Financial Data and Key Metrics Changes - The company reported first quarter revenue of $13.1 million, exceeding the guidance range of $12 million to $13 million, driven by stronger than expected product revenue [5][14] - Non-GAAP EPS for the first quarter was $0.02, above the guidance range of a non-GAAP net loss of $0.05 to breakeven [16] - GAAP gross margin was 51.4%, slightly up from 51.3% in the previous quarter but down from 56.5% in Q1 2024 [15] - Non-GAAP net income was $400,000, compared to $1.5 million in Q1 2024 [16] Business Line Data and Key Metrics Changes - MRAM product sales in Q1 were $11 million, consistent with Q4 2024 and slightly up from $10.9 million in Q1 2024 [14][15] - Licensing, royalty, patent, and other revenue decreased to $2.1 million from $3.6 million in Q1 2024, attributed to lower revenue from the Front Grade project [15] Market Data and Key Metrics Changes - The company continues to see strong engagement in the automotive sector, with MRAM technology being utilized by five companies for data capture [6] - The company attended Embedded World in Germany, marking its largest presence since 2017, indicating strong interest in its products [10] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue, with expectations for a stronger second half of 2025 due to typical seasonality [18][19] - New products announced include the Persist EM064LX HR and EM128LX HR, designed for automotive applications, with engineering samples available in June 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half, reflecting typical seasonality and no significant impact from tariffs [14][18] - There are signs of cyclical recovery in the industrial segment, with improvements in backlog and traction on STT products [30][42] Other Important Information - The company maintains a strong balance sheet with cash and cash equivalents of $42.2 million, up from $42.1 million in the previous quarter [17] - The company is involved in projects with the Department of Defense and other strategic partners, indicating a focus on high-reliability applications [9][13] Q&A Session Summary Question: Impact of tariffs on products going to China - Management indicated that direct sales to China are not significant, and tariffs would primarily affect the importer, not the company directly [22][24][26] Question: Signs of cyclical recovery in industrial business - Management confirmed improvements in backlog and traction on STT products, indicating a positive trend in the industrial segment [30][32][42] Question: Commentary on second quarter guidance and revenue split - Management expects overall revenue to increase, but did not provide specific guidance on the split between product and licensing revenue [32][34] Question: Dynamics of gross margins - Management stated that gross margins are expected to remain consistent around 51% for the rest of the year [38] Question: Expectations for operating expenses - Management anticipates operating expenses to remain in the same range throughout the year, with some increases due to product development work [48]