Financial Data and Key Metrics Changes - In Q1, revenues were $171.4 million, a decrease of 9.6% from Q4 and an increase of 1.6% year-over-year [16] - Non-GAAP gross margin for Q1 was 39.2%, down from 40.2% in Q4 [18] - Non-GAAP EPS for Q1 was $0.23, down from $0.27 in Q4 [23] - GAAP net income for Q1 was $6.4 million, or $0.08 per diluted share, compared to $9.7 million, or $0.12 per diluted share in Q4 [22] Business Line Data and Key Metrics Changes - Probe card segment revenues were $136.5 million in Q1, a decrease of 9.2% from Q4, driven by lower DRAM and Flash revenues [17] - Foundry and Logic revenues increased by 2.4% to $85 million in Q1, representing 49.8% of total revenues [17] - DRAM revenues were $48.9 million in Q1, down 22.8% from Q4, comprising 28.5% of total revenues [17] - Systems segment revenues were $34.8 million in Q1, a decrease from Q4, but expected to see moderate growth in Q2 [12][17] Market Data and Key Metrics Changes - The company anticipates double-digit sequential revenue growth in Q2, driven by demand from hyperscalers and investments in generative AI [5] - HBM probe card demand is expected to increase due to ongoing shipments for existing HBM3E designs and new HBM4 designs [8] - The company has seen a reduction in revenue from China due to tariffs and export controls, validating its decision to divest operations in that region [7] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and product offerings, particularly in HBM and advanced packaging [38] - A recent acquisition of FICT Limited enhances the company's access to multilayer organic substrates, crucial for advanced foundry and logic probe cards [11] - The company aims to achieve $2 of non-GAAP EPS on $850 million of revenue, with a target gross margin of 47% [15][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the current geopolitical and tariff environment creates uncertainty, impacting revenue and gross margins [5][6] - The anticipated growth in Q2 is not expected to be driven by tariff-related order acceleration, but rather by genuine demand increases [5] - The company is taking a cautious approach to capital investments in light of evolving geopolitical conditions [24] Other Important Information - The company generated free cash flow of $6.3 million in Q1, down from $28.8 million in Q4, primarily due to lower profitability [23] - A new two-year share repurchase program of $75 million has been approved by the Board of Directors [24] Q&A Session Summary Question: Impact of tariffs on revenue and margins - Management confirmed an estimated mid single-digit million dollar reduction in revenues due to tariffs, particularly affecting multinational customers outside free trade zones [29][30] Question: Customer dynamics and revenue contributions - A former top customer has returned to the list, indicating increased activity in the client PC space, which is expected to contribute positively to revenue [36][37] Question: DRAM business outlook - The growth in DRAM revenue is primarily driven by HBM, with expectations for continued strength in HBM3 and new contributions from HBM4 [41][42] Question: Systems sales and demand visibility - While visibility for individual orders is low, there is better long-term visibility for systems demand, particularly related to co-package optics [101]

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]

Financial Data and Key Metrics Changes - Revenue for Q3 totaled $18.3 million, a 142% increase compared to $7.6 million in Q3 last year, driven primarily by shipments of the new high-power Fox XP solution for AI processors [55][56] - Non-GAAP gross margin for Q3 was 42.7%, slightly up from 42.5% in the same period last year, despite a less favorable product mix and one-time charges [58] - Non-GAAP net income for Q3 was $2.0 million, or $0.07 per diluted share, compared to a net loss of $888,000, or negative $0.03 per diluted share in Q3 fiscal 2024 [62] Business Line Data and Key Metrics Changes - AI processors burn-in now represents over 35% of the company's business, a significant increase from previous years where silicon carbide accounted for over 90% [17][54] - WaferPak revenues were $5.9 million, accounting for 32% of total revenue in Q3, down from 63% in the same period last year [56] - Bookings for Q3 were $24.1 million, compared to $9.2 million in Q2 fiscal 2025, with an effective backlog now standing at $21.8 million [57] Market Data and Key Metrics Changes - The total addressable market for wafer-level and packaged part burn-in markets is projected to exceed $1 billion by 2027, with significant growth opportunities in AI processors and gallium nitride semiconductors [16][45] - The silicon carbide market is expected to exceed $10 billion by 2029, driven by electric vehicles and other industrial applications [41] - The NAND market in 2025 is projected to exceed $80 billion, indicating substantial potential for wafer-level burn-in solutions [37][38] Company Strategy and Development Direction - The company is focused on expanding its total addressable markets, diversifying its customer base, and developing new products to drive growth [16][48] - Strategic expansion into high-growth sectors, including AI processors, gallium nitride power semiconductors, and flash memory, is expected to attract new customers and drive revenue growth [48][65] - The integration of NCAL Technology has enabled the company to scale output significantly, achieving two to three times the previous record shipment volume [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the impact of recent tariff announcements will not significantly affect the company directly, but acknowledged potential secondary effects on customers [11][48] - The company is temporarily withdrawing guidance for the current fiscal year due to uncertainties regarding customer orders and supply chain delivery delays [64] - Management remains optimistic about the long-term growth potential across diverse target markets, particularly in AI and gallium nitride sectors [65] Other Important Information - The company has no debt and continues to invest excess cash in money market funds, with cash and equivalents totaling $31.4 million at the end of Q3 [63] - The integration of the InCal acquisition is progressing well, with plans to complete it by the end of the fiscal year [51][52] Q&A Session Summary Question: Impact of tariffs on end markets - Management indicated that the impact of tariffs is more about specific customers and geographies rather than entire markets, with ongoing assessments to mitigate risks [70][71] Question: Shipping backlog and guidance - Management acknowledged that not all backlog will ship in the current quarter, with some shipments planned for future quarters [88][89] Question: Growth expectations across diversified markets - Management expressed optimism about growth in silicon carbide, AI processors, and gallium nitride, with expectations for increased demand in the coming years [96][100]

Financial Data and Key Metrics Changes - Revenue for Q3 totaled $18.3 million, a 142% increase compared to $7.6 million in Q3 last year, driven primarily by shipments of the new high-power Fox XP solution for AI processors [55][56] - Non-GAAP gross margin for Q3 was 42.7%, slightly up from 42.5% in the same period last year, despite a less favorable product mix and one-time charges [58] - Non-GAAP net income for Q3 was $2.0 million, or $0.07 per diluted share, compared to a net loss of $888,000, or negative $0.03 per diluted share in Q3 fiscal 2024 [62] Business Line Data and Key Metrics Changes - AI processors now represent over 35% of the company's business, a significant increase from previous years, while silicon carbide wafer-level burn-in has decreased from over 90% to less than 40% [17][54] - WaferPak revenues accounted for 32% of total revenue in Q3, down from 63% in the same period last year [56] - Bookings for Q3 were $24.1 million, compared to $9.2 million in Q2 fiscal 2025, with an effective backlog of $21.8 million [57] Market Data and Key Metrics Changes - The total addressable market for wafer-level and packaged part burn-in markets is projected to exceed $1 billion by 2027, with significant growth opportunities in AI processors and gallium nitride devices [16][45] - The silicon carbide market is expected to exceed $10 billion by 2029, driven by electric vehicles and other applications [41] - The NAND market is projected to exceed $80 billion in 2025, indicating substantial potential for wafer-level burn-in solutions [37][38] Company Strategy and Development Direction - The company is focused on expanding its total addressable markets, diversifying its customer base, and developing new products to drive growth [16][48] - Strategic expansion into high-growth sectors, including AI processors, gallium nitride power semiconductors, and flash memory, is expected to open new opportunities [48][65] - The integration of NCAL Technology has enabled the company to scale output significantly, with plans to complete the integration by the end of the fiscal year [51][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage potential impacts from tariffs, emphasizing a robust supply chain and proactive measures to mitigate risks [11][15] - The company temporarily withdrew its guidance for the current fiscal year due to uncertainties surrounding customer orders and supply chain disruptions [48][64] - Management remains optimistic about growth in the silicon carbide market and anticipates a recovery in capital equipment growth [96][98] Other Important Information - The company has no debt and continues to invest excess cash in money market funds, with cash and equivalents totaling $31.4 million at the end of Q3 [63] - The company is participating in two investor conferences in the upcoming months, indicating ongoing engagement with the investment community [66] Q&A Session Summary Question: Impact of tariffs on end markets - Management indicated that the impact of tariffs is more about specific customers and geographies rather than entire markets, with ongoing assessments to mitigate risks [70][72] Question: Shipping backlog and guidance - Management acknowledged that some backlog would not ship this quarter due to planned shipments and customer forecasts, emphasizing the uncertainty in timing [88][90] Question: Growth expectations across diversified markets - Management expressed optimism about growth in silicon carbide, AI processors, and gallium nitride, with expectations for increased demand in the coming years [96][100]