Financial Data and Key Metrics Changes - The first quarter revenue was 37.7million,representingayear−over−yeargrowthof14.43.1 million increased by 27.6% compared to the prior year period, with an adjusted EBITDA margin expanding by 80 basis points year-over-year [25] - Net loss was 400,000,comparedtonetincomeof1.2 million in the prior year period [24] Business Line Data and Key Metrics Changes - Product identification revenue grew by 13.8% year-over-year, driven by 1.4millioninincrementalEmteksalesandhigherdemandforprintersandsupplies[20]−Aerospacerevenueincreasedby16.82.8 million, representing 24.2% of sales, compared to 1.7millionintheprioryearperiod[23]MarketDataandKeyMetricsChanges−Firstquarterorderstotaled34.9 million, up 5.4% year-over-year, driven by higher demand for product identification hardware and supplies [14] - Backlog for the quarter declined by 2.8millionyear−over−yearto25.5 million, primarily due to clearing previously delayed shipments [16] - The company secured a three-year label supply contract with a multinational beauty company, marking a new account [15] Company Strategy and Development Direction - The company aims to drive long-term revenue growth and improve profitability through a unique position in the global data visualization market [6] - Key strategic drivers include transitioning customers to high-performance Tough Writer printers, launching next-generation product identification solutions, and streamlining operations [7][8][9] - The company expects to complete a 3millionannualizedcostreductionplanbythesecondquarter[11]ManagementCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceintheabilitytodeliverlong−termshareholdervaluethroughfocusedexecutionofthestrategy[14]−Thecompanyanticipatesrevenueforthefullyeartobeintherangeof160 million to 165million,representinga712.6 million in total liquidity, including 5.4millionincash[26]−Cashprovidedbyoperationsinthefirstquarterwas4.4 million, down from 6.9 million in the prior year period [27] - The company is focused on improving inventory turns from approximately two times to more than three times over the fiscal years [27] Q&A Session Summary Question: What are the expectations for the new product launches? - Management indicated that three new product identification solutions have already been launched and are receiving strong customer interest, with six more expected before the end of fiscal twenty twenty-six [29] Question: How is the company managing costs in light of the current economic environment? - The company is critically assessing its cost structure and cash flow generation, on track to complete a 3 million cost reduction program by Q2 [29] Question: What is the outlook for the aerospace segment? - Management expects an increase in ToughRider shipments from existing commercial aerospace customers beginning in the second quarter as the transition from legacy printers continues [21]
