Financial Data and Key Metrics Changes - Net revenue for Q4 FY25 decreased by 5.6% to 37.4million,withgrossprofitat12.7 million and a gross profit margin of 34.1%, down from 37.2% in the prior year [38][39] - Non-GAAP operating income for Q4 was 1.4million,downfrom3.6 million in the previous year, primarily due to lower sales volume and losses at MTEX [40][42] - Adjusted EBITDA for Q4 was 2.8million,comparedto5.2 million in Q4 FY24 [41] Business Line Data and Key Metrics Changes - The aerospace segment achieved record revenue of 48.9million,contributingapproximatelyone−thirdofconsolidatedsales,withanoperatingprofitof22.825.7 million, with a non-GAAP operating profit of 2.3million,or8.911.7 million in Q4, primarily due to delayed defense orders and the Boeing strike [43] Market Data and Key Metrics Changes - Recurring revenue accounted for 71% of consolidated sales in FY25, with the aerospace segment's recurring revenue at 49% [16][18] - The Tuffrader printer's share of total printer deliveries is expected to more than double to 86% by the end of the fiscal year, enhancing margins and reducing royalty obligations [20][22] Company Strategy and Development Direction - The company is focused on integrating MTEX's technologies, restructuring for cost savings of 3millionannually,andprioritizinghigh−marginproducts[11][13]−Aproductroadmapincludesfivenext−generationproductsbasedonEmTech′stechnology,aimedatexpandingapplicationcapabilitiesandimprovingprinterreliability[14][34]−Thestrategyemphasizesleveragingproprietarydatavisualizationtechnologytodriveasignificantrecurringrevenuemodel[16]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementacknowledgedachallengingfiscal2025duetointegrationissuesandlowerdemandbutexpressedconfidenceinlong−termshareholdervalueandgrowthpotential[9][15]−Thecompanyanticipatesnetrevenuegrowthof7.45.1 million, with funded debt decreasing to 46.7million[45]−Thecompanygeneratedcashfromoperationsof4.8 million in FY25, down from $12.4 million in FY24 [46] Q&A Session Summary Question: What are the expectations for the PI segment performance in FY26? - Management indicated that the PI segment is not expected to perform strongly initially in FY26 but expects improvements from cost reductions and portfolio realignment in the second half of the fiscal year [42] Question: What are the key drivers behind the growth assumptions for FY26? - The successful integration of new print engine and ink technology, along with the transition of OEMs to the Tuffrider printer line, are identified as key growth drivers [48]
