Group 1 - The "Guangxi State-owned Enterprises 2025 College Graduates Summer Recruitment Fair" was held in Nanning, providing over 2000 job positions across various industries including artificial intelligence and new energy [1] - The recruitment event was organized by multiple government departments, with participation from over 60 enterprises, ensuring a balanced distribution of job opportunities across different sectors and educational qualifications [1] - The event included services such as policy consultation, AI resume diagnosis, and interview simulations, along with an online platform for job applications available until June 2 [1] Group 2 - As of mid-May, state-owned enterprises in the region have already hired over 2000 graduates from the 2025 class, with plans to accelerate job matching to support the construction of a modern industrial system [2]

Financial Data and Key Metrics Changes - Total revenue increased approximately 17.2% year on year to $207.8 million, reflecting a 26.3% benefit from recent acquisitions, partially offset by an organic revenue decline of 8.1% [15][16] - Adjusted operating margin increased 280 basis points year on year to a record 19.4% [15][16] - Adjusted earnings per share increased 3.7% year on year to $1.95 [16] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 38.4% year on year to $111.3 million, with a 48.1% benefit from acquisitions, partially offset by an organic decline of 8.9% [17] - **Engraving Segment**: Revenue decreased 15.7% to $30.6 million, driven by an organic decline of 12.6% [19] - **Scientific Segment**: Revenue increased 8.1% to $18.3 million, due to a 16.1% benefit from recent acquisitions, partially offset by an organic decline of 8% [20] - **Engineering Technologies Segment**: Revenue increased 36.2% to $27.4 million, driven by a 26.3% benefit from recent acquisitions and organic growth of 9.9% [21] - **Specialty Solutions Segment**: Revenue decreased 13.9% year on year to $20.2 million, primarily due to general market softness [23] Market Data and Key Metrics Changes - Sales into fast growth markets increased to 29% of total company sales, primarily driven by electrical grid, commercialization of space, defense applications, and renewable energy [7][25] - Electronics organic bookings were up more than 10% year on year, with a book to bill of 0.98 indicating stable markets [5][17] Company Strategy and Development Direction - The company plans to continue investing in key growth priorities and new product developments while navigating tariff impacts through pricing and productivity actions [12][27] - Expansion plans in India, Europe, and the USA are underway, with significant customer commitments extending years into the future [6][12] - The company aims to achieve long-term targets of sales greater than $1.15 billion, adjusted operating margin greater than 23%, and ROIC greater than 15.5% by fiscal 2028 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's agility and resilience to navigate current economic challenges, emphasizing strong customer relationships and regional operations [10][12] - The company anticipates slightly to moderately higher revenue in the fiscal fourth quarter driven by recent acquisitions and higher sales into fast growth end markets [8][19] - Management remains optimistic about organic growth in fiscal 2026, particularly in the electronics segment, supported by strong order intake rates [35][51] Other Important Information - The company declared its 243rd consecutive quarterly cash dividend of $0.32 per share, reflecting a 6.7% increase year on year [24] - The integration of recent acquisitions, including McStarlight, is progressing well, expanding the addressable market within engineering technologies by over $300 million [13][14] Q&A Session Summary Question: Impact of tariffs on cost of goods sold - Management confirmed that approximately 6% of COGS is imported from China, split across electronics, specialty, and scientific segments [31] Question: Organic growth expectations for fiscal 2026 - Management indicated that they expect to see organic growth in electronics and engineering technologies, with a strong order book and positive market conditions [35][51] Question: Capacity utilization and margin impact from new plant in Europe - Current capacity utilization is around 60-70%, with no anticipated margin impact from the new plant in Europe [48][50] Question: Plans for new product releases in fiscal 2026 - The company plans to release a similar number of new products in fiscal 2026 as in fiscal 2025, with ongoing adoption expected from products released in 2025 [71] Question: Leverage and debt management strategies - Management emphasized the priority of paying down debt while also focusing on organic growth initiatives [53][56]

Financial Data and Key Metrics Changes - Total revenue increased approximately 17.2% year on year to $207.8 million, reflecting a 26.3% benefit from recent acquisitions, partially offset by an organic revenue decline of 8.1% [16][18] - Adjusted operating margin increased 280 basis points year on year to a record 19.4% [16] - Adjusted earnings per share increased 3.7% year on year to $1.95 [17] - Free cash flow for the third quarter was $3.5 million, down from $19.3 million a year ago, impacted by one-time transaction-related payments and longer customer credit terms [18] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 38.4% year on year to $111.3 million, with a 48.1% benefit from acquisitions, partially offset by an organic decline of 8.9% [19] - **Engraving Segment**: Revenue decreased 15.7% to $30.6 million, driven by an organic decline of 12.6% [21] - **Scientific Segment**: Revenue increased 8.1% to $18.3 million, due to a 16.1% benefit from recent acquisitions, partially offset by an organic decline of 8% [22] - **Engineering Technologies Segment**: Revenue increased 36.2% to $27.4 million, driven by a 26.3% benefit from recent acquisitions and organic growth of 9.9% [23] - **Specialty Solutions Segment**: Revenue decreased 13.9% year on year to $20.2 million, primarily due to general market softness [24] Market Data and Key Metrics Changes - Sales into fast growth markets increased to 29% of total company sales, primarily driven by electrical grid, commercialization of space, defense applications, and renewable energy [7][26] - Electronics organic bookings were up more than 10% year on year, with a book to bill ratio of 0.98, indicating stable markets [5][19] Company Strategy and Development Direction - The company plans to continue investing in new product development and applications across markets with growth potential, with 13 new products released year to date [26][28] - The company is expanding its footprint in Europe and the U.S. to support additional demand, with a greenfield site in Europe expected to be operational within six months [6][20] - The company anticipates achieving long-term targets of sales greater than $1.15 billion, adjusted operating margin greater than 23%, and ROIC greater than 15.5% by fiscal 2028 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's agility and resilience to navigate through current economic challenges, emphasizing strong customer relationships and a disciplined approach to pricing and productivity actions [11][28] - The company expects slightly to moderately higher revenue and adjusted operating margin in the fiscal fourth quarter, driven by recent acquisitions and higher sales into fast growth end markets [9][21] Other Important Information - The company declared its 243rd consecutive cash dividend of $0.32 per share, representing a 6.7% increase year on year [25] - The company has a current liquidity of approximately $170 million and net debt of $470.4 million, with a leverage ratio of 2.8 [24][25] Q&A Session Summary Question: What is the impact of tariffs on the company's operations? - Approximately 6% of the cost of goods sold is due to imports from China, split across electronics, specialty, and scientific segments [32] - The company believes it can cover about 70% of the incremental tariff with price and productivity actions in the scientific segment, while other segments are expected to manage better [34][35] Question: What are the expectations for organic growth in fiscal 2026? - Management is optimistic about organic growth in electronics, with a robust order book and expected contributions from recent acquisitions [36][38] Question: What are the plans for new product releases in fiscal 2026? - The company plans to release a similar number of new products in fiscal 2026 as in fiscal 2025, with ongoing adoption expected from products released in 2025 [75] Question: How is the company managing its leverage and potential acquisitions? - The company aims to prioritize paying down debt while also focusing on organic growth initiatives, with a current leverage ratio of about 2.8 [56][58]