Second Half Guidance
Q: What's driving your second half sales outlook?
A: Nathan Winters explained that the second half outlook is based on current order velocity and they are not assuming any mega deployments due to a lack of firm customer commitments. " They expect Q3 to look similar to Q2, which resembles Q1 in run rate and trajectory. " " Growth in the second half is primarily driven by lapping prior destocking activity rather than a significant uptick in large deals. " "

Recovery in Key Markets
Q: Are you seeing recovery in manufacturing and T&L?
A: William Burns stated they are not yet seeing recovery in manufacturing and transportation and logistics (T&L). " T&L customers are still absorbing capacity built during the pandemic and optimizing operations. " Manufacturing is impacted by broader market uncertainty, but they view it as a longer-term opportunity. " "

Margins and Cost Actions
Q: Why is adjusted EBITDA margin guidance lower for Q2?
A: Nathan Winters explained that the Q2 adjusted EBITDA margin is guided slightly above 19%, down from 19.9% in Q1, entirely due to seasonality in their retail software business. " They expect margins to uptick through the year as cost actions take effect and seasonal spending decreases. " "

Pipeline and Visibility
Q: How does your pipeline visibility compare to six months ago?
A: William Burns noted that while they've seen modest improvement in large order activity, particularly in mobile computing and retail, visibility remains uncertain due to early-stage deals and cautious customer spending. " Nathan Winters added that deals are in earlier stages of the funnel than preferred at this point in the year. "

Capital Allocation Plans
Q: Any plans for buybacks or M&A given improving cash flow?
A: Nathan Winters indicated they plan to prioritize debt paydown with their $600 million of free cash flow, but will reassess buybacks as the year progresses, particularly in the second half. " " William Burns stated that their M&A philosophy remains the same, focusing on adjacent and synergistic assets, but there's a higher bar given the current macro environment and debt leverage. "

Asia-Pacific Performance
Q: What's impacting your performance in China?
A: William Burns explained that Asia-Pacific underperformed due to declines in China, which is expected to have a longer recovery. " They are encouraged by bright spots in retail and larger orders in Australia and New Zealand, and see opportunities outside China in Southeast Asia and India. "

RFID Business Trends
Q: How is your RFID business performing?
A: William Burns highlighted that RFID is a growing opportunity across multiple verticals beyond retail apparel, including track and trace, parcel tracking in T&L, and manufacturing. " They've seen strong growth across their RFID portfolio over the past few years and hold the broadest set of RFID solutions in the market. "

Channel Inventory Levels
Q: Are channel inventories normalized?
A: Nathan Winters stated that global channel inventories are normalized to support current demand and are within expected ranges. " There are no meaningful impacts expected from changes in distribution inventory levels in the quarter or full-year guidance. "

Healthcare Market Progress
Q: How is your healthcare market progressing?
A: William Burns mentioned that healthcare is impacted by tighter budgets and margins, but they continue to drive productivity solutions that enhance efficiency. " They see home healthcare as an opportunity and are optimistic about customer engagement, though they want to see more orders materialize. "

Mobile Computing Refresh Cycle
Q: When do you expect the refresh cycle in mobile computing?
A: William Burns noted that the mobile computing refresh cycle is beginning, first in retail and e-commerce. " Customers have started to absorb capacity and are initiating projects, but deployments are more measured. " They expect a measured overall recovery, with refresh cycles varying by customer. "