Financial Data and Key Metrics Changes - First quarter net sales were $240.5 million, a decrease of 7% compared to $258.5 million in fiscal 2025, and a sequential decrease of 6% [17][18] - Adjusted income from operations increased by $6.7 million year-over-year to $2 million, and increased by $23.6 million sequentially [18] - First quarter adjusted EBITDA was $15.7 million, up $5.9 million from the same period last year, and increased by $22.8 million sequentially [19] - First quarter free cash flow was $18 million, a significant increase from negative $2.7 million in fiscal 2025 [20][21] - Net debt decreased by $11.7 million from the fourth quarter to $202.3 million, with a total reduction of $41 million over the last three quarters [21] Business Line Data and Key Metrics Changes - Data center power product sales grew by 12% year-over-year, although sequential sales were lower due to record sales in the previous quarter [10][17] - Automotive segment sales were weaker in North America, impacted by the transition from legacy programs to new ones [18] - EV sales represented 19% of consolidated total sales, an increase from 18% last year, but down from 20% sequentially [9] Market Data and Key Metrics Changes - The company remains optimistic about the long-term megatrend in EVs, despite a soft near-term outlook primarily in North America [9][10] - The EMEA market, particularly Egypt, has shown notable improvement, while solid performance continues in Asia [7][12] Company Strategy and Development Direction - The company is focused on a transformation journey aimed at stabilizing the business and positioning for future growth, with significant organizational changes already implemented [13][14] - The power solutions segment is viewed as a long-term growth engine, with ongoing investments in this area [12] - The company plans to launch over 30 new programs this year, with most launches scheduled for the remainder of the year [6][7] Management's Comments on Operating Environment and Future Outlook - Management is confident in affirming guidance for fiscal 2026, expecting to double EBITDA despite a projected $100 million decline in sales due to lower EV demand [6][22] - The company anticipates a rebound in EV sales in fiscal 2027 based on customer forecasts and industry projections [10] Other Important Information - The company experienced a delay in reporting first quarter earnings due to an inadvertent miscalculation of dividend equivalents, which required obtaining a waiver from banks [17] - The fiscal 2026 guidance includes expectations for sales in the range of $900 million to $1 billion and EBITDA between $70 to $80 million [22][23] Q&A Session Summary Question: Automotive segment performance and EBITDA contribution - Management noted that the automotive business in EMEA has improved, while North America faces challenges due to program transitions, but expects stabilization and growth in fiscal 2027 [27][28] Question: Strategic outlook for Asia - The Asia team is leading product development for EV applications, and despite some headwinds, progress is being made in operational and engineering aspects [30][31] Question: Impact of tariff expectations - There has been no significant change in tariff expectations, and the current tariff regime is creating new opportunities for the company [40][41] Question: Restructuring actions progress - The company is on track with headquarters consolidation and has reduced headcount by approximately 500 people as part of the transformation [42][44] Question: End market outlook for commercial vehicles - Management expects a rebound in the commercial vehicle space in 2026, with ongoing interest from customers despite current softness in the market [45][47] Question: Sales guidance and program roll-offs - The sales guidance remains unchanged, with expected reductions in Stellantis programs and positive contributions from new program launches [54] Question: Data center bus bars market - The data center bus bars market is primarily focused on new construction, with opportunities for growth as the company expands its share [55][57] Question: EV sales distribution by region - In fiscal 2025, 55% of EV sales were in EMEA, 16% in Asia, and 30% in North America, indicating a diversified exposure to the EV market [60][61]