Financial Data and Key Metrics Changes - The company reported a year-over-year revenue decline of 16%, primarily due to a rapid drop in customer CapEx spending for new production capacity [7][34] - Consolidated revenue for Q2 was $95 million, down 16% year-over-year, but up 8% sequentially when excluding the divested GeoMagic software business [33][34] - Non-GAAP operating expenses were $47 million, a reduction of 27% year-over-year and 24% sequentially [17][36] - Adjusted EBITDA improved to negative $5 million, a significant improvement from the prior year and quarter [37] Business Line Data and Key Metrics Changes - Industrial Solutions revenues declined 23% year-over-year to $50 million, primarily due to softness in consumer-facing markets [34] - Healthcare Solutions revenues decreased 8% year-over-year to $45 million, with MedTech growing 13% year-over-year and 16% sequentially [35][21] - The MedTech business reached over $80 million in annual revenue last year, growing 13% from the prior year [21] Market Data and Key Metrics Changes - The macro environment remains challenging, with uncertainty around tariffs affecting customer investment decisions [8] - Aerospace and defense revenues nearly doubled from last year, contributing over $30 million annually [26][34] - The dental market is projected to reach $400 million in the U.S. alone, with significant growth expected from new product launches [32][49] Company Strategy and Development Direction - The company is focused on restructuring and efficiency initiatives to align costs with current market conditions, targeting over $85 million in annualized savings by mid-2026 [10][11] - The strategy includes a shift towards profitability first, with a focus on maintaining core R&D investments while reducing operational expenses [10][18] - The company is expanding its MedTech offerings, particularly in orthopedic products and point-of-care services [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the macro environment but expressed optimism about the stabilization of pressures in sequential quarterly results [8][9] - The company is committed to navigating the current environment while positioning for long-term growth in critical markets such as medtech and aerospace [9][10] - Management emphasized the importance of maintaining a strong portfolio of new products to drive sustainable growth and profitability [18] Other Important Information - The company completed a significant debt transaction and share repurchase, enhancing its balance sheet flexibility [10][40] - The divestiture of the GeoMagic software business is expected to provide clearer financial comparisons moving forward [33] Q&A Session Summary Question: Can you break down the $80 million for MedTech between hardware and services? - The majority is from personalized health services, with printer sales being relatively modest due to tariff influences [45][46] Question: How should we think about the healthcare business moving forward? - The healthcare business now encompasses medtech, dental, and regenerative medicine, with a focus on orthopedic activities [47] Question: What is the outlook for the dental business? - The dental market is expected to grow significantly, with new product launches anticipated to drive revenue [48][50] Question: Can you confirm the gross margins and outlook for the next quarters? - Gross margins were approximately 38%, with expectations for a more normalized performance in the upcoming quarters [52] Question: What is the current state of the macro environment and sales cycles? - The macro environment remains stable, with customers cautious about CapEx spending due to tariff uncertainties [71][72] Question: How does the company plan to manage the dental opportunity amidst macro challenges? - The dental market is expected to be less impacted due to the essential nature of dental products and lower CapEx requirements for printers [76][78] Question: Can you provide an update on the broader markets like aerospace and defense? - Aerospace and defense are seen as exciting markets, with significant growth potential and a sticky customer base [92][95]