Financial Data and Key Metrics Changes - The company ended the first quarter with a cash balance of $5.8 million, down from $6.4 million at the fiscal year-end [2] - Accounts receivable decreased to $4.4 million from $4.6 million, while inventory increased to $15 million from $14.3 million due to ramped-up production for the XM30 program [2][3] - Operating cash uses were $0.1 million compared to an operating cash generation of $2.8 million in the prior year period, primarily due to lower profitability and increased inventory [4] - Revenue for the first quarter increased 11.6% year-over-year to $9.1 million, with net income totaling $0.2 million and adjusted EBITDA at $0.7 million [5][8] Business Line Data and Key Metrics Changes - Optex-Richardson revenue rose 55.9%, driven by higher periscope production and increased XM30 activity [5] - Applied Optics Center (AOC) revenue declined 20.1%, primarily due to lower laser filter and optical assembly volumes [6] - New orders for the quarter totaled $7.9 million, a 31.7% increase year-over-year, with Optex-Richardson orders rising 46.2% [8] Market Data and Key Metrics Changes - Backlog totaled $37.9 million, down from $42 million last year, primarily due to program delays stemming from the 2025 government shutdown [8] - The company expects AOC revenues to improve in the second half of fiscal year 2026, supported by recent bookings and anticipated contract awards [7] Company Strategy and Development Direction - The company plans to invest approximately $2.4 million in capital improvements during fiscal year 2026, focusing on expanding capacity and developing new capabilities [4][5] - Investments in research and development, along with expanded capabilities, are expected to drive revenue growth and improve margin performance as older programs wind down [12][13] - The company is entering a period of accelerating opportunity, with a focus on execution, operational discipline, and innovation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and improving profitability, highlighting the strong pricing and higher value programs in the current backlog [13][14] - The leadership transition and temporary overlap of senior roles contributed to increased general and administrative expenses, but these costs are not expected to continue beyond the first quarter [7][8] Other Important Information - The company announced a new stock repurchase program authorizing up to $10 million in common stock purchases, replacing the prior program [9] - The company has invested in additional machining and assembly equipment to support the XM30 vehicle program, which represents a significant opportunity for the Richardson segment [11] Q&A Session Summary Question: No questions were received during the Q&A session - The operator confirmed that there were no questions from participants during the call [15]