Core Insights - Actelis Networks, Inc. has secured a new order to modernize communications infrastructure for a major city in the Nordic region, enhancing its presence in the European market [1][4] - The company is collaborating with a leading European traffic technology provider to supply advanced hybrid-fiber networking solutions, aimed at improving connectivity in a city with over 300,000 residents [2][4] - Actelis' technology offers fiber-grade performance while utilizing existing infrastructure, significantly reducing deployment time and costs compared to traditional methods [3][5] Company Overview - Actelis Networks, Inc. is a market leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various IoT applications, including government and transportation systems [5] - The company's innovative portfolio provides fiber-grade performance with the flexibility and cost-efficiency of hybrid networks, supporting smart city initiatives and infrastructure modernization [5] - Actelis also offers AI-based cyber monitoring and protection through its "Cyber Aware Networking" initiative, enhancing network security and resilience [5]

Core Insights - Actelis Networks, Inc. has secured a new order to modernize the communications infrastructure for a major Nordic city, enhancing its European presence [1][4] - The company is collaborating with a leading European traffic technology provider to supply advanced hybrid-fiber networking solutions, aimed at improving connectivity in a city with over 300,000 residents [2][3] - Actelis' technology is designed to provide fiber-grade performance while utilizing existing infrastructure, which reduces deployment time and costs compared to traditional methods [3][4] Company Overview - Actelis Networks specializes in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including IoT, government, and transportation systems [5] - The company's innovative portfolio offers flexibility and cost-efficiency, while its "Cyber Aware Networking" initiative enhances network security through AI-based monitoring [5]

Core Viewpoint - Actelis Networks, Inc. has received a follow-on order from the City of Eugene, Oregon to expand its traffic management system, indicating the growing adoption of its hybrid fiber-copper networking solutions for smart city applications [1][2][5] Company Overview - Actelis Networks is a market leader in cyber-hardened, rapid deployment networking solutions, specializing in hybrid fiber-copper technologies for IoT and broadband applications [1][5] - The company offers fiber-grade performance with the flexibility and cost-efficiency of hybrid fiber-copper networks, enhancing connectivity for various sectors including government and transportation [5] Recent Developments - The new order builds on a previous deployment announced in February 2023, as part of Eugene's Transportation Management Plan aimed at tripling the current rate of transit by foot, bicycles, and public transport by 2035 [2] - Actelis' technology integrates with traffic controllers and IoT devices, providing live data to the city's operations center, thereby modernizing traffic management capabilities [3][4] Partnerships - The equipment is being delivered through Western Systems, a long-standing partner of Actelis, which collaborates with various agencies to implement advanced traffic solutions across the western United States [4]

Core Insights - Actelis Networks, Inc. has secured a new order to modernize the intelligent transportation system infrastructure in Orange County, California, enhancing its presence in the transportation sector [1][2] - The order, placed through Western Systems, will provide advanced networking technology for secure, high-speed connectivity in traffic management systems, benefiting a region with over 3 million residents [2][4] - Actelis' hybrid-fiber networking solutions offer fiber-grade performance while utilizing existing infrastructure, reducing deployment time and costs significantly [3][4] Company Overview - Actelis Networks is a leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including government and intelligent transportation systems [5] - The company's technology is designed to withstand harsh environments and provides military-grade security against threats to essential transportation networks [3][5] - Actelis has seen growing adoption of its technology across the United States, indicating its unique value proposition in smart city initiatives and infrastructure modernization [4]

Core Viewpoint - Actelis Networks, Inc. has received new orders for its GigaLine 800 (GL800) networking solution aimed at modernizing and enhancing the cybersecurity of military base operations [1][2]. Company Overview - Actelis Networks, Inc. is a leader in cyber-hardened, rapid deployment networking solutions for IoT and broadband applications, focusing on hybrid fiber-copper technologies [6]. - The company offers a portfolio that combines fiber-grade performance with the cost-efficiency of hybrid networks, targeting various sectors including military, government, and utilities [6]. Product Details - The GL800 solution provides secure, multi-gigabit connectivity over existing wiring, allowing for rapid deployment without extensive construction [3][8]. - It supports high-speed internet access and improved communications, essential for modern military operations, including barracks and information centers [2][5]. - The solution is designed to meet the growing bandwidth demands of military applications, facilitating the integration of smart IoT devices [2][5]. Recent Developments - The recent orders, valued at $140,000, are part of military base modernization initiatives, enhancing connectivity across various facilities [2]. - Actelis has established a strong presence in the defense sector, with its products being used for barracks connectivity, surveillance systems, and VoIP upgrades [5]. Competitive Advantages - Key advantages of the GL800 include rapid deployment capabilities, immediate gigabit-grade connectivity, and Department of Defense-certified security [8]. - The solution is recognized for its reliability and performance in challenging environments, further supported by advanced remote monitoring and management features [8].

Core Insights - Actelis Networks has received an order from a major North American railway group to support the implementation of its Positive Train Control (PTC) system across challenging track sections [1][3] - PTC systems are designed to enhance rail safety by preventing train-to-train collisions, derailments from excessive speed, and movement through incorrectly positioned switches [2] - Actelis' hybrid-fiber networking technology maximizes bandwidth over existing copper infrastructure while ensuring network diversity through wireless and fiber connections [4] Company Overview - Actelis Networks is a leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including rail, military, and utility sectors [6] - The company's technology is engineered to perform in extreme conditions, providing fast deployment options that avoid significant costs and delays associated with new infrastructure installation [5][8] - Actelis' solutions are designed to maintain network integrity in remote locations and provide uninterrupted connectivity during extreme weather events [8]

Core Insights - Actelis Networks, Inc. has received an order from a major North American railway group to support the implementation of its Positive Train Control (PTC) system across challenging track sections [1][3] - PTC is a significant advancement in rail safety, aimed at preventing train-to-train collisions, derailments from excessive speed, and incorrect switch movements [2] - The railway's selection of Actelis' technology highlights its capability to operate in extreme environmental conditions, ensuring network continuity amidst challenges like avalanches and severe weather [3][5] Company Technology - Actelis' hybrid-fiber networking technology allows railway operators to maximize bandwidth over existing copper infrastructure while integrating wireless and fiber connections for network diversity [4] - The technology is designed to provide essential redundancy for safety-critical systems, ensuring no downtime [4] - Actelis' solutions are engineered for rapid deployment, avoiding the high costs and delays associated with new infrastructure installation [5][8] Industry Context - The implementation of PTC systems is part of a broader industry initiative to enhance safety across North America's rail networks, particularly in areas with unique environmental challenges [3] - The company's technology supports mission-critical safety systems with military-grade security, maintaining network integrity in remote locations [8]

Financial Data and Key Metrics Changes - Total revenue increased by 38% to $7.8 million, up from $5.6 million in 2023 [20] - Gross margin improved to 55% for the full year compared to 34% in 2023, reflecting a 125% year-over-year improvement [21] - Operating loss decreased to $3.8 million compared to $7.4 million in 2023, a reduction of 49% [24] - Net loss for the year was $4.4 million compared to $6.3 million in 2023, with loss per share shrinking by 67% to $0.85 [24] Business Line Data and Key Metrics Changes - New orders in the federal/military sector grew by 150% year-over-year [10] - Software and services new orders tripled, driven by a large North American telecom customer [11] - The GigaLine 900 solution family gained significant traction with numerous trials and installations underway [11] Market Data and Key Metrics Changes - North American revenues increased by 134%, representing a larger portion of total business [20] - Major deployments secured in smart city and transportation sectors, including cities like Washington, DC, and Seattle [12] Company Strategy and Development Direction - The company is prioritizing three strategic initiatives for 2025: introducing MetaShield into the installed base, strengthening go-to-market execution, and focusing on operational efficiency [15][18] - The introduction of MetaShield aims to generate recurring revenue through subscriptions and integrated network management software [15] - The company is positioned to capitalize on major infrastructure projects, particularly in federal and military markets [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, particularly in federal, city transportation, and IoT markets, which are valued in the tens of billions [38] - The company is optimistic about its growth prospects, emphasizing the importance of strategic partnerships and market penetration [30] - Management acknowledged the challenges of predicting revenue due to the lumpiness of orders but expects growth to stabilize over time [36] Other Important Information - The company has nearly repaid all outstanding debt, with only a $774,000 bank credit line remaining [25] - Cash and cash equivalents stood at $2.3 million at year-end, down from $5.5 million in 2023, primarily due to debt repayment [26] - The company is evaluating selective debt facilities to support growth initiatives while minimizing equity dilution [27] Q&A Session Summary Question: What caused the sequential decline in revenue from Q3 to Q4? - Management explained that the business is characterized by lumpiness in orders, making it difficult to predict exact timing for larger orders and shipments [36] Question: Are expenses stable, or will they increase with growth? - Management indicated that while expenses have been decreasing, there will be controlled increases in sales and marketing to drive growth [42][44] Question: How is the company positioned to benefit from military spending in Europe? - Management clarified that their focus is on US military sales, treating international deployments similarly to domestic ones [47] Question: Is there a concern about a reverse stock split due to low share price? - Management stated there are no current plans for a reverse split and expressed confidence in future growth to improve share value [56] Question: What is the future outlook for the company financially and business-wise? - Management highlighted ongoing efforts in federal markets, IoT, and MDU markets, with expectations for growth but no guarantees of profitability in 2025 [108]

Financial Data and Key Metrics Changes - Total revenue increased by 38% to $7.8 million from $5.6 million in 2023 [20] - Gross margin improved to 55% from 34% in 2023, reflecting a 125% year-over-year improvement [21] - Operating loss decreased to $3.8 million from $7.4 million in 2023, a reduction of 49% [24] - Net loss for the year was $4.4 million compared to $6.3 million in 2023, with loss per share shrinking by 67% to $0.85 [24] Business Line Data and Key Metrics Changes - New orders in the federal/military sector grew by 150% year-over-year [10] - Software and services new orders tripled, driven by a large North American telecom customer [11] - The GigaLine 900 solution family gained significant traction with numerous trials and installations [11] Market Data and Key Metrics Changes - North American revenues increased by 134%, representing a larger portion of total business [20] - Major deployments secured in smart city and transportation sectors, including Washington, DC, and various European municipalities [12] Company Strategy and Development Direction - The company is focusing on three strategic initiatives for 2025: introducing MetaShield into the installed base, strengthening go-to-market execution, and enhancing operational efficiency [15][18] - The introduction of MetaShield aims to generate recurring revenue through subscriptions and integrated network management software [15] - The company is positioned to capitalize on major infrastructure projects, particularly in federal and military markets [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth, particularly in federal, city transportation, and IoT markets, which are valued in the tens of billions [38] - The company is focused on disciplined execution to capitalize on market opportunities and believes it is just beginning to tap into the potential of its target markets [30] Other Important Information - The company repaid nearly all outstanding debt, with only a $774,000 bank credit line remaining as of December 31, 2024 [25] - Cash and cash equivalents stood at $2.3 million at year-end, down from $5.5 million in 2023, primarily due to debt repayment [26] Q&A Session Summary Question: What caused the sequential decline in revenue from Q3 to Q4? - Management indicated that revenue fluctuations are normal due to the timing of larger orders and shipments, and they expect growth to continue over time [36][38] Question: Are expenses stable, or will they increase with growth? - Management confirmed that while expenses have been reduced, they plan to increase spending in sales and marketing to drive growth, but will remain prudent in overall spending [42][45] Question: How is the company positioned to benefit from military spending in Europe? - The company clarified that it focuses on US military sales, treating overseas operations similarly to domestic ones [47] Question: Is there a plan for a reverse stock split due to low share prices? - Management stated there is no current plan for a reverse split and expressed confidence in future growth improving share value [56] Question: What is the future outlook for the company financially and business-wise? - Management is optimistic about growth in federal, IoT, and MDU markets, but cannot guarantee profitability in 2025 [108]

Financial Performance - Total revenue for 2024 reached $7.8 million, a 38% increase from $5.6 million in 2023, driven by strong performance in government, military, and smart city sectors[2] - Gross margin improved to 55% in 2024, up from 34% in 2023, representing a 125% year-over-year increase, reflecting a strategic focus on higher-margin segments[2] - Net loss decreased to $4.4 million in 2024 from $6.3 million in 2023, with loss per share shrinking by 67% to $0.85, indicating progress towards profitability[2][13] - Total revenues for 2024 increased to $7,760,000 from $5,606,000 in 2023, representing a growth of approximately 38.5%[26] - Gross profit for 2024 was $4,270,000, compared to $1,900,000 in 2023, indicating a significant improvement in profitability[26] - The net comprehensive loss for 2024 was $4,374,000, an improvement from a loss of $6,286,000 in 2023[26] - The company reported a basic and diluted net loss per share of $0.85 for 2024, compared to $2.61 in 2023, showing a reduction in loss per share[26] - GAAP net loss for 2024 was $(4,374) compared to $(6,286) in 2023, indicating an improvement in financial performance[34] - Non-GAAP adjusted EBITDA margin for 2024 was 44.8%, up from 10.8% in 2023, reflecting significant operational efficiency gains[34] - The adjusted EBITDA for 2024 was $3,481, compared to $606 in 2023, showcasing a strong recovery in profitability[34] Cost Management - Operating expenses declined by 13% year-over-year, building on a 6% reduction achieved in 2023, due to a comprehensive cost management initiative[2] - Operating expenses decreased to $8,028,000 in 2024 from $9,263,000 in 2023, a decline of approximately 13.3%[26] - Interest expense for the year was $6,187, indicating a stable cost of capital management[34] - Other financial expenses amounted to $(1,893), suggesting a focus on controlling non-operational costs[34] Asset and Liability Management - Total current assets rose to $6,903,000 in 2024 from $5,912,000 in 2023, an increase of about 16.8%[22] - Total liabilities decreased to $5,240,000 in 2024 from $10,835,000 in 2023, a reduction of approximately 51.7%[24] - The total shareholders' equity increased to $2,757,000 in 2024 from $229,000 in 2023, indicating a significant improvement in the company's financial position[24] - Cash and cash equivalents at the end of 2024 were $1,967,000, up from $620,000 in 2023, reflecting a substantial increase[29] - The company has nearly repaid all outstanding debt, with only a $0.77 million bank credit line remaining, enhancing financial flexibility[3] Market Growth and Strategy - New orders from Federal and Military sectors grew by 150% year-over-year, positioning the company to capture additional market share in infrastructure modernization[5] - Actelis is prioritizing growth in recurring revenue through MetaShield subscriptions and network management software offerings for 2025[7] - The company plans to expand its industry presence in 2025 through participation in major events and exhibitions to raise awareness of its capabilities[7] - The company is focusing on strategic partnerships to accelerate market penetration and scale growth in 2025 and beyond[3] - The GigaLine 900 solution for Multi-Dwelling Units (MDUs) has generated significant interest, with numerous trials and installations underway globally[5] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[34] Research and Development - Research and development expenses totaled $444, demonstrating the company's commitment to innovation and product development[34] - Fixed asset depreciation expense was $262, highlighting ongoing investments in capital assets[34]