Financial Data and Key Metrics Changes - The company achieved net revenue of $6.3 million, up 7% sequentially and 35% year over year [4] - Gross margin improved by 200 basis points sequentially and over 1,100 basis points year over year, reaching 58.1% [5][16] - Operating expenses declined by 15% year over year, totaling $5.8 million [5][18] - The net loss for the quarter was $2.1 million, or $0.08 per diluted share, compared to a net income of $1.1 million in the same period last year [19] Business Line Data and Key Metrics Changes - SRAM sales continued to rise, driven by demand from AI chip emulation systems, but faced supply chain constraints impacting 2026 sales [9][10] - Sales to KYEC were $267,000, down from $1 million a year ago, while sales to Cadence Design Systems increased to $1.5 million from zero in the same period last year [15] - Defense and military sales accounted for 19.1% of first-quarter shipments, down from 31.9% a year ago [15] Market Data and Key Metrics Changes - The company is experiencing strong demand for high-performance SRAM chips, particularly from hyperscalers in the AI sector [9] - Extended lead times due to supply chain issues are affecting the ability to fulfill orders, but forecasts from major customers remain solid [10][16] Company Strategy and Development Direction - The company plans to target high-growth opportunities in the satellite and edge computing sectors, leveraging AI capabilities [7] - There is an emphasis on advancing the development of the Gemini II chip and preparing for the next-generation APU, Plateau [8][20] - The company is evaluating strategic options to secure necessary capital for product development [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain challenges due to tariffs affecting assembly operations, particularly in Taiwan [24] - The company expects net revenues in the second fiscal quarter to range between $5.9 million and $6.7 million, with gross margins between 56% and 58% [20] Other Important Information - The company ended the first quarter with a cash position of $22.7 million, up from $13.4 million at the end of the previous quarter [19] - The company is actively working with the Board and advisors to evaluate strategic alternatives for efficient scaling [7][20] Q&A Session Summary Question: Can you provide more color on the supply chain issues? - The transition of assembly operations from China to Taiwan due to tariffs has affected capacity and lead times [24][25] Question: Will that end up making customers possibly order earlier? - Yes, customers are being informed to adjust their ordering patterns to avoid delays [26][27] Question: Sales to KYEC seemed weak this quarter. Can you comment on that? - Inventory levels have stabilized, but orders were not fulfilled within lead times due to supply chain issues [30] Question: What type of product are you shipping to Cadence? - The company is shipping emulation systems that support the design of AI chips [31] Question: What are the trading windows for the ATM? - The trading window opens two days after the earnings call and closes on the fifteenth of the last month of the quarter [32]