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SEC filingRevenue and gross margin improved on higher-margin service mix, but operating losses widened sharply due to elevated SG&A and R&D investments.
Diluted earnings per share was $0.65, compared to a loss of $0.16 in the prior year quarter. The swing was primarily due to a deemed contribution from the exchange of preferred stock, which reduced the net loss attributable to common shareholders. Excluding this non-recurring item, the company would have reported a net loss per share.
Management highlighted the pending acquisition of Nokia's FWA business as a key strategic catalyst, but also noted risks including integration challenges, potential regulatory hurdles, and the need to achieve a revenue level and mix adequate to support its cost structure. The company's ability to sustain positive cash flows depends on continued revenue growth and cost discipline. The FCC's updated "Covered List" regarding consumer-grade routers poses a regulatory risk, though management believes its enterprise-grade products are not affected. Investors should watch for updates on the Nokia acquisition and any further OpEx escalation.