0001039399-26-000023
SEC filingRecord quarterly revenues driven by HBM and Foundry & Logic, gross margins improved despite $22.9M restructuring charges.
Revenues for Q1 2026 reached a record $226.1 million, up 32.0% from $171.4 million in Q1 2025. The increase was driven by strong demand in Probe Cards, particularly DRAM (up 69.7%) and Foundry & Logic (up 30.4%), partially offset by a 19.9% decline in Systems. Gross profit rose 34.5% to $86.8 million, with gross margin improving 70 bps to 38.4%. This improvement occurred despite $21.5 million in restructuring charges recorded in cost of revenues and a 1.4% tariff headwind. Operating income soared to $16.7 million (7.4% of revenues) from $3.4 million (2.0%) in the prior year, aided by revenue scaling and cost controls. Net income increased to $20.4 million from $6.4 million, benefiting from higher operating income and lower tax expense. The effective tax rate fell to 2.1% from 14.4% due to stock-based compensation tax benefits.
Probe Cards revenue jumped 45.2% to $198.3 million, driven by Foundry & Logic (+30.4%) on networking and HPC designs, and DRAM (+69.7%) on HBM demand for generative AI. Flash grew 73.1% but is expected to shrink post-restructuring. Systems revenue declined 19.9% to $27.9 million, as legacy probe station sales decreased during the transition to the Triton CPO testing platform; thermal system sales increased. Segment gross margins improved for Probe Cards (50.5% vs 37.8%) but fell for Systems (38.0% vs 44.5%), reflecting utilization and volume impacts.
Management expects the restructuring plans (facility consolidation in Carlsbad and Baldwin Park) to better align cost structure and support gross margin improvement toward its target financial model. The new Farmers Branch, Texas facility is expected to begin production late in Q4 2026, with ramp to initial target levels over FY27. No numeric guidance was provided, but the company highlighted continued focus on gross margin initiatives and strategic positioning in HBM and CPO markets.