Financial Data and Key Metrics Changes - Gross profit improved to 29.2% in fiscal year 2025 compared to 28% in the prior fiscal year, driven by higher revenue and favorable manufacturing overhead rates [2] - Operating income increased by $2.3 million, or 47.9%, to $7.1 million in fiscal year 2025, primarily due to increased gross profit [3] - Net income applicable to common shareholders rose to $5.1 million in fiscal year 2025 from $3.8 million in the prior year, an increase of $1.3 million [3] - Adjusted EBITDA increased by $2.3 million to $8 million during the 12 months ended September 28, 2025, compared to $5.7 million in the previous year [4] Business Line Data and Key Metrics Changes - The company booked $36.2 million in new orders during the 12 months ended September 28, 2025, a 0.5% decrease from $36.4 million in the prior year [4] - Backlog as of September 28, 2025, was $39.1 million, down from $44.2 million as of September 29, 2024 [4] Market Data and Key Metrics Changes - Reduced demand attributed to delays in government contracts, including ARC3 Abrams replenishment contracts and the BNVG Night Vision Goggle program, impacting orders in the last three months of fiscal year 2025 [5] Company Strategy and Development Direction - The company aims to continue double-digit growth while exploring new opportunities, including the production of the Lightweight Transit and driver periscope assembly for the XM30 [11] - A strategic review identified key personnel and equipment to enhance product capabilities in reticles, coatings, and optical assembly [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about resolving government funding issues by the end of January 2026, despite uncertainties beyond that date [5] - The transition of leadership from Danny Schoening to Chad George was described as well-planned, with a focus on maintaining the company's strong position [12][16] Other Important Information - Danny Schoening resigned as CEO, with Chad George appointed as his successor effective December 20, 2025, while Schoening remains as Chairman of the Board [6][7] Q&A Session Summary Question: Concerns about the transition period following the CEO's departure - Management clarified that the transition was planned over several months, ensuring a smooth handoff despite external perceptions of a quick change [15][16]

Core Viewpoint - The article discusses the significant decline in public perception and trust towards Xiaomi's automotive products, particularly the YU7 model, leading to increased customer dissatisfaction and a drop in stock prices. Group 1: Brand Reputation and Customer Sentiment - Xiaomi's brand reputation has deteriorated, resulting in a negative impact on its car owners, who now face relentless criticism and skepticism regarding product reliability [3][12][30] - Recent data indicates a high order cancellation rate for the Xiaomi YU7, with some models experiencing a postponement rate of up to 30% [3][12] - Xiaomi's stock price has dropped nearly 30% from its peak earlier in the year, reflecting investor concerns over the brand's reputation [3][12] Group 2: Customer Experiences and Reactions - Some customers, like Lin Lei, have expressed disappointment after initially being excited about their YU7 orders, leading to a decision to cancel due to ongoing issues and lack of communication from the company [6][7] - Other customers have reported feeling misled by marketing claims, such as exaggerated range and features, which has contributed to a sense of betrayal among early adopters [12][18] - Despite the negative sentiment, a subset of customers continues to defend the brand, sharing positive experiences to counteract the prevailing criticism [6][14][18] Group 3: Market Position and Competitive Landscape - Xiaomi's entry into the automotive market has been met with skepticism, and the company is now facing increased scrutiny as it attempts to establish itself among established competitors [30][31] - The article highlights the challenges Xiaomi faces in maintaining its market position, as customer expectations rise alongside its growing brand presence [30][31] - The automotive sector's competitive nature means that Xiaomi must address quality and reliability issues to regain consumer trust and stabilize its market share [30][31]