ACM Research Inc - Ordinary Shares (ACMR) 7 Aug 24 2024 Q2 Earnings call transcript

ACM Research, a leading provider of semiconductor equipment solutions, recently held its earnings call for the second quarter of 2024. The call, led by CEO David Wang, provided insights into the company's financial performance and strategic direction. Here are some of the key takeaways from the call.

Strong Financial Performance

ACM Research reported a significant increase in revenue for the second quarter, reaching $202.5 million, up 40% from the previous year. This growth is attributed to strong demand for the company's cleaning, plating, and furnace products, particularly in the single-wafer cleaning segment. The company's gross margin also improved to 48.2%, up from 47.6% in the previous quarter. ACM Research ended the quarter with approximately $367 million in cash and time deposits, demonstrating a positive cash flow from operations.

New Products and Market Expansion

ACM Research highlighted its strategic focus on new product development and market expansion, particularly in the area of panel-level packaging. The company announced the launch of its Ultra ECP ap-p plating tool for fan-out panel-level packaging, which is expected to participate in the growing demand for AI solutions. The company also revealed plans to expand its facility in China and invest in a new R&D facility in Oregon, further underscoring its commitment to innovation and market growth.

Competitive Positioning and Market Opportunities

During the call, ACM Research emphasized its competitive position in the semiconductor equipment market, particularly in China. The company has become a world-class multi-product company with competitive products in plating and furnace markets. ACM Research also sees significant opportunities in the high bandwidth memory market, particularly in Taiwan, where it is engaging with multiple customers for back-end packaging solutions. The company believes it can capitalize on the growing trend towards AI and advanced packaging technologies.

Looking Ahead

ACM Research raised its revenue outlook for 2024, projecting a range of $695 million to $735 million, up from its previous outlook of $650 million to $725 million. The company expects shipments to grow in the second half of the year, with a full-year shipment growth rate outpacing revenue growth rate. ACM Research is focused on gaining market share in Mainland China, ramping up new products, and expanding its business to new customers in the U.S., Korea, Taiwan, Europe, and other Southeast Asian markets.

Conclusion

ACM Research's earnings call provided a comprehensive overview of the company's financial performance and strategic direction. The company's strong financial results, focus on new product development, and expansion into emerging markets position it well for future growth. With a clear focus on innovation and market opportunities, ACM Research is well-positioned to capitalize on the growing demand for semiconductor equipment solutions, particularly in the areas of AI and advanced packaging.