Financial Data and Key Metrics Changes - Consolidated Q1 revenue from continuing operations was $44.7 million, up 12.1% year over year and down 8.5% sequentially, aligning with the midpoint of guidance [10][21] - Consolidated Q1 gross profit margin from continuing operations was 20.9%, up 3.3 percentage points year over year but down 2.3 percentage points sequentially, exceeding the high end of guidance [10][22] - Q1 operating loss narrowed to $6.3 million compared to $9.4 million in Q1 2024, with adjusted operating loss of $5.4 million [26][27] Business Line Data and Key Metrics Changes - Power Analog Solutions revenue was $39.9 million, up 9.1% year over year and down 8.3% quarter over quarter, representing nearly 90% of Q1 consolidated revenue [15][21] - Power IC revenue was $4.9 million, an increase of 44.1% year over year but down 10% sequentially [19][21] - The industrial segment saw an 8.7% year-over-year decline, while the communication segment increased nearly 64% year over year [16][17] Market Data and Key Metrics Changes - The communication market accounted for 23% of Power Analog Solutions revenue in Q1, driven by design wins in AI-enabled smartphones [17] - The automotive segment showed strong year-over-year growth, expanding beyond Korea and Japan [18] - The computing segment experienced a 10% year-over-year decline due to weaker demand from China [17] Company Strategy and Development Direction - The company plans to shut down its display business by the end of Q2 2025 to focus on power semiconductor operations [6][23] - The strategic pivot aims to achieve a $300 million annual revenue run rate with a 30% gross profit margin target within three years, referred to as the "three-three-three strategy" [9][37] - The company expects to attain quarterly adjusted EBITDA breakeven from continuing operations by the end of 2025 [31] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges from an unpredictable macroeconomic landscape but remains optimistic about achieving growth targets [9][37] - The company expects mid single-digit sequential growth in Q2, with strong year-over-year growth anticipated in the communications segment [36] - Management emphasized the importance of operational efficiency and shareholder value in the strategic pivot [36][37] Other Important Information - The company expects cash inflow of approximately $15 million to $20 million from the liquidation of the display business over two years [33] - Q1 CapEx was $200,000, with a total forecast range of $26 million to $30 million for the full year 2025 [29][30] - The company repurchased approximately 300,000 shares for $1.1 million in Q1 2025, with remaining authorization of about 23.5 million shares [27] Q&A Session Summary Question: Impact of tariffs on manufacturing and markets - Management noted minimal direct shipment to the U.S. and manageable tariff risks, with 94% of power revenue coming from Asia [42][43] Question: Drivers for gross margin improvement - Management highlighted the transition from foundry services to new generation power products as a key driver for gross margin improvement [44][45] Question: Focus on Power IC vs. Power Analog segments - Management confirmed a concerted effort to grow both segments, aiming for double-digit growth in the coming years [46]

Financial Data and Key Metrics Changes - Consolidated Q1 revenue from continuing operations was $44.7 million, up 12.1% year over year and down 8.5% sequentially [9][22] - Consolidated Q1 gross profit margin from continuing operations was 20.9%, up 3.3 percentage points year over year but down 2.3 percentage points sequentially [10][23] - Q1 operating loss narrowed to $6.3 million compared to an operating loss of $9.4 million in Q1 2024 [26] - Q1 GAAP diluted loss per share was $0.14, improved from a loss of $0.37 in Q1 2024 [27] Business Line Data and Key Metrics Changes - Power Analog Solutions revenue was $39.9 million, up 9.1% year over year and down 8.3% quarter over quarter [15][22] - Power IC revenue was $4.9 million, an increase of 44.1% year over year but down 10% sequentially [20][22] - The industrial segment saw an 8.7% year-over-year decline, while the communication segment increased nearly 64% year over year [16][17] Market Data and Key Metrics Changes - The communication market accounted for 23% of Power Analog Solutions revenue and saw significant growth due to design wins in smartphones [17] - The automotive segment showed strong year-over-year growth, expanding beyond Korea and Japan [19] Company Strategy and Development Direction - The company plans to shut down its display business by the end of Q2 2025 to focus on power semiconductor operations [6][24] - The strategic pivot aims to achieve a $300 million annual revenue run rate with a 30% gross profit margin target within three years, referred to as the "three-three-three strategy" [8][37] - The company expects to attain quarterly adjusted EBITDA breakeven from continuing operations by the end of 2025 [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from an unpredictable macroeconomic landscape but remains optimistic about achieving growth targets [7][36] - The company expects mid single-digit sequential growth in Q2 2025, driven by strong performance in industrial and computing markets [36] Other Important Information - The company has initiated a stock buyback program, repurchasing approximately 300,000 shares for $1.1 million in Q1 2025 [27] - The expected cash inflow from the liquidation of the display business is estimated to be between $15 million to $20 million over two years [32] Q&A Session Summary Question: Impact of tariffs on manufacturing and markets - Management indicated minimal direct shipment to the U.S. and believes tariff risks are manageable at the moment [42][43] Question: Drivers for gross margin improvement - The company plans to upgrade its Gumi facility to support new generation power products, which is expected to enhance gross margins over the next few years [44][45] Question: Focus on Power IC vs. Power Analog segments - Management aims for double-digit growth in both Power Analog and Power IC segments, indicating a balanced focus on both areas for growth [46]

Financial Data and Key Metrics Changes - Q4 revenue was $63 million, up 24% year-over-year and down 5.1% sequentially, exceeding the midpoint of guidance [14][24] - Consolidated Q4 gross profit margin was 25.2%, up 2.5 percentage points year-over-year and up 1.9 percentage points sequentially, exceeding guidance [15][25] - Net loss in Q4 was $16.3 million compared to a net loss of $9.6 million in Q3 and $6 million in Q4 last year [29][30] - Q4 adjusted EBITDA was negative $2.6 million, an improvement from negative $4.9 million in Q3 and negative $10 million in Q4 last year [31] Business Line Data and Key Metrics Changes - Revenue from the standard products business was $60.7 million, up 47.5% year-over-year and down 5.1% sequentially [16] - Power Discrete and Power IC businesses are now the focus, with a goal to achieve quarterly adjusted EBITDA breakeven by the end of Q4 2025 [8][37] - MSS revenue was $17.3 million, up 102% year-over-year and up 5.1% sequentially, driven by strength in automotive [22][24] Market Data and Key Metrics Changes - The industrial market represented 39% of PAS revenue, with a shift towards high-speed e-motors and battery management systems [18] - The consumer market accounted for 35% of PAS revenue in 2024, with high single-digit growth driven by home appliances [19] - The automotive market was less than 5% of PAS revenue in 2024 but is expected to grow to over 10% by 2027 [20][13] Company Strategy and Development Direction - The company announced a new strategy to become a pure play power company, focusing on Power Discrete and Power IC businesses [6][7] - The display business is being explored for strategic options and will be classified as discontinued operations starting Q1 2025 [8][35] - The three-three-three strategy aims for a $300 million annual revenue run rate with a 30% gross margin within three years [9][40] Management Comments on Operating Environment and Future Outlook - Management emphasized the importance of achieving profitability and the potential for growth in the Power Solutions business [7][40] - The company plans to invest $65 million to $70 million over the next three years to upgrade production equipment [13][36] - Management expressed confidence in the new generation power products driving higher revenue and improved margins [12][41] Other Important Information - The company ended Q4 with cash of $138.6 million, up from $121.1 million at the end of Q3 [32] - The company repurchased approximately 700,000 shares for $2.9 million under its stock buyback program [31] Q&A Session Summary Question: What end markets will drive growth in 2025? - Management indicated that growth will be evenly distributed across consumer, communication, and computing markets, with new products aiding growth in AI and industrial sectors [44] Question: What are the drivers of gross margin improvement? - Management noted that gross margin for 2025 is expected to be lower due to the wind down of transitional services and the new power generation products beginning production in the second half of 2025 [45][46] Question: How will cash be utilized moving forward? - Management confirmed that cash will primarily support the $65 million to $70 million investment in upgrading the Kumi facility, with additional funding from a credit line [48][50] Question: What is the impact of the Gumi fab on gross margin? - Management explained that underutilization from the phase-out of transitional services and the ramp-up of new products will impact gross margin in 2025, with improvements expected in the second half [54][56] Question: What is the strategy for high-value markets? - Management stated that the new generation products will allow penetration into higher-value applications, with a focus on performance and cost efficiency [62] Question: What are the strategic alternatives for the display business? - Management is exploring all options for the display business, including potential sales, joint ventures, or winding down operations [64] Question: Why is the decision to transition made now? - Management emphasized the need for profitability and the broader market opportunities in the power business compared to the display business [66]