Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $19.8 million, exceeding guidance of $17-$19 million, driven by strong demand for AI-related equipment [5][13] - Adjusted EBITDA was $2.6 million, approximately 13% of revenue, surpassing mid-single-digit expectations [5] - GAAP net income for Q4 2025 was $1.1 million, or $0.07 per share, compared to a net income of $0.1 million, or $0.01 per share in the previous quarter [16] Business Line Data and Key Metrics Changes - Thermal processing solutions segment saw over 30% of revenue from AI infrastructure equipment, up from 25% in the prior quarter [6] - Semiconductor fabrication solutions segment slightly exceeded expectations despite weak demand for mature node applications [9] - Revenue mix consisted of approximately 60% from capital equipment and 40% from recurring revenues [7][36] Market Data and Key Metrics Changes - Strong demand in Asia for reflow ovens used in AI applications contributed to sequential revenue increase [13] - Mature node semiconductor revenues declined significantly, impacting overall revenue compared to the same period last year [13] Company Strategy and Development Direction - The company is focusing on expanding higher-margin recurring revenue streams while capitalizing on AI infrastructure opportunities [8][11] - Cost reduction initiatives have resulted in $13 million of annualized savings, improving operational efficiency [10] - A share repurchase program of up to $5 million has been authorized to return capital to shareholders while investing in growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength for AI-related equipment revenue based on fourth quarter bookings [8] - The company anticipates revenue in the range of $18-$20 million for Q1 2026, with expectations for solid operating leverage [17][18] - Management acknowledged the cyclical nature of the semiconductor equipment industry and its impact on revenue [18] Other Important Information - The CFO announced resignation effective December 29, 2025, with plans to assist in the transition [19][20] - The company is targeting high-end, high-margin applications in medtech and defense markets to develop recurring revenue streams [10] Q&A Session Summary Question: Visibility with AI customers and backlog trends - Management noted strong demand and visibility, with most equipment being booked and shipped within the same quarter [23][24] Question: Savings from subletting underutilized facilities - Expected annualized savings from subletting underutilized facilities are estimated at $700,000-$1 million [26] Question: New applications for silicon carbide - Management indicated potential growth in silicon carbide for power electronics in data centers, but noted that substrate applications for AI chips are still in early stages [27][30] Question: Opportunities in the service area - Focus is on high-value niche opportunities in medical and defense sectors, leveraging foundry services for recurring revenue [32] Question: Margin profile of existing backlog - Management confirmed that the backlog has been cleaned up, with a focus on high-quality, high-margin products [37] Question: Impact of auto industry trends - Management clarified that their exposure is primarily to Western OEMs, which have been soft, despite better EV sales in China [38] Question: Competitive landscape in thermal area - No significant changes in the competitive landscape were noted [46]