Financial Data and Key Metrics Changes - Total revenue for the second quarter was $138 million, exceeding guidance, with a year-over-year increase in EPS from $0.08 to $0.09 [19][5] - Free cash flow was negative at $15.5 million, but cash balance increased to $123.9 million, up $78 million year-over-year [19][24] - Total company gross margin was 54.1%, up 100 basis points year-over-year, while broadband gross margin was 46.5%, down 110 basis points [24][25] Business Line Data and Key Metrics Changes - Broadband revenue was $86.9 million with adjusted EBITDA of $10.8 million, reflecting industry headwinds [20] - Video segment revenue was $51.1 million, up 11.6% year-over-year, with SaaS streaming revenue reaching a record $15.4 million [20][16] - The company added four new logos in broadband, including a significant Tier two North American operator [8][9] Market Data and Key Metrics Changes - Rest of world revenue grew significantly year-over-year, contributing to a more diversified revenue stream [20][9] - The company reported a strong backlog and deferred revenue of $504.5 million, indicating consistent customer demand [5][27] Company Strategy and Development Direction - The company is focused on accelerating the adoption of next-generation virtualized broadband networks and enhancing competitive positioning [7][14] - The recently passed OBBBA is expected to incentivize investments in broadband networks over the next several years [8] - The company aims to leverage its unified DOCSIS 4.0 technology and fiber solutions to drive future growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth to resume in 2026, supported by unified DOCSIS 4.0 adoption and customer ramp readiness [6][28] - The competitive environment is becoming more challenging, prompting customers to prioritize network upgrades [42] - Management remains cautious about the near-term outlook due to macroeconomic factors and potential tariff impacts [31][32] Other Important Information - The company repurchased $14 million of common shares in the quarter, totaling $50.1 million under the current program [5][21] - The company has a strong balance sheet with ample liquidity, including $123.9 million in cash and $82 million available under its credit facility [23][24] Q&A Session Summary Question: Strength from rest of world customers - Management indicated that the rest of world revenue is significantly stronger than 50% of total revenue, with Comcast representing 39% of total revenue [36] Question: Outlook for 2026 growth - Management sees positive indicators for 2026, with expectations of tailwinds from unified DOCSIS 4.0 and customer ramp readiness [39][41] Question: DOCSIS 4.0 readiness and product platform progress - Management reported good progress in DOCSIS 4.0 readiness, with early shipments planned for the fourth quarter [48][50] Question: Impact of Charter's CapEx cuts - Management noted that Charter's network evolution is still a priority, despite the CapEx cuts, indicating ongoing importance for service delivery [51] Question: Strong bookings and cautious guidance - Management confirmed strong bookings across multiple customers, including rest of world customers, but remains cautious about guidance due to uncertainties [58][60] Question: Tariff situation and potential impacts - Management stated that the tariff impact for Q3 is expected to be less than $1 million, with ongoing efforts to optimize the supply chain [68][70] Question: Q4 expectations and seasonality - Management anticipates some sequential growth from Q3 to Q4 but is not providing specific guidance due to uncertainties [76][78]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $138 million, exceeding guidance, with EPS rising from $0.08 to $0.09 year over year [19][32] - Free cash flow was negative at $15.5 million, but cash balance increased to $123.9 million, up $78 million from the same quarter last year [19][22] - Total company gross margin was 54.1%, up 100 basis points year over year, while broadband gross margin was 46.5%, down 110 basis points [23][24] Business Line Data and Key Metrics Changes - Broadband revenue was $86.9 million with adjusted EBITDA of $10.8 million, reflecting industry headwinds [20][32] - Video segment revenue was $51.1 million, up 11.6% year over year, with SaaS streaming revenue reaching a record $15.4 million [16][20] - The company repurchased $14 million of common shares in Q2, totaling $50.1 million under the current program [5][22] Market Data and Key Metrics Changes - Rest of world revenue grew significantly year over year, contributing to improved diversification [20][32] - The company ended Q2 with a backlog and deferred revenue of $504.5 million, indicating strong customer demand [5][26] - The company noted a strong order book with Q2 bookings at $158.4 million and a book-to-bill ratio of 1.1 [24][25] Company Strategy and Development Direction - The company is focused on accelerating the adoption of next-generation virtualized broadband networks and enhancing competitive positioning [6][10] - The recently passed OBBBA is expected to incentivize investments in broadband networks over the next several years [7][23] - The company aims to continue investing in inventory to support expected growth in broadband, particularly in the rest of world markets [21][22] Management Comments on Operating Environment and Future Outlook - Management expects revenue growth to resume in 2026, supported by Unified DOCSIS 4.0 adoption and customer ramp readiness [6][19] - The tariff situation remains fluid, but the actual impact in Q2 was less than anticipated, with less than $1 million affecting broadband [27][28] - Management remains cautious about Q3 guidance due to macroeconomic factors but anticipates some sequential growth from Q3 to Q4 [30][75] Other Important Information - The company is seeing strong momentum in both broadband and video segments, with ongoing innovation and customer expansion [12][14] - The company highlighted the importance of network evolution for customers to deliver enhanced services [40][49] Q&A Session Summary Question: Strength from rest of world customers - Management indicated that rest of world revenue is significantly stronger than 50% of total revenue, reflecting improved diversification [34][35] Question: Optimism for 2026 growth - Management noted that headwinds are turning into tailwinds, with positive indicators for 2026 growth, but refrained from providing specific forecasts [36][39] Question: DOCSIS 4.0 readiness - Management confirmed good progress in DOCSIS 4.0 readiness, with early shipments planned for the fourth quarter [44][46] Question: Impact of Charter's CapEx cuts - Management acknowledged Charter's CapEx cuts but emphasized the importance of network evolution for service delivery [48][49] Question: Strong bookings and cautious guidance - Management explained that strong bookings are a mix across various customers, including rest of world, but guidance remains cautious due to uncertainties [52][75] Question: Tariff impacts and manufacturing flexibility - Management stated that current tariff impacts are minimal, with ongoing evaluations of manufacturing options to mitigate future risks [66][68]

Q2 2025 Financial Performance - Total revenue reached $138 million, a slight decrease of 0.5% year-over-year[5,29] - Broadband revenue was $86.9 million, down 6.5% from the previous year[5,29] - Video revenue increased to $51.1 million, up 11.6% year-over-year[5,29] - SaaS revenue within the Video segment hit a record $15.4 million, a 10.1% increase from the prior year[26,29] - The company's cash balance stands at $124 million, a significant increase from $46 million in Q2 2024[10,29] - Share repurchases totaled $14 million in Q2 2025, bringing the year-to-date total to $50 million[10] Q3 2025 Financial Guidance - The company anticipates consolidated net revenue to be in the range of $120 million to $135 million[36] - Broadband revenue is projected to be between $75 million and $85 million, while Video revenue is expected to be $45 million to $50 million[36] - The company expects earnings per share (EPS) to be between $0.02 and $0.07[36] Strategic Outlook - The company anticipates a revenue growth rebound in 2026, driven by Unified 4.0, customer ramps, and recent wins[10,38] - The company has a strong liquidity position, with $124 million in cash and an $82 million undrawn credit facility[31]

2024 Financial Performance - The company achieved record revenue of $222.2 million in Q4 2024, a 33% increase year-over-year[49] - Record EPS of $0.45, up 246% compared to the previous year[49] - The company's cash balance increased to $101.5 million, up $43.3 million from Q3 2024[49] - Full year 2024 revenue reached $679 million, with Broadband contributing $488 million and Video $191 million[4] Broadband Business - Broadband revenue in Q4 2024 was $171.0 million, a 48% increase year-over-year[49] - The company expects a below-trend revenue year in Broadband for 2025 due to Unified 4.0 timing[11] - The company anticipates resumed revenue growth in 2026 with Unified 4.0 and existing customer ramps[11] - Q1 2025 Broadband revenue guidance is $80 million to $90 million, and full-year 2025 guidance is $400 million to $450 million[61] Video Business - Video revenue in Q4 2024 was $51.1 million, a 1% decrease compared to the previous year[49] - Q4 2024 SaaS revenue was $15.1 million[49] - Q1 2025 Video revenue guidance is $40 million to $45 million, and full-year 2025 guidance is $185 million to $195 million[61] Financial Outlook and Capital Allocation - The company authorized a new $200 million 3-year share repurchase program[10] - Q1 2025 total revenue guidance is $120 million to $135 million, and full-year 2025 guidance is $585 million to $645 million[62] - The company expects strong cash flow in 2025, despite Broadband revenue timing headwinds[10]