0001193125-26-191810
SEC filingRevenue was essentially flat at $74.2M, while net loss widened to -$25.3M due to an induced conversion expense and higher operating costs.
Gross profit decreased to $36.5 million from $36.7 million, resulting in a gross margin of 49.1% compared to 49.4% in the prior year. The decline was primarily due to higher indirect costs in the period, partially offset by higher endpoint IC gross margin from a favorable product mix. The company's gross margin remains sensitive to product mix and cost structure.
Operating loss widened to -$15.2 million from -$9.6 million, reflecting a 58.5% increase in operating losses. The increase was driven by higher research and development expenses as the company continues to invest in new product development, as well as higher sales and marketing costs. Management expects R&D expense to increase in absolute dollars in future periods.
Management did not provide quantitative guidance but noted expectations for continued R&D investment and ongoing variability in systems revenue due to project-based deployments. Key risks include wafer supply constraints (which have caused order cancellations and customer losses in the past), tariff and trade policy uncertainty (particularly U.S. tariffs on Chinese-origin goods), and the concentrated customer base (three customers accounted for 61% of 2025 revenue). The company also faces potential headwinds from the evolving regulatory landscape around spectrum allocation and privacy.