Financial Data and Key Metrics Changes - The company reported revenue of $162 million for Q2 2025, with gross margins at 24.9%, which included $38.6 million in EA-related inventory and supply chain charges [22] - Total operating expenses were $125.1 million, including restructuring charges of $8.8 million and impairment charges of $39.8 million [22] - The company anticipates a revenue outlook of $145 million for Q3 2025, with gross margins projected at 46.5% [24] Business Line Data and Key Metrics Changes - The decision to discontinue the electronics assembly (EA) equipment business was announced, which is expected to improve overall competitiveness and align with long-term technology trends [6][20] - The automotive and industrial sectors saw a sequential decline of approximately 7% in Q2, but were up nearly 14% year-over-year due to ongoing demand improvements [11] - The APS business remains stable, with expectations for continued revenue consistency despite market fluctuations [12] Market Data and Key Metrics Changes - Southeast Asia experienced a significant slowdown, accounting for the majority of the company's Q2 to Q3 weakness, primarily due to concerns over potential tariff impacts on the automotive and industrial sectors [29][30] - In contrast, order activity increased in China and Taiwan, indicating a bifurcation in market dynamics [23][46] - Utilization rates in China are reported to be over 80%, while Taiwan's rates are just touching 80% [72] Company Strategy and Development Direction - The company plans to focus on vertical wire, power semiconductor, advanced dispense, and thermal compression technologies to strengthen growth prospects [10][17] - The restructuring effort aims to enhance long-term financial performance with anticipated improvements in gross margins [8] - The company is well-positioned to capitalize on emerging opportunities in the semiconductor market, particularly in advanced packaging and power semiconductor applications [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the semiconductor industry's resilience despite macroeconomic uncertainties and trade dynamics [9][19] - The company anticipates continued capacity digestion supported by improving utilization rates, with expectations for a return to incremental capacity growth in core markets [24] - Management noted that while some customers may delay capital expenditures, semiconductor unit growth is expected to improve through fiscal 2025 [23] Other Important Information - The company completed a share repurchase program with a $300 million authorization, repurchasing over 500,000 shares for $21.3 million during Q2 [23] - The EA business was generating annual revenue of approximately $25 million to $30 million, with gross profit ranging from $7 million to $11 million [40] Q&A Session Summary Question: Can you provide insights on June's dynamics? - Management indicated a pronounced Q3 slowdown in Southeast Asia, primarily due to concerns over potential tariff impacts on the automotive and industrial sectors [28][30] Question: What is the revenue run rate of the EA business being exited? - The EA business was generating revenue of about $25 million to $30 million annually, with gross profit around $7 million to $11 million [40] Question: What are the dynamics on the power semiconductor front? - The power semiconductor market is expected to grow rapidly, with new products being introduced to enhance market reach and align with global demand for electric vehicles [42]