Hi, everyone. I'm Anthony Bencivenga, Veeco's Head of Investor Relations. I'm happy you're here with us for Veeco's 2021 Virtual Analyst event. Before we begin, let me share our safe harbor statement. Please be aware today's event is being recorded by Veeco Instruments and is copyrighted material. It cannot be recorded or rebroadcasted without Veeco's express permission. A webcast link to view this event is available on the Veeco website. Today's event includes forward-looking statements that are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. A slide including risks related to these forward-looking statements can be found in the presentation accompanying today's event and in our filings with the SEC, including the Risk Factors section in our report on Form 10-K and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. During this event, management will address non-GAAP financial measures. Reconciliations to corresponding GAAP measures of performance is also available in the accompanying slides. We have a great program planned for you today. You'll hear from Bill and several members of Veeco's executive leadership team, and then we'll conduct a Q&A session with our sell side analysts. Let's get started. I'm pleased to introduce our CEO, Bill Miller. Thanks, Anthony. Thank you to everyone for joining us today and for your interest in Veeco. We've been working on our strategy to transform the company for some time now and are thrilled to have this opportunity to explain our progress. Before we dive in, though, let me share a bit about my background. I've been at Veeco for 19 years in a variety of roles in operations, product development, and general management. At different times, I ran our MOCVD and ion beam product lines. About 3 years ago, I was appointed Chief Executive Officer. Over the course of my career, I've learned what works well and what doesn't. There's a few principles you have to get right in order to win. Keys to success, if you will. I've determined that for an organization to be successful, you've got to be committed. You've got to have the right culture in place, and you have to have an incredible team. For me, commitment is very personal. When I took on the responsibility of CEO, I knew I was making a personal commitment to our customers that their satisfaction with our products and services would be a top priority. I was making a commitment to the Veeco employees around the world that I would lead them through what was a difficult time for the company and develop a strategy for growth and prosperity. I was also making a commitment to Veeco shareholders that I would do everything I could to execute the strategy and turn around the financial performance of the company. Back in late 2018, it was becoming clear that while we as an organization were committed to customers and shareholders, the culture of the company was holding us back from realizing our full potential. One of the first major initiatives we kicked off was to measure a baseline of our culture with a company-wide Denison survey in 2019, with over 90% of our employees participating. This led to a number of internal initiatives, I'm proud to report that a follow-up survey earlier this year showed tremendous progress across the board, with notable improvements in key areas such as clarity of vision, clarity of strategic direction, ability to innovate and learn as an organization, and accountability. It was very gratifying for the entire executive leadership team to see improvements in these areas and many others, because we know an improved culture is a foundation we need to be able to execute and grow. Speaking of the executive leadership team, it's this refreshed team built over the last three years that drove our culture improvements, and it's this team that's been executing the Veeco transformation. You're going to hear from Adrian, Susan, and John. Let me spend a minute and introduce the other team members because it's their diverse backgrounds, experiences, and commitment to success that enable our ability to execute our strategy and grow the company. Peter Porshnev leads our engineering team. His background is in plasma chemistry and physics. He's authored numerous technical papers and holds multiple patents. His track record of leadership and experience from companies like Applied Materials and Cymer make him a valuable member of the team. Ajit Paranjpe is our CTO. He's a valuable advisor and brilliant technologist across many applications in the semi and compound semi fields. He has the added ability to understand these technical applications in the context of our customer needs. Monica DeMarco leads our quality and customer satisfaction organization. Her semiconductor background and focus on business process improvements are crucial as we transform the company into a semiconductor equipment provider. Mark Harris runs Veeco's global operations, including our supply chain. He brings 2 decades of operational experience from the medical and aerospace industries and is navigating a difficult supply environment currently in the semiconductor industry. Robert Bradshaw is our Chief Administrative Officer with responsibility for HR, legal, facilities, and IT. Bob is a skilled leader, another valuable advisor, and has been with Veeco for 15 years. After meeting with Adrian, Susan, and John in a short while, I'm sure you'll agree this team has the experience and diversity to take Veeco to the next level. I also feel quite confident this team is closely aligned with the company's vision, mission and core values. I know this because we worked together creating them to prepare the company to execute our growth strategy. Together, as a leadership team, and with the help of many around the company, we defined the critical principles needed to move the company forward. The output of that process is seen here. It's a set of core values centered around our customers, practicing safety, demonstrating respect, always improving, being accountable, and recognizing that diversity and inclusion make us stronger. We think of these core values as foundational to who we are. We know we can act in accordance with our core values and drive better performance for the company. Many of our core values are aligned with our environmental, social, and governance focus. We published our first ESG sustainability report last year, and we look forward to sharing our second edition, expected to be released in Q4. At this point, you've heard about our commitment to our customers, employees, and shareholders, our Veeco United culture, our strong leadership team, and the core values that will guide us going forward. Let me tell you a little bit about the company's background before I dive into the Veeco strategy we've developed over the last three years. For those who are unfamiliar, Veeco is a global provider of semiconductor capital equipment that enables our customers to address their most complex materials challenges. What differentiates Veeco and positions us to deliver best-in-class solutions is our unique portfolio of high-value technologies. With approximately 500 patents, we have technology leadership across the four end markets we serve, from semiconductor to compound semiconductor to data storage and scientific. We have over 1,000 employees worldwide who are united by a commitment to drive innovation and achieve new levels of operational excellence. Our recent strong financial performance is a direct result of our diligent, strategic, and operational execution. Looking ahead for 2021, we guided approximately $570 million in revenue or 25% growth over 2020. I would say based on what we see today, we remain confident with that guidance. It's helpful to understand our history to appreciate where we started, where we are today, and where our transformation is headed. Over the last three decades, we've continued to evolve Veeco to ensure we're well-positioned to capitalize on emerging market trends and provide our customers with solutions that meet their dynamic needs. Veeco has a long track record of success in data storage going back to the mid-1990s, demonstrating industry leadership in depositing and etching magnetic materials. Data storage industry leaders such as Seagate, Western Digital, and TDK rely on our ion beam systems to manufacture their magnetic heads, the heart of the disk drive. Given the explosion of data stored in the cloud, the complexity and number of heads per drive has been increasing recently, which has led to significant revenue growth for us over multiple years and continues to be an important part of our business. Veeco led the LED revolution with MOCVD technology. When smartphone and television LED backlighting took off in 2009, Veeco led the market, selling hundreds of chambers to companies like LG, Osram, and many others. The next wave of LED demand came from the general lighting market when, from 2014 to 2018, we sold hundreds of systems in China, enabling mass adoption of LED lighting throughout the world. In 2017, we acquired Ultratech and along with it, our laser annealing and advanced packaging lithography product lines, accelerating our push into front-end semi and advanced packaging. In 2018, it was becoming clear that the LED business would soon be commoditized. When I took over as CEO, one of the first decisions I made was to exit the commodity LED market in China. That's when we began to work on our transformation and strategy to grow the company. We refer to the transformation in two phases, but I'll expand on that by referring to the internal framework we used to guide our transformation, which was Stabilize, Pivot, Invest, and Penetrate. Toward the end of 2018, with declining LED revenue, it was obvious that our organization was not aligned with either the revenue run rate for the company or our priorities. We stabilized the company by establishing a functional structure, pivoting from numerous leaders to a more unified structure. Instead of having six general managers and six heads of engineering, marketing, and technology, we switched to one head of engineering, one head of marketing, and one head of technology reporting to me. This allowed us to de-layer the company and eliminate executive positions, reducing expenses without impacting our ability to execute, while at the same time, improving decision-making and accountability. As part of stabilizing the company, we divested a non-core product line. These activities all contributed to returning the company to profitability in just 4 quarters. We reversed losses and returned to non-GAAP profitability. While we were improving our profitability and stabilizing the company, we pivoted our resources. Another advantage of a functional structure is that allowed us to more easily prioritize R&D investments at the company level. Aligned with our growth strategy in the semiconductor and compound semiconductor markets. These vital projects were targeted at SAM expansion and improving our product's competitive positioning. In fact, by redirecting our R&D resources from sustaining and other programs, we were able to double our R&D investments on projects critical to our growth initiatives. As we validated our strategic direction and regained profitability, it was time to invest for growth. We're making strategic R&D investments in laser annealing, ion beam, and MOCVD products, and we're deploying capital to expand our manufacturing capacity, which you'll hear more about in a few minutes. The stabilize and pivot phases are complete. We're in the middle of investing, as you can see on the timeline. While we invest, we're also further penetrating the semiconductor and compound semiconductor markets. Historically, Veeco would support one or maybe two evaluation systems in the field at any one time. We've dramatically increased our investment in evaluation systems and are now in the process of shipping and supporting 10 evaluation systems to our customers. It's these evaluation systems that we believe will lead to follow-on production orders. We're making strategic investments in service ahead of revenue to ensure success with the evaluation systems and follow-on business. In a short while, you'll see how these evaluation systems are driving our growth strategy. First, let me describe for you the 4 megatrends driving our end markets, how our technology is aligned with both the end markets and megatrends, and then in that context, where we're placing evaluation systems. The technology megatrends supporting the industry today and driving Veeco's growth are massive in scale and appear to be long-lived. The first of these megatrends is all about mobility and the immersive user experience. It includes smartphones and communication infrastructure such as 5G, with people always on the move and always connected. It also includes gaming, augmented and virtual reality, IoT, and a variety of sensing applications. When we think about high-performance computing and artificial intelligence, we think about logic scaling along Moore's Law, heterogeneous integration, and other advanced packaging approaches. These trends enable faster computing in the form of processors and GPUs for large-scale deployments and higher-level machine learning. Moving down to the transformation of the automotive industry, many disruptive technologies are being incorporated into automobiles at a rapid pace, such as electrification and vehicle autonomy. These disruptions require advanced semiconductor devices in the form of AI processors, logic, and memory. The last of these megatrends is the cloud. Massive data centers providing computing and storage are driving more powerful and efficient computing, higher speed communication, and higher density disk storage. When we look at the major markets and technologies where we play, we see clear alignment with the megatrends I just described. The first is the semiconductor market, where we believe we have the most exciting growth opportunities. Every one of the industry megatrends is driving the semiconductor market. It's here where we're engaging our logic and memory customers, IDMs, OSATs, and foundries alike with our laser annealing, ion beam, advanced packaging lithography, and wet processing systems. The second market is the compound semiconductor market, which is also influenced by all four megatrends. This is where our customers make innovative devices such as RF filters and amplifiers, power devices, and photonics devices like laser diodes and microLEDs. We engage these customers with our wet processing and MOCVD systems. The third major market for us is the data storage market, driven by the cloud, where we've partnered for decades with disk drive manufacturers enabling magnetic heads with our ion beam deposition and etch equipment. To sum it up, there are several long-lasting major industry megatrends driving markets we serve with our exceptional differentiated products. To give you some visibility into where we've been working with our customers placing evaluation systems, you can see we have five laser annealing evals at semiconductor customers, 3 in logic and 2 in memory. Clearly an area where we expect significant future growth. One ion beam eval expected to ship for an advanced front-end application Adrian Devasahayam will explain in a bit. One advanced packaging lithography eval at a semi customer. One wet processing eval in the advanced packaging space, 2 MOCVD evals in the compound semiconductor market, one for 8-inch GaN on silicon power electronics and one for red microLED. Investing in R&D to develop those products and the service infrastructure to support the evaluations in the field are key parts of our strategy. To put a finer point on it, over the next 45 minutes or so, we'll explain in more detail how our core technologies support and enable the markets and megatrends I just described. We're working with our semiconductor and compound semiconductor customers on their difficult materials challenges to enable their success. We've realigned our R&D resources to focus on growth and invested in service capability to support our evaluation systems and follow-on production business. Finally, we built a winning team with a culture of execution. We're operating in markets we expect to grow, which we believe will lead to revenue and earnings growth. By the end of today's event, I'm sure you'll agree, Veeco is a compelling investment opportunity, and we're well-positioned to make a material difference. I'd like to introduce Adrian Devasahayam, who runs our product organization. He'll discuss our market potential in more detail. Adrian? Thank you, Bill. Good morning to everyone. It's great to be here today. I'm Senior Vice President of Veeco's product organization with responsibility for all products. I've been with the company for 23 years and have held various technical and product marketing roles. In my current position, I'm responsible for product strategy, roadmaps, and commercial engagements with customers. You heard Bill outline a broader market vision. I'll be talking about the specific markets Veeco competes in and our product solutions. Overall, Veeco's total market is projected to grow from just over $1 billion to over $2.2 billion between 2020 and 2025. Veeco's total addressable market, or TAM, is expected to grow at a CAGR of 6.3%, while Veeco's served available market, or SAM, is expected to grow over 2 and a half times faster at 16%. Growth is driven by 4 separate markets, semi, compound semi, data storage, and scientific. Starting with the semi market, we define this as equipment sales to manufacturers who produce logic and memory devices for front-end-of-line, middle-end-of-line, and advanced packaging applications. We currently serve the semi market with our laser annealing, EUV mask blank, and AP litho product lines. We expect these markets to grow to $1 billion and faster than overall WFE as we gain more applications. Moving on to compound semi. We define this market as equipment sales to manufacturers of power electronics, advanced display, RF devices, and photonics. We have a number of products that serve this space, including MOCVD and wet processing systems. We see this market having tremendous opportunities and projected to grow to $800 million, fueled by growth in display and power end markets. The next major driver is data storage. We have been a crucial supplier in this market for decades, supplying ion beam systems to enable manufacture of magnetic heads. In recent years, Veeco has experienced strong revenue growth in this space as end customers added capacity. We expect that capacity adds will temporarily slow as customers balance supply and demand. In the long run, we expect continued growth as the demand for heads is projected to increase. We play a significant role in scientific markets, including academic institutions and government research with our portfolio of deposition and etch technologies. This business historically has been a solid foundation for Veeco, and we expect it will grow with GDP. We design, develop, and manufacture several of our products for the semi market in San Jose, California, and we recently began working on a project to nearly double our output to meet customers' capacity demands. I would like to share a brief video to introduce our San Jose expansion. [Presentation] As you can see from the video, Veeco is very committed to the semiconductor market, and we are excited to transition to the new facility. Now, let me dive deeper into the semi market opportunity. As you may be familiar, end products such as phones, servers, or automobiles have integrated circuits controlling the devices in these products. If you look at a magnified view of the IC chip, we can see where Veeco plays in the market. First, at the transistor level, Veeco's laser annealing product is critical in meeting the transistor performance targets with source, drain, and contact anneals. As customers move to extreme ultraviolet lithography at seven nanometer and smaller nodes, Veeco supplies the equipment to deposit the critical mask blank layers. After the front-end-of-line and back-end-of-line processing is complete, the device is then packaged so it can be integrated into the end product. In some cases, customers who require improved performance will use advanced packaging techniques such as copper pillar or 3D integration approaches like heterogeneous integration. Veeco provides industry-leading products like our AP lithography and wet processing system for these applications. In addition to our existing solutions, Veeco has been working closely with customers who have identified additional material challenges that will become significant over the next several years. Specifically, as devices scale to smaller and smaller dimensions, the cross-sectional area of the contacts, vias, and lines decrease, increasing overall resistance and capacitance. To enable faster performance, customers must find not only lower resistivity materials, but also improved methods to deposit them. Veeco's suite of core technologies provide a solution to these customer problems. Diving deeper into the market sizes, the total semi market opportunity for Veeco was $200 million in 2020. Laser annealing is expected to grow at a CAGR of 26% as devices scale to smaller nodes and regain applications. Our mask blank market is expected to grow at a 12% CAGR with further adoption of EUV steps at advanced nodes. The AP litho segment is expected to see solid growth at 10% as IDMs, foundries, and OSATs transition more products from wire bonding to advanced packaging. These product lines are expected to grow at an 18% CAGR from $200 million-$450 million by 2025. As discussed in the previous slide, we see new applications using our core ion beam technologies to solve critical customer material problems that could add approximately $250 million to our SAM. With all these applications, we project Veeco's semi market opportunity to grow at approximately a 30% CAGR. Laser annealing represents Veeco's fastest-growing portion of the semi market. Annealing is used in several steps in the semi process flow, primarily to activate dopants, reduce contact resistance, and modify material grain structure. We expect the market will grow by 26% through 2025 because many of the annealing steps that use thermal processes are expected to migrate to millisecond laser anneal as device architectures and materials change with node scaling. Looking more deeply at the advantages of laser annealing versus other technologies such as flash anneal, you can see by the diagram in the upper left that the laser approach offers a precise temperature exposure versus flash. The laser heating only affects the surface layers at the area of exposure, while the flash approach has a much broader impact, heating the entire wafer, causing undesirable effects like high stress. In addition, the flash approach has a slower cool down than the Veeco laser annealing approach, as shown in the graph on the bottom left. This prolonged temperature exposure leads to unwanted dopant diffusion as well as dopant deactivation. When compared to other laser annealing technologies, Veeco's system architecture has a significant advantage in meeting requirements for advanced device development, including lower thermal budget and minimal pattern sensitivity. We think laser annealing will continue to grow as more applications in logic and memory need shorter dwell times that a leading-edge logic customer has qualified Veeco as production tool of record, or PTOR, at their next node. This is exciting as it further validates the value of our laser annealing technology. As devices scale from five nanometer to two nanometer, the International Roadmap for Devices and Systems, or IRDS, predicts that the architecture of the gate will migrate from FinFET to Gate-All-Around. In addition, the channel material is expected to increase in germanium content from 25%- 50%. Both these changes increase thermal budget constraints as device manufacturers must increase dopant activation while minimizing dopant and germanium migration. This translates to a need for more precise temperature control of the wafer during annealing steps. It's important to note that logic devices are ahead of DRAM when it comes to device scaling. We expect that DRAM will also see the same evolution from thermal to millisecond annealing for critical applications. In fact, we're engaged with leading memory suppliers today to demonstrate Veeco's laser annealing technology, and we're excited because we think the memory-related annealing market will be similar in size to the logic annealing market in the long term. Let's switch gears to talk about Veeco's EUV mask blank opportunity. I think we can all agree that extreme ultraviolet lithography, or EUV litho for short, is revolutionizing the semi industry by enabling further node shrink beyond 5 nanometer. With EUV litho, a new type of mask is needed because of the shorter wavelengths of light used to expose substrates. In the value chain, Veeco sells equipment to mask blank manufacturers who use our tools to deposit the reflective multilayer and capping layer. Reflectivity and uniformity are the two critical requirements for these layers. Over the last two decades, the Veeco team has developed and optimized our ion beam deposition systems to achieve these goals. Mask blanks then go to foundries, IDMs, and mask shops who etch the mask blank to the specific patterns of the chip design. Based on the value chain described, there is a strong relationship between EUV steppers and the number of mask blanks and mask blank systems needed. Based on this ratio of one of our ion beam deposition systems for every 10-15 EUV lithography systems, we expect that our mask blank market will grow at a CAGR of 12% through 2025. In fact, with the recent acceleration and adoption of EUV layers in both logic and DRAM, we expect the demand for our systems to increase from the previously reported 2-4 systems per year to 3-5 systems per year over the same time period. The next segment within semi is advanced packaging. This market is expected to see growth through 2025 with a 10% CAGR. There are a number of trends driving this growth. The continued push for higher chip performance is driving packaging techniques that enable higher input-output density, as well as approaches like heterogeneous integration that connect multiple chip types on the same package. These trends challenge equipment suppliers to provide systems that not only meet the processing hurdles like shrinking dimensions, varying wafer types, and a wide range of photoresist thicknesses, but also maintain high productivity and low cost of ownership. The Veeco AP litho product has a long history of leadership in this space. Over the many years, we have achieved PTOR status at IDMs, foundries, and OSATs. This position has allowed us to engage closely with customers and to stay ahead of these requirements. We expect this market position to enable Veeco to take advantage of the growth in the AP litho market over the next several years. Far, we have discussed our existing products and how we expect to capture new applications as the semiconductor industry evolves with node scaling. In addition to growing our existing products, we have engaged with customers since 2019 in leveraging our ion beam technology to solve some major challenges that our customers expect to have in the future. Ion beam technology has been a core competency of Veeco for decades, and we've demonstrated our superiority with this technology, first with the data storage market and again with the EUV mask blank market. Now to this front-end semi challenge. As device geometries shrink with each successive node, as explained earlier, challenges such as increasing bitline resistance in DRAM and via resistance in logic come into play. Customers are not only challenged to find low resistivity materials but also new methods to deposit them. For instance, tungsten deposited by traditional physical vapor deposition may not have the optimal grain structure to meet future device resistivity requirements. In contrast, ion beam technology can deposit very high density, low resistivity films that are expected to meet requirements for applications like tungsten bitline or interconnect wiring. We expect that these applications represent up to $250 million annually in new opportunities by 2025. I would like to talk in detail about Veeco's compound semiconductor opportunity. In 2020, our total compound semi opportunity was approximately $275 million. The main components of this market are 5G, power electronics, and advanced display. Please note it does not include commoditized LED and other segments where Veeco does not compete, such as silicon carbide. We see a trend that these applications are increasing in complexity and will require equipment with greater process control similar to silicon semi markets. Let's start with the 5G opportunity. Today, we're the market leader for wet processing for RF filter and power amplifier devices. Based on customer feedback, we see the 5G trend extending through the next few years as 5G smartphones penetration increases. We expect the 5G and base compound semi business to grow at 8% CAGR through 2025. The second major driver is gallium nitride or GaN power for applications such as consumer fast charging, RF base stations, and data centers. In this market, we are seeing traction with our MOCVD and wet processing products as GaN is expected to encroach on traditional silicon power segments. We anticipate that this market will grow at a 26% CAGR through 2025. Advanced display is the largest driver, primarily due to microLED adoption for TV signage, smartphones, and AR/VR. We see opportunities for our MOCVD and wet processing products, and the potential growth rate is estimated at 57% CAGR through 2025. Adoption of microLED is contingent on the technology achieving a low enough cost so that it can be incorporated into large displays and consumer products. We'll talk more about this point in a few slides. Overall, we're excited about our compound semi opportunity as we project a 23% CAGR through 2025. Let's dive into the power market opportunity. GaN charges used in various consumer devices and data centers offer faster switching speeds and higher power density, which translates to lower footprint, lower thermal load, and lower cost. These end device trends require process equipment to enable higher yield, lower cost of ownership. With the industry currently at 6 inch wafers, larger wafers are a critical element of lowering cost. The Propel MOCVD system is Veeco's solution to meeting these challenges on 8 inch wafers. This single wafer reactor is based on Veeco's well-proven TurboDisc technology with its uniform flow and boundary layer control and delivers superior uniformity, low defectivity, and high yield. Customer feedback indicates we have a significant advantage in compositional uniformity versus batch. We're seeing these advantages play out as the Propel platform is gaining traction at customers like A-Pro Semicon assess this technology for 8 inch wafer size. Advanced display represents the largest potential compound semi market, driven specifically by microLED adoption. MicroLEDs can be used in large displays such as TVs or signage or small displays like smartphones and smartwatches. As said before, the largest barrier to adoption is cost, and the largest impediments to cost are yield and productivity. The yield on microLEDs is driven by defectivity, thickness, and wavelength uniformity. Veeco's TurboDisc technology can deliver the needed solutions with superior uniformity, low defectivity and stable productivity. Our customers are following two different approaches for microLED manufacturing. First of these is the more traditional approach of arsenide phosphide chemistry for red microLEDs and GaN for blue-green microLEDs. For these customers, the Lumina platform is Veeco's solution for red microLEDs, and we're seeing progress with this platform today at 6-inch. The second manufacturing approach is GaN on silicon nanowire, which greatly simplifies the costly pick and place required by the traditional approach. In this case, the Veeco solution is the Propel platform. This platform covers 6-inch to 12 inch wafer sizes and is well-aligned with our customer's roadmap. Based on Propel's advantages, we're seeing traction for this product as innovators such as Aledia evaluate the systems. These enabling technologies are designed, developed, and manufactured in two of our East Coast U.S. manufacturing facilities, in Horsham, Pennsylvania and Somerset, New Jersey. Our Somerset facility is home to our MOCVD products, as well as the manufacturing location for our ion beam systems for semi and data storage markets. We also host customer demos, demo our products, and leverage our world-class process technologists at this site. Here is a bit more about our Somerset operation. Somerset, New Jersey, home to an important development and manufacturing site for Veeco. This facility features approximately 80,000 sq ft of operational space. This is where we manufacture our very latest MOCVD and ion beam systems for semiconductor, compound semiconductor, and data storage manufacturing processes. With world-class expertise and state-of-the-art technology, our Propel high volume single wafer system and the Lumina MOCVD platform are capable of creating advanced power and photonics devices. Featuring a single wafer reactor platform, the Propel 300 is the only gallium nitride MOCVD system that enables production of compound semiconductor devices on 300 millimeter substrates. Our recently renovated, flexible manufacturing clean room space enables us to produce our industry-leading ion beam process tools for data storage and EUV mask blank production, right alongside our MOCVD systems. This is how Veeco is making a material difference from Somerset, New Jersey. As you can see from the video, we are well-positioned to meet the demand for MOCVD and ion beam equipment. We're very proud of our team who makes this site an important product development and manufacturing location for Veeco. Lastly, let's talk about the data storage market, one that we know very well as we have been and continue to be a key enabler for the hard disk drive industry. In the long run, the mega trend of exabyte growth is expected to drive long-term growth for Veeco's data storage business. The graph on the left shows growth in magnetic heads and manufacturing steps per head. Both are growing to meet storage demands. The projected increase in steps per head is driven by the adoption of new heat or microwave-assisted magnetic recording, HAMR or MAMR, as well as the extension of conventional perpendicular magnetic recording or PMR. Adoption of HAMR or MAMR is imperative for disk drive manufacturers as this is how they can maintain a cost advantage versus solid-state drives. Our estimates show that in the short term, the drive makers will incrementally add capacity to meet demand. In the long term, the increase in head demand, combined with the increase in steps per head, is projected to lead to equipment growth over the next several years. Thanks again for the opportunity to dive deeper into Veeco's markets and products. I'm very excited about our opportunities in semi, compound semi, and data storage. The future looks bright for Veeco as our products are well-positioned to grow in these exciting markets. With that, I would like to hand it over to Susan. Thank you, Adrian. I'm excited to be part of Veeco's 2021 analyst event. I'm Senior Vice President of Global Customer Operations, which includes global sales and service. I spent nearly 25 years in the semiconductor equipment industry before joining Veeco at the height of the pandemic in April 2020. I was inspired to join the company because of the strong leadership team, as well as what I believe to be Veeco's opportunities for significant growth, its inclusive culture and unsurpassed technology, deep focus on customer trust. It's been a fantastic 18 months, and I'm absolutely confident in Veeco's success in the quarters and years to come. Let me dive in by sharing who I am and my operating philosophy. Simply stated, I'm motivated by winning. Our winning plan starts with customer trust. To quote Stephen Covey, "The ability to establish, grow, extend, and restore trust is the key professional and personal competency of our time." When taking this leadership role, Bill and I agreed that our strategy to win was to have sales, service, and customer operations all in one customer-facing organization. This is a change for Veeco, as is having a female executive lead these critical functions. Bill and I discussed this organizational approach at great length, and recognized that customer trust goes far beyond great products and services. Trust in our leadership team and our ability to deliver on our commitments is of the utmost importance. Over the last year and a half, we've made targeted strategic changes to our global customer operations organization. The design goal was to build a solid yet diverse team, bringing together leaders with deep semiconductor experience and business development strength. We've achieved this goal and are benefiting from its structure. In fact, we've seen 35% overall bookings growth when compared to the first half of 2020 to the first half of 2021. Semi bookings grew more than 100% over the same time frame. Finally, our ability to execute is everything. Operationally, we've implemented robust business management systems designed to guide our performance, ensure our results, and course-correct where needed. For example, over the last year, we've improved our spare parts fulfillment model from eight hours, five days a week to seven by 24, 365 days a year. We're proud of this achievement, and it demonstrates our commitment to our customers. Switching gears, Bill spoke about Veeco's transformational journey, which included returning the company to profitability and now driving growth in the semiconductor and compound semiconductor markets. Since joining Veeco last year, my team and I have been focused on driving growth across the board. I'm very excited to share that we see solid traction in the semiconductor equipment market, with the 41% increase in revenue in the first half of 2021 versus the first half of 2020. Our transformation into semi is underpinned by Veeco's enabling technology and our customers facing infrastructure. We're investing in our customer support model, including manufacturing, technology solutions, field engineering, and more, all designed to ensure that we meet the needs of all major semi players. Further, we're aggressively investing in our future by supporting multi-semi and compound semi customer evaluation systems, building strong credibility in Veeco's ability to help solve our customers' most difficult challenges. Our growth strategy is primarily driven by megatrends, as mentioned earlier. Further, the health of our business, both growth and profit, is driven by our diversified sales approach, leveraging Veeco's entire solution portfolio across semi, compound semi, data storage, scientific, and other markets and geographies. Our go-to-market transformation is a strategic play that ensures we have global and local account management for all strategic customers. With many of our customers expanding facilities worldwide, we recognize the need for global consistency across all regions, guaranteeing a seamless experience. At the same time, our high touch, hands-on approach is paramount. Despite obstacles, we've managed to navigate many challenges, including COVID-19 and related supply chain impacts. Additionally, given ongoing international trade concerns, we continue to extend our go-to-market reach, ensuring broad coverage around the world. For example, in China, prior year sales were predominantly driven by MOCVD solutions. We've pivoted our strategy to expand our customer base with solutions in semi and compound semi. Our global team continues to do what they do best: stay connected to our customers. Creative solutions, including virtual teleconferences and online diagnostics, allow us to build, ship, and install support systems throughout the pandemic and continue today. At the beginning of the pandemic, we stated that we wouldn't risk our employees or our customer safety, and when it comes to safety, we will never compromise. Next up, our transformation would not be nearly as far along without Veeco's global service solutions. We believe our global service solution is a real differentiator. The team is 100% focused on becoming our customer's most trusted supplier. In fact, it's the team's vision statement. This trust will allow us to collaborate and solve our customers' most difficult technology problems. With new applications, earn follow-on system orders, grow our business upgrades and spares business. Every day, our global team of nearly 300 dedicated service professionals support more than 4,000 systems across 600 customers located around the world. It's our business to keep our customers' business up and running. Proving that we can deliver to a rigorous semiconductor standard is step number 1. This means our systems must perform above expectations in our customers' fabs. Tool downtime is minimized. Step 1 requires investment we're making ahead of revenue to ensure we're successful. For instance, we're hiring semi-ready field engineers and co-locating them along with spares inventory at or near our strategic accounts. By the end of 2021, we plan to increase our field team by nearly 20%, with more investment expected to support our customers as they expand their sites globally. We've invested in our spare operations infrastructure to ensure our customers don't experience long lead times for parts needed to keep their systems running. Here again, we're invested in adding expertise but also enhanced predictive modeling capability. Finally, we're investing in our workforce in support of our mission. Having the most highly skilled field engineers with advanced capability to support our global installed base will allow them to quickly resolve complex issues that come with operating at advanced semiconductor nodes. Our learning management department is installing more training systems to enable both remote and in-person learning by our engineers and our customers on our most advanced products. That last point is noteworthy. Unlike some in the industry, we firmly believe in empowering and training our customers to an advanced level of capability similar to our engineers. After all, we're partners in production, and ensuring our customers know our systems well only serves to build their confidence in Veeco. Within Global Service Solutions, collaborating closely with our customers to cost-effectively deliver differentiated levels of installed base performance is step number two. To that end, a good example of a recent product we've introduced that enables both trust and supports our growth is our PROMPT upgrade program. Every customer is faced with the risk of parts and assemblies within their installed base becoming obsolete. The hurdles that accompany those risks are often difficult to address, including long lead times and high costs. Our PROMPT program enables customers to collaborate with Veeco to protect their fleet with a long-term contract approach. Assemblies are stocked on-site and paid for over time. In return, Veeco builds both customer trust and creates a predictable recurring revenue stream. Far, we've been quite successful with multiple customer penetrations and have received millions of dollars in orders for this product since we launched earlier this year. Another great example of a recent product launch that grows both trust and the bottom line is our direct spares contracts. In this case, Veeco is working in partnership with our customers to balance their spares spending with a subscription-based contract model. Here again, within just a few months since launch, we have multiple direct contract commitments and have won back millions of dollars in revenue. We're confident that collaborating with our customer is the necessary foundation for growing Veeco as a whole. Which leads me to reflect on and share a few anecdotes directly from our customers. Recent discussions with a major memory customer evaluating our LSA technology for their most advanced node ramping in the next two years, validated our ability to provide enabling technology while collaborating closely with them to help solve difficult materials challenges. Further, Silanna Semiconductor cites Veeco as a major contributor with successful system installation during the peak of the pandemic. Gaining and keeping our customers' trust takes hard work, dedication, and commitment. We strive to improve each day, making a material difference in their business as well as our own. Over the last several minutes, I've talked about our markets and points of focus, our transformation and results, and our overarching focus on customer trust. Let me spend these last few minutes on our strategic goals, including growth, profitability, and culture. The heart of our growth strategy is leveraging Veeco's service solutions as a differentiator. Our PROMPT and direct programs are indicators of success, building customer trust while delivering profitable growth. Our strategic plans call for nothing short of ownership, execution, and accountability at all levels of the company. Together with our product line organization led by Adrian, as well as our product engineering and manufacturing teams, we're poised for success, driving new penetrations and defense strategies every day. We believe our evaluation systems will result in high volume manufacturing orders. Our focus on profitability is driven across the company, seeking new ways to reduce costs and inefficiency while adding value in our customers. Our teams are rigorously focused on competitive threats and Veeco's positions, providing value and greater profitability through service, support, and differentiated technology solutions. Lastly, Veeco's culture is stronger than ever. As Bill mentioned earlier this year, we completed our culture survey. The results versus our last survey from two years prior were vastly improved. Our customer-facing organization and everyone across Veeco is committed to our customer and our customer success. Our emphasis on diversity and inclusion, strong internal communications, mutual trust and respect, investment in our people and their professional growth is paying dividends across the board. In closing, as a Veeco United team, we're dedicated to winning our customers' trust. Our talented people pave the way for our success. We're grateful for their hard work and contributions. Thank you for your time and attention today. With that, I'd like to turn it over to our CFO, John Kiernan. Thanks, Susan, and thank you all for joining us today. Since joining Veeco in 1995, I've held several financial leadership roles of increasing responsibility with oversight of finance, accounting, tax, and treasury. My experience also includes an expat assignment where I led the expansion of our business presence in Asia. I became CFO in January 2020. I'm responsible for funding the strategy of the company. As discussed throughout today's event, Veeco's strategy has dramatically changed. We've returned to profitability and believe we're on a path to sustainable growth and creation of significant shareholder value. We believe our strategy and execution is poised to put us on a path to $800 million in revenue over the next 3- 5 years with improved profitability and cash flow. I've never been more excited to be here. Before I cover our future financial model, I'd like to highlight how our strategic transformation has improved our overall financial performance during the past few years. Our revenue has increased from $419 million in 2019 to an expected $570 million for 2021, representing a 17% CAGR. The data storage market contributed the largest portion of the growth as customers added capacity, followed by semiconductor market as we captured share in new applications. As you heard from Bill, we restructured our operations in late 2018 into 2019. We improved our product mix by exiting the commoditized LED business. In restructuring the organization, we significantly reduced costs and reallocated our R&D spending. Our non-GAAP gross margins increased from 39% in 2019 to an expected 42% in 2021. It's worth noting our gross margin improved compared to 2019, while today we're making significant investments in service capabilities and expanding manufacturing capacity ahead of revenue. These investments are vital for us ultimately to gain share in the semiconductor market. In the early stage of our transformation, we refocused R&D spending on the highest potential opportunities that fit with our differentiated core technologies. At the same time, we reorganized our company, optimizing our functional structure and reducing senior level positions. This significantly reduced our operating expenses. Now, in the growth phase of our transformation, we are investing, but as you can see from the chart on the bottom left, operating expenses continue to decline as a percent of revenue, adding leverage to our financial model. We are pleased to be able to deliver both growth and profitability during this phase of our transformation. Consequently, our diluted non-GAAP earnings per share improved dramatically and is expected toward $1.30 for the full year 2021. Our improved financial performance clearly reflects the impact of our transformation initiatives. We are proud of our improved financial performance and believe we're just at the beginning of what Veeco can achieve. You heard Adrian talk about our growing markets and our differentiated technologies. With our increased investments in evaluation systems, which are performing well at customer sites, we established a strong foundation for continued growth. To recap, in 2020, we delivered $454 million in revenue, made up of $166 million in semiconductor, $108 million in compound semiconductor, $123 million in data storage, and $57 million in scientific and other. As we think about our 3-5 year revenue target of $800 million, the semiconductor market is expected to be the largest contributor of growth. To that end, we remain particularly excited with the differentiated technologies we acquired from Ultratech. This acquisition positioned us well for revenue growth in laser annealing as we expect to expand our SAM by penetrating additional nodes and applications, resulting in revenue growth faster than the wafer fab equipment market. Additionally, given double-digit advanced packaging lithography market growth Adrian spoke about earlier, we expect equivalent revenue growth to come from our AP litho products. We also expect growth from our ion beam deposition systems for EUV mask blank production, as adoption in the industry appears to be accelerating, with most leading semiconductor manufacturers now planning on adopting this technology. Lastly, we expect to realize revenue from our ion beam technologies for low resistivity films. With this growth coming toward the back end of our target period. As a result, we expect the semiconductor market to contribute approximately $150 million-$200 million of incremental revenue over the next 3 to 5 years. We are very excited about the potential growth coming from compound semiconductor market, which we expect could add somewhere between $75 million and $125 million of incremental revenue over the same time frame. We see numerous secular tailwinds in this market driving demand for our wet processing and MOCVD equipment. Earlier, we explained the current market strength with 5G RF communication, driving an increase in content per mobile device. We expect this trend to continue and be bolstered by emerging areas such as GaN power electronics used in fast charging and other power conversion solutions in consumer applications. Another source of growth in this market is the advanced displays made with microLED technology. Between our gallium nitride and arsenide phosphide MOCVD solutions, we believe microLED production will provide future revenue growth as this market develops. We expect these applications, 5G RF, power electronics, and microLED, will present promising opportunities to further build our position in the compound semiconductor market. Moving on to data storage market. Adrian presented a view of the end market where stored data is forecasted to grow at a 35% CAGR through our target period. With the number and complexity of magnetic heads increasing, our view is that we'll see an incremental $50 million-$100 million in revenue over the next 3-5 years as compared to full year 2020. Given our long-standing relationships with customers in this market, we believe data storage will be an important part of our business for the foreseeable future. Lastly, the scientific and other market is expected to contribute approximately $25 million in additional revenue toward our 3-5-year target. This growth is primarily from customers such as universities in both government and privately funded research institutions, and is tied principally to GDP growth. Our revenue target of $800 million in this model assumes modest market share in new applications as we expand our SAM. Upside to this model could come if we gain traction at a faster pace in new applications than we currently forecast. Looking at our target revenue by market, we expect semiconductor to make up approximately 40% of the company's total revenue, with compound semiconductor and data storage each to be about 25%, followed by the scientific and other market making up the remainder. Now that I've provided a picture of our future state revenue, let's talk about our non-GAAP gross margin, which we're targeting to be 45%. The main drivers that will lead us to this outcome are manufacturing efficiencies and leverage from our service investments. We expect manufacturing efficiencies to improve as volume increases. We also expect margins to improve as we fully transition to the new San Jose facility and eliminate duplicate expenses. Another tailwind to our gross margin is the leverage we anticipate in the future from today's investments ahead of revenue to build a world-class service organization. As Bill and Susan covered earlier, we believe successful completion of evaluations will lead to follow-on volume purchases. As that revenue is realized, we'll be able to leverage the service investments, which will allow service costs to grow at a slower pace than revenue. This, combined with volume and manufacturing efficiency, serves as a basis to our 45% gross margin target. Now looking at non-GAAP operating expenses. We are continuing to act on our strategy by investing in R&D to support our growth in semiconductor and compound semiconductor markets. We're advancing our product roadmaps in laser annealing, ion beam, and MOCVD. We plan to maintain SG&A controls in our overall operating expenses as a percentage of revenue over the next 3- 5 years, is targeted to decline to approximately 25%. Turning to our target financial model. You can see the long-term shareholder value that we expect to achieve through execution of our strategic objectives. Our revenue target of $800 million is a 75% increase from 2020, with significant growth expected in semiconductor and compound semiconductor markets. On a non-GAAP basis, with targeted gross margin at 45% and targeted operating expenses at 25% of revenue, our operating income target is 20%. This is also expected to have a favorable impact on our cash flow from operations, which we target to be approximately $140 million at this revenue level, which is over 3 times our operating cash flow in 2020. Moving on to our capital allocation strategy and priorities. Our targeted profitability will put Veeco in even a stronger financial position than we are today, providing options for our uses of capital. Our first priority is to continue to fund the R&D associated with our organic growth initiatives. Our second priority is to finish our San Jose capacity expansion project. This project is progressing well, and we expect to be fully transitioned by Q3 of next year. I have some great news to share about this project. Recently, we completed a portion of the manufacturing clean room and are assembling multiple laser annealing systems as we speak. In fact, we expect to ship our first laser annealing system from our new facility in Q4 of this year, well ahead of our original schedule. Our third priority is having the flexibility to de-lever our balance sheet by retiring a portion of our outstanding convertible notes that are due in January 2023. Although our immediate focus is executing on our significant organic growth opportunities, we recognize that synergistic M&A may be a potential element of our future growth strategy. Lastly, it would be our plan in the context of the above priorities to return any available excess capital to our shareholders. I would like to reiterate my excitement for growth in our top line, bottom line, and cash flow generation. We expect that our operating leverage will provide us with significant flexibility to invest in our future growth while also providing the opportunity to unlock additional value for our shareholders. In summary, we're extremely proud of our recent financial results and the progress we've made on our transformation to date. Hopefully, you'll agree that our team, technology, and focus are setting Veeco up for a very exciting future and ability to drive strong long-term financial performance. With that, thank you all for joining us today, and I'll now turn it back over to Bill. Thanks, John. I share your excitement. I would like to thank Adrian and Susan as well for helping to articulate the Veeco strategy. We hope you are excited as well. This is a pivotal time in the company's history in compound semi space. Our evaluation systems are performing well and winning critical process steps, in particular with our laser annealing platforms. Our core technologies are being introduced into new areas. For example, our ion beam deposition technology for low resistivity semi for San Jose expansion project is ahead of schedule. We cannot wait to debut this flagship facility right in the heart of Silicon Valley. We outlined in our financial model a sound path to $800 million in revenue and 20% operating margin in the next three to five years. Finally, the session. Thank you. Is the Veeco team ready to begin the question and answer session? Yes, we are. Just wanted to share with everyone in this era of COVID during this Q&A session, we're as socially distanced as we possibly can. We've all had a recent negative COVID test, and we're all fully vaccinated. With that, we're ready to go. Please open the line. Thank you. Our first question is coming from Patrick Ho with Stifel. Please proceed. Thank you very much, and a lot of information. Maybe if I could first start off with a question for Susan. It was really encouraging to hear the transformation of the company towards a semiconductor standard, which I think is something that's needed in today's market environment. Could you elaborate a little more on the customer trust and the building out of the services infrastructure, given that the market environment, we're seeing a lot more fab build-outs, particularly at the most leading-edge customers. How closely are you working on collaboration to keep up with their investments, particularly in the services front, given that there are multiple fabs likely to come on online in the next 3-5 years? Before, Patrick, thanks so much for the question. Before I pass it to Susan, I'd like to share with you that a key part of our strategy was actually hiring Susan. I'll share with you that I had to meet with her two times before she even gave me a resume. We're really excited to have her on the team, and she's done a fantastic job building out the entire team. Susan. Yeah. Great. Thanks for the question. I think, you know, organizationally, Bill mentioned, you know, we've brought in several executives but also mid-level management and engineering into the company that all have semi expertise. Another thing that we've done to try and also really build that structure and infrastructure across the whole company is this extensive training on how to do business in the semi industry and what it takes to be successful. At the same time, we are really gearing up for the ramps that we're seeing across the semi industry. We are investing significantly in our workforce, hiring well ahead of the ramps that you're mentioning. It typically takes nine to 12 months to bring in a field engineering person and get them up to speed and trained and resourced. We're doing that across the board, both for the new products that we have, the evals that we have, planning for success with those evals, but also for the new customer sites that are happening. It is adding both in the U.S. and Arizona and Texas, New York, across the world, really, Europe as well as Asia. It's a significant time for us, and we're definitely gearing up for it. Great. That's really helpful. As my follow-up question for Adrian, in terms of the ion beam solution that you detailed, for low resistivity films, is this more targeted towards the Gate-All-Around transistor, or is this something that could still, I guess, be applied or get in traction with the current remaining FinFET nodes that we're going to see? Patrick, that's a thoughtful question. We think about this a lot. As you know, Veeco has been a leader in ion beam technology, whether that's deposition or etch in the hard drive space, for decades. We then took that technology into ion beam deposition for EUV mask blanks to create zero-defect mask blanks. The next step in the chronology is really to take ion beam technology, ion beam deposition in particular, to front-end semi for both logic and memory applications. I'll let Adrian give some more specifics here. Yeah. Thanks for that question, and thank you, Bill. I think we're very excited about this opportunity. It is somewhat agnostic of whether it's Gate-All-Around or FinFET. The applications we're targeting is related to achieving low resistivity films, which are needed for both types of technologies. We believe our ion beam technology has some significant advantages over the incumbent PVD technologies, and it's related to the intrinsic energetics of the deposition. At these advanced nodes, we see increasing need for these high-performance films, and that's where our IBD technology comes in. As mentioned in our prepared remarks, we see this as a $250 million SAM opportunity for us, and we're targeting some very specific applications related to this. Great. Thank you very much, and thank you. Congrats again on a really nice day. Thank you, Patrick. Really appreciate that. Thank you. Our next question is coming from Rick Schafer with Oppenheimer. Please proceed. Hi, thanks, guys. I'd like to echo my thanks for a really informative day. Thanks for putting this together. A lot going on and certainly a lot to talk about. Just again, a great day from my perspective. Bill, I guess a question for you. You know, you've done a great job refocusing the company. I think you guys walked us through that really well here. You're well positioned to capitalize on multiple growth trends. I think you highlighted a lot of the vectors where you see, you know, you're supporting sort of the best growth opportunities in the years ahead. You know, I'm curious about sort of the fifth mega trend that I'll call it that you didn't highlight, which is the big uptick in government spending on semiconductor sector, just kind of around the world and what that means for Veeco over the next few years. You know, any particular tool or segment that's gonna benefit disproportionately. I'm always curious, Bill, just to hear your perspective, having done this so long, you know, sort of what customers are telling you and what maybe order velocity looks like already, or kind of just what overall visibility looks like or how it compares. Yeah, that's a thoughtful question, Rick. Clearly, we are seeing, and as Susan highlighted, we're seeing really unprecedented engagement by governments around the world. You see announcements from companies like TSMC or Samsung or Intel expanding their operations in the U.S., and also, you know, European Union looking to make significant investments. Those are all very positive trends for the company, and really, I think create a very nice backdrop or tailwind, if you will, for the coming years for our company and many others. I don't know, Adrian, Susan, if you have anything you'd like to add to that. Yeah, if I could just add. I just see this additional spending just being an additional tailwind to our business. We're focused on advanced nodes. That's where we have significant differentiation, we only see this as helping us in our journey here. Thanks. As my follow-up, you know, you guys mentioned that you're shipping eval tools this year to 10 systems, I guess, this year. I know the typical is sort of one to two, so you're at least five times normal. I know you're spending ahead of revenue. I guess I'm curious sort of what a typical timeline is to secure a win, you know, from these eval tools. You know, how do evals convert to revenues? Sort of what's a typical conversion rate on eval? I mean, is it a 100% or some fraction of that? Thanks, guys. Yeah, Rick, we think about that a lot. In semiconductor, it's typical that years before shipping an evaluation system, we'll be working with customers running a number of demos in our labs to prove device performance or the film performance, if you will. We would ship an evaluation system, and it would typically take two or three months to turn the tool over to the customer. At that time, the evaluation would typically run one year before, the customer would during that time, try to replicate the results that they demonstrated in our facility. Our evaluation systems are proceeding quite well. We've shipped, I believe, nine of those over the recent period of time. Actually, a few of those have been accepted, and we would expect to have incremental revenue probably in the second half of next year, 2022. This is gonna be an ongoing part of the company's growth, is converting evaluation systems, not only the tool itself, into revenue, but really driving multi-tool orders and follow on production from that. To achieve the numbers that John outlined, we don't need to bat a 1,000 here. You know, if we can convert 60%, 70%, we'll be well ahead of the plan that we've outlined for you today. I think I'd just add a comment there. I think it's worth noting that our evals are really a mix of where we're already Process Tool of Record, and we're really just working on the next node and the next node after that. And that's the actual hardware eval that's going on, as well as a mix of new customers and new technology. I think for Veeco, it's a really healthy mix of both incumbent business as well as new business that we're going after. Yeah, that's a great point, Susan. Thanks. Exciting times, guys. Thanks a lot. Thanks, Rick. Thank you. Our next question is coming from Gus Richard with Northland. Please proceed with your question. Yes, thanks for taking my questions, and congratulations on the progress. It's been outstanding and the update. Just on the new semi application, I just wanna make sure I'm clear. The ion beam depositions can be used to deposit tungsten. Could you just give, you know, particularly in the logic application, is that, you know, contact in metal 1 or does it progress up to higher levels of the metal stack? Gus, thanks for the question. I will pass that off to Adrian for a little more details. Thank you, Bill, and thanks for the question. As I mentioned, we are targeting a number of applications, a specific tungsten for front-end metallization, as you mentioned, is one of them. It is the metal one, as you mentioned. To be clear, there's a number of applications we are targeting, tungsten is a focus material. I would say the IBD advantage is more broader than just for one particular material. We have an intrinsic advantage in film density, which translates into multiple applications. Tungsten resistivity is one of them, there are others where the improved density translates into basically continuing to use existing films and materials longer. The customer can continue to use existing process steps with our IBD technology, something that's not possible with the incumbent PVD technology. Got it. Very, very helpful. Would that imply you're gonna work on, you know, barrier films as well to reduce resistivity? You know, is there an application in Gate-All-Around in nanosheets? Is there an application for your ion beam etch? Yes. Absolutely, as you can imagine, depositing a film, in these advanced applications, it's not just the film property, it's how you integrate it with the rest of the process. You're absolutely right. Integration with the barrier layer, with the seed layer is critical. In fact, that's a lot of where our know-how is developed, is how do we optimize our film with the barrier film, with the seed layer. That's exactly what we need to do, and that's what we have been doing. Okay. On Gate-All-Around, is there an application there? Oh, yeah. I'm sorry. Yes. On Gate-All-Around, I think, we are somewhat agnostic, as I mentioned before, to whether it's Gate-All-Around or FinFET, other than to say when you move to Gate-All-Around, the overall requirements in general are all tightening. From that perspective, we do probably see that it'll be implemented in the Gate-All-Around type structures, but it's not something specific in Gate-All-Around which would drive the requirement of this particular technology. We do see an opportunity to introduce our technology ahead of Gate-All-Around for N-plus-one type devices, ahead of, say, N-plus-two type devices. It's probably also worth noting, Gus, that although this is a very large, significant opportunity for us, it's really from a revenue standpoint, only a very small portion of the revenue plan, and it's really tilted towards the back portion of the planning horizon. Yeah. Got it. Thank you very much. Thanks, Gus. Thank you. Our next question is coming from Tom O'Malley with Barclays. Please proceed. Hey, good morning, guys. I wanted to thank you as well for a great day and for all the CAGRs and such. I wanted to ask a question about the longer term model. Really appreciate all the color there. Obviously there's a big difference between, you know, the three year time horizon and the five year time horizon. I think that it's good that you guys are giving yourself some cushion there, but could you talk about the biggest swing factors that make you realize that model, maybe on the closer end, say, in the three year period versus the 2025 five year period? Is it areas of business? Is it acceleration in market trends? Can you just walk through what areas, you know, maybe accelerate that path? Yeah. I'll start with that. We're kind of at a point now where we're, as Susan mentioned, we are putting evaluation systems at existing customers for their next nodes. We're also expanding applications at their current nodes in laser annealing. Those opportunities will matriculate faster than, you know, for example, new technologies like ion beam deposition, which would be really at the back half of the planning period. In order for us there's a lot of opportunities for us to accelerate that model, and those would probably typically come from where we are with our existing customers and our existing products. That would be continued growth in laser annealing. We're seeing great opportunities in our advanced packaging lithography product. Really, we're seeing very good growth here in the, currently and into next year and beyond. We're seeing growth in our EUV mask blank product as well. That's growing at about 12%, so that does have an opportunity to accelerate it. Also in the compound semi space with continued adoption of 5G with our wet process. I think a big wild card is really the adoption of microLED, we're forecasting that at the back half of the planning period. If any of those things were to accelerate, that would be an opportunity for us to accelerate the model. I don't know. To the model of getting there quicker do come from getting traction quicker or market adoption quicker for microLEDs as an example. I think those are the two things that could drive us to hitting our target model, on the closer side of the range. That's helpful. My follow-up, you did a great job of kind of laying out some of the near-term trends in the end market as well, and one point that you made is within the data storage business, you saw some near-term CapEx digestion and then followed by some long-term growth. Could you describe, you know, the longevity of what you think a digestion period could look like? I think there's a lot of fear out there, you know, about some slower spend, but I think you've done a good job of kind of laying out the cadence of some return to growth over the long period. Any color just around how you see that market trending over the next one to two years versus in the short term would be really helpful. I would say, Tom, that we have seen a digestion period in terms of order rate in the first half of this year, which will obviously impact revenue in the first half of next year. That being said, that reduction in order rate has actually been more than offset by semi and compound semi orders. That gives us a fair amount of confidence that we believe we're going to grow in 2022, and we are going to walk towards our three to five year model, even with digestion in data storage. We're fairly confident in that position. Thanks again for listening. Have a great day, guys. Thanks. Appreciate it. Thank you. Our next question comes from Mark Miller with Benchmark. Please proceed with your question. Let me also add my thanks for a very illuminating presentation. I'm sure it'll be helpful for investors. I just was wondering, you're guiding to 45% long-term margins and a OpEx around 20%-25%. Do you expect that as we go, you know, into your model time, you know, towards the 2023- 2025 dates, do you think in terms of your product portfolio sales, it'll be a richer or a similar mix to what you're selling today? You know, I'll take a crack at it, then pass it over here to John. I would say that we will see an increase, a shift in mix towards semi, as well as compound semi as we look out through the forecasting period. John, I'll pass it to you. Sure. Thanks. Thanks, Bill. We see as we progress to that 45% gross margin target, we're really targeting a similar gross margin around the various markets that we serve, and gravitating towards that 45% gross margin target. As Bill indicated, we expect to make progress in 2022 and 2023 towards that target. We continue to make the investments that Susan talked about in semi, in particular, supporting the evaluations and getting ready to support these new facilities coming online. We are expecting to start then to see some of the benefits of those investments as revenue starts to pick up. We also expect to see, you know, the benefit from manufacturing efficiencies as well as we start to transition fully to our new San Jose facility, by Q3 of next year, and starting to eliminate some of the duplicate expenses that are going through our gross margin. Follow-up question. For years, Ultratech tried to get DRAM manufacturers interested in LSA. They were never successful. You have two eval tools out in memory right now. What has changed since then? Is it basically just shrinkage that's gonna drive the greater interest of DRAM manufacturers for your tools? Thanks for the question, Mark. I would say, what we're seeing is back at the 28 nanometer node where Ultratech originally gained some traction in logic. The problems that the logic guys were trying to solve in terms of reducing thermal budget for activation are really starting to be seen in the DRAM memory group at a high level. Adrian, I don't know if you have anything else you'd like to add to that. Yeah, let me add to that, Bill. I think there's two main areas we are focused on. One is for DRAM. One is the peripheral logic. All of these DRAM devices have peripheral logic, which essentially is a transistor similar to the front end, but obviously not at advanced generation like the front end. As time progresses, those peripheral logic devices are also advancing, and that's where our technology comes in. There's a need for improved annealing with a lower thermal budget. The other area is even on the DRAM device itself, and that's where continuous shrinkage does drive a need for lower thermal budgets in our technologies. There are a couple of areas we are focused on for the DRAM device. Thank you. Thanks, Mark. Thank you. Our next question is coming from David Duley with Steelhead Securities. Please proceed with your question. Yeah, thanks for taking my question. Just a follow-on to the one that Mark just asked. Could you talk about as far as the DRAM customers adopting the LSA technology in production, when do you think the timeframe is or the node in memory that they have to start to adopt in a greater way? You know, could you maybe help us with the timeframe about is that two years out, a year out or how long? That's a thoughtful question, an area where we have a lot of focus. We're working very closely with our customer on their two evaluation systems. We're actually making great progress. It really does come down a bit to when the customer what node that the customer chooses to adopt. you know, I guess I'll ask Adrian or Susan for their specific thoughts, but I would say it would potentially be in the back half of next year, probably at the earliest. Yeah, I think that's right, Bill. I think with where we are today, with the eval work we're doing, we're expecting orders the second half of next year, within system ramp into 2023 and onto 2024. Second half of 2022. Okay. overall in the LSA market, what do you think your market share is? Maybe help us understand what the market share is between flash and then the lasers. I would say, today, David, if there are five or six logic annealing steps, today about three of those are the most challenging ones where the thermal budget is very constrained. There are about three of those steps that are available to us today. If there are three advanced logic customers, we have one step at one customer, three steps at a second customer, and zero steps at a third customer. If you think three customers, three applications, nine total available to us, today we have four. We have an evaluation system at the third logic customer, and we don't have any business, so that would be an incremental opportunity. We're continuing to win next nodes at two of our current customers. You know, I would say at a very high level, four out of nine in logic, and really zero share in DRAM. I think as the nodes progress and the world moves towards Gate-All-Around, as Adrian discussed, there would be potential to have more than three applications in logic, as time moves forward. Hopefully that clears that up for you. Yeah. Then maybe just to follow on as far as flash versus LSA, are the steps that are not available to you, are those flash steps or is it the competitor, is it SCREEN with similar technology? I believe those are flash anneal today. Maybe one is a laser competitor. I don't know. Adrian, you wanna add some more color to that? Bill, let me add some more color. I think, with the progression of advanced nodes, we see more applications requiring the low thermal, low thermal budgets, and that's the key to laser annealing continuing to win market share. We expect to win more of those applications as flash runs out of steam, so to speak, as I shared in the prepared remarks. I think we see our share overall increasing as the application requirements drive a need to kind of the unique capabilities we have away from other annealing technologies like flash and other thermal annealing technologies, towards the LSA and laser annealing technologies. Excellent. Final question from me. In the advanced packaging market, could you take a guess as to what you think the size of the advanced packaging lithography market is in 2021 and what you think it might be in 2022? Whatever the size of the market that you refer to, does that include panel or is this without panel? I'll pass that question off to Adrian. We describe our served available market in advanced packaging lithography as the wafer portion only. We don't have a panel product, and that's not part of our SAM. Our market share position is actually strong and growing a bit. I would say our market share currently is probably 60-plus% in the advanced packaging lithography space. I'll pass it to Adrian for some more color. Sure. Yeah. I think we see the market significantly increasing year-over-year from 2021- 2022 and beyond. It's really driven by our strong incumbency position, where our AP300 tool has a unique combination of performance and cost of ownership, and as I mentioned, is a PTOR tool at major OSATs and on the advanced packaging space. We believe will continue to maintain good market share with our strong PTOR position. I'm sorry, did you mention how big you thought the size of this market was as far as dollars? You might have said it, but I think I missed it. Yeah. I think, you know, it's difficult to estimate these markets. I would say it's doubling over the next year or so. It's probably in the $100+ million range next year. Thank you. Thank you, David. Thank you. We do have an additional question from the line of Gus Richard with Northland. Please proceed. Yes, thanks for taking the additional question. Just following up on lithography. You know, I think dimensions, critical dimensions are shrinking in advanced packaging, and I was wondering, you know, is that still in the window for the Ultratech system? Is some of it moving out or is more of it moving into, you know, where that system is optimized? I'll pass it to Adrian here. I think the simple answer is, clearly it's in the sweet spot of our product offering. We're very competitive and doing quite well. Adrian, I don't know if you have any other color you'd like to add. Sure. Let me add some additional color here. I think most of the applications today really are well within the sweet spot of our AP300 tool. As I mentioned before, really what differentiates that tool is not just the performance at fine lines, but it's the other capabilities, flexibility with the type of photoresist, ability to handle warped wafers and things like that. We believe we're firmly in the sweet spot today, and we'll continue to be. In fact, most of the applications are well below the most advanced capability of the system. In addition to that, one of our evaluation tools out there is at a more advanced capability, and that has gone quite well. We believe we're positioned well for today's applications as well as for the coming applications. Got it. As a follow on, in terms of GaN power, I really think there's only one company shipping a lot of product there. I was wondering how many customers you have in GaN power. Is there any interest in GaN RF, and is there any interest in high mobility channel and semi? I would say we have a number of customers that we're working with. Probably less than a handful, but certainly more than one or two in GaN power. We do have an evaluation system for GaN-on-silicon at eight inch that recently shipped. A lot of the customers are actually looking to use the equipment, the tools for not only GaN power but GaN RF as well. Adrian, you may have some more to add there. I think the way we are focused in the GaN power segment is we are focused in an expected transition and inflection point, if you will, from six inch to eight inch. A number of our tools have been placed at key customers, including major foundry customers to be to time for this type of an inflection. We believe our Propel platform has a significant advantage to a single wafer system, significant advantage over batch systems for those applications. GaN RF is also a market segment there, it is fairly small in terms of the amount of FE equipment needed to satisfy that segment. High mobility channel, I think you have shipped one 12 inch product for GaN, just wondering if that is something people are considering? It is something people are considering, but I would say it's certainly much further out in our planning horizon here. There's continues to be interest and concept and feasibility work that we always engage with advanced customers in this area. Got it. Thanks. I will pass it on. Thanks, Gus. Thank you. There are no further questions, so I'd like to pass the floor back over to Bill Miller for additional remarks. Thank you, operator, and thanks to everyone for joining us today. I'd like to in particular call out the Veeco United team who's done a fantastic job turning our strategy into a plan and into an execution mode. For our investors and analysts, we look forward to updating you on our progress in the upcoming events. Have a great day, everybody, and thank you for your time. Ladies and gentlemen, thank you for attending Veeco's Analyst.