Financial Data and Key Metrics Changes - Consolidated net revenue increased by 8.8% on a constant currency basis for the quarter, driven by 12% volume growth, particularly in North America [8][16] - Adjusted EBITDA declined by 7.8% for the quarter, including a non-cash impact of 4.2% from Amazon warrants [11][19] - Gross profit declined by 2.5% on a constant currency basis, influenced by lower volumes in Europe and APAC, along with higher input costs [18] Business Line Data and Key Metrics Changes - North America saw sales up by 33% and volumes up more than 40% compared to Q1 2024, driven by strong growth in enterprise accounts [9][17] - Europe and Asia Pacific combined revenue decreased by 6% on a constant currency basis, primarily due to lower PTS volumes in March [16] - Automation sales in EMEA were in line with expectations, with a forecast for meaningful growth in 2025 [17] Market Data and Key Metrics Changes - North America exhibited robust growth, while Europe experienced a deterioration in activity, particularly in March [10][36] - Japan showed strong momentum, while Southeast Asia and Australia had mixed performance [36] Company Strategy and Development Direction - The company is focused on driving volumes, winning market share, reducing structural costs, and maximizing cash [14][30] - There is an emphasis on automation as a key growth driver, with expectations of 50% growth in this area [11][42] - The company is taking steps to mitigate tariff impacts by evaluating alternative suppliers and refurbishing existing machines [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather disruptions from global trade discussions due to its diverse geographic presence [7][10] - There is cautious optimism regarding the European market, with potential for a pickup in activity due to legislative changes and stimulus [35] - The company is managing its business tightly in the near term while maintaining a long-term focus on health and potential [14][30] Other Important Information - The company completed the first quarter with a strong liquidity position, having a cash balance of $65.5 million and no drawings on its revolving credit facility [20] - Capital expenditures for the quarter were $7.5 million, primarily related to PPS converter spend [22] Q&A Session Summary Question: Insights on EMEA and APAC performance in March and April - Management noted that Southern Europe performed better than Northern Europe, with some stabilization observed in April [34][36] Question: Confidence in automation projects and potential delays - Management expressed confidence in the 50% growth rate for automation, despite potential delays in project signings due to macro conditions [41][42] Question: Outlook on gross margin trajectory - Management expects gross margin to improve from Q1 to Q2, with significant improvements anticipated in Q3 and Q4 as cost initiatives take effect [48] Question: Details on cost reduction actions - Management highlighted operational efficiencies, better planning, and structural cost reductions as key areas for improving margins [52][55]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 8.8% on a constant currency basis for the quarter, driven by 12% volume growth, particularly in North America [7][15] - Adjusted EBITDA declined by 7.8% for the quarter, including a non-cash impact of the Amazon warrants, which contributed a 4.2% headwind to reported figures [10][18] - Overall profitability was negatively impacted by increased input costs and lower sales volume in Europe and Asia Pacific [11][12] Business Line Data and Key Metrics Changes - North America saw sales up by 33% and volumes up more than 40% compared to Q1 2024, driven by strong growth in enterprise accounts [7][15] - Europe and Asia Pacific combined revenue decreased by 6% on a constant currency basis, primarily due to lower PTS volumes in March [15] - Automation sales in EMEA were in line with expectations, with a forecast for meaningful growth in 2025 [15] Market Data and Key Metrics Changes - North America exhibited robust growth, while Europe experienced a deterioration in activity, particularly in March [9][33] - April showed stabilization in Europe, with volumes up compared to the prior year, but overall activity was still weaker than at the start of the year [10][34] - Japan was highlighted as a strong market within Asia Pacific, while Southeast Asia and Australia showed mixed performance [35][36] Company Strategy and Development Direction - The company is focused on driving volumes, winning market share, reducing structural costs, and maximizing cash flow [13][29] - There is an emphasis on deepening relationships with major e-commerce and retail players to support growth in North America [8] - The company is taking steps to mitigate tariff impacts by evaluating alternative suppliers and refurbishing existing machines [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather disruptions from global trade discussions due to its diverse geographic presence [6][29] - There is cautious optimism regarding potential growth in Europe, influenced by legislative changes and stimulus measures [34] - The company remains confident in achieving a 50% growth rate in automation despite potential delays due to macroeconomic factors [42][44] Other Important Information - The company invested over $10 million in additional paper inventory to mitigate lead time disruptions [19] - The impact of the Amazon warrants will continue to create non-cash decreases in reported revenue figures [22][23] - The company is implementing structural cost reductions of $8 million to improve its financial profile [18] Q&A Session Summary Question: Insights on EMEA and APAC performance in March and April - Management noted that Southern Europe performed better than Northern Europe, with some stabilization observed in April [33][34] Question: Expectations for automation project timelines - Management indicated that while some projects may slip between quarters, they remain confident in achieving significant growth in automation [40][42] Question: Outlook on gross margin improvements - Management expects gross margin to improve from Q1 to Q2, with further improvements anticipated in Q3 and Q4 as cost initiatives take effect [47][48] Question: Details on cost reduction actions - Management highlighted operational efficiencies, better planning, and structural cost reductions as key areas for improving margins [50][54]