Vecima Networks Q4 2024 Earnings Call Transcript

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Provided by Quartr
September 19, 2024

There are 5 speakers on the call.

Operator

Hello. This is the Chorus Call conference operator. Welcome to Bessemer Networks 4th Quarter Fiscal 20 24 Earnings Conference Call and Webcast. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

Operator

Presented today on behalf of Bessemer Networks are Sumit Kumar, President and CEO and George Shemet, Chief Financial Officer. Today's call will begin with executive commentary on Bessemer's financial and operational performance for the Q4 year end fiscal 2024 results. Lastly, the call will finish with a question and answer period for analysts and institutional investors. The press release announcing the company's 4th quarter year end fiscal 2024 results as well as DTM's supplemental investor information are posted on Bessemer's website atwww.bessemer.com under the Investor Relations heading. The highlights provided in this call should be understood in conjunction with the company's audit annual consolidated financial statements and accompanying notes for the years ended June 30, 2024, 2023.

Operator

Certain statements in this conference call and webcast may constitute forward looking statements within the meaning of applicable securities laws from which Bessemer's actual results could differ. Consequently, SMBs should not place undue reliance on such forward looking statements. All statements other than the statements of historical facts are forward looking statements. These statements include, but are not limited to, statements regarding management's intentions, beliefs or current expectations with respect to market and general economic conditions, future sales and revenue expectations, future costs and operating performance. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict and or are beyond our control.

Operator

DASML disclaims any intention or obligation to update or revise any forward looking statements as a result of new information, future events or otherwise, except as required by law. Please review the cautionary language in the company's 4th quarter earnings report and press release as well as its 2024 Annual Report regarding the various facts, assumptions and risks that could cause actual results to differ. These documents are available on Bessemer's website at www.bessemer.com under the Investor Relations heading and on SEDAR at www.sedarplus. Ca. At this time, I would like to turn the conference over to Mr.

Operator

Kumar to proceed with his remarks. Please go ahead.

Speaker 1

Good morning, and welcome, everyone. Thank you for joining us. I want to start today by acknowledging and thanking Dale Boot, whose retirement we announced earlier this week. In the 13 years that Dale was a part of the VESMA team, including the past 5 years as our Chief Financial Officer, Dale has been instrumental to our growth and development. As CFO, he helped deliver 5 years of growth and this past year the best 6 months in Vessma's history.

Speaker 1

Dale made many other contributions to Vessma, including building, managing and mentoring a strong finance team. One of the outcomes of that team building is that Jud Schmidt, previously our VP Finance and Corporate Controller, is succeeding Dale as Chief Financial Officer. Jud has been a part of ESMA for a total of 9 years, including 7 directly with Bessemer and 2 years with Concurrent, which we acquired in 2017. He's a highly experienced leader with deep knowledge of Bessemer and public company finance. He also has significant management and executive experience, including as CFO with a number of large companies.

Speaker 1

I'm delighted to welcome Jud to the senior executive team, and you'll hear from Jud directly today as he'll be providing the financial color on today's call. Before we get to that, however, I'm going to start with some commentary on the fiscal year and the Q4. As we expected, fiscal 2024 was a year of 2 distinctly different halves. During the 1st 6 months, the DAA environment was undergoing a transition in which customers caught up on delayed projects and worked through inventory we helped them build through the previous year's supply chain challenges. Those challenges began resolving in the second half as customers started to move forward with their DAA network upgrades supported by multiple new Vessimo product rollouts.

Speaker 1

With our sales momentum building again, we went on to achieve the best 6 month revenue and adjusted EBITDA results in Bessemer's history. That included back to back record revenue quarters with Q3 sales climbing to an all time high of $80,100,000 and Q4 taking it up another notch to $87,500,000 dollars In total, we achieved $291,000,000 of sales in fiscal 2024, together with adjusted EBITDA of $53,800,000 and adjusted earnings per share of $0.89 despite a slower first half. Our Video and Broadband Solutions segment generated $236,100,000 of the full year sales, supported by record segment performance in both the 3rd and 4th quarters. As we expected, Entra products accounted for the majority of these results. We benefited from continued strong demand for our Entra optical 10 gig EPON products for fiber to the home as customers broaden those fiber to the home deployments as part of funded rural broadband programs.

Speaker 1

But it was delivery of new Entra products that provided an even greater contribution. The key highlight of our year was the introduction and ramp of deliveries of our new ERM3 Remote PHY devices to our lead customer, Charter. As we've discussed on previous calls, Charter is planning to use our solution for a significant portion of its footprint wide hybrid fiber coax upgrade. The ERM3 quickly became our top selling product of fiscal 2024, helping to drive record Q3 and Q4 revenue performance and more than doubling our Remote PHY sales on a full year basis. In Q4, we also kicked off deployments of another important new product, our EN9000 Generic Access Platform or GAAP node, which provides operators with a future proof path to 10 gs.

Speaker 1

We ramped up manufacturing in this node in preparation for anticipated strong adoption in fiscal 2025. Also in Q4, we initiated shipments of our new Entra EXS 1610 All PON Shelf, which enables customers to cost effectively deploy fiber to the home in any market or hub deployment. And we continue lab trials of our new Entra VCMTS or virtualized cable modem termination system with our lead Tier 1 customer, while securing additional customer engagements for this new Entra cloud platform. I want to emphasize that each one of these products represents a major new growth driver for Bessemer. Combined, they form a powerful catalyst for growth that promises to propel Entra results in fiscal 2025 and future years.

Speaker 1

I should add that subsequent to the year end, we also paved the way for access to the massive $42,500,000,000 U. S. Broadband Equity Access and Deployment Fund or BEED program as we commenced manufacturing of some of our fiber to the home optical products with a partner in the U. S. This now enables us to meet Buy America provisions under the program, giving us access to huge new opportunities for our fiber access portfolio in Entra.

Speaker 1

So a very big year for Entra developments and deployments that carries on. And it's clearly no surprise that Entra was our fastest growing product family again in fiscal 2024, representing 73% of our consolidated sales. In total, our customer engagements for Entra climbed to 115 during the year, up from 107 at the start of the year, and 62 of those customers are now purchasing our Entra cable and fiber access products for use in their networks. This includes deployments with 8 of the top 12 largest cable operators in North America, which provides a strong indicator of VESMA's continued leadership in the DAA landscape. Looking now at highlights from our other business segments, our Content Delivery and Storage segment generated sales of $48,200,000 in fiscal 'twenty four.

Speaker 1

While that was 8% lower than the previous year, our results included a 10% increase in higher margin services revenue, reflecting the growing list of customers for a deployed base of media scale IPTV network solutions. This in turn contributed to strong segment gross margin performance of 56.7% for the year, up from 53.1% in fiscal 'twenty 3. Our CDS results included initial revenue also from the successful launch of our new dynamic ad insertion solution with 2 U. S. Customers in Q4, with further customer additions being expected in fiscal 2025.

Speaker 1

That's an important new offering for Bessemo, one that significantly supports our customers' ability to monetize their video assets. On the innovation front, we released new versions of our Media Scale Origin and Dynamic Content products, which include additional dynamic ad insertion features along with other important advances in the offering aligned with customer objectives. And we launched a new next generation recording system for MediaScaled Cloud DVR during the year. We also made important strides in our standards compliant development of the MediaScale OpenCEN, Open Caching platform, which we expect to evolve into a material growth driver for the business in the long term. Once again, Open Caching allows operators to, for the first time, monetize the millions of OTT streaming video packets crossing their networks for free today, while at the same time greatly increasing viewer quality of experience and reducing caching costs for the streamers.

Speaker 1

Turning to telematics, we continue to build on the segment's profitable recurring revenue contribution as we advanced uptake of our successful movable asset tracking platform. We added 50 new asset tracking customers during the year and increased the total number of movable assets we monitor to over 68,000, an increase of 20,000 from last year. This in turn helped us grow sales in telematics in the 4th quarter by approximately 22% year over year. And our Telematics segment achieved a strong gross margin of 67.5%. So overall, a year of across the board achievements for Bessemer, and we ended in a strong financial position with $84,900,000 of working capital and a $30,000,000 reduction in our short term borrowings between Q3 and Q4.

Speaker 1

That was after continuing to invest in working capital, R and D and organic growth and returning cash to our investors in the form of our regular dividends of $0.22 per share across the year. Bessemer is moving forward in an excellent position to capitalize on the significant growth opportunities we see ahead. I'll tell you more about our outlook in just a few minutes. First, though, I'll turn the call over to Jud to provide our Q4 financial review. Jud?

Speaker 2

Thanks, Sumit, and thank you for the introduction earlier. I just wanted to offer my sincere thanks to Dale, who is not only my boss, but my friend, and I certainly wish him well in his retirement. I'm grateful for the opportunity to serve Bessemer as its CFO in what will undoubtedly be an exciting future for the company. Thanks to Sumit, the Board and the rest of the management team for their bold confidence. Good morning to everyone who is here with us on the call today.

Speaker 2

I'll be reviewing our Q4 financial performance in more detail. And for the purposes of this call, I'll assume that everyone has seen our Q4 year end fiscal 'twenty four news release, MD and A, which provides much more detail than what I'll be covering today and financial statements posted on Bessemer's website. As Sumit indicated, we had a great quarter to end the fiscal year. Starting with consolidated sales, we achieved a strong close to the year with record Q4 revenue of $87,500,000 and that was up 16% year over year and 9% on a sequential quarterly basis. Our Video Broadband Solutions segment accounted for $74,700,000 of these sales with revenues growing 31% year over year and 9% quarter over quarter to achieve a new all time segment high.

Speaker 2

As we predicted, ENTRE DAA sales were the key driver of this record performance supported by the ENTRA product rollouts that Sumit discussed earlier, our Q4 DAA sales grew 35% year over year and 13% quarter over quarter to a new quarterly high of $68,700,000 VBS segment sales also included a $5,900,000 contribution from our commercial video products. In our content delivery and storage segment, we continue to experience quarterly revenue fluctuations with Q4 sales of $11,100,000 decreasing from the record quarter we achieved in Q4 of last year, but increasing 8% as compared to Q3 of this year. Each customer's purchasing cycle for CDS products are different. This results in the lumpiness in quarter to quarter CDS revenues that we see. I'm pleased to note though that our CDS segment contribute continued to benefit from higher margin services revenues.

Speaker 2

Services revenues were up 10% year over year. Turning to telematics. This segment turned in another growth quarter with sales of 1.8 $1,000,000 increasing 22% year over year and 4% quarter over quarter as we continue to achieve gains with our movable asset solution strategies. Turning to Q4 operating expenses, the notable changes year over year were as follows. R and D expenses increased by $1,900,000 to $11,000,000 This primarily reflects a targeted decrease in salary and wage costs at the beginning of fiscal 2024 and higher capitalized development costs as we continue to invest in future product development.

Speaker 2

Sales and marketing expenses for the Q4 were $700,000 higher at $8,500,000 mostly due to higher salaries and wages, as well as additional expenses aimed at supporting future sales such as trade show participation. 4th quarter G and A expenses increased by $600,000 to $8,500,000 This reflects higher staffing costs as well as expenses aimed at supporting future growth within the organization. Other expenses decreased by $1,400,000 to $200,000 reflecting a $2,400,000 gain on the sale of our office property in Victoria, partially offset by advisory fees for our failed acquisition of Casa Systems and the settlement of third party support contracts, both non recurring. In total, our 4th quarter OpEx was lower at $28,500,000 a decrease of $4,200,000 year over year. As I just noted, I encourage each of you to read our MD and A for more details in this area.

Speaker 2

Also as noted in our past calls, reported R and D expense in a period is typically different than the actual R and D expenditure. That's because certain R and D expenditures are deferred until product commercialization. Adjusting for these deferrals, amortization of deferred development costs and investment tax credits, our actual cash R and D investment increased to $15,600,000 or 18 percent of revenues in the 4th quarter from $15,300,000 or 20 percent of revenues in Q4 of last year. Looking at our bottom line results, 4th quarter operating income was up 125% year over year to $12,200,000 This primarily reflects the higher VBS sales, partially offset by an overall lower gross margin percentage of 46.5% as compared to 50.5% in the same period last year. The change in gross margin percentage was largely driven by a different product mix in the VBS segment as well as a lower percentage of high margin CDS sales in our overall revenue mix.

Speaker 2

We recorded a foreign exchange loss of $2,000,000 in the 4th quarter, which compares to a foreign exchange gain of $1,300,000 in the same period last year. A weakening Canadian dollar negatively impacted the translation of monetary liabilities resulting in this FX loss. As a result, I'm pleased to report we achieved Q4 net income of $8,300,000 or $0.34 a share, which was up sharply from $5,100,000 or $0.21 per share in the same period of fiscal 2023. Our record revenues together with a tighter control of operating expenses and despite the foreign exchange loss helped us increase adjusted EBITDA to $16,000,000 in Q4. That was 5.8% higher than in the same period last year.

Speaker 2

Turning now to the balance sheet. We ended the 4th quarter with $2,100,000 in cash as compared to $2,300,000 in the same period last year. Working capital of $84,900,000 increased slightly from $83,700,000 in Q4 of fiscal 2023 $82,100,000 at the end of last quarter. While working capital has remained relatively consistent over the last several quarters, the components of working capital can be subject to significant swings from quarter to quarter. Our product shipments can be lumpy, reflecting requirements of our major customers.

Speaker 2

Other timing issues like contracts with greater than 30 day payment terms also affect working capital, particularly if shipments are back end weighted for a quarter. Lastly, cash flow provided by operations for the Q4 increased to $36,100,000 from $4,600,000 during the same period last year. As a result of this $31,500,000 increase in operating cash flows, we were able to pay down our revolving line of credit by $30,000,000 in the 4th quarter, which had peaked at $81,700,000 at the end of the 3rd quarter. On a final note, the Board of Directors approved a quarterly dividend of $0.055 per common share payable on November 4, 2024 to shareholders of record as at October 11, 2024. It's important to note that this dividend will be designated as an eligible dividend for Canadian income tax purposes.

Speaker 2

So just to summarize, we had an excellent Q4 with robust year over year sales growth and tight control of operating expenses, helping out to close out the year with a strong bottom line performance. Now back to Sumit.

Speaker 1

Thank you, Jud. Looking ahead, we share revenue momentum continuing to build in fiscal 2025 as we leverage our world leading portfolio of DAA and IPTV solutions. On the DAA side, multiple Tier 1 MSOs are now underway with major network rollouts supported by Bessemer's next gen cable and fiber access solutions with more set to follow. In our Video and Broadband Solutions segment, our new products are acting as important growth drivers in this environment. We anticipate near term that our contributions from our ER M3 Remote PHY devices and EN9000 generic access platforms will position us for a solid start to the growth year.

Speaker 1

The EXS 1610 all pawn shelf, in addition to another remote LTE variant we're introducing this year, are also expected to build on this momentum as the year progresses. And with our U. S. Manufacturing now in place for the applicable parts of our fiber access portfolio, we're positioned to access opportunities related to the $42,500,000,000 U. S.

Speaker 1

Bead broadband infrastructure funding program in calendar 2025. Longer term, our natural entry into the VCMTS market provides another important growth opportunity for Bessemer. As these various rollouts begin to build on one another and as more MSOs worldwide start their own network upgrades, we see our full year enter revenue momentum continuing in fiscal 2025, particularly in the second half. Turning to our Content Delivery and Storage segment, we anticipate further expansion of demand for our IPTV solutions from existing and new customers in the year ahead. The rollout of our new dynamic ad insertion and OpenCaching products with more customers should also contribute to strong performance from our CES segment.

Speaker 1

Over the longer term, we continue to see even higher growth potential as the many facets of IPTV we empower gain further momentum and as our newer products become bigger contributors to our results and growth. Finally, we're anticipating sustained profitable growth in our Telematics segment as demand for our asset tracking services grow and as we continue to build on our free tracking subscriptions. Overall, on a consolidated basis, we're anticipating another strong year of growing annual revenues in fiscal 2025. Based on our product rollout roadmap, I want to note that we're anticipating gross margin near to in the lower end of our target range of 45% to 49% for the year. That reflects our expectation of a significant volume of EN9000 platform node sales in our product mix over the coming quarters.

Speaker 1

Stand alone cable access nodes like the EN9000 typically carry a lower margin profile, with margins from the overall platform becoming more accretive over time as our higher margin software driven access modules are populated within that platform. In the first half of fiscal 'twenty five, we expect a higher proportion in the product mix from EN9000 as a lead customer matches them with the ERM3 Remote PHY modules we've been shipping through fiscal 2024. Overall, we're highly confident in the ongoing expansion of the business in fiscal 2025. As the industry accelerates its move to DAA and IPTV, we have multiple new growth engines in place to help us leverage many opportunities to drive our momentum. Our market position remains very strong with exceptional products, broad and growing customer relationships and our investment in continuous technology innovation secures our place at the forefront of our industry.

Speaker 1

We're genuinely excited about the opportunities we see ahead across our operations, and we look forward to continuing to reward investors' confidence in us in fiscal 2025. That concludes our formal comments for today. We'd now be happy to take questions. Operator?

Operator

We will now begin the question and answer session for analysts and institutional investors. Our first question is from Stephen Lee with Raymond James. Please go ahead.

Speaker 3

Thank you, guys. Sumit, on your VCMTS, I've got a couple of questions. Can you give us an update on how your trials with the Tier 1 is going? When does it move to field? And when is your first taste of revenues?

Speaker 3

Thanks.

Speaker 1

Good morning, Steven. Yes, thank you. So as I mentioned in our prepared remarks, we're making solid progress in our BCMTS lab trials with that lead Tier 1 customer. And that's been happening really for some time and carrying on through calendar 'twenty four. I don't want to get perfectly specific on when we're transiting the field trial with that customer, but suffice it to say every Tier 1 operator has a program that involves lab trials, friendly field trials and then market field trials.

Speaker 1

And we anticipate we're in good stead to follow that cadence with that Tier 1 operator through fiscal 2025. And as far as revenue contribution, I think that we have our sights set on potentially having contribution in fiscal 2025. But it's a very big picture move for us in terms of addressing that TAM and the VCMTS segment of the market. I've said before that our IP is our software that we instantiated in the beginning in the MacPhi node and very, very migratable to a virtualized architecture. And that's all coming to bear at that engagement we have with that Tier 1 operator, who has been a core customer of ours on the Remote PHY nodes in the past as well.

Speaker 3

Got it. And then, Sumeet, secondly, so aside from that Tier 1 customer, how many of the operators you have trialing your VC MTS? Can you talk a little bit about that?

Speaker 1

Yes. It's a little bit early for me to put out some specific metrics on that. But again, suffice it to say, the broadening growth in those engagements with other customers for the ECMTS, Bessemer being a market leader in DAA, as we've it's clear that the market is looking for the solution from us. We're building it, moving it forward with the Tier 1. That's the playbook we tend to follow because we understand that a lead Tier 1's definition of the requirements are very strong as it relates to the rest of the market.

Speaker 1

So we do have a broadening base of engagements and we'll provide updates as we can.

Speaker 3

Got it. Thank you. Thanks,

Operator

Stephen. The next question comes from Jeff Pytlak from Cormark Securities. Please go ahead.

Speaker 4

Hey, good afternoon. Just with respect to the bead program, could you maybe share what you're hearing from some of your customers with respect to the timing on when some of the funding for these projects could be released?

Speaker 1

Hey, good morning or good afternoon, Jesse. Thanks. Yes, no, I mentioned the bead program we see is working its way forward in the process. As we understand it, multiple of the states have been received their grants from the federal government in the U. S.

Speaker 1

And they're progressing towards defining their projects and selecting the sub grantees, which in this case are the broadband service providers and our customers. So that's all working through now. As you can see, we've staged our manufacturing, got compliant with the U. S. Build requirements.

Speaker 1

We announced that a couple of weeks ago. So we're well prepared with our fiber portfolio for when those official programs transition to awards. I think our customers are working that forward. And I think you'll hear from the market in general, the industry in general that we're expecting 'twenty five calendar 'twenty five to be the year that Mead starts to roll out. It's important to also note that that's superimposed and in parallel with the RDOF program, that $20,000,000,000 rural broadband program that's been running for about 2, 3 years now.

Speaker 1

So both of these are going to happen in parallel. So there's many, many millions of new fiber to the home passings that are going to be occurring in the U. S. Over the next several years. So it's a long time constant.

Speaker 1

It's a lot of money, a lot of planning to be done there. So we're seeing good signs that calendar 2025 is going to be a great year for Beam.

Speaker 4

Okay. That's helpful. And I guess in terms of how you're thinking about 2025 revenue momentum for the DAA product family, is this partially contingent upon that BEAT money opening up? And I guess my question is more so if BEAT gets kind of pushed out again just because that seems to be kind of what happened in 2024, would that change how you're thinking how fiscal 2025 shapes up for you?

Speaker 1

As we always do, our planning obviously looks at multiple layers. I mentioned multiple growth engines for us in fiscal 'twenty five. We, of course, have attributed some of the pipeline to be in the next fiscal year in the second half. But that's not to say that if things delay that other things won't pick up that component. So obviously, we build a pipeline that is in excess of our plan for the fiscal year and BD is a component.

Speaker 1

RDOF is a component in and of itself. Obviously, the cable access network upgrades that are happening to allow operators to get to 10 gig services with cable passings, which are tremendously more cost effective than fiber in areas where they're not funded. That's a big part of our plan for fiscal 'twenty five as well. And there's some international fiber to the home deployments as well. So I think that we're accounting for bead, but we're not necessarily dependent on it.

Speaker 4

Got it. That's helpful. Maybe switching topics a little bit. In the past, you've spoken to targeting 25% market share in the cable and fiber access categories that you're in. Thinking about some of the competitive disruptions that's happened in the industry, has this changed your thinking at all on your kind of targeting 25%?

Speaker 4

And any idea where you might be market share wise today?

Speaker 1

Yes. So I think with the consolidation that happened, we mentioned the CASAC play out and that occurred and there's one less vendor in the space to an extent. So you can generally think there's 3 vendors that are buying for all the market share. We maintain the view that the 25% is a solid target for us, accounting for all the cable and fiber access. And in fact, I've said before that we've had this worldwide leading market share in the fiber of the home remote LTs for several years in a row.

Speaker 1

Same thing for remote MAC PHY and cable access. And I've also communicated that as our customers wind up not wind up, ramp up their programs in the sequence of the overall industry, our share in Remote PHY would continue to increase and we have seen that in the last 6 months. Our market share is leading in terms of Remote PHY for the 1st 6 months of calendar 2024 that have been reported so far by the market research. So overall, everything carries on the same way, one less competitor in the space and provides, if anything, a tailwind for that, that our view is on our overall market share target.

Speaker 4

All right. I appreciate that. And then maybe one final question, just on the IPTV side. What do you think it's going to take for Open Cash and to restart gaining some momentum? The benefits seem fairly clear, but it doesn't seem like operators and streamers are really prioritizing investment in this area at this point.

Speaker 4

What's it going to take to change that?

Speaker 1

Yes, I think the streamers have had some challenges. I think at a consumer level, we hear a lot about that in terms of their they had a lot of momentum on getting eyeballs onto their platforms, but the costs have become a factor for them. So it's taking that I think it's just that sequence of time where their focus was on growth, heavily focused on growth for the last several years and they were getting that growth. But they are changing their focus to the cost side of the equation now because their ARPUs are and how much they have to bill out are going up. You've seen some advertising come into the picture as well.

Speaker 1

So cost is becoming important for them. What's very important and has always been important for them is the quality of experience. When you use open caching, you put these edge caches much deeper into the ISP network than one layer up at the peering point. That dramatically improves the quality of experience for subscribers, which is important for their market share. So I think what we're seeing is that it's a very clear value proposition to both the broadband service provider, our customers and the streamers overall, both on the quality and the reduction of the cost to move that traffic for both for the streamer and monetizing that traffic for the first time for the operator.

Speaker 1

So we view it as a when not if scenario and we anticipate that this is going to gain momentum for us and going forward and it will we're in business development, it will continue to take time.

Speaker 4

All right. Thank you for the insightful. I'll pass the line.

Speaker 1

Thanks, Jesse.

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Key Takeaways

  • Record fiscal 2024 performance: Bessemer Networks delivered full-year sales of $291 million, Q4 revenue of $87.5 million (up 16% YoY) and adjusted EBITDA of $53.8 million, with adjusted EPS of $0.89.
  • New product roll-outs driving growth: The ERM3 Remote PHY modules, EN9000 Generic Access Platform, EXS 1610 All-PON Shelf and Entra VCMTS trials fueled back-to-back record Q3/Q4 revenues and set up momentum for fiscal 2025.
  • US BEAD program access secured: Bessemer began U.S. manufacturing of fiber-to-the-home optics to meet Buy America requirements, positioning the company to pursue opportunities in the $42.5 billion broadband equity fund.
  • CFO transition announced: Dale Boot retired after 13 years, and Jud Schmidt—nine-year company veteran and former VP Finance—has been promoted to Chief Financial Officer.
  • Diversified segment strength: Video & Broadband Solutions accounted for 73% of sales (31% YoY growth), Content Delivery & Storage improved gross margin to 56.7% with dynamic ad insertion launches, and Telematics grew revenues 22% while tracking over 68,000 assets.
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Earnings Conference Call
Vecima Networks Q4 2024
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