Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $5.4 million, down from $5.9 million in Q2 2025 and flat compared to the prior year period [13] - Gross margin as a percentage of sales was 50.7% in Q3 2025, compared to 49.8% in Q2 and 53.9% in the prior year period [16] - Operating expenses for Q3 2025 were $4.1 million, up from $3.8 million in Q2 2025 and $3.3 million in the prior year period [18] - The reported operating loss for Q3 2025 was $1.393 million, compared to an operating loss of $325,000 in Q3 2024 [19] Business Line Data and Key Metrics Changes - Automotive electronics represented 78% of Q3 2025 bookings, up from 59% for all of 2024 [14] - Consumable adapters and services accounted for 24% of total revenue, providing a base of recurring revenue, while capital equipment sales represented 76% of total revenue [14] Market Data and Key Metrics Changes - Asia, particularly China and Korea, showed strong performance in Q3 2025, especially within the EV sector of automotive electronics [15] - Europe faced pressures with capital equipment spending impacted by tariff and trade uncertainties, as well as EV disruptions [15] - The Americas remained relatively flat, bolstered by systems to be deployed in Mexico [15] Company Strategy and Development Direction - The company aims to diversify beyond the automotive sector and explore new markets and businesses [5] - A new generation of products is being developed, with a focus on automation and addressing gaps in the solutions area [8] - The company is looking to expand into the services market, which is estimated to be a $1 billion-plus opportunity [9] Management's Comments on Operating Environment and Future Outlook - Management noted pressures from global trade and tariff negotiations, but these are now considered tertiary concerns [14] - The company is optimistic about future growth, particularly with new product launches and partnerships in the pipeline [12] - Management expressed confidence in the ability to drive revenue growth through new business units and leveraging core competencies [10] Other Important Information - The company has no debt and maintains a cash balance of approximately $9.7 million as of September 30, 2025 [20] - A thorough review of gross margin enhancement strategies is underway, focusing on pricing modifications and supply chain optimization [17] Q&A Session Summary Question: Future platform growth and core business focus - Management emphasized that the new platform being developed will support long-term growth while maintaining focus on the core business [26] Question: Customer feedback on new technologies - Management reported positive customer feedback and engagement, indicating that the products being developed align with customer needs [35] Question: Sales cycles and critical acclaim at trade shows - Management noted that technology events can drive significant spending, and improvements in yield rates for UFS technology are expected to lead to increased orders [38] Question: Optimism regarding trade partners and tariffs - Management expressed cautious optimism about trade negotiations but acknowledged ongoing challenges in the supply chain [44] Question: Partnerships and acquisitions - Management discussed ongoing conversations with larger test companies and the potential for partnerships that embed their technology [49] Question: EV disruptions and market conditions - Management highlighted that while Asian manufacturers are performing well, European automotive manufacturers are facing significant challenges [60]