FormFactor (FORM) Q1 2025 Earnings Call April 30, 2025 04:25 PM ET Company Participants Stan Finkelstein - VP of Investor RelationsMike Slessor - President and Chief Executive OfficerShai Shahar - Chief Financial OfficerCraig Ellis - Director of ResearchTom Diffely - Director Of Institutional ResearchDavid Duley - Managing PrincipalBrian Chin - Director Conference Call Participants Charles Shi - Managing Director - Senior AnalystNone - AnalystChristian Schwab - Senior Research AnalystDavid Silver - Managing ...

Core Viewpoint - The company has reported its Q1 2025 financial results, indicating temporary profit pressure but highlighting underlying growth potential driven by a fixed cost structure primarily based on depreciation and amortization, with revenue showing both year-on-year and quarter-on-quarter growth, signaling an inflection point in income and the imminent release of scale effects [1] Group 1: Business Strategy and Focus - The company is focusing on its core business of integrated circuit testing, with a strategic layout described as "one body, two wings," emphasizing independent third-party wafer testing and chip product testing as the mainstay, while also expanding into wafer laser grooving, dicing, thinning, and ultra-wide spectrum layered image sensor chips for applications in autonomous driving and robotics [1] - The company aims to establish itself as a leading independent third-party professional testing service provider in China, driven by technological innovation and unique testing solutions across various fields including high computing power, industrial control, automotive electronics, sensors, AIoT, consumer electronics, storage, and specialty chips [1] Group 2: Technological Advancements - The company possesses industry-leading ultra-thin chip thinning technology capable of processing below 25μm, and its laser grooving and dicing technologies address quality issues in traditional cutting methods, enhancing chip yield and reliability [2] - The company collaborates with Shanghai Dielong Optoelectronics Technology Co., Ltd. to provide unique wafer heterogeneous stacking and testing services, leveraging core technologies in all-weather ultra-wide spectrum layered image sensor chips to improve recognition rates under complex weather and lighting conditions, thus enhancing safety in autonomous driving applications [2] Group 3: Market Expansion and Innovation - The company is actively expanding its relationships with well-known design enterprises and utilizing big data analysis tools to maintain existing customers, which is expected to increase future revenue and enhance overall profitability [3] - The company is embracing technological innovation, focusing on building an intelligent algorithm training system with independent intellectual property rights, integrating cutting-edge general model technology to drive research and development innovation [3] Group 4: Future Projects and Market Opportunities - The company is developing various testing solutions for high-pixel CMOS image sensors, high-performance robotic vision processing chips, AI computing power chips, high-bandwidth RF chip testing, and more, targeting high-demand markets such as automotive electronics, high computing power chips, sensors, and storage [4] - The company’s proactive positioning in high-barrier technology fields is expected to capture industry growth dividends, with ongoing business expansion and revenue growth anticipated to lead to profit recovery and performance breakthroughs in the future [4]

Financial Data and Key Metrics Changes - First quarter sales were $686 million, towards the high end of guidance, with non-GAAP EPS of $0.75 above the high end guide of $0.68 [17] - Non-GAAP gross margins were 60.6%, exceeding expectations due to product mix [17] - Non-GAAP operating expenses were $275 million, up year-over-year but down sequentially due to spending controls [18] Business Line Data and Key Metrics Changes - Semi Test revenue was $543 million, with SOC revenue contributing $406 million and memory revenue at $109 million [19] - Product Test revenue was $74 million, down 4% year-over-year, while wireless test revenue was $29 million, up 20% year-over-year [20] - Robotics revenue was $69 million, declining both sequentially and year-over-year, with UR contributing $49 million and MiR $20 million [20] Market Data and Key Metrics Changes - 19% of revenue was shipped to China, with 12% supporting multinational customers and 7% for indigenous Chinese customers [23] - The company expects a significant sequential decline in memory revenue in Q2 as the market digests installed HBM test capacity [27] Company Strategy and Development Direction - The company is focusing on AI, verticalization, and electrification as primary industry drivers for future growth [5] - A strategic partnership with ADI was announced to deploy UR cobots in AMRs to support collaborative automation initiatives [13] - The company is on track to close the acquisition of Quantify Photonics to enhance its position in silicon photonics testing [10] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of trade policy on end market demand, leading to order pushouts [6] - Despite current uncertainties, management remains confident in long-term growth drivers such as AI and electrification [29] - The company is managing expenses prudently while continuing critical investments to drive growth [12] Other Important Information - The company has increased its share buyback target from $400 million in 2025 to up to $1 billion through the end of 2026 [28] - The restructuring in the robotics division has reduced the operating breakeven revenue from $440 million to $365 million [21] Q&A Session Summary Question: Dynamics of tariff-related pushouts and pull-ins - Management noted that pushouts are primarily from customers in the auto and industrial sectors, with no significant pull-ins observed [33] Question: Clarification on HBM win - The HBM four performance test win is with a new customer, not an existing one, and involves a post-stack test at higher speed [38] Question: Gross margin and OpEx outlook - Management indicated that gross margin guidance for the full year is not provided due to uncertainty, but the first half is expected to align with prior expectations [41] Question: SLT wins and AI accelerators - Management clarified that SLT is expected to be a significant revenue driver in 2026, with current implementations addressing high failure rates in AI accelerator devices [50] Question: Impact of tariffs on competitive positioning - No significant competitive impact has been observed due to tariffs, and the company remains competitive in the market [62] Question: Memory market dynamics - Demand for NAND is expected to increase with mobile phone unit volume and AI-enabled smartphones requiring more local storage [75] Question: Robotics segment growth expectations - The company expects to significantly outgrow traditional industrial automation peers, despite current sluggish end market conditions [92]

Aehr Test Systems (AEHR) Q3 2025 Earnings Conference Call April 08, 2025 05:00 PM ET Company Participants Operator - Conference Operator Jim Byers - Host, Investor Relations at Pondell Wilkinson Gane Erickson - President and Chief Executive Officer Chris Tiu - Chief Financial Officer Tyler - Question Asker on behalf of Christian Schwab (Craig Hallam) Jed Dorsheimer - Investor, William Blair Larry Shlebina - Investor, Shlebina Capital Charles Tao - Private Investor Operator Greetings. Welcome to the Airtest ...