Financial Highlights - Sales in 2025 reached $130 million, increasing by 11% year-on-year [1] - Gross profit was $74 million, a year-on-year growth of about 15.5%, with a gross margin of 57%, an increase of 2.1 percentage points [2] - Net profit reached $45.5 million, a year-on-year increase of 19.5%, with a net profit margin improving to 34.9% [2] - Diluted EPS came to $0.0411 per share, which increased 19.1% year-on-year [2] Business Segment Performance - Fixed First Connectivity segment revenue increased by 3.5% year-on-year to about $18 million [3] - Mobile First Connectivity segment increased by 10.4% year-on-year to $73 million, driven by strong growth in high-end Mobile First routers and Starlink equipment [3] - Warranty and support services segment reached $28 million, up 12.3% year-on-year, while software licenses segment reached about $11 million, up 34% year-on-year [4] - Recurring revenues in warranty and support services and software licenses totaled about $38 million, an increase of 17% year-on-year, now accounting for close to 29% of total sales [4] Geographic Performance - North America sales increased 2.1% year-on-year to $76 million, accounting for about 59% of total sales [5] - EMEA sales increased about 28% year-on-year to $37 million, now accounting for about 29% of total sales [5] - Sales to Asia increased to $12 million, growing 36% year-on-year, attributed to large multi-year projects and growth in new markets like Japan [5] - Sales in Australia increased 14% year-on-year, making up about 4% of total sales [6] Company Strategy and Industry Competition - The company plans to spin off its North America business to better address different market requirements and improve competitiveness [12][13] - The focus is on becoming the market leader in various segments, including teleoperations and maritime connectivity [24] - The company aims to leverage AI tools to maintain lean operations and enhance product offerings [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges such as increased memory and component costs but believes the business model can mitigate these impacts [10][11] - The company is optimistic about growth in the U.S. and Europe, viewing them as major markets for future expansion [32] - Management emphasizes the importance of reliable connectivity across various sectors, including logistics and healthcare [86][87] Other Important Information - The company maintains a strong financial position with no debts and robust operating cash flows [7] - Trade receivables turnover days remained at 67 days, while inventory turnover days slightly decreased to 112 days [7] Q&A Session Summary Question: Why not apply for marine certifications for cybersecurity compliance? - Management believes cybersecurity concerns can be addressed through third-party products rather than integrating them into their own [15][17] Question: Why not provide WireGuard support? - Management acknowledges the feedback and plans to provide support but emphasizes their focus on reliable connectivity rather than being feature-rich [19] Question: Will the spin-off unlock value? - Management views the spin-off as a way to better meet market demands and improve operational efficiency rather than purely a financial maneuver [23][26] Question: What is the impact of the Starlink business? - The Starlink business is performing well, with plans for integrated products to enhance deployments [35][36] Question: How will the spin-off affect dividend payouts? - Management plans to continue distributing excess cash to shareholders, with the approach remaining consistent post-spin-off [33][49] Question: Will product development become independent for each entity post-spin-off? - Yes, both companies will operate independently, allowing for tailored product development strategies [71] Question: How will AI be integrated into operations? - AI is being used to enhance product development and operational efficiency, with potential applications in predicting connectivity needs [80][81]