ACM Research, Inc. Q3 FY2025 earnings call

• David Wang reported strong Q3 results with revenue growth of 32% to a new quarterly record. Highlights included innovation in advanced packaging with plans to ship first panel-level packaging system in Q4, high-temperature SPM platform achieving industry-leading performance, shipment of first KrF high-throughput Track platform. ACM Shanghai completed second capital raising on STAR Market raising net proceeds ~$623 million, funds to be used for investment in Lingang mini-line, expanding global production capacity, and accelerating R&D. Lingang production and R&D center fully up and running, Oregon site to allow customer wafer testing on ACM tool.

For the third quarter of 2025, revenue was $269 million, up 32% year-over-year. Revenue from single-wafer cleaning, Tahoe and semi-critical cleaning tool grew 13% and represented 68% of total revenue. Revenue from ECP, furnace and other technology grew 73% and represented 22% of total revenue. Revenue from advanced packaging, which excluded ECP but including service and spell was up 231% and represented 10% of revenue.

• Narrowed 2025 revenue outlook to $875 million to $925 million vs prior range of $850 million to $950 million, implying 15% year-over-year growth at midpoint. Expect R&D in 14% to 16% range of sales, sales and marketing in 8% range, G&A in 6% range for 2025. Effective tax range expected in 7% to 8% range for 2025.

• Some customers asking for delay in shipments for Q1 next year. Certain parts shortage affecting full completion of orders, though efforts are being made to replace parts and use domestic made-in-China parts. Inventory write-downs with a portion related to aging of raw materials and some finished goods at own facility.

Q: Can you talk about the shipments and the growth there? Are there any factors, puts and takes in terms of what we should expect in terms of your visibility in the next 4 quarters?

A: David Wang said some customers asking for delay for maybe Q1 next year and certain parts shortage, but products probably still get into Q1 shipment and next year's shipments still expected to grow. Mark McKechnie added some newer products will fall into next year vs this year.

Q: The 300 bps impact from inventory write-down. What's the reason for writing down?

A: Mark McKechnie said inventory write-down related to aging of raw materials and some finished goods at own facility.

Q: Do you think you may be missing out some near-term opportunities due to focusing on innovation?

A: David Wang said ACM is in best performance in SPM process, customers desire best performance, and innovation products are heavily patented, so confident in gaining market share and maintaining gross margin.

Q: Give color on what you expect for MOCVD next year and update on SK Hynix.

A: David Wang said focusing on PECVD, expecting PECVD to contribute revenue next year, and Hynix is a long-term customer with multi-tool engagement including cleaning and other products, and panel packaging tool is of interest to Hynix, and cleaning tools are engaged with Hynix.