Financial Data and Key Metrics Changes - Revenue grew year over year by 28% to $38 million, continuing record performance [3][4] - Net income increased by 54% year over year to $2.8 million, demonstrating effective revenue conversion into profit [4] - Cash and equivalents rose to $7.3 million from $3.6 million at year-end, with shareholders' equity at $25 million, accounting for 66% of the balance sheet [6] Business Line Data and Key Metrics Changes - International revenues grew by 24% year over year, primarily driven by the Indian market [3][4] - The RFID Division faced challenges due to geopolitical tensions and currency fluctuations, but a rebound in demand is anticipated [12][13] Market Data and Key Metrics Changes - The company is strategically expanding overseas, particularly targeting India as a major market for wire and connector assembly [3] - The defense sector's growth is supported by increased global defense budgets and replenishment of Israeli defense forces' inventory [5] Company Strategy and Development Direction - The company aims to enhance organic growth through strategic actions and international expansion, particularly in the defense sector [5] - Plans to open a branch office in India are under consideration to facilitate sales and reduce costs [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in the RFID Division due to operational adjustments and improving geopolitical conditions [12][13] - The company anticipates continued growth in the defense segment, with a historical average growth rate of about 7% per year [17][32] Other Important Information - The company has a stable backlog exceeding $24 million and is raising its full-year 2025 financial guidance [4] - The company is exploring M&A opportunities in the Israeli defense sector, targeting profitable companies with complementary products [20][21] Q&A Session Summary Question: Can you highlight new customer opportunities? - The company is focusing on overseas clients, particularly from India, with recent engagements involving a large delegation from India [10][11] Question: When will revenues from new customers impact P&L? - Revenues from international markets have already impacted the P&L, with a 24% increase noted [11] Question: Can you explain the loss in the RFID Division? - The RFID Division faced challenges due to geopolitical issues and currency devaluation, but a rebound is expected [12][13] Question: How has currency impact affected P&L? - The US dollar devalued against the Israeli shekel by about 11%, creating approximately $500,000 in additional cost pressure [14][15] Question: What is the impact of the end of the war in Gaza? - The defense segment is expected to grow despite geopolitical tensions, while the civil market may not benefit from the end of the conflict [16][32] Question: What are the plans for M&A? - The company plans to close an M&A deal within the next year, targeting profitable companies in the defense sector [34][40]