Vistance Networks, Inc.

Good day and thank you for standing by. Welcome to the VISTNS Network's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jenny Thompson, VP of Investor Relations. Please go ahead.

Good morning, and thank you for joining us today to discuss Vistance Network's 2026 first quarter results. I'm Jenny Thompson, Vice President of Investor Relations for Vistance Network, and with me on today's call are Chuck Treadway, President and CEO, and Kyle Lorenzen, Executive Vice President and CFO. You can find the slides that accompany this report on our investor relations website. Please note that some of our comments today will contain forward-looking statements based on the current view of our business and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risk and uncertainties that could affect future performance. Before I turn the call over to Chuck, I have a few housekeeping items to review. Today we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of our non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website. All references during today's discussion will be to our adjusted results. All quarterly growth rates described during today's presentation are on a year-over-year basis unless otherwise noted. I'll now turn the call over to President and CEO Chuck Treadway.

Thank you, Jenny. Good morning, everyone. I'll begin on slide three. This morning, we announced that we have entered into a definitive agreement to sell our Ruckus Networks business to Belden for $1.846 billion in an all-cash transaction. The deal is subject to customary closing conditions, including receipt of applicable regulatory approvals. We currently expect the deal to close in the second half of 2026. After detailed evaluation of our remaining businesses after the CCS transaction, it became clear that the remaining two businesses needed to be separated. Our equity value continued to be impacted by the different business models and valuation profiles. The attractiveness of the Ruckus business allowed us to achieve the separation in a transaction that we believe further unlocks shareholder equity value. Belden is a favorable buyer of the business for our customers and employees, as they will continue to support the investment required to further grow Ruckus innovative products and services. We expect to distribute a significant portion of the excess cash from this transaction to our shareholders as a special distribution within 60 days following the closing of the proposed transaction. The exact amount and timing of the dividend will be determined by the Board after closing, taking into account all relevant factors. The transaction will leave only our Aurora business in the portfolio. We expect to continue to run Aurora as a public company. As a player of scale in the DOCSIS market, we will evaluate growth opportunities, including potential acquisitions to broaden our technology portfolio and customer relationships. We are excited about the opportunity to dedicate our focus to the Aurora business. As we move through the year, we will provide updates on the pending transaction and positioning of business networks as appropriate. Now onto first quarter results on slide four. I'm pleased to announce that in the first quarter, Business Networks delivered net sales of $472 million, a year-over-year increase of 22%, and Core Adjusted EBITDA of $87 million, a year-over-year increase of 38%. For clarification, Business Networks results include our two remaining businesses, Aurora and Ruckus. The positive results were generated by stronger than expected performance in both segments. We were on track to achieve our 2026 adjusted EBITDA guideposts of $350 million to $400 million. With that, now I'd like to give you an update on each of our businesses. Starting with Aurora Networks, net sales of $298 million were up 33% in the first quarter compared to the prior year, and adjusted EBITDA was up 32%. These increases were primarily driven by the continued deployment of our DOCSIS 4.0 amplifier and node products. Our FDX amplifier deployment with Comcast continues to go well, and this is reflected in our results. Since the beginning of 2025, we have shipped more than 500,000 FDX amplifiers. We continue to make headway with our suite of next-generation ESD DOCSIS 4.0 amplifiers and are now shipping to multiple large North American MSOs. We expect shipments to ramp up over the next couple of quarters, and these products will continue to ship over multiple years. We're also making progress on the unified products. We expect to start production on unified nodes in the second quarter and expect to start shipping in the second half of 2026. The unified node allows our customers to choose between either the 1.8 gigahertz ESD or FDX technology within a single device. The unified amplifiers have started lab testing, and we expect to start shipping at the beginning of 2027. During the quarter, we began the rollout of our VC-CAP solution with Vodafone Germany. This is quite significant, as we will be the go-forward solution, displacing one of our competitors. The network upgrade includes Aurora Network's cloud-native VC-CAP EVO, providing significant enhancements to the operator service offerings, paving the way to DOCSIS 4.0. This deployment demonstrates the flexibility of our standards-based solution to best meet the unique requirements of multiple operator environments. We have now successfully deployed our VC-CAP solution with two of the largest EMA service providers. In the quarter, we continued development on our next generation pond products. We are partnering with the Tier 1 CALA customer on their ongoing access and core network evolution through the deployment of our BB&G EVO and PON EVO Series 200 remote OLTs as they upgrade their broadband infrastructure roadmap. They are migrating to a fiber-to-the-home access architecture based on GPON and XGS PON technologies with the Aurora PON EVO Series 200 remote OLT. which has been deployed in some of the largest CALA regions, offering both residential and business broadband services. The PON EVO series 200 remote OLT is being deployed in an outside plant node as a standalone OLT, supporting up to eight GPON ports per node. And it's designed to support up to 128 subscribers per port. The broadband service edge is being upgraded using the VBNG EVO that allows for both the control and user plane separation architecture, which enhances scalability, operation resilience, and traffic management. As stated before, we believe Aurora Networks is well-positioned with decades of knowledge of our customers' ecosystems and a broad array of new products for service providers to take advantage of the latest DOCSIS 4.0 upgrade cycle, as well as expanding their current DOCSIS 3.1 networks. The new products position Aurora Networks to maintain performance as the market shifts away from our legacy products. With the announcement of the Ruckus transaction, we're excited to focus our attention on maximizing the value of Aurora, including exploring acquisitions, mergers and investment in new technology that will take us well beyond the DOCSIS 4.0 upgrade cycle. Now, moving on to Ruckus Network performance. Core Ruckus Network's revenue was up 14% in the first quarter compared to prior year. Core Ruckus Adjusted EBITDA of $37 million was up 54% versus prior year. We are pleased with both our revenue and Core Adjusted EBITDA growth in the quarter. First quarter 2026 Adjusted EBITDA as a percentage of revenue was 21.3%, which was an approximate 600 basis point improvement over prior year. This is a testament to the team's focus on profitability while growing the top line. We had many strong customer wins in the first quarter, including a collaboration with the Los Angeles Football Club for the deployment of a next generation Wi-Fi 7 network at BMO Stadium. The early industry installation for Major League Soccer establishes a new benchmark for high density wireless connectivity in sports venues designed to elevate every facet of the fan journey. The deployment leverages a strategic mix of Ruckus Wi-Fi 7 access points, including the high-performance T670 for under-seat coverage and the T670SN with hyper-directional antenna technology for precise, high-density targeting in concourses and club spaces. This architecture provides blanket, high-speed coverage capable of supporting tens of thousands of concurrent connections. In addition to customer wins, subscription product ruckus one continues to be a key priority as we move toward a subscription license and support model in the quarter we won our largest ever ruckus one deal with the tier one north american service provider we experienced strong growth in ruckus one and our service offerings driving revenue growth of 12 versus first quarter of 2025. During the quarter, we announced the expansion of our Pro AV ICX network switch portfolio and introduced an AV enhanced update to its management platforms. These advancements support the global market shift away from legacy video transport solutions towards Ethernet-based systems. Before handing the call over to Kyle, I would like to provide an update on the DDR4 memory chip supply issue that continues to impact most companies in our industry. As you can see from our results, we were able to manage the tight supply and higher pricing on memory chips in the first quarter in both businesses. Our supplier relationships, inventory position, product redesign, and pricing were key in our ability to manage the issue in the first quarter. As we move into the second quarter, we are continuing to use these levers. We have good visibility into the second quarter, and any impact is included in our second quarter expectations. As we look beyond the second quarter, visibility is limited, both from a supply and pricing perspective. We will continue to use our levers to navigate the challenging memory chip market conditions. And with that, I'd like to turn things over to Kyle to talk more about our first quarter results.