Financial Data and Key Metrics Changes - The company reported revenue of $120.1 million for Q1 2025, reflecting a 2% increase compared to Q4 and a 15% decline year-over-year [15][8] - Non-GAAP gross margin was 69%, up 690 basis points from Q4, indicating resilience despite lower revenue levels [16][8] - Non-GAAP operating margin was 26.2%, and adjusted EBITDA margin was 33.4%, demonstrating financial discipline [17][8] - Free cash flow for Q1 was $23.3 million, with a free cash flow margin of 19.4% [17][8] Business Line Data and Key Metrics Changes - The communications and computing segment experienced its first year-on-year growth in two years, while industrial and automotive grew 6% sequentially, marking its first quarter of sequential growth in six quarters [9][10] - Revenue from new products continued to grow at a strong double-digit pace, both sequentially and year-on-year [10][12] Market Data and Key Metrics Changes - The company noted improvements in bookings across various end markets, particularly in cloud and AI-related sectors [33][34] - The industrial sector showed positive trends with PMI above 50 for the past four years, while automotive remained flat [34][35] Company Strategy and Development Direction - The company is focused on cost controls, operational efficiency, and delivering value to shareholders while navigating macroeconomic uncertainties [7][8] - There is a strong emphasis on expanding design win rates in small and mid-range FPGAs, with a goal of achieving high teens percentage of new product revenue for the full year 2025 [10][12] - The company is committed to driving innovation and expanding customer engagements, with a strong belief in sustainable growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the second half of 2025, closely monitoring the impact of tariffs and customer demand [13][20] - The company expects a U-shaped recovery in the long term, supported by improving demand signals and a strong backlog [12][13] - Management remains confident in the strength of their product portfolio and market position, despite potential macroeconomic challenges [12][34] Other Important Information - The company repurchased approximately $25 million of common stock during the quarter, reducing dilution by 4.6% [19][20] - The balance sheet remains strong, with no debt and ready access to capital for future growth investments [18][19] Q&A Session Summary Question: Update on 2025 revenue outlook - Management sees no change in the 2025 revenue outlook, citing improving demand signals and a better book-to-bill ratio [26] Question: Differences in growth rates between segments - The decline in the communications and computing segment was primarily due to client revenue decline related to older platforms, while server and communication businesses have shown growth [28] Question: Impact of tariffs on customer positioning - Management noted strong demand from cloud customers and improvements in industrial sectors, while remaining cautious about potential tariff impacts [34][35] Question: Design win momentum and growth drivers - Design win momentum remains strong, driven by differentiation in product attributes, with both unit recovery and ASP improvements contributing to growth [37] Question: Inventory levels and normalization - Channel inventory is expected to take longer to normalize than initially anticipated, but internal inventory has seen significant reductions [46][48] Question: Competitive landscape in low power, small size FPGAs - The company remains confident in its unique architecture and product advantages, despite increased competition from larger players [80] Question: New product growth expectations - New product growth is expected to accelerate, with contributions from Nexus and Avant products layering in over the next few years [108][110]