Core Insights - Actelis Networks, Inc. reported a gross margin expansion to 35% for Q1 2025, driven by a strategic focus on growing its deal pipeline and high-margin wins while maintaining stable revenues and disciplined cost management [1][7][6] Financial Performance - Revenues for Q1 2025 were $721,000, slightly down from $726,000 in Q1 2024, primarily due to a 31% decline in revenues from the EMEA region, offset by a 23% increase in North America [6][7] - Gross profit for Q1 2025 was $251,000, representing 35% of revenue, an increase from $220,000 or 30% of revenue in Q1 2024, attributed to improved regional revenue mix and efficient cost management [9][7] - Operating loss improved to $1.81 million in Q1 2025 from $1.87 million in the same period last year, reflecting enhanced gross margins and continued expense control measures [11][7] - Net loss per share decreased to $(0.22) for Q1 2025, a 56% improvement compared to $(0.50) in Q1 2024 [7][12] Operational Highlights - The company is focusing on three main business areas: Federal and Military, Multi-Dwelling Units (MDU), and Intelligent Transportation Systems (ITS), with an emphasis on growing the pipeline for the remainder of the year [7][5] - New orders were received from various regions, including the Nordic region, Hungary, the US, UK, and Japan, validating the value proposition of Actelis' solutions [2][7] - The company engaged with multi-billion dollar partners, enhancing opportunities in ITS markets and expanding its sales presence across Europe [7][5] Cost Management - Operating expenses for Q1 2025 were $2.06 million, a 1.5% decrease from $2.09 million in Q1 2024, reflecting consistent efforts to reduce expenses [11][7] - Interest expenses significantly decreased due to the company becoming nearly debt-free, contributing to a stronger financial position [5][12] Market Position - Actelis Networks is recognized as a market leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in various applications, including government and military sectors [14][1] - The company's innovative portfolio offers fiber-grade performance with the flexibility and cost-efficiency of hybrid networks, enhancing its competitive edge in the market [14][1]