ACM Research(ACMR) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $172 million, an increase of 13$157 million, down 36% year-over-year, attributed to strong demand in Q1 2024 [12][27] - Gross margin was 48.2%, exceeding the target range of 42% to 48% [13][28] - Net cash increased to $271 million from$259 million at the end of 2024 [13][30] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning tools grew 18%, representing 75% of total revenue [14] - Revenue from ECP, furnace, and other technologies grew 7%, accounting for 16% of total revenue [15] - Revenue from advanced packaging, excluding ECP, was down 10.5%, representing 9% of total revenue [18] Market Data and Key Metrics Changes - In China, the company estimates its market share in wafer cleaning and plating exceeded 25%, translating to over 9% globally for each category [7] - The company is expanding its business into the global market, particularly in the U.S. with investments in an Oregon facility [10][11] Company Strategy and Development Direction - The company aims to develop world-class tools and establish R&D and production in key countries to mitigate tariff uncertainties [8][10] - The long-term revenue target is set at $3 billion, with equal contributions expected from China and the global market [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the shifting global trade environment and emphasized the importance of their established strategy [8] - The company maintains its 2025 revenue outlook in the range of$850 million to $950 million, implying a 15$3 billion [22] Q&A Session Summary Question: Shipment figures and full-year growth expectations - Management expects shipments to grow in 2025 compared to last year, but the growth rate may not exceed last year's high levels [36][37] Question: Impact of tariffs on profitability - Management indicated that tariffs on U.S. imports do not significantly impact the company, as they are sourcing more parts locally and from third countries [44] Question: Thoughts on 2026 market growth and competition - Management believes that while the market may plateau, they will continue to gain market share due to innovative products and strong customer demand [48][50] - The company is confident in its technology leadership and IP protection, which differentiates it from local competitors [56][58]