Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $343 million, up 2% sequentially and 1% year over year, despite not recognizing any hyperscale hardware revenue [5][17] - Non-GAAP gross margins were 30%, down 0.8 percentage points year over year [17] - Non-GAAP operating income was $42 million, up 1% year over year, leading to Non-GAAP diluted earnings per share of $0.49, flat year over year [6][20] Business Line Data and Key Metrics Changes - Advanced Computing revenue was $151 million, up 9% compared to the prior quarter but down 15% year over year [9][18] - Integrated Memory revenue was $137 million, up 41% year over year [11][18] - Optimized LED revenue was $55 million, down 18% sequentially [13][18] Market Data and Key Metrics Changes - The company is seeing a shift from hyperscaler deployments to broader enterprise adoption, with early signs of workloads evolving towards inference-oriented use cases [6][10] - Demand for memory products is strong across networking, telecommunications, and computing customers, with a focus on addressing AI workload requirements [11][12] Company Strategy and Development Direction - The company is transitioning from a holding company to an AI solutions provider, focusing on customer diversification and new business development [8][14] - Partnerships with ecosystem partners like Nvidia and AMD are being strengthened to support customer success in AI deployments [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for long-term success, citing a strong balance sheet and a growing customer base [15][28] - The outlook for FY26 includes expectations of 6% net sales growth and $2 of non-GAAP diluted EPS, with a focus on diversifying the customer sales mix [24][27] Other Important Information - The company signed an agreement to sell its remaining 19% stake in Zillia Technologies for $46 million, expected to close in Q3 FY26 [14] - Cash flows from operating activities increased by 125% to $31 million compared to Q1 of the previous year [23] Q&A Session Summary Question: Outlook for fiscal first half versus second half - Management indicated that Q2 revenue is expected to be down sequentially, particularly in advanced computing, but anticipates stronger performance in the second half due to pipeline opportunities [30][36] Question: Challenges in memory supply - Management noted that they are navigating supply constraints effectively, which has allowed for a more favorable outlook for memory revenue growth [32][36] Question: Enterprise engagements and diversification efforts - Management highlighted a shift from hyperscaler spending to enterprise deployments, indicating a strong pipeline for future growth [48][49] Question: Inventory levels as a leading indicator - Management stated that while inventory remains elevated, it is being managed effectively, and inventory turns are healthy [52] Question: Customization of ICE platform - Management is working on integrating their ICE platform with best-of-breed open-source software to provide a comprehensive solution for customers [54][55]