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%, an increase of 2.3 percentage points [2] - Diluted EPS came to $0.0411 per share, which increased 19.1% year-on-year [2] 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, affected by tariff uncertainties [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 [13][14] - The focus is on becoming the market leader in teleoperations and maritime connectivity, with a goal to dominate various vertical markets [25] - The company is leveraging AI tools to maintain lean operations and enhance product offerings [15] Management Commentary on Operating Environment and Future Outlook - Management acknowledges challenges from increased memory and component costs but believes the business model can mitigate these impacts [12] - The company is optimistic about growth in the U.S. and Europe, viewing them as major growth markets [33] - Management emphasizes the importance of reliable connectivity across various sectors, including logistics and autonomous systems [10][11] Other Important Information - The gross margin improved to 57% from 54.9% last year, attributed to a favorable product mix and economies of scale [6] - The company maintains a strong financial position with no debts and strong operating cash flows [7] Q&A Session Summary Question: Why not apply for marine certifications for cybersecurity compliance? - Management believes cybersecurity concerns can be addressed with third-party products and does not see integration as essential [16][18] 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 [20] Question: Will the spin-off unlock value? - Management views the spin-off as a way to better meet market needs and improve operational efficiency rather than purely a financial maneuver [24] Question: What is the impact of Starlink business? - The Starlink business is performing well, with plans for integrated products to enhance deployments [36][37] Question: Will product development become independent post-spin-off? - Yes, both companies will operate independently, allowing for tailored product development [70] Question: How will the company manage the spin-off? - The company aims to maintain operational efficiency and continue distributing excess cash to shareholders [34][35]