ACM Research - Earnings Call - Q3 2025

Executive Summary

• Q3 2025 revenue was $269.16M, up 32% year-over-year and above Wall Street consensus of $251.7M; gross margin fell to 42.0% due to product mix and inventory provisions; non-GAAP diluted EPS was $0.36 versus consensus $0.53, while GAAP diluted EPS was $0.52. Revenue estimates from S&P Global; EPS estimates from S&P Global.
• Management narrowed FY25 revenue guidance to $875M–$925M (prior $850M–$950M), citing trade policy, customer spending scenarios, supply chain constraints, and timing of first-tool acceptances; effective tax rate guide lowered to ~7–8% (from ~10–15% earlier in the year).
• Total shipments were $263.1M (+0.7% YoY); CFO flagged expected Q4 shipments down QoQ and full-year shipments down YoY on customer pushouts and parts shortages; net cash ended at ~$811M, with liquidity (cash, restricted cash, and time deposits) at ~$1.10B.
• Strategic catalysts: first Ultra Lith KrF Track shipment, high-temp SPM performance (single-digit particle counts at 19nm), horizontal panel-level plating debut planned for Q4; long-term revenue target reaffirmed at $4B ($2.5B China/$1.5B global).

What Went Well and What Went Wrong

What Went Well

• Record revenue and strong multi-product traction: $269.2M, +32% YoY, with growth across single-wafer cleaning/Tahoe/semi-critical, ECP (front-end and packaging), furnace/other, and advanced packaging (ex-ECP), services & spares.
• Technology milestones: “We are seeing broad interest in our proprietary horizontal plating technology for panel-level packaging… first system in the fourth quarter” and “our high-temperature SPM platform… achieves industry-best performance at 19nm particle size and below” (CEO).
• Liquidity strengthened: ACM Shanghai raised ~$623M net on STAR Market; consolidated cash, restricted cash, and time deposits rose to ~$1.10B; net cash ~$811M.

What Went Wrong

• Margins compressed: GAAP gross margin 42.0% (vs 51.4% YoY); CFO cited ~200 bps product mix headwind from smaller front-end tools and ~300 bps inventory provisions/COGS adjustments.
• Non-GAAP earnings declined: Operating margin 13.6% (vs 27.5% YoY) and non-GAAP diluted EPS $0.36 (vs $0.63 YoY) reflecting higher OpEx and adjustments; Wall Street EPS miss versus consensus.
• Shipment outlook softer: Q4 shipments likely down QoQ; full-year shipments expected down YoY amid customer deferrals and parts shortages; some new products shifting revenue contribution to 2026.

Transcript

Operator (participant)

Good day, ladies and gentlemen. Thank you for standing by and welcome to the ACM Research third quarter 2025 earnings conference call. Currently, all participants are in a listen only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I'd like to turn the call over to Stephen Pelayo, Managing Director of the BlueShirt Group. Stephen, please go ahead.

Stephen Pelayo (Managing Director)

Good day everyone. Thank you for joining us to discuss third quarter 2025 results which we released before the U.S. market opened today. The release is available on our website as well as from newswire services. There is also a supplemental slide deck posted to the Investor section of our website that we will reference during our prepared remarks on the call. With me today, our CEO, Dr. David Wang, our CFO Mark McKechnie, and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide 2. Let me remind you that the remarks made during this call may include predictions, estimates, or other information that might be considered forward looking. These forward looking statements represent ACM Research's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially.

Those risks are described under Risk Factors and elsewhere in ACM Research's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward looking statements which reflect ACM Research's opinions only as of the date of this call. ACM Research is not obliged to update you on any revisions to these forward looking statements. Certain financial results that we provide on this call will be on a Non-GAAP basis which excludes stock-based compensation and unrealized gains and losses on short-term investments. For our GAAP results and reconciliation between GAAP and Non-GAAP amounts, you should refer to our earnings release which is posted on the IR section of our website and on slide 13. Also, unless otherwise noted, the following figures refer to the third quarter of 2025 and comparisons are with the third quarter of 2024.

With that, I will now turn the call over to David Wang.

David Wang (CEO)

David, thanks, Stephen. Hello everyone, and welcome to ACM Research third quarter earning conference call. I'm very pleased to report another strong quarter for ACM Research. Revenue grew 32% year-over-year to a new quarterly record, reflecting broader demand across our innovation product portfolio. Across industry, AI and data center investment are accelerating semiconductor and wafer fab equipment spending. AI is also demanding new innovations, many of which have yet to be developed. We believe these trends are driving the market toward us. ACM Research's strategy remains a focus on building a multi-product portfolio of world-class tools that expand our service market and play a critical role in enabling the next generation of chipmaking. Our differentiated technology continues to raise the performance bar across both front end and advanced packaging applications.

For example, in advanced packaging we are seeing strong global customer engagement in our proprietary horizontal plating technology for panel level packaging and we plan to ship our first system in the fourth quarter. In cleaning, our high temperature SPM platform is reaching industry leading performance as our proprietary nozzle design achieving performance at 19 nanoparticle size down to single digit particle counts. We believe this will lead to higher product yield for our customers. Further, with no need to clean the outer chamber, the tool requires significantly lower maintenance.

This is a truly world class tool and our team has roadmap to even lower particle size down to 70 nano, 50 nano and 30 nano to support the next few generation technology nodes. In track, we shipped our first KR4 high throughput track platform this quarter, further broaden our reach into lithography adjacent applications which demonstrate ACM the ability to grow into new product categories together with innovations such as nitrogen bubbling cleaning and etchers and a high temperature furnace discussed last quarter. This advancement reflect ACM commitment to continuous innovation and the tangible performance improvement we are delivering to customer. In September, our ACM Shanghai subsidiary completed its second capital raising on stock market raising net proceed approximately $623 million.

ACM has the technology, the customers, the capacity and global reach and now additional capital to pursue our mission to become a key supplier to major global semiconductor producers. This fund strengthens our balance sheet and will be used for additional investment in our Lingang Mini line and to expand our global production capacity. We also plan to accelerate our R&D investment. This will advance our existing cleaning and electroplating tool for next generation process. It will also speed up the development for our new product categories including furnace, PCVD track and panel level packaging tools and we're also investing in new products that we have not announced yet. ACM is committed to world class product for both China and global customers. Our tools enable next generation device architecture and help solve our customers' complex process challenges across front and back end applications.

We have a world-class technology and a strong IT position. Customers around the world come to us for our technology rather than for low price. We believe this is the right combination to grow our business and maintain our gross margin targets. We feel that ACM is now at an inflection point in which innovation will win the game and drive a significant shift in the market share. Now on to our business results. Please turn to Slide 3. For the third quarter of 2025 we delivered revenue of $269 million, up 32% year-over-year. Shipments were $263 million, up 1% year-over-year. Gross margin was 42.1%. This was at the low end of our target due in part to product mix, inventory provision, and other adjustments. There is no change to our target model range of 42%-48%.

We ended the quarter with a net cash $811 million versus $206 million last quarter and $2,059 million at the year end of 2024. Now I will provide detail on product. Please turn to slide 4. Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tool grew 13% and represent 68% of total revenue. We believe our top and bottom cleaning portfolio is world class and put us in a strong position to gain additional share both in China and to expand into a global market. The 13% year-over-year growth was mainly from our traditional cleaning product. The contribution from our newer cleaning line, including single wafer, SPM, Tahoe, and supercritical CO2, is still fairly small. We expect this new platform, especially SPM, to contribute more revenue in 2026 and beyond.

We estimate an incremental opportunity of more than $1 billion for those new cleaning products from the mainland China market alone. We remain confident in our target for 60% market share in China market and we expect higher growth rates for cleaning next year and beyond. Revenue for ECP, furnace, and other technology grew 73% and represent 22% of total revenue. We had a record revenue quarter for ECP Front End tool, which represent about 60% of the mix for this group. This group, including our MAPP ECP3D and ECP G3 production, all of which grew from last year. ECP backend tools were about 40% of the mix for the quarter. Revenue from furnace was small for the quarter and year to date. That said, we are making good technical progress across a range of customers and multiple product offerings.

This including ultra high temperature anneal furnace which operates at more than 1250 degrees Celsius, our LPCVD oxidation and ALD for both thermal and plasma. We continue to focus on qualification at key customers and we anticipate incremental revenue contribution from furnace in 2026. As I noted earlier, we are seeing very strong interest in our panel level plating tool for advanced packaging from both China and the global customers. We will ship our first panel level packaging tool in Q4. Revenue for advanced packaging, which excludes ECP but including service and spell, was up 231% and represent 10% of revenue. About two-thirds of this group for this quarter is small tools for advanced packaging. This including coder, developer, etcher, stripper, and wafer level packaging tool that run around $500,000-$1,000,000 each. We had a good contribution this quarter from a handful of different customers.

Although we include plating product for advanced packaging in the ECP group and the combination is very powerful, it provides ACM invaluable insight into the challenges of next generation packaging as AI drives industry towards 2.5D and 3D integration stacking die with through silicon via TSV and integrated memory and logic in a single packaging. We also shipped advanced packaging tool in Q3 to two new customers in the U.S. and we expect installation and then tool acceptance in next couple of quarters. We are making good progress with our new Track and PCVD platforms. I already mentioned the shipment of our first KR4 Track tool. We believe our high throughput design positions this platform to compete effectively with the incumbent supplier. Our proprietary PCVD platform with three chucks per chamber gives the flexibility to support a wide range of processes with the same hardware.

We feel good about our positioning as the team continue to work through the technical detail with a field tool. Our Lingang Mini Lab running wafer test and the EVA tools plan to ship in the near term to close on product. ACM's culture of innovation continue to deliver industrial leading performance across the broader portfolio. Customer engagement is deepening as chip makers look for partner that can enable their next generation processes. Please turn to Slide 6. Global WFE demand continues to be fueled by investment in AI and data center infrastructure particularly in advanced logic and memory. While China market in our view remains stable, last quarter we increased our long term revenue target to $4 billion supported by an estimate $2.5 billion contribute from China and $1.5 billion from global markets. Next let me provide an update on our production facility. First is Lingang.

Please turn to Slide 8. Our new Lingang Production and R&D center is now fully up and running. The site's first building is already in volume production while the second is providing additional room for future expansion. Together the two buildings can support up to $3 billion in annual output. Positioning ACM to meet growing customer demand and support our long term growth plans, we plan to allocate part of the proceeds from ACM Shanghai's secondary capital raising to expand our MINI line at Lingang to strengthen our process development capability and enable on-site customer evaluation under fab-like conditions. This will accelerate product validation, shorten development cycle, and enhance collaboration with the key customer as we expand our portfolio of next generation tools. Turn to our Oregon site. Please turn to Slide 9.

This facility will allow customers to test wafer locally on ACM tool and will serve as our initial base for production and technology development in the United States. Our global customers are encouraged by our commitment which we believe will help them to choose ACM as a key supplier to scale production. Now I will provide our outlook for the full year 2025. Please turn to slide 10. We have narrowed our 2025 revenue outlook to a range of $875 million-$925 million versus prior range of $850 million-$950 million. This implies 15% year-over-year growth. At the middle point, we made greater progress with several major product lines this year including Single Wafer, SPM, Tahoe, Panel Level Plating, Furnace, Track, PCVD.

We believe this new product providing a solid foundation for multiple major new product cycle for the continued growth in the coming years. Now let me turn the call over to our CFO Mark who will review detail of our third quarter results.

Mark, please.

Mark McKechnie (CFO)

Thank you, David. Good day, everyone. Please turn to slide 11. Unless I note otherwise, I will refer to Non-GAAP financial measures, which exclude stock-based compensation, unrealized gain or loss on short-term investments. A reconciliation of these Non-GAAP measures to comparable GAAP measures is included in our earnings release. Unless otherwise noted, the following figures refer to the third quarter of 2025, and comparisons are with the third quarter of 2024. I'll now provide financial highlights. Revenue was $269.2 million, up 32%. Total shipments are $263.1 million, up 28% sequentially and up 0.7% year-over-year. Gross margin was 42.1% versus 51.6%. This is the low end of our target model. Adding color to David's earlier remarks, we attribute this to two key factors. First, product mix.

Our Q3 sales included a high number of smaller front end tools which had poor margins and that contributed about 200 basis points of the headwind to the gross margin. Second, we had a higher level of inventory provisions and other adjustments which hit our COGS for the quarter contributed about 300 basis points. Negative impact. I want to reiterate there's no change to our target model of 42%-48%. ACM is fully committed to developing world class tools that enable our customers to scale production of leading edge semiconductor devices. We believe this creates a healthy pricing environment for our tools which combined with an efficient cost structure results in good profitability. Operating expenses were $76.9 million up 56.3%. Our R&D was 14% of sales. Sales and marketing was 7.7% of sales and GNA was 6.9% of sales for 2025.

We continue to plan for R&D in the 14%-16% range, sales and marketing in the 8% range, and G&A in the 6% range. Operating income was $36.5 million, down 34.9%. Operating margin was 13.6% versus 27.5%. Income tax expense was $2.9 million versus $4 million for 2025. We now expect our effective tax range in the 7%-8% range. Net income attributable to ACM Research was $24.8 million versus $42.4 million. Net income per diluted share was $0.36 versus $0.63. Our Non-GAAP net income excluded $7.6 million in stock-based compensation expense for the third quarter and $18.7 million in unrealized gain investments. I remind the analysts that as a result of the second capital raise of $632 million net by our subsidiary ACM, ACM's ownership in ACM Shanghai is now 74.6% versus 81.1% at the end of last quarter.

I will now review selected balance sheet and cash flow items. Cash and cash equivalents, restricted cash, and time deposits were $1.1 billion at the end of the third quarter versus $483.9 million at the end of the second quarter. Net cash, which excludes the short term and long term debt, was $811 million or about $12 per share versus $205.8 million at the end of the second quarter. Total inventory net was $676.4 million versus $648.3 million at the end of the second quarter. Raw materials were $326.2 million, up $40.6 million. quarter-over-quarter, we made additional strategic purchases to support production plans and to mitigate any potential supply chain risk. Work in progress was $59.5 million, down $1.2 million quarter on quarter. Finished goods inventory was $290.7 million, down $11.3 million quarter-over-quarter.

Finished goods inventory primarily consists of first tools under evaluation at our customer sites along with finished goods located at ACM's facilities. Cash flow used by operations was $4.6 million for the third quarter and $44.4 million year to date. Capital expenditures were $43.2 million for the full year. We expect to spend about $60 million-$70 million in capital expenditures. That concludes our prepared remarks. Let's open the call for any questions that you may have. Operator, please open up the call for questions.

Operator (participant)

Certainly. Ladies and gentlemen, if you have a question at this time, please press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. Our first question comes from the line of Suji DeSilva from Roth Capital. Your question, please.

Suji DeSilva (Senior Research Analyst)

Good morning, David. Mark, congrats on the progress here. Can you talk about the shipments and the growth? There are 30 factors, puts and takes in terms of what we should expect in terms of your visibility the next four quarters.

David Wang (CEO)

Yeah. There is a shipment there. We see there's some customer getting, asking for delay for the, you know, maybe the Q1 next year. And also there's certain parts where shortage. Right. We cannot fully complete the order as a manufacturer final testing. But those products probably were still getting to the Q1 shipment and we're still expecting next year's shipments to continue to grow.

Suji DeSilva (Senior Research Analyst)

These parts shortages, David, how long do you expect that to persist? Is that a multi quarter effect or is that short term?

David Wang (CEO)

It's not really.

I think there's certain parts we're using right now and we're kind of, you know, replace some parts, we're kind of, you know, looking for a new supplier and those things have been qualified, you know, in their customer process. Those parts qualifier finish, they can use more of their, I want to say, domestic made in China parts. That's probably a portion of their fact there.

Mark McKechnie (CFO)

Yeah.

Hey Suji, one other thing. Yeah, one other thing I'd add to the shipments for the quarter and even for the year. We talked about this before but some of the newer products that we would be shipping, you know that David talked about in his prepared remarks. Some of those probably a little more fell into is going to fall into next year versus this year.

Suji DeSilva (Senior Research Analyst)

Okay, helps Mark next. And then my final question is on the panel tools. Can you talk about the opportunity as you ramp maybe into the HBM memory or AI memory opportunity, how much that can grow as a percent of revenues and you know how quickly that can ramp. Thanks.

David Wang (CEO)

Wow. Okay, so you have a panel packaging, right Suji? Yes. Okay, the panel has been real hot. Right in there, you know this year especially major customer in Taiwan. We are promoting this panel business. We believe panel is a way to solving as a large area AI chip. Right. Packaging with HBM together. All the wafer level is cut a lot of I call the area. It was the efficiency of the use in the area. Panel packaging, the one key is plating technology.

Right.

I should say a lot of people in the copper plating for panel in the vertical style, we are probably the first one proposed horizontal. The copper plating for the panel, which is also we got the 3D Insider Award Innovation Technology Award from the U.S.A. We believe we really have a good solution and they can plate their panel uniformly. There will be a few requirements of all this, either 310 by 310 or 515 by 510. By the way, we're going to ship one of the panel plating tool in the fourth quarter. Also, we're engaging with multiple customer for the panel packaging business in Taiwan and U.S. and also in China, mainland China.

Suji DeSilva (Senior Research Analyst)

Okay, sounds very exciting. Thanks guys. I'll pass it along.

Mark McKechnie (CFO)

Yeah, thanks Suji.

Operator (participant)

Thank you. Our next question comes from the line of Charles Shi from Needham & Company. Your question please.

Charles Shi (Analyst)

Good evening, David. Mark, a couple questions here. The first one, a follow up to Suji's question on shipment. Sounds like it is more of a customer pushout and partly due to parts shortage. Sounds like the implied message seems like it is not a reflection of the end market demand. I wonder, can you kind of quantify a little bit what is the expectation for Q4 shipment and maybe on a full year basis as well. Looks like a shipment probably is going to be down this year. This is probably the first time in many years your shipment is down on a full year basis. Thank you.

Mark McKechnie (CFO)

David, do you want to take that, or?

You want me to start on that?

David Wang (CEO)

Go ahead, Mark. You go ahead. Do it.

Mark McKechnie (CFO)

Yeah.

Hey Charles, so I think your read's good. We're not really making a call on the end market. You know, it's hard to say company specific versus end market. Yeah, in terms of our shipments, the Q4 probably be down from Q3. You could have the full year would be down year on year. That is different than what we had expected. I think I would point out that shipments were pretty heavy last year as we know. Some of the reasons that we talked about for the deferments and shipments, we should start seeing those pick back up in the first half of next year. I think David in his prepared remarks talked about an inflection point where we're still shipping a lot of our current products and a lot of newer products. We expect to really start kicking in and contributing more next year.

The SPM, the furnace, and this panel level packaging product line.

David Wang (CEO)

Yeah actually including we're probably shipping a few PCVD tool and we see that will be you know definitely contributing revenue in the next year. I think there it's kind of we're in the time of inflection point. Right. The new product come out and also we're expecting some new cleaning tool come out too to contributing on their our shipment and revenue. Especially as I mentioned this proprietary design SPM special nozzle and reach a very excellent result which is you know we think we're continuing to gain a lot of market share for SPM process.

Charles Shi (Analyst)

Got it. I do have a question a little bit later around innovation. Some of the comments you made, David, around, I mean, also proprietary design, et cetera. Before that, maybe a question on the 300 basis points impact from inventory write down, Mark. It was not clear to me, what is the reason for writing down, if my math is right, around $8 million of the COGS of the inventory, and may I ask if the write down is related to inventory you have at your own facility, or this is about some of the write down of the evaluation tools at your customer sites, and if the latter, what is the reason for that?

Thank you.

Mark McKechnie (CFO)

Yeah, no thanks for the question Charles on that. You know, inventory, you always have a pretty thorough process internally to kind of value the inventory on your books. A big piece of it is related to the aging of some of our raw materials. It's interesting, we think that. It's just kind of a formula you apply to the age profile of your raw materials. On the other side, you know, there were some finished goods that we took a write down on and these were, I think these were mostly at our own internal. These were tools that I'm pretty sure were that we had internally. We're not really disclosing it internal versus end customers.

Charles Shi (Analyst)

Great, thanks. David, my last question, I think you spoke, we probably have discussed about this along the same line before, but you talk a lot about innovation, but develop better products than your global competitors, win market share. I think what I am hearing is the domestic customers are probably more looking for simply matching the global baseline, like matching what the global tools they already have, given restrictions, given self sufficiency, all kinds of reasons at this point of time, like trying to do a lot of product innovation. Do you think you may be missing out some near term opportunities? I understand you said that you're going to win in the long term, but do you think that you're going to, I mean, because your tool, even though it's performing better, maybe will perform differently from their global baseline, your customers' global baseline.

Could you, could that cost you some business in the near term? Thank you.

David Wang (CEO)

Yeah, actually, you know, we are waiting a short time. In other words, I gave this example, this, you know, high temperature SPM process, right? And with our special proprietary design, we can really control the order high temperature SPM splash out of the chamber and also the vapor into that environment. Therefore, we control the environment very well. That's why I said 19 nanoparticle down to a single digit number, you know, basically less than, you know, five. So it's really better than even top tier player, you know, today in SPM process. Also, because we control environment, we think about even 70 nano, 50 nano, even 30 nano we can control better. To answer your question, yeah, there's a certain domestic player going there or there's other first tier tool vendor still selling China. I said we're in the best performance.

We think either customer in China or outside China, they still desire best performance as go to small geometry. Those 19 nano semi nanoparticles really matter, their yield loss. That is why we think that we really gain our market, help us gain market share. Both in China, also outside China, we still strongly believe our innovation product has been heavily bad patent in China. Also, you know, in global semiconductor country and area, we have our confidence, you know, nobody will copy the technology or patent the technology. That is why we have the confidence to maintain, continue increase our market share, maintain our gross margin. I still think AI driving a lot of innovation and the customer desire new technology. Those customers maybe prefer more technology other than low price. That is really, I think, a strong point.

I want to say a lot of our existing product cannot meet customer future requirement. That is another reason we have confidence on our tool.

Operator (participant)

Thank you once again, ladies and gentlemen. If you have a question at this time, please press star one one on your telephone. Our next question comes from the line of Mark Miller from The Benchmark Company. Your question, please.

Mark Miller (Senior Equity Analyst)

Thank you for the question. I just wonder if you can give us some color on what you expect for MOCVD next year and also give us an update on what's going on with SK Hynix.

David Wang (CEO)

Okay, actually maybe I want to make sure this is not. We're not make MOCVD, we make a PCVD. Okay. Anyway, you know, PCVD has been, you know, bigger than a lot of, you know, market size with the veto. You know, this is a PCVD almost from five years ago. Right. And we're choosing again innovation approach. And we're differential from major player in a mini PCVD. You know, two big players now. For example, like our chamber has a three chuck. Other people have a four or either two.

We believe three chucks in one chamber can do almost all the process and therefore customers buy one platform. We can do, you know, almost every PCVD process. Right. For other reasons, we also have a lot of control chambers, power supply, or other differentiation come here. We believe our PCVD will be—we're shipping, you know, probably two this quarter or commissioning more next quarter. We will see that the PCVD starts getting into the market. We are also expecting those PCVD will generate revenue next year. We have a really high expectation. Those PCVD are not only servicing in China. We are expecting to go to Korea and also go to the global market.

Mark Miller (Senior Equity Analyst)

If you can comment, please, on Hynix and any developments there.

David Wang (CEO)

Hynix is our customer, right? Is a long-run customer.

We're engaged with the multi tool cleaning obviously and also other products. You know, we're still thinking Trinix is real innovator, you know, leading customer. We're continuing to engage with them on multi product right now. As I said again, a lot of our new stuff were developed right now and they are very interested. Right. Because they're also leading all the HBM everything, right. Even the DRAM field. They're design more of advanced technology. Also, we have a Korean team and Shanghai team together. It's working very well. A lot of technology actually was invented and developed in Korea too. That's really feeding their requirement. Locally manufactured, locally R&D. We still see a lot of potential we can providing good technology to our customer in Korea.

Mark Miller (Senior Equity Analyst)

Is your panel packaging tool, is that of interest to Hynix?

David Wang (CEO)

Yeah, not only packaging, right. Also talk about front end too, right. And you know, in all level of their engagement and including, you know, we talk about our furnace, PCVD track, and all other even, you know, product in the developer.

Mark Miller (Senior Equity Analyst)

What about your cleaning tools? Have you been able to penetrate Hynix with the cleaning tools? Tahoe and SAPS.

David Wang (CEO)

Well, we're, you know, we have a SAPS tool, has been sold, many tool, right, in Hynix already, and now obviously we have a new cleaning tool engaged with them, and the lines of our property, you know, into a bevel cleaning tool, and we should really take care of probably more than a finer layer of 3D NAND, and all this is one of the major applications we think will be contributing to their customers in the future. 3D nano technology.

Mark Miller (Senior Equity Analyst)

Thank you.

David Wang (CEO)

Thank you.

Mark McKechnie (CFO)

Thanks Mark.

Operator (participant)

Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Stephen Pelayo for any further remarks.

Stephen Pelayo (Managing Director)

Great.

Thank you.

Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On November 19, we'll present at the 14th Annual ROTH Technology Conference in New York City. On December 3, we will present at the UBS Global Technology and AI Conference in Scottsdale, Arizona. On December 16, we will present at the 14th Annual New York City Summit in New York City. On January 15th, we will join the 28th Annual Needham Growth Conference virtually for our presentation and one on one meetings. Attendance at the conferences is by invitation only for interested investors. Please contact your respective sales representative to register and schedule one on one meetings with management. This concludes the call. You may now disconnect. Take care.

Operator (participant)

Thank you ladies and gentlemen for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.