• Q1-FY2025 (ended September 2024) revenue declined 14% YoY, coming in 22% below our estimate. Management attributed this decline to a timing mismatch in sales orders from large customers. Note that Q1-FY2024 revenue was unusually high due to the same issue, with more orders coming in that quarter, leading to a steep drop in the following quarter. We anticipate a spike in Q2-FY2025 revenue as the orders missed in Q1 materialize.
  • Historically, quarterly revenue has been volatile (as shown on page 3). In some previous Q1s, revenue declined YoY, but full-year results still showed growth. Management is confident they will be able to report YoY revenue growth this year. The company has achieved YoY revenue growth in each of the past four years: 2% in both FY2021 and FY2022, 20% in FY2023, and 26% in FY2024.