Financial Data and Key Metrics Changes - The company reported revenue of $162 million for Q2 2025, with gross margins at 24.9%, which included $38.6 million in EA-related inventory and supply chain charges [22] - Total operating expenses were $125.1 million, including restructuring charges of $8.8 million and impairment charges of $39.8 million [22] - The company anticipates a revenue outlook of $145 million for Q3 2025, with gross margins projected at 46.5% [24] Business Line Data and Key Metrics Changes - The decision to discontinue the electronics assembly (EA) equipment business was announced, which is expected to improve overall competitiveness and align with long-term technology trends [6][20] - The automotive and industrial sectors saw a sequential decline of approximately 7% in Q2, but were up nearly 14% year-over-year due to ongoing demand improvements [11] - The APS business remains stable, with expectations for continued revenue consistency despite market fluctuations [12] Market Data and Key Metrics Changes - Southeast Asia experienced a significant slowdown, accounting for the majority of the company's Q2 to Q3 weakness, primarily due to concerns over potential tariff impacts on the automotive and industrial sectors [29][30] - In contrast, order activity increased in China and Taiwan, indicating a bifurcation in market dynamics [23][46] - Utilization rates in China are reported to be over 80%, while Taiwan's rates are just touching 80% [72] Company Strategy and Development Direction - The company plans to focus on vertical wire, power semiconductor, advanced dispense, and thermal compression technologies to strengthen growth prospects [10][17] - The restructuring effort aims to enhance long-term financial performance with anticipated improvements in gross margins [8] - The company is well-positioned to capitalize on emerging opportunities in the semiconductor market, particularly in advanced packaging and power semiconductor applications [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the semiconductor industry's resilience despite macroeconomic uncertainties and trade dynamics [9][19] - The company anticipates continued capacity digestion supported by improving utilization rates, with expectations for a return to incremental capacity growth in core markets [24] - Management noted that while some customers may delay capital expenditures, semiconductor unit growth is expected to improve through fiscal 2025 [23] Other Important Information - The company completed a share repurchase program with a $300 million authorization, repurchasing over 500,000 shares for $21.3 million during Q2 [23] - The EA business was generating annual revenue of approximately $25 million to $30 million, with gross profit ranging from $7 million to $11 million [40] Q&A Session Summary Question: Can you provide insights on June's dynamics? - Management indicated a pronounced Q3 slowdown in Southeast Asia, primarily due to concerns over potential tariff impacts on the automotive and industrial sectors [28][30] Question: What is the revenue run rate of the EA business being exited? - The EA business was generating revenue of about $25 million to $30 million annually, with gross profit around $7 million to $11 million [40] Question: What are the dynamics on the power semiconductor front? - The power semiconductor market is expected to grow rapidly, with new products being introduced to enhance market reach and align with global demand for electric vehicles [42]

Financial Data and Key Metrics Changes - The company reported revenue of $162 million for Q2 2025, with gross margins at 24.9% which included $38.6 million in EA-related inventory and supply chain charges [21] - Total operating expenses were $125.1 million, including restructuring charges of $8.8 million and impairment charges of $39.8 million [21] - The company anticipates a revenue outlook of $145 million for Q3 2025, with gross margins projected at 46.5% [23] Business Line Data and Key Metrics Changes - The decision to discontinue the electronics assembly (EA) equipment business was announced, which accounted for charges of $86.6 million primarily related to inventory write-downs and restructuring [21] - The automotive and industrial sectors saw a sequential decline of approximately 7% in Q2, but were up nearly 14% year-over-year due to ongoing demand improvements [10] - The APS business continues to provide stable revenue, with expectations for overall installed base and utilization trends to improve [11] Market Data and Key Metrics Changes - Southeast Asia experienced a significant slowdown, accounting for the majority of the company's Q2 to Q3 weakness, while order activity increased in China and Taiwan [22][28] - Utilization rates in China are over 80%, while Taiwan's utilization is just touching 80% [70] - The ongoing trade situation has created uncertainty in global markets, particularly affecting the automotive and industrial sectors [8] Company Strategy and Development Direction - The company intends to focus on vertical wire, power semiconductor, advanced dispense, and thermal compression technologies to enhance growth prospects [9] - The restructuring effort aims to improve long-term financial performance and gross margins [7] - The company is well-positioned to leverage its technology leadership in high-volume semiconductor markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the semiconductor industry's resilience despite macroeconomic uncertainties [8] - The company anticipates continued capacity digestion supported by improving utilization rates, with expectations for a return to incremental capacity growth in core markets [23] - Management noted that customer hesitation is primarily due to uncertainties surrounding tariffs and trade dynamics [60] Other Important Information - The company has nearly 120 systems installed across 10 different customers, demonstrating a strong market presence [19] - The vertical wire technology is expected to drive significant interest and potential production ramp by 2026 [12] Q&A Session Summary Question: Can you provide insights on June's dynamics and expectations beyond? - Management indicated a Q3 slowdown, particularly in Southeast Asia, with Q2 revenue at $162 million and Q3 guidance at $145 million, attributing the decline to tariff concerns in the automotive and industrial sectors [28][32] Question: What is the revenue run rate of the EA business being exited? - The EA business generated approximately $25 million to $30 million annually, with gross profits around $7 million to $11 million [38] Question: What are the dynamics on the power semiconductor front? - The power semiconductor market is expected to grow rapidly, with new products being introduced to enhance market share [41] Question: Can you elaborate on the utilization rates in Taiwan and China? - Utilization rates in China are over 80%, while Taiwan's are just touching 80%, with expectations for continued high utilization [70] Question: How is the company addressing customer hesitation due to trade policies? - The company manufactures in Singapore, avoiding direct tariff impacts, but acknowledges indirect costs and customer caution due to trade uncertainties [74]