Financial Data and Key Metrics Changes - Total net revenue for Q3 was RMB 5.21 billion, slightly down from RMB 5.22 billion in Q2 but up from RMB 4.37 billion a year ago [16] - Non-GAAP net income reached RMB 1.51 billion in Q3, compared to RMB 1.85 billion in Q2 [21] - Non-GAAP net income per fully diluted ADS was RMB 11.36 in Q3, down from RMB 13.63 in Q2 [21] - The effective tax rate for Q3 was 20.9%, higher than the typical rate of approximately 15% due to withholding tax provisions [21] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.87 billion in Q3, up from RMB 3.57 billion in Q2 [16] - Revenue from platform services was RMB 1.34 billion in Q3, down from RMB 1.65 billion in Q2 [17] - The average internal rate of return (IRR) of loans originated was 20.9% in Q3, compared to 21.4% in Q2 [17] Market Data and Key Metrics Changes - The number of new credit line users grew by 9% to 1.95 million in Q3, while the average cost per credit line user declined by 8% [8] - The 90-day delinquency rate increased to 2.09% in Q3 from 1.97% in Q2 [18] - The day-one delinquency rate rose to 5.5% in Q3 from 5.1% in Q2 [18] Company Strategy and Development Direction - The company aims to prioritize risk management and enhance AI capabilities to better serve inclusive finance needs [4] - The focus will be on high-quality customers and optimizing the user mix to improve unit economics and user lifetime value [9] - The company is exploring international opportunities and believes its fintech capabilities are among the best globally [14] Management's Comments on Operating Environment and Future Outlook - The management noted persistent headwinds in China's economy and consumer finance sector, with a decline in short-term consumer loans [4] - The company expects the new regulatory environment to impact market size, risk levels, and profitability in the near term but believes it will lead to a healthier competitive landscape in the long run [27] - For Q4, the company expects non-GAAP net income between RMB 1 billion and RMB 1.2 billion, reflecting a cautious approach due to economic uncertainty [23] Other Important Information - The company issued RMB 4.5 billion in asset-backed securities (ABS) during Q3, up 29% year-over-year [8] - Total cash and cash equivalents were RMB 14.35 billion in Q3, compared to RMB 13.34 billion in Q2, indicating a strong financial position [22] - The company has executed a share repurchase program, purchasing approximately 7.3 million ADSs for $281 million [23] Q&A Session Summary Question: Impact of new loan facilitation rules on business model and take rates - Management indicated that the new rules will require time for adjustment, impacting market size and profitability in the near term, but will lead to a healthier competitive environment in the long run [26][27] Question: Shareholder return and buyback plans - The company plans to resume its $450 million share repurchase program after the earnings call, with a focus on gradually increasing dividends [33][34] Question: Asset quality trends and expectations - Management noted early signs of stabilization in asset quality, with a focus on optimizing risk strategies and improving collection efficiency [39][43] Question: Implications of potential APR regulations - Management stated that while direct exposure to consumer finance companies is limited, there may be indirect impacts on liquidity and risk volatility, leading to adjustments in risk management [46][48] Question: Drivers behind technology solutions loan volume growth - The technology solutions business saw a 200% increase in loan volume due to ramping partnerships and expanding collaboration methods with financial institutions [52][55] Question: Capital heavy vs. capital light business mix outlook - The company anticipates a flexible adjustment in the mix between capital heavy and capital light businesses, with a potential shift towards more capital light in the short term [56][57]

Financial Data and Key Metrics Changes - Total net revenue for Q3 was RMB 5.21 billion, slightly down from RMB 5.22 billion in Q2 but up from RMB 4.37 billion a year ago [16] - Non-GAAP net income reached RMB 1.51 billion in Q3, compared to RMB 1.85 billion in Q2 [20] - Non-GAAP net income per fully diluted ADS was RMB 11.36 in Q3, down from RMB 13.63 in Q2 [20] - The effective tax rate for Q3 was 20.9%, higher than the typical rate of approximately 15% due to withholding tax provisions [20] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.87 billion in Q3, up from RMB 3.57 billion in Q2 [16] - Revenue from platform services was RMB 1.34 billion in Q3, down from RMB 1.65 billion in Q2 [17] - The average internal rate of return (IRR) for loans originated was 20.9%, compared to 21.4% in Q2 [17] Market Data and Key Metrics Changes - The number of new credit line users grew by 9% to 1.95 million in Q3, while the average cost per credit line user declined by 8% [9] - The 90-day delinquency rate increased to 2.09% in Q3 from 1.97% in Q2 [18] - The day-one delinquency rate rose to 5.5% in Q3 from 5.1% in Q2 [18] Company Strategy and Development Direction - The company aims to prioritize risk management and enhance AI capabilities to better serve inclusive finance needs [4] - The focus will be on onboarding high-quality users and optimizing the overall user mix, supported by AI-driven data models [10] - The company is exploring international expansion opportunities while maintaining a commitment to shareholder returns [15] Management Comments on Operating Environment and Future Outlook - The management noted persistent headwinds in China's economy and consumer finance sector, with a decline in short-term consumer loans [4] - The company expects the competitive environment to become more sustainable and healthier in the long run due to regulatory changes [26] - For Q4, the company anticipates generating non-GAAP net income between RMB 1 billion and RMB 1.2 billion [23] Other Important Information - The company issued RMB 4.5 billion in asset-backed securities (ABS) during Q3, up 29% year-over-year [9] - The total cash and cash equivalents and short-term investments amounted to RMB 14.35 billion in Q3, compared to RMB 13.34 billion in Q2 [21] - The company has executed a share repurchase program, purchasing approximately 7.3 million ADSs for a total of $281 million [23] Q&A Session Summary Question: Impact of new loan facilitation rules on business model and take rates - Management indicated that the new rules will impact market size, risk levels, and profitability in the near term, but will lead to a healthier competitive environment in the long run [25][26] Question: Competitive landscape after loan facilitation rules - Management noted a major shakeout in the high-pricing segment, with expectations of reduced competition for traffic and potential market consolidation benefiting the company [28][29] Question: Shareholder return and buyback plans - Management confirmed the resumption of the share repurchase program after the earnings call, with a goal of gradually increasing dividend payouts [31][32] Question: Asset quality trends and expectations - Management observed early signs of stabilization in asset quality, with a focus on optimizing risk strategies and improving collection efficiency [33][34] Question: Implications of potential APR regulations - Management assessed that while direct impact from APR regulations is limited, there may be indirect effects leading to increased liquidity pressure and risk volatility [37][39]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $7.0 million, a 6% increase over Q2 2025, driven by strong volume improvements in key product lines [3] - Gross profit decreased to $0.9 million from $1.6 million in Q2 2025, reflecting investments in direct labor and manufacturing overhead [3][4] - Adjusted EBITDA for the year-to-date totaled $2.1 million, slightly down from $2.2 million in the same period last year, indicating stable performance despite temporary increases in expenses [4] - The net loss for the quarter was $1.4 million, or $0.04 per share, compared to a loss of $0.01 per share in Q2 2025 [4] Business Line Data and Key Metrics Changes - Strong volume improvements were noted in LEO Satellite Optics, Night Vision Optics, and other defense-related programs, contributing to revenue growth [3][9] - Operational execution focused on yield and throughput improvements across major product lines, with advancements in manufacturing capabilities [9][10] Market Data and Key Metrics Changes - The global space economy is projected to reach $1 trillion by 2040, with significant growth in the hyperspectral imaging market expected to reach $28 billion by 2030 [12] - Continued demand strength is anticipated in space communications, defense optics, and biomedical automation, supported by long-term tailwinds [7][8] Company Strategy and Development Direction - The company is focused on disciplined execution, operational improvements, and strategic workforce investments to enhance scalability and market position [9][12] - Syntec is expanding its product portfolio and customer base, with a strong emphasis on partnerships with world-class OEMs in defense, communication, and biomedical sectors [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term strategic position, expecting Q4 2025 revenue to range between $7.3 million and $8.0 million, indicating continued sequential growth [8] - The company anticipates improvements in margin performance as operational initiatives take effect [8] Other Important Information - The company secured a formal waiver from M&T Bank regarding covenant defaults, allowing continued access to its revolving credit facility [5][6] - Investments in manufacturing capacity totaled $0.6 million year-to-date, primarily for targeted capital improvements [5] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [15]

Financial Data and Key Metrics Changes - Fourth Quarter revenue was $229 million, up 11% year over year, at the high end of guidance [5][6] - Non-GAAP gross margin for the Fourth Quarter was 34%, 130 basis points higher than the same quarter last year [6][14] - Non-GAAP earnings per share in the Fourth Quarter was $0.37, up $0.21 compared to last year [6] - Total revenue for Fiscal Year 2025 was $845 million, a 4% increase compared to Fiscal Year 2024 [6] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6][15] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year over year, totaling $152 million in the Fourth Quarter [11][12] - Industrial segment revenue grew by 25% year over year, reaching $77 million in the Fourth Quarter, marking the highest quarterly contribution of industrial revenue in Varex's history [11][12] - For the full fiscal year, medical revenue was $593 million, a 2% increase year over year, while industrial revenue was $252 million, a 10% increase [6][11] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year over year [13] - Sales volume to China remained steady, contributing 14% of total revenues, reflecting resilience in the healthcare market despite tariff challenges [13][21] Company Strategy and Development Direction - The company plans to invest in R&D to strengthen its competitive edge and focus on growth markets such as India, South Asia, the Middle East, and Latin America [22][23] - Varex is advancing its photon counting CT technology and expanding its manufacturing capabilities in India to support cost-effective product designs [22][23][25] - The company aims to lead with innovation while maintaining cost-effectiveness in the value and mid-tier segments [22] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to Fiscal Year 2025 due to global tariff situations, but customer ordering patterns have normalized [21] - Customers in China are projecting stronger orders for 2026 compared to 2024 and 2025, driven by demand for value tier and mid-tier CT systems [21] - The company is intensifying efforts to strengthen geopolitical resiliency through supply chain and manufacturing regionalization [21][22] Other Important Information - The company ended the year with $155 million in cash, cash equivalents, and marketable securities, down from $213 million last year due to debt retirement [6][18] - Gross debt outstanding at the end of the quarter was $370 million, with a net debt leverage ratio of approximately 1.8 times adjusted EBITDA [18][19] Q&A Session Summary Question: Can you split the top 10 customers' contribution between medical and industrial? - Management stated that the top 10 customers generally account for 50%-55% of sales, primarily from the medical segment, but they do not disclose the split for commercial reasons [30][31] Question: Is there a structural shift in the medical and industrial segments? - Management indicated that industrial sales are growing and expected to reach mid-30s as a percentage of overall sales, while medical segment volatility is influenced by geopolitical factors [32][33] Question: What are the implications of GE and Siemens Healthineers divesting their China business? - Management noted that most business in China comes through Chinese OEMs, so these announcements do not have significant implications for Varex [36][37] Question: Can you provide a high-level outlook for the full year? - Management expects solid demand and growth in both medical and industrial segments, with medical business ex-China anticipated to grow [40][41] Question: What is the impact of tariffs on gross margin? - Management indicated that tariffs impact gross margin by 100 to 150 basis points, and they are working to mitigate this through supply chain adjustments [82][83]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $229 million, an increase of 11% year-over-year, and at the high end of guidance [5][6] - Non-GAAP gross margin for the fourth quarter was 34%, up 130 basis points from the same quarter last year [6][14] - Non-GAAP earnings per share in the fourth quarter was $0.37, up $0.21 compared to last year [6] - For the full fiscal year, total revenue was $845 million, a 4% increase compared to fiscal 2024 [6] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year-over-year to $152 million in the fourth quarter, while Industrial segment revenue surged by 25% to $77 million [11][12] - For the full year, Medical revenue was $593 million, a 2% increase, and Industrial revenue was $252 million, a 10% increase [6][11] - The Industrial segment achieved its highest revenue quarter ever at $77 million, driven by strong demand for security inspection systems [5][7] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year-over-year [13] - Sales volume to China remained steady, contributing 14% of total revenues, reflecting resilience in the healthcare market despite tariff challenges [13][21] Company Strategy and Development Direction - The company plans to focus on innovation and cost-effectiveness in the value tier and mid-tier segments, particularly in emerging markets like India, South Asia, and Latin America [22][23] - Investments in supply chain and manufacturing regionalization are aimed at strengthening geopolitical resiliency [21][22] - The company is advancing its Photon Counting CT project and expanding production capabilities in India [23][25] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to fiscal 2025 due to global tariff situations, but customer ordering patterns have normalized [21] - Expectations for stronger orders and sales in China for 2026 compared to previous years were expressed [21] - The company anticipates gradual growth throughout fiscal 2026, with Medical business expected to grow and Industrial business also projected to increase [41][42] Other Important Information - The company ended the year with $155 million in cash, down from $213 million the previous year, primarily due to debt reduction efforts [6][18] - The company reported a non-cash goodwill impairment charge of $94 million taken in Q3, impacting operating income [14] Q&A Session Summary Question: Can you split the top 10 customers' contribution between Medical and Industrial? - Management indicated that the top 10 customers generally contribute 50%-55% of sales, primarily from the Medical segment, but did not provide a specific breakdown for commercial reasons [30][31] Question: Is there a structural shift in Medical and Industrial segments? - Management noted that Industrial sales are growing and approaching 30% of overall sales, while Medical segment volatility is influenced by geopolitical factors [32][33] Question: Any implications from GE or Siemens Healthineers divesting their China business? - Management stated that the majority of business in China comes from Chinese OEMs, and they do not anticipate significant impacts from these potential divestitures [36][37] Question: Can you provide a high-level outlook for the full year? - Management expects solid demand and growth in both Medical and Industrial segments, with China modeled to be stable [40][41] Question: What is the impact of tariffs on gross margin? - Management indicated that tariffs are impacting gross margin by 100 to 150 basis points, but efforts to reroute supply chains and increase production in India may help mitigate this [81][82]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $7.0 million, a 6% increase over Q2 2025, driven by strong volume improvements in key product lines [3] - Gross profit decreased to $0.9 million from $1.6 million in Q2 2025, attributed to investments in direct labor and manufacturing overhead [3][4] - Adjusted EBITDA for the year-to-date totaled $2.1 million, slightly down from $2.2 million in the same period last year, reflecting disciplined cost management [4] - The net loss for the quarter was $1.4 million, or $0.04 per share, compared to a loss of $0.01 per share in Q2 2025 [4] Business Line Data and Key Metrics Changes - Strong performance was noted in LEO Satellite Optics, Night Vision Optics, and other defense-related programs, contributing to revenue growth [3][9] - Operational improvements were highlighted in yield and throughput across major product lines, with expectations for further enhancements in Q4 2025 [9][10] Market Data and Key Metrics Changes - The global space economy is projected to reach $1 trillion by 2040, with Syntec participating in this growth [12] - The hyperspectral imaging market is expected to reach $28 billion by 2030, indicating significant opportunities for Syntec [12] Company Strategy and Development Direction - Syntec is focused on operational execution, innovation, and partnerships with OEMs in defense, communication, biomedical, and consumer markets [9] - The company is investing in manufacturing capacity and capabilities, with $0.6 million allocated for targeted capital improvements year-to-date [5] - Strategic workforce investments include the introduction of an apprenticeship program to support nanomachining and precision optics training [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand strength across space communications, defense optics, and biomedical automation, driven by long-term tailwinds [7][8] - For Q4 2025, revenue is expected to be in the range of $7.3 million to $8.0 million, with anticipated improvements in margin performance [8] Other Important Information - The company secured a formal waiver from M&T Bank for covenant defaults, allowing continued access to its revolving credit facility [6] - Cash at quarter end was $0.6 million, with an additional $0.7 million available under the credit facility, totaling $1.3 million in accessible liquidity [5] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a Q&A segment [15]

Financial Data and Key Metrics Changes - Revenue for Q4 came in at $307 million, above the midpoint of guidance, with non-GAAP earnings per share of $0.99, exceeding high-end guidance due to a $0.28 discrete tax benefit [16] - For FY2025, total revenue was $1.35 billion, up 6% year over year, with non-GAAP earnings per share of $4.24, or $3.97 excluding the discrete tax benefit [17] - Operating cash flow generated was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue for Q4 was $282 million, while products and services revenue was $25 million [16] - Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in FY2025, representing 45% of licensing revenue [17] - Foundational audio technology revenue was just under negative 1%, aligning with expectations of roughly flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in mobile driven by the GE Licensing acquisition, while PC and broadcast grew mid-single digits, and consumer electronics (CE) was down, in line with expectations [17] - The automotive sector is identified as a fast-growing area, with Dolby Atmos music being integrated into more vehicle models [40] Company Strategy and Development Direction - The company aims to expand its total addressable market by delivering value to new customers through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [10][14] - Dolby Vision 2 is set to enhance picture quality and is receiving strong industry support, with major TV manufacturers announcing their commitment [5][6] - The focus on AI-powered innovations is part of the company's strategy to enhance current and future offerings [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have been able to grow Dolby Atmos, Dolby Vision, and imaging patents at about 20% a year [56] - The company does not anticipate significant impacts from tariffs and believes its device partners have shown resilience in dealing with supply chain issues [56] - For FY2026, revenue is expected to grow between 3%-7%, with Dolby Atmos, Dolby Vision, and Imaging Patents revenue projected to grow approximately 15% [19] Other Important Information - The company recorded a $6 million restructuring charge in Q4 as part of efforts to streamline operations [16] - The first revenue from the new imaging patent pool for content streamers is expected to be recognized in FY2026 [9] Q&A Session Summary Question: Expansion of Total Addressable Market with New Consumption Models - Management confirmed that the video distribution program combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [28] Question: Imaging Patents and Revenue Generation - The imaging patent licensing is driven by patent pools, with five licensees signed up in the second half of FY2025, expected to generate revenue in FY2026 [31] Question: Impact of Tariffs and Consumer State - Management indicated no identifiable impact from tariffs and noted that the device market is stabilizing after previous declines [56] Question: Progress in Automotive Sector - The automotive sector is expected to become a separate end market, with ongoing efforts to integrate Dolby Atmos into more vehicle models [40] Question: Capital Allocation and Share Repurchase - The company has over $270 million remaining for share repurchase authorization and continues to evaluate its capital allocation strategy [60]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $307 million, exceeding the midpoint of guidance, with non-GAAP earnings per share of $0.99, boosted by a $0.28 discrete tax benefit [16][17] - For FY2025, total revenue reached $1.35 billion, a 6% increase year-over-year, with non-GAAP earnings per share of $4.24 [17][19] - Operating cash flow was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue for Q4 was $282 million, while products and services revenue was $25 million [16] - Dolby Atmos, Dolby Vision, and imaging patents grew just over 14% in FY2025, representing 45% of licensing revenue [17][19] - Foundational audio technology revenue declined just under 1%, aligning with expectations of flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in the mobile segment, driven by the GE Licensing acquisition, while PC and broadcast grew in mid-single digits [17][19] - Consumer electronics (CE) revenue was down, consistent with expectations [17] Company Strategy and Development Direction - The company aims to expand its total addressable market through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [10][14] - Dolby Vision 2 was announced, enhancing picture quality and allowing deeper integration into TV OEMs' product lines [5][6] - The company is focusing on innovation, particularly in AI-powered technologies, to enhance current and future offerings [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have not seen specific impacts from tariffs, and device partners have shown resilience [56] - The company expects revenue growth of 3%-7% year-over-year for FY2026, with Dolby Atmos, Dolby Vision, and imaging patents projected to grow approximately 15% [19][20] - Management expressed confidence in the growth of Dolby technologies, anticipating that these will contribute significantly to overall revenue [15][56] Other Important Information - The company recorded a $6 million restructuring charge in Q4 as part of operational streamlining [16] - Cash and investments at the end of the quarter totaled approximately $783 million [16] Q&A Session Summary Question: Can you provide more details on the new consumption models and their impact on revenue? - Management confirmed that the video distribution program combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [28][29] Question: What is the status of imaging patents and their monetization? - Management indicated that five licensees signed up in the second half of FY2025, with revenue expected to start in FY2026 [31][34] Question: How is the automotive segment performing? - Management anticipates that automotive will become a separate end market, with ongoing progress in integrating Dolby technologies into more vehicle models [40] Question: What are the impacts of the macro environment on the company's outlook? - Management noted that while the device market is currently sluggish, they expect stabilization and continued growth in Dolby technologies [56][58] Question: What is the company's approach to capital allocation? - The company has over $270 million remaining in share repurchase authorization and continues to evaluate its buyback strategy alongside regular dividend increases [60]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $307 million, exceeding the midpoint of guidance, with non-GAAP earnings per share of $0.99, boosted by a $0.28 discrete tax benefit [16] - For FY2025, total revenue reached $1.35 billion, a 6% year-over-year increase, with non-GAAP earnings per share of $4.24 [17] - Operating cash flow was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue was $282 million, while products and services revenue was $25 million for Q4 2025 [16] - Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in FY2025, representing 45% of licensing revenue [17] - Foundational audio technology revenue declined just under 1%, aligning with expectations of flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in the mobile segment, driven by the GE Licensing acquisition, while PC and broadcast grew in mid-single digits [17] - Consumer electronics (CE) revenue was down, consistent with expectations [17] - The automotive sector continues to grow rapidly, with new agreements signed with major brands like Maruti Suzuki and VinFast [7][8] Company Strategy and Development Direction - The company aims to expand its total addressable market through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [11][12] - Dolby is focusing on innovation and collaboration within the ecosystem to enhance the quality and efficiency of entertainment experiences [13][14] - The company is optimistic about growing Dolby Atmos, Dolby Vision, and Imaging Patents at a rate of 15%-20% per year over the next three to five years [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have not seen specific impacts from tariffs, and partners are resilient [48] - The company expects revenue for FY2026 to be between $1.39 billion and $1.44 billion, reflecting a 3%-7% year-over-year increase [19] - For Q1 FY2026, revenue is expected to be between $315 million and $345 million, with licensing revenue between $290 million and $320 million [20] Other Important Information - The company recorded a $6 million restructuring charge in Q4 2025 as part of operational streamlining [16] - The first licensees for the new imaging patent pool were signed in the second half of FY2025, with revenue recognition expected in FY2026 [10] Q&A Session Summary Question: Expansion of Total Addressable Market - Management confirmed that the video distribution program for streamers combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [24][26] Question: Imaging Patents and Revenue Generation - The imaging patent licensing is primarily driven through patent pools, with five licensees signed up in the second half of FY2025, expected to generate revenue in FY2026 [29] Question: Automotive Market Progress - Management anticipates that automotive will become a separate end market, with ongoing efforts to deepen partnerships with existing brands [35] Question: Macro Environment Observations - Management has not identified specific impacts from tariffs and noted that the device market is stabilizing after previous declines [48] Question: Capital Allocation Strategy - The company has over $270 million remaining in share repurchase authorization and continues to evaluate its capital allocation strategy regularly [52]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $229 million, an 11% increase year over year, and at the high end of guidance [5][12] - Non-GAAP gross margin for Q4 was 34%, up 130 basis points from the same quarter last year [6][15] - Non-GAAP earnings per share for Q4 was $0.37, up $0.21 compared to last year [6][18] - For the full fiscal year, total revenue was $845 million, a 4% increase compared to fiscal 2024 [6][12] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6][19] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year over year to $152 million in Q4, while industrial segment revenue surged by 25% to $77 million [5][12] - For the full year, medical revenue was $593 million, a 2% increase, and industrial revenue was $252 million, a 10% increase [6][12] - The industrial segment achieved its highest revenue quarter ever at $77 million [5][12] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year over year [13] - Sales volume to China remained steady, contributing 14% of total revenues, despite tariff challenges [13][18] Company Strategy and Development Direction - The company is focusing on growth initiatives, including innovative technologies like photon counting for CT and expanding production in India [9][25] - The strategy includes strengthening geopolitical resiliency through supply chain and manufacturing regionalization [22][24] - The company plans to invest in R&D to maintain a competitive edge and target growth markets such as India, South Asia, and Latin America [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to fiscal 2025 due to global tariff situations, but customer ordering patterns normalized as the situation stabilized [22] - Customers in China are projecting stronger orders for 2026 compared to previous years, driven by demand for value-tier and mid-tier CT systems [22][24] - The company expects gradual growth throughout fiscal 2026, with medical business anticipated to grow, while China is modeled to be stable [42][44] Other Important Information - The company ended the year with $155 million in cash, down from $213 million the previous year, primarily due to debt reduction [6][19] - The company reported a net cash flow from operations of $8 million in Q4 [19] Q&A Session Summary Question: Can you split the top 10 customers' contribution between medical and industrial? - The company does not break out the contribution between medical and industrial due to commercial reasons, but top 10 customers generally account for 50%-55% of sales [33] Question: Is there a structural shift in the medical and industrial segments? - Industrial sales are growing and approaching 30% of overall sales, while medical segment volatility is influenced by geopolitical factors [35] Question: Any implications from GE or Siemens divesting their China business? - The majority of business in China comes through Chinese OEMs, so these announcements do not have significant implications for the company [38] Question: Can you provide a high-level outlook for the full year? - The demand environment looks solid, with expectations for growth in both medical and industrial segments, though China is modeled to be stable [42][44] Question: What is the impact of tariffs on gross margin? - Tariffs are impacting gross margin by approximately 100 to 150 basis points, but rerouting supply chains may help mitigate this in the future [83]