Core Viewpoint - MachTen, Inc. continues to execute its fiber-based investment plan while enhancing operational foundations for sustained growth, aiming to establish a reliable broadband network and drive long-term value for customers and shareholders [1]. Financial Highlights - **Second Quarter 2025 Revenue**: $4.22 million, slightly down from $4.25 million in 2Q24, with subscriber gains in fiber-optic services offset by declines in legacy voice services [5]. - **Operating Profit**: $1.3 million compared to $1.7 million in 2Q24, impacted by increased depreciation and operating expenses [5]. - **Net Income**: $640,000, down from $1.1 million in the prior year period [5]. - **EBITDA (Non-GAAP)**: $2.1 million, down from $2.4 million in 2Q24 [5]. - **Year-to-Date Revenue**: $8.35 million, compared to $8.42 million in 2024 [5]. - **Year-to-Date Operating Profit**: $2.42 million, down from $2.85 million [5]. - **Year-to-Date Net Income**: $1.23 million, down from $1.65 million [5]. - **Year-to-Date EBITDA (Non-GAAP)**: $4.2 million, down from $4.3 million [5]. Strategic & Operational Highlights - **Capital Investments**: Approximately $3.7 million invested year-to-date, adding over 50 fiber route-miles and 1,000 passings in the first half of 2025 [4]. - **Customer Base**: As of June 30, 2025, Michigan Broadband serves approximately 1,800 fiber broadband customers across 9,500 passings, with expected improvements in take-rates as build areas mature [4]. - **E-ACAM Program**: Expected to reach approximately 3,500 new fiber passings in 2025, totaling around 4,500 by year-end 2025, which is about 50% of the target for the end of 2028 [6]. - **ReConnect Projects**: Ongoing construction on RC3 grant projects to improve connectivity to over 2,500 locations across approximately 500 miles, with an estimated total cost of around $85 million [6]. - **Network Modernization**: Core switching and routing upgrades initiated in early 2025 to enhance reliability and throughput as fiber replaces legacy copper-based DSL [6]. - **Operating Services Agreement**: Finalizing an agreement with UP Fiber for customer service and administrative support, which will increase network capacity [6]. Balance Sheet & Liquidity - **Cash and Cash Equivalents**: $1.73 million as of June 30, 2025 [13]. - **Debt**: $20 million term loan with $17 million outstanding at a weighted average interest rate of approximately 5.5% as of June 30, 2025 [13]. - **Total Assets**: $41.91 million as of June 30, 2025, compared to $39.69 million in December 2024 [12][14].

Core Insights - Converge ICT Solutions Inc. is enhancing its fiber network with advanced data transmission technology from Ribbon Communications to meet the increasing demand for high-speed and reliable connectivity [1][5][6] - The collaboration will utilize Ribbon's Muse Multilayer Automation Platform to optimize Converge's network performance and resource management [2][4] - The implementation of a 5 nanometer - 140Gbaud transmission chipset will increase Converge's network capacity to 1.2 Terabits per second [5][6] Company Overview - Converge ICT Solutions is the fastest-growing fixed broadband service provider in the Philippines, operating an end-to-end pure fiber internet network [8][9] - The company boasts over 705,000 kilometers of fiber optic assets, making it one of the most extensive fiber networks in the country [9] - Converge offers a range of services including broadband, integrated data center, and network solutions [8] Technology and Innovation - The new technology will support next-generation services such as high-speed broadband, cloud applications, and enterprise solutions [6] - Ribbon Communications is recognized for its real-time communications technology and IP optical networking solutions, aiding service providers in modernizing their networks [7][10]