Financial Data and Key Metrics Changes - For the three months ending July 31, 2025, consolidated revenue was $13.8 million, a decrease from $15.1 million in the same period of the prior fiscal year [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 [5] - The company's operating income decreased to approximately $364,000 from approximately $2.4 million in the prior fiscal year 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%, compared to $8.3 million, or 55%, in the same period of the prior fiscal year [4] - Revenues from non-space U.S. government and DOD customers were $6.9 million, an increase from $6.3 million in the same period of the prior fiscal year, accounting for approximately 50% of consolidated revenues compared to 42% for the prior fiscal year [4] - Other commercial and industrial revenues were approximately $439,000, down 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, compared to approximately $70 million for the previous fiscal year ended April 30, 2025 [5] - The company maintains a strong working capital position of approximately $30 million at July 31, 2025, with a current ratio of approximately 2.3 to 1 [5] Company Strategy and Development Direction - The company is focused on investing in growth for the future, particularly in quantum sensing and defense technologies [2][3] - A new engineering facility was opened in Boulder, Colorado, to support ongoing programs and new technology efforts, with expectations for positive contributions to the bottom line by the third quarter of the fiscal year [3] - The company is actively bidding on new programs, anticipating meaningful new business opportunities in the near term, particularly in space and defense sectors [2][3] Management's Comments on Operating Environment and Future Outlook - Management noted that customer-driven delays in key programs affected revenue recognition in the first quarter, but these issues are now resolved, and significant progress is being made [2] - The company remains confident in its strong fundamentals and future growth potential, despite a temporary decline in revenue and earnings [3] - Management emphasized the importance of their technologies in addressing vulnerabilities in global timing systems, which are increasingly critical in the defense landscape [3] Other Important Information - The company announced a $20 million authorization for share repurchase, reflecting its commitment to returning cash to shareholders while investing in future growth [3] - The company is pursuing external government funding for research and development, 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 - Management confirmed that atomic clocks are available off the shelf and that prototypes for advanced technologies like the Mercury Ion atomic clock are being produced in collaboration with the Jet Propulsion Laboratory, with low-rate production expected in about a year [8][10] Question: Interest in applying quantum sensing technology outside of space applications - Management stated that while they are not directly investing in quantum computing, they are aware of its developments and are focusing on quantum sensing technologies that can be quickly applied [11][12]

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 for the same period in the prior fiscal year, indicating a decrease of approximately 8.6% [12] - 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, reflecting a significant decline in profitability [17] - The company's 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 [17] 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 same period of the prior fiscal year [12] - Revenues from non-space U.S. government and DOD customers were $6.9 million, up from $6.3 million in the same period of the prior fiscal year, accounting for approximately 50% of consolidated revenues compared to 42% for the prior fiscal year [13] - Other commercial and industrial revenues decreased to approximately $439,000 from approximately $544,000 in the prior fiscal year [13] Market Data and Key Metrics Changes - The company noted that customer-driven delays on key programs pushed revenue recognition out of the fiscal first quarter, but these delays are not expected to result in overall program revenue reductions [4] - The company is actively bidding on new programs, with expectations of meaningful new business in the near term, particularly in space and defense markets [5][6] Company Strategy and Development Direction - The company has transformed into a larger, more profitable, and cash-generative entity that invests in future growth while rewarding shareholders [5] - The recent opening of an engineering facility in Boulder, Colorado, aims to support ongoing programs and new technology efforts, particularly in quantum sensing [6] - The company is pursuing external government funding for research and development, especially in quantum sensing, which is identified as a large emerging market [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the issues faced in the first quarter related to customer-led delays are now resolved, with significant progress being made towards a larger book of business [4] - The company maintains a debt-free balance sheet and a strong working capital position, indicating confidence in its liquidity to meet operational needs [9][17] - Management highlighted the increasing global focus on resilient timing technologies, validating the company's strategic importance in the defense sector [11] Other Important Information - The company announced a $20 million authorization for share repurchase, demonstrating its commitment to returning cash to shareholders while investing in future growth [10] - The company plans to host its second annual Quantum Sensing Summit in New York City, aimed at exploring emerging technologies and reinforcing its strategic role in advancing quantum technology [7] Q&A Session Summary Question: Update on various clock technologies and timelines for productization - Management confirmed that atomic clocks are available off the shelf, with prototypes of the Mercury Ion atomic clock being produced in collaboration with the Jet Propulsion Laboratory, expected for low-rate production in about a year [20][21] Question: Interest in applying quantum sensing technology outside of space applications - Management stated that while they are not directly investing in quantum computing, they are aware of its developments and are focusing on quantum sensing technologies that can contribute quickly [23][25]