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Mobix Labs(MOBX) - 2025 Q1 - Earnings Call Transcript
MOBXMobix Labs(MOBX)2025-02-19 00:01

Financial Data and Key Metrics Changes - In Q1 2025, Mobix Labs reported revenues of 3.17million,exceedingpriorguidanceandmarkinga7.33.17 million, exceeding prior guidance and marking a 7.3% sequential increase over the previous quarter [11][23] - Revenue increased 11-fold compared to the same fiscal quarter last year, indicating exceptional growth [23] - Adjusted gross margin for Q1 2025 was 54.1%, down from 56.6% in the prior quarter, reflecting ongoing price discipline and cost efficiencies [24][49] - Adjusted loss from operations improved by 28.9%, narrowing to 2.5 million from 3.6millioninQ4[24][49]Cashincreasedto3.6 million in Q4 [24][49] - Cash increased to 405,000 at the end of Q1, up from $266,000 in the prior quarter [25][50] Business Line Data and Key Metrics Changes - The EMI Interconnect Solutions product line is a high growth engine, with strong demand for Filtered ARINC Connectors launched in mid-2024 [14][38] - RaGE Systems continues to drive growth, recently awarded a Phase 1 SBIR grant from the U.S. Department of Defense for satellite communications technology [16][40] - Demand for millimeter wave imaging and security detection products remains robust, with advancements in imaging modules opening new market opportunities [41] Market Data and Key Metrics Changes - The company is expanding its presence in the aerospace and defense markets through the acquisition of Spacecraft Components Corp and SCP Manufacturing [12][36] - The integration of these acquisitions is expected to enhance operational efficiency and profitability [13][37] Company Strategy and Development Direction - Mobix Labs is focused on leveraging technology innovation, strategic acquisitions, and operational excellence to drive sustained growth [11][20] - The company aims to achieve a long-term gross margin of 60% and an adjusted operating margin of 30% [51][52] - Strategic investments in technology, talent, and infrastructure are planned to maximize shareholder value [45][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges substantial near-term variability associated with the acquisition strategy and sales cycles, opting to withhold revenue guidance for the second fiscal quarter [26][51] - The company remains committed to disciplined cost management to drive operational leverage and advance toward profitability [52] Other Important Information - The company is actively pursuing additional financing to capitalize on strategic acquisitions and rising customer demand [25][50] - Ongoing research collaborations with the University of Massachusetts at Lowell are generating innovations in infrastructure imaging and satellite communications [44] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management did not provide specific revenue guidance for the upcoming quarter due to variability in acquisition strategy and sales cycles [26][51] Question: How is the company addressing operational efficiencies? - The company is focused on disciplined cost management and optimizing production capacity to meet growing customer demand [19][52]