Earnings call transcript: ACM Research Q4 2024 beats EPS forecast

ACM Research Inc . (NASDAQ:ACMR) reported its fourth-quarter 2024 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.56, compared to a forecast of $0.3357. This performance fueled a premarket stock surge of 18.79%, with shares reaching $27.25. The company also reported revenue of $223.5 million for the quarter, exceeding the forecast of $181.08 million. According to InvestingPro analysis, ACMR currently appears undervalued based on its Fair Value assessment, with the stock demonstrating strong financial health metrics and maintaining more cash than debt on its balance sheet.

Key Takeaways

• ACM Research’s Q4 2024 EPS of $0.56 exceeded forecasts by 66.8%.
• Revenue for the quarter was $223.5 million, a 31.2% year-over-year increase.
• Premarket trading saw ACMR shares rise by 18.79% following the earnings announcement.
• The company projects 2025 revenue of $850-950 million, reflecting 15% year-over-year growth.

Company Performance

ACM Research demonstrated robust performance in Q4 2024, with revenue increasing by 31.2% year-over-year to $223.5 million. The company’s full-year revenue reached $782.1 million, marking a 40.2% increase from the previous year. This growth outpaced the global semiconductor wafer fab equipment (WFE) market, which grew by 4% in 2024. ACM Research’s cleaning product segment was a significant contributor, with a 43% revenue increase. InvestingPro data reveals a strong 5-year revenue CAGR of 50%, with analysts anticipating continued sales growth in the current year. The company maintains a healthy gross profit margin of 49.4%.

Financial Highlights

• Revenue: $223.5 million in Q4, up 31.2% year-over-year.
• Earnings per share: $0.56 in Q4, compared to $0.3357 forecast.
• Gross Margin: 49.8% in Q4, 50.4% for the full year.
• Net Income: $37.7 million in Q4, totaling $152.2 million for 2024.
• Cash and Deposits: $441.9 million at year-end.

Earnings vs. Forecast

ACM Research’s EPS of $0.56 significantly exceeded the forecasted $0.3357, a positive surprise of 66.8%. Revenue also surpassed expectations, coming in at $223.5 million against the projected $181.08 million. This strong performance indicates a favorable deviation from the company’s historical earnings trends.

Market Reaction

Following the earnings announcement, ACMR’s stock experienced a substantial premarket increase of 18.79%, with shares priced at $27.25. This surge reflects investor confidence in the company’s ability to exceed market expectations, despite a recent close of $22.94, which was 2.34% below the previous day. InvestingPro metrics show the stock’s beta of 1.57 indicates higher volatility than the market, with a notable YTD return of 51.92%. Subscribers can access 12 additional ProTips and comprehensive valuation metrics through the Pro Research Report.

Outlook & Guidance

For 2025, ACM Research forecasts revenue between $850 million and $950 million, representing a 15% year-over-year growth. The company aims for a gross margin of 42-48% and expects capital expenditures of $65-75 million. Trading at a P/E ratio of 15.75 and maintaining a strong current ratio of 2.37, ACMR demonstrates solid financial fundamentals. Discover deeper insights and comprehensive analysis with InvestingPro’s exclusive research reports, covering over 1,400 US stocks with expert analysis and actionable intelligence. ACM Research plans to focus on expanding its product offerings and localizing its supply chain to mitigate potential impacts from U.S. export restrictions.

Executive Commentary

CEO David Wong emphasized the company’s strategic positioning, stating, "We believe the combination of ACM world-class technology and customer support positions us uniquely as a global WFE supplier." He highlighted the company’s innovation in cleaning and electroplating technologies, which address evolving semiconductor manufacturing needs.

Risks and Challenges

• U.S. export controls could impact ACM Research’s customer base and supply chain.
• The semiconductor market’s cyclicality may affect future demand.
• Competition in the WFE sector remains intense, posing challenges for market share expansion.
• Economic uncertainties could influence capital spending by key customers.

Q&A

During the earnings call, analysts inquired about the impact of U.S. export controls and the company’s market share in plating technologies. Management expressed confidence in maintaining strong visibility through Q3 2025 and highlighted their estimated 30-35% market share in China’s plating segment.

Full transcript - Acm Research Inc (ACMR) Q4 2024:

Conference Operator: day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Fiscal Fourth Quarter and Fiscal Year twenty twenty four Earnings Conference Call. Currently, all participants are in a listen only mode. Later, we will conduct a question and answer session.

Instructions will be provided at that time. As a reminder, we are recording today’s call. If you have any objections, you may disconnect at this time. Now, I will now turn the call to Mr. Steven Plaio, Managing Director of The Blueshirt Group.

Steven, please go ahead.

Steven Plaio, Managing Director, The Blueshirt Group, The Blueshirt Group: Great. Good day, everyone. Thank you for joining us to discuss fourth quarter and fiscal year twenty twenty four results, which we released before The U. S. Market opened today.

The release is available on our website as well as from Newswire services. There is also a supplemental slide deck posted to the Investors section of our website that we will reference during our prepared remarks. On the call with me today are our CEO, David Wong our CFO, Mark McKechnie and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to Slide two. Let me remind you that remarks made during this call may include predictions, estimates or other information that might be considered forward looking.

These forward looking statements represent ACM’s current judgment. They also undertake the risks of these circumstances as possible to resolve this material. Those risks are described under Risk Factors and elsewhere in ACM’s filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward looking statements, which reflect ACM’s opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward looking statements.

Certain of the financial results that we provide on this call will be on a non GAAP basis, which excludes stock based compensation and an unrealized gain and loss on short term investments. For our GAAP results and reconciliations between GAAP and non GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website and the slides fourteen and fifteen. Also, unless otherwise noted, the following figures refer to the fourth quarter and full year of 2024 and comparisons are with the fourth quarter and full year of 2023. With that, I’ll now turn the call over to David Wong. David?

David Wong, CEO, ACM Research: Thanks, Steven. Hello, everyone, and welcome to ACM Research fourth quarter and fiscal year twenty twenty four earnings conference call. Before I review the results, I will address recent regulatory update from U. S. Government.

On December 2, the U. S. Department of Commerce added 140 company to its entity list. Two of our subsidiary, ACM Shanghai and ACM Korea, and other entity under their structure were added to the entity list. As we have noted, we are one of many that were added and we are not notified of any specific wrongdoing.

To be clear, ACM Research Inc, a U. S. Company we were founded in California in 1998. It is our subsidiary that were added to the analyst and not ACM Research Inc. Moving on, regarding the operation of ACM Shanghai in Mainland China, the new regulation will make it difficult, if not impossible, to ACM Shanghai to obtain components from The U.

S. On that note, we have been working to localize our supply chain for some time. Events over the past few years, including The U. S. Restriction of 2022, have made it even more important for ACM Shanghai to localize in the supply chain.

Thus, we have reduced our U. S. Source components to just a small subset. And with our status on the anti list, we are working quickly to complete the transition. Bottom line, we remain committed to support our customers and comply with all global regulations.

We think the impact to our production is manageable and we do not expect a significant interruption of our business. Regarding our global customer outside of Mainland China, the new Department of Commerce rule mainly restricted U. S. Exports to ACM Shanghai and ACM Korea. They do not directly affect The U.

S. Company buying two autonomous. We are therefore confident we can continue our effort to expand our business to global customers. Now, on to our business results. Please turn to Slide three.

I’m pleased with our fourth quarter results, which capped with a strong year. For the fourth quarter of twenty twenty four, we delivered $223,000,000 in revenue up 31%. For the 2024 fiscal year, we delivered $782,000,000 in revenue up 40%. Gross margin was $49,800,000 for the fourth quarter and 50.4% for the full year. Operating profit increased 46% in the fourth quarter and 63% for the full year.

We ended the year with $259,000,000 of net cash and time deposits, compared to the $212,000,000 at end of twenty twenty three. For shipments, shipments for the fourth quarter was $264,000,000 up 88%. Shipments for the full year were $973,000,000 up 63%. We believe this strong growth reflects ACM expanding market presence and the momentum gained from the new product cycle. Now, I will discuss the key growth drivers, both for the market and specific to ACM Research.

Turn to Slide four for our product, Sam. We now estimate our product portfolio address 18,000,000,000 global market opportunity. Our current business is primarily driven by three major product groups cleaning, plating and the bronze packaging. We anticipate continued growth in this category and look to incremental revenue contribution from our newer products, starting with Tahoe, SBM, furnace, followed by truck and PCVD. Third party sources estimate that global semiconductor WFE grew by 4% in 2024 to RMB107 billion.

Based on this global WFE, we now estimate that our product address a server than available market or same of about $18,000,000,000 in total. For Mainland China WFE Industry Analysts estimate the market growth by 12% to 38,000,000,000 Our growth rate 40% revenue and 63% shipment was much higher than China WFE growth. We attribute our strength to market share gain from the current product, new product cycle and the new customer. We also had a good execution from our production and service teams. Our success starts with our customer.

Please turn to slide six. For 2024, we had four customers that individually accounted for 10% or more of their revenue. The Huahong Group was our top customer at 15% of the sales. SMIC was second at 14%. And 1MTC and TXW were third and fourth at 12%.

Now, I will provide the detail on product. Please send to Slide seven. Revenue from single wafer cleaning, tonnehole and semi critical cleaning product grew 43% in 2024 and represent 74% of total revenue. Our growth was driven by a significant increase in Ultra C B backside cleaning tool and good growth from our SAF T bolt tools. We also had a contribution from our Tahoe and the Bevel Attry tools.

Looking ahead, in cleaning, we expect to see several significant product cycles, including high temperature SBM Tahoe and other tools from continued growth in The Mainland China. We offer a comprehensive top to bottom cleaning portfolio. We estimate the global total available market or TEN for the cleaning is close to $6,500,000,000 and our product support more than 90% of our cleaning process steps. If we take $6,500,000,000 10 and ACM five seventy nine million dollars in cleaning revenue for 2024, it puts ACM global market share of cleaning at about 9%. We believe that our completed portfolio of cleaning tools, including SAPS, TBO, Tahoe, semi critical, SBM, double etcher and other put us in a strong position to take more share in China and the global market.

Revenue from ECP, furnace and other technology grew 46% in 2024 and represented 90% of the total revenue. In the fourth quarter, the segment achieved a record quarterly revenue of more than $50,000,000 which contributed to more than $2,015,000,000 dollars for the year. We continue to see momentum for our plating tool for both front end and back end application. We are excited about the initial response to our new horizontal plating tool for panel level packaging, where we believe our unique approach is opening door to more global customers. In Q4, we announced that our thermal and plasma enhanced ARD furnace tool have achieved further qualification at its two mainland China semiconductor customers.

Chipmakers are increasingly relying on the position of the high quality ultra thin film with excellent step coverage. We believe ACM’s proprietary ALD furnace design are different differentiate from the earlier supplier and enable us to address challenging facing the advanced three d structure manufacturing. Our furnace product cycle is also gaining traction with both memory and logic customers. Overall, we had 17 furnace customers in 2024, up from nine at the end of twenty twenty three. We expect the revenue continued contribution from furnace to accelerator in 2025 versus small amount for 2024.

Revenue from advanced packaging, which excludes ECP but includes service and spare parts, grew 3% in 2024 and represented 7% of revenue. This category including a range of packaging tools, including coater, developer, scrubber, field stripper and wet hatcher and also service and spare parts. We believe ACM is one of the only company that offer a full set of wet tools, cover plating tool and the polish tool for advanced packaging. We had a new notable development for this category in 2024, including orders for the four wafer level packaging tools, which are on track to ship to USA in The First Half Of Twenty Twenty Five. And we announced three panel level packaging tools, including vacuum flux cleaning tool for chiplet, horizontal plating tool and the bevel edge tool, which we see as essentially especially relevant for packaging of GPU and high bandwidth memory HDF.

We are making good progress with our new track and the GZVD platform. Both of these products come with the ACM innovation innovative and differentiated platform design and allow for process flexibility and high throughput. We have a solid list of ongoing demonstration and evaluation for both TRAC and the DCVD. For TRAC, we plan to deliver our three millimeter WTH inline cable beta tool in the middle of twenty twenty five. We expect some initial revenue contribution in later twenty twenty five with more in 2026 and beyond.

Next (LON:NXT), let me provide an update on our production facility. First, on Lingang, please turn to Slide eight. In the fourth quarter of twenty twenty four, we had grand opening ceremonies for our Lingang production and R and D center. I’m pleased to report that we have begun initial operation and expect site to play a key role in production development and efficient high volume manufacturing. We expect most of our production to shift from our Changsha leased facility to our company owned Ding Dong facility by the end of Q2.

We are proud of our 2,300 square meter plus 100 clean rooms, which we expect will accelerate our product development speed and the in house demonstration capability. Next, our Oregon facility. Please turn to Slide nine. In October 2024, we completed the purchasing of our new 40,000 square foot Oregon facility. It includes a 5,200 square foot cleaning room, which will support advanced tour demonstration and R and D.

The rest of this space will be for manufacturing for our global customers. We see this as a great opportunity to further expand our customer base in The U. S. Before I review our other, I want to share some thoughts regarding our ownership in ACM Shanghai as a stock. We are very pleased by the success of ACM Shanghai team, which has now become a key supplier to the Asia semiconductor industry.

ACM Shanghai has also proven to be a greater source of capital to us in the form of dividends. In 2023 and 2024, as a major shareholder of ACIM Shanghai, we received dividend net of tax of $19,200,000 and $28,500,000 respectively, and we expect the dividend to continue. In fact, ACM Shanghai has formally announced its intention to pay a dividend of 25% to 30% of net earnings over the next three years, subject to normal shareholder approval. We are using dividend to accelerate our global business development. SM Shanghai stock, which is now treated at $6,300,000,000 market cap on the Shanghai stock market, It is also a key strategic asset for us and our global shareholders.

In fact, our 81.5% ownership is now worth about the $5,200,000,000 which is more than three times ACMR’s current market cap of $1,500,000,000 This gives us some unique advantage. In 2021, ACM Shanghai had raised $575,000,000 in IPO, enabling us to scale our business and expand our product portfolio. Asim Shanghai is now in the process of another raising of up to US600 million dollars to make the company to the next level. I will clarify a few points that might be helpful for the market to evaluate our options. Our three year lockup on our ACM Shanghai stock expired last quarter and we now have additional flexibility to sell shares.

We are very comfortable that ACM can sell some share of ACM Shanghai stock and repatriate the cash back to U. S. The timing of any sale, of course, would depend on pricing, market condition and our own cash needs and other factors. We believe the combination of ACM world class technology and customer supporting and access to their substantial capital market make us unique position to become a world class global WFC supplier. Now, I will provide our outlook for the full year 2025.

Please turn to slide 10. In early January, we introduced our 2025 revenue outlook in the range of $850,000,000 to $950,000,000 This implies 15% of year over year growth at the midpoint. We are reiterating this outlook today. I’m pleased to announce today that we have adjusted our gross margin target upward. We now target a range of 42 to 48% versus the prior range of 40% to 45%.

I’m proud of the strong growth our company has achieved since our foundation of sale of funding in California in 1998 and the establishment of ACM Shanghai in 02/2005. We have built their global competitive business. Our success has been built on innovation and deflation technology, particularly in cleaning and electroplating, addressing evolving needs of semiconductor manufacturing. From this foundation, we have expanded our market reach and gained international traction. We are building strong partnership with a key industrial player.

In China, ACM is recognized as a leader in advanced wafer cleaning and the front end electroplating solution and is preparing for new product ramp in the furnace, track and the pCVD. Outside China, we are engaging with multiple customers with operation in U. S, Europe and Korea, Taiwan and Singapore. The global interest is a broader base across our entire product portfolio from the front end wafer fab to the back end advanced packaging, including our innovative cleaning and plating offering for next generation panel level packaging. Now, let me turn the call over to the CFO, Mark, who will review detail of our fourth quarter results.

Mark, please.

Mark McKechnie, CFO, ACM Research: Thank you, David. Good day, everyone. Please turn to Slide 11. Unless I note otherwise, I will refer to non GAAP financial measures, which exclude stock based compensation, unrealized gainloss on short term investments. Reconciliation of these non GAAP measures to comparable GAAP measures is included in our earnings release.

Also unless otherwise noted, the following figures refer to the fourth quarter and full year of 2024 comparisons are with the fourth quarter and full year of 2023. I’ll now provide financial highlights. Revenue was $223,500,000 for the fourth quarter, up 31.2%. For the full year 2024, revenue was $782,100,000 up 40.2%. Revenue for single wafer cleaning Tahoe and semi critical cleaning was $155,200,000 up 26.9%.

For the full year 2024, this category grew by 43.3%. Revenue for ECP, Fronted Packaging (NYSE:PKG), Furnace and Other Technologies is $51,700,000 up 60.9%. For the full year 2024, this category grew by 46.2%. And revenue for Advanced Packaging, excluding HEP, Services and Spares, was $16,600,000 up 4.2%. For the full year 2024, this category grew by 3.3%.

Total (EPA:TTEF) shipments were $264,000,000 for the fourth quarter versus $140,000,000 in Q4 of twenty twenty three. For the full year 2024, shipments were $973,000,000 up 63.1. Gross margin was 49.8% for the fourth quarter versus 46.8%. For the full year 2024, gross margin was 50.4% versus 49.8% in 2023. We have updated our long term business model to a gross margin target range of 42% to 48% versus the prior range of 40% to 45%.

We do expect our gross margin to vary from period to period due to a variety of factors such as sales volume, product mix and currency impacts. Operating expenses were $58,400,000 for the fourth quarter, up 34%. For the full year 2024, operating expenses were $193,400,000 up 25.2%. Revenue grew faster than OpEx for the year, demonstrating a solid operating leverage in our model. We invested in research and development to expand our product line and we invested in sales and marketing to reach new customers around the world.

For 2025, we plan for research and development in the 12% to 13% range, sales and marketing in the 7% to 8% range and G and A in the 5% to 6% range. Operating income was $52,800,000 for the fourth quarter, up 46.4%. Operating margin increased to 23.6% from 21.2%. For the full year 2024, operating margin increased to 25.6% from 22.1%. Income tax expense was $17,300,000 for the fourth quarter versus $8,100,000 For the full year 2024, income tax expense $35,000,000 versus $19,400,000 in 2023.

For 2025, we expect our effective tax rate in the 12% to 15% range. Net income attributable to ACM Research was $37,700,000 for the fourth quarter versus $28,700,000 For the full year 2024, net income attributable to ACM Research was $152,200,000 versus $107,400,000 in 2023. Net income per diluted share was $0.56 for the fourth quarter versus $0.43 For the full year 2024, net income per diluted share was $2.26 versus $1.63 Our non GAAP net income excluded $8,800,000 in stock based compensation expense for the fourth quarter and $49,600,000 for the full year. For the full year 2025, we expect stock based compensation to be in the $35,000,000 range. I will now review selected balance sheet and cash flow items.

Cash, cash equivalents, restricted cash and time deposits were $441,900,000 at year end versus $369,100,000 at the end of the third quarter of twenty twenty four. Net cash, which excludes the short term and long term debt was $259,100,000 versus $198,500,000 at the end of the third quarter twenty twenty four. Total inventory at year end was $598,000,000 versus $628,700,000 at the end of the third quarter twenty twenty four. This included raw materials and work in process, $304,900,000 and finished goods inventory of $293,100,000 Finished goods inventory primarily consists of first tools under evaluation at our customer sites together with finished goods located at ACM’s facilities. Cash flow from operations was $88,000,000 for the fourth quarter and $152,000,000 for the full year 2024.

Capital expenditures were $12,300,000 for the fourth quarter, ’80 ’5 point ’3 million dollars for the full year 2024. For the full year 2025, we expect to spend about $65,000,000 to $75,000,000 in capital expenditures. That does conclude our prepared remarks. Now let’s open up the call for any questions that you may have. Operator, please open up the floor for questions.

Conference Operator: Our first question coming from the line of Chelsea with Needham and Company. Your line is now open.

Chelsea, Analyst, Needham and Company: Hello.

Mark McKechnie, CFO, ACM Research: Yes, good morning.

Chelsea, Analyst, Needham and Company: The line cut off a little bit. Just wanted to make sure it’s my turn. So maybe the first question that you guys reiterated the fiscal twenty twenty five revenue outlook. It’s the same outlook you provided in January, low point at the low end of 9% year on year growth, at the high end, a 21% year on year growth. Can you provide a little bit of color on what goes into the assumptions to the low end versus the high end?

And what are the scenarios? I think the press release you did mention that various spending scenarios by your customers this year are baked into the range of the guidance. I want to get a little bit more color on that. Thanks.

David Wong, CEO, ACM Research: Okay, Charles. Actually, this prediction of the revenue is really based on the last year of shipment, which is some of them were record revenue this year. Obviously, we can see their customer PO, customer their expansion plan probably at this moment I can say about Q2, Q3. And there is still some Q4, we cannot see that, right? So that’s the one really from the early time of the year, we give this low end and high end projection, right?

So, cover of the detailed assumption there. I cannot elaborate too much detail, but anyway, there’s a range you put there. So maybe the time go to the Q2 or looking for Q4 and that moment may be more clear in Q4, we can readjust to our revenue projection. So that’s our typical process we did every year.

Chelsea, Analyst, Needham and Company: Got it. Maybe a quick follow-up. It sounds like you’re saying you have good visibility at least through the third quarter this year, it’s only like Q4 a little unclear at this point. Is that correct?

David Wong, CEO, ACM Research: Yes. What you say is some Q3 was still maybe at the more, right? This moment is still early year over the year. But definitely we see the PEO Q3, but Q4 was still, I said, not clear, right? So that will be waiting, say, maybe Q2 timeline or end of Q2, we can see that more clearly in the Q4 timeline.

Mark McKechnie, CFO, ACM Research: Yes, Charles. And that’s pretty normal visibility at this time of the year. We go through our year end planning process and then come back early in the year and kind of test that. And of course, we took a look at it before we reported here on the quarter. So it’s pretty standard visibility going into the year.

As David noted, it’s based on the POs that we have in hand. It’s based on also kind of the forecast of POs that we still would probably get as we move through the year and then the timing of some of the customer acceptances from First Tools last year.

David Wong, CEO, ACM Research: Based on our average, our manufacturing time is about six months, right, five to six. So that’s probably the right part of their projection for their looking their two quarter, right?

Chelsea, Analyst, Needham and Company: Got it. The other question, I think, usually before Chinese New Year, there’s a little bit of, I would call, information black hole about the outlook for the New Year. But now we are coming out of that and especially in light of the recent export control by The U. S. And obviously a few of your customers were added to entity list.

And it’s getting a little bit hard to predict what would be the impact of export control because we did see YMTC, which was added in 2022, came back to a 10% customer list, but there is another customer on your 2024 ’10 percent customer list that got recently added. So maybe we can get a little bit of sense based on what you’re seeing right now, the export control rules, do they have an impact, positive or negative, on your customers’ spending plan in 2025 and any sort of movement you’re seeing at a little bit micro level, customer to customer level? If anything, you can provide a big grade. Thank you.

David Wong, CEO, ACM Research: I mean, this is a very broad question. Real customer to customer is different, right? And I want to say definitely some customer get an impact, right, because of the end of this. And some customer, we still see the expansion. So, it’s really hard to give you the general description, right?

This moment, we’re also working with the customer to figure out how much impact. We’re still on the process to access and the evaluation is kind of impact.

Chelsea, Analyst, Needham and Company: Got it. So maybe the last question, looks like the plating, furnace product line, you have three segments in your reporting. That particular segment has done pretty well and probably growing even faster than the WackClin product line. I think you just mentioned plating, you become a leading supplier in China and especially for the front end. I was kind of curious like what do you see the market share of plating and especially in the front end and versus packaging.

Can you give a little bit color on that front end versus back end for plating and where the share is and where do you think the trend is going for ACM? Thank you.

David Wong, CEO, ACM Research: Yes. I think our market share is about 30%, right, 30% to 35% and it’s actually both in the front and the back end, right. It’s almost like the same. So we’re still in one third, thirty percent, thirty percent, thirty five percent of the market share in China.

Chelsea, Analyst, Needham and Company: Got it. Thank you.

David Wong, CEO, ACM Research: Okay. Thank you, Charles. Thanks, Charles.

Conference Operator: Thank you. Our next question coming from the line of Mark Miller with The Benchmark Company. Your line is now open.

Mark Miller, Analyst, The Benchmark Company: Once again, congratulations on a very nice quarter. I was just wondering a number of equipment firms, semi equipment firms are projecting strong growth in their AP related sales for 2025. What are you thinking about in terms of the AP sales you’re expecting this year?

Mark McKechnie, CFO, ACM Research: The Advanced Packaging. You’re talking about the Right. Yes.

David Wong, CEO, ACM Research: I see. Okay. Well, yes, I think we do the advanced packaging growing. And obviously, all this kind of 2.5 D and the three D in the puzzle as a $0.01 And there are certain other, I want to say, advanced packaging going on here. So we see that expansion basically.

And I think this year probably will be better than last year in terms of advanced packaging.

Mark McKechnie, CFO, ACM Research: Yes. Mark, one thing I’d point out, it’s a little tricky because some of our ECP group includes both the front end and the back end packaging, right? So and then our advanced packaging group is everything but the ECP. So it’s at some point, we can give some more detail when that becomes a bigger percentage of our overall revenue. But at this point, it’s hard to kind of see our back end packaging group.

David Wong, CEO, ACM Research: Also, I want to add to that is, Mark, is also the panel packaging start to play, right? So we do have three products in the market. We see that it will start contributing to our revenue in 2025 too. So that’s another new field or new part of the technology we’ll work on.

Mark Miller, Analyst, The Benchmark Company: I was just wondering if you could give us some sort of estimate how your sales breakdown related to say memory, logic and electric vehicles. What percentage of sales are related to each of those three areas?

Mark McKechnie, CFO, ACM Research: Yes, Mark, it’s tough. We don’t generally break that out. I think you can look at our 10% customers and kind of take a guess, right? So we’ve got four of them that were a little over 50% of our business. And so, yes, we generally don’t look at it by those end markets like that and we haven’t broken them out.

We get that request though, so we could look into perhaps updating you on that in the future, but at this point, we don’t have the detailed breakdown.

Mark Miller, Analyst, The Benchmark Company: Okay. You said that four customers accounted for roughly 50% of your or over 50% of your business, is that correct?

Mark McKechnie, CFO, ACM Research: I think that’s right. Yes, it’s over 52 for the full customers.

Chelsea, Analyst, Needham and Company: Yes. Thank you.

Mark McKechnie, CFO, ACM Research: Yes.

Conference Operator: Thank you. And I see there are no further questions in the queue at this time. I will now turn it back to Mr. David Wang for any closing remarks.

David Wong, CEO, ACM Research: Okay. Thank you, operator, and thank you all for participating on today’s call and for your support. Before we close, Stephen is going to mention our upcoming Investor Relations events. Stephen, please.

Steven Plaio, Managing Director, The Blueshirt Group, The Blueshirt Group: Great. Thanks, David. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On March 17, we will present at the thirty seventh Annual ROTH Conference in Dana Point, California. Attendance at the conference is by invitation only.

For interested investors, please contact your respective sales representative to register and schedule one on one meetings with the management team. With that, this concludes the call and you may now disconnect. Take care.

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