Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 was $19 million, with Adjusted EBITDA at $1.4 million, both within guidance [5][6] - Gross margin as a percentage of sales increased to 44.8% from 38.4% year-over-year and 44.4% sequentially [14] - GAAP net income for the first quarter was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the previous quarter [15] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the thermal processing solutions segment, up from 30% in the previous quarter [6][12] - Book-to-bill ratio was 1.1, driven by strong performance in AI equipment orders [6] - Weak demand for PR Hoffman products negatively impacted overall SFS results, offsetting gains in other areas [8] Market Data and Key Metrics Changes - Demand for AI infrastructure is expected to continue increasing, with semiconductor OEMs and OSATs expanding capacity [6] - The company received initial orders for panel-level packaging equipment, indicating emerging technology demand [7] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging to support emerging customer requirements [7] - A semi-fabless manufacturing model has been adopted, consolidating manufacturing from seven facilities to four, which is expected to increase revenue with minimal capital expenditures [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for AI-related products and a robust opportunity pipeline for specialty chemicals [10][32] - The outlook for the second fiscal quarter is revenue guidance of $19 million to $21 million, primarily driven by AI-related equipment sales [16] Other Important Information - Cash generated from operations was $4.1 million for the first quarter, with a cash balance of $22.1 million and no debt [9][15] - The company did not repurchase any shares under its stock repurchase program since its initiation [15] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [21][22] Question: Are there any other qualifications underway in the services and chemical businesses? - Management confirmed active engagements and a promising pipeline for specialty chemicals, indicating strong customer engagement [24] Question: What are you most encouraged about as you move through fiscal 2026? - Management highlighted strong bookings, short lead times for AI packaging equipment, and a solid pipeline for specialty chemicals as encouraging factors [30][32] Question: Can you discuss the increase in SG&A and R&D expenses? - Management noted that R&D increases are focused on next-generation packaging equipment for AI applications and building momentum in the semi-fab solutions area [36] Question: What is the reason for the high tax rate this quarter? - Management clarified that the high tax rate is due to U.S. entities being in a loss position, with tax expenses primarily from foreign entities [40][41]