Financial Data and Key Metrics Changes - Overall fourth quarter revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [5][13] - Gross margins improved by over 800 basis points to 37% in the fourth quarter, driven by significant growth in service revenue [5][13] - For the full fiscal year, revenue grew by 6%, with gross profit at $18.5 million, representing 32% of sales [15][16] Business Line Data and Key Metrics Changes - Service revenue grew by 63% in the fourth quarter, accounting for approximately 44% of total revenue, up from 30% in the prior year [6][13] - For the full year, service revenue represented 36% of total revenue, compared to 33% the previous year [6] - Product revenue decreased by $1.1 million in the fourth quarter [13] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The managed cloud and MSP services segment experienced healthy double-digit growth during the fiscal year [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources and adding sales representatives [7] - There is a focus on expanding the AZT Protect cybersecurity offering, particularly in the maritime industry and industrial IoT devices [10][11] - The company is optimistic about converting its growing pipeline into significant sales in fiscal 2026 [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong finish to the fiscal year and the potential for increased profitability in fiscal 2026 [5][12] - The company believes it is well-positioned to leverage revenue growth going forward, supported by investments made in infrastructure [12] Other Important Information - The company reported a net loss of $191,000 for the fourth quarter, compared to a net income of $1.7 million in the prior year [14] - Cash and cash equivalents stood at $27.4 million as of September 30, 2025, down about 10% from the previous year [15] Q&A Session Summary Question: Service revenue calculation - Analyst confirmed the service revenue in the fourth quarter was approximately $6.4 million, based on 44% of total sales [19][20] Question: IIoT expansion of AZT Protect - Management acknowledged the potential for significant growth in the IIoT market and the need for OEM agreements [25][26] Question: Acronis integration - Management stated that AZT is being integrated into Acronis software, but revenue projections are still uncertain [51][52] Question: UFT relationship updates - Management provided updates on the relationship with UFT, indicating progress with case studies and future marketing events [53] Question: Revenue predictability - Management indicated that revenue projections for the upcoming year are uncertain and may vary [72]

Financial Data and Key Metrics Changes - For the fiscal fourth quarter, revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [13] - Gross margins improved by over 800 basis points to 37%, driven by significant growth in service revenue [5][14] - The company reported a net loss of $191,000 or $0.02 per diluted share for the fourth quarter, compared to a net income of $1.7 million or $0.18 per diluted share in the prior year [15] Business Line Data and Key Metrics Changes - Service revenue grew by 63% year-over-year, representing approximately 44% of total revenue in the fourth quarter, up from 30% in the same quarter last year [6][14] - For the full fiscal year, service revenue accounted for 36% of total revenue, compared to 33% the previous year [6] - Product revenue decreased by $1.1 million in the fourth quarter [13] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The managed cloud and MSP services segment experienced healthy double-digit growth during fiscal 2025 [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources, including adding sales representatives [7] - There is a focus on expanding the AZT Protect cybersecurity offering, particularly in the maritime industry and Industrial IoT devices [10][11] - The company is optimistic about generating consistent profitability improvements in fiscal 2026 due to infrastructure investments and growth strategies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong results from the service segment and the potential for growth in fiscal 2026 [11][12] - The company believes it has a competitive advantage in the cybersecurity space and aims to convert building momentum into significant sales [10] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of $27.4 million, despite a 10% decrease from the previous year [16] - The company plans to pay a $0.03 per share dividend on July 15, 2026, to shareholders of record on December 26, 2025 [16] Q&A Session Summary Question: Service revenue calculation - The service revenue in the fourth quarter was approximately $6.4 million, which is 44% of total sales [20] Question: Expansion of AZT Protect - Management acknowledged that the expansion of AZT Protect is a game changer and is focusing on signing OEM agreements in the IIoT environment [25][26] Question: Integration with Acronis - AZT is being integrated into Acronis software, but revenue projections are too early to determine [53] Question: Relationship with UFT - The relationship with UFT is strong, and case studies are being developed for implementation with their customers [55] Question: Share repurchase blackout period - The company is subject to a blackout period for share repurchases until mid-February due to earnings reporting [56][59]