Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 22% to $242 million, exceeding guidance [26] - Gross margins improved to 48.7%, while operating margins increased to 15.8% [27][28] - Earnings per ADS was reported at $1, with cash equivalents at $272.4 million [28] Business Line Data and Key Metrics Changes - eMMC and UFS revenue grew over 20% sequentially, driven by strong demand in smartphones, automotive, and industrial sectors [11][12] - Client SSD revenue increased by more than 20% sequentially, with a notable 45% growth attributed to the new PCIe Gen5 controller [14][15] - Automotive business is expected to represent at least 10% of revenue by 2026-2027, with significant design wins contributing to growth [18][19] Market Data and Key Metrics Changes - AI-driven demand is creating supply shortages in HDD, NAND, and DRAM, leading to price increases expected to continue through 2026 [7][9] - The shift towards high-capacity, high-performance storage is increasing demand for QLC technologies, which the company is well-positioned to capitalize on [11][12] Company Strategy and Development Direction - The company is focused on expanding market share through new product introductions, particularly in PCIe Gen5 controllers and enterprise storage solutions [6][25] - There is an emphasis on long-term growth in automotive and enterprise markets, with plans to scale the MonTitan product line [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained revenue and profitability growth, driven by strong demand across various sectors [6][10] - The company anticipates continued challenges in NAND pricing but believes it will remain robust due to strong customer relationships and inventory management [10][48] Other Important Information - The company is actively engaging with NAND makers to expand partnerships and address resource shortages [9][10] - Inventory levels increased by 62% in Q3 2025 to support growing business demands [43] Q&A Session Summary Question: Insights on SSD controller revenue from white-box AI server makers - The company noted that SSD controller sales to white-box AI server makers are growing, particularly in China and Taiwan, but specific volume details were not disclosed [31] Question: Gross margin guidance for Q4 - Management explained that new product scaling, particularly PCIe Gen5, is expected to improve gross margins, with a historical range of 48% to 50% anticipated [32] Question: Long-term enterprise storage ambitions - The company is optimistic about the MonTitan and boot drive solutions, with expectations for significant growth in enterprise storage over the next few years [34][37] Question: NAND supply prioritization - Management indicated that NAND suppliers are balancing output across various sectors, including AI, PC, and automotive, to maintain industry stability [40] Question: Update on MonTitan customer ramp timing - The company is close to ramping with tier one customers but could not provide specific timelines [42] Question: Inventory increase reasons - The increase in inventory was attributed to preparations for a growing backlog of orders across all product categories [43] Question: Impact of elevated material costs on profitability - Management stated that the impact from foundry and OSAT costs will be limited, with most products on trailing edge process geometries [45][46] Question: Dynamics of NAND flash pricing and customer engagement - The company is experiencing strong demand for QLC high-capacity enterprise SSDs, with existing customers upsizing their orders [49]