Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $26.2 million, a decrease from $28.1 million in Q2 2025, reflecting a decline of $1.9 million [9] - Year-over-year revenue declined by $4 million compared to Q3 2024, primarily due to lower sales in semi, AutoEV, and defense aerospace [9] - Gross profit decreased by $1 million to $11 million, with gross margin declining 70 basis points to 41.9% due to lower volume [10] - Net loss for the quarter was $0.9 million, or a loss of $0.08 per share, with adjusted net loss at $0.02 per share [11] Business Line Data and Key Metrics Changes - Orders for AutoEV increased significantly, accounting for approximately three-quarters of the sequential growth, doubling to $14.6 million [6] - Defense aerospace orders more than doubled sequentially to $6.4 million, driven by increased demand for next-generation weapons systems [7] - Year-over-year orders were up 34.2%, with notable increases in AutoEV, industrial, defense aerospace, life sciences, and semi markets [7] Market Data and Key Metrics Changes - The backlog at the end of Q3 was $49.3 million, significantly higher than at the end of Q2, positioning the company well for upcoming quarters [8] - The semi market remained sluggish, particularly in the analog mixed signal business, despite some pickup in orders [8] Company Strategy and Development Direction - The company is executing its Vision 2030 strategy, focusing on market diversification and innovation to capture new opportunities [6][15] - Continued efforts to penetrate target accounts and drive adoption of new products are seen as critical for future growth [6][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of a market recovery, many customers remain hesitant to commit to new capital projects [12] - The company expects Q4 revenue to rebound to a range of $30 million to $32 million, with a gross margin forecast of approximately 43% [12] Other Important Information - The company reduced debt by $6.2 million in the first nine months of 2025, ending Q3 with total debt outstanding of $8.9 million [11] - Cash and cash equivalents at the end of Q3 were $21.1 million, indicating strong liquidity [11] Q&A Session Summary Question: Breakdown of the $2 million shipment delay - Approximately $1.5 million was tied to life sciences markets, with delays in systems at Alphamation, and the remainder was related to the semi industry at Ackylogic [19] Question: Duration of strong automotive orders - The strong demand for automotive orders is expected to continue for the foreseeable future, driven by new technologies and model year programs [21] Question: Nature of challenges faced in the quarter - The challenges were different from those in the first quarter, primarily related to new technologies at Alphamation and Ackylogic [25] Question: Insights on the semi market - The front end of the semi market remains anemic, with some signs of life, while the back end is softer due to tariff issues and investment hesitancy [28] Question: Changes in economic environment affecting guidance - The guidance reflects a cautious approach, with a focus on minimizing risks and ensuring that the company can deliver on expected shipments [33][41] Question: Performance in the industrial segment - The industrial segment has been stable, with ongoing projects but some delays due to customer hesitance on capital expenditures [42]

Core Viewpoint - Suzhou Lianxun Instrument Co., Ltd. has officially submitted its IPO application to the Shanghai Stock Exchange, aiming to raise funds for the development and industrialization of next-generation optical communication testing equipment and other projects, positioning itself as a key player in the high-end testing instrument market for telecommunications and semiconductors [2][8]. Company Overview - Lianxun Instrument is a leading domestic high-end testing instrument manufacturer, specializing in the R&D, manufacturing, sales, and service of electronic measurement instruments and semiconductor testing equipment [2]. - The company provides core testing instruments that enhance product development and mass production efficiency in advanced technology sectors such as artificial intelligence, new energy, and semiconductors [2]. Product Offerings - The company’s electronic measurement instruments include communication testing instruments and electrical performance testing instruments, with a focus on optical communication testing [2][4]. - Lianxun Instrument is one of the few manufacturers globally that can supply core testing instruments for 400G and 800G high-speed optical modules, and it is the second company worldwide to launch all core testing instruments for the industry’s highest level 1.6T optical modules [3][4]. Market Position - According to Frost & Sullivan, Lianxun Instrument ranks third in the Chinese optical communication testing instrument market in 2024, being the only domestic company in the top five [4]. - The company also ranks first in the Chinese optical electronic device testing equipment market in 2024, indicating a strong competitive position [5]. Technological Capabilities - Lianxun Instrument has developed a core technology system focused on high-speed signal processing, weak signal processing, and ultra-precision motion control, which are critical for the testing industry [3][9]. - The company has successfully industrialized key products such as the wafer-level aging system and power chip KGD sorting testing system, demonstrating its technological capabilities in the power device testing field [6]. IPO Fund Utilization - The company plans to raise 1.954 billion yuan through its IPO, which will be allocated to various projects including the R&D and industrialization of next-generation optical communication testing equipment, automotive chip testing equipment, and storage testing equipment [7][8]. - The funding will also support the construction of R&D and manufacturing centers, enhancing the company's existing R&D and production capabilities [8][9].

Financial Data and Key Metrics Changes - Revenue for the first quarter was $206 million, an increase of 11% year over year, and at the high end of the company's range [5] - Adjusted net income rose to $17 million from $2 million last year, while adjusted EBITDA increased to $30.7 million from $17.6 million, representing about 15% of sales [5][12] - Gross profit increased by 28% year over year to $60.8 million, with gross margin expanding to 29.5% from 25.7% [12] - Adjusted operating income was $22.6 million, or 11% of sales, compared to $5.5 million and 3% in the prior year [13] Business Line Data and Key Metrics Changes - The Aerospace segment achieved record revenue of $191.4 million, up 17% year over year, with adjusted operating profit of $31 million and an operating margin of 16.2% [8][15] - The Test segment reported sales of $14.6 million, down from the previous year, with an adjusted operating loss of $1.5 million due to a $1.9 million adjustment related to a long-term contract [16][17] Market Data and Key Metrics Changes - First quarter bookings were strong at $280 million, yielding a book-to-bill ratio of 1.36, with a significant order of $57 million for the FLRAA development effort [6][7] - The backlog reached an all-time high, indicating strong future demand [6] Company Strategy and Development Direction - The company remains focused on margin expansion, free cash flow generation, and continuous improvement, with plans for capital expenditures between $35 million and $50 million for the year [21][22] - The company is evaluating its financing structure and considering value-creating initiatives, including acquisitions and share repurchases [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, particularly concerning potential tariff impacts, estimating obligations between $10 million and $20 million [24][25] - The company is maintaining its revenue forecast for 2025 at $820 million to $860 million, reflecting a 6% increase from 2024, while acknowledging both upside potential and downside risks [23][24] Other Important Information - Operating cash flow improved significantly to $20.6 million from $2 million in the prior year, driven by stronger cash earnings and efficient working capital management [18][19] - Long-term debt net of cash was reduced to $134.2 million, with total liquidity at approximately $194 million [20] Q&A Session Summary Question: How much mitigation can be done to offset the tariff impact? - Management indicated it is difficult to quantify timing without knowing the exact tariffs, but they are considering various alternatives [28][30] Question: Does the review of each business indicate restructuring or strategic changes? - Management stated it could involve any of those aspects, emphasizing the need to evaluate product lines and initiatives [32][33] Question: What are the expectations regarding Boeing's production needs? - Management has not heard of major changes from Boeing and is encouraged by their production rate progression [35] Question: Can more detail be provided on demand growth from airlines versus OEMs? - Demand has been strong from both sides, with commercial transport sales being roughly 50% line fit and 50% aftermarket [43] Question: Is the $1.9 million charge contained? - Management acknowledged potential risks and is conducting a review to assess the situation [46] Question: What is the worst-case scenario for the UK legal fees? - Management believes the worst-case scenario for legal fees is around $7.2 million, with the overall situation being better than initially feared [51][52]