Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 was $19 million, with Adjusted EBITDA at $1.4 million, both within guidance [5][11] - Gross margin as a percentage of sales increased to 44.8% from 38.4% year-over-year and 44.4% sequentially [14] - GAAP net income for the first quarter was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the previous quarter [15] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the Thermal Processing Solutions (TPS) segment, up from 30% in the previous quarter [6][12] - Book-to-bill ratio was 1.1, driven by strong performance in the TPS segment due to AI equipment orders [6] - Specialty chemicals segment showed strong customer engagement and improved bookings, while PR Hoffman products faced weak demand [8] Market Data and Key Metrics Changes - Demand for AI infrastructure is driving growth, with semiconductor OEMs and OSATs increasing investments [6] - Weak demand in the mature node semiconductor market is impacting overall results, particularly for PR Hoffman products [8] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging and panel-level packaging, which is expected to drive future growth [7] - A semi-fabless manufacturing model is being adopted to increase revenue with minimal capital expenditures [9] - The company aims to overserve underserved customers with high-value applications in specialty chemicals [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for AI-related equipment and strong bookings, with expectations for growth in the third and fourth quarters [6][32] - The company anticipates revenue for the second quarter to be in the range of $19 million to $21 million, driven primarily by AI-related equipment sales [16] Other Important Information - Cash generated from operations was $4.1 million for the first quarter, with a cash balance of $22.1 million and no debt [9][15] - The company did not repurchase any shares under its stock repurchase program since its initiation [15] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [21][22] Question: Are there any new products related to higher density packaging? - Management indicated that new products are being developed for higher density packaging, with meaningful demand expected around 2027 [23] Question: What are the most encouraging factors moving through fiscal 2026? - Management highlighted strong bookings, short lead times for AI packaging equipment, and a robust pipeline for specialty chemicals as encouraging factors [30][32] Question: Can you discuss the increase in SG&A and R&D expenses? - Management noted that R&D increases are primarily due to investments in next-generation packaging equipment for AI applications and specialty chemicals [36][38] Question: What is the outlook for AI revenue growth? - Management expressed improved visibility on AI revenue, with expectations for continued momentum and new facilities being built to support demand [40][42] Question: Can you explain the high tax rate this quarter? - Management clarified that the high tax rate is due to U.S. entities being in a loss position, resulting in no tax benefit recognized [43][46]