Financial Data and Key Metrics Changes - The company reported revenue of $28.5 million for Q3 FY2025, which was down both sequentially and year-over-year due to no shipments to a large smart grid customer in Europe [4][10] - GAAP gross margin increased to 43.5% in Q3 FY2025 from 42.6% in the prior quarter and 40.1% in the year-ago quarter [10] - Non-GAAP gross margin was 44.1% in Q3 FY2025 compared to 43.2% in the prior quarter and 41% in the year-ago quarter [10] - GAAP net loss was $3.9 million or $0.10 per share during Q3 FY2025, compared to a GAAP net loss of $0.4 million or $0.01 per share in the year-ago quarter [11] - Non-GAAP net income was $1.1 million or $0.03 per share during Q3 FY2025, down from $4.2 million or $0.11 per share in the year-ago quarter [12] Business Line Data and Key Metrics Changes - Revenue impact was partially offset by sequential organic growth in embedded connectivity and switch products, along with growth in gateways and routers from the NetComm acquisition [10] - The company reduced non-GAAP operating expenses by approximately $1.2 million compared to the year-ago quarter and by about $200,000 sequentially [11] Market Data and Key Metrics Changes - The company is expanding its distribution network in the European Union and Asia Pacific, leveraging partnerships with TD SYNNEX and the acquired channel network from NetComm [7] - The integration of NetComm products has gone well, leading to increased customer engagement and cross-selling opportunities [7] Company Strategy and Development Direction - The company is focused on expanding its distribution network and managing costs amid tariff uncertainties [5][6] - There is a strong emphasis on developing edge AI solutions, particularly in the areas of drones, robotics, and surveillance [8][30] - The company is cautious about the macroeconomic environment but is generating positive cash flow and maintaining a strong balance sheet [15] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the operating environment and has established a task force to address tariff impacts [5][6] - The company expects revenue for Q4 FY2025 to be in the range of $26.5 million to $30.5 million, with some pressure on gross margins anticipated [14] - Management is optimistic about double-digit growth in FY2026 based on design activity and new product releases [36][45] Other Important Information - Cash and cash equivalents at the end of Q3 FY2025 totaled $20 million, slightly up from the prior quarter [12] - The company paid down approximately $2 million of its existing term debt, reducing interest expenses [13] Q&A Session Summary Question: What was the NetComm contribution in March and its growth potential? - Management expects NetComm revenue to be $6 million to $7 million on an annualized basis, tracking to exceed that run rate [18] Question: How is customer engagement tracking amid macro uncertainties? - There are no cancellations or push-outs, and design activity remains strong [21] Question: What is the outlook for edge compute initiatives? - The company is seeing positive engagement and expects revenue from AI activities, particularly around cameras, in FY2026 [30] Question: What visibility is there for June guidance and growth into FY2026? - Management is cautious but confident in the June guidance, expecting double-digit growth driven by core business and new design wins [36][45] Question: Is the company still the sole supplier to Gridspertise? - Yes, the company remains the single source for Gridspertise, and management is working closely with them [47]