Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 19.3% sequentially to $198.7 million, exceeding guidance due to strong mobile demand and growth in PCIe five client SSD business [26] - Gross margin improved to 47.7%, while operating margin increased to 12.8%, both above the guided range [27] - Earnings per ADS was reported at $0.69, with total stock-based compensation of $200,000 in Q2 [27] Business Line Data and Key Metrics Changes - The mobile business saw significant growth, driven by strong demand for eMMC and UFS controllers, with robust booking momentum from both flash makers and module makers [13][14] - The SSD market stabilized, with expectations for low single-digit growth in 2025, and a strong second half anticipated due to seasonal factors [15][16] - The automotive segment is experiencing increased design win activity, with expectations that it will account for at least 10% of revenue by 2026-2027 [19] Market Data and Key Metrics Changes - The NAND flash environment improved in Q2, with rising prices and declining inventory levels in the PC and smartphone markets [10][11] - Demand for memory and storage solutions is expanding across various end markets, including consumer, commercial, industrial, automotive, and enterprise [12] Company Strategy and Development Direction - The company is focused on scaling high-end UFS PCIe controllers and expanding into automotive and other markets, aiming for a $1 billion revenue run rate by year-end [9][10] - Partnerships with NAND flash makers are emphasized to maintain industry leadership and drive long-term revenue growth [11] - The company plans to invest in next-generation advanced geometry products to enhance market share and diversify its product portfolio [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong revenue growth in the second half of 2025, driven by new product ramps and design wins [31] - The company anticipates continued improvement in gross margins as new products scale and the enterprise business ramps up [31] - Management highlighted the importance of maintaining flexibility in response to market dynamics and customer needs [11] Other Important Information - Cash and cash equivalents at the end of Q2 2025 were $282.3 million, down from $331.7 million at the end of 2024, primarily due to dividend payouts and increased inventory [28] - The company did not repurchase any shares in Q2 2025 [28] Q&A Session Summary Question: Clarification on operating expenses and exchange rate impact - Management noted that the strengthening of the Taiwan dollar impacted operating margins, which would have been about one percentage point higher without the exchange rate fluctuations [36] Question: Update on enterprise business and customer ramps - Management indicated strong design momentum for the MonTitan products, with initial ramps expected in Q4 2025 and significant growth anticipated in 2026 [41][42] Question: Expectations for operating expense intensity and leverage - Management expects operating margin leverage as gross margins improve and revenue scales, while continuing to invest in new projects [51][52] Question: Automotive engagement and margin profile - Management expressed optimism about the automotive business, expecting it to contribute over 10% of total revenue by 2026-2027, with similar R&D costs to client SSD controllers [63] Question: Roadmap for enterprise and future engagement - Management outlined plans for the next generation of MonTitan products and emphasized the growing demand for high-capacity enterprise SSDs [66]