Ultra Clean Holdings Inc (UCTT) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the UCT Q3 2024 earnings and webcast conference call at this time. (Operator Instructions) This call is being recorded on Monday, October 28, 2024.

下午好，女士們、先生們，歡迎此時參加 UCT 2024 年第三季財報和網路廣播電話會議。（操作員說明）此通話錄音時間為 2024 年 10 月 28 日星期一。

I would like to turn the conference over to Rhonda Bennetto, Investor Relations. Please go ahead.

我想將會議交給投資者關係部門的朗達·貝內托 (Rhonda Bennetto)。請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Scholhamer, 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執行長 Jim Scholhamer；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. Discussion of our financial results will be presented on a non-GAAP basis. A 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. Hello, everyone, and thank you for joining our call this afternoon.

謝謝你，朗達。大家好，感謝您參加今天下午的電話會議。

I will start with a high-level summary of our financial and operating results for the third quarter and share our thoughts on the broader industry trends we are seeing. After that, I'll turn the call over to Sheri for a more detailed financial review before opening up the call for questions.

我將首先對第三季的財務和營運業績進行高度總結，並分享我們對我們所看到的更廣泛行業趨勢的看法。之後，我會將電話轉給 Sheri，以進行更詳細的財務審查，然後再開始提問。

During the third quarter, an increase in equipment spend by our customers supporting the expansion of AI infrastructure build out and demand from the domestic China market resulted in revenue coming in at the high end of our guided range. Using the midpoint of our Q4 guidance and analyst consensus for our peer group, UCT revenue is on track to be up over 20% this year over last year, surpassing that of our largest customers.

第三季度，我們的客戶支援人工智慧基礎設施建設擴張的設備支出增加以及中國國內市場的需求導致收入達到我們指導範圍的高端。根據我們第四季度指導的中點和分析師對同儕群體的共識，UCT 今年的營收預計將比去年增長 20% 以上，超過我們最大的客戶。

In addition to the uptick in equipment sales for advanced packaging applications that we saw over the past several quarters, third-quarter demand broadened to include other AI-related processes such as chemical mechanical planarization or CMP, specifically for the large AI chips. Because UCT has such a diverse and flexible menu of solutions, customers are partnering with us to accelerate their leading-edge technology road maps.

除了我們在過去幾季看到的先進封裝應用設備銷售的成長之外，第三季的需求也擴大到包括化學機械平坦化或 CMP 等其他人工智慧相關工藝，特別是針對大型人工智慧晶片。由於 UCT 擁有如此多樣化和靈活的解決方案，客戶正在與我們合作，以加速他們的領先技術路線圖。

Turning to China, revenue from our Shanghai manufacturing facility supporting local Chinese OEMs remains elevated. Recent conversations with local customers and our expectation that regional fabs will continue to expand and new ones will come online supported by local government investment leads us to believe that this will -- higher level of spend will continue into 2025.

轉向中國，我們上海製造工廠為中國本土原始設備製造商提供支援的收入仍保持成長。最近與當地客戶的對話以及我們對區域晶圓廠將繼續擴張以及新晶圓廠將在當地政府投資的支持下上線的預期，使我們相信，更高水準的支出將持續到 2025 年。

We will continue to meet regularly with our local Chinese customers and watch for any change in sentiment or spending patterns that could alter our opinion. Last quarter, I mentioned some of the metrics we are tracking that could point towards a broader industry recovery and they continue to improve.

我們將繼續定期與當地的中國客戶會面，並關注可能改變我們觀點的情緒或消費模式的任何變化。上個季度，我提到了我們正在追蹤的一些指標，這些指標可能預示著更廣泛的行業復甦，而且它們還在繼續改善。

Inventories are mostly realigned. Shipments of high-performance computing chips have increased. Data center spending is very robust. Memory is being actively managed to keep supply and demand balance. And fabs are reporting improved utilization rates.

庫存大部分都經過重新調整。高效能運算晶片的出貨量增加。數據中心支出非常強勁。正在積極管理記憶體以保持供需平衡。晶圓廠報告利用率有所提高。

In fact, the world's largest chip maker recently announced that they will continue to observe extremely healthy AI-related demand through the second half of 2024, leading to increased capacity utilization rates for leading-edge process technologies with signs of acceleration into next year and beyond, unquote.

事實上，全球最大的晶片製造商最近宣布，他們將在 2024 年下半年繼續觀察極其健康的人工智慧相關需求，從而導致領先製程技術的產能利用率提高，並有加速到明年及以後的跡象，取消引號。

UCT builds a diversified line of products for the industry that extends our reach far behind gas and fluid delivery solutions. If you could walk through a fab, you would see thousands of our parts, components, and modules. UCT indirectly touches nearly every semiconductor chip that goes into every smartphone, smart car, data center, and device that uses artificial intelligence today.

UCT 為業界打造了多元化的產品線，將我們的業務範圍遠遠擴展到氣體和流體輸送解決方案。如果您可以走進一家晶圓廠，您會看到數以千計的零件、組件和模組。UCT 間接觸及當今每部智慧型手機、智慧型汽車、資料中心和使用人工智慧的裝置中所使用的幾乎所有半導體晶片。

We have a road map built to last and leverage our competitive advantage by offering a high-value, differentiated solutions across all end markets. Our state-of-the-art manufacturing technology, especially in Malaysia, where revenue has increased nearly 150% since this time last year, is helping our customers reach greater economies of scale, especially at the leading edge.

我們制定了持久的路線圖，並透過在所有終端市場提供高價值、差異化的解決方案來利用我們的競爭優勢。我們最先進的製造技術，特別是在馬來西亞，自去年同期以來收入成長了近 150%，正在幫助我們的客戶實現更大的規模經濟，尤其是在領先領域。

Semiconductor cycles are two pronged. They are technology driven and capacity driven. Strong investment in the technology phase of the cycle has been healthy this year and one of the reasons UCT has been able to meaningfully grow revenue. The debut of AI-enabled smartphones and laptops is here and a broad replacement cycle shouldn't be far behind.

半導體週期有兩個面向。它們是技術驅動和能力驅動的。今年，對週期技術階段的大力投資一直保持健康狀態，這也是 UCT 能夠大幅增加收入的原因之一。支援人工智慧的智慧型手機和筆記型電腦即將首次亮相，廣泛的更換週期應該不會太遠。

We remain very optimistic that we are in the early innings of an industry-wide recovery. And as capacity investments begin to increase, we expect momentum to accelerate. UCT has withstood many cycles of varying length, and it outperformed during every upturn.

我們仍然非常樂觀，認為我們正處於全行業復甦的初期。隨著產能投資開始增加，我們預計動能將會加速。UCT經歷了許多不同長度的周期，並且在每次經濟好轉時都表現出色。

In summary, our long-term outlook for the semi industry remains very positive. We maintain our view that the global semiconductor market will exceed $1 trillion by 2030, driven by ballooning demands for integrated circuits and AI, digital economies, and electrical vehicles.

總而言之，我們對半導體產業的長期前景仍然非常樂觀。我們仍然認為，在積體電路和人工智慧、數位經濟和電動車需求不斷增長的推動下，到 2030 年，全球半導體市場將超過 1 兆美元。

To achieve this, investment in WFE will need to be in $150 billion range. And we are ready with the products, services, capacity, and efficiency to meet the major increases of the demand we see coming.

為了實現這一目標，WFE 的投資需要在 1500 億美元左右。我們已準備好產品、服務、產能和效率，以滿足我們預期未來需求的大幅成長。

And with that, I'll turn the call over to Sheri for our financial review. Sheri?

接下來，我會將電話轉給 Sheri 進行我們的財務審查。雪莉？

Thanks, Jim, and good afternoon, everyone. Thanks for joining us. In today's discussion, I will be referring to non-GAAP numbers only.

謝謝吉姆，大家下午好。感謝您加入我們。在今天的討論中，我將僅提及非 GAAP 數字。

As Jim mentioned, total revenue was a quarter of a quarter due to increased demand from our customers relating to AI infrastructure build outs and continued strength from our domestic China market.

正如吉姆所提到的，由於我們的客戶對人工智慧基礎設施建設的需求增加以及我們國內市場的持續強勁，總收入為四分之一。

Total revenue for the third quarter came in at $540.4 million compared to $516.1 million in the prior quarter. Revenue from products increased to $479 million from $452.7 million last quarter. Services revenue was $61.4 million compared to $63.4 million in Q2. Total gross margin for the third quarter was 17.8% compared to 17.7% last quarter.

第三季總營收為 5.404 億美元，上一季為 5.161 億美元。產品收入從上季的 4.527 億美元增至 4.79 億美元。服務收入為 6,140 萬美元，而第二季為 6,340 萬美元。第三季總毛利率為 17.8%，上一季為 17.7%。

Products gross margin was 16.1% compared to 15.6% and services was 30.5% compared to 32.7% in Q2. Margins can be influenced by fluctuation of volume, mix and manufacturing region, as well as material and transportation costs. So there will be variances quarter to quarter.

產品毛利率為 16.1%，而第二季為 15.6%；服務毛利率為 30.5%，而第二季為 32.7%。利潤率可能受到數量、結構和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。

Operating expense for the quarter was $56.5 million compared with $55.8 million in Q2. As a percentage of revenue, operating expense decreased to 10.5% from 10.8% in Q2. Total operating margin for the quarter increased to 7.3% and 6.9% in the second quarter.

本季營運費用為 5,650 萬美元，而第二季為 5,580 萬美元。營運費用佔收入的百分比從第二季的 10.8% 下降至 10.5%。本季總營業利益率增至 7.3%，第二季增至 6.9%。

Margin from our products division was 7% compared to 6.2% and services margin was 10.1% compared to 11.8% in the prior quarter. The overall margin improvements were largely driven by improved product operating efficiency and effective management of operating expenses across both business units on a higher revenue.

我們的產品部門利潤率為 7%，而上一季為 6.2%；服務利潤率為 10.1%，而上一季為 11.8%。整體利潤率的提高主要是由於產品營運效率的提高以及兩個業務部門在收入增加的情況下對營運費用的有效管理所推動的。

Our tax rate increased from 24.7% last quarter to 27.1% this quarter representing a year-to-date effective tax rate of 24.3%. Our mix of earnings has been weighted to higher tax jurisdictions like China and the Czech Republic. And as a result, we now expect the tax rate for 2024 to stay in the mid-20%s.

我們的稅率從上季的 24.7% 上升至本季的 27.1%，即年初至今的有效稅率為 24.3%。我們的收入組合已加權到中國和捷克共和國等稅收較高的司法管轄區。因此，我們現在預計 2024 年的稅率將維持在 20% 左右。

Based on 45.5 million shares outstanding, earnings per share for the quarter were $0.35 on net income of $15.9 million compared to $0.32 on net income of $14.4 million in the prior quarter due to higher revenue. During the quarter, we experienced some foreign exchange headwinds primarily related to the Malaysian ringgit that negatively impacted EPS by $0.06 per share.

基於 4,550 萬股已發行股票，本季每股收益為 0.35 美元，淨利潤為 1,590 萬美元，而上一季由於收入增加，每股收益為 0.32 美元，淨利潤為 1,440 萬美元。本季度，我們經歷了一些主要與馬來西亞林吉特相關的外匯不利因素，對每股盈餘產生了 0.06 美元的負面影響。

Turning to the balance sheet, our cash and cash equivalents were $318.2 million compared to $319.5 million in Q2. Cash flow from operations was $14.9 million compared to $23.2 million last quarter, primarily doing -- due to timing of cash collections and vendor payments.

轉向資產負債表，我們的現金和現金等價物為 3.182 億美元，而第二季為 3.195 億美元。營運現金流為 1,490 萬美元，而上季為 2,320 萬美元，主要是由於現金收款和供應商付款的時間安排。

For the fourth quarter, we project total revenue between $535 million and $585 million. We expect EPS in the range of $0.34 to $0.54.

我們預計第四季的總營收將在 5.35 億美元至 5.85 億美元之間。我們預計每股收益在 0.34 美元至 0.54 美元之間。

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。

(Operator Instructions) Charles Shi, Needham.

（操作員說明）Charles Shi，Needham。

Good afternoon, Jim and Sherry. The first question is about China. What's the percentage of the revenue coming from China in the third quarter? But maybe it's a related question I'll ask altogether. When I look at the PowerPoint you posted on the website that your revenue from Lam is up. The revenue from [AMAT] is actually probably down a little bit. So is China the main contributor to the non-Lam, non-AMAT revenue growth in the third quarter? That's the first question. Thank you.

下午好，吉姆和雪莉。第一個問題是關於中國的。第三季來自中國的營收佔比是多少？但也許這是我會問的一個相關問題。當我看到你在網站上發布的 PowerPoint 時，你從 Lam 獲得的收入增加了。[AMAT] 的收入實際上可能略有下降。那麼，中國是第三季非 Lam、非 AMAT 營收成長的主要貢獻者嗎？這是第一個問題。謝謝。

Yeah. Hi, Charles. So, yeah, so I think, we did about $50 million-something, $52 million -- $55 million this quarter from China direct, right? So I'm talking about like what we sell directly to our Chinese OEM. And so as you look at percentages from our different [flight] Lam. You can't read too much into that. It's just simply, you know, we're seeing some more strength from Chinese OEMs. We're seeing also some strength from Lam and ASM and ASML and others. So those percentages are going to move around a little bit. But I think, I think, when you look at that way, I think, you're seeing the fact that we're continuing to see some significant strength from our direct sales to Chinese equipment makers.

是的。嗨，查爾斯。所以，是的，所以我想，我們這個季度直接從中國做了大約 5000 萬美元，5200 萬美元——5500 萬美元，對嗎？所以我說的是我們直接銷售給中國原始設備製造商的產品。因此，當您查看我們不同的[航班] Lam 的百分比時。你不能對此解讀太多。很簡單，我們看到了中國原始設備製造商的更多實力。我們也看到 Lam、ASM 和 ASML 等公司的一些實力。因此，這些百分比將會略有變動。但我認為，當你這樣看時，你會看到這樣一個事實：我們繼續看到我們對中國設備製造商的直接銷售的一些重要優勢。

Got it. $55 million from China direct. I just want to clarify.

知道了。 5500萬美元直接來自中國。我只是想澄清一下。

Yeah. And I mean just to give you like a reference, Charles. So in the past, we did like $10 million a quarter, maybe $20 million if we had a great quarter. So this has been continued strength. And I just actually met with the CEOs in China. And they continue to think that that's going to stay strong through the year and through next year as well.

是的。我的意思只是給你一個參考，查爾斯。所以在過去，我們確實希望每季 1000 萬美元，如果我們季度表現出色的話，可能會達到 2000 萬美元。所以這是持續的力量。我剛剛會見了中國的執行長。他們仍然認為，這一勢頭將在今年和明年保持強勁。

Got it. Obviously, the access for you guys to the Chinese semi cap is pretty unique in the industry. Maybe I want to ask you -- maybe this is a technology question; maybe it's a product question. You talked about the AI infrastructure build out. We all know that you have -- your revenue is tied. I mean, part of your revenue is tied to Lams electroplating, which has very well. They said it's more than double this year. Strength may continue next year.

知道了。顯然，你們進入中國半決賽的機會在業界是非常獨特的。也許我想問你——也許這是一個技術問題；也許這是一個技術問題。也許這是一個產品問題。您談到了人工智慧基礎設施的建設。我們都知道你的收入是掛鉤的。我的意思是，你們的部分收入與林氏電鍍公司有關，該公司的業績非常好。他們說今年增加了一倍以上。明年強勢可能會持續。

But looks like this quarter, you're talking about some CMP-related strength. Can you talk a little bit more about that? First off, because we tend to associate your product more with the development and edge. But what is the CMP exposure? That's number one.

但看起來這個季度，您正在談論一些與 CMP 相關的優勢。能多談談嗎？首先，因為我們傾向於將您的產品更多地與開發和優勢聯繫起來。但什麼是 CMP 曝光呢？這是第一名。

But number two is why there's a CMP ramp related to AI infrastructure build out? Is it that just go in general with events notes or there's something specific about CMP for the, as you said, the large-size AI chip manufacturing. And that's the second question. Thank you.

但第二個問題是為什麼 CMP 會出現與 AI 基礎建設相關的成長？只是一般性地記錄事件，還是有一些關於 CMP 的具體內容，如您所說，用於大尺寸 AI 晶片製造。這是第二個問題。謝謝。

Sure. Yeah, I mean, as you just mentioned, I'll reiterate, the wet bench electrochemistry strength that we've been seeing for the interconnect businesses continue to remain really strong out of our Czech Republic factory. But what we started to see this quarter and one of the reasons for our outperformance as well is we started to see CMP business increase.

當然。是的，我的意思是，正如您剛才提到的，我會重申，我們在捷克共和國工廠看到的互連業務的濕台電化學實力繼續保持強勁。但本季我們開始看到 CMP 業務有所成長，這也是我們表現出色的原因之一。

Now we have a really good position. We have a significantly high footprint in CMP. And CMP is very body on and off. But what we're seeing is chemical mechanical planarization is something that people do to get the yields up in the chip that they're making. So this is becoming where we're starting to see more investment in that space.

現在我們的處境非常好。我們在 CMP 領域佔有相當大的份額。CMP 時斷時續。但我們看到的是，人們採用化學機械平坦化來提高他們製造的晶片的產量。因此，我們開始看到該領域有更多投資。

And since we also, like I said, we have a very diversified platform that we cover across many different types of equipment and technology. So we have a really solid position there. And then. we're starting to see companies invest in CMP to take their yield up, especially in the AI area.

正如我所說，我們擁有一個非常多元化的平台，涵蓋許多不同類型的設備和技術。所以我們在那裡擁有非常穩固的地位。進而。我們開始看到公司投資 CMP 以提高收益率，尤其是在人工智慧領域。

Edward Yang, Oppenheimer.

楊德昌，奧本海默。

Hi, Jim. Congrats on a great quarter. I wanted to dig a bit deeper into your demand outlook. And you mentioned growing faster than your customers. And I wanted to understand, is this a function of customers outsourcing more and relying on partners like UCT, your win rates, or are you exposed to right technology platforms that is, you know, your customers have such broad based end market exposure? Are you overweight or underweight? Any particular areas that would help you meaningfully grow faster?

嗨，吉姆。恭喜您度過了一個出色的季度。我想更深入地了解您的需求前景。您提到成長速度快於客戶。我想了解，這是否是客戶更多外包並依賴UCT 等合作夥伴的功能，你的獲勝率，還是你接觸到了正確的技術平台，也就是說，你知道，你的客戶擁有如此廣泛的終端市場曝光度？您體重超重還是體重不足？有哪些特定領域可以幫助您更快實現有意義的成長？

Yes. Hi, Edward. So yeah, we definitely -- as you start to see the market start to turn back and the industry starts to bring up, and we've seen this over the years, that we typically outgrow the industry in the up years. So what happens is you start to see, our customers begin to outsource a bit more. So we have some of that.

是的。嗨，愛德華。所以，是的，我們肯定——當你開始看到市場開始回升、產業開始復甦時，我們多年來已經看到了這一點，我們通常會在成長的年份裡超越這個產業。所以你開始看到，我們的客戶開始外包更多。所以我們有一些。

We also have gains in lithography that we've been exploiting. And also our new platform in Malaysia, where customers want to take advantage of that low-cost region that we've been growing. So we're -- yes, we're starting to see our outperform, you know, in these areas, from those basic strength. So I think those are like the main thing.

我們在光刻技術方面也取得了一些成果，我們一直在利用。還有我們在馬來西亞的新平台，客戶希望利用我們一直在發展的低成本地區。所以我們——是的，我們開始看到我們的表現優於其他國家，你知道，在這些領域，從這些基本實力來看。所以我認為這些是主要的事情。

But if you were to look back through our history over the last 10 years, you will see that when the industry starts moving up a bit, we do experience a higher level of outsourcing and we do experience a higher level of market share gain.

但如果你回顧我們過去10年的歷史，你會發現，當產業開始有所提升時，我們確實經歷了更高水準的外包，並且我們確實經歷了更高水準的市佔率增益。

And I just wanted to piggyback on Charles's question on China. You mentioned your quarterly revenue there was $55 billion and that is up triple digits year over year. But it is down about $4.5 billion from the prior quarter. Is there any seasonality there or is that -- did you see any moderation or is it just lumpiness within China that you're seeing it from a [revenue standpoint]?

我只是想藉用查爾斯關於中國的問題。您提到您的季度營收為 550 億美元，年增了三位數。但較上一季減少了約 45 億美元。是否存在季節性因素，或者——你是否看到了任何放緩，或者只是中國國內的波動性？[收入觀點]？

I mean, yeah, I can't go into details, but we had -- we have two main customers there and one is dealing with some internal issues and quality and not our issue. Another one is growing faster. So we had -- it is lumpiness but it's nothing to like be concerned about the long-term prospect.

我的意思是，是的，我不能透露細節，但我們在那裡有兩個主要客戶，其中一個正在處理一些內部問題和質量，而不是我們的問題。另一種則是成長得更快。所以我們有——它是不穩定的，但沒有什麼值得擔心長期的前景。

Christian Schwab, Craig Hallum Capital Group.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本集團。

Hey, guys. Thanks for taking my question. I mean, last quarter, you guys talked about seeing broader market improvement in the second half of '24 versus the first half of '25, which has obviously been correct. We also talked about WFE being really strong on a year-over-year basis and '25. And I didn't really hear an update on that. We understand what your largest customer talked about seeing growth. But I think we talked about percentages on the call last time. Do you have any update for us there?

嘿，夥計們。感謝您提出我的問題。我的意思是，上個季度，你們談到看到 24 年下半年與 25 年上半年相比，市場出現了更廣泛的改善，這顯然是正確的。我們也談到了 WFE 的同比表現非常強勁，並且 '25.我並沒有真正聽到這方面的最新消息。我們了解您最大的客戶所說的看到成長。但我想我們上次的電話會議討論了百分比。您有什麼最新消息要告訴我們嗎？

Yeah, I think, we've been looking at -- we continue to update that, Christian. So we continue to look at like 14% -- 10% to 14%. And it all depends on -- obviously, on how the year ends in '24, right? So the baseline changes a little bit. But we are still very positive that the WFE is going to increase. Whether it's up 10% or 12% or 14%, very difficult to say.

是的，我想，我們一直在關注——我們會繼續更新這一點，克里斯蒂安。所以我們繼續關注 14%——10% 到 14%。顯然，這一切都取決於 24 年如何結束，對吧？所以基線發生了一點變化。但我們仍然非常樂觀地認為 WFE 將會增加。是上漲10%、12%還是14%，都很難說。

We will do better than that in the next year. But I think we need to see how '24 ends before we could come out with like a really good estimate for '25. But we definitely believe '25 will be up. And we believe we will be up more than that.

明年我們會做得更好。但我認為我們需要先看看 24 年後如何結束，然後才能對 25 做出非常好的估計。但我們堅信 '25 將會到來。我們相信我們會取得更大的進步。

Kris Sankar, TD Cowen.

克里斯·桑卡，TD·考恩。

Hi. This is Robert Mertens on for Kris. Thanks for taking my questions. Maybe just real quick to jump back on the domestic China strength that you're witnessing. Have you segmented out that before between if it's more foundry or memory based or broad based? And then, also, what sort of visibility do you have at customers within China? I know you are expecting it to still remain strong in the December quarter, but just what sort of visibility and confidence you have heading into next year would be helpful.

你好。這是克里斯的羅伯特·默滕斯。感謝您回答我的問題。也許很快就會回到你所目睹的中國國內實力。您之前是否已將其劃分為基於代工或基於內存還是基於廣泛？另外，您在中國客戶中的知名度如何？我知道您預計它在 12 月季度仍將保持強勁，但您對明年的可見度和信心會有所幫助。

Yeah. So hi, Robert. So we have not segmented it out to the chip type. Mostly what we provide for them is deposition and etch modules, especially in the gas panel area, which was our, obviously, 45% of our business. And as I mentioned before, I just made the trip there. I just had dinner with the CEOs of those companies. And they continued -- they're going to continue to gain market share. That's a clear thing. They are definitely over investing right now trying to get every piece of equipment they can. Not every piece of the equipment is actually going out the door to their customers. But we, basically -- from everything I can see and every discussion I've had with these customers is that 2025 is continue to be at the same level that we've been experiencing in 2024.

是的。嗨，羅伯特。所以我們還沒有把它按照晶片類型來細分。我們為他們提供的主要是沉積和蝕刻模組，特別是在氣體面板領域，這顯然占我們業務的 45%。正如我之前提到的，我剛剛去了那裡。我剛剛和這些公司的執行長共進晚餐。他們繼續說——他們將繼續獲得市場份額。這是很清楚的事。他們現在肯定過度投資，試圖獲得他們能得到的每件設備。並非所有設備都真正交付給客戶。但基本上，從我所看到的一切以及我與這些客戶進行的每一次討論來看，2025 年將繼續保持與 2024 年相同的水平。

So that together with a broader market recovery at, at some point, together with the AI strength that we're seeing in different parts of our diversified products, we're very comfortable and confident that we're going to continue -- as we guided up in Q4, we're going to continue to see things get better and better.

因此，加上在某個時候更廣泛的市場復甦，再加上我們在多元化產品的不同部分看到的人工智慧實力，我們非常放心並有信心我們將繼續下去——因為我們在第四季度在的指導下，我們將繼續看到事情變得越來越好。

Great. Thank you. That's helpful. And then just one more if I may. In terms of the product margins, they have been doing well in the September quarter, is that more to -- a mix or does just the sales volume have a bigger play into the puts and takes of margins on a quarterly basis?

偉大的。謝謝。這很有幫助。如果可以的話，然後再來一張。就產品利潤率而言，他們在九月季度表現良好，這更多的是——混合還是只是銷量對季度利潤的賣出和賣出有更大的影響？

They both do. It just depends. Sometimes, we'll have a mix where there's higher-margin shipments happening, specifically, if we could ship more out of certain locations for certain product types, but volume definitely plays a huge factor for us in general just because with the volume coming up, it's covering more of our fixed cost. We've added capacity over the last couple of years. So it definitely covers some of those expenses associated with that. So that's probably the more major factor out of it.

他們都這樣做。這只是取決於。有時，我們會進行混合，出現更高利潤的發貨，特別是，如果我們可以從某些地點發貨更多的某些產品類型，但數量對我們來說絕對是一個重要因素，因為隨著數量的增加，它涵蓋了我們更多的固定成本。過去幾年我們增加了產能。所以它肯定涵蓋了一些與此相關的費用。所以這可能是更主要的因素。

Got it. Okay. Well, congrats, and thank you for letting me take the time and ask questions.

知道了。好的。好吧，恭喜你，謝謝你讓我花時間提問。

There are no further questions at this time. I will now turn the call back to Jim Scholhamer for closing remarks. Please continue.

目前沒有其他問題。現在，我將把電話轉回給吉姆·斯科哈默，讓其致閉幕詞。請繼續。

Thank you, everyone. Thank you for joining our call today. I think you could pick up we're really excited about the go forward, and I hope you can join us next quarter and looking forward to it. Thank you.

謝謝大家。感謝您今天加入我們的電話會議。我想您可能會發現，我們對這一進展感到非常興奮，我希望您下個季度能夠加入我們並對此充滿期待。謝謝。

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。