SideChannel Inc (OTCPK:SDCH)

Q2 2025 SideChannel Inc Earnings Call Transcript

May 7, 2025 / 08:30 PM GMT

Release Date Price: $2.47 (-1.04%)

Transcript 10-Q8-K

Key Points

Positve

SideChannel Inc (SDCH) reported a significant improvement in gross margin, rising to 49.7%, up nearly 5 percentage points from the same quarter last year.
The company successfully reduced operating expenses by 11.2%, narrowing the net loss to $54,000 compared to $253,000 in the previous year.
Year-to-date revenue increased by 3.8% over the first half of FY 2024, demonstrating resilience and execution across core offerings.
SideChannel Inc (SDCH) improved its cash position, ending the quarter with $1.3 million in cash equivalents and short-term investments.
The company is focused on accelerating the adoption of Enclave, its zero-trust network solution, which is gaining attention from both public and private sector organizations.

Negative

SideChannel Inc (SDCH) experienced a modest 1.7% decrease in year-over-year revenue.
The company faced challenges in its VCO services segment, with the loss of several larger contracts impacting revenue retention.
There are headwinds in the Enclave market, including competition from larger companies like Alumio and Checkpoint.
The company is still in the process of rallying and educating its sales team to effectively market and sell the Enclave product.
Restrictive warrants are limiting SideChannel Inc (SDCH)'s ability to raise capital, which could impact future growth initiatives.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SDCH.PK - SideChannel Inc
Q2 2025 SideChannel Inc Earnings Call
May 07, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Side Channel fiscal year 2025, 2nd quarter financial results update call.

At this time, all participants are on a listen-only mode, and a question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press 0 on your telephone keypad.

Please note this conference is being recorded.

I will now turn the conference over to your host, Mr. Brian Holley. Sir, the floor is yours.

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Unidentified_2 [2]
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Thank you. Good afternoon,

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