Cohu (COHU) Q2 2025 Earnings Call July 31, 2025 04:30 PM ET Speaker0Good day, and thank you for standing by. Welcome to Cohu's Second Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone.You will then hear an automated message advising your hand is raised. To withdraw your question, pl ...

Stryker (SYK) Q2 2025 Earnings Call July 31, 2025 04:30 PM ET Speaker0Welcome to the Second Quarter twenty twenty five Stryker Earnings Call. My name is Megan and I'll be your operator for today's call. At this time, all participants are in a listen only mode. Following the conference, we will conduct a question and answer session. This conference call is being recorded for replay purposes.Before we begin, I would like to remind you that the discussions during this conference call will include forward looki ...

Alphatec (ATEC) Q2 2025 Earnings Call July 31, 2025 04:30 PM ET Speaker0Good afternoon, everyone, and welcome to the webcast of ATEC's Second Quarter Financial Results. We would like to remind everyone that participants on the call will make forward looking statements. These statements are based on the current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC. During this call, you ma ...

AXT (AXTI) Q2 2025 Earnings Call July 31, 2025 04:30 PM ET Speaker0Good afternoon, everyone, and welcome to AXT Inc. Second Quarter twenty twenty five Financial Conference Call. Leading the call today is Doctor. Morris Young, Chief Executive Officer and Gary Fisher, Chief Financial Officer. In addition, Tim Bettles, VP of Business Development, will be participating in the Q and A portion of the call.My name is Audra, and I will be your coordinator today. I would now like to turn the call over to Leslie Gree ...

Financial Data and Key Metrics Changes - The company recorded 3.6 gigawatts of module sales in Q2 2025, exceeding the midpoint of previous forecasts [4] - Q2 earnings per diluted share were $3.18, surpassing the high end of guidance [4] - Gross margin for the quarter increased to 46%, up from 41% in Q1 [38] Business Line Data and Key Metrics Changes - Manufacturing output was 4.2 gigawatts in Q2, with 2.4 gigawatts from U.S. facilities and 1.8 gigawatts from international facilities [4][5] - The company recognized 6.5 gigawatts in sales through Q2, with a contracted backlog of 68.5 gigawatts valued at $20.5 billion as of December 31, 2024 [30] Market Data and Key Metrics Changes - The company experienced a net debooking of 0.2 gigawatts through June 30, 2025, primarily due to contract terminations [31] - The total pipeline of mid to late-stage booking opportunities remains strong at 83.3 gigawatts [36] Company Strategy and Development Direction - The company is focused on expanding U.S. manufacturing capacity, aiming for over 14 gigawatts by 2026 [5] - The recent reconciliation legislation is expected to strengthen the company's position by limiting foreign competition, particularly from Chinese manufacturers [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for U.S. energy demand and the company's leadership in solar manufacturing [57][58] - The company anticipates challenges due to ongoing trade policy uncertainty, particularly regarding tariffs [56] Other Important Information - The company published its annual corporate responsibility report, highlighting efforts in resource efficiency and waste reduction [8][9] - The SEC concluded its inquiry into the company without recommending enforcement action [42] Q&A Session Summary Question: What is the current run rate for bookings and pricing power? - Management noted that the bookings in July reflected a mix of factors, including safe harbor strategies and customer needs for certainty in supply chains [60][63] Question: What percentage of the backlog could be at risk due to potential changes in safe harbor language? - Management clarified that the executive order should not impact the legacy section 48 and section 45 contracts, which are safe harbor until 2028 [69][72] Question: Why has the company not tapped into 2027 and beyond U.S. Series seven capacity? - Management indicated that pricing levels are being evaluated, and they are strategically managing inventory to reduce costs associated with warehousing [76][80]

Financial Data and Key Metrics Changes - Total net sales increased by 7.9% to $417 million, with a constant currency increase of 8.5% and comparable store sales up by 4.6% [17] - Adjusted EBITDA for the quarter was $69 million, representing approximately 16.5% of sales [6][22] - GAAP net income for the quarter was $19 million, or $0.12 per diluted share, while adjusted net income was $23 million, or $0.14 per diluted share [21] Business Line Data and Key Metrics Changes - U.S. business sales grew by 10.5% to $229 million, with comparable store sales up by 6.2% driven by both transactions and average basket size [17][18] - Canadian business saw net sales increase by 3.4%, with comparable store sales up by 2.6%, reflecting improved selection and consumer response [18][19] Market Data and Key Metrics Changes - The U.S. market showed strong performance with a growing customer base that is younger and more affluent, contributing to increased spending [9][18] - In Canada, despite macroeconomic challenges, there was a sequential improvement in sales, indicating a positive consumer response to the company's value proposition [11][12] Company Strategy and Development Direction - The company plans to open 25 new stores in 2025, with new stores performing in line with expectations and contributing to long-term growth [6][13] - The focus remains on enhancing the customer experience through a compelling assortment and value, with a strong emphasis on data-driven decision-making [11][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities despite ongoing macroeconomic pressures, highlighting the importance of value in the current environment [10][16] - The company raised its revenue and earnings outlook for 2025 based on strong first-half results and continued momentum [7][25] Other Important Information - The company reported a strong balance sheet with $71 million in cash and cash equivalents and a net leverage ratio of 2.5 times at the end of the quarter [22] - The company repurchased approximately 2.7 million shares during the quarter, indicating confidence in its stock value [23] Q&A Session Summary Question: Can you elaborate on the cadence of the second quarter same store sales across the U.S. and Canada? - Management noted strong execution in the U.S. with increasing penetration in younger demographics, while Canada faced different challenges but showed improvement in selection and value [30][32] Question: What are the transitory headwinds to margin expected in the back half of the year? - Management indicated that increased selection in Canada and the conversion of Two Peaches stores are contributing to short-term margin pressures, but these are expected to normalize [50][56] Question: How do you see the pricing opportunity in the current market? - Management highlighted significant price gaps to discount retailers, providing an opportunity to gain market share while maintaining value [62][63] Question: Can you provide insights on labor costs and production efficiency? - Labor costs are expected to grow at a typical rate, while the company is focused on innovative approaches to improve production efficiency [78][80] Question: What is the outlook for real estate opportunities? - Management expressed optimism about the real estate pipeline, indicating high-quality deals and a favorable environment for expansion [72][76]

Financial Data and Key Metrics Changes - Total revenues in Q2 2025 increased by 1% to $142 million, while net revenues were approximately flat at $132.9 million compared to the same period in 2024 [11] - Net income decreased to $26.6 million or $0.52 per diluted share, down from $29.2 million or $0.57 per diluted share in the prior year [11] - EBITDA decreased by 7% to $37 million, with a margin of 27.8% of net revenues, compared to $39.9 million or 30.2% in the same period in 2024 [12] - Utilization in Q2 was 72.1%, down from 75.1% in the same period of 2024 [13] Business Line Data and Key Metrics Changes - The engineering and other scientific segment represented 85% of net revenues, with a 1% increase driven by demand in construction, automotive, and medical device sectors [15] - The Environmental and Health segment, representing 15% of net revenues, saw a 4% decrease due to lower activity in proactive projects in life sciences and chemical regulation services [16] Market Data and Key Metrics Changes - Demand for failure analysis expertise drove growth in dispute-related activities, particularly in construction, automotive, and medical device sectors [4] - Proactive engagements in the utilities sector were strong, while there was softer demand for chemical regulatory work [5] Company Strategy and Development Direction - The company is focused on capitalizing on market drivers at the intersection of safety, health, and the environment, with a strong emphasis on recruiting top-tier talent [8] - Engagements in transformative innovations, including distributed energy systems and AI applications, are seen as significant long-term growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate complex challenges and capitalize on growth drivers, particularly in safety-critical systems and advanced technologies [23] - The company expects revenues before reimbursements to grow in the low single digits for the full year 2025, with EBITDA margins projected between 26.5% and 27% [17] Other Important Information - The company is experiencing a return to headcount growth, with expectations of a 1% to 2% increase in technical full-time equivalent employees for Q3 2025 [18] - Capital expenditures for the full year 2025 are expected to be between $10 million and $12 million [21] Q&A Session Summary Question: How did the utilization play out in the quarter? - Management indicated that the decline in utilization was partly due to the July 4 holiday and a step down from strong utilization last year [26][27] Question: Can you discuss trends related to easing tariff uncertainty? - Management noted that clients are cautious due to tariff uncertainties, which has caused some delays in engagements, particularly in the chemical sector [28][30] Question: What are the growth rates in proactive and reactive sides of the business? - Growth rates were similar in both proactive and reactive sides, with litigation-related work growing 7% year over year [45][46] Question: How has the regulatory environment impacted demand? - Management acknowledged some delays due to the EPA's movement but stated that most work continues and clients are committed to their global product strategies [47][50]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $101.1 million, down from $129.4 million in Q2 2024, primarily due to the LabCorp transaction [20] - Total costs and expenses decreased to $119.3 million from $156 million year-over-year, contributing to an improved diagnostic operating loss of $18.2 million compared to $26.6 million in Q2 2024 [21] - Net loss for Q2 2025 was $148.4 million, or $0.19 per share, compared to a net loss of $10.3 million, or $0.01 per share, in Q2 2024 [26] Business Line Data and Key Metrics Changes - Diagnostics revenue included $24.9 million from oncology assets, with non-oncology business showing steady growth, particularly a 12% increase in 4Kscore volumes [20][21] - Pharmaceutical revenue increased to $55.7 million from $52.8 million in the previous year, driven by growth in Spanish and Mexican markets [22] - R&D expenses rose to $29.8 million from $23.7 million, reflecting increased investments in MODEX development programs [25] Market Data and Key Metrics Changes - BioReference's testing volume grew by 1.4% in 2025 compared to the previous year, with the 4Kscore test volume increasing approximately 12% year-over-year [13][20] - The Latin American business and Irish Contract Pharmaceutical Development and Manufacturing Unit continued to perform well, with increasing revenue and expanding margins despite foreign currency headwinds [7] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through strategic capital deployment, partnerships, and asset sales, with a $200 million stock repurchase program in place [7][8] - The sale of oncology assets to LabCorp is expected to enhance BioReference's focus on core testing operations and improve financial performance [5][9] - The company aims to achieve cash flow breakeven and positive cash from operations in 2025, with expectations for the remaining BioReference business to reach profitability [21][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic initiatives and operational efficiencies being implemented, which are expected to yield significant cost savings [21][28] - The company anticipates closing the LabCorp transaction later this year, which will provide substantial cash inflow and further enhance operational focus [27][28] - Management highlighted the importance of ongoing R&D investments and collaborations to drive future growth, particularly in the pharmaceutical segment [25][73] Other Important Information - The FDA granted approval for a supplemental application for the 4Kscore test, which is expected to open new market opportunities [12] - The company has sufficient capital to support R&D efforts, with funding from strategic partners and non-dilutive sources [7] Q&A Session Summary Question: Insights on ANGELLA prescriptions and profit share - Management noted improvements in U.S. market prescription trends and expects sales to pick up in the remainder of the year [30][32] Question: EBITDA margin tracking and growth expectations - Management indicated ongoing improvements in the Diagnostics segment and expects to achieve cash flow positive status this year [33][34] Question: Differentiation of obesity treatment efforts - Management highlighted the unique metabolic benefits of their GLP-one glucagon receptor dual agonist and the convenience of oral formulations [39][41] Question: Size of patient population for obesity and NASH - Management confirmed focus on patients with biomarkers indicating obesity and NASH for upcoming Phase I studies [47][48] Question: BARDA revenue and future capital allocation - BARDA revenue for the quarter was $6.5 million, with expectations of $30 million to $35 million for the year [61][62] - Management discussed plans for capital allocation, emphasizing R&D investments and share repurchase programs [64][66]

Financial Data and Key Metrics Changes - The company ended Q2 2025 with cash, cash equivalents, and investments totaling $237.9 million, which is expected to fund operations into 2027 and at least 12 months beyond the first Phase III top-line data readout for MM120 ODT and GAD [20][21] - Research and development expenses increased to $29.8 million for 2025 from $14.6 million in 2024, primarily due to the MM120 ODT program [20][21] - General and administrative expenses rose to $11.1 million for 2025 compared to $9.8 million for 2024, attributed to increased headcount [20][21] Business Line Data and Key Metrics Changes - The company is currently on track with enrollment in three pivotal Phase III trials for MM120 ODT, targeting generalized anxiety disorder (GAD) and major depressive disorder (MDD) [6][10] - The Phase III trials are designed to build on the successful Phase 2b results, with a focus on real-world implementation and efficient treatment models [7][10] Market Data and Key Metrics Changes - In the U.S., over 60 million people suffer from GAD or MDD, with more than 50% of GAD patients also experiencing MDD, indicating a significant market opportunity [6][7] - Market research indicates that 78% of interventional psychiatric providers believe psychedelic therapies will transform the treatment landscape for GAD and MDD [9] Company Strategy and Development Direction - The company aims to provide a differentiated, novel best-in-class treatment option for GAD and MDD, leveraging the unmet medical need and large commercial opportunity [6][7] - The strategic approach includes building organizational capacity and making strategic hires to support both near-term execution and long-term growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing pivotal trials and the potential of MM120 ODT, highlighting the FDA's breakthrough therapy designation as a significant advantage [17][22] - The company anticipates a catalyst-rich year in 2026 with top-line readouts expected from the ongoing trials [11][22] Other Important Information - The new CFO, Brandi Roberts, brings over 25 years of financial leadership experience in life sciences, which is expected to enhance the company's financial strategy during this growth phase [11][20] - The company is focused on enhancing investor communications and leading its financing strategy to ensure sufficient capital for executing priorities [20] Q&A Session Summary Question: Thoughts on data from other psychedelic companies - Management expressed excitement about the field and highlighted the significance and durability of their Phase 2 data compared to others [24][26] Question: Powering assumptions and dropout rates for studies - Management confirmed a 90% power to detect a five-point difference, with a 15% dropout rate anticipated, and emphasized the importance of open-label treatment to encourage retention [28][30][32] Question: Expectations for real-world usage and commercialization - Management discussed the design of the extension phase to observe long-term effects and establish real-world treatment patterns [33][35] Question: Enrollment trends for the VOYAGE study - Management did not provide exact enrollment numbers but confirmed that interim analysis would occur after half of the patients complete the study [39][41] Question: Durability of efficacy beyond twelve weeks - Management indicated that while formal observations beyond twelve weeks were not conducted, previous data suggested potential long-lasting effects [47][49] Question: Updates on strategic collaborations and reimbursement - Management stated that discussions with payers are ongoing, but it is premature to provide specific reimbursement details [62] Question: IP position and strategy - Management expressed confidence in their IP strategy and the protection of innovations, which is crucial for potential partnerships [80][82] Question: Financial resources for pivotal trials - Management highlighted the efficiencies built into the Phase III studies and expressed confidence in their cash position to support operations [86][88] Question: Perceived benefits of less time in the clinic for psychedelic therapeutics - Management emphasized the importance of the dynamics of MM120 and its potential to stand out in the market due to its efficacy and durability [90][92]

Financial Data and Key Metrics Changes - The company reported a Q2 revenue growth of 12% year over year, primarily driven by subscription revenue growth accelerating to 16% year over year [29] - Adjusted EBITDA grew 63% year over year, reaching an all-time record margin of 24% in Q2 [7][33] - Non-GAAP EPS grew 45% year over year to $0.76 per diluted share [33] Business Line Data and Key Metrics Changes - Subscription revenue now makes up 81% of total revenue, with enterprise AI revenue growth accelerating to 42% year over year [6][30] - Enterprise AI bookings more than tripled year over year in Q2, contributing significantly to overall growth [7][20] - The highest quarterly total ACV bookings in two years were achieved, excluding a previous mega deal [20] Market Data and Key Metrics Changes - Strong momentum was observed in the healthcare sector, with two large healthcare customers extending contracts and significantly increasing their anticipated ARR [8][27] - The company saw significant traction with technology partners, including Salesforce and Google Cloud, leading to increased bookings and pipeline [15][16] Company Strategy and Development Direction - The company is focused on transforming its business to drive top-line growth and bottom-line profitability, with a strong emphasis on AI solutions [5][17] - The launch of new AI capabilities, such as AgenTik AI agents, is aimed at enhancing customer experience and operational efficiency [10][11] - The company is strategically deemphasizing telecom usage and professional services to focus on high-margin subscription revenue [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong pipeline and RFPs at elevated levels [22] - The company anticipates minimal seasonality for the remainder of the year, based on discussions with top seasonal customers [36] - There is a commitment to achieving the Rule of 40 plus by 2027, driven by double-digit revenue growth and continued margin expansion [37] Other Important Information - The CEO announced retirement plans, with a search for a successor underway [4][5] - Brian Lee was appointed as the new CFO, with additional changes in the leadership team to enhance operational efficiency [18] Q&A Session All Questions and Answers Question: Sustainability of AI business growth - Management highlighted that enterprise AI bookings for net new logos doubled year over year, and installed base bookings quadrupled, indicating strong momentum and sustainability [42] Question: Deal elongation and international market momentum - Management noted that there was no significant elongation in deals this quarter, and strong growth was observed through international partners [47] Question: AI readiness across customer base - Management indicated that while many customers are ready to scale AI, a common hurdle is ensuring their data is in order to maximize AI deployment [81] Question: AI capabilities and competition - The company aims to be the best in AI for customer experience, focusing on deepening its capabilities rather than broadening into unrelated areas [76] Question: Vertical performance and AI adoption - Financial services, healthcare, and retail are identified as top verticals for AI adoption, with these sectors having better data readiness [88]