Financial Data and Key Metrics Changes - In 2025, the company achieved record annual revenue of $880.6 million, representing a 31% year-over-year increase, with earnings per share growing 29% year-over-year [4][20] - Fourth quarter revenue reached $222.6 million, up 14% year-over-year, exceeding the guidance midpoint [5][17] - Blended gross margins for the fourth quarter were 57.6% on a GAAP basis and 59.6% on a non-GAAP basis, attributed to a favorable product mix [18] - Operating margins for the fourth quarter were 27% on a GAAP basis and 32% on a non-GAAP basis [19] - The company ended 2025 with over $1.6 billion in cash and generated $218 million in free cash flow [22] Business Line Data and Key Metrics Changes - Product revenue distribution in the fourth quarter was approximately 75% from logic and foundry, and 25% from memory [17] - Advanced packaging revenue rose more than 60% year-over-year, contributing approximately 20% of product revenue [10] - The services organization delivered record quarterly and annual revenues, driven by capacity installation and adoption of value-added services [9] Market Data and Key Metrics Changes - Geographic revenue split for 2025 was as follows: China 33%, Taiwan 29%, Korea 16%, US 9%, and other territories 13% [21] - The company anticipates China to continue representing around 30% of sales, despite a decrease in its proportion from 39% in 2024 [46] Company Strategy and Development Direction - The company is focused on expanding leadership in advanced nodes, proliferating materials metrology platforms, and scaling operations to meet increasing customer requirements [14][15] - Investments in R&D exceeded 15% of revenues, aimed at sustaining outperformance and advancing innovation [20] - The company is enhancing its operational foundation with a new ERP system and expanding manufacturing capacity in Asia [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market environment for 2026, expecting positive momentum and growth driven by advanced logic, DRAM, and advanced packaging [13][14] - The company anticipates another growth year with momentum expected to build through the first half and accelerate in the second half of 2026 [14] - Management noted that lead times have increased, impacting visibility, but operational agility is being improved to accommodate anticipated growth [67] Other Important Information - The company is well-positioned to capitalize on opportunities in the emerging silicon photonics segment, which requires precise metrology [7] - The company has secured multiple strategic qualifications across leading global manufacturers, reinforcing its position as a trusted partner [11] Q&A Session Summary Question: Can you talk about your guidance for the year and WFE outlook? - Management anticipates low double-digit growth in WFE and expects the second half of 2026 to accelerate [26][27] Question: Do you have any bottlenecks in production to meet demand? - Significant investments have been made to expand manufacturing capacity, ensuring sufficient support for growth outlook [28] Question: How have customer conversations evolved over the past three months? - Management sees advanced logic and Gate-All-Around as primary growth drivers, with increased capital investments from customers [32][34] Question: What is your view on the business between DRAM and Foundry and Logic? - Significant growth is expected from advanced logic and DRAM, with advanced packaging also contributing [42] Question: How do you view the market in China? - China is expected to maintain around 30% of sales, with steady investments anticipated despite a decrease in its proportion [46][61] Question: Is memory pricing impacting your gross margin? - Management does not see a correlation between memory pricing and gross margin [64]

Financial Data and Key Metrics Changes - In 2025, the company achieved record annual revenue of $880.6 million, representing a 31% year-over-year increase, with earnings per share growing 29% year-over-year [3][14] - Fourth quarter revenue reached $222.6 million, up 14% year-over-year, exceeding the guidance midpoint [3][12] - Blended gross margins for the fourth quarter were 57.6% on a GAAP basis and 59.6% on a non-GAAP basis, attributed to a favorable product mix [12][13] - Operating margins for the year were 29% on a GAAP basis and 33% on a non-GAAP basis, indicating strong operational execution [15] Business Line Data and Key Metrics Changes - Advanced packaging revenue rose more than 60% year-over-year, contributing approximately 20% of product revenue [8] - In the memory segment, record results were driven primarily by DRAM applications, with significant adoption of materials and chemical metrology offerings [8] - The company established itself as a foundational partner in Gate-All-Around processes, expecting further demand increase in 2026 [8] Market Data and Key Metrics Changes - Geographic revenue split for 2025: China 33%, Taiwan 29%, Korea 16%, US 9%, and other territories 13% [15] - The company anticipates that China will continue to represent around 30% of sales, despite a decrease in its relative portion due to a focus on mature nodes [40][41] Company Strategy and Development Direction - The company is focused on expanding leadership in advanced nodes, proliferating materials metrology platforms, and scaling operations to meet increasing customer requirements [10][11] - Investments in R&D exceeded 15% of revenues, aimed at advancing innovation and sustaining outperformance [14][15] - The company is enhancing its operational foundation with a new ERP system and expanding manufacturing capacity in Asia [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market environment for 2026, with favorable trends across logic, advanced packaging, and memory applications [10] - The company expects positive momentum to continue, with order patterns indicating another growth year [10][17] - Management noted that significant investments have been made to expand manufacturing capacity to support anticipated growth [23] Other Important Information - The company generated $218 million in free cash flow during 2025 and ended the year with over $1.6 billion in cash and equivalents [16] - The effective tax rate for the fourth quarter was approximately 11% on a GAAP basis, reflecting the release of uncertain tax positions [13] Q&A Session Summary Question: Guidance for the year and WFE outlook - Management indicated that they expect to outperform the WFE outlook, anticipating low double-digit growth based on current data [19][21] Question: Production bottlenecks - Management confirmed that significant investments have been made to expand manufacturing capacity, ensuring they can meet demand without bottlenecks [23] Question: Customer conversations and order trends - Management noted that customer conversations have evolved positively, with increased capital investments expected to translate into orders [27][28] Question: Share dynamics in dimensional metrology - The company reported a 25% increase in market share for CD and film, becoming the second in market share according to Gartner [30] Question: Growth expectations for DRAM and Foundry - Management expects significant growth from advanced logic and DRAM, with advanced packaging also contributing positively [37] Question: China market outlook - Management anticipates that China will maintain around 30% of sales, with steady investments expected despite a focus on mature nodes [40][41] Question: Lead times and optical component constraints - Management acknowledged increased pressure on lead times but emphasized operational agility to accommodate growth [64]