Financial Data and Key Metrics Changes - Q1 fiscal year 2025 revenue was approximately 2.44million,reflectinga441.7 million, but a 21% decrease compared to Q1 fiscal year 2024 revenue of approximately 3.1million[16]−GrossmarginforQ1fiscalyear2025wasapproximately790.46 million, an improvement from an adjusted EBITDA loss of approximately 1.29millionforQ1fiscalyear2024[19]−Thecompanyexpectsrevenueinthenextthreequarterstoexceed3 million on average per quarter, with aggregate revenue for fiscal year 2025 projected to be in the 11millionto12 million range, representing a 25% to 35% increase compared to fiscal year 2024 [17] Business Line Data and Key Metrics Changes - The company delivered the first phase of a large DoD contract and made significant progress towards securing multimillion-dollar contracts in spatial computing and AI-driven immersive software solutions, with short-term aggregate value expected between 5millionto10 million [5] - Other immersive businesses continued positive momentum, including contracts with a global water and hygiene infrastructure company and a global energy company, both in the mid-six figure range [6] - QReal, a subsidiary, saw a significant increase in revenue driven by demand for AR lenses and 3D models [6] Market Data and Key Metrics Changes - The company has faced challenging headwinds in the immersive industry over the past two years but is now experiencing concrete positive growth indicators [7] - The divestiture of QReal is expected to create approximately 4millionofnetcashvalueoverthenexttwoyears,simplifyingoperationsandeliminatingTurkeycountryrisk[12][13]CompanyStrategyandDevelopmentDirection−Thecompanyisexploringaggressivestrategicoptionstounlockvalueinherentinitsbusinessandassets,whilefocusingonprofitablegrowth[10][23]−ThedivestitureofQRealispartofastrategicrealignmenttostreamlineoperationsandfocusoncorebusinessareas[11]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutrevenuegrowthandcashflowpositivityintheupcomingquarters,despitethecurrentdisconnectbetweenintrinsicvalueandmarketvaluation[8][9]−Thecompanyexpectstomaintainacleancapitalstructurewithnodebtanddoesnotintendtoraisecapitalintheforeseeablefuture[21][22]OtherImportantInformation−Thecompany’scashandequivalentpositionasofSeptember30,2024,wasapproximately1.4 million, with an additional 0.9 million in accounts receivable [21] - The company anticipates that the transformation and positive developments achieved recently will not yet be reflected in its stock price [9] Q&A Session Summary Question: Discussion on operating expense level - Management confirmed that the current operating expense is under 1 million per month, which includes cost savings related to QReal [26][27] Question: Customer opportunities and industry diversity - Management noted that many customers are approaching the company with needs, indicating a strong network of relationships and potential for future growth [28][29] Question: Software license revenue segment - Management indicated that the recent doubling of software license revenue is expected to be a more durable figure moving forward, with potential for growth as contracts expand [32][34] Question: Government contracts and budgetary processes - Management clarified that government contracts are tied to the upcoming budgetary process, with expectations for approvals early in 2025 [36]
The Glimpse (VRAR)2024-11-15 00:54