Financial Data and Key Metrics Changes - Total revenues for Q1 2026 were $107.3 million, an increase of 21.4% compared to $88.4 million in Q1 2025 [5][12] - Non-GAAP gross margin was 33.8%, up from 23.2% in the prior year [12][13] - Adjusted EBITDA for the quarter was $9.1 million, an increase of $16.8 million year-over-year [15] - Non-GAAP EPS was $0.43, significantly up from a loss of $1.30 in the year-ago period [14][15] Business Line Data and Key Metrics Changes - Private networks remain a core focus, with significant project bookings in public safety and utility networks [5][6] - The utility vertical saw a large multi-state network modernization project worth approximately $8 million [6] - The introduction of the Apriza LTE/5G router solution for public safety vehicles marks a significant expansion in offerings [7][9] Market Data and Key Metrics Changes - North America accounted for 49.1% of total revenues, with $52.6 million, a 24.7% increase from the previous year [12] - International revenues were $54.7 million, an 18.3% increase driven by mobile network operator business and growing private network demand [12][13] - The global cellular router and gateway market is projected to grow at a 12% annual rate, reaching $2.8 billion by 2028 [7][8] Company Strategy and Development Direction - The company aims to capture additional market share in private networks and mobile networks [16] - The strategy includes leveraging the technology acquired from the 4RF acquisition to enhance product offerings [9][22] - The company maintains its fiscal 2026 revenue guidance of $440-$460 million and Adjusted EBITDA guidance of $45-$55 million [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiscal 2026 setup, particularly in U.S. public safety and private networks [11][19] - The impact of the U.S. federal government shutdown is expected to be minimal, with some revenues potentially pushed to Q3 [10][19] - There is optimism regarding the BEAD program, with expectations for growth in fixed wireless access [48][50] Other Important Information - The company has over $450 million in net operating losses, which will minimize cash tax payments for the foreseeable future [14] - Cash and marketable securities at the end of Q1 were $64.8 million, with outstanding debt of $106.5 million [15] Q&A Session Summary Question: Sequential outlook for December quarter - Management noted strong expectations from U.S. public safety, but remained cautious due to the early fiscal year and potential government shutdown impacts [19] Question: Growth potential from 4RF and MDU opportunities - Management highlighted significant synergy from the 4RF acquisition and expressed confidence in the MDU market's growth potential [21][22] Question: Performance in India - India contributed mid-single-digit revenue percentages, with expectations for a potential upgrade cycle impacting future growth [26][27] Question: Gross margin expectations for fiscal 2026 - Management indicated potential for gross margin growth by a percentage point or two throughout the year [28] Question: Competitive landscape for Apriza router - The mobile cellular router market is valued at $2.8 billion, with management identifying a significant opportunity for growth [33][34] Question: Impact of federal government shutdown - Management estimated a worst-case scenario of 1% pull-in and 4%-5% push-out of revenues due to the shutdown [36] Question: Update on BEAD program - Management expressed growing optimism regarding BEAD funding and its potential impact on revenue growth [48][50]

Financial Data and Key Metrics Changes - The first quarter revenue was $88.7 million, a slight increase of 0.2% from $88.5 million in Q1 2024 [16] - Non-GAAP gross profit was $29.7 million, down 8.6% from $32.5 million in Q1 2024, with a non-GAAP gross margin of 33.5% compared to 36.7% in the prior year [16][20] - Non-GAAP net income for Q1 2025 was $2.6 million or $0.03 per diluted share, down from $4.7 million or $0.05 per diluted share in Q1 2024 [20] Business Line Data and Key Metrics Changes - Revenue from India was $42.9 million, an increase of 65% year over year, with bookings at the highest level since Q1 2024 [9][10] - North America revenue was $17.6 million, rebounding from $13.4 million in Q4 2024, with contributions from E2E Technologies included [10][16] - Managed services are a strategic priority, with strong interest observed at Mobile World Congress, indicating a shift towards software-driven services [8] Market Data and Key Metrics Changes - The company noted strong demand for microwave and millimeter wave products, particularly in North America and Europe [7] - E2E Technologies' bookings in Q1 outperformed expectations, contributing to revenue in line with forecasts [9] - The tariff dynamics are creating instability for certain customers, particularly in private networks, but overall customer activity remains steady [11] Company Strategy and Development Direction - The company is focused on expanding its presence in private networks and millimeter wave markets, with ongoing evaluations of strategic M&A opportunities [12][13] - The acquisition of E2E Technologies is expected to enhance capabilities in private networks, particularly in the energy and utilities sector [9] - The shift to software-driven services is anticipated to increase annual recurring revenue and improve margins compared to traditional hardware business [8] Management's Comments on Operating Environment and Future Outlook - Management reiterated the 2025 revenue guidance of $390 million to $430 million, expecting a significant uptick in the second half of the year, primarily driven by India [23][37] - The company remains vigilant regarding tariff impacts but believes the net effect on profitability will be minimal [12] - Positive demand signals were observed during the Mobile World Congress, reinforcing the company's strategic alignment for long-term success [6] Other Important Information - The cash position at the end of Q1 2025 was $27.7 million, down from $35.3 million at the end of 2024, primarily due to acquisition-related cash payments [21] - Inventory increased slightly to $62.3 million as preparations for new E band products are underway [21] Q&A Session Summary Question: Strength in bookings in India - Management indicated that bookings are not concentrated on a single customer but distributed among two main customers, with potential for a third significant project [24][25] Question: Potential significant opportunity in North America - Management described opportunities in North America as potentially meaningful, with estimates of over $10 million annually for a few years [27] Question: Gross margin expansion opportunities - Management noted that gross margin expansion could come from improved revenue mix, economies of scale, and increased sales of software and private network solutions [28][29] Question: Growth in India and its importance - Management confirmed that the main growth uptick is expected in the second half of the year, driven by significant deployments in India [37] Question: Impact of tariffs on customer decision timelines - Management reported no significant changes in buying patterns from CSPs, although there were some hesitations in closing deals on private networks [40] Question: Demand for private networks and geographic performance - Management highlighted increased interest in point-to-multipoint solutions and noted successful POCs in both North America and Europe [41][42] Question: Competitive environment in North America and Europe - Management observed no major changes in competition but noted increased interest in replacing Chinese vendors in Europe [50][51]