Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $187 million, representing a 7% year-over-year increase driven by strong growth in the cybersecurity area [6][18] - Non-GAAP diluted earnings per share was $0.34, an increase of approximately 21% year-over-year [6][19] - Gross profit margin increased by 1.6 percentage points to 78.7% in the first quarter [18] Business Line Data and Key Metrics Changes - Service Assurance revenue increased approximately 1% year-over-year, driven by enterprise customer investments, while service provider revenue declined [7][20] - Cybersecurity revenue grew approximately 18% year-over-year, supported by strong demand from both enterprise and service provider customers [10][20] Market Data and Key Metrics Changes - 54% of revenue was generated from the United States, with the remaining 46% from international markets [22] - The enterprise customer vertical accounted for approximately 59% of total revenue, while the service provider vertical accounted for 41% [20] Company Strategy and Development Direction - The company is focused on driving product innovations, returning to annual revenue growth, and enhancing margins through disciplined cost management [14] - The introduction of AI-backed enhancements and integrated solutions aims to strengthen the company's position in both cybersecurity and service assurance markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic amid ongoing macroeconomic uncertainty, with a solid pipeline supporting the fiscal year outlook [14][25] - The company anticipates year-over-year second quarter revenue growth in the range of 4% to 6% and non-GAAP earnings per share between $0.43 and $0.45 [26] Other Important Information - Free cash flow for the quarter was $71.7 million, and the company repurchased approximately 761,000 shares for about $15 million [22] - The company has no outstanding balance on its $600 million revolving credit facility as of June 30, 2025 [22] Q&A Session Summary Question: Can you talk about the macro environment relative to ninety days ago and the outlook around service provider spending? - Management noted that the external environment related to tariffs is still uncertain, but the software business is less impacted. The spending climate appears similar to last year [29][30] Question: Can you provide insights on the security portfolio and demand for newer products? - The integration of Arbor DDoS into the main business is a key growth area, with advancements in adaptive DDoS and partnerships enhancing cybersecurity offerings [31][32] Question: How did spending among federal government customers trend in the first quarter? - Federal government spending was strong, with mid-teens growth, and there is optimism for continued opportunities in this sector [41][42] Question: How are investments in AI data centers impacting enterprise business? - The expansion of the service assurance market into larger observability markets is increasing legitimacy and market size, with AI driving product improvements [43][44] Question: What are you hearing from service provider customers regarding potential incremental investments? - There has been no specific feedback from service providers regarding investments this year, and past changes have not significantly impacted business [46]