Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [4][17] - Gross profit margin improved by 450 basis points to 34%, exceeding the target margin of 30% [4][17] - Operating profit was $719,000 compared to a loss of $419,000 in the same period last year [4][17] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [5][19] - Consolidated net income was $392,000 or $0.04 per share, compared to a net loss of $705,000 in Q3 2024 [18] Business Line Data and Key Metrics Changes - Strong growth was noted across aerospace, venues, telecommunications, and broadband networks [14] - The company is diversifying its product offerings and customer base, reducing reliance on tier one carrier customers [6][7] - Significant orders were received in the transportation market, including a terminal infrastructure project at a major U.S. airport [8] Market Data and Key Metrics Changes - The company is seeing contributions from fast-growing markets such as aerospace, transportation, and data centers [6][7] - The backlog at the end of the quarter was $19.7 million, with current backlog at $16.1 million [5][21] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider [6] - Focus on building deeper relationships with existing customers and expanding into new markets [10][11] - Emphasis on operational efficiency and cost structure to improve profitability without compromising quality [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels [12][16] - The company is mindful of potential tariff impacts and ongoing supply chain constraints but remains optimistic about its sales pipeline [16][20] - The management highlighted the importance of execution in achieving results and capitalizing on future opportunities [16] Other Important Information - The company has a strong balance sheet with $3 million in cash and cash equivalents and a current ratio of approximately 1.6 to 1 [20] - Inventory levels were managed carefully, with a slight increase from the previous quarter [20] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells versus mix? - Management indicated that the mix of higher-value items, including DAC thermal cooling systems and aerospace projects, is contributing to the improved gross margin [23][24] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, with potential fluctuations based on product mix and sales levels [25][26] Question: Can you characterize the competition between traditional wireless business and newer end markets? - Management noted that contributions are coming from various markets, indicating a diverse customer base and product lines [27][28] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [29][30] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [31]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [5][18] - Gross profit margin improved to 34%, a 450 basis point increase from 29.5% in the same quarter last year [5][18] - Operating profit was $719,000 compared to a loss of $419,000 in the prior year [5][18] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [6][19] Business Line Data and Key Metrics Changes - The company has diversified its product offerings, with significant contributions from aerospace, transportation, and data centers [7][9] - Strong growth was noted in aerospace, with repeat orders from a leading market player [8] - The transportation market is seen as a significant opportunity, with meaningful orders for infrastructure projects [9] Market Data and Key Metrics Changes - The company is experiencing growth across various markets, including aerospace, venues, telecommunications, and broadband networks [15] - The sales pipeline includes over 100 venues, with projects related to major events like the Olympics and World Cup [10][31] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider, focusing on product diversification and deeper customer relationships [7][8] - Partnerships with tier one carriers and new manufacturers are being leveraged to expand market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels, despite potential tariff impacts [13][17] - The company is focused on operational efficiency and profitability, with a strong sales pipeline and disciplined operations [16][19] Other Important Information - The company ended the quarter with a backlog of $19.7 million, which has since decreased to $16.1 million [6][22] - Inventory levels were managed carefully, with a slight increase from the previous quarter [21] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells? - Management indicated that the product mix, including higher-value items, has contributed to the margin improvement, alongside increased sales volume [24][25] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, but specific quarter-to-quarter predictions are challenging due to fluctuations in sales [26][27] Question: How is competition characterized between traditional wireless business and newer markets? - Management noted contributions from various markets, emphasizing the importance of diversification in customer base and product lines [28][29] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [31][32] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [33][34]

Financial Data and Key Metrics Changes - Net sales for the first quarter were $19.2 million, a significant increase of 42.7% compared to $13.5 million in the same quarter last year [8] - Gross profit margin for the first quarter was 29.8%, in line with the target of 30% [9] - Adjusted EBITDA for the quarter was $867,000, a significant improvement from an adjusted EBITDA loss of $1.1 million in Q1 2024 [30] - The company ended the quarter with a backlog of $15.2 million [10] Business Line Data and Key Metrics Changes - Sales increased by $5.7 million compared to Q1 last year, with a favorable mix towards higher value offerings, including DAC thermal cooling systems and integrated small cell solutions [11] - Custom cables, wire harnesses, and core distribution-centric RF products also contributed solidly to the quarter [11] - The company is diversifying its customer base, with a growing portion of product revenue coming from customers outside the large Tier 1 wireless carriers [12] Market Data and Key Metrics Changes - The company anticipates an increase in stadium and venue projects, positioning itself to benefit from these trends [15] - The aerospace industry is identified as a high-growth area, with a significant interconnect opportunity won from a leading aerospace company [14] Company Strategy and Development Direction - The company is transforming from a product company to a solutions provider, focusing on comprehensive solutions that address customer needs [24][26] - Strategic investments have been made to expand the sales team and enhance customer engagement [27] - The company aims to achieve an adjusted EBITDA goal of 10% of sales or greater [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities ahead, with expectations for fiscal 2025 revenue to be significantly higher than fiscal 2024 [22] - The company is closely monitoring tariff proposals and does not anticipate a significant impact from new tariffs on its operations [19][20] Other Important Information - The company has a current ratio of approximately 1.7:1, with current assets of $29.5 million and current liabilities of $17.8 million [31] - Inventory decreased to $13.5 million from $18 million last year, reflecting improvements in procurement and supply chain processes [32] Q&A Session Summary Question: Update on the lower margin hybrid product - Management noted that the backlog has maintained around $15 million, with older hybrid fiber products being replaced by newer product lines [37][39] Question: Reason for sequential increase during a slow quarter - The increase was attributed to new product lines and some contribution from operating expenditures [42][46] Question: Insights on gross margin changes throughout the year - Management is optimistic about maintaining around a 30% gross margin, with potential for improvement as production optimization continues [48][50] Question: Impact of the new sales team on recent growth - The performance is partly credited to the new sales team, with expectations for minimal additional spending on resources [51][56] Question: Expectations for cash flow and debt paydown - Management indicated that cash flow is positive and they expect to take a chunk out of debt this year [76] Question: Performance of Microlab products - Microlab products have shown variable performance, but the acquisition has positioned the company well within the market [80][82]