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Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $242.9 million, a sequential increase of $15.1 million or 7% and an increase of $17.4 million or 8% year over year [17][18] - Non GAAP gross margin for Q4 was 42%, a sequential decline of 11 basis points, while non GAAP operating profit was $7.9 million or 3.3% of revenue, up from $2.5 million or 1.1% in Q3 2024 [19][20] - For the full year 2024, non GAAP gross margin expanded to 41.9% from 39.3% the prior year, and non GAAP operating profit turned positive for the full year compared to negative figures earlier in the year [15][16] Business Line Data and Key Metrics Changes - The Network Solutions segment generated $197 million, accounting for approximately 81% of total revenue in Q4, while the Services and Support segment delivered $45.8 million or 19% of total revenue [18] - Optical networking revenue increased by 16% sequentially to $81.6 million, while subscriber solutions revenue was $88.5 million, down 2% sequentially [18][19] - Access and aggregation solutions grew 8% sequentially, driven by fiber footprint expansion and network upgrades [10] Market Data and Key Metrics Changes - U.S. revenue increased by 10% quarter over quarter, with non U.S. revenue accounting for 57% of total revenue [6][18] - The company added 18 new customers in the optical networking segment, including a mix of fiber broadband customers, government agencies, and large enterprises [8][9] Company Strategy and Development Direction - The company aims to strengthen its balance sheet and is in the process of selling unused corporate real estate and monetizing non-core assets [23] - The focus is on expanding fiber networks and enhancing customer experiences through better insights and automation [13][14] - The company anticipates moderately higher operating expenses for 2025 in line with normalized payrolls and benefit increases [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in the optical segment, citing improvements in customer inventory levels and demand for scalable, secure optical networks [9][10] - The environment has improved significantly over the past six months, with increased bookings and a more positive outlook for the upcoming quarters [33][34] - The company expects revenue for Q1 2025 to range between $237.5 million to $252.5 million, with a non GAAP operating margin between 4% to 5% [25][24] Other Important Information - The company achieved net cash provided by operating activities of $104.3 million in 2024, a significant improvement from a net cash used of $45.6 million in 2023 [16][22] - Free cash flow for the year was $39.9 million, an increase of $128.7 million from the prior year [22] Q&A Session Summary Question: Balance sheet and net cash position - Management confirmed expectations to reduce inventory and generate free cash flow, aiming for a net cash position by the end of the year [29][30] Question: Sustainability of telecom recovery - Management noted that visibility is based on purchase orders and backlog, with a positive trend observed in bookings [32][33] Question: Inventory goals and management - The company aims to increase inventory turns back to the four times range, with a gradual decline in inventory anticipated [38][40] Question: Revenue growth expectations - Management refrained from providing full-year guidance but acknowledged a positive trend in the business environment [41][42] Question: Excess and obsolete inventory risks - Management indicated a significant reserve built for inventory, suggesting a safe position regarding excess and obsolete inventory [47][48] Question: Impact of BEAD program - Management stated that there is no significant impact from the BEAD program on current operations [80]