Core Insights - Fiscal year 2025 was transformational for the company, achieving 17% top-line growth, 190 basis points of non-GAAP operating margin expansion, and a 53% increase in non-GAAP diluted EPS [1][6][20] - The company is evolving from a holding company structure into a leading provider of AI infrastructure solutions, with significant progress in customer diversification and partnerships [4][6][9] Financial Performance - Q4 revenue was $338 million, a 9% year-over-year increase, with non-GAAP gross margin at 30.9% and non-GAAP operating income of $39 million, up 16% year over year [5][19] - For the full fiscal year, total net sales reached $1.37 billion, up 17% year over year, with non-GAAP diluted EPS at $1.90, a 53% increase compared to fiscal 2024 [20][26] - Advanced computing revenue for 2025 was $138 million, reflecting a 17% year-over-year growth, with HPC AI revenue from non-hyperscalers increasing by 75% [10][21] Business Segments - Integrated memory segment revenue for Q4 was $132 million, a 38% year-over-year increase, and for the full year, it totaled $464 million, up 30% [13][22] - Optimized LED segment revenue for Q4 was $67 million, a 2% year-over-year increase, with full-year revenue at $256 million, roughly flat year over year [15][22] Strategic Initiatives - The company is focusing on expanding its enterprise customer base and AI infrastructure deployments, while driving innovation across its hardware, software, and services portfolio [17][18] - Key partnerships have been developed with major companies like NVIDIA, CDW, Insight, and Dell, enhancing the company's market reach [4][9] Market Outlook - For fiscal 2026, the company expects net sales to grow by 6% plus or minus 10%, with a focus on diversifying customer sales mix and anticipating zero hardware sales to hyperscale customers [33][35] - The memory segment is projected to grow between 10-20% year over year, while LED sales are expected to change between -5% and +5% [37][39]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was $338 million, a 9% year-over-year increase, with non-GAAP gross margin at 30.9% [6][21] - Non-GAAP operating income for Q4 was $39 million, a 16% increase year-over-year, with non-GAAP operating margin at 11.6%, up 80 basis points [7][27] - For the full fiscal year 2025, total revenue grew 17% year-over-year to $1.37 billion, with non-GAAP diluted EPS at $1.90, a 53% increase compared to the prior year [9][22] Business Segment Data and Key Metrics Changes - Advanced computing revenue for Q4 was $138 million, down 7% year-over-year, but full year revenue reached $648 million, reflecting 17% year-over-year growth [23][12] - Integrated memory segment revenue for Q4 was $132 million, a 30% increase year-over-year, with full year revenue totaling $464 million, also up 30% year-over-year [15][24] - Optimized LED segment revenue for Q4 was $67 million, a 2% increase year-over-year, with full year revenue at $256 million, down 1% year-over-year [18][25] Market Data and Key Metrics Changes - The company noted strong demand for AI infrastructure solutions across various sectors, including financial services, energy, federal, and education [9][10] - The HPC AI revenue from non-hyperscalers increased by 75% year-over-year, indicating successful customer diversification [12][23] Company Strategy and Development Direction - The company is transitioning from a holding company structure to a leading provider of AI infrastructure solutions, focusing on customer diversification and strategic partnerships [6][19] - Key partnerships have been developed with NVIDIA, CDW, Insight, and Dell, enhancing the company's market reach [6][11] - The company aims to grow its enterprise customer base, drive innovation, and strengthen its balance sheet for long-term success [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing AI adoption and the potential for broader production scale rollouts in the coming years [9][10] - The outlook for fiscal year 2026 anticipates net sales growth of 6% plus or minus 10%, with expectations of a stronger second half compared to the first half [33][39] - The company expects to face challenges due to the winding down of the Penguin Edge business and has assumed zero hardware sales to hyperscale customers for FY 2026 [33][34] Other Important Information - The company completed a $200 million investment from SK Telecom and refinanced its debt to strengthen its balance sheet [6][19] - Non-GAAP operating expenses for the full fiscal year were $257 million, up 1% year-over-year, reflecting disciplined expense management [26][27] Q&A Session Summary Question: Is the project with the hyperscale customer over? - Management clarified that while they do not anticipate hardware revenue from hyperscalers in FY 2026, they continue to have ongoing services and discussions for future opportunities [42][43] Question: What is the impact of the Penguin Edge business on revenue growth? - Management indicated that the Penguin Edge business and hardware from hyperscalers would result in a 14 percentage point headwind to total company revenue growth, primarily affecting advanced computing [50][53] Question: What are the key areas of momentum for advanced computing? - Management highlighted customer diversification, particularly in financial services, federal, and education sectors, as key areas driving momentum for advanced computing [76][79] Question: How is the company differentiating its memory offerings? - The company differentiates its memory solutions through value-added services, design, and performance reliability, allowing it to charge more than the industry average for memory products [95][96]