ACM Research Inc (ACMR) 2017 Q4 法說會逐字稿

Welcome to the ACM Research Fourth Quarter and Fiscal Year 2017 Earnings conference call.

歡迎參加 ACM Research 2017 年第四季和財年財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder that we are recording today's call, if you have any objections you may disconnect at this time.

提醒一下，我們正在對今天的通話進行錄音，如果您有任何異議，您可以此時掛斷電話。

Now I will turn the call over to Mr. Ralph Fong, Director of The Blueshirt Group Asia, Mr. Fong please go ahead.

現在我將電話轉給The Blueshirt Group 亞洲區董事Ralph Fong 先生，請Fong 先生接續。

Thank you operator and good morning everyone. Thank you for joining us on us today's conference call to discuss the company's financial results for the fourth quarter and fiscal year 2017 and provide guidance for fiscal year 2018. We release fourth quarter and fiscal year 2017 results earlier today and they are available on the company's Web Site as well as from Newswire Services.

謝謝接線員，大家早安。感謝您參加今天的電話會議，討論公司2017 年第四季度和財年的財務業績，並為2018 財年提供指導。我們今天早些時候發布了2017 年第四季度和財年的業績，這些業績可以在公司的網站上找到。網站以及新聞專線服務。

On the call with me today are Dr. David Wang, President of Chief Executive Officer and Ms. Lisa Feng, Chief Accounting Officer. Before we continue, please note that today's discussion may contain forward looking statements made under the safe harbor provisions of US Private Security Litigation Reform Act of 1995. Forward looking statements involve inherent risks and uncertainties. As such the company's results may be materially different from the views expressed today.

今天與我通話的有執行長總裁王大衛博士和首席會計官馮麗莎女士。在我們繼續之前，請注意，今天的討論可能包含根據 1995 年美國私人安全訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，該公司的業績可能與今天表達的觀點有重大差異。

Further information regarding these and other risks and uncertainties is included in the Company's prospectus and other documents filed with the U.S. Securities and Exchange commission. ACM research does not assume any obligations to update any forward looking statement except as required under applicable law. Please note that unless otherwise stated, all figures mentioned during the conference call in U.S. dollars. With that let me now turn the call over to our CEO David Wang, David.

有關這些以及其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的招股說明書和其他文件中。除適用法律要求外，ACM Research 不承擔任何前瞻性聲明的任何義務。請注意，除非另有說明，電話會議中提到的所有數字均以美元為單位。現在讓我將電話轉給我們的執行長 David Wang，David。

Thank you Ralph. And thank everyone for joining us on the call today. I'm very pleased with our execution and our result we achieved. We beat our revenue guidance in the quarter and capped off a successful year of growth for ACM Research. Our business is being driven by three factors.

謝謝拉爾夫。感謝大家今天加入我們的電話會議。我對我們的執行力和所取得的成果感到非常滿意。我們在本季超越了營收預期，為 ACM Research 成功的一年成長畫上了圓滿的句號。我們的業務由三個因素驅動。

The first one is that digital technology and applications continue to grow exponentially, and semiconductors are the foundation of this strong growth. Semiconductor shipments are expected to reach 1 trillion units this year, driven by their continued migration of computing, networking, storage to the cloud and the rising trends of the internet of things, autonomous vehicle and artificial intelligence.

第一個是數位技術和應用持續呈指數級增長，而半導體是這種強勁增長的基礎。受運算、網路、儲存向雲端的持續遷移以及物聯網、自動駕駛汽車和人工智慧的上升趨勢的推動，今年半導體出貨量預計將達到1兆顆。

The second factor in China opportunity, China is both the largest and the fast growing market of semiconductors. Between 2005, 2015 China's semiconductor consumption grow at a CAGR of 14.3% while global consumption increased only 4%. By 2015 China was consuming 58.5% of the world's semiconductors.

中國機會的第二個因素是，中國是最大且成長最快的半導體市場。 2005年至2015年間，中國半導體消費複合年增長率為14.3%，而全球消費僅成長4%。到了2015年，中國消費全球58.5%的半導體。

In addition China shared worldwide semiconductor manufacturing capacity expanded from 7.3% in 2006 to 12.7% in 2015. According to the trade organization SEMI, 42% of new wafer fabs over next four year will be in China. The third factor is increasing need for advanced chip manufacturing equipment.

此外，中國在全球半導體製造產能的比例從2006年的7.3%擴大到2015年的12.7%。根據貿易組織SEMI的數據，未來四年新增晶圓廠的42%將位於中國。第三個因素是對先進晶片製造設備的需求不斷增加。

Producing a semiconductor chip at smaller nodes requires a more complex process flow and more expensive tools to perform increasingly difficult process steps. Fab manufacturing spending is expected to grow at 8% in 2018, which is a large number when you consider that spending on fabs is approaching $50 billion a year. Most important to us is that wafer cleaning is an increasingly critical step in the manufacturing process.

在較小的節點上生產半導體晶片需要更複雜的製程和更昂貴的工具來執行越來越困難的製程步驟。 2018 年晶圓廠製造支出預計將成長 8%，考慮到每年晶圓廠支出接近 500 億美元，這是一個很大的數字。對我們來說最重要的是，晶圓清洗是製造過程中越來越關鍵的步驟。

The global market for single wafer cleaning equipment totaled $2.7 billion in 2017 , and is expected to increase to an estimated $3.7 billion in 2020. Why is cleaning become more important? As feature sizes continue to shrink, (Inaudible) the risk of a particulate contamination cauing yield loss increases dramatically. Effective and safe wafer cleaning reduces that risk of contamination. Cleaning is thus being used in an increasing number of steps of the fabrication process.

2017年全球單晶圓清洗設備市場總額為27億美元，預計2020年將增加至約37億美元。為什麼清洗變得更重要？隨著特徵尺寸持續縮小，（聽不清楚）顆粒污染導致產量損失的風險急劇增加。有效且安全的晶圓清洗可降低污染風險。因此，在製造流程的越來越多的步驟中使用清潔。

Within this market context, our competitive position is strong because of our differentiated technology and product offerings. Customers are flocking to our innovative, proprietary SAPS and TEBO technologies. SAPS stands for Space Alternated Phase Shift. TEBO stand for Timely Energized Bubble Oscillation. . SAPS technology provides uniform megasonic energy distribution across the entire wafer,giving the best particle removal efficiency. TEBO controls how energy is applied to the bubbles in the megasonic cleaning process. By better controlling energy input into the bubble or gas temperature, TEBO reduces the chance that cavitation will damage the 3D structure on the patterned wafer. With better control comes greater cleaning efficiency, which improves yield. We have been shipping SAPS tools for quite some time, and now are expanding the number of customers evaluating TEBO technology.

在這個市場背景下，由於我們提供差異化的技術和產品，我們的競爭地位非常強大。客戶紛紛湧向我們創新的專有 SAPS 和 TEBO 技術。 SAPS 代表空間交替相移。 TEBO 代表及時通電氣泡振盪。 。 SAPS 技術在整個晶圓上提供均勻的兆聲波能量分佈，從而提供最佳的顆粒去除效率。 TEBO 控制兆頻超音波清洗過程中如何將能量施加到氣泡上。透過更好地控制氣泡的能量輸入或氣體溫度，TEBO 減少了空化損壞圖案化晶圓上 3D 結構的機會。更好的控制可以提高清潔效率，從而提高產量。我們交付 SAPS 工具已經有一段時間了，現在正在擴大評估 TEBO 技術的客戶數量。

With that as the backdrop, let me now review some of the high level results from the fourth quarter. Lisa will then dig into the details. Total revenue in Q4 grow 20% year over year to $17.2 million, well above our guidance range of $11 to $12 million.

以此為背景，現在讓我回顧一下第四季度的一些高水準結果。然後麗莎將深入研究細節。第四季總營收年增 20% 至 1,720 萬美元，遠高於我們 1,100 至 1,200 萬美元的指導範圍。

We are enthused about that this substantial revenue upside, but I want to make a note of caution.

我們對這種巨大的收入成長感到興奮，但我想提醒大家注意。

When we gave you the Q4 guidance, we noted that we had one more tool in acceptance that might be recognized in the 4th quarter. If accepted, that would result in revenue higher than the guidance range.

當我們向您提供第四季度指導時，我們注意到我們還有一個可以接受的工具，可能會在第四季度得到認可。如果接受，這將導致收入高於指導範圍。

And that's exactly what happened during Q4. The tool was accepted and revenue recognized in the quarter. So therefore revenue beat shouldn't be too surprising. The caution is this. You can see that our revenue can swing substantially based on the acceptance or delay of just a handful of tools-even just one if it is more high prices. Because of this natural lumpiness in our business, we encourage you to look at our results on an annual basis. Quarterly results could fluctuate in ways that often will not reflect the underling economics of our business.

這正是第四季發生的情況。該工具已被接受並在本季度確認了收入。因此，收入成長應該不會太令人驚訝。注意事項是這樣的。您可以看到，我們的收入可能會因少數工具的接受度或延遲而大幅波動——即使只有一種工具，如果價格更高的話。由於我們業務的這種自然波動性，我們鼓勵您每年查看我們的表現。季度業績可能會波動，而這些波動通常無法反映我們業務的基本經濟狀況。

Gross margin was 53.4% in Q4, up 50 basis points when compared to the same quarter last year. On the bottom line, we reported net income of $3.4 million, almost tripling the $1.2 million net from last year.

第四季毛利率為53.4%，較去年同期上升50個基點。總而言之，我們報告的淨利潤為 340 萬美元，幾乎是去年 120 萬美元淨收入的三倍。

Next let's turn our attention to operating highlights. During the quarter, we shipped our first commercial copper plateing tool for mass production using our proprietary copper plating technologies. This went to a leading advanced packaging manufacturer in China.

接下來我們來關註一下經營亮點。在本季度，我們推出了首款商用鍍銅工具，使用我們專有的鍍銅技術進行大規模生產。這筆資金流向了中國一家領先的先進封裝製造商。

It is a big milestone for us. The initial shipment resulted from three year of proprietary R&D and another one year of working closely with the customer. Our proprietary copper plating technology not only provides high quality copper bumpers, but also reduces total cost of ownership.

這對我們來說是一個重要的里程碑。最初的發貨是經過三年的專有研發以及一年與客戶密切合作的結果。我們專有的鍍銅技術不僅提供高品質的銅保險槓，而且還降低了總擁有成本。

That is a key value proposition of this product. Also, we filed two TEBO-related patent applications during the quarter. This further strengthens our core TEBO technology portfolio with better particle removal efficiency with zero damage for 3D pattern wafer.

這是該產品的關鍵價值主張。此外，我們在本季提交了兩項與 TEBO 相關的專利申請。這進一步增強了我們的核心 TEBO 技術組合，具有更好的顆粒去除效率和 3D 圖案晶圓零損壞。

As of today we had been granted more than 180 patterns around the world. Naturally this including the major semi manufacturing regions of the US, China, Japan, Korea, Singapore and Taiwan. R&D spending is our life blood. We will continue to invest heavily in R&D in order to strengthen our competitive position and provide most efficient, cleaning solutions for flat wafers, and damage-free cleaning solutions for advanced 3D patterned wafers.

截至今天，我們已在全球範圍內獲得了 180 多種圖案。當然，這包括美國、中國、日本、韓國、新加坡和台灣的主要半導體製造地區。研發支出是我們的生命線。我們將繼續大力投資研發，以增強我們的競爭地位，並為平面晶圓提供最高效的清潔解決方案，以及為先進的 3D 圖案化晶圓提供無損傷的清潔解決方案。

As we look back upon the full year 2017, we had some key achievements. We added two new customers YMTC, a (Inaudible) Chinese 3D flash memory manufacturer and ICRD, a consortium in China that is similar to Semtech in the US and IMEC in Europe.(Inaudible). Also our first commercial TEBO tool was qualified and put into the mass production line for our customer [HMLC]. We believe the TEBO tool will play an important role for them in reducing defect density and enhancing yields.

回顧2017年全年，我們取得了一些重要成就。我們增加了兩個新客戶 YMTC，一家（聽不清楚）中國 3D 快閃記憶體製造商和 ICRD，一個中國財團，類似美國的 Semtech 和歐洲的 IMEC。（聽不清楚）。我們的第一個商用 TEBO 工具也已通過資格認證並投入到我們的客戶 [HMLC] 的批量生產線中。我們相信 TEBO 工具將在降低缺陷密度和提高良率方面發揮重要作用。

Finally, as you all know we completed our IPO in November. The efficient access to capital will help us to find the high rate of growth and we expanded in the years ahead. We also had some developments at the start of 2018 that I want to discuss. In January we received significant orders for SAPS-based tool from five existing customers. Three customers will purchasing multiple tools.

最後，正如你們所知，我們在 11 月完成了 IPO。有效獲得資本將幫助我們找到高成長率，並在未來幾年擴張。我想在 2018 年初討論一些進展。一月份，我們從五個現有客戶那裡收到了基於 SAPS 的工具的大量訂單。三個客戶將購買多種工具。

These orders represent approximately $38 million in total revenue and also we expect to ship all of the ordered tools by Q3. We anticipate acceptance and revenue recognition in 2018. These orders demonstrate how our SAPS-based tools continue to gain traction in the marketplace.

這些訂單約佔總收入 3800 萬美元，我們預計在第三季之前發貨所有訂購的工具。我們預計 2018 年將獲得接受並確認收入。這些訂單顯示了我們基於 SAPS 的工具如何繼續在市場上獲得關注。

Finally, we also announced that we are expanding our manufacture facility in Shanghai. We will increase it by nearly 138% or 50,000 square feet. This will include additional cleaning room space for product assemble and final testing. The expansion, which will cost $1.5 million, will create additional production capacity that can support an revenue run rate of more than $250 million. Expansion should be completed in the second quarter.

最後，我們也宣布將擴建上海的製造工廠。我們將增加近 138% 或 50,000 平方英尺。這將包括用於產品組裝和最終測試的額外無塵室空間。此次擴建將耗資 150 萬美元，將創造額外的產能，支援超過 2.5 億美元的收入運行率。擴建預計將於第二季完成。

We believe expansion China markets makes great sense strategically. It reinforces our decision to put production in close proximity to the multitude of new fabs that will be built in Asia. This will give us increased access to those fabs and enable us to to better serve our customer. For instance, we will be able to deliver tools more quickly and with less transportation cost.

我們相信，擴張中國市場具有重要的戰略意義。它強化了我們將生產地點設在亞洲將要建造的眾多新工廠附近的決定。這將使我們能夠更多地接觸這些工廠，並使我們能夠更好地服務我們的客戶。例如，我們將能夠更快地交付工具並降低運輸成本。

Before I turn the call over to Lisa, I would like to thank the entire ACM team for their hard work, passion and dedication. We exceeded our 2017 financial goals with revenue grow 33%. This year's success was a result of strong execution, differentiated technology and committed engineering and sales organizations. We enter 2018 in a position of strength. We are advancing towards our goal of becoming a global leader in our targeted segment of the semiconductor manufacturing equipment space.

在將電話轉給 Lisa 之前，我要感謝整個 ACM 團隊的辛勤工作、熱情和奉獻精神。我們超額完成了 2017 年的財務目標，營收成長了 33%。今年的成功得益於強大的執行力、差異化的技術以及忠誠的工程和銷售組織。我們以強勢的姿態進入 2018 年。我們正在朝著成為半導體製造設備領域目標領域的全球領導者的目標前進。

We are optimistic about our look and look forward to further building upon our success in a quarters and years ahead. With that, I will now turn the call over to Lisa to discuss our Q4 and fiscal year 2017 financial results.

我們對我們的前景感到樂觀，並期待在未來幾個季度和幾年裡進一步鞏固我們的成功。現在，我將把電話轉給麗莎，討論我們第四季和 2017 財年的財務表現。

Thank you, David. And, good day, everyone. First, let me walk you through details of Q4. All figures I cite will refer to either quarter four 2017 or the full year. I will specify which. All comparisons with the same period last year unless I state otherwise. Those are all non-GAAP financial results. Our non-GAAP financial excluding stock based compensation.

謝謝你，大衛。大家好。首先，讓我向您介紹一下 Q4 的詳細資訊。我引用的所有數據均指 2017 年第四季或全年。我會具體說明是哪一個。除非我另有說明，所有數據均與去年同期進行比較。這些都是非公認會計準則財務表現。我們的非公認會計準則財務不包括股票薪資。

Please refer to the price released for our GAAP results. Cost of revenue of $17.2 million increased 20% and it was well above our guidance of [$11.5] million. When we give guidance we had one two that we are sure would be accepted in quarter four but it was and thus very it was higher than guidance. Full year revenue of $36.5 million was up 33.4%. The increase was due to a higher shipment volume of [based too].

請參閱我們公佈的 GAAP 業績價格。收入成本為 1,720 萬美元，成長了 20%，遠高於我們的指導值 [1,150 萬美元]。當我們給出指導時，我們確信我們會在第四季度接受一二，但事實確實如此，因此它比指導要高。全年收入達 3,650 萬美元，成長 33.4%。增加的原因是[基太]的出貨量增加。

Quarter four gross margin of 53.4% was up from 52.9% a year ago. And well above our normal gross margin of 41% and to 45%. The margin strength was due to the sales of copper plating tools which carry a very high gross margin due to PRC governmental subsidies.

第四季毛利率為 53.4%，高於去年同期的 52.9%。並且遠高於我們正常的毛利率 41% 至 45%。利潤率強勁是由於鍍銅工具的銷售由於中國政府補貼而具有非常高的毛利率。

In general gross margin was also varied due to the mix of product and the manufacturing utilization. 2017 gross margin was a 47.2% compared to 48.7% in 2016, basically unchanged. Quarter four operating expense were$5.4 million up from $3.5 million last year. The increase was due higher R&D spending, more spending on customer support and the cost of the preparing for the Company's IPO.

一般來說，由於產品組合和製造利用率的不同，毛利率也有所不同。 2017年毛利率為47.2%，與2016年的48.7%相比，基本持平。第四季營運費用為 540 萬美元，高於去年的 350 萬美元。這一增長是由於研發支出增加、客戶支援支出增加以及公司IPO準備成本增加所致。

Full year operating expense totaled $15 million up from $9.5 million last year. Quarter four operating income was $3.7 million which compared to $4.5 million a year ago. Full year operating income was $2.3 million down from $3.9 million last year. Quarter four net income was $3.3 million up more than 200% when compared to the same quarter last year.

全年營運費用總計 1,500 萬美元，高於去年的 950 萬美元。第四季營業收入為 370 萬美元，而去年同期為 450 萬美元。全年營業收入為 230 萬美元，低於去年的 390 萬美元。第四季淨利為 330 萬美元，與去年同期相比成長超過 200%。

Full year net income was $1.3 million compared to net income of $1.4 million in 2016. Now, let me cover the balance-sheet. As a result of IPO, our financial position strengthened. In quarter four we spent more than $40 million to our [prior degree] meaning of spending 18.4% equity of Shanghai some figuring.

全年淨利潤為 130 萬美元，而 2016 年淨利潤為 140 萬美元。現在，讓我介紹一下資產負債表。由於首次公開募股，我們的財務狀況得到了加強。在第四季度，我們花費了超過 4000 萬美元，以達到我們的[先前程度]的目的，即花費上海 18.4% 的股權。

We completed the IPO for aggregated gross proceeds of $20 million. By the year end our cash position was up approximately $18 million. With that, I will now turn the call back to David to discuss our business envelope for 2018.

我們完成了 IPO，募集資金總額達 2,000 萬美元。到年底，我們的現金部位增加了約 1,800 萬美元。現在，我將把電話轉回給 David，討論我們 2018 年的業務範圍。

Thank you, Lisa. So, let me briefly review our revenue recognition policy which in matters to how you interpret our guidance. As discussed, if we ship a new tool or it goes to a new customer, we recognize revenue on acceptance by the customer. For a repeat order, we recognize revenue upon shipment. Because of this, we have very good visibility. [There are a few tools out in the field undergoing acceptance] so we can estimate [with some precision when the associated revenue will be recognized.

謝謝你，麗莎。因此，讓我簡要回顧一下我們的收入確認政策，這關係到您如何解釋我們的指導。如所討論的，如果我們運送新工具或將其交給新客戶，我們會在客戶接受時確認收入。對於重複訂單，我們在發貨時確認收入。正因為如此，我們有很好的能見度。 [該領域有一些工具正在接受驗收]，因此我們可以[以一定的精度估計相關收入何時得到確認。

Further, [helping] our visibility is the fact that fab construction is typically a multiyear [process]. So once we are designed into a manufacturer process, we can estimate when and how many cleaning tools that customer will need. For 2018, we project revenue of approximately $65 million.

此外，[幫助]我們提高知名度的事實是，晶圓廠建設通常是一個多年的[過程]。因此，一旦我們被設計成製造商流程，我們就可以估計客戶何時需要以及需要​​多少清潔工具。 2018 年，我們預計收入約為 6,500 萬美元。

This guidance reflects strong demands from our existing customer] in China and Korea. All our [customers] in China and Korea are all building new fabs this year and will order cleaning tools in volume. Now, let's open the call for any questions that you may have. Operator, please go ahead.

該指南反映了我們在中國和韓國的現有客戶的強烈需求。我們在中國和韓國的所有[客戶]今年都在建造新工廠，並將批量訂購清潔工具。現在，讓我們開始通話，解答您可能有的任何問題。接線員，請繼續。

(Operator Instructions)

（操作員說明）

First question comes from the line of Suji DeSilva from Ross Capital, please ask your question.

第一個問題來自Ross Capital的Suji DeSilva，請提出您的問題。

The orders you've had this quarter, can you talk about the concentration, help us understand how your various customers are ramping and how the pipeline looks into '18 across multiple customers.

您本季收到的訂單，您能談談集中度嗎？幫助我們了解您的各種客戶的成長情況以及管道如何跨多個客戶進入 18 年。

Okay. You talk about [38 million] announcement?

好的。你談[3800萬]公告？

Yes.

是的。

Okay. Well again, the [38 million] basically come from [use a major] (Inaudible) [water] from the two major customer. And they're both in China, why is the [logical factory] and they have [a fab] building, moving [it too] or probably starting [Q3] timeline, early [Q3]. And also another is a 3D flash [house in China] and [they're moving probably the tool around their May and June] timeline.

好的。再說一次，[3800 萬] 基本上來自兩個主要客戶的[使用主要]（聽不清楚）[水]。他們都在中國，為什麼是[邏輯工廠]，他們有[一個晶圓廠]建設，移動[它也]或者可能開始[第三季度]時間表，早期[第三季度]。另一個是 3D flash [中國的房子]，[他們可能會在 5 月和 6 月的時間線上移動該工具]。

So there's a major volume [order incoming] for this major big order. And there's also -- we see other continuous demand going [on]. There's another [mainly housing] that [building in bungee] that probably also [started moving to us] in [their] Q4 timeline.

因此，這個大訂單的[訂單傳入]量很大。我們也看到其他持續的需求。還有另一個[主要是住房]，[用蹦極建造]，可能也在[他們的]第四季度時間表中[開始搬到我們這裡]。

That's very helpful color there. And maybe you could talk about the TEBO products and what timeframe you think will be for those to ship for revenues. Is it still in the qualification phase or some color there would help.

這是非常有用的顏色。也許您可以談談 TEBO 產品以及您認為這些產品的發貨時間是多少以獲得收入。是否仍處於資格階段或某種顏色會有幫助。

Okay, actually, as I mentioned before, [Q Keeble] has been [a qualify in a quality foundry] in [China] and the continually [expand more process there]. [Then meanwhile still have the technology sent entirely evaluating the four customer's site].

好吧，實際上，正如我之前提到的，[Q Keeble] 已經在[中國]成為[優質鑄造廠的合格者]，並不斷[在那裡擴展更多流程]。 [然後同時還有技術發送來完全評估四個客戶的站點]。

And [I think processes are ongoing and I want to add that is Keeble, it's] a new technology and also it's a very [a new] and innovative technology [so we're in the stage of continual expend it all application with understand nature] and also [a chance at our brand meter]. So we're looking probably the product [is going on a wind year] maybe [beyond].

[我認為流程正在進行中，我想補充一點，Keeble，它]是一項新技術，也是一項非常[新]和創新的技術[所以我們正處於不斷擴展所有應用並了解自然的階段]以及[有機會了解我們的品牌儀表]。因此，我們正在尋找可能[正在經歷風年]的產品，也許[超越]。

That's why we're expecting multiple order [come in]. However, even as I [say that] this year, we [anticipate at least] another customer in [order coming] and [they will hoping coming more], end of year, beginning next year.

這就是為什麼我們期待多個訂單[進來]。然而，即使我今年[這麼說]，我們[預計至少]會有另一位客戶[訂單到來]，並且[他們希望更多]從年底開始，明年開始。

I'm sorry, go ahead.

抱歉，請繼續。

I want to comment more because I have two (Inaudible) [where other two people had continue filling our pattern portfolio]. And that's a part of the [process sure that continue] improving innovation and also we have a new way or new [public enhancement] for [this new technology for the world can identify for additional 2PP pattern] to further enhance our portfolio for the [of that IT].

我想發表更多評論，因為我有兩個（聽不清楚）[其中其他兩個人繼續填寫我們的模式組合]。這是[確保繼續]改進創新的過程的一部分，而且我們有一種新的方式或新的[公共增強][這項新技術可以為世界識別額外的2PP模式]，以進一步增強我們的產品組合[該IT]。

You have the capacity expansion announcements and with [strong yield likely to building inventory], what are the capital needs you expect and balance sheet implications throughout '18 in terms of the aggressive program you have for growth here?

你們宣布了產能擴張，並且[可能會建立庫存的強勁收益]，就你們這裡的積極增長計劃而言，你們預計整個 18 年的資本需求和資產負債表影響是什麼？

Well basically, as I [should probably actually] mention here is [either China here will have very long term] good innovation with a bankers here. So we have so far and more than $15 million bank loan and we'll continue explore that. And [we will have received the deal] so the bank [will loan around 60% of the deal]. Meanwhile, we also have a cash [racing from the IPO not to help us our cash position].

基本上，正如我[可能實際上應該]在這裡提到的那樣，[中國這裡將有很長一段時間]銀行家的良好創新。到目前為止，我們已經獲得了超過 1500 萬美元的銀行貸款，我們將繼續探索這一點。 [我們將收到交易]，因此銀行[將貸款約 60% 的交易]。同時，我們也有現金[IPO 帶來的資金並不能幫助我們改善現金狀況]。

So with either our cash flow projection based on our accounts receivable and also based on our loan and based on the [filled by cash in the hand], we're pretty comfortable this year. [We're in a very good positive cash flow] position to keeping [our renting the sales and also shipment].

因此，無論我們的現金流量預測是基於我們的應收帳款、我們的貸款還是基於[手頭現金]，我們今年都相當滿意。 [我們處於非常好的正現金流]狀態，可以維持[我們租賃銷售和運輸]。

Okay, great. My last question David will be any update on the CFO search?

好的，太好了。我的最後一個問題是大衛，關於財務長搜尋的任何更新嗎？

[We only know are asking actually search firm and apply for also whoever are still be able to ask]. We have [our candidates]. We interview three [CFO already]. Obviously, [continue the process is keep going on for into the process]. And our goal is looking for qualified CFO [who can assist] our company to grow in billion dollar [anything else].

[我們只知道實際上正在詢問搜尋公司併申請，無論是誰仍然可以詢問]。我們有[我們的候選人]。我們已經採訪了三位財務長。顯然，[繼續該過程是繼續進入該過程]。我們的目標是尋找合格的財務長[可以幫助]我們的公司實現數十億美元的成長[任何其他]。

(Operator Instructions)

（操作員說明）

Next question comes from the line of Mark Miller from the Benchmark.

下一個問題來自 Benchmark 的 Mark Miller。

Let me add my congratulations on the quarter. I think you indicted you expect to add one new customer in 2018, is that correct?

讓我對本季表示祝賀。我想您曾表示希望在 2018 年增加一名新客戶，對嗎？

Actually, we're expecting probably two new customers this year. And [to the] new customer base. Yes, we're working right now.

事實上，我們預計今年可能會有兩位新客戶。以及新的客戶群。是的，我們現在正在工作。

Is this [Memory] I assume or [DRAM] or--

我認為這是[內存]還是[DRAM]或——

Yes, actually this two customer we're doing [in both Memory].

是的，實際上我們正在[在兩個記憶體中]做這兩個客戶。

Okay, in terms of the qualifications, can you explain how many qualifications you're currently in?

好的，就資質而言，您能解釋一下您目前擁有多少個資格嗎？

Okay, great. Actually, so far, we have [one tour in the qualification bowl which is our new demo bowl]. And this year, as I mentioned, we're expanding new customer, [we're expecting looking for at least two our side technology maybe] including TEBO as one module attached to that. And also what we're looking for one or two new customer for [copper plating tool]. So Ralph, as you say, three to four new [demo] tool or configures are looking for this year.

好的，太好了。事實上，到目前為止，我們已經[在資格賽中進行了一次巡迴演出，這是我們新的演示碗]。今年，正如我所提到的，我們正在擴大新客戶，[我們期望尋找至少兩種我們的側面技術]包括 TEBO 作為附加到該技術的一個模組。還有我們正在尋找一兩個新客戶[鍍銅工具]。所以拉爾夫，正如你所說，今年將尋找三到四個新的[演示]工具或配置。

Okay, so two -- in addition, two more [copper] customers?

好的，那麼兩個－另外，還有兩個[銅]客戶？

Correct.

正確的。

In terms of R&D spending for next year, that's going to be quite higher, is that correct? Do you have any estimates what that will be for percentage of sales for --

就明年的研發支出而言，這將會相當高，對嗎？您是否估計過這將佔銷售額的百分比——

--(Inaudible) range, and this year, [part] year, I think we'll probably spend roughly 50% for R&D.

--（聽不清楚）範圍，今年，[部分]年，我認為我們可能會花費大約 50% 用於研發。

Okay, 50%. And finally, I'm sorry if I missed this, what was your cash from operations?

好的，50%。最後，如果我錯過了這一點，我很抱歉，您的營運現金是多少？

Okay, you repeat again. What question?

好吧，你再重複一遍。什麼問題？

Your cash from operations, what did you record for the current quarter? Was it -- did you add cash from top, was it positive or did you --

您本季的營運現金記錄是多少？是——你是從高層添加現金的，是積極的還是——

Oh, cash for -- you mean cash from operating activity?

哦，現金——你的意思是來自經營活動的現金？

Cash flow from operations.

經營活動產生的現金流量。

(Inaudible).

（聽不清楚）。

Hey Mark, we're going to get back to you on that question. Do you have any other additional questions?

嘿馬克，我們將就這個問題回覆你。您還有其他問題嗎？

That's it, thank you very much.

就是這樣，非常感謝。

Okay, so (Inaudible). Hello operator?

好的，所以（聽不清楚）。您好，接線生？

May I move onto the next question first?

我可以先進入下一個問題嗎？

Yes.

是的。

Thank you. The next question comes from the line of Christian Schwab from Craig-Hallum Capital Group. Please ask your question.

謝謝。下一個問題來自 Craig-Hallum Capital Group 的 Christian Schwab。請提出你的問題。

Great. Hey, fabulous quarter. Great outlook. Can you help me understand what may be changing in the market place for the extremely strong outlook for 2018? I understand the orders, is there an acceleration of spending that is going on?

偉大的。嘿，美妙的季度。前景很好。您能否幫助我了解 2018 年前景極為強勁，市場可能會發生哪些變化？我了解訂單，支出是否正在加速？

I'm just trying to get the difference between kind of where the street was at and I was at in your extremely strong guidance for 2018. So, I'm trying to understand what may have been -- what is better than previously? Is it -- well I'll let you answer that. What is driving $20 million in incremental revenue above what we all previously looking at?

我只是想弄清楚街道的情況和我在 2018 年極其強有力的指導中所處的情況之間的差異。所以，我試圖了解可能發生了什麼——什麼比以前更好？是嗎——好吧，我會讓你回答這個問題。是什麼推動增量收入超過我們先前預期的 2000 萬美元？

Yes, well very good question and actually looking at companies that (Inaudible) in a free year, 2018 our major 80% revenue covers the one major customer in (Inaudible), which is (Inaudible). Right? And 2015, end of '17, we are expending our customer base, actually by 2016, will increase additional three and then 2017 will be another two.

是的，這是一個很好的問題，實際上看看那些（聽不清楚）在免費年份中的公司，2018 年我們80% 的主要收入覆蓋了（聽不清楚）的一個主要客戶，即（聽不清楚）。正確的？ 2015 年，也就是 17 年底，我們正在擴大我們的客戶群，實際上到 2016 年，將增加另外三個，然後 2017 年將再增加兩個。

So within two year, our qualification and also working with a lot of the customers, so our revenue steam right now, very (Inaudible) available, because we have added two years to (Inaudible) when new customer pay increases and then 2018, we've got a real brave, I should say, joyful return, because see there are customers in -- actually in China, right, HMLC and also OnePC, plus SMIC, they all announced bigger program to spending their manufacturing fast.

因此，在兩年內，我們獲得了資格，並與許多客戶合作，因此我們現在的收入來源非常（聽不清楚）可用，因為我們在新客戶工資增加時增加了兩年（聽不清楚），然後是2018 年，我們我應該說，我們有一個真正勇敢的回報，因為看到有客戶——實際上是在中國，對吧，HMLC 和OnePC，加上中芯國際，他們都宣布了更大的計劃來快速支出他們的製造。

In the meanwhile, SK Hynix, also they're announcing a program as spending their Wuxi Fab from Q4. But -- so we'll have a real, as you say, multiple volume [increases] from the -- our exist customers now. So, that's the real [reflect] of hardworking and good marketing in last two years. So, if we got really good return from that [result] of that we did last two year.

同時，SK海力士也宣布了一項計劃，將從第四季開始投資無錫工廠。但是，正如您所說，我們現有客戶的數量將得到真正的增加。所以，這就是過去兩年努力工作和良好行銷的真實[反映]。所以，如果我們從過去兩年所做的[結果]中得到了很好的回報。

Fabulous, fabulous. With the expansion of the manufacturing capacity that's going on, do you have any idea on the timeframe it will take to have that facility running, approaching full volume?

太棒了，太棒了。隨著製造能力的不斷擴大，您是否知道工廠需要多長時間才能達到滿載運作？

Well, (Inaudible) a customer?

嗯，（聽不清楚）客戶？

No, you're new manufacturing facility in Shanghai, where you're adding additional capacity. I'm just wondering how long in your internal planning to take to fill it.

不，你們是在上海的新製造工廠，正在增加額外的產能。我只是想知道你的內部計劃需要多長時間來填補它。

Sure, yes. And we actually rented to another place about only 20 minutes driving from our current location, that's clearly locating the (Inaudible) Shanghai and that of placing around their 50,000 square feet, right, is other facility rental where so far starting out clearly build up and also in a major gas piping (Inaudible) process.

當然，是的。事實上，我們租到了另一個地方，距離我們目前的位置僅20 分鐘車程，這顯然位於（聽不清楚）上海，並且放置了50,000 平方英尺左右的空間，右邊，是其他設施租賃，到目前為止，已經開始明顯建立和也在主要的天然氣管道（聽不清楚）過程中。

So I'll estimate those our new facility will finish their all decoration or new clean on build up by end of their Q2. So, can do that for their (Inaudible) of Q2 end of Q3. Also, with this new capacity we're building, we can spend tirelessly manufactured (Inaudible) at the same time.

因此，我估計我們的新設施將在第二季末完成所有裝飾或新的清潔工作。因此，可以在第二季和第三季末（聽不清楚）做到這一點。此外，透過我們正在建造的新產能，我們可以同時不知疲倦地製造（聽不清楚）。

So, that will give us a new capacity of a production and roughly, I should say, almost a [20, 15] per year output can come from this new facility. So, we're very happy with this new location because the distance is very close and the facility can be really efficient with our and will empower manufacture (Inaudible) deliver our tools to the (Inaudible). So, fabulous place.

因此，這將為我們提供新的生產能力，我應該說，這個新設施每年的產量大約可以達到 [20, 15]。因此，我們對這個新地點非常滿意，因為距離非常近，而且該設施對我們來說非常高效，並將使製造商（聽不清楚）將我們的工具交付給（聽不清楚）。所以，很棒的地方。

Great. And then my last question is as it relates to gross margin, as we go throughout 2018 and we -- inner models, should we be assuming that the gross margins for the year should, until otherwise told, kind of stay in kind of the normalized gross margin range of 41 to 45 or do you think we should amount something better than that?

偉大的。然後我的最後一個問題是，它與毛利率有關，當我們回顧 2018 年時，我們——內部模型，是否應該假設今年的毛利率應該保持在正常化的水平，除非另有說明。毛利率範圍為41 至45，還是您認為我們應該採取比這更好的措施？

Sure. Actually we are -- I think that's the number, like you mentioned, 40 to 45% and by this year, next maybe one year before people come in, that in the market will target.

當然。事實上，我認為這個數字，就像你提到的，40% 到 45%，到今年，明年，也許在人們進來之前一年，市場將瞄準這個​​數字。

And actually (Inaudible) we expect the margin will probably grow to 45 to 50, even beyond 50% of gross margin and we believe the technology we offer, with their yield, all their benefit will provide a customer and that will be very fair and also very reachable goal in which we try to (Inaudible), increase our gross margin close to 45 to 50% next page.

實際上（聽不清楚）我們預計利潤率可能會增長到 45 到 50，甚至超過毛利率的 50%，我們相信我們提供的技術及其產量和所有好處將為客戶提供，這將是非常公平和這也是一個非常容易實現的目標，我們嘗試（聽不清楚）將下一頁的毛利率提高到接近45% 至50%。

Okay, fabulous. No other questions. Thank you.

好吧，太棒了。沒有其他問題。謝謝。

Thank you for the questions. Next question comes from the line from Aaron Martin from AIGH Investment Partners. Please ask your question.

謝謝你的提問。下一個問題來自 AIGH Investment Partners 的 Aaron Martin。請提出你的問題。

Hi David and Lisa, congratulations on the great quarter and the progress. Can you talk about customer concentration in terms of how many 10% customers you had in 2017 versus 2016 and the highest concentrated customer?

嗨大衛和麗莎，祝賀這個偉大的季度和進步。您能否談談 2017 年與 2016 年相比，您有多少 10% 的客戶以及集中度最高的客戶？

Okay, great. I achieve it from member, actually -- couple of seconds. Let me get -- pull all the data. Okay, in the 2016, we have one customer occupied 24%, another one is at 25%, another one is 16.3%, another one is 33.7%, are major -- all major customers. By about 2017, we have actually one, two, three, four, five, six, almost seven customers. I can give you brave values out right now for '17. Why is the 18% next to '18, another 14%, another 12%, 12%, [8.349%].

好的，太好了。實際上，我是從會員那裡實現的——幾秒鐘。讓我獲取所有數據。好吧，2016年，我們有一個客戶佔24%，另一個客戶佔25%，另一個客戶佔16.3%，另一個客戶佔33.7%，都是主要客戶——所有主要客戶。到 2017 年左右，我們實際上已經有 1、2、3、4、5、6、幾乎 7 個客戶。我現在就可以給你 17 年勇敢的價值觀。為什麼18%旁邊是'18，另外14%，另外12%，12%，[8.349%]。

So very spread out. I call the distribution, and obviously year 2018, we may be seeing some three or four more concentrated. But anyway, that will balance the portfolio. We pretty much lined this kind of over distribution or in terms of our balance and also give us very stable growth, and that's the trend we're looking for.

所以非常分散。我稱之為分佈，顯然 2018 年，我們可能會看到三四個更加集中。但無論如何，這將平衡投資組合。我們幾乎控制了這種過度分配或平衡，也為我們帶來了非常穩定的成長，這就是我們正在尋找的趨勢。

Obviously you had with such a large quarter here at the end of the year I could imagine why your accounts receivables grew so much. I mean, talk about your payment terms with your customers and how we should look at accounts receivable going forward?

顯然，你們在年底有如此大的一個季度，我可以想像為什麼你們的應收帳款成長如此之多。我的意思是，與您的客戶談談您的付款條件以及我們應該如何看待未來的應收帳款？

Okay.

好的。

So let me talk -- this is Lisa. Our accounts receivable balance at December is around about $26 million and [$20 million from '16. Inevitably, December is past $16 million]. You can see this is about the 63% in increase compared to 32% in '16. The main reason for the increase of our 2017 accounts receivable to $26 million is a big haul. In quarter four alone, we had a shipment about $17 million.

讓我談談——這是麗莎。 12 月我們的應收帳款餘額約為 2,600 萬美元，[16 年為 2,000 萬美元]。不可避免的是，12 月份的銷售額已超過 1,600 萬美元]。您可以看到，與 16 年的 32% 相比，增幅約為 63%。我們2017年的應收帳款增加至2,600萬美元的主因是一筆巨款。光是第四季度，我們的出貨量就達到約 1700 萬美元。

So all the [shipment] happened in quarter four with accounts receivable is one of the reasons that went up. Our A/R turnover rate is about eight to six months.

因此，所有[出貨]都發生在第四季度，應收帳款是上升的原因之一。我們的應收帳款週轉率約為八到六個月。

You're saying your typical A/R receivables, it takes six to eight months to collect them?

您是說典型的應收帳款，需要六到八個月才能收回？

That's correct. Also -- there's also it's not the full amount. Both times we set a contract with our customers on a sales term is pretty much have a percent down payment and probably after shipment we would be able to collect almost more than 70% to 80%.

這是正確的。另外——還有，這還不是全額。兩次我們與客戶簽訂的合約中的銷售條款幾乎都有一定比例的首付款，並且可能在發貨後我們將能夠收取幾乎超過 70% 到 80% 的費用。

And maybe I want to get a--

也許我想要得到一個——

Okay, and is the -- I mean, does it depend if it's something that you're recognizing revenue on shipment versus are accepted if you're recognizing an acceptance which you get paid closer?

好的，我的意思是，這是否取決於您在發貨時確認的收入與是否接受，如果您確認您收到的付款更接近的承兌？

And the one thing here, last 2017, '16, we are working with a new customer, right, also the new tool all send to the customer. So there's a certain tool they need to qualify to get a delay for those payments, right. However, for 2018, all the -- I mean, two major -- I call it [all larger water come in] -- they're all in a volume machine.

有一件事是，去年 2017 年，16 年，我們正在與一位新客戶合作，對吧，新工具也全部發送給客戶。因此，他們需要某種工具來獲得延遲付款的資格，對吧。然而，對於 2018 年，所有的——我的意思是，兩個主要的——我稱之為[所有更大的水進來]——它們都在一台容量機器中。

So their payment term is much better as a big order, and one customer give us 70, 7-0 percent of the payment upon shipment, and another one is almost like 80%?

那麼他們的付款條件對於大訂單來說要好得多，一位客戶在發貨時給了我們 70%、7-0% 的付款，而另一位客戶幾乎是 80% 左右？

80%.

80%。

80% upon shipment. So with the volume [and inner volume that customer give us order], we think we'll be improving our cash receivable -- accounts receivable status.

出貨時 80%。因此，隨著數量[以及客戶給我們訂單的內部數量]，我們認為我們將改善我們的應收現金－應收帳款狀況。

Okay, and the last 20% or 30% is on acceptance? Is that on 30 days after acceptance? How should we think about the last 30% to 60% -- 20% or 30%?

好的，最後 20% 或 30% 取決於接受嗎？是受理後30天嗎？我們該如何看待最後的30%到60%——20%或30%？

Acceptance, a lot of the at acceptance is 10%.

驗收，很多的驗收都是10%。

So typically machine ship, right, they have [an expiration], the process where they call the qualification, those things will take about, typically two months or even on our timeline, so that give you roughly a total of 90% pay including 70% achievement. And during last 10%, that give you probably -- give that customer sometimes six months later. Sometimes [obviously] of one year. That's typically to turn we got so far.

所以通常是機器運輸，對吧，他們有一個[到期]，他們稱之為資格的過程，這些事情通常需要兩個月，甚至在我們的時間表上，這樣你就可以得到大約90% 的薪資，包括70% % 成就。在最後 10% 中，您可能會在六個月後給該客戶。有時[顯然]是一年。這通常是我們到目前為止所得到的結果。

Well, the 10%.

嗯，10%。

Yes, so then we're [forgoing] current customer extremely good. We pay our one month 100%. Obviously--

是的，那麼我們就[放棄]當前非常好的客戶。我們支付一個月 100% 的費用。明顯地 -

Okay.

好的。

(Inaudible)

（聽不清楚）

All right. Thank you so much, and congratulations on the progress.

好的。非常感謝，並祝賀取得的進展。

Yes, thank you.

是的，謝謝。

Thank you.

謝謝。

Thank you for the questions. Next question come from the line of Louis Moser from MetFX Investor. Please ask your question.

謝謝你的提問。下一個問題來自 MetFX Investor 的 Louis Moser。請提出你的問題。

Yes, I apologize. I got on the call late and I just wanted to know if any figures for '18 have been announced other than the sales increase which you announced in the past release? Has anything been discussed on this one (Inaudible)?

是的，我道歉。我很晚才接到電話，我只是想知道除了您在上一次發布中宣布的銷量增長之外，是否還公佈了 18 年的任何數據？對此有任何討論嗎（聽不清楚）？

Yes, in this year we'll probably have two major new ones. One is our big order. Second news release is our expansion manufacturer capacity which is a new facility expansion, and there's another one I think was also putting [our opinion about conference, right]. That's the major three news we learned so far.

是的，今年我們可能會有兩個主要的新產品。一是我們的大訂單。第二則新聞發布是我們的製造商產能擴張，這是一項新的設施擴張，我認為還有另一條新聞也發表了[我們對會議的看法，右]。這是迄今為止我們了解到的三個主要消息。

Okay, and nothing per earnings per share was announced, correct?

好吧，每股收益沒有公佈，對吧？

Earnings per share was in our actually new release. We have the number in the page--

每股收益是在我們實際發布的新版本。我們在頁面上有這個號碼——

I saw that. I saw the news release.

我看到了。我看到了新聞稿。

That's correct.

這是正確的。

I saw the news release, but--

我看到了新聞稿，但是—

You have--

你有 -

I'm just saying on the conference -- yes, I'm just saying on the conference call, were any of the numbers released?

我只是在會議上說——是的，我只是在電話會議上說，有公佈任何數字嗎？

No, no.

不，不。

No? Okay, that's fine. Thank you very much.

不？好吧，沒關係。非常感謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

We are good to have no questions at this time. May I hand the call back to the management? Please continue.

我們很高興此時沒有問題。我可以將電話轉回管理階層嗎？請繼續。

Okay, there was a question come from [Julio], right?

好的，[Julio] 有一個問題，對吧？

Mark.

標記。

Mark, right? I think the 2017, our cash is flow from [our rating and is 871 minus]. Operator?

馬克，對吧？我認為2017年，我們的現金流來自[我們的評級為871減]。操作員？

[Mr. Melo], do you have any follow up questions?

[先生。 Melo]，您還有什麼後續問題嗎？

Operator Instructions)

操作員說明）

There are no more questions at this time. May I hand the call back to the management for closing remarks?

目前沒有更多問題。我可以將電話轉交給管理階層以供結束語嗎？

Okay, thank you, operator, and thank you all that are participating on today's call and for your all support. We appreciate your interest and looking forward to reporting to you again next quarter our progress. Thank you.

好的，謝謝接線員，也謝謝所有參加今天電話會議的人以及你們的支持。我們感謝您的關注，並期待下個季度再次向您報告我們的進展。謝謝。

Ladies and gentlemen, that concludes our conference for today. Thank you for your participations. You may now disconnect the line.

女士們、先生們，今天的會議到此結束。感謝您的參與。現在您可以斷開線路。