Financial Data and Key Metrics Changes - First fiscal quarter revenue increased by 10% from $5.4 million to $6 million [4] - Income from operations rose by 28% to $1.9 million compared to $1.5 million [5] - GAAP net income increased by 13% to $1.8 million from $1.6 million [6][7] - Earnings per share for the quarter was $0.10 basic and $0.09 diluted, reflecting a year-over-year EPS growth of 13% [8] - Cash from operations decreased to $1.5 million from $1.9 million in the year-ago quarter [8] - Total cash increased to $28.8 million from $28.6 million, maintaining zero bank debt [8] Business Line Data and Key Metrics Changes - All lines of business are experiencing growth, with traditional sales and cross-selling initiatives contributing to accelerated momentum [9] - Revenue per employee is $356,000 annually, significantly higher than the industry average of $175,000 [5] Market Data and Key Metrics Changes - The company is positioned as a dominant player in the traceability and food safety sectors, leveraging its capabilities to grow across all business lines [15][22] - The traceability revenue continues to grow, enhancing the company's reputation in the industry [22] Company Strategy and Development Direction - The company aims to grow annual recurring revenue between 10%-20% and increase profitability at a faster rate [4] - A multi-year initiative to modernize the software code is underway, focusing on automation and AI to enhance operational efficiency [12][20] - The capital allocation strategy includes returning 50% of annual free cash flow to shareholders while maintaining a strong cash reserve [9][10] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a cautious industry environment due to factors like government shutdowns and inflation, but the impact is not substantial [28] - The focus on data integrity and error correction in traceability is seen as a significant opportunity for future growth [30] Other Important Information - The company has redeemed approximately 572,000 shares of preferred stock and continues to repurchase common shares without incurring debt [10][11] - The modernization project is expected to drive significant efficiencies and create incremental value for customers and shareholders [22] Q&A Session Summary Question: How, if at all, were you impacted by the government shutdown? - The shutdown impacts the food industry due to the FDA not working, causing caution in the industry, but the impact is not substantial [28] Question: Do you still believe your by-ingredient efforts are increasing your total addressable market? - Yes, it expands the market as traceability records require participation from suppliers, creating a connected chain [29][32]