Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $82.3 million, down 14.4% from $96.1 million in Q2 2024 [19] - Non-GAAP earnings per share were $0.03, compared to $0.11 in Q2 2024 [22] - Gross profit was $29 million, down 14.2% from $33.8 million in the prior year, with a non-GAAP gross margin of 35.2%, unchanged from the previous year [19][22] Business Line Data and Key Metrics Changes - Revenue from North America was $26.8 million, making it the strongest region, while India contributed $24.8 million, a decrease of 30% year-over-year [19][13] - Research and development expenses were $7.2 million, down from $8.2 million in Q2 2024, while sales and marketing expenses increased to $11.1 million from $11 million [20] - Operating income on a non-GAAP basis was $4.7 million, down from $13.1 million in Q2 2024, primarily due to the absence of a prior year credit loss recovery [22] Market Data and Key Metrics Changes - Revenue from Indian customers was significantly impacted, with a 30% decrease year-over-year, attributed to financial challenges faced by a key customer [13][14] - North America showed strong performance, with bookings and revenue exceeding $20 million, indicating a robust market presence [13] Company Strategy and Development Direction - The company is focused on expanding its technological capabilities and market share, particularly in North America, where new technologies are being introduced [9][10] - The strategy includes leveraging new products and technologies to capture market share and address customer needs across various regions [8][16] - The company remains committed to investing in strategic initiatives despite short-term revenue challenges, indicating confidence in long-term growth [16][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential in India, despite current challenges, and believes that market share remains intact [14][26] - The outlook for the second half of 2025 is uncertain due to the situation in India, but management expects to maintain profitability and cash generation [26][27] - The company anticipates that the second half revenue will be roughly in line with the first half, with continued investment in strategic pillars [27] Other Important Information - The company generated $6.1 million in free cash flow in Q2 2025, allowing for debt reduction despite revenue headwinds [24] - The cash position at the end of Q2 2025 was $29.2 million, down from $35.3 million at the end of 2024, primarily due to acquisition-related cash payments [23] Q&A Session Summary Question: Concerns about market share loss in India - Management reassured that the slowdown in India is not due to losing market share but rather external financial challenges faced by a key customer, with ongoing discussions indicating a strong position in the market [30][32] Question: Sustainability of North America's strong performance - Management indicated that the strong performance in North America is expected to continue into the second half of the year, supported by a solid backlog and promising private network opportunities [38][39] Question: Impact of revenue headwinds on operating expenses - Management stated that as long as the company remains profitable and generates cash, it will continue to invest in strategic initiatives, with a focus on maintaining operational discipline [58][60] Question: Updates on the Cyclu point-to-multipoint solution - Management highlighted use cases in smart cities and public safety, with potential market sizes ranging from a few million to tens of millions of dollars annually [66][68] Question: Acquisition strategy amidst revenue challenges - Management confirmed that acquisition efforts have not slowed down and are actively seeking suitable opportunities, with a positive cash flow enabling further acquisitions [78][80]