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Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $14,400,000, consistent with targets and the same as Q1 2024 [8][23] - Gross profit was $4,400,000, representing a gross margin of 30.3%, up from $4,100,000 and 28.5% in Q1 2024 [24] - Operating loss decreased to $2,400,000 from $2,700,000 year-over-year, while net loss improved to $2,100,000 from $2,400,000 [25] Business Line Data and Key Metrics Changes - The company reported significant design win momentum, with three new design wins in 2025, including contracts with cybersecurity leaders and a global network test equipment company [10][12][15] - The focus on core product lines and deep customer relationships has created a solid pipeline for future growth [9][16] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 70.8%, Europe and Israel at 14%, and the Far East and Rest of the World at 8% [23] - The top 210%+ customers accounted for about 24% of revenues over the last twelve months [23] Company Strategy and Development Direction - The company aims for a return to solid double-digit growth rates starting in 2026, with long-term financial goals of achieving EPS above $3 based on revenues between $150,000,000 and $160,000,000 [9][20] - A robust pipeline of opportunities across various product lines is expected to drive future growth, with a focus on building long-term relationships with customers [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in 2026 and beyond, supported by a strong balance sheet and no debt [8][21] - The company anticipates low single-digit growth for 2025, with double-digit growth expected for 2026 [19] Other Important Information - The company has a strong balance sheet with $119,000,000 in working capital and marketable securities, including $77,000,000 in cash [8][25] - The share buyback program saw the purchase of nearly 100,000 shares in Q1 2025, with about $8,000,000 remaining in the program [44][48] Q&A Session Summary Question: What milestones are tracked for design wins? - Management outlined milestones including customization development, shipping samples, and mass production readiness [28][29][30] Question: Is there increased demand for FPGA-based products? - Management confirmed strong demand across all product lines, including FPGA, and highlighted a recent strategic partnership for cybersecurity solutions [31][32] Question: What is the impact of tariffs? - Currently, the company's products are exempt from tariffs, and management is monitoring the situation closely [33][34][36] Question: Update on share buyback program? - The company purchased nearly 100,000 shares in Q1 2025, with over $8,000,000 remaining in the buyback program [44][48] Question: Are major customers reordering after excess inventory? - Management noted some relief in excess inventory issues, with some customers beginning to reorder, but the situation varies by customer [50][51][52]

Group 1 - Cambium Networks received a second deficiency notice from Nasdaq for failing to file its Form 10-K for the year ended December 31, 2024, indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) [1][2] - The company had previously received an initial deficiency notice on April 10, 2024, for not meeting the minimum bid price requirement of $1.00 per share under Nasdaq Listing Rule 5450(a)(1) [1][2] - Nasdaq has provided Cambium Networks with 60 calendar days to either file the Form 10-K or submit a compliance plan, with the possibility of an extension of up to 180 days if the plan is accepted [2] Group 2 - Cambium Networks aims to resolve the compliance deficiency and regain its listing status on Nasdaq [3] - The company provides networking solutions to service providers, enterprises, and governments, focusing on simplifying network management through its ONE Network platform [4]

Core Insights - Actelis Networks, Inc. has secured a new order to modernize communications infrastructure for a major city in the Nordic region, enhancing its presence in the European market [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][4] - Actelis' technology offers fiber-grade performance while utilizing existing infrastructure, significantly reducing deployment time and costs compared to traditional methods [3][5] Company Overview - Actelis Networks, Inc. is a market leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various IoT applications, including government and transportation systems [5] - The company's innovative portfolio provides fiber-grade performance with the flexibility and cost-efficiency of hybrid networks, supporting smart city initiatives and infrastructure modernization [5] - Actelis also offers AI-based cyber monitoring and protection through its "Cyber Aware Networking" initiative, enhancing network security and resilience [5]

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].