KLA (KLAC) 27 Jul 232023 Q4 Earnings call transcript

Good afternoon. My name is Chelsea, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation June Quarter 2023 Earnings Conference Call and Webcast. All participant lines have been placed in a listen-only mode to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

I President the Market of go sir. And Kevin over Analytics. now ahead, Vice Kessel, Investor will you. call turn to Please Thank Relations and

discuss us and quarter September quarter earnings Thank June our for for of the joining call you to the outlook. results XXXX our

CFO, me Joining our our Rick CEO, Higgins. is and Wallace; Bren

IR is this we will are after on along close market materials financial call, otherwise discuss that today basis discussion they During specified. make with available to all website. a non-GAAP our Whenever on the years. calendar presented full-year our results Today’s relate supplemental unless released references, we

non-GAAP posted detailed of website. A in the results on GAAP our earnings materials to reconciliation is

corporate our and filings, and governance our SEC website Forms recent Reports most to information events IR Our contains presentations, future links including also Report XX-K investor on and Annual XX-Q. Quarterly as as well

reflected in Our and risks comments Risk uncertainties the are filings. disclosure subject today SEC in Factors to our

we call including forward-looking forward-looking on and true. will cannot guarantee today, those to make risks, come Any are statements those subject KLA statements, those the

results may forward-looking projected in significantly Our actual from statements. differ those our

and our some highlights, will conclude the will quarterly including with Rick, highlights. begin our Bren, and comments with call guidance outlook. financial

to will Wallace. I our call turn now Rick? the over Rick CEO,

Thank you, Kevin.

in and KLA’s comments the letter challenging demonstrated and shareholder Let’s results with start can of semiconductor color expectations quarter KLA’s my our on with today. despite demand a quarter, performance found consistent along the a be Further in exceeded detail summary released marketplace. a few June and environment execution, earlier highlights.

of on GAAP and with respective EPS per guidance the and end sequentially. share was guidance end at finished $X.XX, ranges. their billion $X.XXX a at earnings revenue Specifically, upper the was finishing upper X% of range, basis X% the year-over-year each $X.XX non-GAAP declining of

growing adoption demand diversification particular, technology nodes of legacy and and near-term demonstrating of industries. markets remained the strong, are In some spots. across automotive multiple persist, bright served demand headwinds there As other by semiconductor

node process they and R&D for near-term as is transitions and Additionally, are the as enabling focus are in early well on heavily KLA closely during the pressures. and technology products our critical to to execute investments. R&D more upon efforts, work We important a prioritize plays our that with This resilient R&D control relied role that is our customers continue is process, faster yield when ramp customers, critical. to the as timely of phase

supporting R&D on focused remains our enable maintaining road to our KLA while investments technology requirements critical map. customers'

customers, relative of process our example fueling includes vertical which Our and wafer of June in creating infrastructure commitments latest and of quarter this exceeding Growth value factors or is successfully and KLA's for shareholders. quarterly are Specific KLA's results meeting KLA. and include the critical leadership driving the for our WFE. leadership partners performance control, fast-destroying and most market some critical segments market growth and

industry. in from revenues deliver are a the The WFE used business quarter, example, $XXX and KLA our wafer to unpatterned overall up expected metrology the strong For significantly the year. market wafer down over year photomask to manufacturing in products and in June grew X% outperform and growth services year silicon million for inspection

of positioned and customer marketplace to products teams. prove the resiliency despite the requirements. the continues execution, operating a KLA of with challenges comprehensive well remains the consistent KLA meet of Our in to global model our dedication portfolio

financial Bren through to to Bren? our highlights. go it hand now I'll

marketplace. despite a end Thanks, demonstrating challenging consistent at Rick. upper and KLA range the delivered the guidance execution of results commitments, of

capital what and strategy allocation successful. customer continued expanding on generating of maintaining long-term makes free Our sustaining strong growth markets, industry-leading leadership, assertive focus needs is in market flow, while meeting operating cash our us

as $X.XX, to the upper GAAP also $X.XXX the $X.XX was the $X.XXX guidance above EPS was EPS guided range towards of diluted billion, Non-GAAP of towards upper of to end range $X.XX Quarterly was driven of due midpoint the improving was higher freight points guidance. the $X.XX. the $X.XXX margin mix, range gross quarter current utilization end in of XX.X%, diluted factory adjust revenue Non-GAAP XX basis billion. Normalizing upside by overall of the margin above products. midpoint was capacity to expenses product demand to expectations. the and as guidance

SG&A. tax due slightly higher margin $XX XX.X%. rate income was expenses was in were and expenses XXX operating million million Non-GAAP comprised compensation. Non-GAAP XX.X%. to adjustments XXX expense Total was Other XXX and to quarterly million, than debt million, effective operating the guidance in R&D variable operating and

tax have income net from guided Gap lower, $XXX or flow $XXX rate Cash net operations was cash million. million. would $X.XX. If And million. non-GAAP of was been was was flow million. $XXX non-GAAP $X.XX free $XXX EPS XX.X%, the Quarterly income

end by the result, revenue slides. company XX%. The outstanding free approximately and strong within end regions of Breakdown a quarter. letter was conversion cash found markets flow products was As had And million and XXX%. free reportable the flow in cash be at shareholder diluted of weighted the shares margin average major segments at can $XXX.X

the all cash, supported cash X.XX grade ended and in maturity bond billion, to securities, ratings billion strong balance sheet equivalents attractive from a three total marketable and by Switching $X.XX agencies. KLA profile the with flexible and debt quarter of investment

XXXX. down our approximately unchanged at outlook, billion from for outlook WFE to in remains $XX Turning largely our XX% XXXX

While year. unclear, of And systems of our we control overall continue a for around in business process current this WFE we stabilizing remains expect resumption demand the growth demand to continue the business. remainder semiconductor levels the see timing meaningful profile to through investment

a Our demand demand decline investment decline for overall legacy by XXXX automotive memory, to by about XX% assessment segment in the and to due investments nodes. with WFE tops-down approximately overall XX%. we legacy continued as follows; expect estimate to Foundry/logic outperforming principally of industry design reflects WFE

enabling KLA's prioritize primary transitions, technology proposition to environments. all innovation customers focused which is business value continue through our on across

expectations, our expectations confidence customers as road demand to slots adjusted shipment map While align map requirements. changing investments with This additional resilient. due more technology capacity business plans to road are are adds often

this advance map to our and to revenue requirements, investment customer strong In road in performance. and and focus continue leadership R&D will we KLA's on delivering market product relative growth maintaining environment, high-level meeting financial our

now. to guidance Moving

Our million. billion, is quarter expected or as is revenue is is of to XX% expected be XX%. the forecasted to $X.XX XX% segment expected Foundry/logic be memory semi $XXX follows; memory, NAND minus total approximately plus and Within and be is about guidance mix of revenue. to September to be DRAM around PC systems XX%,

the minus margin expectations consistent mix as point quarter. We gross to forecast one be and flat prior non-GAAP percentage at components product are or with XX%, plus roughly cost

of Given gross demand full for stabilizing margin environment remainder the near XXXX, we current a trend view expect our to XX%. of year calendar

measures quarterly as to million align Non-GAAP operating to expected would operating calendar our are remain structure with cost We year executed approximately the in be expenses expectations. earlier expenses expect top current $XXX cost line of an for level $XX calendar of model this assumptions for tax effective approximately and include remainder the net quarter of around XX.X%. the million, Other approximately September the income rate and year. expense other

EPS approximately plus a $X.XX EPS diluted is of to diluted fully guidance minus minus XXX based and EPS or $X.XX count diluted non-GAAP on or GAAP Finally, of plus share be shares. is $X.XX. million $X.XX expected

our and R&D transitions key In advanced customers' see bonds controls process and conclusion, prioritization to and we businesses. continue growth weakness despite technology to in persistent

that revenue and are wafer exposed reticle are investments also contributing to our performance. infrastructure We to

positioned XXXX. KLA relative versus result, for strong a remains the As performance industry in

semiconductor industry ahead, Multiple driving to business growing requiring more semiconductor in competitive road and technology multiple catalysts secular maps applications demand strong design confident dynamics growth. the time compelling, for driving stabilizing remain and and faster for industry customer and and see leading-edge long-term demand remain continue across results. investments content to investments nodes Looking long-term we are the sustainable engagement WFE that driving simultaneous supporting environment semiconductor remain challenges trends and

lowering semiconductors investment Technology reflect application across enabling value cost broader that the industry node our for for customers a transitions universe technology in and multiple end a our and markets. semiconductor-based have

strong SPTS plans. better economy continued investment support businesses well-positioned services. to KLA of driven technology our focused While financial remain portfolio in multi-year road execute facing and we performance our market maps our strategy challenges, customers' semi growth performance, innovation is global the industry semiconductor as relative and PC on and and deliver are than We by to

operating differentiation. competitive will These strategic also our implement and are drive the leadership objectives technology guiding KLA objectives outperformance. we and model our our execution, the For foundation for

customer industry-leading on success, continues excellence differentiated delivering focus innovative and financial performance, shareholders. solutions, while Our deliver flow and operational capital to to and enable returns cash us delivering consistent free to

the turn Kevin now to the I'll Q&A. over remarks. my call back concludes to That begin

Thank questions. can for Chelsea, provide you instructions you, Bren. please

Instructions] [Operator from sir. Wells Quatrochi will Fargo. Joe come question with first Yes, Our

into looking your risk some wondering you could next you're business. there was a talk is investment do How that And if there? after in cycle see strength I of about pretty you that Question. the blank wafer strong year? maybe digestion a seeing maybe

This for a year been Hey, strong Joe, thanks has the for year that. question.

We have strong there. market a very position

that's So investment the And for but China from supply. infrastructure investment good also you're global domestic in been players, provide seeing to more us. in

to according time. the equipment time wouldn't a it I cycle. to actually different invest lead to to call some tends wafers make take but to It exactly get countercyclical, silicon

customers wafer-to-wafer for requirements driving out capacity bonding that those and well. demand are to to packaging so they're related of are as the future And also to that prepare invest through other new see dealing some continuing with you hybrid there demand, incremental

expected year, do do going of year, this year, see And to I at moderation but some as then to investment. this we'll well. grow, move think, to look So we -- into next it's continue that

year. fall we'll I So will don't next while think think into I don't off lot, it see grow it a

then a Got as And it. follow-up. That's helpful.

DRAM. and I to months were kind You your upside or of relative what guys around ago, -- at to saw three expectations particularly thinking some you pretty any memory think least

wondering quarter? maybe in that Just the on could comment if what you drove

that of had the we our some across part customers, movement is, of and number but low, numbers was frankly, a So pretty overall it.

is part that us rules to ship make Chinese our in the some related shipments we other export some customers. clarification of we of expecting a additional quarter the one DRAM of And had weren't enabled some equipment to to The also there.

factor on that side. So a upside DRAM in was the the

you. Got Thank it.

you. Thank

Evercore. next from C.J. Muse with will Our question come

Yeah, afternoon. you taking first the Thank for guess I good question.

where you are? question, update us optical on can lead times And inspection

given that of Is for that set the you lines. tool something importance R&D that

levels, at should expect you think normalize elevated sustain do will that or

time? over

a for of very and the talked we Hi, demand C.J. about times. we've It's is Rick. be increasing that answer many the reasons in have couple struggled to continues output. strong And The

far through still we're So as out into next year. see we as can booked

product dealing of has seeing. So business lot The strong. we're success of the had challenges remains a with some

remain online elevated, come down will and that a to that all they'll meet if capacity hard expect take comes we'll don't to that's 'XX, actually capacity we new but come some as bit. But see bit, we Lead line. we're working little them demand, we move beyond product come down it times that through know down elevated order as see still -- going for see think that So time. of drivers but increase the I them in remain time. to little given to some I much, and you'll a

we of we're necessarily that forecast in about adoption is prices is data Gen in that talked X in automotive. pretty Gen running seeing One to in the the and didn't good Gen past nice X X addition really still we

have So good pretty we tailwinds for that. still

customers? helpful. Very grow potentially from the you your impact kind as from half? out negative how kind what business memory playing you to sequentially. are utilization semi my follow-up, you guess lower I in see see your seeing of of And that And service second comment encouraging Can

Yes. We're out utilized for capability to because very they and see with trying are people us and service the still atypical it's the a have. squeeze pleased in all yield downturn performance service, to not

for us higher seen have little had a customers or utilization a a of asking utilization. -- back of lower We from off We level level some bit. forecast to

by those And has where of higher utilization to customers specifically beginning the through leading are the what forecasted at year than our the the edge moderated logic year, leading-edge point rates have been foundry. in

about forecasted. our but an of kind been feel the has bit the And we looks Memory level what of regard, that long-term in business. we forecast very that it's services for upside. shipments, with slower So good a little

Thank you.

you. Thank Operator:

Krish Our Cowen. Sankar TD comes with from next question

open. is line Your

a been like, Hi, thanks below sales? know for expand some I close strong now, follow-up. it, you the for any your logic. example, taking and U.S. you your that? mature there [ph], have XX-nanometer the revenues the cap commentary very first to I there my nodes. -- that can control let's about there's restriction how XX, on one, chatter quantify to give maybe to of foundry goes might And at then And Is from right XX the think to XX for export obviously, say, I have XX like impact question. Rick, a to goes way is China.

not that. government what do I do or Yes, calculate will the won't on

ongoing how efforts -- very have really off to edge. their conversations try and to of obviously, We to cut the been with we've them, supportive leading figure out

we've Beyond with support that given that, we obviously, them. quantifying, that legacy. having to as the impact that's them not But business of have obviously in been conversations in China ability most terms in legacy, our of would

just last of Got -- based constrained And on as is it. that peers couple some as fabs year, like you rebounding, am to this Rick. not WFE last were follow-up, next supply is there years, of there's years, Thanks for control process it. obviously, bought it of you're already actually risk the underperform and of starts WFE? couple and that WFE Got into I some the then you years, of a that a numbers while of again going bias. chain a head we the more you equipment did were the lot as looks outperform year, couple could this wondering, technology your it

were but a see that. mentioned constrained, continue for question, we And Well, supply we've had would for for the to demand that that to optical. continue we with say reason, I prior struggle so I as a to demand we different

process that hit has customers as still true expect. control we things as we manage we our up. So wanted. just supply we We it's intensity like It chain, much wasn't that The had of our gone ramp but didn't couldn't some gaps. with got

I nodes need control, we forecasted that's greater in is and and as out more mean what EUV and by really now gets for layers, thing one clearly seeing architectures advanced more that adopted process we're there's we're and a experiencing. happen,

and is Analyst process what feel and had out how in good we of Day when play XXXX. we increased some we're Analyst control the and of go So forward technologies need we that looks forecast the across about for Day seeing talk we about splits the our all for as for

a Rick. Thank Thanks you. Very Got lot helpful. it.

Thank you.

Our Ho Bank. next Sidney question will from Deutsche with come

readiness few question year, Thank factored congrats the today, about this said Hi. offsets taking there you you which the you Is results. their good gave tools. you will fab being your foundry ago have that you logic quarter point for talked especially down that on or of peers and you for impacting offset be a already something A kind are in that EUV of the shipment out some would when WFE and also XX%, outlook should of of reiterate that that? kind

is good Yeah. adjustments the of out. to factored we something you're plans Sidney, our seeing that it's we had in a looked plans. already question. And the some ramp What as to it's

for. But of And these we so shipments into there's some some tools. that still fewer made facilities, it's already adjustments going something

some it and I it it think it does into first delays but tends filter take everybody, then feel time, progressively to usually time. tools gets eventually, those shorter lead

the So couple quarters. over here we terms of in expectations forecast the we feel provided next very of good our about

Okay. Great. That's helpful.

you give the harder of in could that China, us requirements Can speaking replace the the of you about ask others. satisfied I domestic angle. XX% clear a little China, color than bit there is a now is bit competitive self-sufficiency the little some that if a a different your of but by Thanks. little is are It's there came certain talked on level to shipments follow-up, to want this push be process I of But process big in a earlier. revenue As of to companies? control some maybe that dynamics know back

market to share started we opportunities be mean, years on several focusing legacy our Yeah, market ago. strong. I continues

most price In they older product started continue at really the to and turns. lines, we some fact, competitive be all points

So, win. trailing we to we're to feel edge, well-positioned competition while very there is able more be

And capabilities. lot of in a our the lot customers of confidence world a have around

with We've people So, capabilities. we time our again, been of compete, long feel about terms competing good out competitors there. are that to ability for in a standing

unique have we this not is in China. would So, competition that

the competitive based you offerings of we or remember, any And can have offer. region products really on to other our in portfolio are China in that

customers. of we to offer our can a So, lot solutions

even To Rick's allow of recent to manage more more which or older versions generation but tools. requirements their economic our customers tools, tools, de-configured our or some we And advanced point, we've either then restarted, across more capabilities. for

So, our that of go-to-market anywhere as in region it terms in the benefits portfolio as us much does else.

Thank very Great. much. you

you. Thank

with Chin Our comes next Stifel. from question Brian

quarter. question. like letting ask memory there. shipment and it again Hi for Thanks, a that investment Thanks in there have memory us sounds China June afternoon. the in good is hit the might general understanding reduced,

of But data Are coming or spend? for be and and some noticing process quarters if level applications for were I a anticipating DRX beer DRAM in will of kind high-density towards to intensity AI activity more outperformance that DRAM applications. you higher assume your of for center control that

Look introduction that, the for the process control over for the more reticle particularly levels, DRAM, of us to around years. advanced EUV, of facility. infrastructure it's driven of medical intensity there's That's of particularly and and quality introduction last intensity the the driver support been higher couple with

half uptick expecting that customer And And see. continue Chinese would additional be that, expect some so we'll DRAM see I'm memory There business the business customers. of from I not will in the in to an the from year. second to

Rick start improve cash we're and rates to not earlier, utilization see in I to customers and really profitability a investments. meaningful until said don't their create any going so pricing But think overall improvement, we're think memory, seeing I changes as our in flow,

market. driver biggest of in going will we the be have. as contributions always node we Now development process that from the to participate that's And

Obviously, nodes leading more capacity and Okay. capital cyclical your in but And of be any just broader conversations some differently? there's to a deploy a it how at might maybe this Got foundries underutilization That's in just detect support them, advanced they changes then might of question. advanced nodes in helpful. with follow-up it. elect phenomena, multiple the

I going reports down. their mean seen the they've down. for for on slowed I forecast and heard WFE sure, we've investment in mean,

think that's been I So, one. the main

the that earlier back utilization a encouraging, mentioned was few had we rates just what months forecasted creep in What that are this from as at we leading indicators call, are up ago. looking I

The heavy seeing a we're starts. of still is design other thing number

through. filter that a so portend and And those so anticipate a a we at large of strong takes it will out course, the designs number the to -- advanced business still for while But for road. of down very

the -- You slowdown can't think this environment, dynamics. timing but pick to terms their investment but is the fundamental not overall in I that of business the related

as think I the good we that behind next quarters, is pretty get as us. few

Okay. you, helpful. Thank That's

Thank you.

Tim comes Arcuri with next Our question from UBS.

book-to-bill Thanks was is think side still about Bren. how us sitting much tell obligation give the of on? is I I last purchase months $XX you And can also, Can XX lot. then down came billion you lessened. it number? it smidge quarter. and a assume out a

details our over little file it or through was when about specific here million a the another down will K $XXX we in come week But so. to So quarter quarter.

than book-to-bill activity was terms in a little So see orders. new We still less some one. of

obviously the very levels backlog So are elevated.

the window. $XXX XX is XX% per month XX.X for been down. of the come between to XX% coming beyond that still months seems last quarter It's it's so few billion delivered beyond around but like It So overall. the right And it. XX and quarters, it's million or down close

should It maybe the that. for pretty because up be said you before December, then, flat. from And about XX Bren, just year. for sounds process would Thanks for down like the you shipments EPC are about, soft smidge, EPC Cool. system guide be like a had looks that control know, it

guess And of right? that that shipments that the depended had said is call maybe couple last you was I that process projects. a in December control So part on

So on what's and the, in what of you December? takes know, shipments like sort control are puts process

that but across get that's plus some a see can be our plus business drive certainly remarks, we the meet want obviously given the consistent ASPs, the the businesses. the not each with the $XX And certain don't forward, have or across prepared specific trying targets and of we integers guiding or numbers course, on or generally and I to December, deliver million stabilizing $XX segments. Yeah, overall of moving rate minus, to to of minus overall of we million to necessarily

and a today. pick It's it it we always good time. on That year, as service. consumer, of like a but base and service more closer it it when indicator it's continues potentially the could time bit up see, the We'll and so a quarter has markets the just as PC recover in from see will to little short closer weakened part to the to -- to grow levels I'd being like grow not perhaps be given optimistic. so consumer said, recover end bit to semi grow continues a decent to lead generally volatile, its earlier install we get over should so like because be than I'd current growth modeling it's sooner EPC capacity-centric. see we indicator little it each It's of it. it see so

a -- into again, point guidance And generally to then think, is, flows be the of I result back PC, quarter-on-quarter. somewhat with consistent September, flat as relatively it with so which quarter through June semi will

see Yes, We'll that the Could play to closely numbers of goes end how some how those skew bit there are work so December see we'll as the projects just in year. at have out. those a customers. into to deliveries we of terms and cause with the

choice the depending on that's the if see because an of one important potentially see couple stabilizing to how generally overall maybe here higher. just number next was you -- a about business time be word the quarters. frame. we over quarter over it little think We couple so And bit cause of a could But the that, – of the that

lot. Great, a Thanks Bren.

Harlan, JPMorgan. Instructions] off [Operator you. will Thank next sure Sur Our please question you're Harlan make mute. from with come

Yes.

a follow-up to Thanks afternoon. on Maybe Sorry taking Tim's my question. about Good question. that. for

was of XX%. right, for mid-teens, down down which kind was control view process relative WFE, be to to roughly prior Your

better Now June also remainder XX% only for the quarter XX% the stabilize year to franchise going the of It to full process your control and calendar down looks the process that control flat results is for if June actually quarter. after I be year. line like the

even So WFE. better outperformance versus

inspection, dynamics. or other are strong driving product better outlook segments control? wafer Like their You what the for implied process not mentioned

Yes. Yes, your math consistent. is

yes, being So also assuming out, quarter about as way the that will today. through We a it obviously, we overall business driver, optical their how that's the strong much wafer play comes December talked the expect inspection, as is declining a reticle isn't market. inspection

we've seen -- those So in so areas. strength

there. So mostly it's

is percent Look, memory. and there tends happening given the of process in control to higher it the investment obviously, be that's is than logic foundry, in

So that the nice to towards provide KLA. within of a tailwind dynamics terms playing WFE in tends

we good about as in drivers. the terms obviously, on products so the a big overall, percent it's total. spend talked of are And the of But percent our products

seeing have coleus you strongly, quite Advanced picking accelerated by end driven guys by being compute up configuration. packaging, workloads applications? is demand like solutions And HBM, the all right, for segment is for year Are the demand compute that advanced offset this packaging somewhat all accelerated growing these your those the all markets. AI-accelerated pick to you of consumer-focused I or sort packaging some more team, compute of [ph] Intel, supplying them. the of the TSMC, for that. [ph] appreciate up demand guys, you memory AI, saturate, right, No, X.X multichips

off quite that's ton haven't It's bright And a as uptick. seen but spots got number. fairly of observation. our increase. small small seen number There good a bit, – a customers, and a we that an percent. small one, have been It's relatively yes, a an at with has happened We've but recently. of Harlan,

we've finding seen of accelerated orders done, EPC semi to seen some absolutely, EPC, products know, we we that. it, with absolutely and control some as the have see and some you we've work it process that tied and directly So we've for

that. we're seeing an So uptick in

if or the market we company, flattish XX% we're recent so. some Yes, right with the at packaging our you talked look overall drivers XX% the of recurring to related the had business are upside year-to-year. But now. about AI to down of Rick that some seeing it's packaging within pretty

good package also a as the moves it's story but process process control. forward So across more and into moving complexity evolving

Perfect. Thank you.

you. Thank

will question Atif come next Our from with Malik Citi.

for Hi, weeks I ago, year? I suppliers, the thank spoke nodes major product EV a And leading edge investments. to could when next the than on Semicon my taking at a there logic question year? have At were question. into we intensity couple is, of could West like be from major assume help you offset edge less a expectations leading-edge spending you exposure question any cycles mature x-ray to there on process leading is higher next perhaps My leading versus auto, nodes. which or for are or mature or control contribution up investments areas your

Sure.

reticle we're you have some control process as demand. critical products we leading still mind and supply cannot for even products. cannot to meet of one apply to that keep think on is most -- optical thing the still in some limited KLA, just I our the We edge, such the that of

sustained governor in to being business there on even natural a keep that able the of have several we think current terms the over based quarters I in So booking environment. next

that's think factor. I one So

And then in people the lot new a moving there see, the of with edge leading R&D transistor other architectures is architectures, being next-generation the out we still for demand to especially are phase. the that the and

see. is feel who on So primarily one much we for about positioned capacity than focused so good how we that we're pretty

Thank Good. you.

further queue And are time. [Operator no in Instructions] at Thank the you. there this questions

additional remarks. I like Kessel So would to for turn or any the over back closing Kevin to floor

it's their very much, accommodate very season, try their Chelsea, could. to interest order later I for also wanted and much this everyone it's again as in we you and and call Thank a earnings day, busy thank very to and We a busy to was time. know as a

So you we to look in of to ahead. all forward weeks speaking the

And with final for that, any I'll turn it back to remarks. Chelsea

have a ladies webcast. you, XXXX quarter disconnect wonderful the Corporation your at and day. KLA Please earnings call and gentlemen. concludes line Thank time, This and second this