Thank you and welcome, everyone, to FormFactor's third quarter 2025 earnings conference call. On today's call are Chief Executive Officer Mike Slessor and Chief Financial Officer Eric McInnis. Before we begin, Stan Finkelstein, the company's VP of Investor Relations, will remind you of some important information. Thank you. Today, the company will be discussing GAAP P&L results and some important non-GAAP results intended to supplement your understanding of the company's financials. Reconciliations of GAAP to non-GAAP measures and other financial information are available in the press release issued today by the company and on the Investor Relations section of our website. Today's discussion contains forward-looking statements within the meaning of the Federal Securities Laws. Examples of such forward-looking statements include those with respect to the projections of financial and business performance, future macroeconomic and geopolitical conditions, the benefits of acquisitions and investments, including acquisition of a manufacturing facility, anticipated industry trends, potential disruptions in our supply chain, the impacts of regulatory changes, including tariffs and changes in export controls, the anticipated volatility in demand for products, our ability to develop, produce, and sell products, and the assumptions upon which such statements are based. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed during this call. Information on risk factors and uncertainties is contained in our most recent filing on Form 10-K with the SEC for the fiscal year ended December 28, 2024, and in our other SEC filings, which are available on the SEC's website at www.sec.gov and in our press release issued today. Forward-looking statements are made as of today, October 29, 2025, and we assume no obligation to update them. With that, we will now turn the call over to FormFactor CEO Mike Slessor. Mr. Slessor, you're on mute. Sorry about that. Thanks for joining us today. FormFactor's third quarter revenue, gross margin, and earnings per share exceeded both second quarter results and the midpoint of our outlook range. Our outlook for the current fourth quarter builds on the third quarter, and we expect to again deliver sequentially higher revenue, earnings, and most importantly, gross margin. As you heard from us on last quarter's call and in meetings with many of you since then, we're focused on and committed to improving our profitability to get back on a path to the 47% non-GAAP gross margins of our target model. As you can see in our fourth quarter outlook, we expect to reach the model quarterly revenue run rate earlier than we achieve model gross margins. This disconnect is driving urgency across FormFactor in executing a program of rapid and immediate gross margin improvement actions that have already produced a 250 basis point increase from the second quarter, and we anticipate will produce an additional 100 basis point increase in the fourth quarter. We expect these short-term improvements will continue throughout next year, steadily closing the gap to the target model gross margin of 47%. At the same time, we're also executing longer-term structural initiatives that will further improve our gross margins, including developing and commercializing differentiated new products to drive increased market share and pricing, as well as qualifying and ramping our new Farmers Branch, Texas facility to rapidly and cost-effectively expand our capacity in a region with lower operating costs and a variety of financial and regulatory incentives. Eric McInnis, who became our CFO on August 12th, will provide more details on both the short and long-term initiatives. While we're intently focused on improving gross margins to generate the profitability warranted by our leadership positions in both probecards and Engineering Systems, we're also working to expand those positions, principally at the intersection of advanced packaging and high-performance compute. Innovations in this space, like the stacking of DRAM chiplets to produce HBMs, which are then integrated with GPUs in multi-reticle co-op packages, co-packaged optics, and even chiplet-based processors deployed at the edge, are all driving increased test intensity and test complexity, creating increased demand in our serve markets. In some of these areas, like HBM and DRAM, and network switches in foundry and logic, we today have leading market share positions. In others, like GPUs, we're making steady progress on qualifications to produce market share gains and revenue growth. Turning now to segment and market level details. In DRAM probecards, we delivered the expected double-digit sequential growth in the third quarter to a new record, primarily from growth in HBM. In the current fourth quarter, we expect to post another record, primarily from an increase in non-HBM applications like DDR5 and LPDDR4, likely driven by the well-publicized recent increases in commodity DRAM end-market demand, pricing, and customer profitability. In HBM, we've now reached the anticipated HBM3 to HBM4 crossover as HBM3e ramps down and HBM4 ramps up, with the overall net result being total fourth quarter HBM revenue similar to the third quarter. We continue to have significant contributions from all three major HBM manufacturers as we execute our long-term strategy to be a key supplier to all the leading customers in the industry, thereby growing and diversifying our HBM demand profile. Consistent with the current market share split between our customers, however, our HBM revenue continues to be skewed towards our largest customer. The ramp-up of HBM4 offers some exciting opportunities for FormFactor as we look ahead to 2026. First, the test intensity for each HBM stack further increases with the transition to HBM4's 16-high stacks of core die chiplets from the 8 and 12-high stacks of HBM3 and 3e. As we've detailed in our past discussions of advanced packaging, each of these core die chiplets must be comprehensively tested to ensure that a single defective core die does not cause a failure of the entire stack. In addition, the I/O speeds of HBM4 increase substantially over HBM3e, and our customers are now striving to exceed the JEDEC specification of 8 Gb per second. This performance increase and greater test complexity drive competitive advantage for FormFactor, as our SmartMatrix architecture is the industry's only production-proven high-parallelism probecard architecture that can operate at these 10 Gb+ frequencies, providing our customers with the unique capability to validate their product performance at these higher and more valuable I/O speeds. Shifting to the foundry and logic probecard market, as expected, third quarter demand in this market was sequentially weaker than the second quarter, and we expect similar foundry and logic demand levels in the fourth quarter. Despite broader indications of the beginning of a PC recovery, we're not experiencing significant growth in probecards for CPU applications. We believe this is because increased demand is being served by our customers' existing legacy node designs, where they're able to employ their existing probecard fleet. As a reminder, probecards are a device-specific consumable, and as this customer ramps volume on their new designs on new leading-edge silicon nodes, we expect to see increased demand for probecards and CPU applications. This current situation also highlights the need to execute our strategy to be a key supplier to all the leading customers in the industry, and we continue to build the foundation for market share gains at a large, fabulous CPU manufacturer. Having achieved qualification in a specific application with this customer earlier this year, we're now building on that penetration and qualifying our market-leading Apollo MEMS probecard technology on a mainstream CPU device that's forecasted to ramp in volume next year. Continuing on the theme of diversification and market share growth in foundry and logic, we've now met all technical requirements for a major GPU application with a new variant of the same Apollo MEMS probecard architecture and are now in the pilot production stage of qualification. Once we complete this final stage of qualification, we'll be in a position to compete for volume orders for GPU probecards in the first half of 2026. Turning to our systems segment, we delivered the expected sequential revenue increase in the third quarter and are forecasting additional growth in the current fourth quarter. Some of this strength stems from the typical seasonal cadence of the systems business, but we're also experiencing increased momentum in the progression towards initial production of co-packaged optics, or CPO, as well as the significant investments being made to advance quantum computing towards full-scale industrialization. In co-packaged optics, in addition to the multiple CM300Xi systems running pilot production for our primary CPO customer at their foundry, we've now installed multiple units of our next-generation Triton silicon photonics test system. Developed in collaboration with Advantest and Tokyo Electron, Triton brings together fab-level automation and integration of both optical and electrical probe and test capability for our customers. Triton represents the next step in our silicon photonics product roadmap as we transition our differentiated electro-optical probing technology from the lab to the fab, helping enable the adoption of energy-efficient optical data transmission in tomorrow's data centers. Before I turn the call over to Eric, I want to reiterate our continued commitment to achieving the 47% gross margin of our target model. As you can see from our fourth quarter guidance, we expect to reach target model revenue levels before we reach target model gross margin levels, but we've shown meaningful progress towards closing this gap. We plan to continue gross margin improvement in our executive factoring footprint by making continued progress this quarter and in 2026, layering on further improvement as we then bring our Farmers Branch expansion online at a structurally lower cost. These multipronged initiatives will improve our competitiveness and add capacity at lower cost, enabling us to grow FormFactor as we meet the challenges of increased test intensity and higher test complexity associated with the adoption of advanced packaging in applications like high-bandwidth memory, co-packaged optics, and quantum computing. Eric, you're up. Thank you, Mike, and good afternoon. Before we dive into the details of our third quarter financial results, I want to express my excitement as I move into the role of CFO and begin to leverage my experience across operations and finance to drive operational efficiency and financial discipline. I truly enjoy working across varied constituents to find innovative ways of driving value and continuous improvement. I also want to spend a couple of moments to summarize how we plan to drive sustainable improvement in profitability, emphasizing the key focus areas that will guide our actions and our priorities in both the short and the longer term. As you heard from Mike, we are focused on improving our profitability to a path to the 47% non-GAAP gross margins of our target model. We are committed to achieving these improvements in a sustainable way, and we believe the most critical elements of success for us in the short and midterm are to drive improved operational effectiveness, which means optimizing output from our existing infrastructure and better financial discipline. We believe focus in these areas will drive meaningful change in our unit costs and our gross margins. This focus starts with some immediate action. First, on the labor front, we just completed a reduction in headcount, reducing costs even as we execute on existing demand and prepare for future demand. Furthermore, we implemented changes in how we manage overtime in all of our manufacturing sites, immediately reducing our unit labor costs. Second, with respect to our manufacturing processes, we executed on targeted decreases in manufacturing spending. For example, we have expanded our existing precious metal recovery process to reduce waste in our manufacturing line, among implementing other improvements. Beyond these immediate actions, over the coming quarters, we will continue to drive a relentless focus on reducing our manufacturing expenses by attacking the fundamental drivers of cost within our existing footprint. For example, focusing on improving yields and reducing manufacturing cycle times by smartly deploying automation, implementing more effective defect detection capabilities, and implementing new factory management tools and analytics. Improvement in areas like cycle times and yields are structural, and we believe improvements in these areas drive durable cost benefits that will help us to weather and partially offset the impact of inevitable shifts in product mix and headwinds presented by new challenges, such as what we have seen recently with tariffs. Even as we drive the unit costs of our products down, we are aiming to simultaneously enable higher output from our current infrastructure. Reducing cycle times and improving yields enable this objective while also supporting our continued ability to be a top-performing supplier by increasing the quality and speed with which we address our customers' needs as they address rapidly growing demand in areas like high-performance compute and HBM. In addition to our laser-like focus on improving operational effectiveness, we will also exercise good financial discipline and continue to examine our overall portfolio of products, markets, and businesses, evaluating all of our operations through the lens of how each best supports our target model and our key strategic priorities. We are changing how we communicate our financial results. Instead of reciting breakdowns by product and market, we will continue to provide this important data in the supplemental materials on our investor website, and our discussion will focus on the key actions we are taking and the key drivers for our short and midterm roadmap to achieve our target model. As you saw in our press release, we are favorable to our Q3 outlook on revenues, gross margins, and EPS for both GAAP and non-GAAP. Q3 2025 revenues are $202.7 million. Non-GAAP gross margins are 41%, up 250 basis points from 38.5% in Q2 2025. Non-GAAP EPS is $0.33, $0.04 above the high end of the outlook range of $0.21- $0.29. GAAP gross margins for the third quarter were 39.8% compared to 37.3% in Q2. Cost of revenues included $2.5 million of GAAP to non-GAAP reconciling items, which we outlined in our press release issued today and in the reconciliation table available in the Investor Relations section of our website. As I mentioned, on a non-GAAP basis, gross margins for the third quarter were 41%, 250 basis points higher than the 38.5% non-GAAP gross margins in Q2 and at the higher end of our outlook range. This increase in non-GAAP gross margins is driven by improvement in both segments. The Probecard segment was up 254 basis points, and the systems segment was up 260 basis points to 40.8% and 42%, respectively. The reductions we have made in labor costs and manufacturing spending are starting to have an effect on our financial results. This progress represents the start of a more disciplined path that will yield incremental improvement in gross margins, leading us back to our target model gross margins over the course of 2026, as you heard from Mike. Our GAAP operating expenses were $62.6 million for the third quarter, effectively flat as a percent of revenue from the prior quarter and down 130 basis points from the same period in the prior year, demonstrating continued discipline in spending across the P&L, even as we continue to invest in R&D and projects like Farmers Branch to drive innovation and future growth beyond the immediate term and even beyond our current target model. GAAP net income for the third quarter was $15.7 million, or $0.20 per fully diluted share, compared with a GAAP net income of $9.1 million, or $0.12 per fully diluted share in the previous quarter. Third quarter non-GAAP net income was $25.7 million, or $0.33 per fully diluted share, up from $21.2 million, or $0.27 per fully diluted share in Q2. The GAAP effective tax rate for the third quarter was 29.1%, and the non-GAAP effective tax rate for the third quarter was 21.2%. We are continuing to refine our approach to key provisions of the recent tax legislation. Moving to the balance sheet and cash flows, we had free cash flow in the third quarter of $19.7 million compared to a negative $47.1 million in Q2. Remember that the reason for the negative cash flow in Q2 was the $55 million investment in the Farmers Branch, Texas manufacturing facility. Operating cash flows were $27 million in Q3, $8.1 million higher than the $18.9 million in Q2 2025, primarily driven by the improved net income on higher revenues and improved gross margins. At quarter end, total cash and investments were up $16.7 million to $266 million. Since purchasing the Farmers Branch facility, we have made excellent progress in executing our planning and pre-startup activities. This project is a good example of how we are taking advantage of our strong balance sheet to enable the next stage of growth and continued improvement in our gross margins over the long term. We expect the cash expenditures related to Farmers Branch will be between $140 million and $170 million over the course of 2026, and believe that this investment will enable further improvement in gross margins beyond our current target model. During the third quarter, we used $1.7 million to repurchase shares. At quarter end, $70.9 million remained available for future purchases under the $75 million two-year buyback program that was approved and announced in April 2025. As a reminder, our share repurchase program objective is to offset dilution from stock-based compensation. Turning to the fourth quarter non-GAAP outlook, we expect Q4 revenues of $210 million, plus or minus $5 million. This increase in revenues, more favorable product mix, and the cost reduction initiatives described earlier are expected to result in a higher non-GAAP gross margin of 42%, plus or minus 150 basis points. As a reminder, we continue to see a 150 to 200 basis point impact in gross margins from tariffs. We are taking actions to mitigate the impact of these tariffs, but those efforts are ongoing. At the midpoint of these outlook ranges, we expect Q4 non-GAAP operating expenses to be $58 million, plus or minus $2 million, approximately $3.5 million higher than Q2, mainly due to higher incentive-based compensation, planned spending on R&D, and expenses related to the startup of costs for our new manufacturing facility in Farmers Branch. Our Q4 effective tax rate is expected to be within the range of 17%- 21%. Non-GAAP earnings per fully diluted share for Q4 is expected to be $0.35, plus or minus $0.04. A reconciliation of our GAAP to non-GAAP Q4 outlook is available on the Investor Relations section of our website and in the press release issued today. As demonstrated by our Q3 results and our Q4 outlook, we're making encouraging progress to our target model. As recent initiatives to improve our structural costs take effect, we are able to better leverage our fixed cost as demand increases. With that, let's open the call for questions, operator. Certainly. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star ne ne on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. Our first question comes from the line of Craig Ellis from B. Riley Securities. Your question, please. Yeah, thanks for taking the question. Nice execution, guys. And Eric, welcome to the call. Mike, I wanted to start with you. Thanks for all the insight on the top line and how the business segments are performing. I was hoping you could go back to some of your DRAM commentary and specifically commentary around HBM4 and the cutoff. With the business having reached the cutoff in the recent quarter and flat sequentially, how would you frame up the growth gives and takes as you look out to 2026 for HBM? If we look at the next transition without getting the cart too far before the horse, as HBM4 becomes much more customizable, what will that mean for probecard intensity? Yeah, thanks, Craig. We did experience the crossover, are experiencing the crossover in the fourth quarter as HBM4 takes over as the majority of our HBM revenue. All three customers, as I said, are contributing to this, but we're fairly early in this HBM4 ramp. I think most people understand the timing and how it's linked up to a major high-performance compute product launch next year. We expect continued growth from here in our HBM4 business and our HBM business overall. If you look at, as we go through 2026, a couple of elements of test intensity and test complexity are increasing with HBM4, as I mentioned in the prepared remarks. Test speeds are going up, the layer counts are going up. These are all powerful tailwinds for Probecard intensity. As we move to HBM4e and then five, those tailwinds continue, right? We expect higher speeds and higher bit counts. The other interesting wrinkle is, as you mentioned, this idea of a custom HBM base die. I think that's, although it's further out on the horizon, it's something we're partnered with customers very closely right now as it combines high-end logic and memory controllers on the base die for HBM. Obviously, FormFactor in a place where that can offer some significant differentiation as we're the only supplier of scale in both memory and logic probecards. Very helpful, Mike. Thank you. Eric, the follow-up is for you. Thank you for the granularity on the levers that you're pulling to close the 500 basis point GAAP to target GM. The question is this: as we look at things that, in my words, not yours, may be more tactical versus those structural things that you talked about, how do those two things contribute in relative size to closing that 500 basis point GAAP? Can you talk about the linearity that we should expect from where we are to 500, acknowledging that there's going to be mixed dynamics that move up and down along the way? Thank you. Yeah, thank you for your question. The 41% that we have as results in Q3 represents a meaningful improvement from last quarter, and we're already seeing the benefit of some of the actions that we have taken. We are not done, as you note, and the restructuring actions that I referred to, we believe, will continue to provide benefit heading into Q4 of about $1 million, and then on an ongoing basis of about $1.5 million thereafter. In addition to that, we have plans in place to continue to drive improvements in, as you noted, kind of fundamental cost structure areas, focusing on things like manufacturing cycle time and yields. We believe that those will address both the gross margin roadmap over the course of 2026, as well as bring more output out of our existing facilities. Thanks, guys. Thank you. As a reminder, ladies and gentlemen, please, we ask that you please limit yourself to one question and one follow-up. You may get back in the queue as time allows. Our next question comes from the line of Brian Chin from Stifel. Your question, please. Brian, you might be on mute. Brian Chin, we're not hearing you. We'll move on. Our next question comes from the line of Christian Schwab from Craig- Hallum. Your question, please. Great, thank you. Just my first question regarding the gross margin target of 45%. You know, it sounded like you think you will attain that level in 2026. Is that a statement regarding a mix of business improving in foundry and logic versus DRAM, or is that a statement regarding the initiatives that you're doing, or a combination of both? As I mentioned in our prepared remarks, we are focused on changing the underlying cost structure across all of our products, and those underlying elements such as manufacturing cycle time and yield, those are independent of mix. Of course, there are always going to be elements of mix that impact us, as well as volume. We do expect to continue to see those impacts as we move forward. The roadmap that we have in place, we believe, will bring us up to target model gross margins over the course of 2026, as you note, with mix independence. Fantastic. My second question has to relate to, can you quantify the positive impacts on 2026 foundry and logic from potential ramps of CPU and GPU customers? A broad range, Mike. Yeah, Christian, we haven't really quantified that. As I noted in the prepared remarks, we're making excellent progress on the qualifications and competing for business. This is a critically important initiative for us to continue to diversify our customer base and grow share in foundry and logic. We would expect a significant impact as we move through 2026. As the selections and commercial negotiations are ongoing, it's hard to quantify. I will say the addressable markets associated with those two opportunities are significant. If you look at one of our competitors, who's been the primary vendor for it, you can see the impact of those. It's tens of millions of dollars a quarter from a served market perspective. Now we got to go compete and win on the back of these qualifications and bring that revenue and market share in. Great, thank you for answering the questions. Thank you. Our next question comes from the line of Brian Chin from Stifel. Your question, please. Hi there. Sorry about that issue earlier. I apologize if I cover any ground that's been covered already between calls. For Q4, it sounds like the revenue growth, is that mainly being driven by, you know, so to speak, legacy DRAM, if I heard that right, even across the business encompassing Logic Foundry. I would sometimes even think of that being kind of a margin, at best case neutral, probably a little bit negative, but you are getting gross margins higher. Can you maybe kind of speak to how you're able to offset or improve that on the gross margin line? That's the first question. Yeah, thank you for your question, Brian. I think there are some general relationships that we can draw from the market level, DRAM versus foundry and logic. In general, we do see some differentiation in standard margins across those markets. We also need to remember that even within those markets, there are product level changes in profitability that can drive increases or decreases quarter over quarter as that mix changes. There is an element of mix in there. Again, one of the main reasons why our gross margins and standard margins are improving quarter over quarter is really in great part driven by the cost improvements that we're making, which is, again, mix independent and we believe will sustain regardless of the mix of foundry and logic versus DRAM. Thanks. I know you've announced an amount of CapEx increase for next year tied to the Farmers Branch, Texas facility and capacity expansion. Have you provided earlier in the call details or some sense in terms of the timing of that deployment and when some of that increase in capacity will be available to the company? Yeah, we have a detailed project plan that extends over the course of 2026 and 2027. We expect some of the initial capacity to come online late in 2026, with the majority of that capacity coming online into 2027. Majority in 2027. Okay. Is it going to be focused mainly on the HBM market, or have you not stated, or is there broader fungibility in terms of what you can produce in that space initially? That's a great question. While we are focused on continuing to drive incremental gross margin improvement, that's one of the things we have our eye on. We're also focused on making sure that as we invest additional capital into our manufacturing footprint, we're creating a manufacturing environment that's flexible and efficient in supporting our future growth and making sure that it can serve the breadth of our product lines and that we are able to move resources back and forth as the market dictates. Okay. Yeah, great. I appreciate us talking to Eric. Appreciate it. Thank you. Our next question comes from the line of Charles Shi from Needham & Company. Your question, please. Yeah, thanks for taking my question. Mike, Eric, by the way, Eric, welcome on the board. Looking forward to working with you. The question on HBM, I don't recall you actually spelled out an HBM revenue number for the third quarter. Mind if you provide some color there, is that entire $11 million incremental DRAM revenue, like all HBM? What that means for traditional DRAM, was that still at the $20 million per quarter, that kind of a troughish level? Yes, I get it. It's going to increase into Q4. Yeah, Charles, for Q3, just to put a few more details around it, most of the sequential growth in DRAM in the third quarter, going second quarter to third quarter, was driven by HBM. It was HBM in round numbers, $40 million in the quarter, in the third quarter, pretty close to the previous high. As you know, we now see in the fourth quarter some of the non-HBM DRAM taking over. In conversations with our customers, understanding that our lead times are still really well within a quarter in most cases, we see some pretty strong growth associated with HBM4 as we move through the first part of 2026. I think most suppliers who are participating in high-performance compute and the HBM4 and associated GPU and other networking chip RAM see the same strength. Got it. Forgive me for being a glass half empty this time. I have to do it. It looks like some commentary around your CPU customer, which disappeared from the 10% customer list this time, feels like you are basically saying the revenue was kind of getting to a pretty depressed level in the third quarter. If you could put a little bit more quantitative color where your top CPU customer, where the revenue number was in Q3, and what's your projection into Q4 given all the cost-cutting effort they are going through. Thank you. Yeah, you're correct in noting that our large CPU customer was not a 10% customer in the third quarter. I'll take the glass half full position and say that we still delivered revenue above $200 million, close to all-time highs. If we talk about expectations for Q4, as I said in the prepared remarks, we're not seeing a lot of strength in the PC sector, in the CPU sector, but still working very closely with that customer. They're a key partner for us. As they go through some of their changes and restructuring and cost-cutting, we're very closely partnered with them in making sure that we're a supplier that's continuing to help them through that. It's a long-term partnership. I'll also shift gears and talk about why it's so important that we qualify at both major CPU manufacturers. As I said in the call, we're making good progress there to generate revenue from those projects in 2026. Thanks. Thank you. Our next question comes from the line of Elizabeth Sun from Citi. Your question, please. Hi, thanks for taking my question. I guess my first question is, Mike, you were talking about ASICs contributed about a couple million dollars last quarter. I'm just curious, like in Q2, in September quarter, did you see any contribution in ASICs project? Also, could you share with us any updates on your engagement in the ASICs projects? Yeah, I think the custom ASICs space is an interesting growth opportunity for us. We're engaged with all the major hyperscalers, and we highlighted for you last quarter that we'd won a significant project that contributed to second quarter revenues. There's a little bit of contribution again in the third quarter. I think these are long-term engagements with the hyperscalers. There is significant business there. To be perfectly transparent with you, we've got a smaller competitor who's doing a pretty good job serving that business with the two major custom ASIC projects in the industry. We believe that as the ASIC projects start to get closer to the specs required for GPUs, things like power, speed, density, that market is going to consolidate towards the two top foundry and logic suppliers who have advanced MEMS probe technology. For now, that's a hole in both our and our primary competitor's revenue that we're both working to fix. I think the other point to make is when we look at the sort of the fundamental spend associated with high-performance compute in the logic space, GPU versus custom ASIC, it continues to be dominated by GPU. That's why it's so important that we qualify for the merchant GPU business and start to participate in that. That makes sense. On the Farmers Branch, I'm curious if you could share, as it ramps a majority in 2027, what would be a detailed win for the gross margin side? Yeah, you're correct in that we will be ramping and investing over 2026 and 2027. We have detailed models and a detailed project plan associated with this project. As we look at that and we look forward, we believe that our investment there will yield incremental gross margin improvement over the long term as we move forward. That's kind of beyond our current target model. That's helpful. Thank you. Thank you. Our next question comes from the line of Tom Diffely from D.A. Davidson. Your question, please. Yes, good afternoon. Thanks for a couple of questions. Eric, I hate to do it, but I'm asking another gross margin question. When you look at the move from 38.5% last quarter to 42% this quarter, could you segregate the impact of mix, overhead absorption, and perhaps the cost reduction programs? Are they roughly the same, or is one greater than the others? Yeah, good question. You're correct in the elements there. Mix, volume, and cost improvement actions all contributed to the improved gross margins quarter over quarter. As you could see from my prepared remarks, we are very focused on making sure that we are managing the underlying cost drivers that are going to persist period in and period out. If I were to characterize the relative contribution, I would say that the volume, for example, is the minority of the change from last quarter. Okay, that's very helpful. Thank you. Mike, obviously, some nice momentum again in the silicon photonics on the system side. What are the next couple of milestones that we're looking for in that space to see some progress going into the fab itself? Yeah, I think the key milestones, Tom, are going to be externally available or some planned product launches early next year, mid next year. I think some of our customers have been pretty transparent about the insertion of CPO, co-packaged optics, into the roadmap. I think if those are, or when those are commercially successful, that'll be the next catalyst for CPO. Right now, we're in pilot production, moving towards volume production. As I noted, we've now installed multiple units of our TRITON test system, which is positioned for high volume manufacturing of CPO. We're ready to go when that begins to ramp. Probably the first externally visible catalyst is going to be some announcement coming in the early part of next year. Great. Thanks, Mike, and welcome aboard, Eric. Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. Our next question comes from the line of Krish Sankar from TD Cowen. Your question, please. Hi there. Thanks for taking my questions. This is Steven calling on behalf of Krish. Mike, I just had one first for you on the networking opportunity. I don't recall from previous conversations, but within foundry and logic, is networking silicons and specifically data center type solutions, are those a meaningful part of your foundry logic exposure today? Could you also talk about the longer-term opportunities potentially with a major GPU customer versus merchant networking chip opportunities? Yeah, I think on the networking silicon side, this is currently, I'd call it an important part of the business, but some of the growth projections that we have are pretty significant. That's one of the reasons why we highlighted it this quarter. I think you've probably heard pretty recently from some of the AP manufacturers that they see similar drivers in their business. As networking becomes a much more important part of the overall internal data center silicon content, that's an area where we're excited to take a strong incumbent position and continue to build revenue around that shared position. I didn't understand the second part of the question. Can you repeat it for me, please? Yeah, just in terms of your opportunities for future wins at, for example, merchant networking companies versus potential opportunities at a major GPU vendor in the market. Just because the merchant networking companies, as you mentioned earlier, do use a smaller probecard vendor for some of the ASIC designs. Just kind of curious if that's also similar for some of these higher performing networking silicon as well. Yeah, I think it's an interesting question, right? As we've seen the arc over the last five years of GPU requirements, for example, move into the space that requires an advanced MEMS probecard technology because of power, speed, pin count, pitches. There's really only two suppliers worldwide that can do that. I think the evolution as GPUs are now firmly in this space, obviously, we've got work to do as we qualify and start to win business there. I think elements of these networking chips are also moving towards that space. In the, whatever, 15 odd years I've been in the probecard business, you've seen this steady progression of all kinds of different pieces of silicon migrate towards where requirements absolutely dictate the need for advanced probecard technologies. For those of you familiar with our story, you know that that's one of the areas of key investment and key differentiation that we have, both in foundry and logic and in DRAM. Great, thanks for that color. For my follow-up, a question for Eric on the investments for Farmers Branch. You mentioned the target of $140 million- $170 million over the course of, I think, calendar 2026. Just wondering, how does that break out between, is that all CapEx or is there some component of R&D potentially in there as well? Most of that is capital expenditures. It is a mix of different types of assets, building improvements, clean room build-out, and equipment. Various lives on those, but that spend is primarily focused on the build-out of the physical build-out of the site and the manufacturing equipment that goes along with it. Okay, great. Thank you so much. Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Mike Slessor for any further remarks. Thanks, everyone, for joining us today. Let me add my welcome to Eric in his first earnings call. We are going to be doing a couple of conferences and events as we go through to the end of the year. We hope to see you there and continue to update you on FormFactor's progress on the evolution to the 47% gross margin of the target model. Take care. Thank you, ladies and gentlemen, for your participation at today's conference. This does conclude the program. You may now disconnect. Good day.