Peter Anthony Wright

Asked for details on the HAMR upgrade cycle and installed base, the customer sampling process for the TRIO platform, applications for polymer coatings, and clarification on gross margin guidance.

Answer

Executives stated that about 20 of an install base of 140-145 systems have been upgraded to HAMR, with a steady upgrade cycle expected for the next 5 years. TRIO customer samples are processed in-house in Santa Clara on customer-provided parts. The TRIO's temperature control allows it to coat curved polymer parts for applications like optical lenses. The Q3 gross margin guidance is based entirely on the HDD business, as the focus for TRIO is on securing orders, not immediate revenue.

Sought validation for a long-term financial model, asked for more color on the end-market demand for TRIO's technology, inquired about the nature of the TRIO negotiations, and asked about the company's plans for its cash balance.

Answer

Executives agreed his financial model was consistent with past statements but declined to comment on ongoing negotiations. They highlighted TRIO's proven capability for coatings with applications in consumer devices and automotive. The primary use of cash is to protect the balance sheet, with some minor investment in in-house metrology.