May I have your assessment of the Q3. Thank you.
EPS of ($0.014) missed estimates of ($0.012) and sales of $18.25M missed estimates of $18.44M. Sales grew 22.5% year-over-year, mostly driven by its connected devices segment, which rose 30%, while its software and services revenue grew 10%. Its gross margins of 55% were strong, but they were negatively impacted by tariffs on its connected devices segment. Its Adjusted EBITDA was $1.2M, an improvement from $0.6M for the same period in the prior year.
It won 4 new utility customer wins in the quarter, and rolled out new products. Its operating cash flow was negative $1.3M, which management noted was typical for Q3 due to lower deferred revenues. We think these were decent results, although not a blowout quarter. We feel that it is still moving in the right direction overall, and we like its continued momentum towards profitabiltiy and still good sales growth.