Financial Data and Key Metrics Changes - For the fiscal first quarter of 2025, the company reported revenue of $24.4 million and adjusted EBITDA of $1.9 million, with year-over-year adjusted EBITDA increasing by $1.8 million [5][6] - Net revenues increased by 1% sequentially but decreased by 2% year-over-year, primarily due to lower sales of wafer cleaning equipment [13] - GAAP net income for the first quarter was $300,000 or $0.02 per share, compared to a net loss of $9.4 million or $0.60 per share in the same quarter last year [15][16] Business Line Data and Key Metrics Changes - The Semiconductor Fabrication Solutions business includes various consumables and capital equipment, aiming for sustainable growth through recurring revenue streams [9] - The Thermal Process Solutions business focuses on reflow equipment for advanced chip packaging, with a goal to drive long-term growth [9] Market Data and Key Metrics Changes - Demand for equipment and consumables in mature node semiconductor production remains muted, particularly in industrial equipment and automotive sectors [8] - However, demand for reflow equipment in leading-edge applications, such as AI infrastructure, has strengthened [8][11] Company Strategy and Development Direction - The company is focused on operational excellence and cost optimization, with restructuring initiatives yielding over $8 million in annualized cost savings [6][10] - Investments in AI-related infrastructure and supply chain diversification are expected to drive recovery in capital equipment demand [11] - The company is refining its business segments to provide greater clarity and focus, enhancing its ability to adapt to market demand [8][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the near-term outlook for revenue and earnings remains challenging, long-term prospects are strong for consumables and equipment serving advanced mobility and packaging applications [17] - The company is optimistic about future growth drivers, despite the current softness in the market [10][11] Other Important Information - Unrestricted cash and cash equivalents increased to $13.2 million, attributed to stronger accounts receivable collection and inventory management [17] - The company expects revenues for the second fiscal quarter to range between $21 million and $23 million, with adjusted EBITDA expected to be nominally positive [17] Q&A Session Summary Question: Are there still additional costs that can be taken out of the business? - Management indicated ongoing efforts in supply chain management and footprint utilization to reduce input costs and fixed costs [20] Question: What is the current outlook for the automotive market? - Management noted continued softness in the automotive equipment segment, with no signs of a sharp recovery [22][23] Question: Can you provide more details on the advanced packaging space? - Management observed strengthening in the advanced packaging area, particularly for AI data centers, and expects increased volume to drive growth [27][28]

Financial Data and Key Metrics Changes - In Q4, revenues were $189.5 million, a decrease of 9% from the record revenues in Q3 and an increase of 12.7% year-over-year from Q4 2023 [16] - Non-GAAP gross margin for Q4 was 40.2%, down 0.8 percentage points from the midpoint of the outlook range [16] - Non-GAAP EPS for Q4 was $0.27, down from $0.35 in Q3 [24] - For fiscal 2024, total revenues were $764 million, up 15.2% from $663 million in fiscal 2023 [16] Business Line Data and Key Metrics Changes - Probe card segment revenues in Q4 were $150.3 million, a decrease of 12.7% from Q3, driven by lower Foundry and Logic and Flash revenues, partially offset by record DRAM revenue [17] - DRAM revenues reached a record $63.3 million in Q4, accounting for 33.4% of total quarterly revenues [18] - Foundry and Logic revenues were $83 million in Q4, a decrease of 22.5% from Q3, representing 44% of total revenues [18] Market Data and Key Metrics Changes - The semiconductor industry is experiencing contrasting dynamics, with strong growth in generative AI and high bandwidth memory (HBM) while facing weak demand in client PCs and mobile handsets [5][6] - HBM revenues for fiscal 2024 totaled $126 million, nearly a $100 million increase from fiscal 2023 [19] Company Strategy and Development Direction - The company announced the acquisition of FICT Limited to enhance its capabilities in advanced packaging and strengthen its supply chain [7][8] - Partnerships with Advantest Corporation aim to accelerate innovation in wafer-level testing for high-performance computing applications [8] Management's Comments on Operating Environment and Future Outlook - Management expects a sequential reduction in demand for non-HBM DRAM probe cards due to export controls affecting shipments to China [10] - The company anticipates an overall increase in demand for its products as it moves through 2025, driven by HBM and new customer qualifications [11][55] Other Important Information - The company generated free cash flow of $28.8 million in Q4, an increase from $20 million in Q3 [25] - The company repurchased shares worth $16.1 million during Q4, with $20.5 million remaining under the buyback program [26] Q&A Session Summary Question: Can you unpack the foundry logic DRAM between non-HBM and HBM? - The largest component of the non-HBM DRAM reduction in Q1 is associated with advanced DRAM probe cards shipping into China, which is expected to be zero due to export controls [33][34] Question: What is the outlook for non-HBM DRAM? - Non-HBM DRAM continues to operate at cyclical lows around $20 million per quarter, with limited activity expected [38] Question: Why is volume impacting the business in the near term? - Volume is impacted due to the need for new design releases to ramp in volume, which is currently limited by weak demand in markets like PCs and mobile [42][45] Question: What is the impact of the large U.S. customer not appearing on the 10% list? - There is broad-based weakness across foundry and logic, particularly in the microprocessor business, which did not contribute significantly to revenue [48] Question: What is the outlook for HBM and foundry logic business? - HBM and the transition to HBM4 are expected to drive growth, with a reasonable assumption of returning to $100 million levels in foundry and logic [55] Question: Can you elaborate on the hyperscalers' engagement? - The company is engaging with hyperscalers developing custom ASICs for AI applications, which is a new growth area [65] Question: What are the growth drivers in the systems business? - Growth in the systems segment is expected from the transition of silicon photonics and co-package optics to pilot production, alongside investments in quantum computing [76] Question: What is the margin outlook for HBM versus traditional DRAM? - HBM revenue has higher margins compared to traditional DRAM, but specific margin breakdowns were not provided [78]