping getting increasingly more constructive ah on this opportunity on and out we are seeing actually during the quarter multiple system orders from multiple customers and that was for oh sat ideas and boundaries so it's it's very much abroad growth in advance packaging lithography we are on the or also seeing it as customers are buying multiple tools athlete matching is becoming more important and are a p three hundred is really up to the task fair to the competition and are we believe we're reading some market share in this growing market
spk_6: we can go to get out
spk_7: thanks doc
spk_0: he was here next question from petticoats before
spk_1: ah thank you very much include waxes wound a nice man outlook bill maybe just a follow up on the advanced packaging comments are you just provided i can you give a little bit of color why there you see a broadening of applications where you primarily still from quote like pan out applications for mobility war are you seeing greater a quote adoption in areas like hundred guineas integration and other types of process you can use give a little bit of column on that absolutely patrick we are clearly seeing a broadening of this market that oh no not only are you know the the typical markets for on the an outlay for level packaging ah copper killer and pumping for you know mobile ai in high performance computing
spk_8: a yeah
spk_1: what we're seeing his arm ah more focus in the heterogeneous integration opportunities and it seemed saw it that at things could be driving it's i would clearly say it's a broad name of the opportunity as opposed to for mobile focus
spk_9: a a few years ago
spk_1: great that's helpful and maybe is my while the question you guys couldn't really good job both in terms of the revenue line as well as on the market for given the supply can constraints that our existing unique industry today can you use a little qualitative collar on some of matches new took that are allowed you to avoid some of the this that's the other companies are you know her and have come across
spk_3: bash shock advocates is john and thanks for the questions so certainly were not immune to the challenges that are well documented in nine people and six experience in supply chain constrain and i would say that get into three was more challenging than to to but we've been successful manager the mitigating these challenges and of never exceeded our revenue targets by doing a few thing
spk_1: your first of all working closely with our suppliers to monitor upstream risks i would say that making selected by go ahead of the man and you see that to some extent in increase even tory and
spk_3: when of supply chain issue has been identified we move quickly to execute are alternate supply so i would say you know patrick despite be supply chain concerning you know we're really happy and expect that the number of to grow to approximately five hundred eighty me
spk_1: million dollars this year twenty percent increase year on year and have been able to mean our customers important requirements
spk_10: pregnancy very much
spk_1: thanks patrick and country
spk_0: he will hear next from tv doing steelhead
spk_11: yeah thanks for taking my questions just a couple of
spk_1: ars the advanced packed with target market on i think about this question the path could you take a gander at what you think aside the market gonna be in this year and next year i imagine next year it's gonna show up fairly significant growth so actionable what i'm trying to dig at
spk_12: for
spk_1: yeah i would say we've been i would say look historically excising this market at ah fair one hundred million dollars this year l we expected to grow get ill in excess of twenty percent plus ah in twenty twenty two and i would think our market share is going to increase from
spk_13: time need for to use to the lady over sixty percent
spk_14: and who owns to tell ya like that
spk_1: oh go ahead i'm sorry diet it is is the combination of ah of market his hand and some decent share game excellent know at filed the balance of the market if you own forty to sixty percent share who'd you is cuckoos number two in the marketplace at this point at this point i would say our the primary competitor for us as canon and we also see competition from us me
spk_15: that are probably the primary competitors
spk_1: okay
spk_16: and i'm
spk_1: you mentioned that you're semi my business said they could could have a keg or of twenty three percent over the next two years i'm could you can't just help us understand the three segments that you mentioned how would we handicap the three vs that closer what gonna be the fastest growing and
spk_17: about the three
spk_7: from a market citing standpoint
spk_1: are you i would i'm sorry say it again yeah i i think you might you your semi that gonna go twenty three percent over the years and you have three february of that kind of try to handicapped or three segments yep yep and gonna be like twenty to twenty five kind of range on i would say ah
spk_12: the largest growth i look at our cat years from ah
spk_1: twenty to twenty five
spk_18: and i would say are
spk_1: one laser kneeling sam is going to girl pretty significantly on our existing semi products are going to grow ah we have a list of grow a little less than twenty percent on our windows sam over that for period of time are more forecast they get about ten percent and on the one big impact his arm we announced activity and i'm being deposition tool for low was to the medals ah and today obviously we don't have any any business fair at all but that we are successful ah that would add an additional two hundred and fifty million dollars of sam in twenty four and twenty five so that's a big chunk but that's really out farther in time okay and then i'm on a question for me in he'd met even pretty clear about the data stored market being down at know ah sequential you know i get i'm guessing it's down and twenty twenty two am you know you have a handle on now about how much going to be down in and bomb it if you don't the i understand and but if you could take a stab at also when you think the inflection point is when you figured that business grows again sequentially and i would say young as you know our data storage customers have an adding capacity over the last three years and out your we have a lot of order visibility at this time last year and we've actually hit all of our ah revenue objectives in data storage as planned for the hear what we're seeing from an order standpoint over the last three quarters we expect customers to slow that piece of capacity the issue in twenty twenty two so we believe revenue for data storage will be lower in twenty two than twenty one
spk_0: i think it's som
spk_11: it's important to note though that on a longer term basis wheatley really see data livery shin by driving this industry of data stored as forgot to grow at thirty five percent per year
spk_0: i had shipments are expected to grow at eight to ten percent the complexity these heads is a continuing to roddy who can percent so long term we feel pretty good about the long term prospects but but they've i want to make a pretty important point here that ah i'm at the vehicle level i can tell
spk_5: you that even with significantly lower data storage revenue we're seeing strong demand and or activity in the semiconductor market with laser and kneeling to van packaging little and give you the mask blanks that we're confident in revenue growth in twenty twenty two
spk_10: i thought that you very much
spk_12: faith
spk_1: next question for ricky from pop timer hi good afternoon didn't way mark on the cloth iraq wanted an echo congrats on those notes my first question is on alexei sounds wondering if you can be minus the number of customers and a number of beatings upsets you have a lead you know they teach you are caught my eye you analysts say how does teach you are actually trained for you convert into to and believes that way and one used to happen for that your car so today we have ah we're the good we have leading edge dial logic and we have trailing edge customers i would say job as he got two thirds is leading and here and so of i'm just gonna focusing in on the leading edge logic we have to customers today
spk_10: a and our we have one application step will one customer and three application steps with the second customer and what we announced is that we've wine practice tool of record at their next advancing note tell what that means that as that node rules out for an application step with it and a customer at next know
spk_1: that would be about a twenty five to thirty five million dollar opportunity over the are one and half to two and a half year period that's that's about how we we size that he thinks that very helpful on my second question gone he be moon you going to deploy an email to the customer this year how should we think about email to it's been twenty twenty two seems like with semi booking to be strong a bit on your own baseline would have one hundred percent happen half could you use any of those originally expected either choose to tell them back on orders or do you have capacity to support both we have capacity to support both sell we expect you know during ah next year to could turn our these evil tools into into revenue and so that number would decrease but at the same time we have a plan to ship
spk_3: some of on your products out into the field as either also i would think
spk_1: from an ongoing business standpoint we are building a business plan to meet our revenue growth plus shipping new either systems and keep
spk_3: and keep the emails and the field at about ten at a time as we gotta move forward will be in a small fry with that i would guess that coming years
spk_19: come as we continue to grow
spk_20: and in will also be bringing on new capacity as we bring our san jose utility know online or we mention that we expect to show on tools from that facility in the coming weeks and beautiful he had transitioned into that
spk_0: a new facility by que three of twenty twenty two and this will affect the gleam double the amount of output an eye on from our facility compared to our current to
spk_5: facility there as well in support of on refinements coming from the semiconductor industry thanks guys
spk_21: thanks way he can
spk_1: he can he your monitor star what if you'd like to ask a question for you next from mark millar would pinch my company i feel so congratulate you know results i should have any kinda data storage and seen as been very strong there there's now some cyclical slowing but as the industry translates to hammer and hammerheads or their new process
spk_2: new processes come in with small and cook requiring increase usage for your tools whether it's at your deposition
spk_11: yes mark that's it that's a very true statement that i would say
spk_1: the that really driving a lot of the complexity of their heads as they advance and and moving from you know shingled magnetic recording to energy assisted reporting that will continue and that and
spk_22: a lot of that buying ah is not yet happened actually sell out your were were mean positive on the data storage market for the long term and work is expecting ah a down period in twenty two frankly just given our bookings act
spk_11: puberty and are the time
spk_1: what would these new process that require upgrades to exist nina equipment weather's at your deposition yeah we're working closely with their customers to our meet their process requirements and ah yes we are introducing some new technologies that hope we can be upgradable and lastly any calvin you didn't mention any coven impacts her how you're managing through that was out of any any cost of addition of a significant or a quarter oh john spoke about supply chain our challenges i would say ah from a factory labour standpoint i think the company has performed very well
spk_23: and i wouldn't say we've had any significant mrs ah year to date
spk_0: ah
spk_1: either from a supply chain or from a of the go labor standpoint yeah and your i would add and you know we have seen some you know inflationary on on the turtle cause i think you the area that them the impact because of his increase would just the cause i'm saying that if you know i'm pulling for the third quarter or mark maguire forecasting for the fourth quarter back combination had about a one the bomb pointing on impact on our on our gross margin thank you
spk_24: thanks for making more
spk_1: an exclusive i'm concerned with no one
spk_9: yeah on for taking the question and i'll offer my congratulations as well on to he made a comment about you are winning any palm
spk_1: packaging because he had been are matching picky picky picking flush out on a little bit our our with yeah our our architecture on his is much simpler than our competitors and down your age of very robust rugged designed on as i think you know i'm many applications required age and i lying as poster on some competitors are only i line that assad that's one area where differentiating and then on fleet match anyway he just how that have tighter specs i believe that largely ah
spk_9: i do to optical design
spk_1: he eat are you talking about palm you know overlay resolution in are you competing against the scanner that and for going on
spk_3: though this is our legacy a p three hundred product ah
spk_1: applications typically we're seeing a lot of them that we're winning at take to micron and up added okay i understand and then to have you should be i'm being definition system for he bell in i'm semi no am not sure that we're about in the mix the of demos with slit customers and expecting the ship that ah hopefully this quarter and if not ah early early and mcewen not and and then on the compound family with you've mentioned on power ah rush on and on for context now sits on a good be given a little bit of color on up and most he did he died you know how much should have you been conceived babies photonics and how much it's power and how much with as up shortly yeah we try to take that apart a little did i would say gosh our and what cbd businesses really operating at historically low revenues are today post exit other commodities delhi the business yeah we get a lot of work restructuring the business and heading towards new markets in new offer charities and as you know we go after ah the guy may try applications with propel single week reactor and i can be used for followed by power electronics are at devices as well as disruptive silicon based microbiology applications and we have us second product for our sniped boss fight our called the lumina for applications in photonics that is in the pot fi lasers pixels as well as read micro allergies
spk_3: i would say we're starting to gain traction in mlc be okay in the near term we expect to see revenue growth in the early stage microbiology ah next year and from a number of opportunities ah
spk_1: it including a r v as well as other photonics saw applications also at i mentioned week we did see ah the eight and scan on so again our power market with multiple customers and like any vouch for eight inch power electronics a large boundary
spk_24: wow we also as i mentioned place the an email tool for read and like or well even though the answer your question i would say
spk_1: this year are we did have a fair amount of power electronics our a this with a single way for reactor at eight inch but i would say we're not seeing mostly production today's on sixteen and so i would say where it a bit of a feeding waiting and for that market to develop said i look for word i would say i'm our business is largely more predominantly going to be ah in micro l e d applications where that disruptive or traditional read and like grow ali the on going forward saw out original paleoecology live without a goon a good summary you bill that as well you know into the market conditions which we believe that a eight and four and power that were well positioned little what we've seen it so far this year and wouldn't the evaluation that be sent to a leading are leading foundry
spk_25: that is where mcsherry simmering speeding like planting not feeding him giving up on
spk_1: right right now i get it on and then his probably isn't a fair question but he know any any color on on who with the head the you know them are are are my thoughts fight on gallium nitride work on or that you know the micro on silicon thought about it on silk image which program looks like it's on advancing more quickly i would say gosh that were actually it looks like at this time it looks like both are proceeding on the oh we're seeing activity in the traditional oh the traditional approach wow red green blue pixels ah for a luxury be tied markets it looks like that
spk_7: that's starting to happen in were seeing
spk_0: him yeah a r v applications with thought with non traditional can again on silicon take solution so right now that i would say it's fairly hard to handicap
spk_1: where we are by i would say
spk_22: it it looks like the both moving forward
spk_0: he eat in or out my last question the so and eat it like it's more application specific in terms of which have some keys gonna be used

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