Ultra Clean Holdings Inc (UCTT) 2023 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Ultra Clean Technology Q4 and full year 2023 earnings call and webcast conference. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, February for 31, 2024. I would now like to turn the conference over to Rhonda BNFL. Please go ahead.

女士們、先生們，美好的一天，歡迎來到超清潔技術第四季和 2023 年全年財報電話會議和網路廣播會議。此時，所有線路都處於只聽模式。演講結束後，我們將進行問答環節。如果在通話期間您隨時需要立即協助，請按下接線員的零星鍵。此電話錄音於 2 月星期三進行，錄音時間為 2024 年 3 月 31 日。我現在想將會議交給 Rhonda BNFL。請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Sheldon, our Chief Executive Officer, and Sheri Savage, Chief Financial Officer. Jim will begin with some prepared remarks about the business, and Sheri will follow with the financial review. Then we'll open up the call for questions.

謝謝你，接線生。大家下午好，感謝您加入我們。今天與我在一起的有我們的執行長 Jim Sheldon 和財務長 Sheri Savage。吉姆將首先對業務進行一些準備好的評論，謝裡將隨後進行財務審查。然後我們將開放提問。

Today's call contains forward-looking statements that are subject to risks and uncertainties. For more information, please refer to the Risk Factors section in our SEC filings. All forward looking statements are based on estimates, projections and assumptions as of today, and we assume no obligation to update them after this call. And discussion of our financial results will be presented on a non-GAAP basis. The reconciliation of GAAP to non-GAAP can be found in today's press release posted on our website.

今天的電話會議包含前瞻性陳述，這些陳述存在風險和不確定性。欲了解更多信息，請參閱我們向 SEC 提交的文件中的風險因素部分。所有前瞻性陳述均基於截至今天的估計、預測和假設，我們不承擔在本次電話會議後更新這些陳述的義務。我們的財務業績討論將在非公認會計準則的基礎上進行。GAAP 與非 GAAP 的調整可以在我們網站上今天發布的新聞稿中找到。

And with that, I'd like to turn the call over to Jim Jim.

說到這裡，我想把電話轉給吉姆·吉姆。

Thank you, Rhonda, and welcome, everyone, to our Q4 2023 earnings call and webcast. I'll start by providing a brief overview of our Q4 results that Sheri will expand on in her commentary and also provide our thoughts on the current state of the industry and our plans to capitalize on the significant opportunity we see over the long term.

謝謝朗達，歡迎大家參加我們的 2023 年第四季財報電話會議和網路廣播。首先，我將簡要概述我們第四季度的業績，Sheri 將在她的評論中對此進行詳細闡述，並提供我們對行業當前狀況的想法以及我們利用長期看到的重大機會的計劃。

Fourth quarter, total revenue grew modestly as expected from the prior quarter. Visibility remains less than ideal as our products customers continued to shift mix and location to help expedite the normalization of inventory, our global footprint and ability to quickly flex to meet demand was an advantage in the quarter. Our services business stay relatively flat as customers maintain current output levels for 2023, our revenue and earnings largely reflected the overall decline across the broader semiconductor market. As we've done in previous downturns, we viewed last year as an opportunity to invest in several strategic actions that best position us to capitalize on the sizable growth opportunities that lie ahead, optimizing after operations and increasing capacity to support the next ramp or top priorities in 2023 in collaboration with our customers to align with their technology roadmaps. We enhanced our global footprint and capability with new state-of-the-art manufacturing facilities with added capacity, optimized workflow increased automation and higher levels of vertical integration. For example, in Chandler, Arizona, we've moved six buildings into a single new facility. And in the Czech Republic, we relocated three buildings into one these two new cutting edge scalable phase will meet the increasing demands of our growing customer base. We also expanded our footprint in Malaysia to support future demand from the region. This lower cost manufacturing center of excellence will have a positive impact on our overall profitability as volumes increase over time.

第四季總營收較上一季小幅成長，符合預期。由於我們的產品客戶繼續改變組合和地點以幫助加快庫存正常化，可見性仍然不太理想，我們的全球足跡和快速靈活以滿足需求的能力是本季度的優勢。由於客戶維持 2023 年當前的產出水平，我們的服務業務保持相對平穩，我們的收入和收益在很大程度上反映了更廣泛的半導體市場的整體下滑。正如我們在之前的經濟低迷時期所做的那樣，我們將去年視為投資多項戰略行動的機會，這些戰略行動使我們能夠充分利用未來的巨大增長機會，優化運營後並提高支持下一個增長或頂峰的能力與我們的客戶合作，確定 2023 年的優先事項，以符合他們的技術路線圖。我們透過新的最先進的製造設施增強了我們的全球足跡和能力，增加了產能，優化了工作流程，提高了自動化程度和更高水平的垂直整合。例如，在亞利桑那州錢德勒，我們將六棟建築搬入一個新設施。在捷克共和國，我們將三棟建築搬遷為一棟，這兩個新的尖端可擴展階段將滿足我們不斷增長的客戶群日益增長的需求。我們也擴大了在馬來西亞的業務範圍，以支持該地區的未來需求。隨著產量隨著時間的推移而增加，這個低成本的卓越製造中心將對我們的整體獲利能力產生積極影響。

On the services side, we consolidated and modernize two sites into one in Phoenix and our new facility in Ireland and scaling production to meet the demands of our customers in Northwest Europe. With these value add enhancements now in place and more ongoing we have a global presence, capacity and efficiency to support $4 billion in revenue and grow profitably on a much larger scale heading into the next ramp and beyond.

在服務方面，我們將鳳凰城的兩個工廠和愛爾蘭的新工廠合併並現代化，並擴大生產規模，以滿足西北歐客戶的需求。隨著這些增值增強措施現已到位並正在進行中，我們擁有全球影響力、能力和效率，可以支持 40 億美元的收入，並在進入下一個階段及以後實現更大規模的盈利增長。

And last, but not least, we expanded our suite of offerings with the acquisition of HIS. Innovations Group, further expanding our reach into the global SunFab market. Uct now offers integrated vacuum systems and ancillary equipment solution that integrates and sub fab ecosystem in a way that is value add and scalable as the demand for next-generation devices increases with the deployment of new technologies like 5G, AI and the Internet of Things, the need for advanced fabs capable of producing higher density, faster and more power-efficient chips will increase UCT's broad capabilities in design and manufacturing will enable us to continue to develop solutions that simplify installation, support and maintenance of these process tools critical to chip production with 2024 and in early days, current demand remains tepid as reflected in our Q1 guidance. However, our internal marketing research is aligned with broader industry sentiment and our customers and overall market dynamics are improving and should help drive a stronger exit to the year.

最後但並非最不重要的一點是，我們透過收購 HIS 擴大了我們的產品組合。Innovations Group，進一步擴大我們在全球 SunFab 市場的影響力。Uct 現在提供整合真空系統和輔助設備解決方案，隨著 5G、人工智慧和物聯網等新技術的部署，對下一代設備的需求增加，以增值和可擴展的方式整合子晶圓廠生態系統，對能夠生產更高密度、更快和更節能晶片的先進晶圓廠的需求將增強UCT 在設計和製造方面的廣泛能力，將使我們能夠繼續開發解決方案，以簡化對晶片生產至關重要的這些製程工具的安裝、支援和維護正如我們第一季指引所反映的，到 2024 年及早期，當前需求仍然不溫不火。然而，我們的內部行銷研究與更廣泛的行業情緒一致，我們的客戶和整體市場動態正在改善，應該有助於推動今年更強勁的退出。

Looking to 2025 and beyond. The business case, supporting extensive investment for WFE is very compelling with global semiconductor sales widely predicted to reach a trillion by the end of the decade, requiring nearly twice the current capital spend. And we are continuously innovating and introducing new solutions, expanding our market presence and building momentum in that crucial technology turning points, especially in the litho space, where we are making great strides with a key customer. Some of these module types are valued at roughly five times higher than typical module, and we are ramping our deliveries over the next several quarters. Our solutions are increasingly gaining attention and will be a significant growth driver in the months and years. Ahead as many of the market inflections We are collaborating with our customers are still in the early stages of adoption.

展望 2025 年及以後。支持 WFE 廣泛投資的商業案例非常引人注目，因為人們普遍預計，到本世紀末，全球半導體銷售額將達到一兆美元，所需的資本支出幾乎是當前資本支出的兩倍。我們不斷創新和推出新的解決方案，擴大我們的市場份額，並在關鍵的技術轉折點建立動力，特別是在光刻領域，我們正在與關鍵客戶一起取得長足進步。其中一些模組類型的價值大約是典型模組的五倍，我們將在接下來的幾季增加交付量。我們的解決方案越來越受到關注，並將成為未來數月和數年的重要成長動力。我們與客戶合作的許多市場變化仍處於早期採用階段。

In summary, UCT has emerged as a more valuable, stronger Company with greater profitability after each downturn.

總而言之，每次經濟低迷之後，UCT 都已成為更有價值、更強大、更有利可圖的公司。

During the past five quarters, we have been busy setting the stage to further expand our leadership position with a broader suite of offerings as a manufacturing partner of choice for our growing customer base well into the future.

在過去的五個季度中，我們一直忙於為進一步擴大我們的領導地位奠定基礎，提供更廣泛的產品組合，作為我們未來不斷增長的客戶群的首選製造合作夥伴。

And with that, I'll turn the call over to Sherry. Sherri?

說完，我會把電話轉給雪莉。雪莉？

Thanks, Jim, and good afternoon, everyone, and thanks for joining us in today's discussion, I'll be referring to non-GAAP numbers only. As Jim noted, demand for our products improved moderately in the fourth quarter with a dynamic environment as customers adjusted their mix and location to help rebalance inventory. Our service business remained steady as customers maintained utilization levels. Total revenue for the fourth quarter came in at $444.8 million compared to $435 million in the prior quarter. Revenue from products increased to $389.7 million compared to $380.9 million last quarter. Services revenue was $55.1 million compared to $54.1 million in Q3. For the full year. Total revenue was $1.7 billion compared to $2.4 billion in 2022, reflective of the broader industry downturns. Total gross margin for the fourth quarter increased to 16.7% from 15.5% last quarter. Product gross margin was 14.6% compared to 13.8% in the prior quarter. And services was 31.7% compared to 27.4% in Q3. Margins can be influenced by fluctuations in volume, mix and manufacturing region as well as material and transportation costs. So there will be variances quarter to quarter.

謝謝吉姆，大家下午好，謝謝您加入我們今天的討論，我將只提及非公認會計原則數字。正如吉姆所指出的那樣，隨著客戶調整其產品組合和地點以幫助重新平衡庫存，第四季度對我們產品的需求在動態環境中略有改善。由於客戶維持利用率水平，我們的服務業務保持穩定。第四季總營收為 4.448 億美元，上一季為 4.35 億美元。產品收入從上季的 3.809 億美元增至 3.897 億美元。服務收入為 5,510 萬美元，而第三季為 5,410 萬美元。全年。總收入為 17 億美元，而 2022 年為 24 億美元，反映了更廣泛的行業低迷。第四季總毛利率從上季的 15.5% 增至 16.7%。產品毛利率為 14.6%，上一季為 13.8%。服務業佔 31.7%，而第三季為 27.4%。利潤率可能受到數量、結構、製造區域以及材料和運輸成本波動的影響。所以每季都會有差異。

Total gross margin for 2023 was 16.6% compared to 20.2% in the prior year.

2023 年的總毛利率為 16.6%，而前一年為 20.2%。

Operating expense for the quarter was $51.3 million compared to $48.6 million in Q3. As a percentage of revenue, operating expense was 11.5% compared to 11.2% in the prior quarter. For the year, operating expense as a percentage of revenue was 11.6% compared to 9.3% in the prior year. Total operating margin for the quarter improved to 5.2% compared to 4.4% in the third quarter. Margin from our products division was 4.6% compared to 4.5% in the prior quarter. And services margin was 9.5% compared to 3.7% in the prior quarter. The improvement in services margin was due to increased site and overhead efficiencies. For the full year, operating margin was 4.9% compared to 11% in the prior year due to lower overall revenue levels and decreased efficiencies typical during an industry trough based on 44.9 million shares outstanding and earnings per share for the quarter were $0.19 on net income of $8.5 million compared to $0.04 on net income of $2 million in the prior quarter. Current quarter earnings per share were above guidance from better factory efficiencies and discretionary spending management and favorable other income and expense due to foreign exchange benefits and government grants. For the full year, earnings per share were $0.56 on net income of $25.2 million compared to $3.98 on net income of $181.9 million in 2022. Our tax rate for the quarter was 16.4% compared to 37.3% last quarter when our tax rate was chewed up for year to date expense. For the full year, our tax rate was 18.9%, and we expect it to stay in the high 10s for 2024.

該季度的營運費用為 5,130 萬美元，而第三季的營運費用為 4,860 萬美元。營運費用佔收入的百分比為 11.5%，而上一季為 11.2%。今年營運費用佔收入的比例為 11.6%，而上年度為 9.3%。本季的總營業利潤率從第三季的 4.4% 提高至 5.2%。我們產品部門的利潤率為 4.6%，而上一季為 4.5%。服務利潤率為 9.5%，上一季為 3.7%。服務利潤率的提高歸因於站點和管理效率的提高。全年營業利益率為4.9%，而上年為11%，原因是整體營收水準下降以及產業低谷期間典型的效率下降（基於4,490 萬股流通股），本季每股收益為0.19 美元（淨利潤為0.19 美元）淨利為 850 萬美元，而上一季淨利為 200 萬美元，淨利為 0.04 美元。本季每股收益高於指引，原因是工廠效率提高、可自由支配支出管理以及外匯優惠和政府補助帶來的其他有利收入和支出。全年每股收益為 0.56 美元，淨利潤為 2,520 萬美元，而 2022 年淨利為 1.819 億美元，每股收益為 3.98 美元。我們本季的稅率為 16.4%，而上季的稅率為 37.3%，當時我們的稅率因年初至今的費用而受到影響。全年稅率為 18.9%，我們預計 2024 年稅率將維持在 10% 以上。

For Turning to the balance sheet, our cash and cash equivalents were $307 million compared to $342 million in Q3. We used cash on hand to acquire HIS. and make strategic capital investments to support our growth plan into the next ramp.

轉向資產負債表，我們的現金和現金等價物為 3.07 億美元，而第三季為 3.42 億美元。我們用手頭現金收購了HIS。並進行策略資本投資，以支持我們進入下一個階段的成長計畫。

Cash flow from operations was $35.3 million compared to $36.2 million last quarter. For the full year, cash flow from operations was $135.9 million compared to $47.2 million in the prior year. During the quarter, we repurchased 239,000 shares at a total cost of $5.7 million, bringing total repurchase shares in 2023 to 1,009,000 shares at an aggregate cost of $29.4 million, leaving $108 million remaining on our three-year repurchase program. We are pleased with the execution of our plan to optimize our capital deployment strategies throughout 2023, despite a challenging environment, generating nearly $136 million in cash flow from operations enabled us to invest for future growth, pay down $39 million in debt and execute on our share repurchase plan and complete the strategic acquisition of ATS Innovations Group Turning to our guidance, we project total revenue for the first quarter of 2024 between $430 million and $480 million. We expect EPS in the range of $0.03 to $0.23, reflecting higher expenses usually seen in the first quarter of every year.

營運現金流為 3,530 萬美元，上季為 3,620 萬美元。全年營運現金流為 1.359 億美元，上一年為 4,720 萬美元。本季度，我們以總成本 570 萬美元回購了 239,000 股股票，使 2023 年回購股票總數達到 1,009,000 股，總成本為 2,940 萬美元，三年期回購計畫還剩 1.08 億美元。儘管環境充滿挑戰，但我們對2023 年優化資本部署策略的計畫的執行感到很高興，營運產生了近1.36 億美元的現金流，使我們能夠投資於未來的成長、償還3,900 萬美元的債務並執行我們的計劃。股票回購計劃並完成對 ATS Innovations Group 的策略性收購 根據我們的指引，我們預計 2024 年第一季的總收入將在 4.3 億美元至 4.8 億美元之間。我們預計每股收益在 0.03 美元至 0.23 美元之間，反映了每年第一季通常會出現的較高費用。

And with that, I'd like to turn the call over to the operator for questions.

因此，我想將電話轉給接線員詢問問題。

Thank you.

謝謝。

Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone, you will hear a prompt that their hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift the handset before pressing end.

女士們、先生們，我們現在開始問答環節。如果您有疑問，請在按鍵式電話上按星號，然後按數字 1，您將聽到他們已舉手的提示。如果您希望拒絕投票過程，請按星號，然後按數字 2。如果您使用免持電話，請在按結束鍵之前拿起聽筒。

Your first question comes from the line of Krish Sankar from Cowen. Your line is now open.

你的第一個問題來自 Cowen 的 Krish Sankar。您的線路現已開通。

Yes, thanks for taking my question, Jim, a question for you. I think in a couple of quarters ago, you said revenue levels are going to be bouncing around this range and looks like that is coming true. I'm just kind of curious, you know, Milton semicap companies have spoken about a second half inflection. You said more like exiting calendar '24 GaN bases and actually I want to make sure that I'm going to say that you think there's more inventory drawdown from your customers before you see a benefit for all three?

是的，謝謝你提出我的問題，吉姆，有個問題想問你。我認為在幾個季度前，您曾說過收入水平將在這個範圍內反彈，看起來這正在成為現實。我只是有點好奇，你知道，米爾頓半導體公司已經談到了下半年的轉折點。您說的更像是退出日曆'24 GaN 基地，實際上我想確保我要說的是，您認為在您看到這三個基地都受益之前，您的客戶會減少更多的庫存？

Yes, Chris, thanks for the question. And yes, I think there's several factors going on and we do expect some improvement in the second half on the on the chip side, but very incremental, I think the other factors where we're hoping for things to improve, you know, not just the exit, but starting in the second half is that the inventory our situation will be better as well as the demand is now coming from areas where our footprint is stronger. So 2023, there was a lot of demand in the Icap, which is mostly 200 millimeter, which is not an area of heavy of contract manufacturing. There's also a very strong comps little which were although we have a growing footprint, there is still in the single digits of our total total revenue as well as some other factors in our home kind of affecting where the investments are coming. So we're still seeing in this last quarter, we're still seeing the instability. I would say some areas that we thought we would be shipping from some of those orders got pushed around and areas where we didn't expect, you know, the orders, we got kind of drop in orders. So it's still a bit unstable. But the end result is the end result is, you know, we're incrementally seeing a little bit better results. So we're hopeful that we'll start to see it earlier in the second half as these factors come into play. But I think that the safest conservative assumption is that the chip demand won't really start taking off until near the end of the year.

是的，克里斯，謝謝你的提問。是的，我認為有幾個因素正在發生，我們確實預計下半年晶片方面會有所改善，但這是非常漸進的，我認為我們希望事情有所改善的其他因素，你知道，不是只是退出，但從下半年開始，我們的庫存情況會更好，而且需求現在來自我們足跡更強大的地區。所以到2023年，Icap的需求量很大，大部分是200毫米，這不是一個大量合約製造的領域。還有一個非常強大的競爭點，儘管我們的足跡不斷擴大，但我們的總收入仍然只有個位數，以及我們家鄉的一些其他因素會影響投資的方向。因此，我們在最後一個季度仍然看到不穩定的情況。我想說的是，我們認為我們將從其中一些訂單中發貨的一些地區被推到了其他地區，而我們沒有預料到的地區，你知道，訂單，我們的訂單有所下降。所以還是有點不穩定。但最終的結果是，你知道，我們逐漸看到更好的結果。因此，我們希望隨著這些因素的發揮，我們將在下半年早些時候開始看到這一點。但我認為最安全的保守假設是晶片需求要到年底才會真正開始起飛。

Got it. Got it. And I think that's very helpful and makes a lot of sense when quickly on the EV side, you kind of mentioned some my understanding is you guys are more of the high pressure part of the muni versus no pressure. I'm just kind of curious, is there a possibility of you gained share in the low pressure side? Are you just mostly focused on high-pressure in a minute?

知道了。知道了。我認為這非常有幫助，並且在電動車方面很快就變得很有意義，你提到了一些我的理解是你們更多的是市政的高壓部分而不是無壓力。我只是有點好奇，你們有可能在低壓側獲得份額嗎？您是否主要關心一分鐘的高壓？

Yes, I think, um, yes, we are in the high pressure side and especially the light of the new products that are rolling out. And that's where we're starting to see the volumes ramp. We are in different smaller pockets I don't know if it's low pressure or not, but definitely on the cyber side, that laser laser areas and some of the older tools. So we have a kind of scattered footprint throughout the ASML tools that but the majority of what we're working on are the are the new tools, and that's where we're seeing the large modules start to start to roll out and increasing in numbers.

是的，我認為，嗯，是的，我們處於高壓側，尤其是在即將推出的新產品的影響下。這就是我們開始看到銷量增加的地方。我們處於不同的較小區域，我不知道是否低壓，但絕對是在網路方面，即雷射雷射區域和一些舊工具。因此，我們在 ASML 工具中擁有一種分散的足跡，但我們正在開發的大部分都是新工具，這就是我們看到大型模組開始推出並增加數量的地方。

Got it.

知道了。

And then just second quick housekeeping question for sharing and then you said OpEx would be all the expenses be higher in the March quarter, I think about gross margin in March relative to December?

然後是第二個快速分享的內務管理問題，然後你說營運支出將是三月份季度的所有費用都會更高，我想一下三月份相對於十二月份的毛利率？

Yes, I would say it's going to be fairly flat in other states, really depending upon where we ship out as things kind of shifted quite a bit during Q4. And I think, again, it just depends on if anything, shifts during Q1, but we still see it being in the same zone as we saw in Q4 for gross margin.

是的，我想說其他州的情況會相當平穩，這實際上取決於我們在哪裡發貨，因為第四季度情況發生了很大的變化。我再次認為，這僅取決於第一季是否發生變化，但我們仍然認為它與第四季度的毛利率處於同一區域。

Thanks, Sheri. Thanks Jim.

謝謝，雪莉。謝謝吉姆。

Thank you.

謝謝。

Thank you, Chris.

謝謝你，克里斯。

Your next question comes from the line of Christian Schwab from Craig-Hallum Capital Growth.

您的下一個問題來自 Craig-Hallum Capital Growth 的 Christian Schwab。

Your line is now open, it goes AGM on it was revenue being down 27% year over year when WFE was obviously down much less than that year over year. So I understand the I caps commentary, but are mature node commentary. But you know, as this inventory cleans up, is there an opportunity for a material latter step up in the second half?

你們的生產線現已開通，年度股東大會上，營收年減了 27%，而 WFE 的年減幅度明顯遠小於去年同期。所以我理解的是I caps解說，但都是成熟的節點解說。但你知道，隨著庫存的清理，下半年材料是否有機會上漲？

I guess it wasn't clear to me in the before question, or do you just expect still a modest recovery from where you are in Q1?

我想我在之前的問題中並不清楚，或者您只是期望從第一季的情況來看仍會適度復甦？

Yes, I think a ladder step you know, could happen, but I think our assumption is that it will be more of a gradual incremental improvement. We do not have a lot of visibility and what our customers have in inventory and even their demand is shifting around as we saw in the last quarter. And we know we know the inventory levels are high. You know, we don't know how much they still have about mean that we made in our competitors' names. So it's very difficult for us to say the inventory issue that we've had will be completely gone and there'll be a step function up. Obviously, it's improving.

是的，我認為你知道，階梯式的進步是可能發生的，但我認為我們的假設是，這將是一個漸進的漸進式改進。我們沒有太多的可見性，我們的客戶庫存有多少，甚至他們的需求也在發生變化，正如我們在上個季度看到的那樣。我們知道庫存水準很高。你知道，我們不知道他們還擁有多少我們以競爭對手的名義製造的產品。因此，我們很難說我們所遇到的庫存問題將完全消失，並且會出現階躍功能。顯然，情況正在改善。

But so we're just assuming kind of some incremental moves up. And at some point, the court will come off the bottom end and demand will more better reflect the WFE numbers. As you mentioned, the inventory was a headwind to deferred revenue was a headwind. The strong ASML. and high caps and MDP with metal deposition was really strong for Applied. So those are areas that are not very data-intensive, Tom. And so those were all headwinds we had in 2023 and as well as dep and etch and affecting dep and etch quite a bit as well. So a lot of those headwinds start to abate, but it's very difficult to predict the timing, but I think we're just assuming incremental improvement as we go along. And at some point, you know, there will be a step up as things clear out but it's very hard for us to predict that.

但我們只是假設一些增量的上升。到了某個時候，法院將會走出低谷，需求將更能反映 WFE 的數據。正如您所提到的，庫存是一個逆風，而遞延收入則是一個逆風。實力雄厚的ASML。高帽子和採用金屬沉積的 MDP 對應用材料公司來說確實很強大。湯姆，這些領域的數據並不是非常密集。因此，這些都是我們在 2023 年遇到的逆風，以及 dep 和 etch，對 dep 和 etch 也有很大影響。因此，許多不利因素開始減弱，但很難預測時間，但我認為我們只是假設隨著我們的進展會逐步改善。在某些時候，你知道，隨著事情變得清晰，將會有一個進步，但我們很難預測這一點。

Okay. And then on the back side of this, you know, when the inventory correction is over and, you know, 25 and beyond, would you expect for you guys to own outgrow WFE like you did in the previous up-cycle? Or do you think that previous up-cycle grow above WFE or in some cases double digits was just an inventory build?

好的。然後在這方面，你知道，當庫存修正結束，你知道，25 歲及以上，你會期望你們擁有的增長超過 WFE，就像你們在上一個上升週期中所做的那樣？或者您認為之前的上升週期增長高於 WFE 或在某些情況下兩位數只是庫存增加？

No.

不。

I mean, we've outgrown on the upturn multiple times the in an upturn, the inventory disappears pretty quickly as well. And so it felt the inventory buildup only happens when the market differently, it just shuts down like it did in November of 2022. That's where the inventory piled up from everything in the float. So yes, we have a lot of factors. You know, we've been picking up share at multiple customers. We're doing we're doing very well, especially with these new modules or lift though that are starting to ship in larger quantities of Malaysia factory, we're putting some new wins into that factory. So we're still we're still growing share, and I expect we'll do what we've done the last since I've been here the last, there are three upturns that we'll outgrow again.

我的意思是，我們的成長已經超出了經濟好轉的數倍，而在經濟好轉時，庫存也很快就消失了。因此，它認為只有當市場發生變化時，庫存才會增加，就像 2022 年 11 月那樣，它就會關閉。這就是浮動中的所有庫存堆積的地方。所以是的，我們有很多因素。你知道，我們已經在多個客戶中獲得了份額。我們做得很好，特別是這些新模組或電梯，儘管它們開始在馬來西亞工廠大量發貨，但我們正在為該工廠帶來一些新的勝利。因此，我們的份額仍然在增長，我希望我們會做自從我上次來這裡以來我們上次所做的事情，我們將再次超越三個好轉。

Fantastic. No other questions? Thank you.

極好的。沒有其他問題嗎？謝謝。

Once again, as a reminder, if you wish to ask a question, please press bar followed by the number one. There are no further questions at this time. I will now hand the call over to Jim shall hammer Please continue.

再次提醒您，如果您想提問，請按欄，然後按數字 1。目前沒有其他問題。我現在將把電話轉交給吉姆，請繼續。

Thank you all for attending this conference call and we look forward to speaking to you again in April.

感謝大家參加本次電話會議，我們期待在四月再次與您交談。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。