Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide details on the revenue and breakeven expectations for Tignis, the newly acquired AI process control company? A: Tignis generated less than $1 million in revenue last year and is expected to remain around that level in 2025. We anticipate healthy growth rates over the next few years, but it will take some time to reach the breakeven point. (Jeffrey Jones, CFO)
Q: What is the expected revenue impact from new business drivers like high-bandwidth memory (HBM) and silicon carbide in 2025? A: We anticipate approximately $7 million from HBM and $5 million from silicon carbide, totaling around $12 million. Additionally, software, including Tignis and DI-Core, is expected to contribute about $13 million. Overall, these new drivers could add $25 million to $30 million in incremental revenue this year. (Luis Muller, CEO)
Q: How should we think about the gross margin for these new business drivers in 2025? A: The gross margin for these new business drivers is expected to be in the high-40s, potentially growing to 50% as the software segment expands. (Jeffrey Jones, CFO)
Q: What is the outlook for the Automotive and Industrial (A&I) segment utilization levels? A: The A&I segment is currently at a high plateau but still undergoing inventory correction. Some customers indicate another two to three quarters of digestion. We expect some dynamics in the Mobile segment to drive incremental business starting mid-year. (Luis Muller, CEO)
Q: How stable is the $60 million run rate for services and spares recurring revenue amid industry inventory control and fab utilization cuts? A: The recurring revenue has proven stable historically, with about a third of the volatility of systems revenue. We expect it to remain steady despite the downturn. (Jeffrey Jones, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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