Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [19] - Non-GAAP net income was $800,000, compared to a net loss of $900,000 in the same quarter last year [21] - Positive operating cash flow of $1.7 million was achieved, with cash and short-term investments totaling $60.7 million at the end of the quarter [21] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [19] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [6][19] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [20] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in Q1, with significant growth expected from their new mobile service [30] - The company is experiencing strong traction in partnerships with major telecom operators like Vodafone and Verizon, which are expected to drive future growth [11][52] Company Strategy and Development Direction - The company is focused on a "Security First" strategy, aiming to enhance cybersecurity offerings and expand partnerships with telecom providers [5][8] - There is a strong emphasis on converting a growing pipeline of opportunities into new partnerships and agreements, particularly in the CCaaS and smart product segments [9][15] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity services [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to increase by around 50% or more year-over-year [18] - The rise of AI and increasing demand for cybersecurity solutions are seen as key drivers for future growth [17] - Management acknowledged the competitive nature of the market but remains confident in the company's ability to capitalize on emerging opportunities [41] Other Important Information - The company has made significant progress in expanding its partnership with Verizon Business, which now includes a broader customer base [9][10] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a robust pipeline of opportunities [14][15] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, so minimal contribution was expected in Q1, with significant growth anticipated in Q2 [25][26] Question: What was the big driver for CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly with Vodafone and other carriers [27][28] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, various factors could influence the final outcome [29] Question: Did Verizon become the largest contributor to CCaaS revenue? - Yes, Verizon's initial launch of mobile services and traction from fixed wireless access made it the top contributor [30] Question: Are there opportunities to cross-sell CCaaS solutions to smart business customers? - Management confirmed that synergies exist between the two business units, allowing for potential cross-selling opportunities [34] Question: Are there large deals in the pipeline? - Management noted several 8-figure deals in the pipeline, driven by both existing and new projects [45][48] Question: How is the partnership with Vodafone progressing? - Some revenues have already been recognized, with expectations for continued growth from the partnership [52][53]