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Jeffrey Jones: Thank you, Luis. Before reviewing the first quarter results and providing second quarter guidance, please note that my comments refer to non-GAAP figures. Details about non-GAAP financial measures, including GAAP to non-GAAP reconciliations and other disclosures are included in the earnings release and investor presentation on our website. For Q1 2026, revenue exceeded midpoint of guidance at $125.1 million. Recurring revenue driven primarily by consumables and typically more stable than systems revenue represented 60% of total revenue. No customer accounted for more than 10% of total sales during the quarter. Gross margin was 46.5%, above guidance, primarily reflecting a more favorable mix as recurring revenue exceeded our forecast. Operating expenses were higher than guidance at $55 million, reflecting our decision to scale resources to support the rapid increase in high-performance compute opportunities. This included accelerated spending on design materials as well as incremental engineering and field support to fulfill production orders and complete new opportunity qualifications. Net interest income after interest expense and a small foreign currency loss was approximately $2.1 million. The Q1 tax provision was lower than guidance at $4.8 million. Now moving to the balance sheet. Cash and investments increased approximately $5 million during Q1 to $489 million, and cash from operations was $10 million. No stock repurchases were completed during the quarter. Total debt is $305 million and includes $288 million from the Q4 2025 convertible debt offering. Capital expenditures were approximately $2 million, mainly for facility improvements and IT equipment. We're targeting total capital expenditures to be about 2% of revenue in 2026. Looking ahead, we expect Q2 revenue to increase 15% sequentially and 34% year-over-year to approximately $144 million, plus or minus $7 million. The increase is driven by demand tied to the ramp in high-performance compute opportunities and continued recovery in automotive and industrial segments. We're increasing our full year 2026 revenue outlook for growth over last year of 20% to 25%. Q2 gross margin is projected to be approximately 44%. For the full year 2026, we project gross margin in the mid-40% range as we ramp our supply chain and production capacity to support the rapid business expansion in high-performance computing customers. Operating expenses are expected to be lower than Q1 at about $53 million. We intend to continue investing in resources to capitalize on the growing list of HPC opportunities, and we expect quarterly operating expenses through the balance of the year to remain in the low $50 million range, consistent with our Q2 guidance. Net interest income in Q2 after interest expense and foreign currency impacts is projected to be approximately $2 million at current interest rates. The Q2 tax provision is expected to be about $5.3 million, and diluted shares are projected to be approximately $52.6 million, including 4.2 million shares attributable to the convertible debt. And of that amount, 3.3 million shares will be fully offset by the capped call but are required for U.S. GAAP diluted EPS calculations. In summary, our operational focus for 2026 is to support R&D investments and production ramp needed to secure multiple design wins in the compute market, including AI data center infrastructure, HBM memory and physical AI applications while progressively increasing free cash flow generation. That concludes our prepared remarks, and now we'll open the call to questions.

Operator: [Operator Instructions] Our first question comes from Brian Chin with Stifel.

Brian Chin: So a lot here, but in a good way. Maybe firstly, breaking down the guidance for 2Q, 15% Q-on-Q growth. Can you maybe give us a sense how much of that is the ramp in new HPC customer business versus maybe ramp in the broader base business, if that makes sense? And also tied to that, of the maybe $100 million, if you were to sign up no more new customers through the end of the year, that $100 million, how much of that still remains to be revenue through the second half?

Jeffrey Jones: Yes. So at least on your first point here, Brian, the quarter-over-quarter increase in HPC systems revenue was about $10 million. So it's just under half of our increase quarter-over-quarter. And that puts us then for HPC at least systems revenue in the first half of 2026 at roughly about $30 million.

Luis Müller: And I think that pretty much answers the second part of the question of what's left for the second half, right there?

Brian Chin: I can do that math. Okay. That's helpful. And in terms of the -- how are you thinking about -- and this maybe could mature over time around higher volume, but how should we think about the system margin contribution of gross margin relative to the overall blended average company?

Jeffrey Jones: Yes. What we saw in Q1 was a gross margin split of roughly 50% on recurring, roughly 40% on systems. So I think we're going to hold that for the balance of the year. The systems revenue percentage will increase, while systems revenue is going to increase faster than the recurring. And so that is why we see the 46.5% gross margin in Q2 hitting a little bit of a headwind in the second half. And so we think we're going to end the year somewhere in the mid-40% gross margin.

Brian Chin: Okay. Great. And then maybe one other question. You talked about sort of this pipeline where you have 3 customers. Was that $100 million kind of the aggregation of this year? Or is that over a multiyear horizon?

Luis Müller: No. The qualified $100 million is sort of this year's spend from these customers. Now we're -- like I said, we're probably going to be getting a portion of that this year, not the entirety of it this year.

Brian Chin: Annualized sort of potential. Luis?

Luis Müller: Yes, yes.

Brian Chin: With the other 5 customers, are they kind of equal size within that $150 million to $200 million? Or how would you sort of gauge which ones are like further along or less far along in terms of ones that could be contributors even to the back end of this year?

Luis Müller: Yes. They're not all equal sized, Brian. I mean we got kind of a $10 million to $40 million spread depending on the customer on an annual basis the way we see it. We expect to be getting some qualifications completed by early Q3. The question is, do we then have an opportunity to get orders and participate on demand still in 2026. Does our lead times support that as well or not? And so it's hard to call right now if it's going to end up hitting revenue in Q4, plus obviously, revenue recognition as well. You've got to account for accounting rules or if this is going to end up still in more like early 2027 at this point.

Brian Chin: Great. Great. And then maybe a good problem to have here. But in terms of where lead times for sort of the thermal test handler, T-Core Eclipse are, where do you think you can kind of keep them this year? And then maybe also, like you said, inform what the revenue could be this year versus what may have to be captured next year?

Luis Müller: So we are operating at about a 14 weeks, I should say, cycle time instead of saying lead time on handlers right now on our thermal handlers. I think a bit of the challenge is if you get a $30 million order, not all of it's going to ship in 14 weeks, as you can imagine. It's spread over several weeks, several months. And as we start layering additional customers, we are working hard here to open that manufacturing pipeline, both from a supply chain side, meeting regularly now with suppliers and understanding who are the choke points, particularly for our thermal heads. As well as internally, we are hiring resources in Malaysia. We're looking at relay out of the facility in Malaysia to open up more floor space. So I can tell you 14-week cycle time, but lead time really largely depends on the size of the backlog we have in front of it.

Operator: Our next question comes from David Duley with Steelhead Securities.

David Duley: Congratulations on nice results, particularly the outlook. I was wondering, as far as your core business goes, all of your customers on the conference calls are really talking about how their AI data center businesses are ramping at very rapid growth rates, 50% to 100%. And I get the sense that, that kind of filled all of the excess capacity that might have been pointed from those customers and other end markets. And so I guess, are you hearing that from your customers that essentially that their AI businesses have kind of filled up their utilization rates and they're coming in for more larger volume purchase orders going forward?

Luis Müller: What I'm seeing more, Dave, is actually a bit of a pivot towards CPU, large CPU demand, ASIC, accelerators. We're seeing also network processing demand. Up until recently, a lot of it seems to be very focused on a singular or largely a singular customer driving a lot of GPU capacity in the industry. As of maybe a quarter ago, a little bit more than a quarter ago, that seems to be spreading out more broadly here as inference starting to pick up and sort of the realization we need more computing power going along with the GPU power that's being deployed. That's more of what I'm seeing. It's sort of that spread out of demand for different types of processors and network processors inclusive.

David Duley: Okay. That kind of leads me to my next question is I think you used the term XPU, but particularly CPUs, GPUs, XPUs, CPUs, whatever you want to call them, right, of all sorts, all have high voltages, create a lot of heat. So all of these end market customers that you hear about from the custom ASIC guys to the GPU guys to the CPU guys, all of them need some sort of temperature-controlled handling equipment for their processors, correct?

Luis Müller: That is correct.

David Duley: And is that the market that you're referring to when you talk about the $750 million TAM, is that kind of aggregating what most of these customers' thermally controlled temperature handler demand is? Or how do you come up with that $750 million?

Luis Müller: Yes. By the way, we're not calling it necessarily a TAM. We're calling it more like a SAM to be fair, because we have a pretty defined list of customer and customer device classes that we're tallying up to $750 million. I think if we were to talk about a TAM, it's likely a bigger number, and we're not attempting to guess that. So we're not going there. We're being very targeted here to the list of 15 customers that we have tallied and customer applications that we have tallied up that comes up to the $750 million. That's what it is. It's a very targeted list. We know what these customers have for buying pattern this year, and that's why we come up with that number. We also understand that some of these customers are ramping. So I guess the expectation is that, that SAM itself could be bigger next year. But like I said, we're not trying to guess the TAM, the total available market. We're just guessing here from customer information, what we see for their spending this year.

David Duley: Okay. And then final question for me is, could you just elaborate a little bit more on the silicon photonics and what exactly the application is you address there? And how big a piece of business that could be, let's say, next year, I realize because we're just starting off now. But maybe just elaborate a little bit more on what you're seeing there.

Luis Müller: Sure. That is really, I would call it, a beachhead business at this point. We sold a number of interface, we call it contactors, right, interface products here for silicon photonic application at one of the large accounts. There's really 2 major drivers in the industry, I think, today and a few others. But these are interface products. So you're talking about sort of $10,000 or so contactors that we sold several of. We are working to provide solutions that include our handler with the contactors. But I'm not going to venture to guess what kind of revenue opportunity for 2027 that is at this point. It's not included -- not really included in our $750 million at the moment.

David Duley: Okay. But the point is you kind of got your foot in the door with the test contactors and hopefully, you can sell them a piece of capital equipment as well. That's going to be a big market.

Luis Müller: That is correct.

Operator: Our next question comes from Craig Ellis with B. Riley Securities.

Craig Ellis: Congratulations on the revenue performance in the quarter and the outlook, guys. Luis, I wanted to start off just by understanding the specific drivers to the increase in HPC system revenues this year, looks like about a $20 million increase at the midpoint of the prior to the new expected range. Can you just detail what's going on inside of that?

Luis Müller: Yes. Yes. Thanks, Craig. Thanks for the question. We -- I think we finished the -- we're very successful in the qualification of the Eclipse at one particular account that sort of looked like, okay, we could capture a bigger share of the revenue in 2026. So we qualified, I guess, in time to catch the next round of orders. And that just increased the size of the pipeline for this year. That's just simply that.

Craig Ellis: Okay. And then nice to see orders up 62% quarter-on-quarter. Can you help us with some color on where you're seeing that strength? Is there a preponderance towards OSAT versus IDM? And do you expect to ship all those systems this year? And any color on linearity would be helpful.

Luis Müller: Yes. When we look at orders here, it's actually roughly -- depending on the market segment you pick, it's about 30%, 40% increase year-over-year. There's one segment in particular that is driving, not surprisingly, given what we're talking about here, it's computing. That's up -- about 211% year-over-year. That's that's pretty much what's driving the business. Now I do have to say the Industrial segment is picking up a bit as well. That is also strong, came out pretty decently strong in the first quarter.

Craig Ellis: Okay. And regarding shipment timing for all those orders?

Luis Müller: Yes. So we see a ramp in Q3. And of course, some of that will fall into Q4 as well.

Craig Ellis: Got it. And then just going back to the point that the company is making on Page 7 of the deck where we've got the expanded AI computing pipeline with almost $0.5 billion in engagement and then $150 million to $200 million in qualification. Can you provide any color how quickly we can move some of that engagement activity into qualification and then through qualification, how much of that is really something that can convert in 2026 versus what you might have your eye on for 2027, guys?

Luis Müller: I think at this point, Craig, it would be safe to say that we're working to complete the qualification of about $200 million opportunity in 2026. As I mentioned earlier on a previous question, we'll see if we can get some of that revenue also in 2026, but largely 2027. On the balance here, the remaining $450 million, $500 million, those engagements are likely to move into call later this year, beginning of '27. I don't expect it to be any sooner than that.

Craig Ellis: Okay. So a way we could look at it would be, you have an opportunity to convert a significant amount this year, but the larger percentage would be something that you could convert next year. Is that right, Luis?

Luis Müller: That is right. That is right. And qualification of these things take a good 6 months time frame and then from there, production ramp. I do have to point out a little bit here, too. Largely, the recurring portion of this is going to come out about a year after shipping systems, right? So you got to remember, our systems ship with about a year's worth warranty. Once that expires, you start getting the spares, the service. These devices typically have 18 months lifetime anyways. Thereafter, you start getting new kit orders, you start getting potentially new thermal head orders for upgrades. It's high-performance computing. So those thermal heads are very specific to the application. Maybe you can use it across 2 generations, but the thermal heads themselves eventually need to replace. So within a 12-month time frame, we should start seeing the recurring revenue kicking in. And the recurring revenue, maybe it wasn't really clear on the slide here, is included in that $500 million bucket as well.

Craig Ellis: Okay. So you've got a nice one to with the second punch included in the chart.

Luis Müller: Yes.

Operator: Our next question comes from Robert Mertens with TD Cowen.

Robert Mertens: This is Rob Mertens on for [Krish Shankar]. So I believe last quarter, you had highlighted a krypton inspection metrology system order for an automotive customer had transitioned into -- you've seen some positive benefit in your inspection software subscription. And then also mentioning all the additional software opportunities during this March quarter. I'm just trying to wrap my head around how we should think about the potential software opportunities throughout your business, if there's a specific platform or area that the software opportunity might be higher?

Luis Müller: Yes, sure, Rob. The software right now is very much going kind of hand-in-hand with our sort of test handlers and inspection systems. So basically, the automation pieces, okay? We have an element of software we call PACE inspection goes in with the inspection platforms. It helps optimize yield of the inspection systems. And then we got a PACE prescriptive that goes along with both test handlers as well as inspection metrology systems that help optimize overall equipment efficiency, optimize maintenance, predictability and output of the factory. So if you think about that software base, we are now currently at an ARR, annual recurring revenue here of about $1.2 million. So this is what we have sort of in bookings for annual subscription of software. the attachment rate of that subscription, it's still pretty low. It's really about 1.3% of our systems have a software subscription attached to it. So a low number, so plenty of room to grow. But as I pointed out here in the script, the value of that software is pretty big because if you get it in, like we got here in the example given $20 million system order, $330,000 of software annual subscription through the lifetime of that product, that's about a $5 million of recurring revenue we're going to collect through the lifetime of the product at a pretty high margin, right? So it's still a small piece of the business. It is a growing piece of the business. It's growing fast. I think we're expecting it to be close to $3 million in revenue this year. That's more than 200% growth year-over-year. But it does carry a really nice lifetime value recurring component to it that adds to our overall recurring business.

Robert Mertens: Got it. That's very helpful. And then just you mentioned some incremental strength in the orders from automotive and industrial markets this quarter. I'm just trying to wonder how you expect that business, the auto handler business to pick up in the back half of the year? And then maybe if I can just squeeze one last one in, if there's any typical seasonality in the RF test business.

Luis Müller: Okay. So on the first portion, I think if I refer to how Jeff answered the question of what's driving the incremental quarter-over-quarter here in Q2, about half of our Q2 increase in revenue is driven by noncompute markets, right? And -- that is fundamentally industrial and to a small degree, auto, but fundamentally industrial. We're seeing that pickup right now. Another interesting data point here, the industrial utilization -- test utilization at the end of Q1 was 79%. So it's right there at that capacity by threshold of 80%. Industrial is doing well. It had a good increase in orders quarter-over-quarter and about half of the revenue growth quarter-over-quarter again going into Q2. On the RF side, to your question, we're also seeing a bit of a pickup on RF tester orders, sales in the second quarter. There is typically a seasonality. That seasonality tends to be late year, like Q4 to early Q1 when RF picks up. It's a little late here. We're going into Q2 and seeing a bit of a pickup in RF. I can't completely explain that to you why. And then obviously, there are technology transition points that are major drivers in RF with one coming up in the next 18 months or so associated with FR3 or what's commonly known as 6G.

Operator: Our next question comes from Christian Schwab with Craig-Hallum.

Christian Schwab: Congratulations on giving multi-quarter guidance again. My other question has to do with M&A. Previously, we've talked about acquisitions, particularly possibly in recurring revenue streams that you were looking at and targeting. Can you give us an update on your thoughts on M&A currently?

Unknown Executive: Christian, Matt Hutton here. Yes. So I mean, we continue to look at opportunities, as you can imagine, from what Luis and Jeff highlighted, mostly opportunities in the reoccurring space are growth areas. We'll continue to be disciplined, look at buy versus build analysis and look for opportunities. Unfortunately, a lot of the tailwinds that some of these companies are receiving that we're receiving, they're also receiving. So a lot of valuations remain elevated, but we'll continue to be disciplined and look at opportunities in our growth areas.

Christian Schwab: Great. And then Luis, given -- I know we're moving now multi-quarter guidance here for '26. But given all the positive dynamics as well as future orders transition to revenue in '27 and '26. Should we assume if all things remain consistent that you'll grow in '27, your top line at the same rate that you expect to grow in '26?

Luis Müller: We certainly expect growth in '27. I mean we have that in qualification bucket there of $150 million to $200 million that will add to 2027. Also pretty encouraged with overall test utilization getting very close to that 80% mark. So all things being equal, yes, growth in '27. At what rate, we haven't tried to pencil that in yet. So we're going to reserve another quarter or 2 before we talk about that.

Operator: Our next question comes from Denis Pyatchanin with Needham.

Denis Pyatchanin: So prior year HPC forecast was about $25 million to $30 million for this year, and now you've moved it up to about $100 million. And I think in your presentation, it said that about $30 million of the $100 million or so would be Eclipse. So can you tell us about the remaining like $60 million to $70 million? Is that mostly testers? Is that other handlers? Can you kind of break down that remainder, please?

Jeffrey Jones: Yes. Let's back up a little bit. So initially, we came out and we said HPC revenue in the $60 million to $85 million range for 2026. What we're doing now is increasing that $60 million to $85 million. We're increasing that to $80 million to $100 million. Most of that relates to the Eclipse handler, the Neon for HBM inspection we previously said was 15% to 20%. I think we're at the higher end now of that range. And we are -- as Luis had mentioned, we -- some qualifications or finish qualifications for our testers also participating in some HPC revenue. Does that help, Denis?

Denis Pyatchanin: Yes, yes. And then so I think -- so you also said that you're now kind of expecting 2026 total revenue to be up 20% to 25%. So I mean, if I kind of just run-rate you at $144-ish million basically for the rest of the year, you basically get to that number. So we basically assuming revenue will be going flat from $144 million through the rest of the year? Will there be a little bit of a dip in Q3? Is there anything more you can say about kind of the cadence of revenue?

Jeffrey Jones: Yes. The way we see it now, Denis, we would expect Q3 to be pretty similar to Q2, somewhere in that $144, $145 range. Q4, we could have some seasonality, so slightly weaker Q4, maybe down Mid-single digit quarter-over-quarter.

Denis Pyatchanin: Great. That's helpful. And then lastly, maybe I think you had mentioned some further engagements with the U.S. and Korean customers. Can you tell us more about that, please?

Luis Müller: Yes. We were talking about inspection and metrology business here. We saw a big increase in orders in inspection and metrology in the first quarter. In fact, let's see here. I think it's up year-over-year at 64%. We are expecting that business to hit about $70 million in revenue this year. And what's driving that? One is HBM, which we're now guiding to about $20 million in the year. And the other one is just further demand for our inspection products from both a U.S. and a Korean customer with large orders in the Q1 time frame.

Operator: Our next question comes from Vedvati Shrotre with Evercore ISI.

Vedvati Shrotre: So I kind of wanted to double-click a little bit on the gross margin piece. So you have good ramps on the HPC front in the second half. So like would the systems gross margins, like wouldn't they sort of pick up in second half versus first half?

Jeffrey Jones: Yes. I think that's a good observation, V. However, we are having -- we are incurring some higher initial costs here to ramp the Eclipse supply chain and production. It's coming out very quickly with the new configuration. And so we're having to spend more money, more cost, again, on supply chain and production. I expect those costs to carry through almost probably through this year. So 2027 we'll see lower costs, particularly for Eclipse. On top of that, I think similar sort of or in line with other companies, right, there's a small impact from higher energy and freight costs, something to the tune of about 10 basis points. On top of that, we are also seeing higher cost of memory ICs that we use on our products. It's not a large huge number, but it's about 10 basis points.

Vedvati Shrotre: Understand. Are those the drivers for the dip in 2Q on gross margins? Is that like the 200 bps of decline that you have? Can you maybe characterize what's cost driven, what's kind of mix driven?

Jeffrey Jones: Well, yes, it's kind of a combination here. It is. Definitely cost driven, as I mentioned, for the Eclipse platform in terms of supply chain and production. And then to a certain extent, that also relates to mix, right? But I'd say cost first, mix second.

Vedvati Shrotre: Understood. Okay. And then in terms of R&D spend, like how should we think about R&D intensity for the rest of the year? Like I would assume like as you are going after these bigger markets, $750 million in SAM opportunities, essentially, what's the right way to think about R&D intensity? I assume it will be higher, but maybe some color there.

Jeffrey Jones: Yes, you bet. So I'm forecasting Q2 will be lower than Q1, but we're going to still be elevated from the model. So we're going to be about $53 million for Q2 operating expense. And that's because we are going to continue to invest in the resources to capitalize on these opportunities that we have in HPC. So I expect that sort of $53 million or call it, low $50 million range to persist through the second half of this year.

Luis Müller: For OpEx.

Jeffrey Jones: For OpEx.

Vedvati Shrotre: Okay. And then the last one, on the qualifications you have on the pipeline, $150 million to $200 million, how does that split or maybe the 5 customers? Like how does that split Neon versus Eclipse opportunity?

Luis Müller: These are all Eclipse. These are all Eclipse thermal handler applications to some form or another of a processor device.

Operator: That concludes today's question-and-answer session. I'd like to turn the call back to Jeff Jones for closing remarks.

Jeffrey Jones: Thank you very much. And before we sign off, I'd like to note that we'll be attending the following investor conferences during Q2. And those conferences are the TD Cowen Conference on May 27 in New York City, Craig-Hallum Conference on May 28 in Minneapolis, the Stifel Conference on June 2 in Boston and the Evercore Conference on June 3 in San Francisco. And if any of you plan on attending these conferences, please reach out to your conference contact or let us know, and we'll arrange for a one-on-one meeting. So thank you for joining today's call. We look forward to speaking with you again very soon.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.