Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year, marking the highest quarterly earnings result in the company's ten-year history [4] - Same property NOI increased by 3.8% compared to the first quarter of last year, benefiting from improved recovery ratios and better-than-expected collections [4][18] - The company has approximately $800 million of total liquidity, including $98 million in cash, with a manageable debt maturity profile [19] Business Line Data and Key Metrics Changes - The company executed 42 leases totaling 434,000 square feet, including 18 new leases amounting to 118,000 square feet with same space cash leasing spreads of 34% [4][13] - Tenant retention ratio remains high at 95%, and SHOP occupancy grew to a record 92.4% [5][14] - The same property lease rate stands at 96.6%, reflecting a 50 basis point decrease over the previous quarter [13] Market Data and Key Metrics Changes - The investment sales market is showing early signs of slowing down, with limited CMBS issuance since April [6] - Transactions with private buyers remain active, highlighted by a successful $25 million sale of land approved for residential units [7] - The company plans to reinvest capital from property dispositions into accretive acquisitions to enhance portfolio quality and growth rate [8] Company Strategy and Development Direction - The company is reiterating its 2025 full-year guidance of achieving FFO as adjusted of $1.37 to $1.42 per share, reflecting growth of 4% at the midpoint [8][20] - The company has a large redevelopment pipeline totaling $156 million, expected to generate a 14% return [10][15] - The company is focused on capital recycling, having acquired over $550 million in assets at a 7.2% cap rate while selling approximately $450 million at a 5.2% cap rate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative outlook for the back half of the year due to economic volatility, despite a stronger start to the year [9][21] - The company is confident in its ability to navigate economic cycles, emphasizing the strength of its tenant roster and balance sheet [22] - Management noted that the overall health of retailer balance sheets is strong, with no significant bankruptcy risks anticipated [48] Other Important Information - The company has no corporate debt other than $50 million currently drawn on its line of credit, isolating market risk to individual assets [11] - The company has built in more conservative assumptions for the remainder of the year, incorporating contingencies for potential volatility in rent collections [21] Q&A Session Summary Question: Impact of macro uncertainty on leasing timelines - Management has not seen any slowdown from retailers, with ongoing strong demand across the portfolio [26][27] Question: Details on dispositions and acquisition opportunities - The company has successfully announced $66 million in dispositions at a 5% cap rate, with plans to pursue acquisitions [28][29] Question: Caution in guidance due to market volatility - Management has added to contingency measures in guidance but did not specify any particular tenant concerns [35][36] Question: Rent growth context and impact of bankruptcies - Management indicated a 5% to 10% increase in market rents, with no significant impact from recent bankruptcies on overall demand [44][46] Question: Performance of the portfolio in recessionary environments - Management believes the portfolio is well-positioned to perform better than typical grocery-anchored centers during economic downturns [51][52] Question: Bad debt assumptions and exposure to Kohl's - The company reiterated bad debt guidance of 75 to 100 basis points of gross rents, with no near-term bankruptcy risk for Kohl's [60]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $14,400,000, consistent with targets and the same as Q1 2024 [8][23] - Gross profit was $4,400,000, representing a gross margin of 30.3%, up from $4,100,000 and 28.5% in Q1 2024 [24] - Operating loss decreased to $2,400,000 from $2,700,000 year-over-year, while net loss improved to $2,100,000 from $2,400,000 [25] Business Line Data and Key Metrics Changes - The company reported significant design win momentum, with three new design wins in 2025, including contracts with cybersecurity leaders and a global network test equipment company [10][12][15] - The focus on core product lines and deep customer relationships has created a solid pipeline for future growth [9][16] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 70.8%, Europe and Israel at 14%, and the Far East and Rest of the World at 8% [23] - The top 210%+ customers accounted for about 24% of revenues over the last twelve months [23] Company Strategy and Development Direction - The company aims for a return to solid double-digit growth rates starting in 2026, with long-term financial goals of achieving EPS above $3 based on revenues between $150,000,000 and $160,000,000 [9][20] - A robust pipeline of opportunities across various product lines is expected to drive future growth, with a focus on building long-term relationships with customers [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in 2026 and beyond, supported by a strong balance sheet and no debt [8][21] - The company anticipates low single-digit growth for 2025, with double-digit growth expected for 2026 [19] Other Important Information - The company has a strong balance sheet with $119,000,000 in working capital and marketable securities, including $77,000,000 in cash [8][25] - The share buyback program saw the purchase of nearly 100,000 shares in Q1 2025, with about $8,000,000 remaining in the program [44][48] Q&A Session Summary Question: What milestones are tracked for design wins? - Management outlined milestones including customization development, shipping samples, and mass production readiness [28][29][30] Question: Is there increased demand for FPGA-based products? - Management confirmed strong demand across all product lines, including FPGA, and highlighted a recent strategic partnership for cybersecurity solutions [31][32] Question: What is the impact of tariffs? - Currently, the company's products are exempt from tariffs, and management is monitoring the situation closely [33][34][36] Question: Update on share buyback program? - The company purchased nearly 100,000 shares in Q1 2025, with over $8,000,000 remaining in the buyback program [44][48] Question: Are major customers reordering after excess inventory? - Management noted some relief in excess inventory issues, with some customers beginning to reorder, but the situation varies by customer [50][51][52]

Financial Data and Key Metrics Changes - The company reported total revenue of $355.4 million, up 9.8% year-over-year on a GAAP basis and up 10.9% year-over-year on a constant currency basis, exceeding growth expectations [11][12] - Non-GAAP operating margin increased nearly 230 basis points year-over-year to 19.3%, representing a first quarter record for the company [12][29] - Non-GAAP EPS grew by 15%, exceeding the high end of expectations [12][30] Business Line Data and Key Metrics Changes - Cardiovascular segment sales grew by 9%, while Endoscopy segment sales surged by 64% [17][18] - Cardiac intervention product sales increased by 12%, driven primarily by the acquisition of Cook Medical Products [20] - Sales of OEM products increased by 21%, significantly outperforming guidance [21] Market Data and Key Metrics Changes - U.S. sales increased by 14% on a constant currency basis, exceeding expectations [23] - International sales grew by 6% year-over-year, with APAC and EMEA regions performing at the high end of expectations [24] - Sales in China decreased by 10%, attributed to broader macroeconomic conditions rather than specific demand issues [25][62] Company Strategy and Development Direction - The company remains focused on delivering strong execution, solid constant currency growth, and free cash flow generation in 2025 [15][37] - Updated financial guidance reflects the impact of tariffs and trade policies, with non-GAAP EPS expectations adjusted to $3.29 to $3.42 [34][37] - The company is implementing cost control measures and leveraging existing initiatives to mitigate tariff impacts [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by tariffs and macroeconomic conditions [41][112] - The company is monitoring the tariff situation closely but is not making long-term decisions based on short-term fluctuations [110][112] - Management remains optimistic about the demand for products in China despite recent challenges [63][99] Other Important Information - The company generated $19.5 million of free cash flow in Q1 2025, down 20% year-over-year due to increased capital expenditures [32] - Total debt obligations stood at $747.5 million, with a net leverage ratio of 1.8x as of March 31, 2025 [33] Q&A Session Summary Question: Can you provide more color on mitigation efforts regarding tariffs? - Management indicated that mitigation efforts are centered around existing initiatives and operational efficiencies, with a focus on maintaining execution [54][56] Question: What is the outlook for demand in China? - Management noted that the softer revenue results in China were primarily due to macroeconomic factors, and they have not changed their full-year outlook for the region [62][99] Question: How is the company managing tariff impacts on free cash flow? - Management emphasized that they have a plan in place to manage working capital and mitigate tariff impacts, maintaining a free cash flow guidance of at least $150 million for 2025 [90][94] Question: What is driving the recent growth in the OEM business? - Management attributed the growth to new accounts and the company's longstanding reputation for quality and reliability, rather than inventory pull-forward due to tariffs [101][105]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $82.9 million, down 2% year over year, but within the upper end of guidance [5][27] - Non-GAAP gross margins were 57.7%, up from 51.8% in the previous year, marking a 590 basis points year-over-year expansion [5][27] - Non-GAAP operating expenses were $38.5 million, down $2.2 million from the previous year [5][28] - Non-GAAP EPS was $0.33, compared to $0.09 in Q1 2024, representing significant growth [6][30] - Adjusted EBITDA was $12.5 million, or 15% of sales, compared to $5.6 million in the previous year [29] Business Line Data and Key Metrics Changes - The Americas and European regions saw a revenue decline of 31% each, while the Asia Pacific region experienced a 1% growth [27] - The company launched several new products, including LEAP and BLINK, which are expected to contribute positively to revenue in the upcoming quarters [12][42] Market Data and Key Metrics Changes - The underlying market conditions remained challenging, particularly in the Americas due to tariff-related uncertainties [10][32] - Despite the difficulties, net orders grew by 6% year over year, indicating a positive trend in backlog [9][10] Company Strategy and Development Direction - The company is focused on a three-phase strategy to create shareholder value, with the first phase emphasizing operational excellence and the second phase targeting organic growth [6][7] - The third phase will involve selective higher-risk investments as the company strengthens its cash position [7] - The company aims to refresh its product portfolio and develop global partnerships to drive growth [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, noting that demand is currently outpacing Q1 levels [25][40] - The company is prepared for potential challenges related to tariffs and has plans in place to mitigate impacts [20][21] - Management believes that tariffs could ultimately become a net positive as companies look to diversify supply chains [25] Other Important Information - The company has established a strong cash position, with cash and short-term investments totaling $102.6 million at the end of the quarter [30] - The company is actively managing its partnerships and expects contributions from new agreements in the upcoming quarters [17][18] Q&A Session Summary Question: How is the hardware business shaping up for Q2? - Management noted that while they historically see a larger portion of revenues late in the quarter, they are currently seeing a decent start to Q2, with cautious optimism despite planning for a potential 10% decline in the hardware market [37][39] Question: What is the expected impact of new products on Q2? - Management indicated that new products like LEAP and BLINK are expected to contribute positively in Q2, with strong pre-orders for BLINK already noted [41][42] Question: Can you provide insights on order growth and backlog? - Management clarified that the order growth was not specifically aimed at building backlog, but they did see some late orders that could help solidify their outlook for Q2 [52][55] Question: Are there any delays in product launches or partnerships due to the current environment? - Management confirmed that they do not anticipate delays in product launches or partnerships, viewing the current environment as an opportunity for growth [56][58]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $9.3 million, an 18% increase from $7.9 million in Q4 2023, and $37.7 million for the full year 2024, a 3% increase from $36.7 million in 2023 [25][34] - Adjusted to exclude revenue from a single large clinical solutions order of $2.7 million in 2023, total revenue growth was 11% in 2024 [9][25] - Free cash outflow improved from $26.7 million in 2023 to $13.5 million in 2024 [24][36] Business Line Data and Key Metrics Changes - Revenue from catalog reagents represented approximately 60% of total revenue, growing low single digits in 2024, with 7% growth in the second half of the year compared to the second half of 2023 [13] - Custom biopharma business grew about 40% in 2024, with a robust growth of approximately 25% excluding a new therapeutic customer [16] - Clinical Solutions revenue was $1.9 million in Q4 2024, a 110% increase from $0.9 million in Q4 2023, and $7.1 million for the full year 2024, a 5% increase from $6.7 million in 2023 [27] Market Data and Key Metrics Changes - Sales to biopharma customers represented approximately 70% of custom revenue and 25% of total revenue in 2024 [15] - The company supported 48 clinical customers in 2024, up from 34 in 2023, with 39 being biopharma-related [8][17] - The company expects mid-single-digit growth in catalog business for 2025, reflecting market stabilization [20] Company Strategy and Development Direction - The company aims to expand its product portfolio through collaborations and acquisitions over the next 12 to 24 months [22] - The focus remains on executing the growth strategy laid out in 2021 to achieve long-term sustainable growth [8] - The company plans to moderately increase investments in sales and marketing to position itself for market recovery [40] Management's Comments on Operating Environment and Future Outlook - Management noted cautiousness among customers due to macroeconomic uncertainty, particularly regarding capital flow into the sector [39] - The company expects 2025 to be a recovery year, with guidance for total revenue of $39 million to $42 million, implying 7% growth compared to 2024 [38] - Management expressed confidence in achieving at least 15% growth in custom products sold to biopharma accounts despite current uncertainties [21] Other Important Information - The company reported a net loss of $5.7 million for Q4 2024, an improvement from a net loss of $10.7 million in Q4 2023 [34] - Adjusted EBITDA for the full year of 2024 was negative $14.5 million, an improvement from negative $19.8 million in 2023 [34] - The company has amended and extended its credit facility, increasing liquidity by $4 million [43] Q&A Session Summary Question: Comments on customer budget softening - Management noted recent softening in customer budgets, particularly among smaller biotech firms, while larger pharma customers remain positive [51][52] Question: Composition of new customer pipeline - Most new customers are in preclinical or phase one stages, with successful transitions from phase two customers [56] Question: Any large one-time orders expected in 2025 - Management indicated no significant one-time orders are anticipated for 2024, but acknowledged potential revenue lumpiness [58][61] Question: Updated number of cell and gene therapy customers - The company now supports over 100 total cell and gene therapy customers, with 27% of total revenue coming from this segment [66] Question: Revenue phasing for 2025 - Management expects Q1 2025 to be the lowest quarter, with a gradual increase through Q2 and Q3, followed by a potential decrease in Q4 [70] Question: Revenue ramp for new clinical customers - It typically takes about a year to a year and a half for new clinical customers to reach spending levels comparable to more mature customers [79] Question: Pricing changes for reagents - The company implemented mid-single-digit price increases for its products at the beginning of the year [82]