Nova at Cantor Fitzgerald: Strategic Growth and Market Leadership

On Tuesday, 11 March 2025, Nova Measuring Instruments Ltd (NASDAQ: NVMI) presented at the Cantor Fitzgerald Global Technology Conference, highlighting its strategic performance and future outlook. Despite challenges in the semiconductor industry, Nova reported robust growth and outlined plans to capitalize on technological transitions. The company’s performance in 2024 was notably strong, with a 30% year-over-year increase, surpassing the overall market growth.

Key Takeaways

• Nova’s revenue grew by 30% in 2024, outpacing the mid-single-digit growth of the WFE market.
• The company expects a $500 million revenue opportunity from the gate-all-around transition by 2026.
• Advanced packaging revenues more than doubled in 2024, making up 15% of total revenues.
• Nova’s financial model projects gross margins of 57% to 59% and operating margins of 27% to 31%.
• The company is focused on innovation and R&D to maintain its leadership position in the market.

Financial Results

• 2024 Performance: Nova achieved a 30% increase in revenue, outstripping the WFE market’s mid-single-digit growth.
• Financial Model:

- Gross margin: 57% to 59%

- Operating margin: 27% to 31%

• Advanced Packaging:

- Revenue more than doubled, accounting for 15% of total revenue.

Operational Updates

• Market Position:

- Nova operates across trailing-edge, leading-edge, foundry, memory, and advanced packaging segments.

- The company boasts an install base of approximately 6,400 at customer sites.

• Material Metrology Business:

- Customer evaluation processes range from six to twenty-four months.

• Syntronix Acquisition:

- Syntronix holds a 10% market share in the $200 million wafer-level packaging market.

Future Outlook

• 2025 Growth:

- Nova aims to outperform the WFE market, driven by gate-all-around transitions and advanced packaging.

• Material Metrology:

- Significant revenue is expected in 2026.

Q&A Highlights

• Gate-All-Around Transition:

- Anticipated $500 million revenue opportunity by 2026.

• Advanced Packaging:

- Current revenues are primarily from the logic side.

• China Sales:

- Strong demand in the first half of the year, with potential declines later.

In conclusion, Nova Measuring Instruments Ltd’s presentation at the Cantor Fitzgerald Global Technology Conference underscored its strategic growth and market leadership. For a detailed review, please refer to the full transcript below.

Full transcript - Cantor Fitzgerald Global Technology Conference:

Matt Prisco, Analyst, Kantor: So welcome all. I’m Matt Prisco with Kantor.

And today, we have the pleasure of chatting with Guy Kisner, CFO of Nova. Thank you for joining us today, Guy. Maybe we can kick off the conversation with just a quick overview of Nova for those who may be, less familiar with the story.

Guy Kisner, CFO, Nova: Thank you. And, we are happy to be here. Thank you for inviting us. So whenever you are not familiar with Nova, Nova is offering advanced metrology solution for the semiconductor industry. As the semiconductor fabrication becoming much more complex over time with new structures, new materials introduction, there is increased demand for a metrology solution and to Nova offerings.

The overall story of Nova is that we are widely spread in the semiconductor industry. We are selling to trailing edge, leading edge foundry memory, advanced packaging. And actually today, you will not find any new foundry that’s being built today, new fab that doesn’t use equipment from Nova. Our offering include a variety of products through our three product divisions. The first one is our dimensional metrology division that is offering optical CD solutions with our two product lines, the integrated metrology and the standalone optical CD.

The second division is our material metrology division. And this division is quite unique because we are the only company today that offers, in line metrology solution for the materials. And we have there are three product lines. We have the, Veriflex, Ellipson, and Metrio. The third division is our chemical metrology division that’s actually measuring the chemicals that flowing in into the fabrication and actually measuring the chemicals before they touch the wafer.

So this is on the product side. On top of it, we have about 20% of our revenues coming from the services business. We have today, 6,400 active install base at the customer sites that’s actually measuring the wafers as we speak. And they are generating this installed base actually generating reoccurring revenues through service contract, time and materials, and value added services. Generally, I think if we will look on Nova over time, you will see the true investment in innovation, customer relationship, and the right acquisitions.

We were able to outperform the market. And actually, if you will look on our performance for the last twenty years, you will see that every four to five years, the company is able to double its revenues and actually outperform the market. In terms of financial model, we have a gross margin between 57% to 59%, and operating margin model between 27% to 31%. So this is really high level overview.

Matt Prisco, Analyst, Kantor: And now we can deep dive into specific with the questions. Mike, that’s a perfect backdrop. Thank you. So I’d like to open my questions with the 2025 backdrop and potential growth for the year following last quarter’s solid bean raise. You have a robust backdrop in leading edge and in co ops.

You have potential improved spending and memory throughout the year. So is it fair to think this setup kind of lends itself to sequential growth through the year? Maybe just walk us through the puts and takes there.

Guy Kisner, CFO, Nova: So yes, 2024 was a great year for Nova. We finished with growth of 30% increase year over year where the environment of the overall WFE increased by mid single digits. And when we’re looking on the 2025, at this point of time, we are quite optimistic about the year. I think there are two main drivers that will drive the WFE as a whole, and it’s right in the sweet spot where we operate. The first one and the biggest one, as you all know, is the gate all around transition.

This transition this kind of transition happens once in a decade. We worked very hard in the last two, three years in order to improve our positioning with each one of the four customers that are pushing for this gate all around transition. So the gate all around, what we start to see is that in 2024, there was just initial orders of building the pilot lines. But the majority of the investment we will see in 2025 and 2026, where some of the customers will move to the high value manufacturing during 2025. And we are very looking forward for that.

If we will look on the last two years, the majority the investment WFE was driven by the trading edge. And now starting from the second half to 2024, we are moving to advanced nodes investments. And the gate all around, it’s a major growth driver for 2025. The second driver that we’re all looking for that as well is the advanced packaging space. 2024 was a great year for us on the advanced packaging space, where our revenues from this segment more than doubled.

And we grew to 15% of our revenues coming from the advanced packaging space. And the trend towards 2025 will continue. What we see now, the investment in the packaging space in the logic side is quite strong this year. Also, HBM continuing to invest. So, really, these are the two drivers that we’re excited about and this is why we’re optimistic.

On top of that, there is DRAM investments that we see them picking up. Obviously, a lot of it relate to HBM, but also capacity additions. And NAND, that was quite muted for the last two years, we hope that we will start seeing investment by the end of twenty twenty five. So taking all of this into consideration, we expect Nova to grow in 2025 and outperform the WFE as a whole. Perfect.

So I’d like to next move over to the materials metrology business and kind of understanding the process more

Matt Prisco, Analyst, Kantor: than anything. So can you walk us through that process of moving from the evaluation to high volume manufacturing? The time it takes, from the start of evaluation to selection, what’s your typical win rate that you’ve been experiencing? And how long from selection before customers start taking tools and actually producing wafers with those tools?

Guy Kisner, CFO, Nova: So the first step usually, engagement with the customer, telling about the product, what kind of application he can solve, hearing what challenges the customer having. And the first step will be a demo with the customer. So we are getting wafers from the customers, and our application team is actually showing the customer how we are solving this unique application that he has in his mind. This process takes about six months working with the customer, showing the results, and actually, demonstrating the capability. Once you show to the customer that you you have real ability to solve his application, the next step will be the evaluation process.

And this is where the real investment starting to, when we’re starting the real investment from our side. Because first of all, we are moving the actual tool to the customer side, installing it. We have a dedicated team that’s actually supporting this evaluation, and the process takes about six to twenty four months. And it really depends on the, number of application, how disruptive the technology that you’re deploying. You know, with the disruptive innovation, then the customer for the first time sees what is the benefits that they bring.

And it happens a lot, on the material metrology side. So this process takes about six to twenty four months. Usually, the success usually, the success rate at this point of time is quite high given the fact that you already passed the demo phase and we’re on evaluation. And the investments, it’s not just from our side. It’s also investment from the customer side.

Because when we are moving the evaluation, it’s not just the effort on our side. The customer need to allocate space for this tool. It’s need to, allocate dedicated team in order to support this evaluation. So really investing in that a lot as well. And once you have, you know, dedicated the team from his side, the resource that he investing, so, the, moving to evaluation success rate is quite high at this point.

In terms of revenue, and shipment as you asked, they usually once you have the successful evaluation, the customer is buying the tool that he was evaluating. So the revenue is quite quick because the tool is already there. It’s just an acceptance and eval buyout, PO. And the question is the next step. Right?

How the proliferation was going to happen, the utilization of the tool, the capacity additions, and so forth. So this is the next phase. But, so this is more or less the process.

Matt Prisco, Analyst, Kantor: I guess it seems like a good spot then to move to the next phase quickly. With Veriflex, I know you guys started with one to two tools per fab and then I believe roughly moving to eight tools over time over the kind of course of a decade. So as we think about the potential ramps in Metreon and Ellipse in, how do you expect those opportunities, those ramps to look versus Veriflex? Now that you’ve kind of established yourself as more of a partner,

Guy Kisner, CFO, Nova: could we see an acceleration of that ramp of more tools per fab? So usually when you need to demonstrate and actually penetrate with innovative metrology into the space, usually you need to have two factors. You need to be able to solve critical applications to the customer that nobody else is able to solve them. And the second criteria is actually being able to, show a measurable value to the customers. Both Ellipson and Metrion have these criterias.

So we know what kind of capabilities we have on our end. Now regarding the VeloFix, you’re absolutely right. We moved from one to two tools per fab now to eight tools per fab in specific customers. But we are way far for reaching the full potential of this Veraflex tool, and we are working very hard in order to extend it even further. Regarding the, Elipson and Metrion, I think what is coming on our way is is the fact that there are many inflection points in the industry today that pushing the customers to qualify this kind of innovative technologies.

We have the gate all around, the CFET, the four f square, the, three d the three d DRAM. There are many inflection point in the industry that happening right now. And this actually pushing and accelerating this kind of qualification, and the adoption of, this tool. I can say that usually what drive the increase of number of tool per fab is the utilization of those, tools. So usually what is happening, you’re you’re evaluating a specific application.

Right? And then, the customer is starting to use the tool. Now when he bought the tool and he had it on-site, what usually happen when he has different challenges and he wants to improve the yield, what he’s doing is starting to explore this kind of application with the new tool that he have. And usually, it’s adding much more application to the tool. And by that, increasing the, the the number of application, increasing the utilization of the tool, and then you are adding, you know, you are increasing your attach rate to the capacity expansions.

So this is really the key, the number of applications that the customer will see. And we, I’m sure we are sure that both Alexon and Metrcon have those capabilities. And within that, how important is the

Matt Prisco, Analyst, Kantor: the next gen of each tool? If you look back, I believe Veriflex is now on its fourth generation system. Right. So maybe you could walk us through what you typically see in terms of, you know, ASP improvements, throughput increases, or just the the expansion of different applications. How important is that, you know, new technology?

Guy Kisner, CFO, Nova: It’s very important. I can tell you that in order to drive higher ASP, you need to have three three, major value creation to the customer. It’s precision. It’s, solving application critical application. And this is productivity, as you mentioned, and precision.

So those components, what actually allowing you to extend ESP, we are investing more than 15% of our revenues in r and d in order to make sure that we have a clear roadmap for our solutions. And in order to to do that, it’s actually allowing us with every new tool that we are introducing, bringing those precision capabilities and productivity ability. And by that, we are able to extend the ASP. I can tell it’s usually it’s not linear. So for example, let’s say for an example that you have a tool, new generation, that the throughput is increasing by 20%.

So usually, you are not increasing USP by 20%. You need to share the value with the customer. So usually, it will be extended less than that, but this is definitely the trend that we, we are working on and focusing on. Okay. And then for for Metrans specifically, you talked about evaluations with two customers and expecting orders later in

Matt Prisco, Analyst, Kantor: the year. So based on the backdrop you just said, are we to think that these evaluations are kind of kind of one tool in a fab right now? They’re evaluating it. Once they say, yes, they buy that tool and then you have to worry about shipping more. So 2025 revenue is kind of more muted, ’26 is the real ramp?

Or with these orders, do you expect a more meaningful ramp in the second half if evaluations go as expected?

Guy Kisner, CFO, Nova: So in 2025 for Demetrion, this really, we we have some strategic evaluations, as you mentioned, with the top five, players in the semiconductor. So, obviously, they will be successful. It’s a huge step function for us. So, and just lately, we announced the PR that’s saying that the Metrion was adopted by a leading memory customer for the, for the memory, for the DRAM and NAND. And we are working, as you mentioned, with other players in order to qualify that.

So, yeah, the 2,025 is really about doing these strategic evaluations and qualifying to these leading players. And the majority of the revenue we’ll see in 2026. Okay. And now Ellipse,

Matt Prisco, Analyst, Kantor: and correct me if I’m wrong, I believe is a little bit ahead of where where Metrion stands today in terms of customer evaluations and all that. Correct. And you’ve started talking about repeat orders there. So can you maybe offer more color on this dynamic? Is this driven by customers expanding this one tool and one fab across all fabs?

Or is this the customer finding new applications? Or really just anything to think about how that engagement with the customers is changing?

Guy Kisner, CFO, Nova: So actually, it’s both. Ellipson, as you mentioned already, we see first signs of proliferation on the customer side. It’s including adding more applications and increasing the utilization with the tools, and we see repeat buys on that front, and customers actually buying more tools and qualifying them. So the Ellipseon, yes, it’s in better shape, and we are seeing much more, start to see the proliferation phase, compared to the Metrium. Okay.

Now

Matt Prisco, Analyst, Kantor: you’re playing to this materials metrology opportunity with unique solutions here. You are the market. Nobody else is playing here. And as you continue to gain traction in this kind of lab to fab strategy and you’re essentially creating a market that’s becoming increasingly large and attractive. How do you think about competition over time?

How do you think about the defensibility of your offerings here?

Guy Kisner, CFO, Nova: It’s a good point. Our assumption, by the way, that eventually the competition will come because it’s very attractive market. It’s increasing as you as you said that it is. But so our approach toward this market is actually making sure that we are not standing still and not just focusing on the measurement capabilities, but also on the productivity side. And I can tell you it’s very difficult to extend those capabilities.

You mentioned the Veriflex that we are already on the fourth generation. We are investing a lot. It’s part of our strategy of investing a lot in the R and D. So we’re really trying to extend and put the bar very high. So when the competition will come, there will be, you know, a gap of a decade in order to bridge the gap in terms of productivity, the value that we bring, the precision, the repeatability.

So it’s really about, continue to invest in this product line in order to make sure that every new player that will try to come to the space, it will be very difficult to breach, that aspect. And I think we we as a company have a proven use case for that. Right? The integrated metrology, on the dimensional side was actually a market that we developed. We came up with this idea and actually, introduced this approach of integrated metrology solution, and we were the first into this step.

Eventually, the today, we do have the competition in that front, but we are still the market leader. Right? And there is a huge value in our industry in the way for fab equipment area to be the first. Right? Because once you are first, you have a head start.

This is what we are doing with the material metrology. This is our strategy, and this is what we are focusing on. Makes sense. Alright. So next, I’d like to

Matt Prisco, Analyst, Kantor: kind of move over to the gate all around transition a bit. You’ve previously provided an estimate, I believe, of $500,000,000 of cumulative revenues between $24,000,000 and $26,000,000 So can you walk us through the calculus behind that $500,000,000 figure? And basically any color into how you arrive at that estimate so we can kind of better understand how

Guy Kisner, CFO, Nova: to quantify the opportunity? So as I mentioned, we worked very hard in the last two, three years in order to improve our position with each one of the four players that pushing for the gate all around transition. And we did it with both our million dollars opportunity for Nova is actually, we know, how much the wafer start is expected to be in the in the next, two years, and we know the attach rate that we have for each one of the tools. And we know that the gate all around is actually gonna increase the metrology intensity by 30%, on the same wafer stats compared to the FinFET. So for us, this kind of calculation, why we feel comfortable with this $500,000,000 estimation.

And this is of the top line level. On the bottom up process, we actually worked with our account managers to come up with a precise calculation, you know, how many tools will go to specific customer and so forth. And we came up to this $500,000,000 both from top down and from bottom up approach. So Has has conviction around that number changed over the past three

Matt Prisco, Analyst, Kantor: to six months as we see developments in the market? And maybe how do you think about risks to this figure from some companies maybe struggling with leading edge ramps or consolidation to potentially one leading edge supplier out

Guy Kisner, CFO, Nova: there? So the fundamentals didn’t change in terms of the intensity of metrology, the attach rates, and all of that. And as I mentioned, the biggest factor for us for this $500,000,000 it’s really about the number of wafer starts of this two nanometer ramp up is going to have. Now based on our understanding and again, we don’t have the visibility towards the end market, but our customers do have. And based actually, two nanometer is expected to be a stronger node than the three, and three three is a strong one.

So as long as we are talking about the same wafer stats, it doesn’t matter how it will be split, because it will be the same wafer stats, it doesn’t matter how it will be split because we do have a very good standing with all the four. It’s really a question of wafer stats and how strong the two nanometer node will be. And based on that, we, we we have a comfortable with the $500,000,000 and it doesn’t really play a part, you know, who exactly is going to produce this wafer starts eventually. Perfect. And then, just to

Matt Prisco, Analyst, Kantor: quickly clear it up, when you think about that $500,000,000 target, can you just remind us how’s that split between your three different business lines?

Guy Kisner, CFO, Nova: So we didn’t disclose the exact percentages. But I can tell you that the biggest benefit that we will see is on the dimensional metrology side with the increase in intensity and with the Prism, our most advanced stand alone optical CD tool, where we gained a lot of market share. And if you will look back on our press releases that we did in the last two years, you will see a lot of wins we had with this tool. So, dimensional metrology will benefit from this transition. And the second is obviously the material, metrology solution that we discussed earlier that also, have a lot of traction in that space.

Because gate all around, it’s not only about structure. It’s also introducing much more materials into that space. So the material metrology has a lot of benefit in that direction. So these are the two that will be much more exposed into this transition. Okay.

Perfect. And then moving to the back end opportunity, maybe can you walk us through the split between primary contributors to

Matt Prisco, Analyst, Kantor: back end within your portfolio today? And I think you’ve talked about gaining share in the back end in integrated metrology, prism, chemical metrology. Can you walk us through moving parts there? Why what is driving those share gains? And how much room is there still to run-in terms of taking more

Guy Kisner, CFO, Nova: share? Based on our analysis, the advanced packaging for us is just the beginning. You mentioned the transition from the front end to the back end of our dimensional metrology solution. And the story there is that, actually, we’ve been ready with the most with, specifically with the solution for the advanced packaging with the adjustment that we did on our dimensional metrology tools. And what is actually happening is the front end, our most advanced front end tools are being deployed on the back end of the process.

And I can give you an example of the Prism tool. So the Prism, as I mentioned, the most advanced solution that we have on the optical CD. And it has a unique information channel that today the competition doesn’t have. And using this channel, we were able to win some market share on the gate all around transition. But this information channel is actually able to solve unique applications in the advanced packaging space.

So what we see is that we are displacing different metrology solutions on the advanced packaging space on applications such as topography, edge of the wafer, TSVs, and so forth with optical CD solution. So if you are able to sell to solve the same application but with optical CD, it’s a huge cost of ownership with for the customer because you cannot compete with optical CD in terms of productivity. Right? You compete you cannot compete with the light. Mhmm.

So this is the fastest, solution that we have. And then we are displacing different metrology solution that the customer was using. And this is just the beginning. Another example is the integrated metrology where, you know, the on the back end of the process, the specs of the flatness of the wafer become much more tighter. And then we see, that on the integrated metrology side, we started to see the back end CMP process starting to build the attach rate.

So this is just the beginning and this is the traction that we see on the

Matt Prisco, Analyst, Kantor: advanced packaging side. How does materials metrology potentially fold in here? Is that something that’s on the near term horizon? Like, when can we start seeing a meaningful contribution? Is there a specific catalyst you could point to in terms of some type of technology transition or something where materials metrology really starts mattering and becoming very important

Guy Kisner, CFO, Nova: in the back end? So material metrology doesn’t play in that field yet. We do see some traction with the so it’s not a story of 2025. Maybe 02/1926, we will see some, you know, more advanced, conversation around the material metrology going into the advanced packaging space. The inflection point is again introduction of new materials for HBM4, hybrid bonding and so forth will drive this, but it’s still very early in the process.

Matt Prisco, Analyst, Kantor: Okay. And then maybe breaking down this back end a bit between Coas and HBM, how do you see kind of your opportunity split between both of those? And there’s a concern right now with the market looking at the back end that the incremental capacity additions in HBM are lower in 2025, so revenues could decline for process control for HBM. And then a similar fear with TSMC doubling COOS capacity in 2025. Will COOS be the same store in 2026?

So kind of how do you see your position within each of these markets and potential growth over the next one, two years?

Guy Kisner, CFO, Nova: So the majority of our revenues on the advanced packaging side today is mainly on the the majority coming from the advanced packaging on the logic side more than on the HBM side. And on the Corbus, as you mentioned, currently based on you mentioned TSMC so they are saying that they are going to expand and they are going to invest in the next two years in the COOS. In terms of the long term, I think it’s not just the capacity additions. There are a lot of things going on in the advanced packaging space. It’s quite new.

So the customers are exploring different processes, different solution, and it’s a great opportunity for metrology companies to actually have this as a growth driver. And there are many inflection points that are happening, right, the HBM4, the hyperbonding, and all of these are actually increasing the metrology intensity. So it’s not just about the volumes and the capacity addition. There are many applications, new applications that the customers are exploring, and this should drive more metrology into that space. Okay.

Perfect. And then how

Matt Prisco, Analyst, Kantor: are you thinking about the opportunity presented through the Syntronix acquisition? I think you talked about 10% share. They currently have 10% share of a $200,000,000 market. So how are you thinking about the combined entity’s ability to capture greater share? And how quickly can new wins

Guy Kisner, CFO, Nova: ramp there? Yes. So, Centronics, it’s a small company today. They are having a solution for the wafer level packaging area that today we are not have a presence there. They have, very good capability on the engineering side.

They are capable of treating wafers, board wafer, frame wafer, two 300 millimeter to a hundred millimeter, one one fifty, different sizes, really, great engineering capabilities. Also, we are talking about optical CD solutions. So they do have unique sensors for different application that are very relevant for the, advanced packaging space. Today, they are operating in very fragmented market. Today, it’s a 200,000,000 market and there are many small companies that are competing on that space.

And as you mentioned, Syntronix holding about 10% market share in that space. But all of the market share that they hold, they are doing it with distribution. So they are not engaging with the customer. They are not pushing for the sales. They are don’t understand really the need of the customer and how their solution is really can extend their positioning.

And given the fact that Nova is becoming the biggest player in that front, because again, today there are all small players in there, and given the fact that we have very strong customer relationship, we will be able to take them to the next step, and this is the synergies that we see with the two companies. And I think also on the technological side, given the fact it’s the optical CD company, so the technological synergies between, Dimensional Metrology division and Centronics, it’s out there. We announced the closing at the January and we’re starting to work on the PMI process and we see a lot of interest from the customers about this combination.

Matt Prisco, Analyst, Kantor: When you combine the companies and especially the technology and leveraging the synergies there,

Guy Kisner, CFO, Nova: are there new market opportunities that open up beyond that $200,000,000 you discussed? Yes. So as I mentioned, for them, it’s opening the doors for customers that today they are not selling just because it’s selling through distribution. There has limitation to that. But also on our side, on the dimensional metrology, for us until today we almost didn’t sell to OSATs.

And they do have the presence on OSATs. So the combination actually unlocks some of the customer relationship also for Nova because we do have some solutions, for the advanced packaging and actually unlocking that on for the OSAT side also can create more opportunities. Perfect. Now moving to China, everyone’s favorite topic. Yes.

Matt Prisco, Analyst, Kantor: Can you maybe talk about the robustness that you’ve mentioned in the first half of twenty twenty five? What are the primary drivers there? And then while I’ve realized limited visibility into back half today, in your planning process, how are you thinking about the puts and takes for China growth kind of for the whole year?

Guy Kisner, CFO, Nova: So the majority of sales of Nova to China is really about trailing edge. All the restriction that The US Administration is putting is around leading edge. Currently, China is pushing for self sustained ecosystem. I think number one import item for China is chips, semiconductor chips. So they want the self sustained ecosystem, and they’re really far from that.

So in terms of demand, we continue to see strong demand for the first half of the year. For the second half of the year, it’s still yet to be seen given the fact that it’s just a matter of visibility. But in terms of fundamentals and the willingness of the customer and the demand, it’s there. And, again, our assumption currently is that it will not grow compared to the last 2024 numbers. And percentage wise, they are going to decline just because there are much more investments on the gate all around area and other areas in the WFE.

But in terms of dollar wise, it’s between, let’s say, flat to maybe small decline in the second half of the year, but it’s yet to be seen. Okay, perfect.

Matt Prisco, Analyst, Kantor: And maybe just walking through that regulatory environment for Novan, how do I think or how should we think about the potential direct impact to systems? If there are new restrictions, do you have to follow those restrictions to the word or is it more of an indirect impact for you guys?

Guy Kisner, CFO, Nova: So as I said, the majority of our sales is being done through a trailing edge. Mhmm. I think the US administration and the export control is more tackling the, the leading edge, right, because it’s perceived as defense related risk, and they are not trying to limit on the commercial side of things. And the export control and the regulation is not new for us because the initial was significant. The initial was in 2022.

And based on that, we established, a committee in the company, including dedicated compliance team in order to make sure that we are within these compliance standards. And again, we have three different locations, three different technologies that located in different areas such as Israel, Germany, US. And each one of these territories has its own regulation. How, you know, it’s also the dual use and the export control and everything. So we sticking to that.

But given the fact that we are going into the TrailiGage, so it’s we don’t see a significant impact. We do have limited impact given the December restrictions, but it’s limited at that point and we don’t see a real thing that will not allow us to serve the Chinese market at all. Okay. And with only a minute left, you

Matt Prisco, Analyst, Kantor: guys are hosting an Analyst Day in in only two days now, Virtual Analyst Day. What can we expect to be kind of main focus area for for this event? What what should we look forward to?

Guy Kisner, CFO, Nova: Yeah. So this Thursday, we’re going to host the Analyst Day. It’s, you’re all welcome to join. It’s a virtual one. And it’s the first time we are doing the Analyst Day since 2022 when we introduced the 1,000,000,000 plan.

So it’s a great opportunity to talk about what changed, what are the building blocks that we achieved. And we will talk about the strategy, about our innovation, what are the products that’s coming in, how we see the market. And we are going to talk also about the financial model in length. So you’re all welcome to join. Wonderful.

Well, perfect place to end there. Thank you

Matt Prisco, Analyst, Kantor: so much for your time, Guy. Thank you.

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