Actelis' hybrid-fiber networking solutions enable municipalities to achieve fiber-grade performance while leveraging existing infrastructure, significantly reducing deployment time and costs compared to traditional fiber installation methods. The company's cyber-hardened technology is engineered to withstand challenging environments while providing military-grade security protection for critical urban systems. FREMONT, Calif. , April 21, 2025 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (NASDAQ:ASNS) ("Acteli ...

Core Insights - Actelis Networks, Inc. has secured a new order to modernize the communications infrastructure for a major Nordic city, enhancing its European presence [1][4] - The company is collaborating with a leading European traffic technology provider to supply advanced hybrid-fiber networking solutions, aimed at improving connectivity in a city with over 300,000 residents [2][3] - Actelis' technology is designed to provide fiber-grade performance while utilizing existing infrastructure, which reduces deployment time and costs compared to traditional methods [3][4] Company Overview - Actelis Networks specializes in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including IoT, government, and transportation systems [5] - The company's innovative portfolio offers flexibility and cost-efficiency, while its "Cyber Aware Networking" initiative enhances network security through AI-based monitoring [5]

Core Viewpoint - The current market weakness presents a buying opportunity for long-term investors, as many companies are more adaptable and resilient than perceived [2] Group 1: Cisco Systems - Cisco Systems is a notable exception in the technology sector for dividend stocks, distributing nearly $6.4 billion in dividends last fiscal year, which is over half of its net income [4] - The company has raised its annual per-share dividend for 13 consecutive years, with a recent increase of 3%, aligning with long-term sales growth, and offers a forward-looking yield of nearly 2.9% [4] - Cisco maintains a dominant position in the global ethernet switch market, controlling about one-third, which helps it fend off competition from rivals [5] - The increasing importance of software in Cisco's business model, which accounts for one-third of its revenue and has a high-margin recurring revenue stream, supports its ability to sustain dividend payments [6] Group 2: PepsiCo - PepsiCo has outperformed Coca-Cola in terms of investment returns since 1995, even with a 25% stock setback in 2023, due to larger dividend growth and aggressive stock repurchases [8][11] - PepsiCo's business model, which includes owning and operating most of its bottling and production facilities, provides better control over production and cost management compared to Coca-Cola's reliance on third-party bottlers [12][13] Group 3: Pfizer - Pfizer's forward-looking dividend yield stands at 7.8%, despite recent challenges following the decline in demand for its COVID-19 treatments [14][15] - The pharmaceutical industry often experiences fluctuations, and Pfizer's current struggles are not unusual, as many companies depend heavily on a few key products for revenue [16][18] - Pfizer anticipates four new drug approvals this year, including treatments for RSV and colon cancer, which could bolster its portfolio and future growth [19] - The company's R&D pipeline is gradually improving, and its stock price does not currently reflect its potential long-term growth prospects [20]

Core Insights - Arista Networks and Cisco Systems are leading players in the global networking industry, with Arista focusing on high-performance Ethernet switches and routers, while Cisco maintains a strong presence in the router and switch market and is expanding into network security [1][2][3] Group 1: Arista Networks - Arista holds a leadership position in 100-gigabit Ethernet switches and is gaining traction in 200-and-400-gig high-performance switching products, driven by solid demand trends among enterprise customers [4] - The company has introduced new cognitive Wi-Fi software and expanded its multi-cloud and cloud-native software product family, enhancing its competitive edge with a unified software stack [5] - Despite increased demand, Arista faces high operating costs, with total operating expenses rising around 20% to $431.3 million in Q4 2024, attributed to headcount increases and product introduction costs [6] Group 2: Cisco Systems - Cisco is expanding its AI capabilities across its portfolio, including the introduction of Webex AI Agent and AI-driven solutions for network management, which are expected to improve customer experience [7][8] - The company has partnered with NVIDIA to develop AI-ready data center networks, launching products like the NVIDIA-based CSCO AI POD, which is gaining traction among AI-based cloud customers [9] - Cisco is facing competitive pressure, leading to discounts and deals in response to competition from Arista and others, which may impact profitability and top-line growth due to declining new orders [10] Group 3: Financial Performance and Estimates - The Zacks Consensus Estimate for Arista's 2025 sales implies an 18% year-over-year growth, while Cisco's sales growth is estimated at 4.9%, with Cisco's EPS expected to decline by 0.3% [11][12] - Over the past year, Arista's stock has gained 12.1%, while Cisco has outperformed with a 19.8% increase [13] - From a valuation perspective, Cisco's shares trade at a forward P/E ratio of 14.76, significantly lower than Arista's 28.5, making Cisco appear more attractive [14] Group 4: Investment Outlook - Arista has shown steady revenue and EPS growth, but Cisco's superior Zacks Rank and better price performance suggest it may be a better investment option at the moment [15][16]

Core Insights - Actelis Networks, Inc. has secured a new order to modernize the intelligent transportation system infrastructure in Orange County, California, enhancing its presence in the transportation sector [1][2] - The order, placed through Western Systems, will provide advanced networking technology for secure, high-speed connectivity in traffic management systems, benefiting a region with over 3 million residents [2][4] - Actelis' hybrid-fiber networking solutions offer fiber-grade performance while utilizing existing infrastructure, reducing deployment time and costs significantly [3][4] Company Overview - Actelis Networks is a leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including government and intelligent transportation systems [5] - The company's technology is designed to withstand harsh environments and provides military-grade security against threats to essential transportation networks [3][5] - Actelis has seen growing adoption of its technology across the United States, indicating its unique value proposition in smart city initiatives and infrastructure modernization [4]

Core Viewpoint - Lantronix Inc. has appointed Todd Rychecky as general manager and head of its Out-of-Band (OOB) Management Business Line, aiming to enhance its market presence and drive strategic growth in the sector [1][2][3] Company Overview - Lantronix is a global leader in compute and connectivity IoT solutions, targeting high-growth markets such as Smart Cities, Enterprise, and Transportation [6] - The company offers a comprehensive suite of OOB management solutions, including products like LM80, LM83, LM4, SLC8000, EMG7500/8500, and Spider, with upcoming innovations such as SLC9000, LM48, and 5G-enabled LM series [5][6] Leadership and Strategy - Todd Rychecky has a strong background in OOB management, having previously scaled OpenGear's business and led a $100 million network resilience contract [2][4] - His responsibilities include aligning the OOB Management business with the company's broader AI and connectivity strategy, driving revenue growth, expanding market share, and enhancing financial performance [9] Product and Service Offerings - Lantronix's OOB management solutions provide enterprises with secure and resilient network management tools, ensuring uninterrupted connectivity and streamlined IT operations [5] - The company also offers LEVEL SERVICES, which provide customized technical support to meet evolving network demands [5]

Core Viewpoint - Cambium Networks Corporation has filed a Notification of Late Filing for its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, due to the need for additional time to finalize its consolidated financial statements and internal control assessments [1][2]. Financial Performance - For the fiscal year ended December 31, 2024, Cambium Networks expects revenues of approximately $166.0 million, a decrease from $220.2 million in the prior year [8]. - The company anticipates a net loss of approximately $92.0 million, or $3.29 per diluted share, compared to a net loss of $77.4 million, or $2.81 per diluted share, for the fiscal year ended December 31, 2023 [8]. - For the quarter ended December 31, 2024, revenues are expected to be around $34.0 million, down from $40.2 million in the same quarter of the previous year [8]. - The anticipated net loss for the quarter is approximately $47.0 million, or $1.66 per diluted share, compared to a net loss of $52.9 million, or $1.91 per diluted share, for the quarter ended December 31, 2023 [8]. - Included in the net losses for both the quarter and year are approximately $27.0 million of non-cash charges related to impairment of goodwill and other intangible assets, attributed to weakened forecast demand and competitive pressures [8]. Internal Control Issues - The company has identified material weaknesses in its internal control over financial reporting, particularly concerning Allowance for Credit Losses, Customer Incentives, and Information Technology General Controls [3]. - Cambium Networks is implementing measures to improve its internal control over financial reporting, with oversight from the Audit Committee and assistance from external advisors [3]. Going Concern - The Annual Report on Form 10-K is expected to include disclosures regarding substantial doubt about the company's ability to continue as a going concern [6].

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Core Insights - Actelis Networks has received an order from a major North American railway group to support the implementation of its Positive Train Control (PTC) system across challenging track sections [1][3] - PTC systems are designed to enhance rail safety by preventing train-to-train collisions, derailments from excessive speed, and movement through incorrectly positioned switches [2] - Actelis' hybrid-fiber networking technology maximizes bandwidth over existing copper infrastructure while ensuring network diversity through wireless and fiber connections [4] Company Overview - Actelis Networks is a leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including rail, military, and utility sectors [6] - The company's technology is engineered to perform in extreme conditions, providing fast deployment options that avoid significant costs and delays associated with new infrastructure installation [5][8] - Actelis' solutions are designed to maintain network integrity in remote locations and provide uninterrupted connectivity during extreme weather events [8]

Financial Data and Key Metrics Changes - Total revenue increased by 38% to $7.8 million, up from $5.6 million in 2023 [20] - Gross margin improved to 55% for the full year compared to 34% in 2023, reflecting a 125% year-over-year improvement [21] - Operating loss decreased to $3.8 million compared to $7.4 million in 2023, a reduction of 49% [24] - Net loss for the year was $4.4 million compared to $6.3 million in 2023, with loss per share shrinking by 67% to $0.85 [24] Business Line Data and Key Metrics Changes - New orders in the federal/military sector grew by 150% year-over-year [10] - Software and services new orders tripled, driven by a large North American telecom customer [11] - The GigaLine 900 solution family gained significant traction with numerous trials and installations underway [11] Market Data and Key Metrics Changes - North American revenues increased by 134%, representing a larger portion of total business [20] - Major deployments secured in smart city and transportation sectors, including cities like Washington, DC, and Seattle [12] Company Strategy and Development Direction - The company is prioritizing three strategic initiatives for 2025: introducing MetaShield into the installed base, strengthening go-to-market execution, and focusing on operational efficiency [15][18] - The introduction of MetaShield aims to generate recurring revenue through subscriptions and integrated network management software [15] - The company is positioned to capitalize on major infrastructure projects, particularly in federal and military markets [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, particularly in federal, city transportation, and IoT markets, which are valued in the tens of billions [38] - The company is optimistic about its growth prospects, emphasizing the importance of strategic partnerships and market penetration [30] - Management acknowledged the challenges of predicting revenue due to the lumpiness of orders but expects growth to stabilize over time [36] Other Important Information - The company has nearly repaid all outstanding debt, with only a $774,000 bank credit line remaining [25] - Cash and cash equivalents stood at $2.3 million at year-end, down from $5.5 million in 2023, primarily due to debt repayment [26] - The company is evaluating selective debt facilities to support growth initiatives while minimizing equity dilution [27] Q&A Session Summary Question: What caused the sequential decline in revenue from Q3 to Q4? - Management explained that the business is characterized by lumpiness in orders, making it difficult to predict exact timing for larger orders and shipments [36] Question: Are expenses stable, or will they increase with growth? - Management indicated that while expenses have been decreasing, there will be controlled increases in sales and marketing to drive growth [42][44] Question: How is the company positioned to benefit from military spending in Europe? - Management clarified that their focus is on US military sales, treating international deployments similarly to domestic ones [47] Question: Is there a concern about a reverse stock split due to low share price? - Management stated there are no current plans for a reverse split and expressed confidence in future growth to improve share value [56] Question: What is the future outlook for the company financially and business-wise? - Management highlighted ongoing efforts in federal markets, IoT, and MDU markets, with expectations for growth but no guarantees of profitability in 2025 [108]