Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.5 million, down 16.7% from $102.7 million in Q3 2024 [17] - Non-GAAP gross margin was 35%, slightly up from the prior year period [18] - Non-GAAP net income for Q3 2025 was $1.7 million or $0.02 per diluted share, compared to $14.1 million or $0.16 per diluted share in Q3 2024 [22] - Free cash flow generated in Q3 2025 was $3.3 million, reflecting strong cash generation [23] Business Line Data and Key Metrics Changes - North America was the strongest region, contributing $36 million in revenue, while India contributed $24.4 million [17] - Research and development expenses were $6.8 million, down from $8.6 million in Q3 2024 [18] - Sales and marketing expenses increased to $12 million from $10.4 million in Q3 2024, reflecting increased business in North America [19] Market Data and Key Metrics Changes - Visibility improved in North America and India, with renewed order flow from a major carrier in India [14][15] - The company is optimistic about growth in 2026, driven by opportunities in both CSPs and private networks segments [15] Company Strategy and Development Direction - The company is focusing on high-capacity, low-latency connectivity solutions driven by AI and data-intensive applications [8] - Ceragon's E-band and point-to-multipoint offerings are positioned to address network capacity and resiliency challenges [9][10] - The company is pursuing additional potential acquisitions to enhance its capabilities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4 and 2026, citing improved visibility and a strong funnel of opportunities [28][29] - The company is encouraged by the growth in private networks and the demand for higher capacity driven by AI [32][33] - Management noted that the impact of the U.S. government shutdown has not been significant so far [51] Other Important Information - The company has been awarded contracts for private 5G and Wi-Fi technologies, showcasing its capabilities in managed services [12] - The balance sheet remains solid, with cash position increasing to $43 million [22] Q&A Session Summary Question: Outlook for the fourth quarter and 2026 growth - Management is optimistic about Q4, driven by visibility from India and North America, and sees potential for growth in 2026 across all regions [28][29] Question: Drivers of tier one ramp-up in North America - The increase is driven by demand for higher capacity due to 5G and fixed wireless access [37] Question: Update on E2E and commercial activity - E2E is meeting plans, with significant opportunities expected to materialize [39] Question: Supply chain concerns regarding component availability - There are slight increases in component costs, but no significant impact on overall costs is anticipated [40][41] Question: Defense and security business opportunities - The company sees numerous opportunities in defense and security, particularly with its 60 GHz product [56][58]

Financial Data and Key Metrics Changes - Commvault achieved a record $47 million in Net New ARR, with Subscription ARR rising 30% to $894 million and total revenue growing 18% to $276 million [4][14] - Total ARR grew 22%, surpassing $1 billion two quarters earlier than the original target [4][14] - SaaS ARR increased 56% to $336 million, exceeding the original target of $330 million [15] Business Line Data and Key Metrics Changes - Subscription ARR now constitutes 86% of total ARR, up from 81% a year ago [15] - Strong double-digit growth was observed in identity and resilience offerings, which represented nearly 40% of Net New ARR [16] - Active Directory usage tripled year-over-year, indicating strong demand for identity protection services [16] Market Data and Key Metrics Changes - Commvault moved and protects approximately eight exabytes of customer data in the cloud, reflecting a greater than 40% CAGR over the past five years [8] - The number of SaaS customers grew to nearly 9,000, representing a 40% increase year-over-year [9] Company Strategy and Development Direction - The company focuses on three key growth drivers: demand for the Commvault Cloud Cyber Resilience platform, the shift to the cloud, and innovation in product offerings [5][10] - Commvault aims to enhance its partner ecosystem and has announced a partnership with BeyondTrust to strengthen identity security [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong market demand and the ability to take market share, driven by innovation and customer support [22][23] - The company anticipates total ARR growth of 18%-19% year-over-year for fiscal 2026, with subscription ARR expected to increase by 24%-25% [21][22] Other Important Information - Commvault closed a private offering of $900 million in convertible senior notes, enhancing its capital flexibility [19] - The company repurchased $131 million of stock during the quarter, indicating a commitment to returning value to shareholders [19] Q&A Session Summary Question: Can you elaborate on the shift in term duration? - Management noted that customers are opting for shorter contract durations to maintain flexibility as they transition to the cloud, which has impacted average deal size [26] Question: How does Commvault view the competitive landscape? - Management believes that while the market is competitive, Commvault is gaining share, particularly in the SaaS segment, which is growing at 55% ARR [31][33] Question: Is the backup modernization cycle winding down? - Management disagreed, stating that the frequency and scale of cyber attacks continue to drive demand for modernization and resilience solutions [36] Question: What are the drivers of the term subscription business? - On-premise data growth remains a significant driver, alongside the increasing importance of identity and data security offerings [50][52] Question: Are you seeing increased cross-sell between term and SaaS customers? - Management confirmed that the percentage of SaaS customers also using term products is increasing, reflecting a growing trend towards hybrid solutions [54] Question: What is the outlook for capital allocation and share buybacks? - The company maintains a consistent capital allocation strategy, with a focus on share buybacks, M&A, and organic investments [83]

Financial Performance - Commvault Systems reported quarterly earnings of $1.03 per share, exceeding the analyst consensus estimate of 93 cents per share [1] - The company achieved quarterly sales of $275.04 million, surpassing the analyst consensus estimate of $262.43 million [1] Growth Metrics - Commvault ended the year with over 12,000 subscription customers and reported a 45% increase in subscription revenue in Q4 [2] - The company provided FY2026 sales guidance of $1.130 billion to $1.140 billion, compared to estimates of $1.10 billion [2] Stock Performance and Analyst Ratings - Commvault shares fell 1.3% to trade at $166.52 following the earnings announcement [3] - Analysts have adjusted their price targets for Commvault, with RBC Capital raising it from $175 to $185, Wells Fargo from $180 to $190, and Oppenheimer from $180 to $200 [8]

Core Insights - The 2025 Global 6G Technology and Industry Ecosystem Conference focused on addressing complex network threats and ensuring high system availability through discussions on 6G network resilience and inherent security [1][2][4] - Experts emphasized the importance of network resilience as a key quality attribute for 6G systems, which is crucial for reliable operation in complex environments [1][4] Group 1: Challenges and Solutions - Two main challenges for 6G identified: the realization of integrated visions (space, ground, human, and machine networks) and the implementation of resilient networks [2] - A proposed solution includes a hyper-converged network architecture that supports dynamic loading and independent evolution of generative network modalities, addressing security concerns [2] Group 2: Security and Resilience - Network resilience is highlighted as a critical aspect of the 6G vision, with a focus on planning security capabilities and addressing device security as foundational [4] - Recommendations include initiating key technology research and prototype development for inherent security and terminal security, along with a focus on data privacy and identity authentication [4] Group 3: AI and Network Security - The potential of large language models in enhancing 6G security was discussed, with a shift from passive defense to proactive evolution in security measures [5] - A new network security protection system is proposed, emphasizing simplicity and efficiency, with inherent security as the core [5] Group 4: Collaboration and Future Directions - The successful "Network Resilience" parallel meeting is expected to strengthen collaboration among academia, industry, and research, facilitating the transformation of 6G technological achievements into practical applications [6] - Future considerations include enhancing network resilience and disaster recovery capabilities, achieving consensus on inherent security, and systematic planning for new security technologies [5][6]

Core Insights - The 2025 Global 6G Technology and Industry Ecosystem Conference highlighted the importance of network resilience and security in the development of 6G technology [1][2] - Experts discussed the challenges of achieving the 6G vision, particularly the "SMV dilemma" which involves balancing service commitment, reusability, and diversity [2] - The need for a unified, scientifically validated device security standard was emphasized as a foundational element for network resilience [3] Group 1: Network Resilience and Security - Network resilience is identified as a key quality attribute for realizing the 6G vision, with a focus on planning security capabilities and addressing security technology challenges [3] - The concept of a hyper-converged network architecture was proposed to tackle security issues across network, functional, and data dimensions [2] - The transition from passive to active defense mechanisms in 6G networks is essential, with AI playing a crucial role in enhancing security capabilities [4][5] Group 2: Industry Collaboration and Standards - Collaboration among major telecom operators like China Telecom, China Mobile, and China Unicom is vital for advancing 6G network resilience through intelligent and secure architectures [1][4] - The establishment of a standardized framework for 6G security architecture is necessary to achieve consensus within the industry [5] - Ongoing research and development efforts are needed to address emerging security challenges, including data privacy and identity authentication [3][5]