Financial Data and Key Metrics Changes - Sales increased by 6.5% from the prior quarter, driven by stronger demand in industrial portable electronics, aerospace and defense, and ADAS end markets [8][22] - Adjusted EPS rose to $0.34 from $0.27 in Q1, reflecting improvements in sales and gross margin [22] - Gross margin for Q2 was 31.6%, an increase of 170 basis points from Q1, attributed to higher sales and favorable product mix [25] Business Line Data and Key Metrics Changes - AES revenues increased by 4.6% and EMS revenues were up 8.2% quarter on quarter [22] - Industrial markets showed the strongest performance, increasing at a double-digit rate compared to the prior quarter [23] - ADAS sales increased for the third consecutive quarter, indicating ongoing traction with existing customers [24] Market Data and Key Metrics Changes - The EV market in North America and Europe has seen downgraded growth projections, leading to inventory corrections and stagnation in production levels [13] - In contrast, EV production in China has remained on track, resulting in significant market share gains for local manufacturers [14] Company Strategy and Development Direction - The company aims to enhance speed of execution and accountability to create a more dynamic organization [7] - A local for local manufacturing strategy is being implemented, with plans to ramp up manufacturing capabilities in China while reducing capacity in Europe [15] - The focus will be on organic growth and operational improvements to drive top-line revenue [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the EV market but remains optimistic about growth opportunities in electrification and other key end markets [16][17] - The company expects modest revenue growth in Q3, with stronger increases in gross margin and adjusted EPS due to ongoing cost containment initiatives [8][30] Other Important Information - A net loss of $73.6 million was recorded, including restructuring costs and a non-cash impairment charge related to the ceramic business [22] - The company anticipates restructuring costs associated with European operations to be between $12 million and $20 million, with annual run rate savings projected to exceed $13 million [32] Q&A Session Summary Question: What are the top priorities for the next 6 to 12 months? - Management emphasized the need for internal cost initiatives and operational improvements to enhance responsiveness to customer needs [36][37] Question: When do you expect to return to consolidated organic revenue growth year over year? - Management is focused on aggressive top-line growth and anticipates meaningful growth quarter after quarter, but specific timelines were not disclosed [39][40] Question: Can you provide examples of how to accelerate speed of execution? - Management highlighted the need to reduce lead times by 50-60% and to accelerate the development of next-generation products [46][48] Question: What is the cumulative cost savings expected from the recent restructuring? - Management confirmed that cumulative cost savings could reach approximately $45 million, but the timing of realization will vary [50][51]