Financial Data and Key Metrics Changes - The company reported record revenue of $24 million in Q3 2025, an increase from $23 million in Q2 2025, marking seven consecutive quarters of revenue growth from Q1 2024 to Q3 2025 [4][10] - Gross profit for Q3 2025 increased sequentially by 8% to $8 million compared to $7 million in Q2 2025 [12] - Gross margin for Q3 2025 increased to 32%, up from 30% in Q2 2025 [14] - Net loss per share decreased to $0.07 in Q3 from $0.08 in Q2 2025, while adjusted EBITDA loss per share remained at $0.02 [14] Business Line Data and Key Metrics Changes - The company anticipates deploying over 50,000 units of its products into homes and hotel rooms by the end of Q4 2025, with significant contributions from various projects [5][6] - A major collaboration with a $3 billion mixed-use urban Smart Home City Project in Miami is expected to involve over 500,000 units of advanced smart home technologies [5] - The company is also supplying technologies to a 278-apartment project in Austin, Texas, providing over 10,000 units of its advanced technologies [5] Market Data and Key Metrics Changes - The company has signed an agreement with a prominent U.S. and international real estate developer to deploy advanced smart home technologies in Middle Eastern projects, including Saudi Arabia and Egypt [4][5] - The company is experiencing growth in deferred revenue, indicating an acceleration of revenues primarily from its e-commerce platform [11] Company Strategy and Development Direction - The company is focused on expanding its market penetration through strategic partnerships and collaborations, particularly in the real estate and hotel segments [4][5][15] - The introduction of AI-driven software for its e-commerce platform is expected to increase conversion rates and sales by 30% [7][34] - The company is leveraging a "Razor and Blade" model, where the ceiling receptacle serves as the entry point for higher-ticket items, enhancing revenue potential [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in the Middle East and through collaborations with major developers [15][19] - The company is making significant progress towards mandatory safety standardization for its products, which is expected to enhance market acceptance and safety [17][53] - Management highlighted the importance of cash conservation and leveraging relationships with manufacturers to support operations [12][17] Other Important Information - The company raised $5 million in additional capital from leading shareholders, reflecting confidence in its strategy and development [8][10] - As of September 30, 2025, the company reported a total of $13 million in cash, cash equivalents, restricted cash, and receivables [7] Q&A Session Summary Question: Can you provide insight into the near-term revenue outlook and product deployment? - The company expects to deploy over 50,000 products by the end of Q4, with a mix of higher-ticket items contributing to revenue growth [28][29] Question: What specifics can you share about the software upgrade and its impact on revenue? - The software upgrade is expected to be completed by Q1 or Q2 of 2026, aiming to increase conversion rates through AI methods [33][34] Question: What is the status of various projects, including the Marriott Hotel and Miami Smart City? - The Marriott demo has opened doors for more business, while the Miami project is still in the permitting phase, with significant supply expected in 2026 [36][56] Question: How does the company view the Middle East opportunity? - The Middle East is seen as a fast adopter of advanced technologies, with significant growth potential in commercial and residential developments [59][60]

Financial Data and Key Metrics Changes - Q3 fiscal 2025 saw a record overall transaction volume of $16.2 million, an increase of 8% year-over-year, contributing to a sequential revenue increase of $1.2 million, primarily driven by ACH, which grew 30% year-over-year [3][4] - Adjusted EBITDA for the quarter was $368,000, down from $500,000 in the previous quarter and also down from the previous year [5] - Operating cash flow was $1.4 million, with cash increasing by over $200,000 to over $7.8 million at quarter end [5][6] Business Line Data and Key Metrics Changes - ACH revenues increased by 30% year-over-year, marking the eighth consecutive quarter of growth in electronic check transaction volume [16] - Card Issuing generated sequential volume growth with total dollars loaded exceeding $75 million, and profitability continues to improve [17][18] - Output Solutions saw sequential revenue growth, with electronic-only documents delivered increasing to 20 million pieces, up about 500,000 from a year ago [19][20] Market Data and Key Metrics Changes - The credit card segment processed dollars up 12% and transactions up 75% year-over-year, with PayFac revenues increasing by 32% [8][9] - The mortgage servicing and fintech industries significantly drove growth in the PINless debit offering, which saw transaction growth of 96% and dollar growth of 87% year-over-year [16] Company Strategy and Development Direction - The company is focusing on implementing new clients faster to capitalize on a strong sales pipeline, with a commitment to recurring revenue growth [25][26] - Usio One initiative aims to capture a greater share of electronic payment and printing volume, with a unified platform for customer onboarding [11][12] - The company is exploring new product offerings, including wearables and customized solutions, to enhance its competitive edge [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong processing metrics and recurring revenue, indicating a potential inflection point for growth [22][23] - The company anticipates improved performance in Card Issuing moving forward, with expectations of benefiting from financial assistance programs related to government shutdowns [18][30] - Management emphasized the importance of maintaining pricing discipline while growing transaction volumes [15] Other Important Information - The company has repurchased approximately $750,000 worth of shares year-to-date, with over $3 million remaining on the current repurchase authorization [22][34] - The balance sheet remains strong, allowing for continued investment in organic growth and potential strategic acquisitions [22] Q&A Session Summary Question: Is there a change in sales cycles affecting future opportunities? - Management noted a strong pipeline and is focusing on faster implementations of sold clients, which represent significant volume [25][26] Question: What criteria does the company have for potential M&A transactions? - The company looks for synergy, the right acquisition price, and no existing issues that could distract from organic growth [33] Question: How has the federal government shutdown impacted state or local governments? - The company received inquiries from cities and counties looking to bridge payments during the shutdown, indicating a potential for new business [30][32] Question: Can you clarify the recurring revenue in the ACH business? - Management explained that the current revenue is largely recurring, contrasting with the previous year that included one-time events [43][45] Question: Why did credit card transaction volumes increase significantly while revenues only rose slightly? - Management clarified that transaction metrics include PINless debit, which affects revenue reporting, emphasizing that revenue is primarily driven by dollars processed [50]

Financial Data and Key Metrics Changes - Consolidated total revenue for Q3 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period [16] - Net loss attributable to common stockholders decreased to $9.4 million, or $0.71 per fully diluted share, compared to $15.3 million, or $1.18 per fully diluted share in the prior year [16] - Total adjusted EBITDA was $19.8 million in Q3 2025, up from $16.8 million in the prior year period [16][17] Business Line Data and Key Metrics Changes - Infrastructure segment revenue increased by 45.4% to $338.4 million from $232.8 million in the prior year quarter, driven by project timing and size at DBM Global [17] - DBM Global achieved adjusted EBITDA of $23.5 million, up from $20.9 million in the prior year [18] - Life sciences revenue increased by 3.3% to $3.1 million, primarily driven by R2's sales growth [19][20] - Spectrum segment revenue decreased by $800,000 to $5.6 million, with adjusted EBITDA down by $700,000 to $1 million [21] Market Data and Key Metrics Changes - DBM Global's adjusted backlog increased by approximately $500 million to just over $1.6 billion since the end of 2024 [7] - R2's year-to-date revenues increased by approximately 65% over the same period from last year, with significant growth in international markets [11] - Spectrum faced a challenging advertising environment, but new network launches are showing signs of strength in Q4 [15] Company Strategy and Development Direction - The company is exploring strategic alternatives for DBM Global and HC2 Broadcasting, indicating a focus on optimizing asset value [5] - There is a commitment to exiting life science businesses, although this process has taken longer than expected [5] - The company is focused on enhancing its infrastructure and data center capabilities, anticipating growth in these areas [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum building for 2026, driven by a growing adjusted backlog and improving market conditions [9] - The approval of MediBeacon's Lumitrace injection is expected to unlock access to a significant healthcare market in China [10] - Management noted that while EBITDA may come in slightly below 2024 levels, there is confidence in the growth trajectory for the infrastructure segment [9] Other Important Information - As of September 30, 2025, the company reported a backlog of $1.5 billion and an adjusted backlog of $1.6 billion [19] - The company had total principal outstanding indebtedness of $700.4 million, an increase from $668.3 million at the end of 2024 [23] Q&A Session Summary - There were no questions during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [24]

Financial Data and Key Metrics Changes - Cisco reported Q1 revenue of $14.9 billion, an 8% increase year-over-year, with non-GAAP net income of $4 billion, up 9%, and non-GAAP earnings per share of $1, up 10% [5][18] - Non-GAAP gross margin was 68.1%, down 120 basis points year-over-year, while non-GAAP product gross margin was 67.2%, down 170 basis points [22] - Operating cash flow was $3.2 billion, down 12% due to investments in AI infrastructure [22] Business Line Data and Key Metrics Changes - Total product revenue was $11.1 billion, up 10%, with networking revenue growing 15%, driven by service provider routing and AI infrastructure [19] - Security revenue decreased by 2%, reflecting declines in prior-generation products and a shift to cloud subscriptions [20] - Collaboration revenue was down 3%, while observability revenue increased by 6% [20] Market Data and Key Metrics Changes - Product orders grew 13% year-over-year, with service provider and cloud orders up 45%, public sector orders up 12%, and enterprise orders up 4% [21] - Product orders were up across all geographic segments, with the Americas up 16%, EMEA up 8%, and APJC up 13% [21] Company Strategy and Development Direction - Cisco is focusing on AI infrastructure, with expectations to recognize approximately $3 billion in AI infrastructure revenue from hyperscalers in fiscal year 2026 [9] - The company is expanding partnerships, including with G42 in the UAE and NVIDIA, to enhance its AI capabilities [11][12] - Cisco aims to capture the multi-year refresh opportunity in networking products as older models reach end-of-support [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI infrastructure and the critical role of secure networking as organizations deploy AI [6] - The company anticipates continued growth in AI-related orders and a robust pipeline exceeding $2 billion for NeoCloud and Sovereign Cloud [29][60] - Management acknowledged challenges in the security segment but remains committed to long-term growth targets [74] Other Important Information - Cisco returned $3.6 billion to shareholders through dividends and share repurchases, representing 125% of free cash flow in Q1 [5] - The company expects revenue for Q2 to be in the range of $15 billion to $15.2 billion and for fiscal year 2026 to be between $60.2 billion and $61 billion [24] Q&A Session Summary Question: Insights on AI orders and pipeline - Management clarified that the $3 billion AI revenue target for fiscal 2026 is based on hyperscale AI infrastructure, with expectations for at least double the orders received in fiscal year 2025 [27][28] Question: Impact of DRAM pricing on gross margin - Management noted tightening supply and significant price increases in memory, which are factored into the updated guidance for Q2 and the year [33] Question: Growth in the rest of the business - Management indicated that excluding hyperscaler growth, the rest of the business grew 9% in Q1 from an orders perspective [37] Question: Multi-year cycles and refresh opportunities - Management highlighted the ongoing refresh opportunities in enterprise routing and campus switches, with faster adoption rates than previous launches [40] Question: Silicon One penetration and traction - Management expects Silicon One to be fully rolled out across the portfolio by the end of fiscal 2029, emphasizing its performance and programmability [46] Question: Security revenue normalization - Management anticipates that the normalization of the security revenue mix will take about four quarters, with a commitment to mid-teens long-term growth [74]

Financial Data and Key Metrics Changes - The company reported record revenue of $24 million in Q3 2025, an increase from $23 million in Q2 2025, marking seven consecutive quarters of revenue growth from Q1 2024 to Q3 2025 [4][10] - Gross profit for Q3 2025 increased by 8% to $8 million compared to $7 million in Q2 2025, with gross margin rising to 32% from 30% in the previous quarter [12][14] - Net loss per share decreased by 1 cent to 7 cents in Q3 from 8 cents in Q2, while adjusted EBITDA loss per share remained stable at 2 cents [14] Business Line Data and Key Metrics Changes - The company anticipates deploying over 50,000 products into homes and units by the end of Q4 2025, with a focus on expanding into the hotel segment and smart city projects [5][6] - A significant collaboration with a $3 billion mixed-use urban smart home city project in Miami is expected to involve supplying over 500,000 units of advanced smart home technologies [5] Market Data and Key Metrics Changes - The company has signed an agreement with Global Venture Group to deploy smart home technologies in Middle Eastern projects, including Saudi Arabia and Egypt, indicating a strategic expansion into international markets [4][5] - The company is also working on projects in Austin, Texas, and has established relationships with prominent developers, enhancing its market presence [5][15] Company Strategy and Development Direction - The company is focused on leveraging its technology to create recurring revenue opportunities through upgrades, AI services, and subscriptions, emphasizing the importance of data in its business model [6][10] - The upcoming launch of AI-driven software for its e-commerce platform is expected to increase conversion rates and sales by 30%, showcasing the company's commitment to integrating advanced technology into its operations [7][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the B2B segment, which is expected to see significant growth starting in 2026 [42] - The company is making progress with safety code standardization and anticipates that its products will play a crucial role in enhancing safety in homes and buildings [17][53] Other Important Information - The company raised $5 million in additional capital from leading shareholders, reflecting confidence in its strategy and development [8][10] - The company is working on a patented advanced turbo heater fan and a variety of plug-and-play ceiling fans, which are expected to contribute to achieving cash-positive status [26] Q&A Session Summary Question: Can you provide insight into the near-term revenue outlook and product deployment? - The company expects to deploy over 50,000 products by the end of Q4, with a mix of higher-ticket items like ceiling fans and heater fans contributing to revenue growth [28][30] Question: What specifics can you share about the software upgrade and its impact on revenue? - The software upgrade is expected to be completed by Q1 or Q2 of 2026, aiming to enhance conversion rates through AI methods [33][34] Question: How does the company view the revenue mix between consumer sales and builder partnerships? - Currently, revenues are mainly from retail, but significant growth is anticipated in the B2B segment starting in 2026 [42] Question: What is the status of the various projects mentioned, including the Marriott Hotel and Miami Smart City? - The Marriott demo has opened doors for more business, while the Miami project is still in the permitting phase, with significant supply expected to start in 2026 [36][56] Question: Can you elaborate on the Middle East opportunity and its potential? - The Middle East is seen as a fast adopter of advanced technologies, with significant growth potential in commercial and residential developments [60]

Financial Data and Key Metrics Changes - Q3 fiscal 2025 saw a record overall transaction volume of $16.2 million, up 8% year over year, leading to a sequential revenue increase of $1.2 million [3] - Adjusted EBITDA for the quarter was $368,000, down from $500,000 in the previous quarter and also down from a year ago [5] - Operating cash flow for the quarter was $1.4 million, with cash increasing to over $7.8 million at quarter end [5][6] Business Line Data and Key Metrics Changes - ACH revenues increased by 30% year over year, marking the eighth consecutive quarter of growth in electronic check transaction volume [16] - Card processing volumes increased, with credit card segment dollars processed up 12% and transactions processed up 75% year over year [8] - Output Solutions generated sequential revenue growth, with electronic-only documents delivered increasing to 20 million pieces, up about 500,000 from a year ago [19] Market Data and Key Metrics Changes - The company is experiencing strong demand in the mortgage servicing and fintech industries, particularly for its PINLESS Debit offering, which saw a 96% increase in transactions processed [16] - The healthcare market is also a focus, with expectations of significant volume increases from key accounts in the upcoming year [18] Company Strategy and Development Direction - The company is focusing on recurring revenue, with most new and total revenue being recurring in nature [4] - Technology upgrades and new product launches are expected to position the company for accelerated growth [7] - The UCO One initiative aims to capture a greater share of customers' electronic payment and printing volume, with a unified platform for customer onboarding [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline of future opportunities and the focus on faster implementations of sold services [25] - The company anticipates a rebound in card issuing performance as comparisons normalize in the upcoming quarters [17] - There is a sense of being on the verge of a potential inflection point, with growing volumes and positive cash flow expected to continue [22][23] Other Important Information - The company has repurchased approximately $750,000 worth of shares year-to-date, with over $3 million remaining on the current repurchase authorization [22][34] - Management is strict about acquisition criteria, focusing on synergy, favorable pricing, and avoiding problematic acquisitions [33] Q&A Session Summary Question: Are there changes in sales cycles affecting future opportunities? - Management noted a strong pipeline and emphasized the focus on implementations rather than sales cycles [25][27] Question: Has the federal government shutdown impacted state or local governments? - Management indicated that they received numerous inquiries from local governments seeking assistance during the shutdown, but some programs may be delayed [30][32] Question: What criteria does the company consider for potential acquisitions? - The company looks for synergy, favorable pricing, and avoids acquisitions with existing issues that could distract from organic growth [33]

Financial Data and Key Metrics Changes - Q3 revenue reached $27.4 million, representing an 18% increase compared to $23.3 million in Q3 2024 [6][11] - Adjusted EBITDA for Q3 was $1 million, a significant improvement from a negative $3.8 million in Q3 2024 [12] - Gross profit increased by 25% to $17.9 million, with gross margins improving to 65.2% from 61.2% in the prior year [12] - Net loss decreased by 28% to $8 million compared to $11.2 million in the previous year [12] Business Line Data and Key Metrics Changes - Total billable volume for Q3 was approximately 33,000 tests, with tissue-based tests increasing by 18% and liquid-based tests growing by 65% year-over-year [11][12] - Tissue-based tests accounted for 76% of revenues in Q3 [11] Market Data and Key Metrics Changes - The company reported a compound annual growth rate of 45% in its sales organization over the last four years, while reducing sales and marketing expenses as a percentage of revenue [4] - The integration of the Exosome Diagnostics business is expected to enhance the company's market position in precision diagnostics for urology [3][10] Company Strategy and Development Direction - The company is focused on integrating the ExoDx acquisition to optimize sales and operational efficiencies, with a strategic expansion of the sales organization from 50 to 60 direct sales representatives [7][10] - MDxHealth aims to maintain its revenue guidance of $108-$110 million for 2025, despite the decision to forgo the germline offering [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained top-line growth and advancing operating profitability, following two consecutive quarters of positive adjusted EBITDA [5][14] - The company is committed to enhancing the customer experience and operational excellence, which are seen as critical to driving future growth [14][15] Other Important Information - Cash and cash equivalents as of September 30, 2025, were reported at $32 million [13] - The company is prioritizing the integration of ExoDx and expects to provide updates on progress in early 2026 [10][14] Q&A Session Summary Question: Contribution of ExoDx in the quarter - Management indicated that there was no material contribution from ExoDx in Q3 due to the timing of the acquisition, but they remain confident in meeting revenue guidance [18][19] Question: Performance of GPS - GPS and ConfirmMDx tests reported an 18% growth, with management confident in maintaining this performance despite a slight slowdown in patient flow [23][24] Question: Germline test strategy - The company decided to forgo the germline test for now, focusing resources on the ExoDx integration, but plans to reevaluate the opportunity in 2026 [10][56] Question: Gross margins and ExoDx impact - Management expects ExoDx to be neutral to accretive to gross margins, with a clearer view anticipated after a couple of quarters of integration [59][60] Question: Sales team expansion - The sales team was expanded by adding 10 reps from ExoDx, with territory adjustments made to optimize coverage [67][68]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $13.8 million, down from $22.5 million in the same period last year, primarily due to an increase in deferred revenue of $10.9 million [16][18] - Net loss for Q3 2025 was $7.9 million compared to a net income of $233,000 in the same period last year, driven by decreased net revenue and increased expenses [18] - Bookings for Q3 increased by 9.3% to $17.6 million compared to $16.1 million from the same period last year [19] Business Line Data and Key Metrics Changes - Total ARK sales increased by $2.2 million compared to the same period last year, while Salty TV sales increased by $300,000 [16] - Units sold for the gaming business increased by 7.8% year over year, with total units sold for the nine-month period rising 38.7% to 4.8 million [10] - Average daily active users (DAU) for ARK: Survival Evolved and ARK: Survival Ascended reached approximately 122,658 and 92,876, respectively [10] Market Data and Key Metrics Changes - Deferred revenue balance as of September 30, 2025, was $36.4 million, with $35.3 million due to non-refundable payments [17] - The company expects to recognize approximately $26.5 million of deferred revenue within the next 12 months, with $5.8 million expected to be recognized in Q4 2025 [17][18] Company Strategy and Development Direction - The company is pursuing a stablecoin project to position itself as a pioneer in digital payments within the gaming industry, viewing stablecoins as the future of digital transactions [5][6] - Upcoming growth drivers include the launch of ARK: Lost Colony and the anticipated release of Echoes of Elysium on December 4, 2025 [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in net revenue was primarily due to timing of revenue recognition rather than a reduction in sales or demand [7] - The company remains optimistic about a stronger Q4, driven by the upcoming launch of new content and continued engagement across its gaming portfolio [9][22] Other Important Information - The company participated in several industry events to drive awareness of its titles, including Gamescom and TwitchCon [11] - The interactive film segment has seen growth, with 67 short-film dramas released through the Salty TV app [12] Q&A Session Summary Question: Can you discuss the gross margins in the quarter? - The decrease in gross margin was attributed to fixed license fees and deferred revenue from Lost Colony sales [23][24] Question: Can you elaborate on the timing of deferred revenue recognition? - Most deferred revenue is expected to be recognized within the next 12 months, with $5.9 million related to Lost Colony expected in Q4 2025 [25][26] Question: What does the remaining deferred revenue consist of? - The majority of deferred revenue is related to gaming performance obligations and some deposits for future games [27][28]

Financial Data and Key Metrics Changes - The company's net loss for Q3 2025 was $43.8 million, or $0.92 per share, compared to a net loss of $29.8 million, or $0.70 per share for Q3 2024 [19] - Non-GAAP adjusted net loss was $37.2 million, or $0.78 per share for Q3 2025, compared to a non-GAAP adjusted net loss of $27.6 million, or $0.65 per share for Q3 2024 [19] - Research and development expenses increased to $34.9 million for Q3 2025 from $27.6 million in Q3 2024, with a significant portion attributed to increased employee and consulting expenses [19][20] - General and administrative expenses rose to $7.9 million for Q3 2025 from $2.5 million in Q3 2024, primarily due to increased employee and consulting expenses [20] Business Line Data and Key Metrics Changes - The company achieved significant clinical and regulatory milestones, including the release of positive data from the PIK3CA wild-type cohort of the phase III VIKTORIA-1 study [4][5] - The median progression-free survival (PFS) for the gedatolisib triplet was reported at 9.3 months, compared to 2 months for fulvestrant, indicating a 7.3-month improvement [7] - The objective response rate for the gedatolisib triplet was 32%, with a median duration of response of 17.5 months, while the doublet showed an objective response rate of 28% and a median duration of response of 12.0 months [9][10] Market Data and Key Metrics Changes - The total addressable market for gedatolisib in the second-line setting is estimated to be between $5 billion and $6 billion, with potential peak revenues of $2.5 billion to $3 billion [17][18] - The company estimates there are approximately 37,000 patients in the U.S. with HR positive, HER2 negative, advanced breast cancer who have progressed after treatment with a CDK4/6 inhibitor [17] Company Strategy and Development Direction - The company is preparing for a potential launch of gedatolisib, having ramped up efforts following the positive data release [15] - The strategic launch plan includes building the organization and internal systems required to operate as a commercial stage company [15] - The company aims to establish gedatolisib as the new standard of care in the second-line setting for HR positive, HER2 negative, advanced breast cancer [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for gedatolisib to address critical needs in the second-line space, highlighting its unique mechanism of action and favorable safety and efficacy profile [18] - The company expects to complete the NDA submission for gedatolisib by the end of Q4 2025 [26] - Management noted that the positive interim overall survival data could support the drug's approval process [38] Other Important Information - The company completed concurrent offerings resulting in net proceeds of approximately $287 million, which will support commercial launch preparations and other strategic initiatives [21][22] - The company ended the quarter with approximately $455 million in cash, cash equivalents, and short-term investments [20] Q&A Session Summary Question: Plans for additional data at the San Antonio Breast Cancer Symposium - The company plans to present additional subgroup analyses and efficacy data at the conference [24] Question: Impact of second-line data on enrollment in VIKTORIA II - Enrollment is on track, and investigators are excited about the results, which may positively impact visibility and credibility [24] Question: Real-time oncology review submission process - The submission for the wild-type cohort will be separate from the mutant submission, with potential for a real-time oncology review for the mutant data depending on the results [25][27] Question: Duration of therapy and pricing strategy - The company is analyzing the duration of therapy and pricing strategy, with benchmarks around $25,000 for similar therapeutics [28][29] Question: Plans for commercialization outside the U.S. - The company plans to find partners for commercialization outside the U.S. and is preparing for regulatory submissions in Europe and Japan [31] Question: Overall survival trends and regulatory implications - The interim overall survival analysis showed a favorable trend, which could support the drug's approval process [38]

Financial Data and Key Metrics Changes - Cisco reported Q1 revenue of $14.9 billion, an 8% increase year-over-year, with non-GAAP net income rising to $4 billion, up 9% [16][18] - Non-GAAP earnings per share (EPS) reached $1, reflecting a 10% growth, indicating that earnings are growing faster than revenue [16][18] - Total annualized recurring revenue (ARR) was $31.4 billion, a 5% increase, with product ARR growing by 7% [18] Business Line Data and Key Metrics Changes - Total product revenue was $11.1 billion, up 10%, while service revenue increased by 2% to $3.8 billion [17] - Networking products saw a significant growth of 15%, driven by service provider routing and AI infrastructure [17] - Security revenue declined by 2%, attributed to shifts towards cloud subscriptions and declines in prior-generation products [17][19] Market Data and Key Metrics Changes - Product orders grew by 13% year-over-year, with service provider and cloud orders up 45% [18] - Orders from the public sector increased by 12%, while enterprise orders rose by 4% [18] - Geographic performance showed the Americas up 16%, EMEA up 8%, and APJC up 13% in product orders [18] Company Strategy and Development Direction - Cisco is focusing on AI infrastructure and secure networking as critical growth areas, with expectations of $3 billion in AI infrastructure revenue from hyperscalers in FY2026 [8][21] - The company is expanding partnerships, including with G42 and NVIDIA, to enhance its AI capabilities and product offerings [10][11] - Cisco aims to capitalize on the multi-year refresh opportunity in networking products as older models reach end-of-support [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI-related products and the need for modern networking infrastructure to support AI initiatives [5][6] - The company anticipates continued growth in the second half of FY2026, driven by strategic investments and innovation [20][21] - Management acknowledged challenges in the supply chain, particularly regarding memory and optics, but remains optimistic about meeting demand [27][54] Other Important Information - Cisco returned $3.6 billion to shareholders through dividends and share repurchases, representing 125% of free cash flow in Q1 [4][19] - The company reported a non-GAAP gross margin of 68.1%, slightly down from the previous year but above guidance [19] - Total cash, cash equivalents, and investments at the end of Q1 were $15.7 billion [19] Q&A Session Summary Question: Insights on AI orders and WebScale opportunities - Management clarified that the $3 billion AI revenue target for FY2026 is based on existing customer orders, with expectations for at least double the orders from FY2025 [22][23] Question: Growth in enterprise orders and pipeline - The NeoCloud and Sovereign Cloud enterprise pipeline exceeds $2 billion, with $200 million booked in Q1, indicating strong future potential [23][24] Question: Impact of DRAM pricing on gross margin - Management acknowledged tightening supply and price increases in memory and optics but stated these factors are accounted for in their guidance [27][28] Question: Multi-year cycles and product refresh opportunities - Management highlighted the accelerated ramp of new products, indicating strong customer interest in modernizing network infrastructure [30] Question: Security revenue and future growth expectations - Management reiterated commitment to mid-teens long-term growth in security revenue, expecting normalization of the mix shift to take about four quarters [51][52]