Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $290 million, reflecting a 6.8% decrease from $311 million in Q1 2024, with an organic decline of 5% [6][25] - Adjusted EBITDA for Q1 2025 was $41 million, or 14.1% of sales, down from $54.9 million and 17.7% in the prior year [31] - GAAP net income was $13.1 million compared to $28.4 million in the prior year, impacted by lower net sales and increased costs related to ERP projects and restructuring [23][24] Business Line Data and Key Metrics Changes - Equipment sales declined by 9%, and parts and consumables sales decreased by 4.7%, while service and other saw organic growth, but overall service revenue was down by 1.4% due to unfavorable foreign exchange impacts [26][27] - The AMR (Autonomous Mobile Robot) segment saw a 30% increase in sales compared to Q1 2024, contributing approximately 5% to net sales [16] Market Data and Key Metrics Changes - In The Americas, organic net sales decreased by 6.9%, but order rates increased by 20% compared to the prior year [10][28] - EMEA experienced a 2% growth on a constant currency basis, driven by acquisitions and pricing realization, while APAC saw a 7.5% decline due to demand issues in China and Australia [11][12][28] Company Strategy and Development Direction - The company is focused on executing its enterprise strategy, which includes pricing discipline, launching innovative products, and investing in go-to-market opportunities [12][15] - The introduction of the Clean360 program aims to make AMR adoption more accessible by offering a subscription model that includes equipment, software, and maintenance [19][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs and economic uncertainty but noted stable demand for products and strong order rates [20][21] - The company expects to grow orders by 3.5% to 7% in 2025, despite challenges in translating order growth into equivalent organic sales growth due to prior backlog reductions [9][22] Other Important Information - The company anticipates a full-year impact of approximately $40 million from tariffs, representing around 5% of total cost of goods sold, and is implementing mitigation strategies [34][35] - The company maintains a strong liquidity position with approximately $80 million in cash and $434 million in unused borrowing capacity [32] Q&A Session Summary Question: Concerns about margin guidance and inflationary pressures - Management explained that the margin decline was due to a backlog headwind and a mix of strategic customer shipments at lower margins, but they expect a return to a more normalized mix in future quarters [40][46] Question: Impact of price hikes on demand - Management noted that it is too early to assess the impact of announced price hikes on demand, but they are closely monitoring customer behavior [62] Question: Clarification on the Clean360 program - The program was developed in response to customer feedback regarding high initial costs of AMR products, aiming to provide a more accessible option for customers [72][75]