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๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ
โข Non-GAAP EPS: $0.29 (Est. $0.04) โ , vs. -$0.31 YoY.
โข Revenue: $326.1M (Est. $326.97M) โ, -4.1% YoY.
โข GAAP EPS: -$0.14 (vs. -$0.84 YoY).
โข Non-GAAP Gross Margin: 34.7%, +1,590 bps YoY.
โข Non-GAAP Operating Income: $23.9M (vs. -$23.8M YoY).
โข Adjusted EBITDA: $31.8M (vs. -$14.1M YoY).
โข Free Cash Flow: $7.8M.
โข Net Cash & Investments: $260.9M.
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๐ฏ ๐๐ฎ๐ข๐๐๐ง๐๐
โข Q4 Revenue: $245Mโ$275M, midpoint $260M (Est. $317.74M) โ.
โข Q4 Non-GAAP Gross Margin: 17%โ21%.
โข Q4 Non-GAAP Operating Expenses: $87Mโ$91M.
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๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข Q3 adjusted EPS beat consensus by $0.25, while revenue was essentially in line with estimates.
โข Q4 revenue guidance midpoint is ~18.2% below consensus, implying a ~20.3% sequential decline.
โข Q3 gross margin benefited from $36M in IEEPA tariff-related refunds, a significant non-recurring tailwind.
โข Non-GAAP gross margin improved to 34.7% from 18.8% YoY, but Q4 guidance implies a sharp normalization to 17%โ21%.
โข GAAP operating loss narrowed to $1.9M from $35.2M YoY.
โข Recorded its fifth consecutive quarter of positive free cash flow.
โข Management is implementing additional cost reductions amid weaker near-term demand.
โข Nexis product momentum and increasing energy storage adoption remain key growth initiatives.
โข Accelerating development of solid-state transformer (SST) technology for AI data center power infrastructure.
โข Live SST demonstrations are generating increased interest from potential partners and customers.
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๐ฌ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐๐ซ๐ฒ
โAs near-term market uncertainty persists and given reduced revenue expectations for the fourth quarter, we are taking decisive steps to reduce costs, sharpen our focus, and support profitability amid softer demand.โ