Advanced Energy Industries, Inc. (AEIS) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

our direct exposure to the highest tariff rates is limited. Further, with major facilities in Malaysia, the Philippines, and Mexico, our broad manufacturing footprint allows us to optimize production to meet customer needs. Finally, most of the products we import from Mexico into the U.S. are U.S. MCA compliant which under current rules means that they are exempt from reciprocal tariffs. Now let me provide updates on each of our markets. In the first quarter, semiconductor revenue decreased slightly from Q4, but was well ahead of plan. The better than expected results were due largely to strength at the leading edge for both logic and memory processes. We expect semiconductor demand to remain solid in the current quarter, supported by continuing investment at the leading edge. We continue to see strong customer pull for our next-generation EVOS, Everest, and NavX products, and have cumulatively shipped over 350 qualification units through the first quarter. This represents a five-fold increase from a year ago and a meaningful jump for more than 250 units shipped just a quarter ago. Our customers are incorporating these products into their next generation platforms for both logic and memory processes. We expect initial production ramps to start in the second half of this year, followed by more significant growth in 2026. In data center computing, we achieved record revenue, which more than doubled year-on-year. Multiple hyperscale design wins are ramping to volume in 2025. We expect data center revenue to grow in the second quarter and into the second half of the year. Our new products, which feature high reliability, high efficiency, and high power density, are a good fit for power-hungry AI data centers. Our focus on high-end opportunities has yielded deeper partner...