Technoprobe Spa U/Adr (THNBY) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening and thank you for joining us. Together with Stefano Beretta, our CFO, I will go through 2024 nine-month results and guidance for the last quarter of this year. As usual, Q&A session will follow at the end of the presentation. Results achieved in the third quarter are in line with guidance shared in August confirming trends rose in our reference markets. Exposure to artificial intelligence has been the main driver of our revenue, partially offset by weakness in the automotive and industrial market. Looking at different segments, we have automotive industrial remains sluggish. Suffering of the ongoing inventory correction started in last quarter 2023, which is expected to last at least until the first half of next year. More consumer-exposed markets and related inventories are completing the process of normalization as expected in 2024. Moving to artificial intelligence, as said, it has been the biggest driver of this year and will remain the same in the short to mid-term, in the same space overall. It was powered by Edge AI and inference applications that boosted data centers. Looking at artificial intelligence devices, you see chips being split into chiplets, new architectures, and some other factors feeding device complexity. It means that we expect an overall growth in the test intensity, driven by the need of a customer to prove and test each component of chiplet during the assembly process. Also, the average selling price are higher on these complex devices. So customers are increasingly willing to perform more tests in order to avoid the cost of failure. From a technical standpoint, these are challenges that we did not have to face a couple of years ago or even last year. Now we have this new wave of complexity driving test content and test time. In...