Financial Data and Key Metrics Changes - Total sales for Q2 FY26 were $52.3 million, an increase of 5.7% from $49.5 million in Q2 FY25, marking six consecutive quarters of year-over-year growth [4][8] - Operating income improved to $132,000 from a loss of $667,000 in the prior year [4][9] - Net loss was $0.1 million for Q2 FY26, compared to a net loss of $0.8 million in Q2 FY25, with diluted net loss per share improving to $0.01 from $0.05 [10][11] - EBITDA for Q2 FY26 was $0.7 million, up from break-even in the prior year [10] Business Line Data and Key Metrics Changes - Green Energy Solutions (GES) sales increased by 39% year-over-year, driven by power management products [8][15] - Canvys revenue grew by 28.1% to $8.8 million, primarily due to increased demand from medical OEMs [22] - Power and Microwave Technologies (PMT) sales were down 4% year-over-year, with PMT sales approximately flat when excluding healthcare [8][19] Market Data and Key Metrics Changes - GES sales growth was attributed to increased sales in both onshore wind and electric vehicle segments [5][15] - Canvys secured orders from both repeat and new medical OEM customers, indicating strong demand in the medical market [22] - Approximately 70% of GES sales are currently in North America, with plans for expansion into Europe and Asia [19] Company Strategy and Development Direction - The company is focused on repositioning towards higher growth end markets and expanding its engineered solutions [4] - Strategic initiatives include the development of a battery energy storage design center and expansion of the Sweetwater Design Center to enhance product development cycles [18][27] - The company aims to leverage its existing capabilities and global infrastructure to support sustainable growth, with a focus on organic initiatives and potential acquisitions [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the semiconductor wafer fab equipment market, anticipating solid growth through the rest of FY26 [29] - The company is navigating uncertainties related to tariffs and market conditions but remains focused on pursuing growth opportunities [20] - Management highlighted the importance of cash flow generation and efficiency improvements, with expectations for stronger demand in engineered solutions [30][31] Other Important Information - Cash and cash equivalents at the end of Q2 FY26 were $33.1 million, down from $35.7 million at the end of Q1 FY26 [12] - The company declared a regular quarterly cash dividend of $0.06 per common share, to be paid in Q3 FY26 [12] Q&A Session Summary Question: Discussion on core backlog versus non-core backlog - Management clarified that core backlog includes key products like Pitch Energy Modules, while non-core backlog consists of smaller components for green energy products [37] Question: Cadence of orders turning to backlog and revenues within GES - Management explained that as products transition from beta to production, new customers and sales contribute to growth, with a focus on maintaining inventory for timely shipments [40][41] Question: Status of GE approval for ALTA 1000 - Management confirmed that GE approval has been obtained, and the product is featured on GE's marketplace, with ongoing customer-driven demand [50] Question: Margin impact from the medical segment - Management indicated that the overall impact on gross margin from the medical segment has been negligible, with expectations for profitability to improve in FY27 [52] Question: Plans for cash utilization - Management stated that cash will primarily be used for growth initiatives in alternative energy solutions and potential small acquisitions [55] Question: Outlook for semiconductor market - Management expressed cautious optimism for growth in the semiconductor market, with positive forecasts from customers for Q3 and Q4 [64]

Financial Data and Key Metrics Changes - Total sales for Q1 FY26 were $54.6 million, up from $53.7 million in Q1 FY25, representing a 1.6% increase [2][7] - Excluding healthcare, net sales increased by 6.8% [7] - Consolidated gross margin improved to 31.0% from 30.6% year-over-year [8] - Operating income increased to $1.0 million from $0.3 million in the prior year [9] - Net income for Q1 FY26 was $1.9 million compared to $0.6 million in Q1 FY25, with diluted earnings per share of $0.13 versus $0.04 [9][10] - EBITDA for Q1 FY26 was $3.3 million, up from $1.7 million in the prior year [10] Business Line Data and Key Metrics Changes - PMT sales increased by 2.8% overall, and by 10.5% excluding healthcare, driven by semiconductor wafer fab customers [7][12] - Canvas sales rose by 8.3% due to improved market conditions in Europe [8] - GES sales decreased by 10.2% year-over-year, primarily due to the non-recurrence of a large EV locomotive order [8][13] - The wind segment within GES grew by 86.1% year-over-year, supported by new customers and global expansion [14] Market Data and Key Metrics Changes - The company reported strong demand in RF and microwave applications, particularly in military and drone technology [16][17] - Approximately 70% of GES sales are currently in North America, indicating significant growth potential in international markets [18][39] Company Strategy and Development Direction - The company is focusing on engineered solutions and expanding its global footprint to manage tariff impacts [5][17] - Strategic initiatives include the Energy Storage System program and partnerships to enhance product offerings [16][18] - The company is optimistic about growth in project-based business despite market uncertainties [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable value and improve profitability [29] - The company is navigating uncertainties related to tariffs and market conditions while pursuing growth opportunities [17][18] - Positive indicators in the semiconductor wafer fab equipment market suggest continued growth [27] Other Important Information - The company generated positive operating cash flow for six consecutive quarters, with a cash position of $35.7 million [5][10] - Capital expenditures for Q1 FY26 were $1.0 million, with expectations for a total of $4 to $5 million for the year [11][40] Q&A Session Summary Question: Status of Ultra 3000s on GE's approved vendor list - The engineering team has signed off, awaiting final signatures from GE's legal team, expected soon [31][33] Question: Semi-fab sales growth sustainability - Q1 of last year was a low point; growth is expected to continue into Q3 and Q4 based on forecasts [34][35] Question: Sales outside the U.S. for wind rotors - Sales are growing internationally, with orders received from Australia, India, France, and Italy [38][39] Question: CapEx expectations for the year - Estimated CapEx is in the $5 million range, slightly higher than last year [40][42] Question: Details on non-recurring gain affecting operating income - The $0.9 million gain was from a confidential contractual settlement [51][52] Question: Insights on repower initiatives and operating leverage - Repowering initiatives are expected to support growth; operating expenses are anticipated to remain controlled [56][63] Question: Outlook for the RF business - The RF tube business remains stable, with growth seen in the semi-fab equipment manufacturing sector [65][66]