Although revenues in the WFE industry have grown more than 50% over the past three years, driven by growing demand for data and storage, we expect this trend to reverse in 2019. We believe that industry revenues will fall 10% to 20% due to significant memory oversupply, weak smartphone sales, and overall tepid macroeconomic conditions, especially in China. At the same time, we expect KLA-Tencor to be less affected than its WFE peers because of its lower exposure to memory customers. The WFE industry has historically been marked by noticeable cycles in which strong capital spending is inevitably followed by significant contraction caused by oversupply or a weak economy. KLA-Tencor's service revenues, which reached $876 million in fiscal 2018, or
