Financial Data and Key Metrics Changes - Total revenue for the second quarter was $138 million, exceeding guidance, with a year-over-year increase in EPS from $0.08 to $0.09 [19][5] - Free cash flow was negative at $15.5 million, but cash balance increased to $123.9 million, up $78 million year-over-year [19][24] - Total company gross margin was 54.1%, up 100 basis points year-over-year, while broadband gross margin was 46.5%, down 110 basis points [24][25] Business Line Data and Key Metrics Changes - Broadband revenue was $86.9 million with adjusted EBITDA of $10.8 million, reflecting industry headwinds [20] - Video segment revenue was $51.1 million, up 11.6% year-over-year, with SaaS streaming revenue reaching a record $15.4 million [20][16] - The company added four new logos in broadband, including a significant Tier two North American operator [8][9] Market Data and Key Metrics Changes - Rest of world revenue grew significantly year-over-year, contributing to a more diversified revenue stream [20][9] - The company reported a strong backlog and deferred revenue of $504.5 million, indicating consistent customer demand [5][27] Company Strategy and Development Direction - The company is focused on accelerating the adoption of next-generation virtualized broadband networks and enhancing competitive positioning [7][14] - The recently passed OBBBA is expected to incentivize investments in broadband networks over the next several years [8] - The company aims to leverage its unified DOCSIS 4.0 technology and fiber solutions to drive future growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth to resume in 2026, supported by unified DOCSIS 4.0 adoption and customer ramp readiness [6][28] - The competitive environment is becoming more challenging, prompting customers to prioritize network upgrades [42] - Management remains cautious about the near-term outlook due to macroeconomic factors and potential tariff impacts [31][32] Other Important Information - The company repurchased $14 million of common shares in the quarter, totaling $50.1 million under the current program [5][21] - The company has a strong balance sheet with ample liquidity, including $123.9 million in cash and $82 million available under its credit facility [23][24] Q&A Session Summary Question: Strength from rest of world customers - Management indicated that the rest of world revenue is significantly stronger than 50% of total revenue, with Comcast representing 39% of total revenue [36] Question: Outlook for 2026 growth - Management sees positive indicators for 2026, with expectations of tailwinds from unified DOCSIS 4.0 and customer ramp readiness [39][41] Question: DOCSIS 4.0 readiness and product platform progress - Management reported good progress in DOCSIS 4.0 readiness, with early shipments planned for the fourth quarter [48][50] Question: Impact of Charter's CapEx cuts - Management noted that Charter's network evolution is still a priority, despite the CapEx cuts, indicating ongoing importance for service delivery [51] Question: Strong bookings and cautious guidance - Management confirmed strong bookings across multiple customers, including rest of world customers, but remains cautious about guidance due to uncertainties [58][60] Question: Tariff situation and potential impacts - Management stated that the tariff impact for Q3 is expected to be less than $1 million, with ongoing efforts to optimize the supply chain [68][70] Question: Q4 expectations and seasonality - Management anticipates some sequential growth from Q3 to Q4 but is not providing specific guidance due to uncertainties [76][78]