Total Revenue

Down 2.7% (from $226.31M in Q1 2024 to $220.242M in Q1 2025)

Total revenue decreased modestly primarily due to lower orders from small- and medium-sized customers amid industry normalization and macroeconomic uncertainties, echoing prior trends of slowed purchases. " "

Net Income

From a slight profit of $103K to a net loss of $4,787K

Net income deteriorated dramatically as increased operating expenses—such as higher sales incentive compensation—and reduced revenue squeezed margins, a trend building on prior period challenges. " "

Operating Income

Worsened from a loss of $2,032K to a loss of $6,081K

Operating income declined further due to rising expenses relative to revenues, with cost pressures intensifying and lower revenue failing to cover the increased operating costs compared to last year. " "

Operating Cash Flow

Increased 17% (from $14,691K in Q1 2024 to $17,212K in Q1 2025)

Operating cash flow improved as enhanced working capital management—especially through a reduction in accounts receivable—helped offset the negative effects of lower revenue, building on earlier improvements in cash collections. " "

Geographic Revenue – International

Fell 44% (from $16.21M in Q1 2024 to $9.07M in Q1 2025)

International revenue declined sharply due to reduced shipments to Europe and the Americas outside the U.S., while U.S. revenue remained flat, highlighting a continued strategic focus on domestic markets observed in prior periods. " " "

Cash & Cash Equivalents

Dropped by 52% (from $88,418K in Q1 2024 to $42,300K in Q1 2025)

The significant decline in cash is driven by substantial cash outflows for stock repurchases and other financing activities, reflecting a strategic capital allocation decision that intensified compared to the previous period. " "

Marketable Securities

Increased 58% (from $151,064K in Q1 2024 to $240,010K in Q1 2025)

The balance in marketable securities surged as the company reallocated excess cash into short-term investments, a shift that builds on past actions to shelter cash amid lower operating inflows and market volatility. " "

Accounts Receivable

Decreased by 25% (from $100,307K in Q1 2024 to $75,511K in Q1 2025)

Accounts receivable declined significantly, mirroring lower revenues and effective collection measures, consistent with the downward trend in sales observed in the prior period. " "

Inventory

Down 16% (from $119,782K in Q1 2024 to $100,835K in Q1 2025)

The reduction in inventory reflects leaner inventory management in response to decreased product demand and a cautious approach following prior inventory adjustments seen in earlier reporting periods. " "

Revenue Guidance

Q2 2025

$204 million–$210 million "

$221 million–$227 million "

raised

Non-GAAP Gross Margin

Q2 2025

Expected to remain flat to slightly up "

Expected to show a slight increase from a 56.2% baseline "

no change

Annual Gross Margin Improvement

FY 2025

Anticipated to be at the lower end of a 100–200 bps target "

Anticipated improvement within a 100–200 bps target "

raised

Non-GAAP Operating Expenses

FY 2025

Planned to be flat to slightly up compared with FY 2024 "

Planned to be flat to slightly up compared with FY 2024 "

no change

Sequential Revenue Growth

FY 2025

no prior guidance

Expected to continue growing sequentially every quarter "

no prior guidance

Stock Repurchase Program

FY 2025

no prior guidance

Increased by $100 million "

no prior guidance

Recurring Revenue & RPO Growth

Consistently discussed in Q2–Q4 earnings calls with emphasis on growing RPOs and emerging recurring revenue streams " " "

Q1 2025 highlighted strong recurring revenue growth with higher sequential and year‐over‐year RPOs driven by longer-term contracts and adoption of the platform " "

Consistent positive momentum with growing recurring metrics, reinforcing the company’s shift toward recurring revenue.

BEAD Program Opportunity vs Near‐Term Uncertainty

Addressed in Q2–Q4 calls as a significant long–term tailwind combined with near–term timing ambiguities " " "

Q1 2025 reiterated BEAD as a major long–term opportunity while emphasizing continued near–term uncertainty and delays in disbursement " "

Steady message: long–term optimism remains, though near–term execution remains uncertain.

Revenue Growth Volatility and Lumpy Earnings

Q2 and Q3 calls mentioned inherent “lumpiness” with pull–forward effects and variable revenue due to customer ordering dynamics " " "

In Q1 2025, executives discussed a notable pull–forward effect from a large customer along with inherent revenue volatility, yet raised guidance confidently " " "

Inherent volatility persists; Q1’s pull–forward effects illustrate recurring fluctuations with a slightly upbeat outlook.

Operational Execution, Supply Chain Management, and Margin Discipline vs Compression

Discussed throughout Q2–Q4 with steady improvements in inventory metrics, controlled expenses, and strong gross margins " " "

Q1 2025 emphasized record non–GAAP margins, diversified supply chain strategies (including U.S.–based manufacturing) and a focus on passing through cost pressures " " "

Continuous operational improvement and disciplined margin management, reflecting an optimized supply chain and execution framework.

Strategic Transformation from Hardware–Centric to Managed Services/Recurring Revenue Model

Consistently raised in Q2–Q4 as the company shifted focus from hardware to higher–margin managed services while addressing legacy provider challenges " " "

Q1 2025 reiterated the transformation by emphasizing the growth of its platform, cloud, and managed services model along with customer success initiatives " "

A steadfast strategic shift that remains central to future growth, with ongoing customer transformation and recurring revenue emphasis.

Tariff Uncertainty

Not mentioned in Q2–Q4 earnings calls

Q1 2025 introduced a detailed discussion on tariff uncertainty, noting no immediate impact, proactive inventory management, and plans to pass through costs to customers " " "

A new topic in Q1 2025; its emergence signals growing external cost concerns, although managed by proactive supply chain measures.

Weakening Capital Expenditures and Shifting Customer Spending Patterns

In Q2 2024, executives discussed reduced CapEx among large/medium customers and a shift toward premises–related spending, while Q3 and Q4 were less explicit on this topic " "

Q1 2025 mentioned that customers are investing appropriately in capital plans with resilient broadband demand, underscoring subscriber–driven investments " " "

While earlier periods noted a weakening in traditional CapEx, the current period underscores resilience and a shift toward subscriber–driven spending.

International Performance Variability

Q4 2024 clearly discussed “lumpy” international performance with expectations for continued variability; Q3 and Q2 had little or no commentary "

Q1 2025 did not specifically address international variability, suggesting it’s less in focus compared to domestic performance

The variability remains an acknowledged factor when mentioned, but its reduced emphasis in Q1 may indicate a lower priority or stabilized outlook.

Risks Associated with Transitioning to a 'New Normal' in Hardware Orders

Q2–Q4 earnings calls detailed risks with longer lead times, smaller but more frequent orders, and normalization challenges " " "

Q1 2025 contained no explicit discussion on these risks, implying that the transition may be viewed as largely completed or stabilized

Earlier concerns appear to have subsided; the absence in Q1 suggests the ‘new normal’ in hardware orders is now accepted and less risky.