Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $202.7 million, with non-GAAP gross margins at 41%, up 250 basis points from 38.5% in Q2 2025 [23][24] - GAAP gross margins for Q3 were 39.8%, compared to 37.3% in Q2 [25] - Non-GAAP EPS for Q3 was $0.33, exceeding the high end of the outlook range of $0.21-$0.29 [23][24] - Free cash flow in Q3 was $19.7 million, a significant improvement from negative $47.1 million in Q2 [26] Business Line Data and Key Metrics Changes - In the DRAM probecards segment, there was double-digit sequential growth in Q3, primarily driven by HBM [10] - The systems segment also saw a sequential revenue increase in Q3, with expectations for further growth in Q4 [15] Market Data and Key Metrics Changes - The company expects continued growth in HBM revenue, with Q3 HBM revenue around $40 million, primarily from HBM applications [54] - The foundry and logic probecard market experienced weaker demand in Q3, with expectations for similar levels in Q4 [12] Company Strategy and Development Direction - The company is focused on improving profitability to reach a target model of 47% non-GAAP gross margins, with short-term and long-term initiatives in place [6][19] - The strategy includes optimizing operational effectiveness, reducing manufacturing costs, and expanding capacity at a lower cost through the new Farmers Branch facility [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving sequentially higher revenue and gross margins in Q4, driven by improved product mix and cost reduction initiatives [6][28] - The company is addressing challenges such as tariffs and supply chain disruptions while focusing on long-term growth opportunities in advanced packaging and high-performance computing [9][28] Other Important Information - The company plans to invest between $140 million and $170 million in the Farmers Branch facility over 2026, which is expected to enhance gross margins beyond the current target model [27][64] - The company is committed to share repurchase programs to offset dilution from stock-based compensation, with $70.9 million remaining for future purchases [27] Q&A Session Summary Question: Insights on HBM growth and test intensity - Management noted that the transition to HBM4 is expected to increase test intensity and complexity, driving demand for probecards [34] Question: Contribution of tactical versus structural improvements to gross margin - Management indicated that both tactical and structural improvements are contributing to the gross margin roadmap, with ongoing benefits expected [37] Question: Impact of CPU and GPU customer ramps on foundry and logic - Management highlighted that while specific quantification is challenging, significant impacts are anticipated as qualifications and commercial negotiations progress [43] Question: Revenue contribution from ASIC projects - Management confirmed ongoing engagement with major hyperscalers in the custom ASIC space, with contributions expected to grow as specifications align with GPU requirements [61] Question: Timing and focus of capacity expansion at Farmers Branch - Management stated that initial capacity from the Farmers Branch facility is expected to come online late in 2026, with a focus on flexibility to support various product lines [49][50]