Financial Data and Key Metrics Changes - Nova achieved record revenue of $220 million in Q2 2025, reflecting a 3% increase quarter-over-quarter and a 40% increase year-over-year [14][4] - Blended gross margins were 58% on a GAAP basis and 60% on a non-GAAP basis, attributed to a favorable product mix [16][14] - Operating margins reached 30% on a GAAP basis and 34% on a non-GAAP basis, surpassing the target model range [17][14] - Earnings per share were $2.14 on a GAAP basis and $2.20 on a non-GAAP basis, marking the seventh consecutive quarter of record performance [17][14] - The company ended the quarter with $856 million in cash and cash equivalents, with free cash flow of $43 million [18][14] Business Line Data and Key Metrics Changes - The chemical metrology division and service business achieved record revenues, contributing significantly to overall performance [5][4] - Service revenue grew 7% sequentially and 31% year-over-year, marking ten consecutive quarters of revenue increase [11][4] - Product revenue distribution was approximately 75% from logic and foundry and 25% from memory, indicating a well-balanced market reach [15][14] Market Data and Key Metrics Changes - Nova is well-positioned in the memory market, particularly in DRAM and high bandwidth memory, with recent wins expanding market share [10][4] - The company noted a growing demand for advanced packaging solutions, which is driving investment in metrology capabilities [8][4] - China is expected to see moderate year-over-year revenue growth, with a slight skew towards the first half of the year [41][40] Company Strategy and Development Direction - Nova's strategy focuses on capitalizing on technological transitions and improving yield and productivity through a diversified business model [5][6] - The company aims to achieve $500 million in cumulative Gate All Around revenue by 2026, with strong demand anticipated in the second half of the year [22][21] - Nova continues to invest in expanding its product portfolio to align with customer needs and market trends [12][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on emerging opportunities in a rapidly evolving industry [6][5] - The impact of newly implemented tariffs on gross margins is now estimated to be closer to 20 basis points, a more favorable outcome than initially anticipated [19][14] - The company remains committed to executing its strategic plan, which guides long-term priorities and investments [12][4] Other Important Information - Nova's recent performance validates the alignment of its strategic direction with market demands, reinforcing its position as a trusted partner [8][4] - The company is actively participating in industry events, such as SemiCon West, to engage with stakeholders [12][4] Q&A Session Summary Question: How did aggregate all around sales appear in June and what trajectory is expected for the second half? - Management indicated strong positioning across all four Gate All Around customers and expressed excitement about the opportunity, expecting stability in the second half [22][21] Question: What drove the strong gross margins in Q2? - The strong results were attributed to a favorable product mix rather than solely the chemical metrology business, with marginal impact from tariffs [25][24] Question: Can you discuss the momentum in the Centronics business? - Management expressed optimism about the integration of Sintronics and its potential for growth, highlighting encouraging signs of adoption [29][28] Question: What is the outlook for the dimensional metrology business? - Management noted strong momentum and leadership in integrated metrology, with market share gains in standalone OCD [46][45] Question: How is the company positioned in the HBM market? - HBM is expected to grow and is projected to account for a higher percentage of the advanced packaging business, which is a new market for Nova [40][39] Question: What are the dynamics in the China market compared to other regions? - Management noted different dynamics in China, with a forecast for moderate growth year-over-year, while other regions may see varied performance [41][40]