Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $69.5 million, representing a 58% increase year over year [8][15] - Gross margin increased to 58.2%, up 80 basis points sequentially [15] - EPS rose to $0.47, up from $0.12 a year ago [9][15] - Non-GAAP operating income improved by $9.9 million or 16 percentage points compared to the same quarter last year [16] Business Line Data and Key Metrics Changes - The Comms Enterprise Data Center (CED) segment grew 137% year over year to $36 million [15] - Automotive, industrial, and defense markets saw an 11% year-over-year increase to $16.5 million [15] - Mobile IoT and consumer market revenue increased by 23% year over year to $17 million [15] Market Data and Key Metrics Changes - All markets and geographies demonstrated continued growth, with double-digit percentage increases in Mobile IoT, Consumer, and Auto Defense Industrial segments [12] - The automotive market is experiencing growth driven by fully autonomous operations, with significant traction in robotaxis and defense spending [13] Company Strategy and Development Direction - The company is focused on high-value applications in AI data centers, automated driving, defense, and industrial sectors [8] - Plans to accelerate product development and customer acquisition in the AI data center market [11] - Continued investment in R&D and customer acquisition while improving operating leverage [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, highlighting strong demand in AI infrastructure and continued momentum across markets [14][20] - The company anticipates sequential revenue growth in Q3 and Q4, expecting at least 40% revenue growth for the second consecutive year [14][20] Other Important Information - The company completed a follow-on public offering of 2 million shares at $200 per share, raising $388 million in net proceeds [18] - The balance sheet remains strong with $796.7 million in cash and short-term investments and no debt [19] Q&A Session Summary Question: Expectations for growth by segment - Management expects CED, led by AI, to continue as the strongest growth area, with stronger seasonality in consumer markets in the second half [21][22] Question: Guidance for the mobile segment - The policy remains to provide guidance only when visibility is sufficient, and the current year allows for inclusion of mobile products in guidance [23][25] Question: Mobile IoT consumer business performance - Management noted that the mobile IoT consumer business is dynamic and subject to seasonality, with expectations for stronger performance in the second half of the year [32][34] Question: Non-data center segments outlook - There is some softness in automotive, but growth is expected in industrial and aerospace markets, with significant opportunities in the coming years [38][40] Question: Gross margin expectations from new products - New products are expected to contribute positively to gross margins, with significant ASP increases anticipated [43][45] Question: Content opportunities in data center equipment - The company is uniquely positioned to provide system-level solutions, which enhances dollar content in data center applications [48][50] Question: Success of the Symphonic product - The Symphonic product targets mobile consumer IoT and is expected to have a higher ASP due to its system-level integration [58][59] Question: Strength in CED segment - Management noted that visibility into the CED segment has improved, with continued strength and demand expected [63][64]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 83% year-over-year to $60.3 million, with gross margins at 57.4% and EPS at $0.26 per share [9][16] - Non-GAAP operating income improved by $10.3 million or 16 percentage points compared to the same quarter last year, reaching $2.1 million [17] - Non-GAAP net income for Q1 was $6.3 million, translating to $0.26 per share [17] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) segment revenue was $29.3 million, up 198% year-over-year [16] - Automotive, Industrial, and Defense segment revenue was $14.1 million, up 10% year-over-year [16] - Mobile, IoT, and Consumer segment revenue was $16.9 million, up 64% year-over-year, with sales to the largest customer increasing by 76% to $11.1 million [16] Market Data and Key Metrics Changes - The CED business has shown significant sequential growth for four consecutive quarters, driven by AI strength [10] - The company expects continued growth in the data center business through 2025, supported by increased demand for higher network bandwidth [11][10] Company Strategy and Development Direction - The company focuses on high-value timing markets and applications, aiming to transform the $10 billion timing market with differentiated products [8] - The strategy includes launching new clocking products that integrate oscillators with clocks and software, creating a complete system solution [12][13] - The company anticipates the clocking business could generate significant revenue growth in the coming years, with a target of $100 million from this segment [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic operating environment with uncertainties but remains confident in the company's ability to navigate challenges [72][74] - The company expects revenue growth of 45% to 50% year-over-year for Q2 2025, with gross margins expected to remain flat compared to Q1 [19] - Management reaffirms a growth target of 25% to 30% for the full year, driven by product differentiation and a strong design win funnel [43] Other Important Information - The company ended Q1 with $398.9 million in cash and short-term investments and no debt [18] - CapEx for Q1 was $16.4 million, primarily for production equipment, with expectations for total CapEx for the year to be in the mid- to high $30 million range [18][69] Q&A Session Summary Question: Expectations for growth from the largest customer - Management expects continued growth from the largest customer, though the percentage may vary due to the nature of consumer products and external factors like tariffs [21][24] Question: Margin expansion outlook - Management remains committed to achieving a gross margin target of 60% by the end of the year, despite pressures from lower-margin consumer business [25][28][29] Question: Growth profile in the data center segment - Management indicates strong continuous momentum in the data center segment, with opportunities across various components including switches and server racks [32][34] Question: Full-year growth outlook - Management reaffirms the growth target of 25% to 30% for the base business, with additional growth expected from new design wins [42][43] Question: CapEx levels - Management expects CapEx to remain elevated in Q2, with a total for the year projected to be in the mid- to high $30 million range [69]