Core Viewpoint - Enablence Technologies Inc. reported a decrease in first-quarter revenue for Fiscal Year 2026, attributed to a one-time correction related to planned manufacturing expansion, but anticipates significant growth in wafer capacity and overall business momentum moving forward [2][5]. Financial Performance - Revenue for the quarter ended September 30, 2025, was $836, a decrease of $382 or 31% compared to $1,218 in the same period last year [5]. - Gross margin reported was $(1,653), declining by $1,096 from $(557) in the previous year, impacted by revenue timing and increased raw material costs [5]. - Net loss increased to $6,350, compared to a net loss of $13,914 in the same period last year, marking a 62% increase driven by investments in R&D and manufacturing capacity [5]. - Comprehensive loss rose to $5,334 from $4,380 in the same period last year, influenced by the strengthening of the USD [5]. - Cash and cash equivalents at the end of the quarter were $2,757, down from $5,004 as of June 30, 2025 [5]. Business Outlook - The company expects monthly wafer starts to grow from 1,500 to over 3,000 by the end of the fiscal year, indicating a strong demand for both legacy and AI products [2]. - Non-communications revenue has exceeded 12% of the business, with growth particularly in AI and LiDAR applications [2]. - The North American module business is experiencing significant growth due to re-shoring initiatives, enhancing supply-chain certainty for U.S. customers [2]. Company Overview - Enablence Technologies Inc. designs, markets, and sells optical chips and subsystems for various applications, including datacom, telecom, automotive, and AI [6]. - The company serves a global customer base and is involved in emerging markets such as medical devices and virtual reality [6].

Core Insights - Enablence Technologies Inc. reported a significant revenue increase of 271% for Fiscal Year 2025, reaching $5.95 million, despite global uncertainties [2][6] - The company anticipates continued growth in Fiscal Year 2026, projecting revenue of approximately $12 million, supported by a robust order book and strong demand across its core product lines [3][5] Financial Performance - Revenue for the year ended June 30, 2025, was $5,941 thousand, compared to $1,601 thousand for the same period in the prior year, marking an increase of $4,340 thousand [6] - The gross margin slightly declined by $73 thousand, resulting in a gross margin of $(2,402) thousand for the quarter, although the gross margin percentage improved significantly due to increased capacity [6] - The net loss increased to $18,153 thousand from $14,108 thousand in the previous year, reflecting a 39% rise driven by investments in sales, marketing, R&D, and manufacturing equipment [6][12] Operational Developments - Enablence has made significant investments in tooling, processes, and infrastructure to enhance operational efficiency and expand wafer capacity at its Fremont, California facility [3] - The company plans to accelerate the deployment of advanced toolsets in etching, deposition, and lithography to further increase wafer capacity throughout Fiscal Year 2026 [3] - The company is focusing on supply chain resilience strategies to ensure reliable delivery and pricing, independent of China, in response to global supply chain disruptions [4] Cash Position and Funding - Enablence ended the quarter with $5,004 thousand in cash and cash equivalents, a substantial increase from $614 thousand as of June 30, 2024, supporting ongoing operations and growth initiatives [12] - The company received an additional $22,856 thousand in new funding during the period, continuing to invest in manufacturing capacity and R&D [12]