Financial Data and Key Metrics Changes - For Q3 2025, revenue was $7.4 million, a 9.6% decrease from the prior year quarter, but a 44.9% increase compared to Q2 2025 [3] - Year-to-date revenue reached $20.8 million, which is 7.1% higher than the same period in 2024 [3] - Gross profit for the quarter was $2.4 million, with a gross margin of 32.7%, compared to $1.8 million and 21.5% in the prior year quarter [8][9] - Net income for Q3 2025 was $384,000 or $0.06 per diluted share, compared to $203,000 or $0.03 per diluted share in Q3 2024 [9] Business Line Data and Key Metrics Changes - Revenue from the CVD equipment segment was primarily driven by three key customers, representing approximately 55% of total revenue for the quarter [8] - The SDC segment reported $1.7 million in revenue, down slightly from $1.9 million in Q3 2024 due to fewer contracts in progress, but it continues to have a strong backlog [8] Market Data and Key Metrics Changes - Orders for Q3 totaled $2.2 million, primarily driven by demand in the SDC segment for gas delivery systems [3] - Total orders for the first nine months of 2025 were $9.5 million compared to $21 million in the same period last year [3][4] Company Strategy and Development Direction - The company is implementing a comprehensive transformation strategy to reduce fixed operating costs and create a more agile organization [4] - Key elements of the transformation include transitioning to outsourced fabrication for certain components and a workforce reduction expected to save approximately $2 million annually starting in 2026 [4][5] - The focus remains on core strengths such as engineering design, assembly, test, installation, and customer service while exploring strategic alternatives for certain businesses and product lines [5] Management's Comments on Operating Environment and Future Outlook - Management noted that bookings were influenced by external factors such as proposed tariffs, reduced U.S. government funding, and timing in product adoption within growth markets [4] - The company remains encouraged by opportunities in target markets such as aerospace and defense, industrial applications, and electric vehicle battery materials [5][6] - Management emphasized the importance of new equipment orders, cost management, and successful implementation of the transformation plan for returning to consistent profitability [10] Other Important Information - At September 30, 2025, the company held $8.4 million in cash and cash equivalents, down from $12.6 million at the end of 2024 [9][10] - The company expects to incur approximately $100,000 in severance and related charges in Q4 2025 as part of the transformation plan [10] Q&A Session Summary Question: Insights on markets for composite applications for combustion turbines - Management indicated that while ceramic matrix composites are used in hot sections of engines, future opportunities may arise in nuclear reactors and pellet encapsulation [16] Question: Details on materials outsourcing locations - Management confirmed that outsourcing will primarily focus on suppliers in the U.S. and may extend to Canada, emphasizing a mix of external and internal components [19][20]