Greetings, and welcome to Varex's Q2 fiscal year 2026 earnings call. At this time, all participants are in the listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce Christopher Belfiore, Director of Investor Relations. Please go ahead. Good afternoon, welcome to Varex Imaging's earnings conference call for the second quarter fiscal year 2026. With me today are Sunny Sanyal, our President and CEO, and Sam Maheshwari, our CFO. Please note that the live webcast of this conference call includes a supplemental slide presentation that can be accessed at Varex's website at vareximaging.com. The webcast and supplemental slide presentation will be archived on Varex's website. To simplify our discussion, unless otherwise stated, all references to the quarter are for the second quarter of fiscal year 2026, and to the year are for the fiscal year 2026. In addition, unless otherwise stated, quarterly comparisons are made year-over-year from the second quarter of fiscal year 2026 to the second quarter of fiscal year 2025. Finally, all references to the year are to the fiscal year and not the calendar year, unless otherwise stated. Please be advised that during this call, we will be making forward-looking statements which are predictions or projections about future events. These statements are based on current information, expectations, and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks relating to our business are described in our quarterly earnings release and our filings with the SEC. Additional information concerning factors that could cause actual results to materially differ from those anticipated is contained in our SEC filings, including Item 1-A, Risk Factors of our quarterly reports on Form 10-Q and our annual report on Form 10-K. The information in this discussion speaks as of today's date, and we assume no obligation to update or revise the forward-looking statements in this discussion. On today's call, we will discuss certain non-GAAP financial measures. Our non-GAAP measures are not presented in accordance with, nor are they a substitute for GAAP financial measures. We provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure in our earnings press release, which is posted on our website. I will now turn the call over to Sunny. Thank you, Chris. Good afternoon, everyone, and thank you for joining us for our second quarter earnings call. I'm pleased to say that we delivered a solid second quarter in both medical and industrial while strengthening our capital structure and continuing to shift our business towards advanced imaging technologies and higher growth industrial applications. Revenue for the quarter came in within the guidance range at $216 million. Non-GAAP gross margin was 34%, and non-GAAP EPS was $0.21. I'd also like to highlight that during the quarter, we completed our debt refinancing activities, which resulted in the reduction of outstanding debt and a decrease in our annual interest expense. The resulting capital structure and reduced leverage will give us more financial flexibility to continue to invest in the business. Let me give you some insights into sales detail by modality in the quarter compared to a five-quarter average, which we refer to as the sales trend. We saw solid performance in our medical segment, led by continued momentum in CT and other mid-tier X-ray sources. Sales in the CT and radiography modalities exceeded their sales trend in the quarter. Oncology and mammography modalities were in line with their respective sales trend, while fluoroscopy and dental modalities were below their respective sales trend. I'm also happy to say that in the medical segment, our investments in new products are resulting in increased growth in the pipeline of potential new OEM projects. Over the past 12 months, we have continued to see a steady increase in design-in discussions where our new X-ray sources and detectors products can help OEMs and systems integrators accelerate bringing new applications to market. As these project decisions move through the process, they will contribute to our future recurring sales growth. Our industrial segment delivered another solid quarter, driven by demand for our tubes, linear accelerators, and detectors for non-destructive inspection applications and continued progress with implementation of our cargo security inspection systems. Our industrial services also posted another robust quarter with meaningful contribution to gross margin expansion, offsetting some of the inflationary cost increases that we have seen recently with certain input materials. Sales momentum in photon counting technology remained strong in the quarter, primarily driven by robust demand in food inspection services. We also saw good sales results of industrial flat panel detectors for general non-destructive inspection. Looking ahead, we anticipate that we will see new types of inspection opportunities in different industrial verticals as adoption of our flat panel detectors and photon counting detector technologies continue to demonstrate benefits of speed and high resolution in non-destructive inspection. We had a busy quarter with implementation of various previously booked orders of cargo inspection systems projects. We also booked multiple new deals in multiple countries, which included mobile inspection systems as well as car scanners, and we are continuing to develop our sales pipeline. We expect the industrial segment to be an increasingly significant driver of growth and margin expansion for Varex. Our technologies are unlocking capabilities in non-destructive inspection and metrology applications that were previously difficult or impossible to achieve. In early March, we attended ECR, which is the European Congress of Radiology trade show in Vienna, Austria. ECR is one of the largest medical meetings in Europe and the second-largest radiology meeting in the world. The week-long event reinforced our view of the direction the imaging industry is headed, as well as the strategic role that Varex plays within it. Not surprisingly, AI was a major focus area at ECR. Numerous presentations and demonstrations highlighted how AI was being used to advance productivity and improve clinical outcomes. Varex's technologies remain critical to enable these advances. In radiology, AI is becoming increasingly embedded within imaging systems, driving both clinical and operational workflows. We believe that the quality, consistency, and richness of imaging data is critical for AI to realizing its full potential. What we have seen in adjacent markets, such as digital cameras and industrial automation, is that as imaging technology matures, image processing moves closer to where the images are generated, which in our case, would be closer to the image acquisition workstation or even the detector. Varex's tube and smart detectors can enable OEMs to design systems which can produce images that are pre-processed with AI to better enable the agentic AI applications to direct the diagnostic steps and optimize the enterprise radiology department workflow. Varex is well-positioned to support this shift by combining advanced imaging components with connectivity-enabled solutions that improve productivity while helping address the shortage of radiologists in many emerging markets. For example, in general radiography and certain fluoroscopy applications, Varex's software solutions, such as Nexus DR and Nexus DRF, integrate our X-ray tubes, detectors, and software to enable efficient image acquisition and seamless connectivity to cloud-based platforms for AI-driven analysis. We believe this model can help accelerate adoption of digital imaging systems in emerging markets such as India, South Asia, Africa, and Latin America, where there is a significant shortage of radiology professionals. We're also seeing increasing interest from OEMs in the data capabilities that currently exist in our high-end CT tubes. Operating information captured during imaging by our CT tubes can be used to correlate imaging parameters with image quality, predict life of the X-ray tube and related components, and enable service applications to predict downtime and proactively schedule maintenance to increase system availability. In summary, Varex's X-ray tubes and detectors continue to be well-positioned to meet next generation of imaging performance and reduce cost of ownership. Interest in photon counting continues to grow. In addition to the two CT customers, we're actively engaged with eight different medical imaging OEMs developing systems using our photon counting detectors. We are seeing growing adoption across several modalities with strong OEM engagement. Some of them already have systems in the market, while others are working towards it, supporting both near-term and long-term potential sales growth for Varex. Full-body photon counting CT remains our largest long-term market opportunity, with our OEM partners making steady progress towards commercialization. At RSNA and ECR, we showcased the value of our integrated solutions, combining tubes, detectors, power generators, and image processing software designed to work seamlessly together to enhance performance while lowering total cost of ownership. Overall, the trends that we saw at RSNA and ECR reinforce our view that the future of imaging will demand technologies that deliver higher performance, enable deeper clinical value, and reduce cost of ownership. With a foundation of a stronger capital structure, growing pipeline of OEM engagements, and increasing adoption of our advanced imaging technologies, Varex is well-positioned to deliver a more consistent and higher quality growth over time. With that, let me hand over the call to Sam. Thanks, Sunny, and hello, everyone. Turning to results for the second quarter, stepping back, demand across both the medical and industrial segments was solid, reflecting continued customer investment in our technology. Revenues of $216 million were within our guidance range. Non-GAAP gross margin of 34% was at the high end of the guidance, and non-GAAP EPS of $0.21 was in line with expectations. Now turning to revenue details. Compared to the same period in fiscal 2025, total revenues increased 1%, driven by a 2% increase in medical revenue as CT sales remained strong in the quarter. Industrial revenue increased 1%, with solid performance in cargo security systems and continued momentum in photon counting. Medical revenues were $156 million, and industrial revenues were $60 million, representing 72% and 28% of total revenues respectively. Now analysing regional performance. Americas grew 13%, driven by the strength in CT and our industrial segment. EMEA declined 16%, and APAC increased 8% year-over-year. Sales volume to China held steady, contributing 15% of total revenues, underscoring the continued resilience of our healthcare market position there. Let me now cover our results on a GAAP basis. Second quarter gross margin was 34%, down 240 basis points year-over-year. Operating expenses were $58 million, up $4 million year-over-year. We reported operating income of $14 million, net loss of $8 million, and GAAP EPS loss of $0.19 per diluted share based on fully diluted 42 million shares. Moving on to non-GAAP results for the quarter. Gross margin in Q2 was 34% at the high end of our expectations, driven by favorable product sales mix. Gross margins were down 240 basis points year-over-year, primarily driven by higher costs incurred during the quarter compared to last year. R&D spending was $22 million, in line with Q2 2025 and representing 10% of revenue. SG&A expense was $32 million, up $2 million from Q2 of 2025, and representing 15% of revenues. The primary driver of the increase in SG&A was related to continued investments in our growth initiatives. Operating expenses totaled $54 million, an increase of $3 million year-over-year, and represented 25% of total revenues. Operating income was $19 million, a decrease of $7 million year-over-year, and operating margin was 9% of revenue, compared to 12% in Q2 2025. In our other income and expense line, we recorded a non-cash charge of $1.8 million due to a drop in share price related to our equity investment in publicly traded Micro-X shares. Tax expense was $419,000, down $2 million year-over-year. Q2 tax rate of 5% was low due to discrete items as well as reduced tax rate expectations of 20% for the full fiscal year 2026. Net earnings were $9 million or $0.21 per diluted share compared to $0.31 in the year -ago quarter. Average diluted shares for the quarter on a non-GAAP basis were 42 million. Turning to the balance sheet. Accounts receivable increased by $2 million and days sales outstanding decreased by two days to 62 days. Inventory increased $19 million to $347 million, and days of inventory increased by six days to 220 days. Accounts payable increased by $18 million due to timing of payments, and days payable increased 10 days to 61 days. Now moving to debt and cash flow information. Net cash outflow from operations was $2 million in the quarter. We ended the quarter with cash equivalents, and marketable securities of $88 million, down $37 million compared to the first quarter of 2026. The decrease in cash was primarily the result of our debt refinancing in March. As Sunny noted earlier, we are excited to have successfully closed the new credit agreement and redeemed our senior secured notes during the quarter, strengthening our balance sheet and improving our cost of capital. The reduced debt and lower interest rates will improve financial flexibility, support improved free cash flow generation, and enable continued investment in our core business while prioritizing long-term shareholder value creation. Gross debt outstanding at the end of the quarter was $351 million, and debt net of $88 million of cash equivalents, and marketable securities was $263 million. Adjusted EBITDA for the quarter was $27 million or 12% of sales. Our trailing 12 months adjusted EBITDA was $180 million, and our net debt leverage ratio was approximately 2.2 x Adjusted EBITDA on a trailing 12-month basis. Now moving on to the business outlook. Before providing guidance for the third quarter, I want to highlight that we are modifying our guidance practice to start providing an annual view. Please note that our current guidance excludes the effects from the IEEPA tariff refunds. For the second half of fiscal 2026, we expect revenue to be up approximately 3% compared to the same period of fiscal 2025. We expect revenue to benefit from continued strength in CT, momentum in industrial photon counting, and progress in implementation of cargo systems. As a result, we expect full fiscal year 2026 revenue to be in the range of $860 million-$880 million and non-GAAP EPS to be in the range of $0.80-$1.00. Going forward, our intention is to provide full-year guidance. The other assumptions for the annual guidance are shown in the slide here. Guidance for the third quarter is as follows: Revenues are expected between $210 and $225 million. Non-GAAP earnings per diluted share are expected between $0.15 and $0.30. Our expectations are based on non-GAAP gross margin of 33%-34%, non-GAAP operating expenses of approximately $54 million, interest and other expense on a net basis in a range of $6 million-$7 million, tax rate of about 23% for the third quarter and non-GAAP diluted share count of about 42 million shares. I would now like to hand the call back to Sunny for some closing thoughts before beginning our Q&A session. Thank you, Sam. Overall, we're very pleased with the solid first half of fiscal 2026. Looking ahead, we're encouraged by the depth and quality of engagement with our medical customers, particularly around innovation and integration of our technologies into their next-generation imaging systems. On the industrial side, our close collaboration with customers continues to drive new applications across a diverse set of end markets, including oil and gas, food inspection, and security screening. Across both business segments, this level of engagement reinforces our confidence in the durability of our customer relationships and the long-term opportunities ahead. None of this progress would be possible without the dedication of our employees and partners around the world, and I want to sincerely thank them for their continued commitment. Your efforts are critical to advancing our strategy and strengthening the future of Varex. With that, we will now open up the call for your questions. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. The first question comes from the line of Jacob Mlesnik with Oppenheimer. Please proceed. Hey, Sunny. Hey, Sam. Jacob on for Suraj here. Thanks for taking our questions. Good day, Jacob. Maybe just to start off with a question on the effects of the current macro environment. You know, given the Middle East conflict and its subsequent impact on regional logistics and energy costs, combined with the tightening memory supply, I guess, how are you insulating your costs and lead times? Specifically, are you seeing any pricing pressure or constraints for your memory-intensive components? Yeah. Hey, Jacob. First, let me address the costs of certain components like memory chips. The only part of our business where we depend on certain memory chips is in our detectors business, and we have been able to procure them, although the costs have gone up. Y ou know, our consumption of memory chips isn't extraordinarily large. We've been able to procure what we need for now and have a good buffer stock. It has cost us some money, and we have, we've been able to offset that with other areas of business where we've had some favorability, good mix, so that's why we've been able to hold on to gross margins. It has cost us and, you know, we're just paying attention to it. Secondly, in terms of other effects, of logistics, et cetera, you know, very little of our products flow through the Strait of Hormuz, right? There hasn't been a direct impact of logistics challenges or issues to us that we've seen. Now, our customers, may have, you know, may be facing challenges, but so far, it has not directly impacted our ability to ship or our ability to fulfill business for our customers. There are some other parts and products, components that are byproducts of petroleum, where we've seen cost increases. Then our consumption of those parts and pieces, materials is not that high, such as plastics, epoxy, and some certain polymers. The war in the Gulf by itself hasn't done a whole I mean, hasn't been a much of a significant impact for us. Over the last 18 months, 24 months, we've done a lot to diversify our supply chain, to regionalize our suppliers. We have a lot of redundancies. All that is, you know, those are big investments we made over the last several years. All that's, in a way, helping us. Got it. Very helpful. Then maybe just one more from my end. On the India manufacturing ramp, could you quantify, I guess, the current capacity utilization at the India facility in terms of detectors? As shipments begin to scale, how should we think about the margin tailwinds associated with this? Do you expect the facility to reach, you know, full production capacity by the end of this fiscal year? Or how do you see that going? Yeah. Thanks, Jacob. This is Sam. Yes, you're right that our detector factory in India has been completed. We are slowly ramping up production there. Keep in mind that, given we are producing medical products over there, we need to go through regulatory procedures and get approvals, et cetera, product by product. The ramp-up is slow, but it is definitely ramping up. At this point, I would say the utilization levels are low, but we are expecting it to pick up. By the year-end, we are thinking that it should be materially utilized. Currently the P&L is facing gross margin as well as an OpEx tailwind because of this situation. I'm hoping that this headwind becomes a tailwind as we cross over, call it 60%-70% utilization by the year-end. That's the situation there on one factory in India. The other factory, which is related to tubes, we are still into the facilitization, equipment move in, and initial validation runs, et cetera. That factory would still require some more time. It would begin to ramp towards the beginning of the next year for us. Perfect. Thank you. The next question comes from the line of Jim Sidoti with Sidoti & Company. Please proceed. Hi, good afternoon. Thanks for taking the questions. Can you just talk a little bit about what's going on with inventory levels and why they were up in the quarter? Hi, Jim. This is Sam again. Inventory was up in the quarter. As you know, we are investing in cargo inspection business. We have a number of units out there at the customer site, and we are working through the acceptance procedures and stuff like that. That is causing some increase in our inventory. At the same time, we are slowly moving raw materials, et cetera, to India to enable the ramp-up in India, particularly for our detectors. Those are two reasons. On top of that, there's been tariffs and then a little bit of memory chips, so they are also causing some inflation in inventory. At this time, as we forecast for the remaining six months of this fiscal year, we are expecting inventory to come down, and we are targeting about $20 million-$25 million reduction in inventory. This increase in inventory is there to support the existing customers as well as ramp up in the new business area. From our perspective, it is a temporary build-up and then bring it down in the next couple quarters. Okay. All right. That makes sense. It looks like the business in China was up $2 million in the quarter. You know, are we past most of the headwinds there, and should we expect revenue from China to remain about this level for the rest of the year? Yeah. Jim, the mess we had a couple of years ago with all the audits and then followed by the confusion around their stimulus programs and then all the supply chain issues as we had, those have, as you know, worked themselves out the way we had forecasted. What we're seeing now in China that there, the demand side has returned to, I'd say more normal, secular type of demand as we would expect in most parts of the world. We had, you know, our sales were up 8% year-over-year in Q2, and then we also had in the first half, about 3% in China. It was, it was along the lines of what we had expected would happen this year. Okay. All right. With regards to photon counting for the medical business, I think I heard you say that, you have two OEMs where you're, you know, you're relatively far along with, and you're talking to eight others. Is that correct? Yeah. Let me clarify. We've last several calls, we've talked about CT, photon counting for CT. Those are the two OEMs that I was mentioning, but I wanted to give a color beyond those two CT OEMs. By the way, we're seeking out, as we've said, we'd love to get a couple more, and we're working on that. Beyond that, in other modalities, beyond CT, we're seeing, there's activity with customers who are active, there's eight customers who are actively engaged with us in various other modalities for different kinds of applications, CBCT applications and DR and breast imaging in a variety of areas. The applicability of this technology is expanding beyond CT into other areas as well. We have OEMs that have now brought some, you know, brought products to market, and there are others that are working actively on it. Okay. For the two that are working with CT, when do you think we'd start to see those in the field? Yeah. Those customers have not announced their launch plans yet publicly, so I really can't disclose that. All I'll say is, at this point, they're still on track in a way that would still put us in line with our goals for 2029 as we had committed, but we still need, you know, a couple more OEMs as well. Let me say both our OEMs are making very good, solid, steady progress. They're trying to bring products to market that, you know, that are not just a me too of what's been done so far, but where they can position themselves strongly in the market. All right. The last one for me, just kind of a general question. You know, when issues like the increased price or cost for chips occur, do you have pricing power? Are you able to pass any of that along to your customer? We do have pricing power in certain cases, especially what we've observed through previous situations like this. Remember when we had the problem with FPGAs a few years ago, the whole industry struggled with it. We did pass on some of those costs to our customers. In this case, you know, we ended up reacting, responding very quickly. You know, there's different kinds of memory chips. We were able to do a couple of things, where we bought ahead very quickly. A certain type of memory chips that are going out. We also have products that are on older version that, you know, wasn't impacted as severely. This effect at this time wasn't severe enough. Answer to your question, if it's unusual and if it's going too unusual, and it's gonna end up costing a lot, we will pass these on. Yeah. I would like to add, Jim, that, generally our pricing and our contracts are running annual, so for the same year it is a little bit difficult. When the contract comes for renewal, that will definitely be taken into consideration, and we would be able to pass price increase at that time. It is not that, you know, customer contracts get renewed on a rolling basis. As and when they come up for renewal, we would have an ability to pass down these cost increases. Understood. All right. Well, thank you. Thank you, Jim. The next question comes from the line of Young Li with Jefferies. Please proceed. All right, great. Thanks for taking the questions. I guess to start, you know, last quarter, I think the results as well as the tone on the call was particularly strong both on end markets and business trends. Seems like this quarter it's more solid and in line. You know, appreciate the guidance for the rest of the year. It seems like, you know, fiscal 3 Q is a little bit above consensus at the midpoint, 4 Q, a little bit below. Just kind of curious, you know, what's changed in the quarter that's making you sounding a bit more cautious? I'll get us started, Young. First of all, last quarter, remember before the last quarter, we know we were carrying, we were coming off of some pretty messy market dynamics. From that perspective, we saw the transition, and I was very happy. We were optimistic, and we have not lost that optimism, in that sense that the demand side is playing out just the way we had anticipated. That's Let me just put it there that way. This quarter as well, the same type of buying patterns continued. There was nothing odd about the buying patterns in a way that would have concerned us. If there's any cautiousness, it's about just the general environment. As you might have noticed, the general environment and the political environment has not impacted the demand side, to the extent that, I mean, we're not seeing that impact. We, you know, I still remain optimistic. I think we're just generally cautious about the environment, but we're not. The effect of the environment is largely on costs and material availability, lead times, logistics, and not on the demand side of our products. All right. Got it. That's helpful. I guess maybe on industrials as well as EMEA, those two segments kind of came in a little bit below expectations. You know, industrials, it does still sound like the inspection systems are, you know, doing pretty well. Does that sort of imply the base business is slowing a little bit? For EMEA, I think it's 28% of revs, probably the lowest in a multiple years now. Maybe if you can expand on what's going on in that market a little bit more. Sure. Young, on when it comes to EMEA, the reported numbers for EMEA as well as what you're saying about industrial, they are somewhat connected. One of our large customer for linear accelerators, they had gotten a fairly large order last year, and we were supplying linear accelerators for that customer, and this customer is based out of Europe. Last year in 2025, we shipped pretty significantly, and we talked about that last year, if you would remember. We said that we are looking forward to these linear accelerators getting out there in the field installed and then also post-installation service to resume in 18 months or so. From that perspective, I would say that the industrial revenue for linear accelerators was fairly strong in 2025. This year, the security inspection business or we are selling security inspection full systems in that market, and we are doing very well there. We are getting adoption, we are getting customer traction. That is that transition. Overall, this business is somewhat lumpy. It just goes into, you know, it comes and goes in steps. As I said, last year was fairly strong for that. That's what you are seeing, and they are somewhat connected. Overall industrial, I would say that this year also, in this quarter also, it grew. Overall industrial business grew, although not high single digits, but it did grow a couple of percentage points year-over-year. I'm saying Q2 over Q2. Overall, once you aggregate it over multiple quarters or look at it from an annual to annual perspective, that business for us is growing pretty nicely in very high single digits, so to say. We expect it to continue to do so. Okay. Got it. Very helpful. I guess maybe one more just on the annual guidance that you guys are gonna be providing going forward. I think back in fiscal 2024, you guys did that for a year, and then, you stopped. You know, now you're resuming again. What's sort of driving this decision? Do you have, you know, a different process or a lot more visibility on an annual basis? If you can expand upon that decision, that'd be really helpful. Thank you. Yes. Young, it's been always our intention to provide annual guidance, and if you go back early on when Varex became public, we were providing annual guidance. COVID hit and then supply chain crisis, and then you would remember in the healthcare sector, there were situations in the China market. All of those factors were causing quite a bit of volatility in the business and an inability to forecast. That was one of the reasons that we had suspended providing annual guidance a couple of years ago, as you remember, as you rightly recalled. Since then, we've been working on improving our forecasting procedures. For example, we've been asking our customers to provide us longer duration forecasts, et cetera. We've strengthened some of our procedures, and we are coming back to start to provide the annual guidance going forward. Young, the demand side is what our forecast is driven by the demand side. The demand side is with the supply chain crisis out of the way and all the stuff that we experienced in China out of the way, that side is, demand side is more stable than it has been in the last few years. I would say macro is somewhat challenging right now, but within that, healthcare seems to be in a little bit better place. As we look at the overall macro with the healthcare positioning and the demand for our products, particularly in X-ray, we kind of feel the demand is stable and solid, and so we feel that we are in a position where we can go ahead and provide the guidance. All right. Great. Very helpful. Thank you. The next question comes from the line of Larry Solow with CJS Securities. Please proceed. Great. Thanks. I guess just a couple of follow-ups to the previous questions. I know the growth, you're assuming 3%. It was essentially the same as in the first half. It looks like it was a little low single digits, basically 1% medical, high single digits industrial. Obviously, a little bit of volatility quarterly, roughly, is that kind of what you expect in the back half? About the same 3%. Do you expect that kind of that split, low single, high single, medical versus industrial and similar growth year-over-year? I'm just curious, has your concern on have you become a little bit more concerned on top line? Obviously, we're all a little more concerned on just the world in general, but your macro specifically, has that changed at all? No, I think, Larry, you what you mentioned is correct in the sense that our expectation of second half versus first half and the split between medical and industrial is similar. We are not choreographing any message that the split or the rates in the second half versus the first half between the medical or industrial will be very different from each other. We expect to follow a similar pattern. Okay. You haven't lost your confidence. Maybe last quarter you did sound a little more pumped up, Sunny Sanyal, when you spoke about some of your products, but it doesn't sound like. Okay. No, that's fair. Just a couple of questions on the quarter. The non-cash charge for the Micro-X shares movement, that's adjusted out in adjusted EPS, correct? No, it is not adjusted out because per our policy, we do not adjust that charge out. Okay. That's actually in, that's in the EBITDA number too then? Correct. It's in EPS, EBITDA, EBIT, everything. Yeah. How much was that? $1.8 million, Larry, for this last quarter. Okay. Now, that's basically like a mark to market essentially on the price, right? That is correct. Essentially what you're doing? Okay. That is correct. All right. Okay. You don't adjust that. That was a couple of cents EPS then, I imagine. It was almost $2 million EBITDA. It was more than couple of cents, right? Actually, $0.04. All right. Okay. It's a big deal. All right. That's interesting. Then the OpEx was a little bit higher than you expected. It was $54. You had guided to $52. Anything in there in particular? Nothing in particular. You know, Larry, we've talked about in the past that we are fully funding a number of our growth initiatives. Sometimes in R&D for medical and then the channel development activities and initiatives that we have for the industrial segment, sometimes they don't come in exactly as one planned. There's a little bit of a movement there. We are investing there. They came in a little bit sooner. That's the reason for that. Yeah. Okay. I know you know, you didn't give, I know you normally were giving margin guidance too, which you're not giving, I guess, anymore. Is that, is that right? Or you didn't give it this quarter at least? No, which margin guidance, Larry? For Q3. Did you give, for the Q3 guidance, did you give OpEx guidance? Did I miss that? Yes. Yes, it is there on the slide, Larry. We did provide OpEx guidance. Oh, okay. Oh, okay. It was in the slides. I'm sorry. I just didn't have the slides up. That's my issue. Okay. You're expecting that this is a little bit of aberration, but you don't, you know, over time, as revenue grows even, the next quarter or the next several years, your OpEx, you have some, you showed some pretty good leverage there, right? On the SG&A line. Is that? Yes. As we are funding these initiatives, we are spending through OpEx. As these initiatives turn into revenue, we are expecting very good operating leverage to drop through. The headwind should become a tailwind. Yes. Can you just give us any update just on the cargo screening? I know you mentioned it briefly in the prepared remarks. I don't think you're gonna provide bookings anymore on a quarterly basis, but can you just, you know, give us an anecdotal update? That'd be great. Yeah. You know, we've been booking deals consistently, what I'm happy about is that these are well distributed from new, you know, new prospects, new customers, new geographies, new products. We're seeing, you know, good traction with closing deals. The pipeline is pretty hefty and it's big. We're continuing to see deals very, I'd say we feel very good about our visibility to deals. We had called into it, you know, this is a lumpy business and tender-driven, it's hard to give any kind of visibility to that, you know, in forward-looking, we're not doing that. I'm very happy with the progress we're making there. I'm very happy with the way the installations are going. I'm very glad to see our ability to put out many of our new products. I mentioned the car scanner. You know, it's, we're very happy to see some new car scanner deals, you know, sales this in Q2. It's, it's ramping up the way we had anticipated, and we're ramping up our production, implementation, delivery the same way as well. Part of the OpEx and part of the inventory is in the fact that we're making these investments in growth. Absolutely. Okay. I appreciate all that color. Thank you, guys. Thank you. Ladies and gentlemen, this concludes the question and answer session, and I'll hand the floor back over to Chris Belfiore for closing remarks. Thank you for your questions and participating in our earnings conference call today. The webcast and supplemental slide presentation will be archived on our website. A replay of the quarterly conference call will be available through May 21st. Thank you and goodbye. Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.