Financial Performance - VPG's consolidated revenue for 1Q25 was $71.7 million[7], a slight decrease sequentially, impacted by approximately $2 million in delayed shipments at KELK[10] - Orders for 1Q25 reached $74.4 million[9], a 2.7% increase from 4Q24, marking the second consecutive quarter of order growth[10] - The book-to-bill ratio improved sequentially to 1.04x, with Sensors and Measurement Systems segments exceeding 1.00[9, 10] - Cash from Operations was $5.3 million and Adjusted Free Cash Flow was $3.7 million[10] - The adjusted gross profit margin remained comparable at 38.3% despite lower revenue, reflecting cost reduction programs offset by unfavorable product mix and foreign currency rates[31] - Net loss attributable to VPG shareholders was $0.9 million, or $0.07 per diluted share, while adjusted net earnings were $0.5 million, or $0.04 per diluted share[33] Segment Performance - Sensors segment revenue for 1Q25 was $27.1 million[13], a 5.1% sequential increase, driven by higher sales of strain gages and precision resistors[16] - Sensors segment bookings grew 6.7% sequentially to $28.7 million[15], the highest level in 5 quarters, with a book-to-bill ratio of 1.06[16] - Weighing Solutions segment revenue for 1Q25 was $26.4 million[19], a 2.7% sequential increase but an 8.3% decrease from the prior year[22] - Measurement Systems segment revenue for 1Q25 was $18.2 million[24], a 13.8% decrease from 4Q24 and a 19.0% decrease from the prior year, impacted by project timing and cyclical softness in the Steel market[27]

Financial Data and Key Metrics Changes - First quarter revenue was $71.7 million, a modest decline from the previous quarter, impacted by $2 million in delayed shipments of calc products [4] - Consolidated orders grew 2.7% sequentially, resulting in a book-to-bill ratio of 1.04, marking the second consecutive quarter of order growth [5] - Cash from operations was $5.3 million, with adjusted free cash flow at $3.7 million [5][19] - Adjusted gross margin remained stable at 38.3%, while adjusted operating margin improved to 1.1% from 0.8% in the previous quarter [15][16] - The company reported a net loss of $942,000, or $0.07 per diluted share, but adjusted net earnings were $468,000, or $0.04 per diluted share, compared to $400,000, or $0.03 per diluted share in the previous quarter [17] Business Segment Performance Changes - **Sensors Segment**: Revenue increased 5.1% sequentially, driven by higher sales in the test and measurement market, with bookings rising 6.7% [7] - **Weighing Solutions Segment**: Revenue increased 2.7% from the previous quarter, but orders declined 9.3% sequentially, resulting in a book-to-bill ratio of 0.99 [9][10] - **Measurement Systems Segment**: Revenue declined 13.8% sequentially due to slow trends in the global steel market and shipment delays, while orders increased 17.3% sequentially, resulting in a book-to-bill ratio of 1.07 [11][12] Market Data and Key Metrics Changes - Demand in the test and measurement applications, particularly from semiconductor equipment makers, showed positive trends [7] - Orders for consumer applications grew sequentially, but demand in avionic military and space markets was soft due to project timing [8] Company Strategy and Development Direction - The company outlined three strategic priorities for 2025: driving business development with new customers, reducing costs and increasing operational efficiencies, and pursuing high-quality acquisitions [13][14] - The company is on track to achieve targeted annual operational cost reductions of $5 million by year-end [14] Management's Comments on Operating Environment and Future Outlook - Management noted a modest recovery in order intake, particularly in test and measurement from semiconductor customers and humanoid robots [21] - The short-term global economic outlook for 2025 is uncertain, but the company remains optimistic about long-term potential [13] Other Important Information - The company expects net revenues for the second quarter to be in the range of $70 million to $76 million [19] - Capital expenditures for 2025 are forecasted to be between $10 million and $12 million, with most spending expected in the second half of the year [18][35] Q&A Session Summary Question: Opinion on incoming order book and inventory trends - Management observed a modest recovery in Q1, mainly in test and measurement from semiconductor customers and humanoid robots, with demand primarily for replenishing current supply chains [21] Question: Revenue profile and gradual upslope - Management confirmed that the revenue profile has troughed and expects a gradual upslope moving forward [22][23] Question: Delay in calc order and cancellation risk - Management acknowledged the significant delay but does not foresee cancellation risks due to the custom nature of the products [24] Question: Timing of $5 million cost savings - Most savings are expected in cost of goods sold, resulting from material cost reductions and process improvements [25][26] Question: Humanoid robots opportunity and sensor usage - Management indicated that each robot may use tens of sensors, with ASPs ranging from $500 to $1,200 per robot [30][31] Question: CapEx ramp throughout the year - Management expects a larger CapEx in the second half of the year due to longer lead times for semiconductor equipment [33][35] Question: Share repurchases and cash location - Management noted that a significant portion of cash is outside the U.S., making share repurchases complicated due to potential tax implications [39][40]