Financial Data and Key Metrics Changes - Consolidated Q1 revenue from continuing operations was $44.7 million, up 12.1% year over year and down 8.5% sequentially, aligning with the midpoint of guidance [10][21] - Consolidated Q1 gross profit margin from continuing operations was 20.9%, up 3.3 percentage points year over year but down 2.3 percentage points sequentially, exceeding the high end of guidance [10][22] - Q1 operating loss narrowed to $6.3 million compared to $9.4 million in Q1 2024, with adjusted operating loss of $5.4 million [26][27] Business Line Data and Key Metrics Changes - Power Analog Solutions revenue was $39.9 million, up 9.1% year over year and down 8.3% quarter over quarter, representing nearly 90% of Q1 consolidated revenue [15][21] - Power IC revenue was $4.9 million, an increase of 44.1% year over year but down 10% sequentially [19][21] - The industrial segment saw an 8.7% year-over-year decline, while the communication segment increased nearly 64% year over year [16][17] Market Data and Key Metrics Changes - The communication market accounted for 23% of Power Analog Solutions revenue in Q1, driven by design wins in AI-enabled smartphones [17] - The automotive segment showed strong year-over-year growth, expanding beyond Korea and Japan [18] - The computing segment experienced a 10% year-over-year decline due to weaker demand from China [17] Company Strategy and Development Direction - The company plans to shut down its display business by the end of Q2 2025 to focus on power semiconductor operations [6][23] - The strategic pivot aims to achieve a $300 million annual revenue run rate with a 30% gross profit margin target within three years, referred to as the "three-three-three strategy" [9][37] - The company expects to attain quarterly adjusted EBITDA breakeven from continuing operations by the end of 2025 [31] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges from an unpredictable macroeconomic landscape but remains optimistic about achieving growth targets [9][37] - The company expects mid single-digit sequential growth in Q2, with strong year-over-year growth anticipated in the communications segment [36] - Management emphasized the importance of operational efficiency and shareholder value in the strategic pivot [36][37] Other Important Information - The company expects cash inflow of approximately $15 million to $20 million from the liquidation of the display business over two years [33] - Q1 CapEx was $200,000, with a total forecast range of $26 million to $30 million for the full year 2025 [29][30] - The company repurchased approximately 300,000 shares for $1.1 million in Q1 2025, with remaining authorization of about 23.5 million shares [27] Q&A Session Summary Question: Impact of tariffs on manufacturing and markets - Management noted minimal direct shipment to the U.S. and manageable tariff risks, with 94% of power revenue coming from Asia [42][43] Question: Drivers for gross margin improvement - Management highlighted the transition from foundry services to new generation power products as a key driver for gross margin improvement [44][45] Question: Focus on Power IC vs. Power Analog segments - Management confirmed a concerted effort to grow both segments, aiming for double-digit growth in the coming years [46]