Veeco Instruments (VECO) 14 Feb 242023 Q4 Earnings call transcript

Greetings, and welcome to the Veeco's[Audio Gap]and Full Year 2023 Earnings Call. [Operator Instructions][Audio Gap]reminder this conference is being recorded. It's my pleasure to introduce your host, Anthony Pappone, Head of Investor Relations. Thank you, sir.

Thank you, and good afternoon, everyone.

call John Bill Officer. Kiernan, the Executive Veeco's on and Officer; our me today Miller, are Chief Joining Chief Financial from earnings otherwise website.To presentation available slide future revenues, call release today's market for Today's is conditions earnings, webcast or discusses uncertainties management's the to are subject and statements future, to forward-looking these expectations on extent expectations results about the made. accompany Veeco actual statements risks statements current that and the future differ cause that materially make this are based the and on could to reflect in in statements, events other forward-looking any the after discussed are risks such or report not to annual obligation Form including and those These circumstances filings.Veeco undertake future does of detail to date our made any XX-K statements. on update SEC call this unless results. Please non-GAAP management noted, note, address will financial otherwise our to presentation.With call release which our in Miller. can you find refer encourage CEO, over end We the between the to results, non-GAAP turn Bill GAAP the you I will at of press and our to reconciliation and that, earnings

was by XXXX road Veeco improved importantly, a year. the profitability reached the strategic most year future I'm proud for Anthony. product to the say and, you, Thank laid for milestones during groundwork business, advancing Veeco. our we growth grew successful X maps.

consecutive devices in Deposition third for fabricate for reached a metals. to Each business low-resistance First, WFE we technologies XXXX, year. consumption.Revenue higher launched our our from our outperforming growth next-generation lower Nanosecond power customer Annealing System Semiconductor launched Ion of solution. And performance record second, the Beam our we enables and these with

is devices our third systems CapEx laser annealing systems profitability. equally first despite growth customer.While industry-wide essential as our as strong Our reductions, to our included we're results laser growing focused logic for strategy, to for on annealing investing HVM well leading advanced multiple DRAM

allowed income operating execution and non-GAAP grow us team's EPS. Our to gross margin,

XX.X% a prior led $XXX diluted grew income in evaluation XX% half revenue, second will In year results expect evaluation program XXXX. the shipped significant towards lead as these of gears for to operating reported to year increased technologies non-GAAP in multiple Revenue with million and in organic XXXX allocate the to near XX% non-GAAP served the XX%, increased XX% available highlights. coming or our Lastly, of our growth, growth systems margin capital result, Semiconductor totaled and we of EPS quarter look expansion.Switching believe of $XXX further gross results. Veeco totaled end XXXX, driving by another in income million $X.XX.Now We guidance. at million, continue to and bottom-line to strong initiatives. from key and top- we year. to margin to highlights. of year-over-year. improved bottom-line EPS $XXX our Veeco the million, non-GAAP above top- which financial to approximately Gross improved reported totaled high $X.XX. operating And Revenue updated XXXX investments a market to and $XX sequentially QX non-GAAP full another

for Beginning gaining led nodes laser our advanced on node activation we've solid an primarily and to achieved as geometries budget, new node increased technology available a the require were annealing. advanced customers. performance customers opportunities increasing look technology. share and with applications insensitivity increase ahead, we our Semiconductor they've logic annealing of Annealing and memory thermal customers' growth is at adopting precise business, as XXXX, Nanosecond Veeco's and architectures new winning customers, our technology.As driving including several from laser include shrinking In device annealing logic markets We're LSA applications by in winning annealing benefits mature introducing Semiconductor additional Our the demand market. financial dopant performance. review results are our Veeco's served growing provide lower memory update number in sequentially.I'll XX% our experienced investing annealing and laser market market, to by technology and also exciting driven now advantages systems Semiconductor revenue the opportunities. from there by with new a high pattern

Moving to in ecosystem. our the position EUV

Ion produce defect-free technology Beam Our is blanks. utilized mask to

our leaders work as continue closely maps. We to enable to with technology industry we road their advance

semiconductor we market. several Looking opportunities electronics to photonics. be and focused to on the to up Semiconductor our revenue to long-term Veeco within expect XXXX, power X% XX%.Moving is compound

to year. this X We high-growth and continue X position Tier to believe advance go-to-market capture market. this and extensive evaluation unique highly expect ship with to in engaged design infrastructure our us customers We silicon our share systems remain well carbide technology, system

X For XXX-millimeter and device GaN at we're customers with working positioning Tier GaN-on-silicon power, wafer sizes XXX-millimeter and for power ourselves solutions.

compound to to device XXX-millimeter heads expect Veeco ship Based We we for our to equipment XXXX. to in customer the thin-film hard storage a Beam system semiconductor data be X% a to serve, XXXX.Lastly, magnetic XX% looking business market. visibility evaluation Ion at manufacture in up expect the power markets drives. we current provides in on disk

market. our of to our of we're from in we're Based beam the advantage in to on expect focused positioned business long-term on be ship storage the data backlog, the well technology to cloud, we dates the up Veeco product growth front-end data porting a scheduled having leading-edge XXXX.Moving and requiring to profound While take storage to impact in artificial advanced role the AI intelligence chip XX% now to flat is road maps, chips. technologies Growth AI process. on manufacturing semiconductor manufacture the higher-performance in most of plays AI

for systems same deeper market. record systems for Equally into applications.I'd see opportunities of X and solutions GPUs Our as a of important, we blanks Annealing in tool Nanosecond for Deposition Ion formation to future for production the mask and largest as HBM now these laser are EUV established dive DRAM. for take our our Beam and IBD like annealing Semiconductor transistor opportunities

a versus advanced to our substantial served dwell a and architecture, a today's range laser a budget offers time expand system our technology thermal lower node opportunity to of Due to market Annealing available Nanosecond can achieve and applications. Our solutions. unique shallow most our new shorter tens next-generation power broad anneal anneal of wafer, annealing nanometers nodes contact as in hundreds into This can impact delivery steps the for and ideal to such advanced for advanced be and only backside which may that devices. results XD

the growth.In Our evaluation leading X to the to recrystallization grain logic first change of we capability systems properties removal, our structure system has the NSA and X like and enabling shipped void customers. steps QX, device,

look XXXX. As see we in high-volume orders manufacturing ahead, we for potential initial

for honed core over applications. has high-value in level in challenges also technology solve technology, been decades. which beam semiconductor our beam advanced Turning deposition Veeco can industry leader ion manufacturing. This now XXX-millimeter front-end to wafer is ion customers' semiconductor the

lower data, tungsten shrink, important Traditional technologies traditional films are demonstrating our device As like resistance deposited device compared on metals are deposition to Tier PVD are ion-beam XX% struggling X geometries Based performance. PVD. criteria. continue maintaining and performance customer to to to approximately meet resistance ruthenium lower

DRAM, For maintaining electrical of bit-line enables while device. performance the tungsten scaling this

logic, enable DRAM systems ruthenium-based nodes.In can to integration first QX, IBDXXX metalization our For new X we X schemes customers. future shipped evaluation at

for ahead, that, I'll a initial look see XXXX.With high-volume it John orders in As to turn financial over for we update. manufacturing potential we

Thanks, Bill.

from reached million, up total came region. a year, $XX year the million, Turning and revenue.Moving the our year, total to the $XXX X% Data revenue the resulted first region of node XX% other And comprising was increase the increasing an XX% semiconductor over XX% for to XX% by of our year-over-year increasing to wet China of from year. systems $XXX at revenue. was prior softness Revenue from in year. in prior scientific decline by Revenue million, increase for decrease revenue The led systems. totaled comprising XG at XX% and the by representing prior revenue. revenue. in RF market Semiconductor in prior up semiconductor devices Growth from of $XX million, storage processing $XX sales. total flat Compound to a the revenue the Semiconductor primarily revenue decline XX% prior XX%, revenue, of revenue in annealing business handset driven mature due year, of The an primarily made in market. making laser million, came our from XX%

Diluted largest million improvement of from to XX% million XX% gross China, full And lastly, EMEA increased up million, income $XXX Operating achieving United Our the achieved the led GAAP year.Now looking the now made coming of focus expense Asia effective increased continues increased yielding up at $XXX EPS XX% $X.XX Amortization of $XX Pacific shares.I'll margin selected $XX R&D to customers. XX%. from investments. margin total year made XX% XX% model an our with the revenue increase data. region, results. expense operating from year to And XX The prior for a with States revenue to our income contribution targeted to customers. XX% semiconductor for lastly, as semiconductor future. Operating increased the full expenses revenue, was Gross with XXXX year. target of was as we provide prior net year We million tax increased million. an and by in in of the excluding X% storage XX.X%, data year million. $X on rate tax actions non-GAAP of

refinancing XX% XX% United Tax of of totaled lastly, customers. in up primarily driven storage Pacific million, came gears non-GAAP rate. X% approximately revenue, in led expense revenue by included and $XXX quarter GAAP And EMEA XX% prior was The an from revenue. expense QX. the And in annealing $XX a net of $X other The $XX million semiconductor increased market to our revenue revenue XX%. by comprising interest of by quarter to quarterly revenue customers. mature QX at sequential expense guidance and China, to Compound semiconductor increased Semiconductor Gross XX%. tax of The XX%, equity loss from million, geography. near the scientific storage to quarter, sequentially $X the million sales. $X Data XX% expenses to the increase data for high net at excluding Revenue million by of for $XXX for was revenue to of results. from revenue led was quarterly total depreciation range. and slight notes.Turning came convertible China a semiconductor increase revenue.Switching of and systems. up from revenue, semiconductor Revenue Operating margin by our million, $XX substantial contributed the made was turning made effective by our end to portion resulting a Asia region. increase approximately million. million, Our in XX% XX%. node $XX percentage region, sales from million, XX%.Now States from laser million approximately X% due extinguishment was quarter $XX totaled up comp in a loss QX our was

Long-term QX convertible inventory XXX. XX. while total operations, Lastly, net $XXX the CapEx expected debt cash $XX a declined from million.Now working income to quarter The and From shares.Now and came in million was million We about to sheet million, million days short-term to cash QX the million, investments with $XX $X.XX was primarily of of offset during while of the capital of balance and perspective, gross between $XX margin to be by EPS CapEx the $XXX payable million, value receivable $XX at on decreasing driven million, and flow the cash was by million for $XXX flow sales QX came sheet is declined XX declined to totaled CapEx. XX%. moving for million. partially increase turning bringing diluted balance guidance. $XX $XXX million, ended days by revenue at outstanding representing $XX million carrying million, finally, to $XXX non-GAAP $XX XX.Inventory XX% of by year million Accounts and of increase while the accounts to our notes. on the prior sequential million $XXX by in a declined $XXX highlights. days quarter with payable from at $XX And quarter to between million, recorded to million our $XX

some We revenue and $XXX between million. and for net and current million reiterating $XX our $XX beyond income are between Based OpEx between and additional visibility, million, our expect EPS between on now million QX. and $XXX XXXX $XX color million $X.XX XX outlook we million diluted shares. $XX on $X.XX million And

the I'll and to based We upon half share.With to of exceed in that, orders. operator scheduled turn second shipments now as year well for over half the to the be expect And diluted as the year continue forecast the of revenue the call forecasted non-GAAP full to to between we our backlog Q&A. first in revenue EPS open $X.XX timing per $X.XX from up

[Audio Instructions] & Co. Rick with Schafer Oppenheimer Gap]comes [Operator from

questions, if solid on another may. quarter. Congratulations Few I

The know ton guys a one, you could drivers. of a Bill, growth year, if lot mean, compares obviously new guiding first curious time for of this this you for you 'XX. give talked for compares highlighted, I about think, how it's backlog just was growth. a I sense year, But I $XXX 'XX. around million, a how that I know And just last I year don't

this Yes, John, the is Rick, thanks question. and for

We haven't so yet the full number published published XXXX. backlog XX-K our haven't we yet, a for year

of we the that into few would normal here. from XXXX see our in the in to a say Semiconductor. say We comes I here business in we expect continue look course. days in the publish as Semiconductor backlog I strength would guide, portion that to Largest that

our up year, And in when to outlook for in XX% course, we that our hand X% orders. We gave at as Semi be backlog we about considered in as XXXX the full well to forecasted of compared point to expecting are the business XXXX. XXXX, time

I follow up was there pretty just a sizably, 'XX. And rev on China. could year-over-year The think, Okay. quick in contribution up, one I if

order you And give a of more the could it don't velocity, know around of like so color in little quarter. fourth if seemed kind I peaked like sort

of comment that Gap]geopolitical think curious like of a much there. normal So trends maybe region you if stuff but little would sort pull-ins[Audio you on kind is there could of for a nuance, out if you velocity there, versus just sense outlook do this like I'm look And what of year. how demand demand order that could,

me because you thanks that please a there. And Yes, Rick. Okay, if of or any for I the of help Bill part pieces question. had miss ask could question couple it, to

company's prior increase in XXXX, our the versus I revenue -- business from of revenue was China. say mature the from laser driver year. was XX% from semiconductor the And business the for largest annealing XX% would That's and coming really So came node about in of the there.

investing node. right, there of been adopted customers was node. also at So I number a that at a of have in we XX-nanometer node. customers as one XX-nanometer saw seeing even things well, say advantages see typically, adopting mature the advantages been We've LSA we seeing and or would

So that's been business the helpful there. to

seeing projects, customers with to is invest advance still continues to activity customers -- to be strong. customers forward, now look very We're me, with right continue we strong. activity As new and excuse in

will As give got think right revenue, year. XXXX, as But sit sort significant this the at half for customers' I at there's the somewhere first come point. of in the look of visibility whole year really of change we in XX% I take. patterns We've our of business no any indication or good in now, China the around

bit the add, just I more little to guess I'll center second planning seeing volume in the that a edge. have leading Rick, we're in the from half

the leading develops. and little mix China. we'll have would how more to wait towards But think edge kind a see lagging edge might in that of that from I shift maybe So the

comes Goldman next Lee Sachs. Our question with Brian from

execution. Kudos on I can guess, well, I to one with. little just there housekeeping I bit you were talk some out thought question the nice reports a there. guess, begin --

misinterpreted the You we did there you 'XX, initial guys you're X% January? growth Or to -- XX% officially change? made had just for talked semiconductor Was in a about XX%. maybe maybe saying comments in

our outlook. No, there's no change in

And at that in XX%. X% change. we gave No that was to out conference January, the guide the

that as appreciate manufacturing on talk have SiC out where I else? of silicon Yes, opportunity versus eval you that. we embedded in know you semis time when eval Okay. that might high-volume again be the the there's orders? thinking sort you mean for of Can some anything I 'XX, types And opportunity, out just the making from you GaN-on-silicon SiC versus tools called differ then notes. had kind across and the well. I then different opportunities does about maybe in sure presumably specifically, Fair. line of on have right you compound And success about

And a investment this X compound have and Tier the in in power of XXXX. evaluations. planning going of XXX-millimeter is of a electronics, And in in carbide working systems number second in at And system 'XX. planning year with GaN-on-silicon, customers opportunity for Tier an in X to we're be in also are evaluation for field probably Brian, a we micro actively we're opportunities. GaN-on-silicon fourth to the LED, to X half the place actually a place customer then year 'XX semi evaluation in silicon system, is

into we're fair the products 'XX. field So planning put new we have to a of amount in

is And I category, And 'XX, eval would specific. manufacturing can out the how That's opportunities across is expect? great. volume specifically just this of that works view line a that going call you you called time there and depend But be on X process didn't for any of but any high kind typical to out? visibility your those it's you orders know expectation and around customer-dependent in

Yes. I evaluation the be a typically months. XX months. XX-plus in compound semi, months, semi X front-end they're Bryan, to maybe shorter, X In bit an would market, say, that can typically

to I have and 'XX. would HBM you as into successful 'XX success, orders And -- late we're having assuming so expect, said,

one Okay. for pass Last me, I'll Fair enough. it and on.

semiconductor opportunity good there. You and you've been seeing talked a the lot about the growth

can Specifically, some and over talk there might 'XX of I well? guess, as course in you bit you're what of outlook to market, the there that is having a you growth opportunities seeing advanced where little packaging, what the be

Yes.

for equipment are 'XX We packaging, We high-bandwidth in in stack. opportunities in sell exciting particularly the applications. some HBM advanced processing growth seeing memory wet memory

there. some driving us for is over that so XXXX growth And

Shi Company. Needham & with Our question from next Charles comes

I data little you which is markets. us But driving still your there. think, and there's I business, think on There of X-part photonics too business the of don't to X% specifically, lighting side, and -- carbide. little the your in you Can say, see growth. electronics be the a I especially, bit optimism focus wonder yes, the LED devices. about do silicone There more to Yes, the you didn't how EML your was side on bit, much breakdown type is the said semi more market of X I Are your if that's right, know I VIC, by, right this more the you let's activity, the side, than of end end compound that the now, communications much is expect photonics of this GaN some is and you think, you a a John, yes, Bill, RF these more communication, the beneficiary can -- side. photonics high-level I But of kind to end of growth? seems grow a side unpack year. think XX% question, of prepared give remarks, commodity what mention some the power photonics you

for particular seeing say, area really of seen LED well kind a commoditized equipment is in Charles. unpack is of area one and yet our almost us. wet kind would haven't our numbers of much has portion bit, to though to uptick are starting seen has are filters well. improve the power processing driven carbide try X and the in exposure as GaN seeing business to haven't at question the some really in power, as an I in has little amplifiers that business Sure, in fair opportunities XG we What we there this silicon business soft. are a as that That time. business for Veeco amount your with of driving the soft market The in we past. RF we and growth photonics remains our Even in the growth been

seeing did gross very Got QX next let for performance. margin ask margin deliver did the the me little But gross it. a you more strong quarter. the level Maybe something -- some Or you seem bit mix conservatism? QX. of the guidance about compression Obviously guys leading a guidance else? just of margin indicate are it or to the you or a anything margin, out that's something lower Is into to

we're upon XXXX, take do gross Thank improved. I that's say as volume the we a granted I obviously, Yes, higher typically that. ended and QX. our year that margin. XX.X% Charles, other margin And progressed, the guiding did did midpoint favorable QX, to quarter-to-quarter would say I'll what the for At our year in XX% see from would for that full in the profile at benefit we that the based the from factors. which a benefit of gross number in guide, quarter from you year one margin hit variations of the we not for there. for that's mix And question.

points out full making we're to of a just XXXX gross XX pointing remarks. XXXX, of I investments we worth significant investment that we range think with out, talked similar this evaluation a is the to And our prepared program as basis the I are that's about right to similar, things XXXX. XX year in margin look revenue making one about now, in call in that ahead that's

our of improvements turning So of a XXXX ahead similar we in in are guiding level in and margin evaluation but as XXXX, we areas, program. are that kind reinvesting revenue other around making to

Mark Our Benchmark. next comes with Miller from question

Congrats opportunities multilayer equipment Beam mirrors dielectric components? Are your on or -- holding hand for seeing a or any good Deposition Ion multi you optical in execution.

$XX using XXX-millimeter about But semiconductor if filters, a filters, -- front-end do we're band-pass probably does provide in it's Beam actually Well, X-defect space, blank resistance mask And systems as directly. for deposition We Beam we that Beam Where low you obviously see the those and steady range. is systems we mask business Ion equipment area, of don't Ion know, the Deposition. that selling metalizations. have lot EUV We in Ion putting hard that provide are opportunities for now XX this Deposition see disk eval business, in million into optical Mark, the drive business. a we equipment blanks. in

take a your deeper I'd little into dive backlog. to like

kind composed give backlog, can and in your of memory to us it's AI-type estimates terms you also relative how logic, advanced of packaging applications. If

Yes.

thanks our the not We've is say So business for that the question. And we That's this, sort backlog. driving detail of the But over is our backlog. in give year. I'll our our backlog of business for as where we'll level XX% XX-K semi Mark, the publish the yet don't what behind of typically published well.

the into our components come market. backlog the larger going So XXXX of from will semiconductor

question Our Duley Dave next comes Securities. from Steelhead with

as Beam I as performance Deposition for tools XX% the as is was wondering improvement to your performance guys, the DRAM you talked Ion significant far high-volume far significant about what as as improvement. sort the customer far of them to manufacturing? as What's a

in I very would question, thoughtful a performance. a It's improvement substantial say that's Dave.

think Beam some So has is Deposition. contemplating moving major nodes plateaued and I industry traditional of not changes, been the number for a the Ion to if technology

impact And or a resistive routinely these is in the which and reduction direct bit the has can speed we in that lines, so what the of we're of demonstrating film, the more these see to resistance a losses XX% improvement lines.

So the very excited well. and evaluations are about tools the installation proceeding quite under customers it, the and or are

the to the is would other. from to get obviously switch one And customer that so XX% higher significantly than to the take technology threshold

really that for material. our films can them now characterize been had portions years large the significant of when actually it of that an what and didn't grain until lowest at of we customers of the we deposit Yes. Yes, actually, structures and demos with a lot improvement. think to a is believe numbers is and we that the to realize working It's -- very customers. almost do first grain only send deal them structures, resistance a few we we've to can preferential it's for I doing big -- And deposit them first

it different really than so has And ever is knob a industry seen. substantially the

And the major one systems? evaluation recent producers high-bandwidth pave the way wins with of area memory help for these did in your the

we're hurt with could obviously technology. not And annealing really in when I introduce related. annealing. a that laser They're performed having new had doesn't say trying guess We've to success laser you

name the DRAM of So that a the really obviously way, But have people so. space. in groups the same groups infrastructure, our it's positive. within are to it's But broadly more memory good different known

for high-bandwidth to the your regarding one volume talked in up one start Final I from using LSA Are that's their tool names guess, you've see calls X Okay. in memory activity other about but starting me customer behind, production. think you hear think further having tools is, are, other production. mentioned to ramp conference purchase I I guys on and who I'd starting

Yes, system out demoing system X evaluation probably actually their plan actively And plans. annealing least we in half are with have at is customers. one 'XX, those our support 'XX second our to or of laser end to in the the

next with Our question comes Capital. Richard Auguste from Northland

number? count systems Nice sure want I right. X right just There make this quarter. I are to the email going out year. that Is

look at me Let this.

Nanosecond silicon in shipped in we have in X Annealing X going advanced we going player. memory DRAM GaN-on-silicon systems Ion LED. and X X -- have about, X spoke out one we in out major annealing tool, Systems memory laser I semi, to Deposition Beam the XXX-millimeter logic, And second a a logic. fourth for compound for carbide, in So and X evaluation micro And memory we quarter, for systems, just

X tools that So X adds in to up systems semi. new plus evaluation

Got it. production likely of volume ones that And think handicap if result And rank be kind them, you just do helpful. most could in for to would orders? through us, which are can you Got it. you

in turning eval and strong players, space, in with production. the into follow-on logic systems and good a we've very presence we I leading-edge memory. I the would we're revenue; A, success annealing some very in actually B, say say had would penetrating our already have

the tool, next opens new of extension up and Nanosecond our that so an opportunities. generation product tool And Annealing is

So customers are I with annealing. would laser our generally familiar say

into say about spoke a second would probably going we become resistivity positive Ion Beam say into line. we And big of pretty little the to one Gus, so the be that Deposition I DRAM bit it's semiconductor. semis I potentially XX% which -- being is really And system, time just well, said, a That And is would the in then to take in technology adopted. deal fourth more going to feel metals, the turning this business. going about in there's the reduction

say customer with I carbide, market for the say seeing we with And So time pretty for. where a Annealing, LED be and delays would ramp what you the X the in that plans that's of has Nanosecond I is some And we're large opportunity the will. the compound micro that Tier the rolling little might little space, moving seems if strong 'XX. to good the silicon potentially engaging players probably pull is a a be one are And X spot. Tier than 'XX tool keep GaN-on-Silicon and longer is and in in planning out semi who right, -- to to the the trying market that kind would that the to we share further gain moving the is

probably So is timing a little really from that more standpoint. riskier a market

in touched there to that system you was wondering application I opportunities just believe haven't pellicle application. last is any follow-on IBD And it. Got moving interest guys on shipped for on. some any was other it customers? other quarter then you or an I

may maybe we're XXXX. We, it. But have planning that ship tool, for a revenue it. not did ship booked year. customer I in the this And We yes, to demand follow-on think, for

quantum order couple Got little computing. application beam particular either of a it. that over you Can I an for a maybe or opportunity then bit just epitaxy And of shipment a about and talk the years? announced Got molecular next think it. the you

cubics to table purity segment Yes. a be the quantum in the materials can very MBE our application deposit We And tool sold -- for that tool a great periodic a make different and best-performing to very customers computing. R&D can many is in scientific for and high-performing films. the on research high

revenue volume probably computing really we will so And so for just in say. a systems X one for in kind or not of 'XX, ship Quantum scheduled the another system have path-finding type to that years recently is I and end application. really in be going to shipped the actually think X the very quarter. a XXXX actually. activity. of early One any X large pretty phase, maybe research It's And similar be is we research or it's announced I -- would much fourth at we that

Heisenberg always to is uncertain. according Well, quantum

Yes, exactly.

Our comes O'Malley Barclays. with next question from Thomas

first by Tom. My driving for is into sequentials compound decline? the And is quarter-over-quarter this about segment Levy the This What's on is Will March. for question the bottom semi?

I'll So that. take

So million, yes, for million QX. X%. midpoint $XXX our about with we guided finished at so We the the just quarter down $XXX guide, of

record that segmentation the quarter. market, our to the we're of during look to expecting million. guide, in million, at I us slightly was high $XXX of our If go that you would a guide the down was by that at end for be the QX If semiconductor and midpoint $XXX I quarter. remind was

So still maybe around at $XXX million a high number. level there,

number, as but sizable system quite one there. it's $XX And scientific million a compound about tool Bill for out bit the one for there. in a number plus would then just and are more mentioned, research that, see semi, rebound this at only large a falloff Data a of a for We say some million a computing. applications systems, $XX about coming looking we difference in QX I coming there couple a system number photonics we quantum but $XX of or minus, see we had so. very strength in off shipping difference, that And $XX in million storage, million, went or it's a about in

that's QX, So difference, a of tools we those a revenue QX and biggest in number. driver the big the and not sizable quite had in one having number

My your question is data storage Awesome. next business. about

introduction and the this your quarter and business? view outlook commercial your such, impacted has this of HAMR how this the of ramp of With

a for core Beam long-term We've we Ion The position the a we is great our A, give adoption partnerships in HAMR have ability long for business which data think been, us semi. has customers. the a and heads themselves time and complex, in What though that more driven B, a technology more this and data there transition coming port business long-term storage growth industry. is of deposition from kind to it strong exciting storage see the would the And is We steps, by term very really decades. of the will will with data become healthy think this long benefit into Veeco. We be head for opportunities will us. really and storage been

a of that with really started EBITDA a storage. and that's focus beam ion really are the the so And R&D programs data technology the where spoke about of lot lot of we of. just coming originally out The

time. at looks It questions this no are like there further

over to So the like floor turn Miller. would to Bill now back I

growth Have want Thank their Bye. evening. and you. we our I thank team with Veeco shareholders for great support our as our continued execute strategy. customers a along to do

[Audio Gap]concludes today's teleconference.

time. participation. disconnect your at for may this lines You you Thank your