Vistance Networks (NASDAQ:VISN) reported first-quarter financial results on Thursday. The transcript from the company's first-quarter earnings call has been provided below.
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Summary
Vistance Networks announced a definitive agreement to sell its Ruckus Networks business to Belden for $1.846 billion in cash, expected to close in the second half of 2026.
First quarter net sales were $472 million, a 22% increase year-over-year, and adjusted EBITDA was $87 million, up 38% year-over-year.
The company plans to focus on its Aurora business post-transaction, exploring growth opportunities and potential acquisitions.
Aurora Networks' net sales were $298 million, up 33% driven by DOCSIS 4.0 products, with significant deployments for Comcast and Vodafone Germany.
Ruckus Networks saw a 14% increase in revenue and a 54% rise in adjusted EBITDA, with notable wins including a WiFi 7 network deployment for the Los Angeles Football Club.
Management expects Aurora's adjusted EBITDA to be down in 2026 compared to 2025 due to legacy product declines and memory chip cost headwinds.
Vistance Networks ended the quarter with $2.5 billion in cash, having completed the divestiture of the CCS segment to Amphenol.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Distance 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.
Jenny Thompson (VP of Investor Relations)
Good morning and thank you for joining us today to discuss Vistance Networks' 2026 first quarter results. I'm Ginny Thompson, Vice President of Investor Relations for Vistance Networks 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 risks 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.
Chuck Treadway (President and CEO)
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 (Data Over Cable Service Interface Specification) 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 Vistance Networks as appropriate. Now onto first quarter results on slide 4. I'm pleased to announce that in the first quarter Vistance Networks delivered net sales of $472 million a year over year increase of 22% and core adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $87 million a year over year increase of 38%. For clarification, Vistance Networks' results include our two remaining businesses, Aurora and Ruckus. The positive results were generated by stronger than expected performance in both segments. We are on track to achieve our 2026 adjusted EBITDA guidance 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 (Full Duplex) 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 (Extended Spectrum DOCSIS) 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 are 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 GHz ESD or FDX (Full Duplex) 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-to 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 PON products. We are partnering with a Tier 1 CALA customer on their ongoing access and core network evolution through the deployment of our BBNG 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 (Gigabit Passive Optical Networks) 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 8 GPON ports per node and is designed to Support up to 128 subscribers per port. The broadband service edge is being upgraded using the VBNG (Virtual Broadband Network Gateway) EVO that allows for both a control and user plane separation architecture which enhances scalability, operational 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 Networks 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 undersea coverage and the T670 SN 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. The 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 a 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
Kyle Lorenzen (Executive Vice President and CFO)
conditions and with that I'd like to turn things over to Kyle to talk more about our first quarter results. Thank you Chuck and good morning everyone. I'll start with an Overview of our first quarter results on Slide 5 for Vistance Networks continuing operations. Net sales ended at $472 million, up $84 million or 22%. Year over year increase in revenue drove continuing operations. Adjusted EBITDA up $40 million or 85% to $87 million. Adjusted EPS for the first quarter was up 209% to $0.34 per share, versus $0.11 per share in the first quarter of 2025. Vistance Networks' core adjusted EBITDA for the first quarter was $87 million, up 38% versus prior year as a result of the increase in revenue. First quarter adjusted EBITDA as a percentage of revenue of 18.5% was 230 basis points better than prior year. Same quarter driven by stronger leverage in Ruckus partially offset by lower margin product mix in Aurora, and stranded costs, the first quarter ended stronger than we had expected in both businesses. Order rates were up 37% sequentially in the first quarter of 2026 and up 49% versus prior year. Distance Network's backlog ended the quarter at $843 million, up $211 million or 33% versus the end of the fourth quarter 2025 Turning now to our first quarter segment highlights on Slide 6, please refer to Slide 5 to view both the Ruckus Networks and core Ruckus Network results starting with our aurora Network segment. First quarter net sales of $298 million increased 33% from the prior year as shipments of our DOCSIS 4.0 (Data Over Cable Service Interface Specification) products increased. Aurora Network's adjusted EBITDA of $50 million was up $12 million or 32% from the prior year driven by higher amplifier revenue. EBITDA as a percentage of sales was essentially flat with last year at 16.9% as lower margins driven by product mix was offset by operating cost management sequentially in the second quarter of 2026, we expect revenue and adjusted EBITDA to be in line with the first quarter. However, we would expect year over year 2026 second quarter adjusted EBITDA to be down due to strong legacy license revenue in the second quarter of 2025. We expect the second half Aurora adjusted EBITDA to be stronger than the first half. As we have discussed in the past, Aurora Networks is a project driven business with timing of projects driving some volatility in quarterly results both from a revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) perspective, the business remains well positioned to take advantage of upgrade cycles while offsetting declines in the legacy business, with the expected decline. With the expected decline in legacy products and the impact of stranded costs partially offset by improving DOCSIS 4.0 revenue, we continue to expect Aurora adjusted EBITDA to be down in 2026 versus 2025. Core ruckus net sales of $173 million increased by 14% versus the first quarter of 2025 driven by market demand as well as our go to market and vertical initiatives. Core Ruckus adjusted EBITDA of $37 million increased 54% from the prior year as a result of higher revenue, improved margins driven by our new switch portfolio and leverage of our fixed costs. We continue to see strong market conditions driven by the Wi-Fi 7 upgrade cycle. In addition to better market conditions, our investment in sales has positioned us to grow faster than the market. Core rockets bookings were up 33% from fourth quarter 2025. We continue to drive our vertical market strategies and new product initiatives and are well positioned to grow faster than market as we move through 2026. Moving forward, the Ruckus business will be presented as held-for-sale. Finally, early in the quarter we completed the divestiture of the CCS (Connected Solutions) segment to Amphenol. Note that the activity of the segment was reported as discontinued operations for the quarter. Turning to slide 7 for an update on cash flow. As expected in the quarter, cash flow from operations was a use of $227 million and free cash flow was a use of $229 million due to working capital needs and timing of our annual cash incentive payout. As we look at cash for 2026, we expect to end the second quarter of 2026 with approximately $125 million of cash on hand. Our projection for year end cash on hand excluding proceeds from the ruckus transaction is 150 to 200 million dollars. As Chuck mentioned earlier, we are excited about the Ruckus transaction as it unlocks further shareholder value and provides an opportunity to return additional cash to shareholders. The net cash impact of the transaction after fees and taxes is expected to be approximately $1.7 billion. Turning to Slide 8 for an update on our liquidity and capital structure. During the first quarter, our cash and liquidity remained strong. We ended the quarter with $2.5 billion in cash on hand. During the quarter, our cash balance increased approximately $1.6 billion as we closed the CCS (Connected Solutions) divestiture at the beginning of January and repaid all of our existing debt and redeemed the preferred equity. In the quarter, we did not purchase any equity on the open market. However, we will continue to evaluate opportunities to buy back stock and the Board of Directors recently approved the buyback of up to $100 million. The company ended the quarter with no outstanding debt. In early April, the company entered into a new revolving credit agreement with Citibank in an aggregate amount up to $300 million, subject to borrowing base availability. Based on forecasted inputs, we expect the borrowing base to be approximately $175 million at the end of the second quarter. The revolving credit facility is scheduled to mature in 2031. Subsequent after the end of the first quarter, the board approved a special distribution of $10 per share. The distribution was paid on April 27 and is expected to be treated as a return of capital for tax purposes. Although we considered putting modest leverage on the company ahead of the distribution, we decided not to proceed due to challenging debt market conditions, and the desire for financial flexibility. This position allows us to evaluate investments in Aurora, including bolt on accretive acquisitions. I will conclude my prepared remarks with commentary around our expectations. For the remainder of 2026, we will continue to focus on completing the sale of Ruckus and implementing the Aurora strategy. We expect Vistance's second quarter adjusted EBITDA to be essentially flat with the first quarter. Second quarter adjusted EBITDA will be down versus prior year due to favorable project timing in Aurora and some pull ahead revenue in response to tariffs in the second quarter of 2025. In the first quarter, we began taking action to reduce the 30 million of stranded costs that were associated with the CCS transaction. As mentioned previously, the stranded costs are included in our vistans network's adjusted EBITDA guideposts. With the pending sale of Ruckus, we are continuing to evaluate overall stranded cost similar to the CCS transaction. Final stranded costs on the Ruckus transaction will be minimal. However, it may take several quarters to reduce the G&A cost structure to the desired levels as we complete the separation of the Ruckus business, including managing transition service requirements. As we think about the standalone aurora business, our 2026 adjusted EBITDA guideposts are in the 225 to $250 million range, excluding stranded costs from the Ruckus transaction.
Chuck Treadway (President and CEO)
We look forward to continuing to develop and implement the Aurora strategy focused on taking advantage of the DOCSIS 4.0 upgrade cycle, managing our legacy business and investing in future technologies. And with that, I'd like to give the floor back to Chuck for some closing remarks. Thank you, Kyle. In closing, we are very excited about the Ruckus transaction as it unlocks equity value and returns cash to our shareholders. I want to thank the Ruckus Team for all they have done to make this deal possible and position the business for continued success. The transaction now allows us to focus on Aurora and take advantage of the current DOCSIS 4.0 upgrade cycle while positioning the business with new technology for future growth. And with that, we'll now open the line for questions
OPERATOR
as a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q and A roster. Our first question comes from Sameet Chatterjee with JPMorgan. Your line is open.
Sameet Chatterjee (Equity Analyst at JPMorgan)
Hi. Thanks for taking my questions. Maybe just a couple of questions. For the first one, I'm trying to think of the you're guiding Aurora Network's EBITDA to be down year over year. Trying to think of the bridge here, because you do have the memory cost related headwinds you do have, it seems like you're assuming for the rest of the year software doesn't repeat to be as much of a driver as last year. So maybe if you can help me bridge through the EBITDA decline, which at least in my numbers is more on sort of 15 million looks like in EBITDA. How to think about the moving pieces there. How much are you getting from growth in the business offset by these drivers in terms of memory and others? Thank you.
Kyle Lorenzen (Executive Vice President and CFO)
Yeah, so I think we look at the sort of the drag from last year. You look at the stranded cost for the Aurora business. They take about half of the 30 million that we're talking about. So that's 15 million. We've had a decline in the legacy business that we've talked about. And then we have the memory chip issue which in the latest forecast we have it at about 30 million of drag versus last year. That essentially gets offset partially by the growth that we have in the business on the, you know, on the DOCSIS 4.0 upgrade products. So if you take the growth minus the drag with memory chips, the stranded cost and the legacy business decline, that's how you're getting
Sameet Chatterjee (Equity Analyst at JPMorgan)
the year over year decline overall. Great, thank you. And for my follow up, I mean you did mention the opportunities then use the balance sheet for accretive acquisitions. How are you thinking about technology that would sort of bolster what you already have in the portfolio on the Aurora Network side? What would be sort of more of a target technology that you would look to acquire and how much capital reserves do you want to keep on the balance sheet for like what is the typical size and capital reserves you would need to then pursue those ambitions in terms of acquisitions?
Kyle Lorenzen (Executive Vice President and CFO)
Sure. Thanks. Look, we're not going to get into any specifics, but I would say that the docs is market is an industry that continues to be fragmented with many small suppliers. And we've talked to our larger customers and there's a desire for them to work with players of scale. And based on our size and strong balance sheet, we're well positioned to bring that stability. So I would say what we're looking at more for is bolt on accretive acquisitions that can provide us, as you say, product or customer expansion. And we're going to be working with our large customers to. To really kind of define that.
Sameet Chatterjee (Equity Analyst at JPMorgan)
Okay, great. Thank you. Thanks for taking my questions.
OPERATOR
Thank you. Our next question comes from Amit Daryanani with Evercore. Your line is open.
Amit Daryanani (Equity Analyst at Evercore)
Yep. Thanks a lot. Good morning, everyone. I have a couple as well. Maybe the first one, just to kind of get this sorted out, the Ruckus transaction, something you want to do the distribution within 60 days of flows. Could you just talk about what the tax treatment would be? Is it going to be like a return of capital the way the amphanol transaction was, or could this be different?
Kyle Lorenzen (Executive Vice President and CFO)
Yeah, at this point we'd expect it to be a return of capital.
Amit Daryanani (Equity Analyst at Evercore)
Got it. Perfect. And then, Chuck, where we look at Aurora as kind of the key asset in the company right now, could you maybe spend a little bit of time talking about what are the different assets within Aurora? I think you have like the DOCSIS 4.0 portfolio that's doing really well for you folks. I think amplifiers and PON does fairly well. But then you have this legacy assets that are sort of declining by higher margins. Just talk about what is the framework in terms of how to think about these different assets within the portfolio, how big they are, what does the EBITDA profile for each of them look like? It'd be good to just feel the levels of what's left in the asset. Right next.
Kyle Lorenzen (Executive Vice President and CFO)
Yeah, I mean, but maybe I can answer the question. Just as we think about the legacy business, you know, so clearly the legacy business has been in decline over the last few years. We talk about the decline that we've seen from 25 to 26 in our forecasting, you know, so a lot of that decline is behind us. And when you think about the Aurora business, you know, approximately 15% of our revenue and about 25% of our EBITDA is driven by that legacy previous DOCSIS version,. So as we sort of move off of 26 and Chuck can provide some detail on the different products, you should think about it. As we are getting strong growth in those DOCSIS 4.0 products, the new products, the amplifiers, the RPDs, the nodes, you know, and we expect to see continued decline in the legacy business. But on a relative basis, as we've gone through the decline over the last few years, it is a smaller part of our business now. And we're actually seeing fairly strong growth in the DOCSIS products, particularly on the amplifier side, both from an FDX perspective and an ESD perspective. I don't know if you have. Yeah. And related to technology. Right. On the legacy, think about the E6000 family and the amplifiers there. But as you say, you know, the DOCSIS 4.0 stuff. But besides that, I would say PON, specifically remote OLT technology is where we have a good position and we're going to be looking more at chassis PON, going forward. And then on the video side, we also have think about our video as
Amit Daryanani (Equity Analyst at Evercore)
software providing, you know, helping cable operators provide ad based revenue streams for them. Perfect. The last one. I'll step away after this. The backlog Normally Force gave 843 million. I apologize if I missed this, but is there a way to split that between Ruckus and Aurora just so we understand what the base looks like. And thank you very much. Yeah, I think. The backlog in aurora is about $400 million, if that's the question. Thank you.
OPERATOR
Thank you. Our next question comes from George Nodder with Wolff Research. Your line is open.
George Nodder (Equity Analyst at Wolff Research)
Hi guys. Thanks very much. I guess again, a few more questions on the Aurora business. I'm just curious about what customer concentration looks like there. Obviously there's a couple big customers, I presume, but I'm just curious what that would look like. And then also bigger picture, these customers are going through a really significant network upgrade. If you look at the pacing of those upgrades, you've got a couple years left. It feels like maybe a bit longer, maybe bit shorter. But how do you think about the business in the context of these upgrades? And then you know, presumably behind that there's a step down in those business lines. I'm just curious how you think about that. And you know, does this turn into a maintenance business? How big could that maintenance revenue stream be? Like, how do you see the long term?
OPERATOR
Thanks a lot.
Kyle Lorenzen (Executive Vice President and CFO)
Yeah, so I'll deal. Customer concentration, not unsimilar. Not unsimilar to the other, you know, players in the market. You know, customer concentration is relatively high. Our top three customers represent about 75% of our revenue. Yeah. Is it in the long term? Picture. Yeah, yeah. I'll take the second part. When you think about where we are, you say, you know, two years. It depends really on which customer you are. I mean, some customers are probably in that process where they have a couple years left, others may have three to five years left just getting that ramped up. But then you have, after that you have the whole pawn, the pawn story. You know, customers either going to go DOCSIS 4.0, they're going to do remote olt or they're going to do chassis pon going forward. And that's where we're investing in. Of course, video is really unrelated to those things. And then there's going to be a legacy business that continues. So when you think about the value going forward, I mean, there's going to be significant FDX amplifiers. We talked about you know, putting out, you know, 500,000 of them already.
George Nodder (Equity Analyst at Wolff Research)
There's, there's multiple years left, you know, let's say three to five years left of that. Okay, thank you.
OPERATOR
Thank you. As a reminder to ask a question, please press Star 11 on your telephone. Again, that is Star 11 to ask a question. Our next question comes from Tal Leoni with Bank of America. Your line is open.
Kevinita Pruum
Hey guys, good morning. This is Kevinita Pruum on for Tal Leoni with Bank of America. My first question is revolving around these nodes that you guys announced that you plan to ship in the second half of 2026. Can you help us think about the size of this opportunity and maybe explain for us how you see these nodes coinciding with the purchasing plans of your customers that have already done their strong upgrades with these amplifiers? Is there a relationship and kind of a way to think about it, how these amplifierss that have seen strong growth coincide with the growth of these nodes that are now coming online?
Kyle Lorenzen (Executive Vice President and CFO)
Yeah, I'd start by saying the new product you're talking about is unified RPD nodes and RPDs and nodes. And that allows the customer to choose either an ESD option or FDX (Full Duplex) option. So when you think about Comcast, they're an FDX path. Other players have chosen esd, but as they go forward, as they move forward, they see the value of both and they want to have that optionality. So it would really be a customer that might have already started esd. They may decide to replace that with a unified product that allows them to have both options. If you're already with FDX and you're choosing that, you might not go that route. When you think about amplifiers in a relationship to the number of nodes. I mean, think about, you know, six to eight amplifiers per node is kind
Kevinita Pruum
of how to think about that. It could range from 4 to 8, you know, depends on how you design your network. Got it. Makes sense. And then my second question for you guys is, you know, last quarter you talked about how you have visibility into memory supply and you're almost kind of re engineering or reworking these products to help mitigate the impact of memory costs. Can you talk about where you stand today? How does your line of sight look to inventory now and how is that reengineering or reworking progress throughout the quarter?
Kyle Lorenzen (Executive Vice President and CFO)
Right. I'd say with the Ruckus business, we actually have all the volume we need for 26 right now. But as I want to mention, as we talked about in the last call, Ruckus requires a different graded chip. You know, it's not the high end, the really heat, heat sensitivity, you know, heat, it's more. It cannot have. It doesn't have to worry about the heat as much as it does in the Aurora product. On the Aurora side, you know, we're like most companies that are dealing with the tight supply, but I'd say in the first quarter we managed the challenge, we managed through the challenges, we delivered the strong results, and then we're working with our suppliers and customers on availability and pricing. The good thing for us is we've had orders on the books for multiple years now, and the suppliers are looking at that very favorably because we're not raising the volume to make sure we get a larger allocation. We've been very consistent on that and they've been very supportive in helping us up to this point. And I say that they're going to most likely continue to be able to do that for us. And we also, as you say, we are working on designs. I'd say we're a couple quarters away from having some additional options related to memory chips, but that's where we are there.
Kevinita Pruum
But I feel good right now about how we've been treated, we've been supported, and the fact that we're not AI is helping us in this case. Got it. Thank you, Chuck. Thanks, Kyle.
OPERATOR
Thank you. Our next question comes from Tim Savageau with Northland Capital Markets. Your line is open.
Tim Savageau (Equity Analyst at Northland Capital Markets)
Good morning and congrats on the Ruckus sale. I want to take kind of the flip side of the legacy question, and that is, I don't know if you'd look at sort of a growth aspect of Aurora and call that vc, cap and pon, but I asked the Same type of question as we look at that business now, how. I imagine it's small, but I wonder if you could try and size that in a similar way or talk about growth potential and a target for that business over time. Can it become, say, as big as the legacy business in a few years? And I have a follow up.
Kyle Lorenzen (Executive Vice President and CFO)
Yeah. So let me, I mean, I'll just talk a little bit about just the size of the PON and VC MPS business as it sits today in our Aurora business. You know, it's, it think about that. As, you know, it's less than 10% of the revenue. And as Chuck mentioned, you know, with the focus on, on the PON side and on the vcmts side where, you know, we've announced some, you know, some wins, particularly in Europe. Yeah, we would expect that business, you know, to grow, you know, fairly substantially over the next, you know, three to four years, you know, and we feel like, you know, there is some line of sight for us to, you know, be able to, you know, at least offset our legacy business with those two product lines, you know, so I think, you know, we're not going to go roll out the detailed forecast by product line, but I think, you know, as we think about what I mentioned before on that 15% of our legacy business with PON and VCMTs being, you know, less than 10. Yeah, we think over the next few years we can get it to be that size. And you know, when you think about, you know, our DOCSIS 4.0 products, the, you know, the amplifiers and the RPDs
OPERATOR
in particular, I mean, we are seeing, you know, you know, our projection within our forecast is to see those products year over year from 25 to 26 to grow, you know, in the 20% range. So, I mean, there is strong growth on that side of the business. And the other thing I could add to that Tim is more in line with the inorganic opportunities. As I shared earlier in the call, you know, with speaking to our large customers, there are opportunities for consolidators that can get us some additional product lines that these customers may need that we don't have today as well as additional customers that we don't have today. And obviously we'd be looking at not just products we could use right now, but products that we could use for the future. Great, thanks very much. And if I could follow up with that 20% growth in amplifiers and nodes offset by legacy declines, does that translate into maybe double digit revenue growth for Aurora in 26 despite the EBITDA decline? And that's it for me. Thanks. Yeah, you're probably somewhere in the. In the low double digits. Yeah. Thank you. I'm showing no further questions at this time. I would now like to turn it back to Chuck Treadway for closing remarks.
Chuck Treadway (President and CEO)
Yes, thank you for your time today, and obviously, we appreciate the interest in our company. And have a great rest of your week. Thank you very much.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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