Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $6,200,000, representing a 19% increase from $5,200,000 in the fourth quarter of 2024 and a slight increase from $6,100,000 in the first quarter of 2024 [13][14] - Net loss for the first quarter was $382,000, an improvement from a net loss of $1,200,000 in the fourth quarter of 2024 and $807,000 in the prior year period [17] - Adjusted EBITDA was nearly breakeven at a loss of $98,000 compared to a loss of $364,000 for the prior year period [18] Business Line Data and Key Metrics Changes - Automotive electronics accounted for 66% of first quarter bookings, up from 59% for all of 2024 [13] - Consumables, including adapters and services, represented 46% of total first quarter revenue, providing a stable base of recurring revenue [14] - New bookings for the first quarter were $4,600,000, up from $4,100,000 in the fourth quarter of 2024 but down from $8,000,000 in the first quarter of 2024 [14] Market Data and Key Metrics Changes - Revenue from the Americas and Europe saw significant growth, with increases of 324% and 244% respectively, while Asia experienced a 40% decline due to prior year performance and current trade uncertainties [13][14] - Backlog at the end of the first quarter was $2,900,000, down $600,000 from December 31 [15] Company Strategy and Development Direction - The company is focusing on strategic investments for growth and productivity improvements, with a new product roadmap to be detailed in the next quarter or two [7] - Discussions with semiconductor companies are ongoing, aiming to establish strategic relationships that will support future growth [8] - The company is adapting to tariff impacts by exploring various pathways to deliver products without significant disruptions [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that tariffs and trade uncertainties have created challenges but expressed confidence in navigating these issues [19] - The company remains cautious for the second quarter but is focused on driving sales improvement through new market strategies [19] - Management highlighted the importance of customer communication and monitoring market conditions closely [59] Other Important Information - Operating expenses for the first quarter were CAD3.6 million, down 11% from the fourth quarter and 12% from the prior year [17] - The company maintains a healthy cash position with $10,500,000 in cash at the end of the first quarter, reflecting improved sales and cost structure [18] Q&A Session Summary Question: Revenue mix between capital equipment, adapters, and software - The recurring revenue mix decreased to 46% in Q1 2025 from 50% in 2024, driven by increased system deliveries [21][22] Question: Expense reduction potential for the current year - The company anticipates ongoing opportunities for expense reduction but will balance this with necessary investments for growth [27][28] Question: Progress in the semiconductor sector - Management reported positive developments in establishing relationships with semiconductor companies, indicating faster progress than expected [35][36] Question: Improvement in orders in April - There is cautious optimism regarding recurring revenue, but system sales may be slower due to ongoing tariff uncertainties [53][54] Question: Utilization of systems - The company does not track customer system utilization due to security concerns but monitors adapter sales as an indicator of usage [56][57]

Financial Data and Key Metrics Changes - The company reported first-quarter revenue of $6,200,000, which is a 19% increase from $5,200,000 in the previous quarter and a slight increase from $6,100,000 in the same quarter last year [14][15] - Net loss for the first quarter was $382,000, an improvement from a net loss of $1,200,000 in the previous quarter and $807,000 in the same quarter last year [18] - Adjusted EBITDA was nearly breakeven at a loss of $98,000 compared to a loss of $364,000 in the prior year period [19] Business Line Data and Key Metrics Changes - Automotive electronics represented 66% of first-quarter bookings, up from 59% for all of 2024 [14] - Consumables, including adapters and services, accounted for 46% of total first-quarter revenue, providing a stable base of recurring revenue [15] - First-quarter bookings were $4,600,000, up from $4,100,000 in the previous quarter but down from $8,000,000 in the same quarter last year [15] Market Data and Key Metrics Changes - Revenue from the Americas and Europe saw significant growth, with increases of 324% and 244% respectively, while Asia experienced a 40% decline due to prior strong performance and current trade uncertainties [14][15] - The company noted that the automotive and IoT sectors showed unexpected strength in certain geographies, particularly in the domestic EV market in China [9] Company Strategy and Development Direction - The company is planning to roll out a new product roadmap over the next two to three quarters, focusing on strategic investments for growth and productivity improvements [7] - Discussions with semiconductor companies are ongoing, with expectations to announce strategic relationships by the end of Q2 [7][36] - The company aims to diversify its customer segments and is developing new products to meet the needs of industrial service provider networks [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs and trade uncertainties on business decisions, particularly in Asia, but expressed confidence in navigating these challenges [13][20] - The company remains focused on driving sales improvement through new go-to-market strategies and product developments despite current economic pressures [20] - Management indicated that while Q2 may be cautious, they are optimistic about future growth opportunities [20] Other Important Information - The company ended the first quarter with $10,500,000 in cash, reflecting higher sales and improved cost structure [19] - Operating expenses for the first quarter were CAD3.6 million, down 11% from the previous quarter and 12% from the prior year [18] Q&A Session Summary Question: Can you provide details on revenue mix between capital equipment, adapters, and software? - The recurring revenue mix decreased to 46% in Q1 from 50% in the prior year, but overall revenue increased due to more systems being secured and delivered [22][23] Question: Will SG&A expenses continue to decrease throughout the year? - While there are ongoing efforts to reduce expenses, significant year-over-year reductions may not be anticipated, as investments will also be necessary for growth [27][29] Question: How is the company progressing in the semiconductor sector? - The company has made substantial contacts at trade shows and is optimistic about building relationships with semiconductor houses, which could lead to future business opportunities [36][37]