Revenue

Q2 2025

$505 million – $555 million "

$475 million – $525 million "

lowered

EPS

Q2 2025

$0.22 to $0.42 "

$0.17 to $0.37 "

lowered

Tax Rate

Q1 2025

low to mid‑20s percentage range "

no current guidance

no current guidance

Revenue from China

Q1 2025

Expected to be a little bit lower into Q1 and flat for Q1/Q2 "

no current guidance

no current guidance

Overall Revenue Trend

Q1 2025

First half expected to be somewhat flat with hopes for a higher second half "

no current guidance

no current guidance

China Business Exposure and Performance

Q2: Exposure of about 10% with strong domestic China revenue. " " Q3: Increased China revenue from direct sales and robust domestic market strength. " " " Q4: Emphasis on the “China for China” strategy amid ramp issues, softening demand, and inventory challenges. " " "

Q1 2025: China accounts for less than 10% of revenue, with softening demand and technical delays (notably a $12 million shortfall partly tied to China), while the “China for China” strategy continues as a mitigating tool. " " " " " " "

Recurring with evolving challenges: The topic is consistently discussed; however, Q1 2025 shows a more cautious tone with technical challenges and softer demand, even as the strategic approach remains in place.

Operational Efficiency and Cost Management

Q2: Focus on site optimization, automation, and balanced operating expenses. " " Q3: Reported margin improvements owing to higher volume and effective expense management. " Q4: Emphasized comprehensive reviews of expense structure, cost control, and efficiency focus despite lower margins. " "

Q1 2025: Increased operating expenses (rising from $55.3M to $59.4M) driven by lower volumes and additional audit-related costs; initiatives include headcount and footprint reviews and a localized supply chain reconfiguration. " " " "

Consistent focus with heightened pressure: While cost management remains a priority, Q1 2025 highlights increased expense pressures and continued adjustments in the face of lower demand.

Trade, Tariff, and Geopolitical Risks

Q2, Q3, Q4: No specific discussion or mention of these risks in previous periods. " " "

Q1 2025: A detailed discussion emerges covering tariff costs (to be passed to customers), a localized supply chain strategy, active geopolitical monitoring, and the “China for China” approach to mitigate US-China counter-tariff risks. " " " " "

New Topic: This topic is newly introduced in Q1 2025, expanding the discussion to include detailed risk management measures not previously highlighted.

Customer-Specific Operational Issues

Q3: Mention of internal issues and quality problems with a key China customer causing lumpiness in revenue. " Q4: Ramp issues with a significant customer in China identified as the primary near-term challenge. " " Q2: Largely no discussion in Q2 [–].

Q1 2025: Broader discussion encompassing technical delays with customers across multiple regions (Asia, Europe, and China) which led to missing revenue guidance by about $12M; emphasis placed on these being customer-specific issues that are expected to resolve. " " "

Recurring with expanded scope: The topic is consistently addressed, but Q1 2025 expands the geographic scope and impact of customer-related issues, signaling heightened concern over customer delays.

Market Recovery and Revenue Rebound Potential

Q2: Signs of recovery noted through inventory rebalancing, increased shipments, and early AI demand. " Q3: Strong indicators from AI infrastructure investments and regional strength (especially in China) promised robust 2025 growth. " " " Q4: Acknowledged demand softness with expectations of a second-half rebound, though near-term revenue expected to be flat. " " " " "

Q1 2025: Reports a slower-than-expected semiconductor recovery; revenue has softened (products revenue dropped from $503.5M to $457M) and Q2 guidance is modest ($475M–$525M), yet long-term optimism remains with transformative megatrends in view. " " " "

Recurring with short-term caution: While previous periods showed upswing signals, Q1 2025 reflects near-term weakness counterbalanced by sustained long-term optimism.

AI-Driven Investment and Technological Advancements

Q2: Highlighted strong AI demand driving investments in capacity, advanced packaging, and semiconductor innovations. " Q3: Robust discussion on AI infrastructure build-outs, technology breakthroughs (CMP, AI-enabled devices), and diversified solutions supporting AI growth. " " Q4: Emphasized AI as a key growth driver with benefits from advanced node transitions and high bandwidth memory expansion. " " "

Q1 2025: No specific reference or discussion of AI-driven investments or technological advancements was provided [–].

No mention in current period: Previously a key growth topic, AI investment and related technology advancements were not addressed in Q1 2025, suggesting a potential shift in focus or timing.

Product Mix, Margins, and Profitability Pressures

Q2: Detailed discussion on increased products and services revenue, with stable margins (total gross margin around 17.7%) and modest operating margin improvements. " Q3: Emphasis on improved product mix, higher volumes helping margins and noted foreign exchange and tax headwinds. " Q4: Analysis of margin compression due to lower high-margin China contributions and increased product revenue. " "

Q1 2025: Margins are under pressure—with total gross margin at 16.7%, products gross margin declining (from 15.2% to 14.9%), and operating expenses rising (11.5% vs. 9.8%) leading to lower operating margins; emphasis on softening demand and cost challenges. "

Recurring with increased pressure: Consistent discussion of product mix impacts, but Q1 2025 reveals further margin compression and cost pressures, underscoring persistent challenges in profitability management.

Semiconductor Market Cyclicality and Demand Trends

Q2: Indicators such as inventory rebalancing, increased high-performance chip shipments, and robust wafer fab equipment (WFE) growth forecasts hinted at a recovery. " Q3: Emphasized cyclical nature driven by both technology and capacity factors, with strong AI-induced demand and regional spending (including Malaysia and China). " " " Q4: Acknowledged softening demand and cyclicality with expectations for a recovery in the second half of 2025. " " "

Q1 2025: The semiconductor cycle is described as continuing its downturn with softening demand (e.g., revenue drop in products), slower-than-expected recovery, and expectations that revenue will remain flat in the near term; however, long-term growth remains anchored to megatrends such as AI and capacity investments. " " " "

Recurring with moderated near-term optimism: The cyclical nature is consistently discussed; Q1 2025, however, presents a more cautious short-term outlook amid ongoing market softness while keeping a long-term positive view.