Earnings call transcript: Technoprobe Q2 2025 sees revenue beat, stock up 3.39%

Technoprobe, the leading provider in logic chip testing, has reported its financial results for Q2 2025, showing a significant revenue beat compared to forecasts. The company posted revenues of €168.7 million, surpassing the forecasted €50.65 million by a wide margin. This impressive performance has led to a stock price increase of 3.39%, closing at €6.41. The earnings call highlighted strong demand in AI testing technologies and expansion plans to meet future demand. According to InvestingPro data, the company maintains robust financial health with a current ratio of 8.06, indicating strong liquidity to support its growth initiatives.

Key Takeaways

• Technoprobe’s Q2 revenue significantly beat forecasts, coming in at €168.7 million.
• The stock price rose by 3.39% following the earnings announcement.
• The company is expanding production capacity in Italy and Taiwan.
• Strong demand in AI and logic chip testing continues to drive growth.
• Future guidance indicates mid-single digit organic growth.

Company Performance

Technoprobe has demonstrated robust performance in Q2 2025, with revenues increasing by 21.1% year-over-year. The company has maintained its leadership in the testing of logic chips and is capitalizing on the growing demand for AI and complex chip testing solutions. This strong performance is further supported by strategic acquisitions and capacity expansion efforts.

Financial Highlights

• Revenue: €168.7 million, up 21.1% YoY
• Gross Profit: €79.9 million, up 38.4% YoY
• EBITDA: €58 million, up 61.8% YoY
• First Half 2025 Revenue: €326 million, up 35.2% YoY
• Gross Profit YTD: €150.6 million, up 49.5% YoY
• EBITDA YTD: €106.4 million, up 75.2% YoY

Earnings vs. Forecast

Technoprobe’s actual revenue of €168.7 million far exceeded the forecast of €50.65 million, resulting in a revenue surprise of 225.88%. This substantial beat underscores the company’s strong market position and effective execution of its growth strategies.

Market Reaction

Following the earnings report, Technoprobe’s stock increased by 3.39%, reflecting investor confidence in the company’s performance and future prospects. InvestingPro analysis shows the stock is currently trading near its Fair Value, with a 52-week trading range of €5.56 to €9.64. While the stock has experienced a -12.43% return over the past week, its YTD return remains positive at 7.92%. For deeper insights into Technoprobe’s valuation and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.

Outlook & Guidance

Technoprobe has provided guidance for Q3 2025, projecting revenues of €137 million with a gross margin of 41.2% and an EBITDA margin of 28.2%. The company anticipates mid-single digit organic growth for the full year, with potential foreign exchange impacts of €25-27 million on revenues.

Executive Commentary

Stefano Ferricci, CEO, emphasized the company’s strategic position, stating, "We are benefiting from our leading position in the testing of the logic chips." CFO Stefano Beretta added, "We expect to grow, and this is due to all the reasons you mentioned," highlighting confidence in sustained growth.

Risks and Challenges

• Potential foreign exchange impacts on revenues.
• Integration challenges with recent acquisitions.
• Capacity constraints as production nears 80% utilization.
• Competitive pressures in the AI and semiconductor testing markets.
• Economic uncertainties affecting the automotive and industrial sectors.

Q&A

During the earnings call, analysts inquired about the strong demand in AI testing and the company’s capacity expansion plans. Executives confirmed ongoing efforts to meet demand and discussed potential opportunities in HBM and Edge AI testing. Concerns about foreign exchange impacts and tariffs were also addressed, with management outlining strategies to mitigate these risks.

Full transcript - Technoprobe SpA (TPRO) Q2 2025:

Moderator: I have now pleasure handing over to the CEO, mister Stefano Ferricci. Please, the floor to you.

Stefano Ferricci, CEO, Technoprobe: Good evening, and thank you for joining us. I’m, with Stefano Beretta, our CFO, presenting the first half twenty twenty five results and the guidance for the third quarter of this year. As usual, q and a session will follow at the end of the presentation. Revenues recorded in the second quarter has been positively affected by, first of all, a very good performance coming from DIS related to the seasonality of the business. We couldn’t benefit last year because because of the the acquisition was finalized at the May.

Second, by the long tail of a big AI campaign started at the 2024. And third, by, as expected, new new campaign in the customer market. From a market standpoint, we confirm trends discussed in our last call in May. About artificial intelligence, so artificial intelligence is is doing very well, confirming an extremely strong trend. We are benefiting from our leading position in the testing of the logic chips, and we are assuming a progressive and steady increase in demand for advanced logic testing solutions.

Comparing the performance of campaigns in in the AI segments with those in the consumer segment, what we have observed is that the former trend tend to have a longer duration than the the last than latter. This implies a contribute contribution spread over multiple quarters as opposed to typically concentrated impact in a single quarter associated with products such as mobile or PCs. Second market is about the consumer market. So consumer exposed markets continue to show modest growth in the second quarter as well. As discussed in our previous calls, we believe the real boost will come from the adoption of Edge AI.

Together with our clients, we are working on solution capable of testing new products that incorporate artificial intelligence features, but we have no visibility in their decisions regarding time to market. Third and the last is the automotive and industrial market. As confirmed by our clients, industrial is performing a little bit better than automotive, which is expected to have reached its bottom in the first half of the year. Now let me turn to Stefano Barreta who will give you more colors on on our numbers.

Stefano Beretta, CFO, Technoprobe: Thank you very much, Stefano, and good afternoon. Thank you for joining us. So as you will will have seen in our press release, revenues in the second quarter were €168,700,000, slightly above the mid range of our guidance, registering an increase of 21.1 compared to the same quarter of prior year with a sequential increase of 7.3% compared to the 2025. The gross profit increased 38.4% compared to the same period of 02/2024, up to 79,900,000.0, representing a 47.3% margin at the end at the high end of our outlook range. And consistently, also, the EBITDA increased 61.8 compared to the 2024, up to 58,000,000 point three, representing a remarkable 34.6% margin, well above the midrange guided during our prior call.

If we move to the year to date figures, total revenue were close to 326,000,000 with an year on year increase of 35.2. Gross profit was 150,600,000.0, 49.5% higher com compared to the same period of 02/2024, representing a margin of 46.2%. And finally, the EBITDA closed at one one hundred and six point four million, up 75.2% compared to the same period of 02/2024, representing a margin of 32.6%. And for the completeness of information and the comparison purposes, it’s worth to remind that all the above figures include a new perimeter of consolidation as already anticipated by Stefano, inclusive of the contribution of DIS tech that was acquired on 05/27/2024, then present for only one month in the same period of 02/2024. And just to anticipate some split of revenues of DIS Tech contributed to Technoprov revenues and EBITDA for the six month ended June 2025 for approximately 74,000,000 and 9,000,000 respectively.

And inclusive already of approximately 2,900,000.0 of US reorganization charges, mostly related to the Santa Clara operation shutdown. Moving to this page, you can see a summary comparison between the financials at the end of the first six months, 2024 and 02/2025. And just to comment it further, the revenue increase of 35.2% was mostly driven by the change of the perimeter as I just mentioned. So DIS inclusion and Santa Clara shutdown for approximately 50,000,000. In addition to an organic growth of 35,000,000, representing more than 14%, largely sustained by artificial intelligence volumes as well as a soft recovery in the consumer segment.

And all of them partially mitigated by the continuous weakness in automotive and industrial. If we want to look at the revenue as expected at the constant currency, so using the same FX rate of the half year 02/2024, would have been approximately 1,300,000 higher than the reported revenue, meaning less than 1% unfavorable impact. Effective six months average euro USD rate for the semester was approximately 1.09 compared to 1.08 in half year twenty four. On a gross profit level, the increase in the margin from 41.8 to 46.2 was the result of the recovery efficiency in our production processes together with many operating leverage that our business model allows us when certain production thresholds are exceeded. All of these impacts have more than compensated the increase of the depreciation following the great investments in the fixed assets made during prior year to expand our capacity and increase our automation.

If you look at the constant currency impact, the gross profit would have been approximately 1,000,000 higher. Consistently, also the EBITDA reflected the same trend, showing a significant increase in the margin from 25 to 32.6% and benefiting also from the savings attributable to The US organization and even including a negative fore Forex impact for approximately 1,500,000.0. Finally, just a a look at the net financial position that is down for approximately €14,000,000 in the semester, mainly due to 69,000,000 generated through the operating activities, more than offset by 28,000,000 absorbed by the investment of the period in CapEx, 20,000,000 absorbed by the acquisition of a remaining stake in the way that now is a 100% owned, 7,000,000 absorbed by the acquisition of a minority stake in Innosar Service, a Taiwanese company listed in emerging markets, where we have currently slightly more than 9% stake. And 29,000,000 theoretically absorbed by the unrealized FX impact on the foreign currency bank accounts we currently have, denominated in currency different from euro. If we move to the next page, please.

So as already said during our latest Capital Market Day and during also the latest press release, we confirm once again the trajectory for an organic mid single digit growth in our reference market on a yearly basis, together with a consistent strengthening of our profitability and confirming the volumes and market share we currently have. That said, third quarter of the year is expected to show the following figures, So also significantly impacted by a continued deterioration of the US dollar against the euro. So revenue to be about 137,000,000 plus minus 3%. Gross margin in the range of 41.2% plus minus 2%, and EBITDA margin in the range of 28.2% plus minus 2%. So thanks everyone for your attention.

Now we can move to the q and a session.

Moderator: Thank you to the management team. We now have an opportunity for questions. Please remember, if you’re asking a question, you should press the raise hand function on your screen, or for those dialing in, it’s star nine on your keypad. First question today comes from mister Giovanni Selvetti. Please, the floor to you.

Giovanni Selvetti, Analyst: Hello, everyone. Can you hear me well? Yes.

Moderator: We can indeed.

Giovanni Selvetti, Analyst: Thank you. Thank you for taking my questions. I have a couple. The first one is is quite easy. I was wondering how much of the current cash is currently held in USD deposits and how it’s it’s employed, really.

The second question is more on the outlook because your main competitor is flagging a quite still weak demand for phone and PCs in the second half of the year. And be because you said that you see slightly growth in in first half, is it something you’re seeing as well? This, again, weakness in h two, or you see room to grow again in in h two in consumer? And the the third one is mainly on on HBM. I was wondering if you have an update on where are we in terms of authorization with the with the with the main producer.

Thank you.

Stefano Beretta, CFO, Technoprobe: Thank you. Thank you, Giovanni. Let me start from the information about the cash. So you will see great amount of cash overall in terms of euro, and the conversion is pretty significant for us when we move from amounts denominated in foreign currency rather than euro. So we currently have approximately 250, €260,000,000 that are denominated in US dollar originally.

So the conversion bringing to 260. And another bunch of currencies with a minor impact, we talk about something less than 40,000,000, if I don’t remember well. If I remember well. So we talk about in overall, 300,000,000 of our cash are denominated in foreign currency. But the most significant impact are for those denominated in US dollar representing $2.60.

Stefano Ferricci, CEO, Technoprobe: Okay. About the outlook for consumer, what we see is is is kind of stable, but slightly positive, I would say, for the second half of the year. Of course, the the major increase, the it is going to come again from AI rather than consumer, but we don’t see we see the consumer market stable, by the way. For HBM, we are I want to remind, yes, that we are we are qualifying our technologies with major players. And here, the we are we don’t expect to have any revenue for this year because of qualification, and eventually, it would be for next year, 2026.

What I like to remind is that HBM, the next HBM generations will be more complex in going towards the complexity of logic dice, logic chips. And and that’s the area where we think we can make the difference with our technologies. So, also, the implementation of new technologies will depend on the decision of our customers’ visit. So be be so when they will think that they will require a better technology because HBM chips would be more more complex, that is the time where we will start to have some traction.

Giovanni Selvetti, Analyst: Okay. Thank you very much.

Moderator: Thank you, mister Salvetti. Next question today comes from mister Fabio Pavan. Please, the floor to you.

Fabio Pavan, Analyst: Yes. Good afternoon, and thank you for taking my my two questions. The first one is if you can help us in reconciling the ’25 outlook in the light of the guidance you provided us for the first quarter, and this applies to both revenues and and margins. If the EBITDA margin of 30 is still confirmed as a floor. Second question is in the light of this update, what is the impact on, if any, on your expected guidance for the target model you suggested as at the Capital Market Day?

Thank you.

Stefano Beretta, CFO, Technoprobe: Thank you. So it’s very simple. We confirm all the information we provided in the in the prior press releases and including also the capital market day. So the trajectory for the company was to grow in terms of organic growth for 2025 on a mid single digit growth. So between in the region of 6% more or less, plus the the the addition of the missing months of DIS in the 2025.

So we are still respecting this trajectory if we talk in local currencies. And also well, in local currency, we are targeting to reach probably something more in terms of US dollar because in the first half of the year, our our market share were it was consolidated, and we got a significant campaign from some customer. So in terms of local currency, it’s probably higher and close to high single digit or even a low single digit growth. When we come down to the euro conversion, unfortunately, the trajectory of the FX rate is continuing operating our value in terms of revenue, and we expect to have an impact on a full year base on the total revenue compared to the consensus we have on the market right now in the region of 25, 27,000,000. So I I sent I I put I included those for a chart.

You can see now projected on the screen, if you’re looking at the screen, where you can clearly see in the trajectory of the US dollar rate compared to the same periods comparable period of 02/2024, where on a on a quarterly basis, the accumulated average was very consistent moving from one point zero to 1.09, so in that range. So every single quarter was not impacted by a missing or a plus for the following quarter. In 02/2025, this is what’s happening. So if you look at the actuals, two quarters, the accumulated average for the half year one was 1.09. And what we expect as a trend for the next quarters, q three and q four, is even a a more weaker US dollar compared to euro, arriving to to bring the average for the twelve months up to 1.1314, so in that range.

It means it means that when you go down to the accounting and you have to convert not only the the current quarter, not only q three, but the q three at the September, you have to convert back the half year results, and you have to start with a deficit. You start with an handicap because the current figures of revenue are converted at 1.09. But when we go down for the nine month period, we have to reconsider the six months figures and to have a a decrease of what we have already recognized. This is how accounting works, and this is what we expect for the year end. This is all included in our current estimates.

So this is not an addition to new estimates or or new guidance to be raised in the future, but our figures on q three already incorporate this impact. That’s why the most significant portion of the decrease on a sequential basis you see on q three compared to q two in 2025 is impacted. So large impact is due to the significant weaker US dollar compared to euro. This is a prudential very prudential trend, but I want to be prudent as you know me already since a lot of time. So we expect to to have the US dollar by the end of the year reaching 1.2 1.2.

So and the average in the last quarter to be 1.1819. So this is a prudent scenario that revise all our consideration we made at the beginning of two thousand twenty five and during the Capital Market Day when the estimate for the for the full year average was in the region between one point zero nine and one point one. So that’s why we are still very confident in our business projecting the same level of revenue we projected at the beginning of the year and at the end of the year in local currency. The only difference we expect in terms of revenue is just the conversion from US dollar to euro. And this impact is is estimated to be, as I said before, in the range between 25 and 27,000,000 for the top line.

If we go down to gross profit and EBITDA, of course, in terms of dollar, euro, there will be an impact. In terms of profitability, we confirm absolutely the trend for our current EBITDA. So the the consensus was in the range between 3132%, and this is what we expect to still achieve at the year end. So we do not expect any decrease in our profitability in terms of percentage. And this is due to many, many savings and reorganization savings that we have in The US, but not only in The US, but also at domestic level here in Italy where our productions production capacity is at a very positive path.

We are not facing particular issues in our production even for the more complex products. We are making efficiencies also in our local structure together with other savings and efficiencies due to the integration of the DIS group that brought already in the second quarter of the year a significant contribution higher than expected. So I have to thank you also DIS management for what they brought in the second quarter and expect it to be consistent in the third and fourth quarter. Despite the volume will be lower as we can come further, but the contribution in terms of efficiency and savings will be very positive.

Fabio Pavan, Analyst: Thank you.

Moderator: Thank you, mister Pavan, for your questions. Next question today comes from mister Alberto Jeyla. Please, the floor to you.

Alberto Jeyla, Analyst: Good afternoon. Can you hear me?

Moderator: Yes. We can indeed.

Alberto Jeyla, Analyst: Okay. So my first question is if you can give us a sense of what level of sales do you expect from DIS in the third quarter, maybe also on the EBITDA level? Then on the margin guidance for this quarter, can you help us in better understanding a sort of bridge embedded in the guidance in terms of dollar impact, operating leverage and mix impact? And then the third one, at this stage, looking at the fourth quarter, which kind of moving part should we expect compared to the third one on probe card and the DIS, so on both sales trend and profitability? Thank you.

Stefano Beretta, CFO, Technoprobe: You. So starting from this point, the contribution of DIS for q three is expected in the region of 35 u million US dollar, and this is a positive results. Usually, we expect something in the region of 10,000,000 per month, we expect to reach something more. The contribution at this level in terms of EBITDA stand alone, even if as I warned you many times in this case, DIS is still is now much more integrated than in the past. So there are many intercompany transaction between Technoprove and DIS.

But if we want to have a figure just to to have a in in a range, the contribution in terms of EBITDA is in the region of 12 to 15%. But this is very you know, I don’t want to say complicated, but doesn’t bring much added value if you want to to see DIS stand alone because DIS is no more stand alone business. It’s now very connected to probe card and tech of probe customers. The contribution is positive. We are happy for the integration we are performing.

So the contribution is no is no more so diluting as it was in 02/2024. And if we exclude the extra charges we had for the reorganization of Santa Clara, as I mentioned before, in the region of $2,930,000 in the quarter. So even with excluding this one, the profitability will be confirmed in the region of 13, even 14 to 50%. How can you what was the other question about the?

Alberto Jeyla, Analyst: About the the revenue sorry. Margin bridge embedded in the in the third quarter guidance.

Stefano Beretta, CFO, Technoprobe: Okay. So the the increase compared to okay. In in q three, so we have a in q two, sorry, in q two, we had a very positive gross profit, 47 more than 47%. So the operating leverage is very consistent. So compared to if we look at prior quarter, same quarter, 41% in the region of February 2024.

So we have a 6% gap. This 6% would be attributable more or less four points 4% to operating leverage four to 5% to operating leverage. That is a lot. We have some charges affecting this gross margin. So the organization impacted not only g and a, r and d, but also inventory and other operating cost above the gross margin, and the impact is in the region of 1%, 1.5%.

And all the remaining part is efficiency rather than operating leverage. The efficiency we have recovered when transferring some operation from a high level cost, high level labor cost location, meaning The US to other countries like Taiwan or Italy. So this is more or less the the the percentage driving the increase of the gross margin. Same could be reflected in for the increase on the EBITDA.

Alberto Jeyla, Analyst: Okay. Thank you. And my last question was about an early view on the fourth quarter in terms of sales and profitability compared to the third one that you are guiding.

Stefano Beretta, CFO, Technoprobe: So, you know, we we don’t we do not provide any guidance for the following quarter, but we can comment, as I said before, already the trend. We mentioned already many times since the beginning of the year. So the trend is to confirm a mid single digit organic growth. So meaning that if we look at the consensus out there, if you want to make some to make some math, If the guy if the consensus was the an FX rate of 1.09, you can have the same level of revenue in USD, but using 1.136, one three six. So this is the same path we started declaring, and this is what we are committed to follow.

It was cheap. So no changes in our trend.

Giovanni Selvetti, Analyst: Thank you.

Moderator: Thank you, mister Zegra. Next questions come from Oliver Wong. Please, the floor to you.

Oliver Wong, Analyst: Hello. Thanks for taking my question. My first question is, you know, since I understand the headwind from FX. So on an organic basis, you know, since you’re confirming for the full year to be growing at roughly mid single digits, I was I was curious about in terms of the moving parts. You know, you mentioned you got significant campaign, from some customers.

And at at the same time, you know, consumer market remains slow. You know, would you say kind of, you know, relative to perhaps, you know, at CMD when you’re giving your target for for the year, would you say that, you know, the certain portions like the the sort of leading edge logic portion has gotten better, whereas the consumer portion has gotten worse? Just curious about that. And then second question is on, ASICs. So a a Taiwanese, pro card maker, more specialized in VPC has, recently won, a project with a major, hyperscaler who was previously using VPC, but now using MEMS.

They they’ve won a MEMS project. So curious, you know, since you guys haven’t really talked about, ASICs in the past, kinda how you think about that. Is that a potential, risk of, you know, to to your market shares, or could that be, you know, a potential opportunity as these ASICs customers kind of, you know, seem to be transitioning more into into MEMS? Thank you.

Stefano Ferricci, CEO, Technoprobe: Okay. Let’s start to answer about what we see in the AI market. So first of all, I like just to give you some information about the type of seasonality we we see typically. We have seen in the past what we expect for the future because then you can understand that the quarters can be different between each other. So it’s depending on the campaign main campaigns we see.

But for consumer, typically, since many years, it’s very predictable. The the campaigns of our consumer products. Why this? Because typically, the launch of a new phone, for example, is always the same month. K?

No matter it’s the one company or the other company, typically, they pick the same time of the year to launch new products. And that’s why these reflect for us to be to have a a typical seasonality of the of the chips when they need the they need to produce the chips and when they need to use the broadcast. For AI, in the last few years was a bit different because was, they were falling in accelerated, trend to release new chips. So not not once per year or once every two years, but they are accelerating. Okay?

So they release they they change the the the time between two new chips. So that’s why it’s a little bit more difficult to predict the seasonality. But as said by Stefano, as we don’t typically provide guidance for the the event for them for q four, we expect the second half of the year similar to the first half because also some, I think, positive trend on the AI business. So about ASICs, so this is is already happening that we are already making business with some major players, custom ASICs players. And what happened, I think we already mentioned in the in the previous call, is that these type of chips are also becoming more complex, a higher ping count, and more demanding as far as technology for probing.

And and we are already not only engaging, we are already doing business with the major payers. And this is a is a great opportunity for us because there’s still margin of improvement for us as far as gaining market share in that area.

Moderator: Mister Wong, do you have any follow-up questions?

Oliver Wong, Analyst: No. That’s it. Thank you very much. Appreciate it.

Moderator: Okay. Perfect. Next question comes from mister Gian Marco Bonacina. Please, the floor to you.

Gian Marco Bonacina, Analyst: Yes. Good afternoon. One question, please, on DIS. If I understood correctly, you had something in the region of 45,000,000 revenues in q two, which is going down to 30,000,000 in q three. So that’s a delta of 15.

And you have also sequentially some effects, Edwin, but I calculate a few millions. So am I right in saying that the 30,000,000 decline in sales q three versus q two is basically half the IS, a little bit of effects, but also some deterioration, let’s say, organically in logic probe probe cards. If and if that’s the case, how do you reconcile this with the comment that you see, say, stable market also in in consumer? And the second question is just to put things in context. You mentioned the the impact of the effects for the total year.

Am I right in assuming that translating what you’re saying, so a level of revenues in Europe for you for this year could be in the region of $620,000,000? Thank you.

Stefano Beretta, CFO, Technoprobe: Thank you, Gianmarco. I have to correct you on the number of DIS. So if we talk about USD, DIS contributed for for more than 49,000,000 for the quarter, for the single quarter. So we expect something like 35,000,000 USD for the q three, and then you have to convert that into euro. So this is the level of the contribution currently for DIS.

DIS is very affected by cyclicality. So the second quarter is usually the best quarter of the year as announced already in our prior press release. So the normal path for the remaining months is usually 10,000,000 per month. So already reaching more than 35 is a is a very good result for a quarter. And this is the contribution in terms of revenue for DIS.

If you go down to the numbers of Technoprobes standalone, so taking care only taking into consideration only probe card business, the contraction in the revenue in q three is

Moderator: Technoprop is experiencing some technical problems, I assume. Just so that was a few seconds, please. Management team will now reconnect. Just allow us a few seconds. Thank you.

Stefano Beretta, CFO, Technoprobe: Hello? Can you hear us? You hear us?

Moderator: We can hear you. Thank you.

Stefano Beretta, CFO, Technoprobe: Okay. Sorry for the disruption. Can

Moderator: you please mute the other laptop in the room? Thank you.

Stefano Beretta, CFO, Technoprobe: Okay. Thank you. Sorry for the for the disruption. Not sure when the call was interrupted, but I believe when I was talking about the revenue of Technoprobe

Gian Marco Bonacina, Analyst: Yes.

Stefano Beretta, CFO, Technoprobe: If not, please let me know, and then I will repeat what I said also for DIS. So when we talk about Technoprobe in q three, there is also a cycle currently to take into consideration. Also, than the the huge effects impact on the quarters and the loan. So we said already there was a a big numbers of campaigns already exhausted in the first half of the year, and something more is expected at the end of fiscal year twenty five. Q three will be potentially weakest quarter of the year.

So we talk about probably $10,000,000 less than the other quarters in terms of campaign from customers. So this is what we see on q three. But as we guided already in the other quarters, in the other press releases, we expect on a yearly basis to have half one and half two on the same level of revenues. So there are no particular concerns in q three that was largely expected. And this is something we can really control.

This is our business. What we get what we cannot control literally is the effects that unfortunately we have to take care in our guidance as well.

Stefano Ferricci, CEO, Technoprobe: Yeah. And I want to add, when we say it’s stable or doesn’t we we don’t mean that it’s you will see always the same, exactly same revenue for consumer because as said by Stefano, these are also they go by campaigns. But what when we see we we say stable because we see the what we call NPI, new product in in the introduction. And there are center number or of these NPIs that this company will develop and launch during the year. And then at the beginning, it’s just a small revenue, and then it’s becoming big bigger revenue when they start in high volume.

So the stability when we see the same number on PI, so even more so we we can have a sense of of if this the business will will how the business will will will be. And when we say stable, it’s basically that we we see the same amount of NPIs coming. So this is the meaning of stability. Then, of course, you would always see a quarter better than the quarter depending on when really there is the high volume campaign.

Gian Marco Bonacina, Analyst: And, sorry, just to follow-up in the full year. So am I right in saying that with the the effects you showed, we can assume 06/20 as a as a base now. June.

Stefano Beretta, CFO, Technoprobe: Well, we we we usually don’t say exact number of the year end. You know? This is something we cannot guide especially. But, basically, we can say you are in the good range. I mean Okay.

Just take the current consensus in June, and we just remove 25, 27,000,000, you will arrive

Gian Marco Bonacina, Analyst: Okay. Very clear.

Stefano Beretta, CFO, Technoprobe: Level of revenue.

Gian Marco Bonacina, Analyst: Okay. And and then I just have a a quick follow-up. I think it was commented before that you don’t have a lot of visibility into the new launches from the, let’s say, end customers in terms of AGI. But we we saw that recently, TSMC indicated in their last call that in the next six to twelve months, they will see a significant pickup in AGI. So given to given your exposure to TSMC, I wanted to ask if you can comment, although clearly the visibility is what it is on the fact that in 02/1926, maybe the 2026, we should see this this pickup or, let’s say, you don’t see this as a as a potential, maybe it’s more longer term?

Thank you.

Stefano Ferricci, CEO, Technoprobe: It’s a good question. For sure, what I can tell you is that there is a a stronger push for the g GPUs. That that is definitely is happening, and we’re talking about the cloud AI. And this is you you can see what the major player are announcing on the in that area. And there is really even though we don’t have a committed forecast, so we cannot tell you exactly, but we see very strong strong can be very strong demands in that area GPUs, Cloud AI.

Then there is a the edge AI, which is a is a little bit is more difficult, let’s say, predict. But what I can tell you, as I mentioned before, for sure, TCC is working in many new NPIs. So they’re really yes. They’re working on the edge AI chips, but it’s difficult right now. I mean, for now, but also for TNC, I don’t think they know for sure when they will go in mass production.

Means that, of course, they’re preparing the designs. They’re preparing their first engineering chips. But the moment that they will go in in mass production, it’s it’s not cannot be predicted with very high precision. But for sure, this is is where they’re going and where they also also what we we are doing to follow them.

Gian Marco Bonacina, Analyst: Very good. Thank you.

Moderator: Thank you, mister Buenacina. Next question comes from mister George Brown. Please, the floor to you.

George Brown, Analyst: Yeah. Hi, guys. Can you hear me?

Moderator: Yes. We can indeed.

George Brown, Analyst: Okay. Yeah. Thanks for taking my questions. I have two, if I may. Just firstly, if we look into 2026, we’ve had a lot of positive commentary recently from your peers like Advantest, Teradyne, specifically on AI.

I think Advantest gave very bullish outlook on their tester sort of market size in logic. So, you know, more test capacity being added in 2025 and 2026. Can you give us an idea on growth in 2026 and, you know, what will be the drivers here, whether that’s still AI or maybe, you know, some first HBM sales as well. And then just secondly on on HBM, Teradyne recently called out, you know, first sort of wins in HBM for testing singulated stacks. So after the HBM wafers are sort of diced, and this is a new type of test.

I’m just wondering if this type of test is relevant for Technoprobe as well or whether there are multiple stages of in HBM where Technoprobe is being qualified. Thanks, guys.

Stefano Beretta, CFO, Technoprobe: So about the estimates of 02/1926, you know, our business model works, and it’s very hard for us to make some statement on the grow. What we expect is for sure to grow, and this is due to all the to all the reasons you mentioned. So all our players, all our partners like Adventist and Paradigm and all the other players on the same space seems to be very aligned on that. And what I can tell you is that we are considering further expanding our capacity. So in fact, one month ago, we acquired a land very close to our headquarter where it could be expanded up to 50,000 square meter capacity.

So that this is the double of the current space we have in all our quarters here in Italy. We are also looking for looking for a for a another potential acquisition of another building. So this is what we can tell you. We are preparing ourself to a significant ramp in the future in 2026 or ’27. Of course, a new building will not be ready in ’26, the expansion will be gradual and very important for our business.

That’s why we’re not giving up and stay as we are. We are currently on a capacity production rate in the region of 80% overall in on the department we have here in Italy in the in the headquarter. Even if some departments, specific departments show starting started showing a a like a bottleneck for sent and processes. And this is a we we don’t want that to be a problem for the next few months. So that’s why we are very looking in the future to expand our capacity and to avoid any bottleneck and to avoid any disruption in our business.

Not only in Italy, by the way, but also in Taiwan. We’re making project also to expand in Taiwan.

Stefano Ferricci, CEO, Technoprobe: Yeah. And about the h HBM testing. So the the here are the one of the problem that everybody’s facing is how relate to to do the assemble all all these chips. Not the way that they without losing yield or without throwing away all the other ones. This is really the the main point.

And this is an opportunity of course, for us because testing part of the assembly, the part of these chips already assembled or the whole all stack already assembled is is very close. I mean, require technologies that are much closer to a logic technology for ProCart rather than memory technology for ProCart. Typically, the memory card is testing many can be thousand of chips in parallel. K? But it’s not a real good no good die test.

K? So if we are going the direction that really we need to test the subassemblies or a singulated die chip or a mix of this, this is for sure an opportunity for for us, for the type of technology we can provide.

George Brown, Analyst: Okay. Brilliant. Thanks, guys.

Moderator: Thank you, mister Brown. Next question comes from miss Frangillo. Please, the floor to you. Miss Frangillo, I kindly ask you to unmute your line.

Frangillo, Analyst: Can you hear me?

Moderator: Yes. We can now. Thank you.

Frangillo, Analyst: Thank you. Good afternoon, everyone. Two questions on my side. The first one is on the Forex impact for 2026. I know that it could be early, but could you help make a simulation also on 2026 considering that market expectations are for further deterioration of the euro dollar rate next year and therefore still an adverse comparable basis for next year?

And the second question is if you could share your initial thoughts on the tariff evolution and also on whether procards could be considered semiconductor equipment and therefore eventually be exempted by The U Euro US agreement. Thank you.

Stefano Beretta, CFO, Technoprobe: Thank you. So you touched two two very delicate points. So FX and tariffs where we have not complete control. In most of cases, we have totally not controlled. So starting from from the FX impact on 02/1926, What I see is the same information you can easily see from all the banks and all the FX offices around the world.

So the deterioration is expected to be in the region of 01/20 to one twenty five, this number are very far to be, you know, achieved right now. So you see the change if you look at the chart that just projected on the screen, you see that every quarter, there is a deterioration of more than 5% on the currency in very in very few days, basically. So the scenario can change literally from one day to another and also depending on many decision decision on a macroeconomic level. You can imagine, you know, the federal the the Fed can cut the rates. I don’t know if under pressure or with no pressure.

Nobody knows. Probably now, they are expected to cut in September once and maybe another cut in December. And they said maybe it was it could happen. It could not. Central European Bank could do the same.

They are now expected to make a cut, only one by your end. So and then there are many other elements that could affect the trend of the rate. But as you know, we are usually very prudent when we make estimates. So in case we will see another deterioration, we can ensure you that we will incorporate. We will not bet again the markets.

So we do not speculate. We follow the most available information that are available on the market. So about tariffs, I’m confused as you are. So as you have seen a few hours ago, president Trump declared an intention to raise 100 percent tariffs on semiconductor. So I don’t know how this could be reliable with all the exceptions you mentioned, but in a pretty confused and, you know, not specific way.

So it it’s very hard also to predict what they have in mind. What we can say now is what we see formally on the papers. And what we see now is a 15% impact, which is what is currently in place. This impact is not a direct impact on our business, meaning that we are not the importer in The US. But as I explained already in other in other situation, it’s our client that imports.

That means that we could have a indirect impact in the sense that our product could be less competitive in terms of pricing compared to competitors’ products. You know, it doesn’t mean that competitors doesn’t have any impact because we have seen recent press release from one of our competitors admitting that they have a impact on tariffs, especially on the purchase of raw materials from Asia in particular. So they will have seen a higher cost impacting between 1.52.5% of gross margin. In our case, we don’t have this situation on on the side of the coast. But as I said, we can have the impact in terms of competitiveness.

But as of today, there are no signal at all for the moment to have a different competition in terms of price. So the impact now is a nil on technical business. We have, as I mentioned before, an impact on the EIS for the importation of some goods in the region of 1,000,000 impact in terms of additional cost in the first half of the year. But this 1,000,000 could be probably recovered to the clawback procedures in The US because these products have been, after the assembly in The US, been re exported to Asia. So in that case, you can have a refund.

In different time, probably twelve months, eighteen months timing for a fund, but in any case, could be neutral in the midterm. So I want to confirm currently Technoprop is not directly impacted, but could be indirectly given the pricing the customer pays.

Frangillo, Analyst: Thank you.

Moderator: Thank you, miss Frangillo. Next, we have a follow-up question from mister Giovanni Silvetti. Please, the floor to you.

Giovanni Selvetti, Analyst: Hello, guys again. I just wanted to know if there is any update in terms of m m and a, if you’re working on any new deal. I saw that you basically purchased the last 20% of well, I’m not sure if I can pronounce it right, but the pre the company where you had 80% stake before. So I was wondering if you’re scouting for any targets and if possible in in which area. Thank you.

Stefano Ferricci, CEO, Technoprobe: We are always counting for new targets, but there is nothing really in progress right now. Okay.

Giovanni Selvetti, Analyst: Thank you.

Moderator: Thank you, mister. Currently, we do not have, any more questions queued. Therefore, I have pleasure handing back over to the management team for any final comments. Thank you.

Stefano Ferricci, CEO, Technoprobe: Thank you everyone for attending today, and stay tuned for the next time. Thank you.

Moderator: Thank you very much. This presentation will now come to a close.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.