Pdf Solutions Inc Q3 FY2025 Earnings Call

Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to discuss its financial results for the third quarter conference call ending Tuesday, September 30. As a reminder, this conference is being recorded. If you have not yet received a copy of the corresponding press release, it has been posted to PDF's website at www.pdf.com. Some of the statements that will be made in the course of this conference are forward-looking, including statements regarding PDF's future financial results and performance, growth rates, and demands for its solutions. PDF's actual results could differ materially. You should refer to the section entitled Risk Factors on Pages 16 through 30 of PDF's annual report on Form 10-K for the fiscal year ended December 31, 2024, and similar disclosures in subsequent SEC filings. The forward-looking statements and risks stated in this conference call are based on information available to PDF today. PDF assumes no obligation to update them. Now, I would like to introduce John Kibarian, PDF's President and Chief Executive Officer; and Adnan Raza, PDF's Chief Financial Officer. Mr. Kibarian, please go ahead.

Thank you for joining us on today's call. If you've not already seen our earnings press release and management report for the third quarter, please go to the Investors section of our website, where each has been posted. Bookings in the third quarter were strong as we continue to realize the benefits from our investments in product development and customer support. As we announced in the September press release, we signed an extension contract with a large customer that involves bringing our characterization vehicle infrastructure, Exensio characterization software, and eProbe machines to their manufacturing sites as well as expanding usage at their R&D site. The eProbe machines under this contract are provided under a subscription. Expanding beyond the machines they have in their R&D facility, we now have shipped two additional machines that are in the process of being installed at their first production site. Also in the quarter, we announced that we licensed Tiber AI Studio from Intel. With this license for source code, we are integrating the Tiber AI Studio's award-winning data science operations platform directly into Exensio. Tiber AI Studio enables engineers to build and manage hundreds of thousands of AI models. Coupled with Exensio's existing ModelOps, which enables model deployment in the fab and test floors, this integration is designed to enable engineers to use Exensio to both train models as well as deploy them. On a stand-alone basis, Tiber AI Studio already had hundreds of users. As we talk with our customer base, we are hearing the same message. They have great proof of concepts using AI, but scaling and maintaining large deployments remains elusive. We believe the integration of Tiber AI Studio with Exensio, which we call Exensio Studio AI, is an important capability required to close this gap. Among the Exensio contracts signed in the quarter, notably, we signed an eight-figure contract with a large IC manufacturer. We are honored this customer selected Exensio as their data analytics platform, the primary repository of manufacturing data and the platform on which to integrate their internal systems using Exensio's big data APIs. As part of this contract, they will leverage Exensio Studio AI to manage their AI deployments in production. We also closed an eight-figure contract for secureWISE with one of the largest equipment OEMs in the world, which extends and expands their existing licensing. Finally, contributions to revenue from our Cimetrix connectivity and control software were the strongest since the acquisition closed at the end of 2020. Historically, the large equipment OEMs make their own control and connectivity software; however, as our market share has expanded, more equipment is now shipped with our software installed on it than any internally developed software of any single equipment vendor. This means our customers enjoy software that is proven across more applications in the fab, test floor, and assembly facilities. As we integrate Cimetrix, secureWISE, and AI-enabled monitoring, we aim to enable equipment vendors to more easily deliver smart tools and value-added subscription services. Now, I'd like to turn to the environment. The industry is making significant investments in 3D manufacturing in front-end fabs and packaging facilities as well as product design. There is an increased geographic diversification of manufacturing locations. As those investments are ramping up, we see customers working to make the new processes, products, and facilities economically viable. It is well understood that diversifying manufacturing comes with the risk of driving up production costs and slowing innovation. We see AI-driven collaboration as a critical capability to enable cost-effective and efficient manufacturing in many of these new locations. Last month, we were invited to present our vision of AI-driven collaboration at the SEMICON CEO Summit in Arizona. My comments, which appear to resonate with the audience, outlined how the industry can leverage our secureWISE network, Sapience orchestration products, and Exensio AI to collaborate with their customers and suppliers. We have also noticed that our equipment, fab, and fabless customers are looking for ways to move from human-driven collaboration to AI-driven collaboration, in part to enable more efficient production around the world. As we look to Q4, we are preparing for our users conference and Analyst Day. Since 2020, when we acquired Cimetrix and began the journey to be a comprehensive analytics platform for the industry, we have driven results equal to or exceeding the long-term revenue growth, non-GAAP gross margins, and non-GAAP operating margin goals we set in 2019, and also have exceeded the revised goals we established in 2023. Before 2020, we had approximately 150 customers that were primarily fabs and fabless. We had few equipment companies and almost no cloud suppliers as customers. Today, we have over 370 customers, including most of the equipment industry and multiple cloud providers. It is a unique customer base as we bring analytics capabilities to every aspect of the semiconductor supply chain. Today, our cloud systems manage petabytes of data, and the secureWISE network transmitted exabytes. Our systems are used to control tens of thousands of tools. We believe the success we've achieved to date is due in large part to the relentless investments, including the acquisition of secureWISE and the build-out of our eProbe machines, both of which required us to use our balance sheet this year as investments were ahead of the growth they enabled. We expect the profits generated from these investments in 2025 will enrich our balance sheet in 2026 and beyond. Finally, I encourage you all to attend our Analyst Day and Users Conference. There you will see our customers, partners, and PDF folks talk about the needs and opportunities for AI and analytics in manufacturing. We are honored to have Mike Campbell, SVP of Qualcomm; Aziz Safa, Corporate VP of Intel; Tom Caulfield, Exec Chairman GlobalFoundries; and Jean-Marc Chery, CEO of STMicro, among others, share their perspectives. Now, I'll turn the call over to Adnan. Adnan?

Thank you, John. Good afternoon, everyone. Good to speak with you all again today. We are pleased to review the financial results of the third quarter and to bring you up to date on the progress of the business. We posted our earnings release and management report on the Investor Relations section of our website. Our Form 10-Q has also been filed with the SEC today. Please note that all of the financial results we discuss in today's call will be on a non-GAAP basis, and a reconciliation to GAAP financials is provided in the materials on our website. As you saw from our press release, with our Q3 results, we achieved another record for quarterly revenue. Our bookings for this quarter totaled over $100 million as a result of multiple large deals signed across our product portfolio of leading-edge Exensio and secureWISE. During the third quarter, our bookings were greater than the prior two quarters combined. On a year-to-date basis, for the three-quarter period, our bookings were 49% higher than the comparable period of last year. With the contracts John mentioned as well as additional business closed in the quarter, we ended Q3 with a backlog of $292 million, which is 25% higher than last quarter and 22% higher than the same period a year ago. We are pleased that we were able to grow our backlog while delivering record quarterly revenue. Our total revenue for the Q3 period came in at $57.1 million, or 10% higher than last quarter and 23% higher on a year-over-year basis. Our Analytics revenue came in at $54.7 million, or 12% higher versus the prior quarter, and 22% higher on a year-over-year basis. The growth in Analytics compared to the prior quarter was driven by business from leading-edge customers and equipment software. Integrated Yield Ramp revenue was 4% of total revenue in Q3 and was lower by $0.5 million compared to the prior quarter and up on a year-over-year basis by $0.8 million. On gross margins, we reported 76%, or slightly ahead of last quarter, and down 1% versus last year's comparable quarter, which had meaningful perpetual software revenue in that quarter. As you will recall, our long-term target for gross margin is 75%. We're pleased that we were able to be ahead of that target for this quarter. Our operating expenses in Q3 grew 3% compared to the prior quarter, primarily due to spend related to development improvements for our platform and increased variable compensation accruals due to strong results. On EPS, we were able to deliver $0.25 per share for the quarter, our strongest quarter for the year. For the first three quarters of 2025, our EPS of $0.64 is now $0.06 ahead of the comparable period of last year. We generated positive operating cash flow of $3.3 million this quarter and $6.7 million for the first nine months of this year. We ended the quarter with cash, cash equivalents, and short-term investments of approximately $35.9 million compared to the prior quarter's ending cash balance of approximately $40.4 million. We repurchased $0.2 million of our stock this quarter at a per share price of $19.55 per share. During the quarter, we invested $6.3 million in CapEx, which is lower than the $8.5 million in Q2 and the $8.2 million in Q1 of this year. 2025 has been an important investment for us, like John said, as we use significant cash on the acquisition of secureWISE and related integration expenses while only benefiting from a partial year of ownership. During the year, we also invested in building eProbe machines to meet customer demand in 2025 and 2026, without the benefit of full subscription run rate return on the investment within the year. Now with two additional machines shipped and going through qualification on a subscription model as well as the integration cost of the secureWISE acquisition largely behind us, we anticipate cash to grow over the next year. Given the strong business activity, the growth in our backlog, and the customer opportunities in front of us, we reaffirm our prior guidance of 21% to 23% annual revenue growth range for this year. As we get ready for our Analyst Day and user conference on December 3, we look forward to sharing more details about our long-term targets for the next phase of PDF growth with you at that time. We are also thankful to our customers and partners for supporting the growth we delivered this quarter and look forward to growing sequentially again in Q4. With that, I'll turn the call over to the operator to commence the Q&A session.

Our first question comes from Blair Abernethy from Rosenblatt.

Nice quarter. I just wanted to ask you a little bit about the BFI. I noticed more machines. When will the machines that are under the lease model start generating revenue? Is that sometime next year or in the first half of this year?

Yes. We are going through the deployment and qualifications of those machines. Blair, as you know, those can take anywhere from one quarter or a little bit plus or minus on that time frame. So given that we have shipped, we expect within the next quarter or the quarter after, depending on the timing of those qualifications and the customer acceptances to start converting and generating the revenue.

Okay. Great. And how does the pipeline of opportunities look for the DFI right now?

Quite strong, actually. This is John, Blair. We do have other places where we would like to be able to ship machines. That's why if you did notice, we did spend some on CapEx this quarter in part to continue building machines, which we expect shipping in the first quarter of this coming year. We are hoping to squeeze in one more shipment this year, but it may be tight, just given the timing of what we're doing to bring up the machines already. So quite strong across a handful of customers. It's not a huge market for eProbes, but there's probably between five and ten customers in the world, and we do have probably closer to five where we are actively engaged in discussion.

Okay. Great. Regarding secureWISE, you secured a large contract this quarter. How is the go-to-market strategy now that you have had it for a couple of quarters? I'd like to get a sense of how that is progressing.

We recently held a Connected Summit following the SEMICON event in Phoenix, which was different from previous years as it included not only equipment companies but also fab companies. During this conference, Intel showcased how they are implementing secureWISE as their standard connectivity platform for internal use and to assist equipment vendors. Previously, secureWISE mainly catered to the needs of equipment vendors, but we recognized a demand for connectivity to fabs due to our DEX network and extensive industry presence. After the acquisition, one of our largest fabless customers congratulated us on the capability for remote access at OSATs and fabs. The Intel contract is significant because Intel plans to implement secureWISE on every machine across their front end, back end, and test facilities, while also making it available for some level of usage with each equipment vendor. Discussions with equipment vendors who use secureWISE revealed that their main concern wasn't the platform itself, but rather the limited access to factories because it was predominantly accessible to the largest vendors. However, smaller equipment vendors were eager for access as it would enhance efficiency for both human and AI collaborations. Since acquiring the product roughly seven months ago, we have focused on broader sales within fabs and equipment vendors, fostering collaboration as discussed at SEMICON West. We've also piloted the product at OSATs and integrated it with our DEX network, which enhances security features and broadens its appeal. In the first quarter, we started selling combined contracts, and the Intel contract we announced in Q2 is just the beginning of what we expect to see in the future.

Our next question comes from Clark Wright from D.A. Davidson.

Quick question just around the customer concentration mix. Your Customer A that you guys referenced year-over-year went from 19% to 38%. I'd love to understand kind of how you're winning bigger and as well as how you're looking at using secureWISE as a potential point of the spear to expand the overall customer base?

That's a great question. We view our business in three main categories. The fabs buy almost everything from us, including secureWISE and various test vehicles like the eProbe and Exensio. These are usually large contracts, often multiple agreements with the same account, leading to customer concentration. These customers typically account for about 40% to 50% of our business each quarter. The fabless and system companies make up around 35% to 45% of our business, which includes about 100 to 150 companies. We're seeing increased interest in AI applications related to Exensio, Exensio Cloud, secureWISE connectivity, and our orchestration and Sapience products. We’ve had several wins in these areas over the past year. Lastly, equipment vendors represent around 15% of our business, which we expect to grow to about 20% in the long term, particularly with the acquisition of secureWISE. This expansion opens up opportunities with these customers, who are looking for similar access points as fabless companies. Long-term, we view fab customers as a central hub. They operate factories and manage data but rely on collaboration with both their customers and equipment suppliers to maximize the effectiveness of their machines. As you mentioned, secureWISE plays a crucial role in this collaboration. The Exensio contract from this quarter integrates secureWISE because they want to connect with their customers using the secureWISE platform. This is how we envision PDF evolving into a platform for the industry as a whole, rather than for individual companies, with secureWISE being a key component.

Awesome. Appreciate that color. And then just as it relates to the announcement made at the end of September around the landmark contract, you reaffirmed your guide for this year. Is there anything we should be considering as it relates to kind of the 2026 picture and what you can say so far around how that deal potentially sets up the company for kind of the next leg of growth?

Yes. We haven't given guidance for 2026 yet, and we'll do that as we get through Q4 and we do our Q4 call. But obviously, as we grow backlog, you asked a question about other, we do see a number of other opportunities on the horizon for the company over the next couple of quarters. We hope to have a strong 2026 on top of a very good bookings 2025.

Our next question comes from the line of Gus Richard from Northland Capital Markets.

I'm just curious on the systems you're sending to the production site. How many tools per fab do you think the customer is going to need?

Yes. I think it's early to say, Gus. Obviously, we've put two in the first site. Two is a good number because at least as these things are used in mission-critical manufacturing, if one were to go down, you would want to be able to at least route critical material to the other. So I think very rarely would it be one? I think the minimum number is two. And then the question is, with any inspection capability, how much of the dance card can you fill up? What we've noticed as we've installed machines around the world is it gets very quick to get these things filled at very high utilizations in part because they can see things that are very hard to see or maybe nearly impossible with other systems. So we'd like to go beyond the two, but right now, we think two.

Okay. So these are near production, but not necessarily in line, there’s not...

Not in product, that's in your words. No. I said the reason why they want to is if one goes down, they want to be able to continue production, right?

I just want to clarify. You have several systems being launched at the end of this year and the beginning of next. Are these systems for evaluation purposes or are they intended to generate revenue?

These are a mix. It will be a mix and then the next set of machines. There'll be a couple on eval and the remainder will be revenue machines.

We have a follow-up question from Blair Abernethy from Rosenblatt.

John, I wanted to follow up on the Hybrid AI studio. You mentioned that there are around 100 customers for it. Could you share the timeline for when it will be integrated with the Exensio platform and be ready for customers?

Sure. I mentioned that there are actually hundreds of users, which is a very small number of customers, Blair. Thank you for the clarification. We will have an integration available at the end of this quarter. We signed this contract a while back, but we had to wait to announce it due to the timing of other contracts. Discussions about this opportunity began as early as 2024, and we evaluated it in early Q1. As you can imagine, we were quite busy in early Q1, especially with the secureWISE closure, and we signed the contract towards the end of Q1. We executed some activities in Q2 and made an announcement in Q3, which is why we've been working with this code base since the entirety of Q3 and into Q4. We expect to release the first level of integration with Exensio for early access customers by the end of this quarter.

Okay. Great. And then just on the Exensio Analytics business, what does the renewal book look like as we approach the end of 2025 compared to last year? Also, in recent contract signings, have there been any changes in the term length of Exensio contracts?

Yes. Typically, term lengths are three years, though some extend to five and others are as short as one or two. Our portfolio is quite strong. The large contract we signed last quarter, which amounted to eight figures, was likely the largest stand-alone Exensio MA contract in the company's history, as previous larger contracts often included test operations or other components. At our upcoming user conference, we'll discuss how customers are eager for scalable AI-first analytics capabilities. We plan to outline our roadmap and our advancements in analytics that leverage AI, particularly in terms of processing large datasets interactively. While customers still want human interaction with data, they also require the ability to handle vast quantities of information, such as one million parameters and ten million data points. Conventional business intelligence tools struggle with this scale. With Exensio and similar tools, users are constrained by computing limitations. We're excited to showcase how we're addressing these challenges. Studio AI plays a crucial role in this process, as AI methods are necessary to navigate and prioritize parts of large datasets. In December, we will demonstrate how to operate interactively and utilize AI to handle datasets that traditionally could only be managed in batch mode, using a native AI approach and parallel processing. This transition can be likened to moving algorithms from CPUs to GPUs, allowing for greater scalability. We'll show how to effectively harness GPUs and other computing resources within an interactive analytics framework. Our customers have indicated that this is a key desire, and we anticipate several renewals this year and into next year that will benefit from these capabilities.

Okay. Perfect. Great. Yes, excellent. The other question I just had was around Sapience. Anything to report there or any progress with the partnership with SAP?

We have several activities underway with Sapience contracts. We anticipate announcing something related to Sapience in the fourth quarter concerning additional customer business. Additionally, we will reveal a new capability within the Sapience family at our upcoming user conference, aimed at fabless and system companies.

Our next question comes from the line of Clark Wright, D.A. Davidson. Yes. We've got a number of activities going on with Sapience contracts. We do expect to announce something related to Sapience in Q4 in terms of additional customer business. You will see us announce something in the Sapience family at our user conference that builds on top of Sapience with some capability targeted to fabless and system companies, which we plan to reveal at our user conference.

Awesome. Appreciate the time. Look, any findings from SEMICON West in terms of how the end markets and the health of those sound relative to the beginning of the year or your expectations?

Yes, Clark, that's a great point. SEMICON was interesting this year because it was the first time it wasn't held in San Francisco, which meant attendees were somewhat isolated in Phoenix. This created more opportunities for informal conversations. We met with many of our equipment customers as well as our fabless and fab customers. What we learned is that the build-out for AI is ongoing. Equipment customers involved in advanced packaging and those on the logic and DRAM sides have a positive outlook for 2026. They appear to be in a strong position. For our customers focused on automotive, industrials, and communications with differentiated products, there’s a sense of optimism for 2026. However, some in that sector are still facing challenges. Interestingly, those with uniquely differentiated products are feeling significantly more positive than before. There's a broader sense of enthusiasm among customers compared to three or six months ago, which was limited mostly to those in advanced nodes and packaging. While the positivity isn't universal, there’s definitely more broad enthusiasm than previously noted. Lastly, our fabless customers, as they increasingly adopt advanced packaging, are starting to see themselves as manufacturers. This shift means they need to improve their communication with OSAT and manage more complex test data. We've had extensive discussions on how they can better understand the manufacturing process. Previously, they would place an order for a wafer from the foundry and not worry much beyond the wafer sort. Now, they must ensure they have organic substrates and manage supply chains post-wafer sort, along with integrating more test insertion points effectively. We've had many conversations with customers on this topic, and I believe this area will grow as we move from a limited number of high-value, low-volume chips driving advanced packaging to a wider array of customers wanting to utilize these advanced packaging test flows.

Got it. And then in terms of Cimetrix and kind of the shadow backlog, last quarter, you kind of referenced the fact that tens of millions there, has that upticked as well this sequentially?

Yes. As I said in my prepared remarks, we had a very strong quarter. We referred to it as revenue because the booking and the revenue happened in the same quarter on the runtime licenses with secureWISE. In other words, we get designed in on the SDK and then they ship. What we noticed is, as I said in my prepared remarks, at the end of 2024, and we see it again this year, is more equipment is shipping with our software than with any of the proprietary software systems that the companies build. And I think that's really giving our software the reputation of being very robust and very applicable. A lot of our equipment companies that used to be on the front end are now trying to bring in tools to the back end. Our software is already proven in back-end assembly facilities. Our tester companies are doing much more sophisticated system-level tests with more robots, and our software is very proven with that capability too. So we do see a fair amount of activity, design activity in some of the customers evaluating our SDK. Net, when you look at our runtime licenses, Q3 was very significant. It was a good quarter for us, a very good quarter for us. We don't get a lot of visibility. So we hope to sustain that in Q4. We don't have as much visibility because we only see it when they ship. But overall, while quarter by quarter may be difficult to predict on an annual basis, the trend is quite positive as more and more equipment ships with our software, and they use our software for more functionality, which means they buy more of the Cimetrix modules.

Our next question comes from the line of Andrew Wiener, Samjo Capital.

I wanted to follow up on something you mentioned earlier. I noticed that two of your partners in the test space, Advantest and Teradyne, both reported strong results and positive outlooks. You've highlighted before that Advantest and the complexities associated with testing are strong drivers for your company. Could you elaborate on what you're observing and the potential opportunities for us? Is there a correlation between their strong shipments and our bookings or opportunities, and could you share any additional insights?

Sure, thank you for the question. Yes, you're correct, it tends to lag. We've observed this in our yield ramp business over the years as well. As I mentioned earlier, many companies are investing in 3D production, testing, and assembly, and are now figuring out how to achieve a solid return on those investments. This is part of what has influenced our bookings for the characterization vehicle and eProbe this year, as many are realizing they need to see a return on what they've already invested in. We anticipate that our advanced testing for advanced packaging will also lag behind our partners. The primary application we are focusing on, with several pilots currently running with customers, is data feed forward. This involves managing various test insertion points due to the increased number of packaging steps, which leads to testing occurring multiple times at different stages, including wafer sort, final test, and system-level test, all conducted under varying temperatures and conditions, particularly for large data center chips. Customers aim to capture forward data, typically by taking raw data, running an AI model, extracting features, and sending it to another test insertion point. As data is generated from testing, it informs decisions on whether to conduct additional tests. Initially, our strategy was to avoid modeling altogether, focusing instead on providing the infrastructure to manage data along the supply chain. We currently have pilots underway, and one customer has successfully been using this on multiple tools across various OSATs for over a year. This customer has since requested the ability to build and maintain the models as well, rather than just transferring data. We had assumed customers could manage this independently, or that there were existing systems to do so, but we found there was significant friction in getting that functionality implemented. The integration of Exensio Studio AI with Exensio ModelOps aims to assist them in not only running the model in production but also managing it throughout its lifecycle on their central servers. I don’t expect a quick resolution; instead, we’ll see incremental wins with our customers. Currently, we have several pilots in data feed forward, some already in production, and we expect this aspect to grow increasingly vital to our Exensio test business.

Okay. And would you think that would be like a 2026 sort of timeline?

Yes. I mean, the majority of that business impact will be in 2026, to be honest. This year, there may be some additional contracts won, but the revenue impact will be de minimis.

I want to clarify something. The two tools that were shipped and are in the process of qualification could potentially be qualified this quarter, but it's not certain. Can we say, Adnan, that in the past you've mentioned multiple ways to reach guidance, and you feel comfortable with the guidance even if these tool qualifications are delayed into Q1?

Yes, Andrew, exactly. I mean, any time we're looking at a quarter, particularly when we're speaking to comments such as the ones that we put in my prepared remarks about sequential growth for Q4, and also both in John's and my remarks about the reaffirmation of the 21% to 22% guidance, you're absolutely right. We're thinking about this and other ways to get there. So look, if the timing happens this quarter, great, but like John said, there are many other opportunities we're working on across the product platform portfolio that we have.

This is a little bit our timing. The timing on qualification would be towards the end of the quarter in any case. So the in or out is not a tremendous amount.

The qualification of those tools will contribute positively more towards 2026. You mentioned engaging with five customers or potential customers on DFI. Are there any memory customers included in that group, or are we still mainly concentrating on logic? If we are focusing on logic, do the two other customers that have accepted tools look at what your lead customer has accomplished and the discussions around a similar broader deployment?

Yes, it encompasses all of the aspects mentioned. With our current customers, there is growing interest in acquiring more machines as they recognize their value, particularly in manufacturing and monitoring production lines. We are also beginning to see engagement with new customers in similar sectors as our earlier clients, although they may operate at different feature sizes, specifically in logic manufacturing. We have started ongoing pilot programs with some customers, who are sending us wafers for demonstration purposes. This showcases a unique capability that allows us to reveal insights within a wafer that are difficult to observe with other methods. Additionally, as I've noted throughout the year, we have been interested in piloting for DRAM for approximately 12 to 13 months now, with wafers being sent to our facility in California. We are preparing to start shipping, but our ability to do so is limited by the readiness of at least one of those customers for shipping, given our efforts to set up these machines and manufacturing processes this year. While there are many similarities at the engineering level between our logic and memory work, the process technologies are quite different. However, we are also leveraging the unique capabilities of our machine and software.

Okay. And then lastly on the Tiber, just to clarify, we did not have any existing revenue to report. However, the press release mentioned supporting customers during this transition. Will anything that contributes to this go out and sell once the integration is complete?

Yes, that's correct. Most of our customers are not in the semiconductor sector. Some are interested in our support, and we are only in discussions with a very small number about using the stand-alone version of the product. We licensed this from Intel, which was an internal user. For them, we will offer support for both the stand-alone and integrated versions with Exensio. There is significant value in integrating it into Exensio for semiconductor customers, as the product did not provide any visualization capabilities for data, models, or results; it primarily focused on running models and algorithms. Exensio addresses this by providing a database for storing the datasets, allowing users to retain all information for future reference and recreate their work, which includes model registration and similar features. For the primarily semiconductor user base at Intel, this integrated version is very beneficial. For the limited number of non-semiconductor customers, they may opt for the stand-alone version.

There are no further questions. Ladies and gentlemen, this concludes the program. Thank you for joining us on today's call.