Financial Data and Key Metrics Changes - For the second quarter ended March 31, 2025, the company reported revenue of $13.1 million, a decrease from $13.7 million in the prior year [5][13] - Service revenue was $4.6 million compared to $5.2 million in the same period last year, reflecting a decline due to a significant multimillion-dollar deal not being repeated [5][13] - Gross profit for the quarter was $4.2 million, representing 32% of sales, down from $6.2 million or 45.3% of sales in the previous year, attributed to higher component costs [13][14] - The company reported a loss of $108,000 or $0.01 per diluted share for the quarter, while for the six months, revenue was $28.5 million compared to $29.1 million in the first half of the previous fiscal year [15][16] Business Line Data and Key Metrics Changes - The technology solutions (TS) business generated $12 million in revenue and remains profitable, with ongoing contracts in the cruise line and ocean freighter markets [10][11] - The AZT Protect product line is gaining traction, with six new customers signed during the quarter, indicating a growing pipeline and potential for future sales [6][9] Market Data and Key Metrics Changes - The company has established a new reseller partnership with Rexel USA, enhancing its market presence in the industrial equipment sector [7] - The South African market is being targeted with a new contract that could generate seven-figure sales, indicating expansion into new geographic areas [10] Company Strategy and Development Direction - The company is focused on expanding its AZT Protect product line and enhancing its sales team to build brand recognition in the operational technology (OT) market [9] - Continued investments in marketing and partnerships are aimed at increasing market awareness and driving future sales growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential challenges in the operating environment, including price increases and reduced customer spending, but remains optimistic about the growth prospects for AZT Protect [12] - The company is entering the second half of the fiscal year with momentum from recent contracts and an expanding customer base [11][35] Other Important Information - The company finished the quarter with over $29 million in cash and cash equivalents, allowing for continued investment and a quarterly cash dividend of $0.03 per share [11][15] - The Board of Directors has authorized a cash dividend payable on June 11, 2025, indicating a commitment to returning value to shareholders [16] Q&A Session Summary Question: Inquiry about the backlog for AZT - Management indicated that the pipeline is growing but refrained from providing specific numbers, stating that deals are at different stages of the sales process [20] Question: Status of the cruise ship business - Management confirmed that the cruise ship business remains steady, with ongoing modifications and contracts being fulfilled as ships become available [22][23] Question: Uniqueness of the cell tower contract - Management highlighted the unique advantages of their solution for cell towers, including space efficiency and compatibility with Linux, which differentiates them from competitors [28] Question: Backlog of cloud-based projects - Management confirmed that the backlog of cloud-based projects has increased and is currently in the twenties, indicating strong demand [31]

Financial Data and Key Metrics Changes - For the second quarter ended March 31, 2025, the company reported revenue of $13.1 million, a decrease from $13.7 million in the prior year [5][13] - Service revenue was $4.6 million compared to $5.2 million in the same period last year, reflecting a decline due to a single multimillion-dollar deal not being repeated [5][13] - Gross profit for the quarter was $4.2 million, representing 32% of sales, down from $6.2 million or 45.3% of sales in the prior year, attributed to higher component costs and the absence of a high-margin contract [13] - The company reported a loss of $108,000 or $0.01 per diluted share for the quarter, while for the six months, revenue was $28.5 million compared to $29.1 million in the previous year [14][15] Business Line Data and Key Metrics Changes - The technology solutions (TS) business generated $12 million in revenue and remains profitable, with ongoing contracts in the cruise line and ocean freighter markets [10][11] - The AZT Protect product line is gaining traction, with six new customers signed during the quarter, indicating a growing pipeline and potential for future sales [6][9] Market Data and Key Metrics Changes - The company is expanding its relationships with AZT Protect resellers, particularly with Rexel USA, enhancing its market presence in the industrial equipment sector [7][8] - A new contract in South Africa for AZT Protect could generate seven-figure sales over the next 18 months, indicating potential growth in the cell tower protection market [10] Company Strategy and Development Direction - The company is focused on enhancing its sales team and building brand recognition for AZT Protect in the operational technology (OT) market [9] - Continued investments in marketing and partnerships are aimed at expanding revenue relationships and increasing market share [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential challenges in the operating environment, including price increases and reduced customer spending, but remains optimistic about the growth prospects for AZT Protect [12] - The company entered the second half of the fiscal year with momentum from recent contracts and is focused on maximizing opportunities [11][34] Other Important Information - The company finished the quarter with over $29 million in cash and cash equivalents and repurchased $384,000 worth of common shares [11][15] - The Board of Directors approved a $0.03 cash dividend for shareholders, reflecting the company's robust balance sheet [15] Q&A Session Summary Question: Inquiry about the backlog for AZT - Management indicated that the pipeline is growing but refrained from providing specific numbers on backlog or contract sizes [18][19] Question: Status of the cruise ship business - Management confirmed that the cruise ship business remains steady, with ongoing modifications and contracts [20][21] Question: Uniqueness of the cell tower contract - Management highlighted the unique space and CPU requirements of cell towers as a competitive advantage, noting that they are reaching out to similar companies [25][26][28] Question: Backlog of cloud-based projects - Management confirmed that the backlog of cloud-based projects has increased and is currently in the twenties [29][30]