11 unchanged sentences
Consolidation and partnering within the semiconductor manufacturing industry has resulted in a small number of customers representing a substantial portion of our business.
−Removed: Our ten largest customers accounted for 48.2% of total revenue for the nine months ended September 30, 2024.
−Removed: Demand for our capital equipment in the first nine months of 2024 has been relatively flat.
−Removed: The overall mature process segment represented 98% of our shipped systems revenue, with 1% of shipments to advanced logic and 1% of shipments to dynamic random-access memory (“DRAM”).
−Removed: Power device shipments comprised 58% of total systems revenue with the general mature segment representing 32%, and image sensors at 9%.
+Added: Our ten largest customers accounted for 67.3% of total revenue for the three months ended March 31, 2025.
+Added: Sales of our systems in the first three months of 2025 were down compared to the same period in the prior year, as customers have moderated the pace of investments into mature process node technologies.
+Added: The overall mature process segment represented 86% of our shipped systems revenue, with 14% of shipments to dynamic random-access memory (“DRAM”) applicaitons.
+Added: Power device shipments comprised 39% of total systems revenue with the general mature segment representing 47%, which includes image sensor applications starting with first quarter 2025 results.
+Added: For the three months ending March 31, 2025, the geopolitical environment surrounding trade and tariffs did not have a meaningful impact on our financial results.
+Added: It is difficult to predict the exact timing and magnitude of the tariffs, the duration for which the tariffs will be in place, and the impact the tariffs will have on our customers and suppliers.
+Added: We are in the process of developing plans to reduce the potential impact of these tariffs by leveraging our global supply chain and manufacturing footprint.
Critical Accounting Estimates
8 unchanged sentences
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Total revenue
16 unchanged sentences
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
2 unchanged sentences
Total revenue
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: Product revenue, which includes systems sales, sales of spare parts, product upgrades and used systems, was $246.8 million, or 96.2% of revenue, during the three months ended September 30, 2024, compared with $283.4 million, or 96.9% of revenue, for the three months ended September 30, 2023.
−Removed: The $36.5 million decrease in product revenue for the
−Removed: three-month period ended September 30, 2024, in comparison to the same period in 2023, was primarily driven by a decrease in system sales.
+Added: Product revenue, which includes systems sales, sales of spare parts, product upgrades and used systems, was $182.8 million, or 94.9% of revenue, during the three months ended March 31, 2025, compared with $243.4 million, or 96.5% of revenue, for the three months ended March 31, 2024.
+Added: The $60.6 million decrease in product revenue for the three-month period ended March 31, 2025, in comparison to the same period in 2024, was primarily driven by a decrease in system sales.
Deferred revenue includes payments received in advance of system sales as well as deferral of revenue from systems sales for installation and other future performance obligations.
−Removed: The total amount of deferred revenue at September 30, 2024 and December 31, 2023 was $164.0 million and $210.9 million, respectively.
−Removed: Services revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $9.7 million, or 3.8% of revenue, for the three months ended September 30, 2024, compared with $9.0 million, or 3.1% of revenue, for the three months ended September 30, 2023.
+Added: The total amount of deferred revenue at March 31, 2025 and December 31, 2024 was $139.3 million and $138.2 million, respectively.
+Added: Services revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $9.7 million, or 5.1% of revenue, for the three months ended March 31, 2025, compared with $9.0 million, or 3.5% of revenue, for the three months ended March 31, 2024.
Although services revenue typically increases with the expansion of the installed base of systems, it can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the need for equipment service.
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: Product revenue was $735.6 million, or 96.1% of revenue, during the nine months ended September 30, 2024, compared with $795.0 million, or 96.9% of revenue, for the nine months ended September 30, 2023.
−Removed: The $59.4 million decrease in product revenue for the nine-month period ended September 30, 2024, in comparison to the same period in 2023, was primarily driven by a decrease in system sales.
−Removed: Services revenue was $29.8 million, or 3.9% of revenue, for the nine months ended September 30, 2024, compared with $25.3 million, or 3.1% of revenue, for the nine months ended September 30, 2023.
Revenue Categories used by Management
9 unchanged sentences
Aftermarket and Systems Revenue
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: Included in total revenue of $256.6 million during the three months ended September 30, 2024 is revenue from our Aftermarket business of $55.5 million, compared with $60.9 million of Aftermarket revenue for the three months ended September 30, 2023.
+Added: Included in total revenue of $192.6 million during the three months ended March 31, 2025 is revenue from our Aftermarket business of $55.0 million, compared with $56.9 million of Aftermarket revenue for the three months ended March 31, 2024.
Aftermarket revenue fluctuates from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the sale of spare parts and demand for equipment service.
Aftermarket revenue can also fluctuate from period to period based on the demand for system upgrades or used equipment.
−Removed: The remaining $201.1 million of revenue for the three months ended September 30, 2024 was systems revenue, compared with $231.4 million of systems revenue for the three months ended September 30, 2023.
+Added: The remaining $137.6 million of revenue for the three months ended March 31, 2025 was systems revenue, compared with $195.5 million of systems revenue for the three months ended March 31, 2024.
Systems revenue fluctuates from period to period based on our customers’ capital spending.
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: Included in total revenue of $765.4 million during the nine months ended September 30, 2024 is revenue from our Aftermarket business of $170.3 million, compared with $178.5 million of Aftermarket revenue for the nine months ended September 30, 2023.
−Removed: The remaining $595.1 million of revenue for the nine months ended September 30, 2024 was systems revenue, compared with $641.8 million of systems revenue for the nine months ended September 30, 2023.
Gross Profit / Gross Margin
2 unchanged sentences
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
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−Removed: September 30,
(dollars in thousands)
3 unchanged sentences
Total gross profit
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: Gross margin from product revenue was 44.7% for the three months ended September 30, 2024, compared to 45.4% for the three months ended September 30, 2023.
−Removed: The decrease in gross margin primarily resulted from an unfavorable mix of system revenue.
−Removed: Gross margin from services revenue was (4.9)% for the three months ended September 30, 2024, compared to 12.4% for the three months ended September 30, 2023.
−Removed: The decrease in gross margin is attributable to changes in the mix of service contracts .
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: Gross margin from product revenue was 45.8% for the nine months ended September 30, 2024, compared to 44.1% for the nine months ended September 30, 2023.
+Added: Gross margin from product revenue was 48.3% for the three months ended March 31, 2025, compared to 47.5% for the three months ended March 31, 2024.
The increase in gross margin primarily resulted from a favorable mix of system revenue.
−Removed: Gross margin from services revenue was 6.2% for the nine months ended September 30, 2024, compared to 10.6% for the nine months ended September 30, 2023.
+Added: Gross margin from services revenue was 4.6% for the three months ended March 31, 2025, compared to 6.1% for the three months ended March 31, 2024.
The decrease in gross margin is attributable to changes in the mix of service contracts .
3 unchanged sentences
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
10 unchanged sentences
and professional fees, travel and depreciation expenses.
−Removed: Personnel costs are our largest expense, representing $35.5 million, or 56.3%, of our total operating expenses for the three months ended September 30, 2024, compared to $34.8 million, or 60.0%, of our total operating expenses for the three months ended September 30, 2023.
−Removed: Personnel costs were $107.2 million, or 58.9%, of our total operating expenses for the nine months ended September 30, 2024, compared to $99.3 million, or 59.6%, of our total operating expenses for the nine months ended September 30, 2023.
−Removed: The higher personnel costs for the three and nine months ended September 30, 2024 are primarily due to increases in wages and headcount as well as stock compensation expense, partially offset by a decrease in variable compensation expense.
+Added: Personnel costs are our largest expense, representing $35.4 million, or 59.4%, of our total operating expenses for the three months ended March 31, 2025, compared to $36.4 million, or 61.2%, of our total operating expenses for the three months ended March 31, 2024.
+Added: The lower personnel costs for the three months ended March 31, 2025 are primarily due to a decrease in variable compensation expense and commissions, partially offset by increases in wages, stock-based compensation, and separation program expenses.
Research and Development
1 unchanged sentence
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
2 unchanged sentences
Our ability to remain competitive depends largely on continuously developing innovative technology, with new and enhanced features and systems and introducing them at competitive prices on a timely basis.
−Removed: Accordingly, based on our
−Removed: strategic plan, we establish annual research and development budgets to fund programs that we expect will solve customers’ high value, high impact, ion implantation challenges.
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: Research and development expense was $26.4 million during the three months ended September 30, 2024, an increase of $2.3 million, or 9.6%, compared with $24.1 million during the three months ended September 30, 2023.
−Removed: The increase is primarily due to higher project and consulting expenses and higher personnel expenses associated with increases in wages partially offset by a decrease in variable compensation expense.
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: Research and development expense was $77.8 million during the nine months ended September 30, 2024, an increase of $5.8 million, or 8.1%, compared with $72.0 million during the nine months ended September 30, 2023.
−Removed: The increase is primarily due to higher project and consulting expenses and higher personnel expenses associated with increases in wages partially offset by a decrease in variable compensation expense and temporary employees.
+Added: Accordingly, based on our strategic plan, we establish annual research and development budgets to fund programs that we expect will solve customers’ high value, high impact, ion implantation challenges.
+Added: Research and development expense was $27.1 million during the three months ended March 31, 2025, an increase of $1.5 million, or 5.7%, compared with $25.7 million during the three months ended March 31, 2024.
+Added: The increase is primarily due to higher project and consulting expenses and depreciation expense.
Sales and Marketing
1 unchanged sentence
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
2 unchanged sentences
Our sales and marketing expenses result primarily from the sale of our equipment and services through our direct sales force.
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: Sales and marketing expense was $16.8 million during the three months ended September 30, 2024, an increase of $0.3 million, or 2.1%, compared with $16.5 million during the three months ended September 30, 2023.
−Removed: The increase is primarily due to higher personnel expenses associated with increases in wages and stock compensation expense partially offset by a decrease in variable compensation expense.
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: Sales and marketing expense was $51.5 million during the nine months ended September 30, 2024, an increase of $5.3 million, or 11.6%, compared with $46.1 million during the nine months ended September 30, 2023.
−Removed: The increase is primarily due to higher personnel expenses associated with increases in wages and stock compensation expense partially offset by a decrease in variable compensation expense.
+Added: Sales and marketing expense was $15.1 million during the three months ended March 31, 2025, a decrease of $2.3 million, or 13.3%, compared with $17.4 million during the three months ended March 31, 2024.
+Added: The decrease is primarily due to a decrease in variable compensation and tool evaluation costs.
General and Administrative
1 unchanged sentence
Period-to-Period
−Removed: Nine months ended
−Removed: Period-to-Period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
2 unchanged sentences
Our general and administrative expenses result primarily from the costs associated with our executive, finance, information technology, legal and human resource functions.
−Removed: Three months ended September 30, 2024 Compared with Three months ended September 30, 2023
−Removed: General and administrative expense was $19.9 million during the three months ended September 30, 2024, an increase of $2.4 million, or 13.8%, compared with $17.4 million during the three months ended September 30, 2023.
−Removed: The increase is primarily due to an increase in bad debt expense of $2.8 million partially offset by lower personnel expenses associated with a decrease in variable compensation expense.
−Removed: Nine months ended September 30, 2024 Compared with Nine months ended September 30, 2023
−Removed: General and administrative expense was $52.8 million during the nine months ended September 30, 2024, an increase of $4.3 million, or 8.9%, compared with $48.5 million during the nine months ended September 30, 2023.
−Removed: The increase is primarily due to higher bad debt expense and higher personnel expenses associated with an increase in wages and stock compensation partially offset by a decrease in variable compensation expense.
+Added: General and administrative expense was $17.4 million during the three months ended March 31, 2025, an increase of $1.0 million, or 5.8%, compared with $16.4 million during the three months ended March 31, 2024.
+Added: The increase is primarily due to professional fees and the recovery of a previously written-off receivable in the prior year period.
Other Income (Expense)
1 unchanged sentence
Period-to-period
−Removed: Nine months ended
−Removed: Period-to-period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
3 unchanged sentences
dollar against local currencies of the countries in which we operate and forward currency exchange contracts.
−Removed: Other income was $8.5 million for the three months ended September 30, 2024, compared with other income of $2.0 million for the three months ended September 30, 2023.
−Removed: The $6.5 million increase in other income (expense) compared to the same prior year period was primarily due to an increase in interest income of $2.0 million and an increase in foreign exchange gains of $7.7 million, partially offset by foreign exchange losses of $3.2 million from forward currency exchange contracts.
−Removed: Other income was $15.4 million for the nine months ended September 30, 2024, compared with other income of $4.4 million for the nine months ended September 30, 2023.
−Removed: The $10.9 million increase in other income (expense) compared to the same prior year period was primarily due to an increase in interest income of $5.3 million, an increase in foreign exchange gains of $5.1 million and foreign exchange gains of $0.5 million from forward currency exchange contracts.
+Added: Other income was $3.9 million for the three months ended March 31, 2025, compared with other income of $2.5 million for the three months ended March 31, 2024.
+Added: The $1.5 million increase in other income (expense) compared to the same prior year period was primarily due to a decrease in net foreign exchange losses of $1.4 million.
+Added: Net foreign exchange losses for the three months ended March 31, 2025 includes $1.2 million of losses related to forward currency exchange contracts, partially offset by foreign exchange gains of $0.8 million.
+Added: Net foreign exchange losses for the three months ended March 31, 2024 includes foreign exchange losses of $3.3 million, partially offset by foreign exchange gains of $1.5 million from forward currency exchange contracts.
Income Tax Provision
1 unchanged sentence
Period-to-period
−Removed: Nine months ended
−Removed: Period-to-period
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
1 unchanged sentence
Percentage of revenue
−Removed: Income tax expense was $6.8 million for the three months ended September 30, 2024, compared to $7.7 million for the three months ended September 30, 2023.
−Removed: The $0.9 million decrease was primarily due to a decrease in pre-tax income.
−Removed: Income tax expense was $20.6 million for the nine months ended September 30, 2024, compared to $16.0 million for the nine months ended September 30, 2023.
−Removed: The increase was primarily due to a decrease in the benefit received from share-based compensation.
−Removed: The effective tax rate for the three and nine months ended September 30, 2024 was less than the U.S.
−Removed: statutory rate of 21% primarily attributable to the Foreign Derived Intangible Income deduction, Federal research and development tax credits and excess tax benefits from share-based compensation.
−Removed: The deferred income taxes of $58.9 million and $53.4 million as of September 30, 2024 and December 31, 2023, respectively, reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards.
−Removed: As of September 30, 2024, we have recorded a $12.1 million valuation allowance in the U.S.
−Removed: against certain tax credits due to the uncertainty of their realization.
−Removed: Realization of our net deferred tax assets is dependent on future taxable income.
−Removed: We believe it is more likely than not that such assets will be realized;
−Removed: however, ultimate realization could be impacted by market conditions and other variables not known or anticipated at this time.
+Added: Income tax expense was $4.5 million for the three months ended March 31, 2025, compared to $7.4 million for the three months ended March 31, 2024.
+Added: The $2.9 million decrease was primarily due to a decrease in pre-tax book income.
+Added: The ETR for the three months ended March 31, 2025 was less than the U.S.
+Added: statutory rate of 21% primarily attributable to Foreign Derived Intangible Income deduction and Federal research and development tax credits.
+Added: The reported ETR for the three months ended March 31, 2025 was 13.6% compared to 12.5% for the respective 2024 period.
+Added: The increase in the reported ETR is primarily related to a decrease in pre-tax book income and stock-based compensation.
Liquidity and Capital Resources
−Removed: At September 30, 2024, we had $120.1 million in unrestricted cash and cash equivalents and $459.3 million in short-term investments, in addition to $6.7 million in restricted cash.
+Added: At March 31, 2025, we had $184.0 million in unrestricted cash and cash equivalents and $403.1 million in short-term investments, in addition to $7.6 million in restricted cash.
Management believes that maintaining a strong cash balance is necessary to fund a continuing ramp in our business which can require significant cash investment to meet sudden demand.
1 unchanged sentence
Our liquidity is affected by many factors.
−Removed: Some of these relate specifically to the operations of our business, for example, the rate of sales of our products, and others relate to the uncertainties of global economic conditions, including the availability of credit and the condition of the overall semiconductor equipment industry.
+Added: Some of these relate specifically to the operations of our business, for example, the rate of sales of our products, and others relate to the uncertainties of global economic conditions, including tariff programs implemented in countries in which we operate as well as the availability of credit and the condition of the overall semiconductor equipment industry.
Our industry requires ongoing investments in operations and research and development that are not easily adjusted to reflect changes in revenue.
1 unchanged sentence
Stock repurchases, as discussed below, also reduce our cash balances.
−Removed: During the nine months ended September 30, 2024 and 2023, we generated $128.0 million and $91.3 million, respectively, of cash related to operating activities.
−Removed: Investing activities for the nine months ended September 30, 2024 resulted in cash outflows of $117.8 million, $7.5 million of which was used for capital expenditures and $433.9 million of which was used to purchase short-term investments, offset by $323.6 million related to maturities of short-term investments.
−Removed: Investing activities for the nine months ended September 30, 2023 resulted in cash outflows of $74.2 million, $10.5 million of which was used for capital expenditures and $271.6 million of which was used to purchase short-term investments, offset by $207.9 million related to maturities of short-term investments.
−Removed: Financing activities for the nine months ended September 30, 2024 resulted in a cash usage of $56.6 million.
−Removed: During the first nine months of 2024, (i) $45.4 million in cash was used to repurchase our common stock, (ii) $11.4 million was used for payments to government tax authorities for income tax withholding on employee compensation arising from the vesting of RSUs, where units are withheld by us to cover taxes, and (iii) $1.1 million was used to reduce the liability under the finance lease of our corporate headquarters.
−Removed: These amounts were partially offset by $1.2 million of proceeds related to the purchase of shares under our 2020 ESPP during the first nine months of 2024.
−Removed: In comparison, financing activities for the nine months ended September 30, 2023 resulted in cash usage of $53.2 million, of which (i) $37.5 million related to the repurchase of our common stock (ii) $15.8 million related to payments made to government tax authorities for income tax withholding on employee compensation arising from the vesting of RSUs, and (iii) $0.9 million relating to the reduction of our financing lease liability.
−Removed: These amounts were partially offset by $1.0 million of proceeds related to the purchase of shares under our 2020 ESPP and exercise of stock options during the first nine months of 2023.
−Removed: As of September 30, 2024, we had a security deposit of $5.9 million related to the lease of our corporate headquarters in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet.
+Added: During the three months ended March 31, 2025 and 2024, we generated $39.8 million and $42.2 million, respectively, of cash related to operating activities.
+Added: Investing activities for the three months ended March 31, 2025 resulted in cash generated of $40.5 million, $5.0 million of which was used for capital expenditures and $252.5 million of which was used to purchase short-term
+Added: investments, offset by $297.9 million related to maturities and sales of short-term investments.
+Added: Investing activities for the three months ended March 31, 2024 resulted in cash outflows of $55.7 million, $1.6 million of which was used for capital expenditures and $145.1 million of which was used to purchase short-term investments, offset by $91.1 million related to maturities of short-term investments.
+Added: Financing activities for the three months ended March 31, 2025 resulted in a cash usage of $20.1 million.
+Added: During the first three months of 2025, (i) $18.2 million in cash was used to repurchase our common stock, (ii) $1.6 million was used for payments to government tax authorities for income tax withholding on employee compensation arising from the vesting of RSUs, where units are withheld by us to cover taxes, and (iii) $0.3 million was used to reduce the liability under the finance lease of our corporate headquarters.
+Added: In comparison, financing activities for the three months ended March 31, 2024 resulted in cash usage of $18.1 million, of which (i) $15.0 million related to the repurchase of our common stock (ii) $2.7 million related to payments made to government tax authorities for income tax withholding on employee compensation arising from the vesting of RSUs, and (iii) $0.4 million relating to the reduction of our finance lease liability.
+Added: As of March 31, 2025, we had a security deposit of $5.9 million related to the lease of our corporate headquarters in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet.
We believe that based on our current market, revenue, expense and cash flow forecasts, our existing cash and cash equivalents will be sufficient to satisfy our anticipated cash requirements for the short- and long-term.
Commitments and Contingencies
−Removed: Significant commitments and contingencies at September 30, 2024 are consistent with those discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 16 to the consolidated financial statements included in our 2023 Form 10-K.
+Added: Significant commitments and contingencies at March 31, 2025 are consistent with those discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 16 to the consolidated financial statements included in our 2024 Form 10-K.
Quantitative and Qualitative Disclosures about Market Risk.
−Removed: As of September 30, 2024, there have been no material changes to the quantitative information about market risk disclosed in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” included in our 2023 Form 10-K.
+Added: As of March 31, 2025, there have been no material changes to the quantitative information about market risk disclosed in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” included in our 2024 Form 10-K.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.