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]

Core Insights - Acronis has appointed Jo Holliday as General Manager for the UKI region, aiming to enhance regional growth and strengthen partner relationships [1][4] - Holliday brings over 28 years of experience in software sales and channel development, with a proven track record in building partner ecosystems and driving growth [2][4] - Acronis emphasizes a partner-first approach to expand its market presence in the UK and Ireland, focusing on collaboration with managed service providers (MSPs) [1][4] Company Overview - Acronis is a global leader in cybersecurity and data protection, providing integrated solutions for MSPs, small and medium businesses (SMBs), and enterprise IT departments [5] - The company was founded in Singapore in 2003 and has expanded to 15 offices worldwide, employing staff in over 50 countries [6] - Acronis Cyber Protect is available in 26 languages across 150 countries, serving over 21,000 service providers and protecting more than 750,000 businesses [6]