Financial Data and Key Metrics Changes - Revenue for Q2 was $193 million, up 9% sequentially and 33% year over year [12][13] - GAAP gross margin was 56.1%, while non-GAAP gross margin was 56.3%, up 90 basis points from the prior quarter [15] - GAAP operating loss was $23 million, with non-GAAP operating income of $1 million [16] - GAAP loss per share was $0.67, while non-GAAP earnings per share was $0.11, beating guidance by $0.02 [16] Business Line Data and Key Metrics Changes - Home and Life revenue was $83 million, up 2% sequentially and 45% year over year, driven by new design ramps with medical customers [13] - Industrial and Commercial revenue was $110 million, up 14% sequentially and 25% year over year, supported by electronic shelf labeling and smart meter rollouts [13][18] - Distribution accounted for approximately 69% of revenue mix, with channel inventory increasing slightly to 51 days [14][15] Market Data and Key Metrics Changes - The home automation segment showed strength, particularly in gateways and smart lighting [6] - Shipments to global smart metering customers are steady, including India's electric metering rollout [9] - Customer surveys indicated lower inventory positions compared to 90 days ago, suggesting a positive demand outlook [11][17] Company Strategy and Development Direction - The company is focused on converting design win pipeline into production ramps, with 10 of the 12 largest customer ramps on track for 2025 [5][11] - The Series two platform is driving revenue growth and market share gains, particularly in Bluetooth and Wi-Fi products [5][9] - The introduction of the Series three platform is expected to enhance capabilities and performance, setting new industry benchmarks [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in strong growth potential in the healthcare market, particularly in continuous glucose monitoring applications [8] - The evolving tariff discussions have not significantly impacted customer forecasts or order patterns [11][17] - The outlook for Q3 anticipates revenue between $200 million and $210 million, implying a 23% year-over-year growth rate [18][19] Other Important Information - The company has secured design wins in emerging medical applications, including remote vital sign monitors [10] - The balance sheet ended with $416 million in cash and short-term investments, with days of sales outstanding at approximately 30 days [16][17] Q&A Session Summary Question: Home and Life business performance - Management confirmed that the continuous glucose monitoring target remains on track for 10% of sales by 2025, with design ramps being the primary growth driver [23][25] Question: Gross margin expectations - Management expects to maintain gross margins in the high end of the 56% to 58% range, driven by distribution channel contributions [26][27] Question: Design win pipeline update - The design win pipeline is the largest ever, with significant momentum and expectations for continued growth [30][33] Question: Glucose meter business customer engagement - The company is engaged with over 60 customers in the glucose meter space, ramping more than 12 [34][35] Question: Geographic revenue mix changes - Revenue trends were consistent across geographies, with no significant anomalies noted [38][39] Question: Distribution channel opportunities - The company is working to refill the channel inventory towards the target of 70-75 days, with positive momentum observed [45][47] Question: Tariff impact strategy - The company plans to pass on modest tariff impacts to customers, with a relatively low overall impact expected [50][51] Question: Wi-Fi application wins - Continued progress in Wi-Fi applications, particularly with the Roku design, showcasing long battery life capabilities [54][55] Question: Future growth expectations - Management indicated that design wins and share gains will continue to drive growth, with significant potential in the pipeline [63][65]