Actelis Networks, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to Actelis Network's Annual 2024 Results Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will open the call for your questions. If you'd like to ask a question, please look for the Ask a Question link on the right-hand side of your webcast screen, or if you join by phone, please press star 1 when prompted. As a reminder, the transcript of this conference call will be available within 24 to 48 hours on ir.actelis.com. Joining us today from Actelis are Tuvia Barlev, Chairman and CEO, and Yoav Efron, Deputy CEO and CFO. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, including but not limited to statements of expectations, future events, or future financial performance. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factors section of 10-K and subsequent filings with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in our earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, March 24, 2025. With that, I am pleased to introduce Actelis Network's Chairman and CEO, Suvia Barlev, who will provide an overview of our business results and strategic initiatives. Following Tuvia's commentary, we will review our financial results in greater detail. And finally, we'll open the call for your questions. Tuvia, please go ahead.

Thank you, operator, and thank you all for joining us today. 2024 was a transformative year for our TELUS networks. We delivered excellent financial improvements with 38% revenue growth, 125% gross margin improvement, and 67% reduction in our loss per share. These results validate our strategic direction and our team's execution abilities. Our value proposition continues to resonate strongly with the market. We help customers modernize and secure their networks with existing infrastructure, whether fiber, copper, or coax, and deliver same-day implementation of fiber-grade quality without expensive upgrades. This approach provides immediate value, particularly in time-sensitive, budget-constrained, and security-critical environments. Let me highlight our progress across our three key markets. New orders more than doubled compared to prior year. Specifically, in the federal and military sector, we achieved 150% year-over-year growth in new orders. Following our JITX cyber certification and inclusion in the Department of Defense approved product list, we're seeing increasing adoption across military bases and federal agencies. With billions in planned infrastructure updates across defense installations, we're well positioned for continued growth. We also tripled software and services new orders thanks to continued support and trust of multiple customers, and particularly a large North American telecom customer. This demonstrates our consistency in delivering quality products, software, and services to our customers. Our Gigaline 900 solution family for multi-dwelling units is gaining significant market traction with dozens of trials and initial installations underway in North America and globally. Its unique combination of instant deployments Gigabit performance over existing building wiring and ultra-low power consumption offers a compelling solution for the last 100 meters challenge in MDU environments and for the owners of fiber infrastructure in the streets or building basements to finally offer services to users and get paid. In the smart city and transportation space, we secured measured deployments in cities like Washington, D.C., Seattle, and various European municipalities. These implementations showcase our technology value in enhancing urban mobility, public safety, and operational efficiency. We're strategically positioned for upcoming major infrastructure projects, such as Highway England NRTS-3, representing substantial future opportunities. In 2024, we strengthened our hybrid fiber solution portfolio substantially with introduction of our GigaLine 5000, 6000, and soon 7000 fiber product lines. Our fiber products are fiber and environmentally hardened, highly competitive, and integrating seamlessly with our copper and coax solutions, with our cyber-aware networking offering, and with our AI-based Metashield SaaS offering. Our Metashield solution and AI-driven SaaS cyber protection of the edge for all IoT field installations and devices was introduced at the tail end of 2024 as part of our cyber-aware networking strategy. MetaShield introduces a unique approach where cybersecurity comes with the network, is built as the network is being built, and is utilizing the network to fix cybersecurity issues. This network and cyber protection integration provides the network operators an effective, easy-to-install tool that protects vulnerable physical IoT devices at the network edge, addressing a critical gap in the cybersecurity landscape. For 2025, we're prioritizing three strategic initiatives. First, introduction of MetaShield into our install base with cities, roads, rail, utilities, and airports globally. We expect this SaaS offering to generate recurring revenue through MetaShield subscriptions and integrated network management software to create more predictable revenue patterns and enhance margins. Second, strengthening our go-to-market execution through increased industry presence at key events and development of strategic partnerships with technology companies, system integrators, and value-add resellers and consultants. In the federal business, we're working with industry veterans from the military. As we alluded to, our military customers look for rapid project completion to which we can provide a unique solution through our hybrid fiber approach. We won Navy business in Maryland last year, as well as Barracks connectivity with the Army using our state-of-the-art Gigaline 800 solution and have a multitude of new opportunities in the funnel. In IOP and smart cities, we won the District of Columbia large implementation of over $2.2 million. We won Seattle, Ventura County, White Plains, New York, and many more. These are and will continue to be executed with our trusted business partners. In the multi-dwelling unit, or MDU business, we're engaged with tens of network operators, ISPs, WISPs, and integration partners. Trials and initial deployments are underway, and we expect those to turn into growth in 2025. Third, focusing on operational efficiency while supporting growth, including evaluating selective desk facilities to fund initiatives while reducing equity dilution. The good news is that we're nearly debt-free while we managed to reduce our operating expenses year-over-year by 13%. This allows us to look for ways to increase our debt moderately in a non-dilutive way. We've also enhanced our board with the addition of two industry veterans, Julie Kunstler and Dr. Neil Ransom, whose extensive experience in networking, edge computing, and broadband technology brings invaluable experience to guide our continued growth.

With that overview, I'll turn the call back to Yoav for our financial results. Thank you, Tuvia.