ACM Research, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Regulatory Update: On December 2nd, U.S. added ACM Shanghai and ACM Korea to the Entity List, making it difficult for ACM Shanghai to obtain U.S. components. ACM has been localizing its supply chain.
• Business Results: Fourth quarter revenue was $223.5 million (+31.2%), full-year 2024 revenue was $782.1 million (+40.2%). Shipments: Q4 $264 million (+88%), full-year $973 million (+63%).
• Product Groups: Cleaning, plating, and advanced packaging are key growth drivers. Cleaning grew 43% in 2024, plating/furnace 46%, and advanced packaging 3%. New product cycles and customer gains contributed to growth.
• Production Facilities: Lingang Production and R&D Center opened, with production expected to shift to this facility by end of Q2 2025. Oregon facility purchased for tool demonstration and R&D.
• Dividends: Received $28.5 million in 2024 from ACM Shanghai, expecting continued dividends.

Segment Performance

• Single Wafer Cleaning, Tahoe, and Semi-Critical Cleaning: Fourth quarter revenue was $155.2 million, up 26.9%. For the full-year 2024, this category grew by 43.3% and represented 74% of total revenue.
• ECP, Furnace, and Other Technologies: Fourth quarter revenue was $51.7 million, up 60.9%. For the full-year 2024, this category grew by 46.2% and represented 90% of total revenue.
• Advanced Packaging: Fourth quarter revenue was $16.6 million, up 4.2%. For the full-year 2024, this category grew by 3.3% and represented 7% of revenue.

Guidance

• Reiterated 2025 revenue outlook: $850 million to $950 million (15% mid-point growth).
• Adjusted gross margin target to 42% to 48% (previously 40% to 45%).
• 2025 capital expenditures expected to be $65 million to $75 million.
• Outlined 2025 budgets: R&D 12%-13%, sales/marketing 7%-8%, G&A 5%-6%.

Risks

• U.S. Entity List addition impacting ACM Shanghai's supply chain from U.S. components.
• Uncertainty in customer spending and impact of export controls on customers' 2025 spending plans.

Question and Answer

Q: Reiterated 2025 revenue guidance, color on assumptions A: Revenue projection is based on customer purchase orders (POs) and expansion plans. Low-end and high-end covers visibility through Q3 with Q4 unclear.

Q: Impact of export controls on customers' 2025 spending A: Impact varies by customer; still evaluating the effect of export controls on customers' spending plans.

Q: Plating market share and front-end vs back-end A: ~30%-35% market share, with front-end and back-end roughly equal in terms of plating revenue contribution.

Q: Advanced packaging sales and breakdown by end-markets A: Advanced packaging is growing, ECP includes front-end and back-end, but no detailed breakdown by end-markets such as memory, logic, or electric vehicles.