Financial Data and Key Metrics Changes - The company reported revenue of $59 million for the fiscal year, down 11% year-over-year [46] - Non-GAAP gross margin for the full year was 44%, compared to 49.6% in the prior year [46] - Non-GAAP net income for the fiscal year was $4.6 million, or $0.15 per diluted share, down from $35.8 million, or $1.21 per diluted share, in the previous year [46] - Fourth quarter revenue totaled $14.1 million, a 15% decrease compared to $16.6 million in Q4 last year [47] - Non-GAAP gross margin for Q4 was 34.7%, down from 51.5% in the same period last year [49] Business Line Data and Key Metrics Changes - AI processor burn-in now accounts for over 35% of total revenue, up from 0% last year [47] - WaferPak revenues were $4.2 million, representing 30% of total revenue in Q4 [48] - Sales of packaged part burn-in systems accounted for 44% of Q4 revenue [49] Market Data and Key Metrics Changes - The company has diversified its revenue sources, with silicon carbide devices making up less than 40% of revenue this fiscal year, down from over 90% last year [8] - The company is expanding into new markets, including gallium nitride power semiconductors and silicon photonics integrated circuits [29][33] Company Strategy and Development Direction - The company aims to increase research and development investments to support product enhancements and expand its AI customer base [40][55] - The focus for the upcoming fiscal year includes securing and executing orders across various market verticals, with expectations of order growth [41] - The company has completed the integration of InCal, which is expected to create synergies and reduce facility costs by over $800,000 per year [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook despite temporary withdrawal of financial guidance due to tariff-related uncertainties [41][54] - The company anticipates growth opportunities in diverse markets, particularly in AI processors and gallium nitride power semiconductors [54] Other Important Information - The company has no debt and continues to invest excess cash in money market funds [52] - The class action claims against the company were voluntarily dismissed, with no related proceedings currently pending [53] Q&A Session Summary Question: Clarification on customer list in investor deck - The updated customer list reflects current customers from the InCal package part burn-in side of the business, not prospects [58][60] Question: AI market potential compared to silicon carbide - The AI market is expected to be significantly larger than the silicon carbide market, with estimates suggesting it could be three to five times larger [63][66] Question: Gross margin decline explanation - The decline in gross margin is attributed to a mix issue, with lower-margin packaged part systems contributing to the overall decrease [72][73]

Summary of Conference Call Company and Industry Overview - The conference call primarily discusses **Airtest**, a company specializing in semiconductor testing, particularly focusing on **wafer level burn-in** and **package part burn-in** systems. The industry context includes trends in **semiconductors**, **electric vehicles (EVs)**, and **artificial intelligence (AI)** applications. Key Points and Arguments 1. **Market Trends**: The semiconductor market is projected to grow from **$500 billion** to **$1 trillion**, driven by increasing demand for reliable devices in critical applications like AI and EVs [15][18][54]. 2. **Testing Demand**: There is a rising need for testing systems due to the increasing complexity and reliability issues of semiconductors, particularly in AI processors and automotive applications [15][17][43]. 3. **Wafer Level Burn-In**: Airtest has established itself as a leader in wafer level burn-in technology, which offers significant advantages in cost and yield compared to traditional testing methods [10][11][18]. 4. **Acquisition Impact**: The acquisition of a small company in Fremont, California, has allowed Airtest to ramp up production capabilities for AI processors, significantly increasing shipments [14][41]. 5. **Customer Base Expansion**: Airtest has diversified its customer base, moving from a heavy reliance on silicon carbide for EVs to a broader range of applications, including AI and memory technologies [50][51]. 6. **Gallium Nitride (GaN)**: The company is also focusing on GaN technology, which is gaining traction in data centers and power infrastructure due to its efficiency in high-power applications [29][30]. 7. **Flash Memory Innovations**: Airtest is engaging with customers in the flash memory sector, anticipating significant changes in production methods that could benefit their testing systems [32][54]. 8. **AI Processor Testing**: The company has made strides in testing AI processors, with significant production wins and a focus on reliability to meet the demands of autonomous vehicles and robotics [36][39][54]. 9. **Revenue Model**: Airtest's revenue model includes a significant portion from consumables, which is expected to grow and potentially exceed **50%** of total revenue over time [51][52]. 10. **Challenges and Adaptations**: The company is adapting to market challenges, including tariffs and supply chain issues, by establishing sub-assembly builds outside the U.S. to mitigate risks [66][67]. Additional Important Content - **Infant Mortality in Semiconductors**: The discussion highlights the critical importance of weeding out infant mortality in semiconductors, especially in applications where reliability is paramount, such as in automotive and AI systems [16][44][46]. - **Customer Relationships**: Airtest emphasizes the importance of having leading customers in their strategy, with notable clients including **Apple** and **Intel** for their wafer level burn-in platform [58][59]. - **Future Outlook**: The company is optimistic about growth in various sectors, including AI, flash memory, and gallium nitride, with expectations for a strong year ahead [54][55]. This summary encapsulates the key insights from the conference call, focusing on Airtest's strategic positioning within the semiconductor testing industry and the broader market dynamics influencing its growth.