Financial Data and Key Metrics Changes - For the three months ending July 31, 2025, consolidated revenue was $13.8 million, down from $15.1 million in the same period of the prior fiscal year, reflecting a decrease of approximately 8.6% [4] - Consolidated net income for the same period was approximately $634,000, or $0.07 per share, compared to approximately $2.4 million, or $0.25 per share for the same period of the prior fiscal year, indicating a significant decline in profitability [5] - The company's operating income decreased to approximately $364,000 from approximately $2.4 million in the prior fiscal year, primarily due to lower revenue and gross margin [5] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. government satellite programs was approximately $6.5 million, or 47% of total revenue, down from $8.3 million, or 55% in the prior fiscal year [4] - Revenues from non-space U.S. government and DOD customers increased to $6.9 million from $6.3 million, accounting for approximately 50% of consolidated revenues compared to 42% in the prior fiscal year [4] - Other commercial and industrial revenues decreased to approximately $439,000 from approximately $544,000 in the prior fiscal year [4] Market Data and Key Metrics Changes - The fully funded backlog at the end of July 2025 was approximately $71 million, slightly up from approximately $70 million for the previous fiscal year ended April 30, 2025, indicating stable demand [5] - The company maintains a strong working capital position of approximately $30 million and a current ratio of approximately 2.3 to 1, reflecting solid financial health [5] Company Strategy and Development Direction - The company is focused on expanding its capabilities in quantum sensing and has opened a new engineering facility in Boulder, Colorado, to support this initiative [3] - The company is actively bidding on new programs, anticipating meaningful new business opportunities, particularly in defense and space sectors [2] - The company plans to continue investing in R&D to keep its products at the state-of-the-art, despite a temporary decline in revenue and earnings [3][5] Management's Comments on Operating Environment and Future Outlook - Management noted that customer-driven delays impacted revenue recognition in the first quarter, but these issues are now resolved, and significant progress is being made towards a larger book of business [2] - The company expressed confidence in its future growth, citing a debt-free balance sheet and a commitment to returning cash to shareholders while investing in innovation [3] - Management highlighted the increasing global demand for resilient timing solutions, validating the company's strategic importance in the defense sector [3] Other Important Information - The company announced a $20 million authorization for share repurchase, demonstrating its commitment to returning value to shareholders [3] - The company is pursuing external government funding for R&D, particularly in quantum sensing, which is seen as a large emerging market [3] Q&A Session Summary Question: Update on various clock technologies and timelines for productization - The company is actively producing satellite-grade GPS atomic clocks and has begun producing prototypes of the Mercury Ion atomic clock in collaboration with the Jet Propulsion Laboratory, with low-rate production expected in about a year [10] Question: Interest in applying quantum sensing technology outside of space - The company is not currently investing directly in quantum computing but is aware of its potential applications and is building a workforce to support future contributions in this area [12]