Financial Data and Key Metrics Changes - Revenue for the first quarter was $82.9 million, down 2% year over year, but within the upper end of guidance [5][27] - Non-GAAP gross margins were 57.7%, up from 51.8% in the previous year, marking a 590 basis points year-over-year expansion [5][27] - Non-GAAP operating expenses were $38.5 million, down $2.2 million from the previous year [5][28] - Non-GAAP EPS was $0.33, compared to $0.09 in Q1 2024, representing significant growth [6][30] - Adjusted EBITDA was $12.5 million, or 15% of sales, compared to $5.6 million in the previous year [29] Business Line Data and Key Metrics Changes - The Americas and European regions saw a revenue decline of 31% each, while the Asia Pacific region experienced a 1% growth [27] - The company launched several new products, including LEAP and BLINK, which are expected to contribute positively to revenue in the upcoming quarters [12][42] Market Data and Key Metrics Changes - The underlying market conditions remained challenging, particularly in the Americas due to tariff-related uncertainties [10][32] - Despite the difficulties, net orders grew by 6% year over year, indicating a positive trend in backlog [9][10] Company Strategy and Development Direction - The company is focused on a three-phase strategy to create shareholder value, with the first phase emphasizing operational excellence and the second phase targeting organic growth [6][7] - The third phase will involve selective higher-risk investments as the company strengthens its cash position [7] - The company aims to refresh its product portfolio and develop global partnerships to drive growth [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, noting that demand is currently outpacing Q1 levels [25][40] - The company is prepared for potential challenges related to tariffs and has plans in place to mitigate impacts [20][21] - Management believes that tariffs could ultimately become a net positive as companies look to diversify supply chains [25] Other Important Information - The company has established a strong cash position, with cash and short-term investments totaling $102.6 million at the end of the quarter [30] - The company is actively managing its partnerships and expects contributions from new agreements in the upcoming quarters [17][18] Q&A Session Summary Question: How is the hardware business shaping up for Q2? - Management noted that while they historically see a larger portion of revenues late in the quarter, they are currently seeing a decent start to Q2, with cautious optimism despite planning for a potential 10% decline in the hardware market [37][39] Question: What is the expected impact of new products on Q2? - Management indicated that new products like LEAP and BLINK are expected to contribute positively in Q2, with strong pre-orders for BLINK already noted [41][42] Question: Can you provide insights on order growth and backlog? - Management clarified that the order growth was not specifically aimed at building backlog, but they did see some late orders that could help solidify their outlook for Q2 [52][55] Question: Are there any delays in product launches or partnerships due to the current environment? - Management confirmed that they do not anticipate delays in product launches or partnerships, viewing the current environment as an opportunity for growth [56][58]