Financial Data and Key Metrics Changes - The company reported Q2 revenue of $124 million, which is up 3% from Q1 and flat compared to the same period last year [6][15] - Non-GAAP gross margin remained strong at 69.3%, with adjusted EBITDA expanding to 34.1% [7][16] - Non-GAAP EPS was $0.24, up from $0.22 in Q1 and $0.23 in the year-ago period [17] - GAAP net cash flow from operating activities increased to $38.5 million, up from $31.9 million in Q1 [17] - Free cash flow in Q2 was $31.3 million, with a free cash flow margin of 25.2%, up from $23.3 million and 19.4% in Q1 [17] Business Line Data and Key Metrics Changes - The communications and computing segment grew 20% sequentially and 26% year-over-year, with the server segment showing an 85% year-over-year growth [10][25] - Industrial and automotive segments declined sequentially, but the company expects to normalize channel inventory by year-end [11][12] - Total revenue from new products continues to grow at a strong rate, on track to exceed 2025 goals [12] Market Data and Key Metrics Changes - The company noted strong demand in communications and computing, driven by data center infrastructure [10] - Industrial and automotive segments are expected to recover, with significant growth anticipated in 2026 [11][40] - The company reported record design wins across all segments, indicating strong future demand [54] Company Strategy and Development Direction - The company continues to execute its long-term strategy, focusing on innovation and deepening customer engagements [13] - The management emphasized the importance of being a companion to AI accelerators and other advanced applications [9][97] - The company is committed to returning capital to shareholders while investing in growth opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market environment, citing strong demand in communications and computing [7][8] - The company is confident in its ability to navigate macro uncertainties and invest for future growth [19] - Management expects continued growth in revenue and profitability for Q3, with guidance of $133 million in revenue [12][20] Other Important Information - The company is debt-free and has access to capital for future investments [19] - Management highlighted the importance of maintaining strong gross margins and operational efficiency [16][31] Q&A Session Summary Question: Insights on companionship opportunities and data center infrastructure - Management believes the company is well-positioned to benefit from increased AI infrastructure spending as it exits 2025 and into 2026 [24][25] Question: Update on new products versus core products - The company is on track to exceed its forecast for new product revenue, expecting significant growth in 2026 [28] Question: Confidence in the business model and future opportunities - Management expressed strong confidence in the durability of the business model and the potential for growth in various sectors [35][36] Question: Revenue growth target for 2026 - The company confirmed that the 15% to 20% revenue growth target for 2026 remains viable [38][39] Question: Changes in customer order patterns in China - Management has not observed significant changes in order patterns despite geopolitical volatility [88][89] Question: Growth drivers in the AI infrastructure market - The company is seeing strong growth in AI-related revenue, with expectations for continued expansion [94][95] Question: Impact of tariffs on business - Management indicated that existing country-specific tariffs would supersede any new tariffs, minimizing potential impacts [102][104]