Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [44] - Product revenue decreased to $6.7 million from $11 million, primarily due to a lack of one-time transactions that totaled approximately $4.5 million in the prior year [44] - Service revenue increased by 14.6% to $5.3 million from $4.7 million in the previous year [44] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [45] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [47] Business Line Data and Key Metrics Changes - The technology solution business continues to lead progress, with strong performance in managed cloud and managed service practices [10][34] - The managed service practice has signed new customers expected to generate nearly six figures in monthly revenue starting this quarter [12][36] - The AZT PROTECT product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [38][39] Market Data and Key Metrics Changes - The company benefits from the growing trend of organizational migration to the cloud, with Microsoft Azure being a market leader [11][35] - The customer retention rate remains extremely high, contributing to expanding gross margins in the service segment [13] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [8] - The company is pursuing opportunities in both the services side of the business and the AZT PROTECT product line [122] - Investments in the managed service practice are expected to yield returns through new customer signings [12][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal 2026 is shaping up to be a growth year for the company, despite tough year-over-year comparables [7][9] - The company is focused on executing its core growth strategies to build long-term shareholder value [7] - Management acknowledged the challenges in the procurement process but remains committed to overcoming them [41] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12 to shareholders of record as of February 26 [48] - Increased interest income rose by 23% over the prior year due to financing deals and cash interest [47] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, including managed services [51][56] Question: Revenue predictability from Acronis integration - Management stated that it is too early to quantify revenue from the integration with Acronis, as APIs are still being built [77][78] Question: Share repurchase plans - Management indicated plans to repurchase shares now that the blackout period has ended [79][80] Question: Financing role and cash flow - Management confirmed that the company continues to engage in financing roles with customers, which helps maintain relationships [96] Question: Multi-site customer approvals - Management detailed that approvals for multi-site installations are ongoing, with some occurring in the current quarter [99][100]

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [34] - Product revenue decreased to $6.7 million from $11 million, primarily due to the absence of one-time transactions totaling approximately $4.5 million from the previous year [34] - Service revenue increased by 14.6% to $5.3 million from $4.7 million year-over-year [34] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [35] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [36] Business Line Data and Key Metrics Changes - The technology solutions business continues to lead progress, with strong performance in managed cloud and managed service practices [6][28] - The managed service practice signed new customers expected to generate nearly $100,000 in monthly revenue starting this quarter [7][29] - The AZT Protect product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [30] Market Data and Key Metrics Changes - The company is benefiting from the trend of organizational migration to the cloud, with increasing demand for operational support services post-migration [7][28] - The market for cybersecurity solutions is expanding, with the company positioned as a resource for enterprises facing operational technology cybersecurity challenges [31] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [5] - The company aims to leverage partnerships, particularly with Microsoft Azure, to enhance its managed service offerings [7][28] - Investments in the managed service practice are expected to yield returns through new customer acquisitions [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal 2026 will be a growth year, supported by infrastructure investments and a strong service segment [6][34] - The company anticipates generating substantial operating leverage as revenue grows, with a focus on maintaining high customer retention rates [8][34] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12, 2026, to shareholders of record as of February 26, 2026 [37] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, with managed services being a significant portion [41][46] Question: Revenue predictability from Acronis integration - Management indicated that it is too early to quantify revenue from the integration with Acronis, as the APIs are still being built [67][68] Question: Share repurchase plans - Management confirmed plans to repurchase shares now that the blackout period has ended, indicating confidence in the company's stock [70][71] Question: Financing and customer repayment structure - Management clarified that the company continues to engage in financing roles with customers, which helps maintain strong relationships [87][88] Question: Multi-site customer approvals - Management provided insights into the timing of approvals for multi-site installations, indicating a growing frequency of such occurrences [90][92]

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [36] - Product revenue decreased to $6.7 million from $11 million, primarily due to the absence of one-time transactions totaling approximately $4.5 million from the previous year [36] - Service revenue increased by 14.6% to $5.3 million from $4.7 million in the prior year [36] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [37] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [38] Business Line Data and Key Metrics Changes - The technology solution business continues to lead progress, with strong performance in managed cloud and managed service practices [6][30] - The managed service practice signed new customers expected to generate nearly $100,000 in monthly revenue starting this quarter [8][31] - The AZT Protect product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [9][32] Market Data and Key Metrics Changes - The company benefits from the growing trend of organizational migration to the cloud, with increasing demand for operational support services [7][30] - Microsoft Azure is identified as the market leader in cloud services, with the company being a platinum partner [8][30] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [5] - The company aims to leverage its differentiated cybersecurity solutions to capture market opportunities and enhance customer retention [9][34] - Investments in the managed service practice are expected to yield returns through new customer acquisitions [8][31] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence that fiscal 2026 will be a growth year, supported by infrastructure investments and a strong service business [6][35] - The company anticipates generating substantial operating leverage as revenue grows, with a focus on executing its growth strategies [35] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12, 2026, to shareholders of record as of February 26, 2026 [39] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, not just managed services [42][43] Question: Revenue from managed services - The total service revenue of $5.3 million includes managed services, but specific breakdowns are not provided [46][50] Question: Integration with Acronis Cyber Protect - Management acknowledged that AZT will be integrated into Acronis Cyber Protect, enhancing the backup service capabilities [52][56] Question: Predictability of revenue from Acronis integration - Management stated it is too early to quantify revenue from the integration as it is still in the development phase [68][70] Question: Share repurchase plans - Management indicated plans to repurchase shares following the end of a blackout period [71][72] Question: Financing role and customer collections - Management confirmed ongoing involvement in financing roles and the collection of payments from customers [82][86] Question: Multi-site customer approvals - Management detailed the process of securing approvals for multi-site installations, indicating progress in customer relationships [91][92] Question: Momentum in customer relationships - Management noted that while progress is being made, it is still early to determine if the growth will be exponential [99][100]

LONDON, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Acronis, a global leader in cybersecurity and data protection, today announced the appointment of Jo Holliday as General Manager, UKI (United Kingdom and Ireland). In this role, Holliday will lead Acronis’ UKI business, focusing on accelerating regional growth, strengthening partner and customer relationships, and expanding market presence through a partner-first approach. Jo brings more than 28 years of leadership experience across software sales, channel developme ...