Q3 2024 Mobix Labs Inc Earnings Call

August 21, 2024

Operator: Thank you for standing by and welcome to the Mobix Labs' third quarter, 2024 earnings conference call. At this time, all participants are in a listening only mode. After the speaker's presentation, there will be a question and answer session, to ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sayo Denloye of the BlueShirt Group. Please go ahead, sir.

Shio Delaloie: As a reminder, her today's program is being recorded. And now I'd like to introduce your host for today's program, Shio Delaloie, of the BlueShirt Group. Please go ahead, sir.

Operator: As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sayo Denloye of the BlueShirt Group. Please go ahead, sir. Thank you. Good afternoon, everyone. I'm Sayo Denloye, investor relations from Mobix Labs, and I'd like to thank you for joining us today as we report Mobix' third fiscal quarter 2024 financial results, for the period ending June 30th.

Sayo Denloye: Thank you. Good afternoon, everyone. I'm Sayo Denloye, investor relations from Mobix Labs, and I'd like to thank you for joining us today as we report Mobix' third fiscal quarter 2024 financial results, for the period ending June 30th. With me on the call today, ar Fabian Battaglia, Mobix' Chief Executive Officer, and Keyvan Samini, President and Chief Financial Officer. This call is simultaneously being webcast on the investor relations section of our website at mobixlabs.com. Before we get started, I would like to remind everyone of our safe harbor policy.

Sayo Denloye: With me on the call today, ar Fabian Battaglia, Mobix' Chief Executive Officer, and Keyvan Samini, President and Chief Financial Officer. This call is simultaneously being webcast on the investor relations section of our website at mobixlabs.com. Before we get started, I would like to remind everyone of our safe harbor policy.

Sayo Denloye: With me on the call today, are Fabian Battaglia, Mobix' Chief Executive Officer, and Keyvan Samini, President and Chief Financial Officer. This call is simultaneously being webcast on the investor relations section of our website at mobixlabs.com.

Sayo Denloye: Before we get started, I would like to remind everyone of our safe harbor policy. Comments made during this conference call and webcast contain forward looking statements, within the meaning of the private security litigation reform act of 1995, and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characteristics of future events, including financial projections, future market conditions, or future enhancements or development is a forward looking statement. Mobix actual future results could differ materially from those expressed in such forward looking statements for any reason, including those listed in our SEC filings.

Sayo Denloye: Comments made during this conference call and webcast contain forward looking statements, within the meaning of the private security litigation reform act of 1995, and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characteristics of future events, including financial projections, future market conditions, or future enhancements or development is a forward looking statement. Mobix actual future results could differ materially from those expressed in such forward looking statements for any reason, including those listed in our SEC filings.

Sayo Denloye: Mobix assumes no obligation to update any such forward looking statements, except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including our form 10-Q for the quarter ended June 30th 2024, in the section entitled "risk factors" in the form S1 [inaudible] on August 12th, 2024. In addition, this call includes non-GAAP financial measures, reconciliation of these non-GAAP financial measures, with the most directly comparable GAAP measures are included in our third quarter earnings release posted on the investor relations section of our website. With that, I will turn the call over to Fabian Bataglia. Fabian, please go ahead.

Fabian Bataglia: With that, I will turn the call over to Fabian Bataglia. Fabian, please go ahead. Thank you, Shio. Today, I'll review the June quarter and share with you highlights of our successful acquisition strategy to build Mobix Labs into an increasingly diversified leading edge tech pioneer. We are unleashing the performance of next-generation product lines like EMI interconnect solutions, wireless systems, active optical cables, and 5GIC solutions that will leverage and enhance our 5G portfolio for future growth.

With that, I will turn the call over to Fabian Bataglia. Fabian, please go ahead.

Fabian Battaglia: Thank you, Shio. Today, I'll review the June quarter and share with you highlights of our successful acquisition strategy to build Mobix Labs into an increasingly diversified leading edge tech pioneer. We are unleashing the performance of next-generation product lines like EMI interconnect solutions, wireless systems, active optical cables, and 5G IC solutions that will leverage and enhance our 5G portfolio for future growth, Keyvan Samini, our President and CFO, will follow up with financial comments. In the June quarter, I'm pleased to announce sequential revenue growth of 80% to $2.1 million. We are also happy to announce we received $4 million in July, as part of a private placement, and we look forward to additional financing to fuel our acquisition strategy, and provide for our working capital needs. Increasing demand and exciting requests for proposals prove that customers with high reliability, needs want to do business with Mobix labs and our expanded offering.

Fabian Battaglia: Thank you, Sayo. Today, I'll review the June quarter and share with you highlights of our successful acquisition strategy to build Mobix Labs into an increasingly diversified leading edge tech pioneer. We are unleashing the performance of next-generation product lines like EMI interconnect solutions, wireless systems, active optical cables, and 5G IC solutions that will leverage and enhance our 5G portfolio for future growth, Keyvan Samini, our President and CFO, will follow up with financial comments. In the June quarter, I'm pleased to announce sequential revenue growth of 80% to $2.1 million.

Kavon Semeni: K von Semeni, our President and CFO, will follow up with financial comments. In the June quarter, I'm pleased to announce the sequential revenue growth of 80 percent, to 2.1 million. We are also happy to announce we received 4 million in July as part of a private placement, and we look forward to additional financing to fuel our acquisition strategy and provide for our working capital needs. Increasing demand and exciting requests for proposals prove that customers with high reliability, needs want to do business with Mobix Labs and our expanded offering.

Fabian Battaglia: We are also happy to announce we received $4 million in July, as part of a private placement, and we look forward to additional financing to fuel our acquisition strategy, and provide for our working capital needs. Increasing demand and exciting requests for proposals prove that customers with high reliability, needs want to do business with Mobix labs and our expanded offering. We have long-term relationships with our manufacturers, reps and distributors and they are happy, to offer additional products to their customers. A key element of our strategy is expansion through synergistic product acquisitions in diverse industry sectors, which will broaden our customer base, and allow our customers to reduce the number of suppliers. As part of our ongoing strategy to enhance our market position and deliver sustainable growth, I am pleased to announce we have entered into an agreement to acquire J-Mark Connectors Inc. This acquisition strengthens our presence in the military, aerospace and defense sectors. By integrating J-Mark's proven expertise in EMI interconnect solutions, we will be expanding, our customer base and product offerings to better meet the stringent requirements in aerospace, military and medical markets. This acquisition will drive revenue growth, improve our gross margins and set the stage, for long-term value creation for our customers and stakeholders.

Kavon Semeni: We have long-term relationships with our manufacturers, reps and distributors and they are happy, to offer additional products to their customers. A key element of our strategy is expansion through synergistic product acquisitions and diverse, industry sectors which will broaden our customer base and allow our customers to reduce the number of suppliers. As part of our ongoing strategy to enhance our market position and deliver sustainable

Fabian Battaglia: A key element of our strategy is expansion through synergistic product acquisitions in diverse industry sectors, which will broaden our customer base, and allow our customers to reduce the number of suppliers. As part of our ongoing strategy to enhance our market position and deliver sustainable growth, I am pleased to announce we have entered into an agreement to acquire J-Mark Connectors Inc. This acquisition strengthens our presence in the military, aerospace and defense sectors. By integrating J-Mark's proven expertise in EMI interconnect solutions, we will be expanding, our customer base and product offerings to better meet the stringent requirements in aerospace, military and medical markets. This acquisition will drive revenue growth, improve our gross margins and set the stage, for long-term value creation for our customers and stakeholders.

Fabian Battaglia: As part of our ongoing strategy to enhance our market position and deliver sustainable growth, I am pleased to announce we have entered into an agreement to acquire J-Mark Connectors Inc. This acquisition strengthens our presence in the military, aerospace and defense sectors. By integrating J-Mark's proven expertise in EMI interconnect solutions, we will be expanding, our customer base and product offerings to better meet the stringent requirements in aerospace, military and medical markets. This acquisition will drive revenue growth, improve our gross margins and set the stage, for long-term value creation for our customers and stakeholders.

Fabian Bataglia: growth, I am pleased to announce we have entered into an agreement to acquire J-Mark Connectors Inc. This acquisition strengthens our presence in the military, aerospace and defense sectors. By integrating J-Mark's proven expertise in EMI interconnect solutions, we will be expanding, our customer base and product offerings to better meet the stringent requirements in aerospace, military and medical markets. This acquisition will drive revenue growth, improve our gross margins and set the stage, for long-term value creation for our customers and stakeholders.

Fabian Battaglia: By integrating J-Mark's proven expertise in EMI interconnect solutions, we will be expanding, our customer base and product offerings to better meet the stringent requirements in aerospace, military and medical markets. This acquisition will drive revenue growth, improve our gross margins and set the stage, for long-term value creation for our customers and stakeholders. The integration of J-Mark's expertise in EMI interconnect solutions will significantly, enhance Mobix Labs' product portfolio, enabling us to meet the most demanding filtering, grounding and transient suppression requirements in aerospace, military and medical sectors. We look forward to capitalizing on the acquisition of J-Mark as we continue to execute our, growth strategy. Additionally, I am pleased to report the successful close and significant June quarter revenue contribution of Rage Systems in May. Now Mobix Labs and Rage Systems together provide breakthrough joint-designed manufacturing, services for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors and imaging sensors. One new example of product innovation from this acquisition is our new Smart Edge, Device product line. In early August, we announced our participation at the 2024 Lighthouse Supplier Innovation, and Technology Symposium.

Fabian Bataglia: The integration of J-Mark's expertise in EMI interconnect solutions will significantly, enhance Mobix Labs' product portfolio, enabling us to meet the most demanding filtering, grounding and transient suppression requirements in aerospace, military and medical sectors. We look forward to capitalizing on the acquisition of J-Mark as we continue to execute our, growth strategy.

Fabian Battaglia: The integration of J-Mark's expertise in EMI interconnect solutions will significantly enhance Mobix Labs' product portfolio, enabling us to meet the most demanding filtering, grounding and transient suppression requirements in aerospace, military and medical sectors. We look forward to capitalizing on the acquisition of J-Mark, as we continue to execute our, growth strategy. Additionally, I am pleased to report the successful close, and significant June quarter revenue contribution of RaGE Systems in May. Now Mobix Labs and RaGE Systems together, provide breakthrough joint-designed manufacturing services, for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors and imaging sensors. One new example of product innovation from this acquisition is our new SMART Edge, device product line. In early August, we announced our participation at the 2024 Lighthouse Supplier Innovation, and Technology Symposium. At the conference, we showcased this new product line, which is a software-manageable, autonomous, radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast, node, micro-O-RAN-RU-23 and 4G transition base stations and many other custom applications.

Fabian Bataglia: Additionally, I am pleased to report the successful close and significant June quarter revenue contribution of Rage Systems in May. Now Mobix Labs and Rage Systems together provide breakthrough joint-designed manufacturing, services for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors and imaging sensors. One new example of product innovation from this acquisition is our new Smart Edge, Device product line. In early August, we announced our participation at the 2024 Lighthouse Supplier Innovation, and Technology Symposium.

Fabian Battaglia: Additionally, I am pleased to report the successful close, and significant June quarter revenue contribution of RaGE Systems in May. Now Mobix Labs and RaGE Systems together, provide breakthrough joint-designed manufacturing services, for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors and imaging sensors.

Fabian Battaglia: Now Mobix Labs and RaGE Systems together, provide breakthrough joint-designed manufacturing services, for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors and imaging sensors. One new example of product innovation from this acquisition is our new SMART Edge, device product line. In early August, we announced our participation at the 2024 Lighthouse Supplier Innovation, and Technology Symposium. At the conference, we showcased this new product line, which is a software-manageable, autonomous, radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast, node, micro-O-RAN-RU-23 and 4G transition base stations and many other custom applications.

Fabian Battaglia: One new example of product innovation from this acquisition is our new SMART Edge, device product line. In early August, we announced our participation at the 2024 Lighthouse Supplier Innovation, and Technology Symposium. At the conference, we showcased this new product line, which is a software-manageable, autonomous, radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast, node, micro-O-RAN-RU-23 and 4G transition base stations and many other custom applications. SMART Edge is a good example of next-generation product developed by RaGE Wireless Systems team, and I'm proud to say that we have retained all of their staff. They are excited to join Mobix Labs team, as they continue to work on next-generation technology, while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust, expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale. To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic, M&A opportunities in diverse industries to further expand our customer base. Our focus is on strategic tech additions, cash generation and accretion within two quarters. We are serving very large and rapidly growing markets, on our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% CAGR, growing to nearly $4 billion by 2028.

Fabian Bataglia: At the conference, we showcased this new product line, which is a software-manageable autonomous, radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast, node, micro-O-RAN-RU-23 and 4G transition base stations and many other custom applications.

Fabian Battaglia: At the conference, we showcased this new product line, which is a software-manageable, autonomous, radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast, node, micro-O-RAN-RU-23 and 4G transition base stations and many other custom applications. SMART Edge is a good example of next-generation product developed by RaGE Wireless Systems team, and I'm proud to say that we have retained all of their staff. They are excited to join Mobix Labs team, as they continue to work on next-generation technology, while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale.

Fabian Battaglia: SMART Edge is a good example of next-generation product developed by RaGE Wireless Systems team, and I'm proud to say that we have retained all of their staff. They are excited to join Mobix Labs team, as they continue to work on next-generation technology, while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust, expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale. To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic, M&A opportunities in diverse industries to further expand our customer base. Our focus is on strategic tech additions, cash generation and accretion within two quarters. We are serving very large and rapidly growing markets, on our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% CAGR, growing to nearly $4 billion by 2028.

Fabian Battaglia: SMART Edge is a good example of next-generation product developed by RaGE Wireless Systems team, and I'm proud to say that we have retained all of their staff.

Fabian Bataglia: Smart Edge is a good example of next-generation product developed by Rage Wireless Systems, team and I'm proud to say that we have retained all of their staff. They are excited to join Mobix Labs team as they continue to work on next-generation, technology while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale.

Fabian Battaglia: They are excited to join Mobix Labs team, as they continue to work on next-generation technology, while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust, expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale. To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic, M&A opportunities in diverse industries to further expand our customer base. Our focus is on strategic tech additions, cash generation and accretion within two quarters. We are serving very large and rapidly growing markets, on our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% CAGR, growing to nearly $4 billion by 2028.

Fabian Battaglia: They are excited to join Mobix Labs team, as they continue to work on next-generation technology, while leveraging our expanding customer and product footprint.

Fabian Battaglia: We are continuing to run fast as we consider other future transactions. Our robust expanding M&A pipeline of potential targets is expected to continue driving, diversification of our offerings and adding scale.

Fabian Bataglia: To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic, M&A opportunities in diverse industries to further expand our customer base. Our focus is on strategic tech additions, cash generation and accretion within two quarters. We are serving very large and rapidly growing markets. On our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% cager growing to nearly 4 billion by 2028.

Fabian Battaglia: We are serving very large and rapidly growing markets, on our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% CAGR, growing to nearly $4 billion by 2028. I'd like to highlight four of our solution groups today. EMI interconnect solutions, wireless system solutions from RAID systems, active optical cables and IC solutions for our 5G portfolio. Revenue for our EMI interconnect solutions was record in the June quarter. These filtering products from our previous EMI acquisitions are widely used in an industry with a high cost of failure. Mission critical customers know they can rely on Mobix Labs connectors for predictable performance. Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon and Goldstream. A good testimonial to how customers rely on Mobix Labs is a recent announcement that we are now delivering products for the Navy's Standard Missile 6 program, our products met the Navy's rigorous standards to withstand high shock, vibration and extreme temperatures. We look forward to more orders from this important U.S. defense program.

Fabian Bataglia: I'd like to highlight four of our solution groups today. EMI interconnect solutions, wireless system solutions from RAID systems, active optical cables and IC solutions for our 5G portfolio. Revenue for our EMI interconnect solutions was record in the June quarter. These filtering products from our previous EMI acquisitions are widely used in an industry with a high cost of failure. Mission critical customers know they can rely on Mobix Labs connectors for predictable performance.

Fabian Battaglia: These filtering products from our previous EMI acquisitions are widely used in an industry with a high cost of failure. Mission critical customers know they can rely on Mobix Labs connectors for predictable performance. Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon and Goldstream. A good testimonial to how customers rely on Mobix Labs is a recent announcement that we are now delivering products for the Navy's Standard Missile 6 program, our products met the Navy's rigorous standards to withstand high shock, vibration and extreme temperatures. We look forward to more orders from this important US defense program.

Fabian Battaglia: Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon and Goldstream. A good testimonial to how customers rely on Mobix Labs is a recent announcement that we are now delivering products for the Navy's Standard Missile 6 program, our products met the Navy's rigorous standards to withstand high shock, vibration and extreme temperatures. We look forward to more orders from this important U.S. defense program.

Fabian Bataglia: Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon and Goldstream. A good testimonial to how customers rely on Mobix Labs is a recent announcement that we are now delivering products for the Navy's Standard Missile 6 program. Our products met the Navy's rigorous standards to withstand high shock, vibration and extreme temperatures. We look forward to more orders from this important U.S. defense program.

Fabian Bataglia: Also, we have other large bids we are working on right now, including with a global defense aerospace and security company, and another bid for an international aviation service company with a broad portfolio of aerospace and defense systems and components. The EMI team has been running fast to innovate, and this includes a recently announced filtered A-Rank connectors which are setting a new standard in price, performance and customization. The new connectors are designed to deliver exceptional performance and reliability, featuring advanced EMI filtering options to ensure optimal signal integrity and minimal resonance. We also introduced a new family of filtered D sub-connectors designed to eliminate unwanted electromagnetic interference and defense, aerospace, medical and commercial applications. These connectors feature robust construction and superior EMI filtering capabilities ensuring optimal performance and reliability in the most demanding environments. These EMI interconnects solution products and our exceptional performance and contributions, to the supply chain were recognized in May when we were honored to receive the Gold-Tear, Supplier Award from our long-term partner BAE Systems.

Fabian Battaglia: Also, we have other large bids we are working on right now, including with a global defense aerospace and security company, and another bid for an international aviation service company with a broad portfolio of aerospace and defense systems and components. The EMI team has been running fast to innovate, and this includes a recently announced filtered A-Rank connectors which are setting a new standard in price, performance and customization. The new connectors are designed to deliver exceptional performance and reliability, featuring advanced EMI filtering options to ensure optimal signal integrity and minimal resonance.

Fabian Bataglia: The EMI team has been running fast to innovate and this includes a recently announced filtered A-Rank connectors which are setting a new standard in price performance and customization. The new connectors are designed to deliver exceptional performance and reliability featuring advanced EMI filtering options to ensure optimal signal integrity and minimal resonance. We also introduced a new family of filtered D sub-connectors designed to eliminate unwanted electromagnetic interference and defense, aerospace, medical and commercial applications.

Fabian Battaglia: We also introduced a new family of filtered D sub-connectors designed to eliminate unwanted electromagnetic interference and defense, aerospace, medical and commercial applications. These connectors feature robust construction and superior EMI filtering capabilities ensuring optimal performance and reliability in the most demanding environments. These EMI interconnects solution products and our exceptional performance and contributions, to the supply chain were recognized in May when we were honored to receive the Gold-Tear, Supplier Award from our long-term partner BAE Systems.

Fabian Bataglia: These connectors feature robust construction and superior EMI filtering capabilities ensuring optimal performance and reliability in the most demanding environment. These EMI interconnects solution products and our exceptional performance and contributions, to the supply chain were recognized in May when we were honored to receive the Gold-Tear, Supplier Award from our long-term partner BAE Systems.

Fabian Battaglia: Also, as I mentioned earlier, we are very excited to have the new team from RaGE Systems onboard this quarter, as our wireless system solutions product group. These products are specialized for 5G communications, millimeter wave imaging, and software-defined, radios. In addition to our participation at the [inaudible] Supplier Symposium and the new SMART Edge Device Radio Transceiver, we signed a strategic partnership with Talking Heads Wireless to develop and produce a new generation of cost-effective, energy-efficient 5G-based stations. These 5G radio solutions use AI technology to optimize power energy consumption while, Mobix Labs broad portfolio of products, including ICs and antennas, deliver significant advantage in performance, efficiency, cost, and size for 5G-based stations. Our mission is to help develop solutions that significantly reduce the power consumption, of base stations, cutting the energy cost of 5G-towers in half. We are in the early stages of growing the wireless system solutions business. Our combined system level knowledge and IC design capabilities gives us a unique advantage, in partnering with our customers. The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities and exciting developments and product wins, with key customers in the aerospace and defense, wireless, industrial, and security marketplace. The RagE System team is also now augmenting Mobix Labs' past work for our product group IC, solutions for the 5G-millimeter wave market.

Fabian Battaglia: These 5G radio solutions use AI technology to optimize power energy consumption while, Mobix Labs broad portfolio of products, including ICs and antennas, deliver significant advantage in performance, efficiency, cost, and size for 5G-based stations. Our mission is to help develop solutions that significantly reduce the power consumption, of base stations, cutting the energy cost of 5G-towers in half. We are in the early stages of growing the wireless system solutions business. Our combined system level knowledge and IC design capabilities gives us a unique advantage, in partnering with our customers. The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities and exciting developments and product wins, with key customers in the aerospace and defense, wireless, industrial, and security marketplace. The RagE System team is also now augmenting Mobix Labs' past work for our product group IC, solutions for the 5G-millimeter wave market.

Fabian Bataglia: These 5G radio solutions use AI technology to optimize power energy consumption while, Mobix Labs broad portfolio of products including ICs and antennas deliver significant advantage in performance, efficiency, cost, and size for 5G-based stations. Our mission is to help develop solutions that significantly reduce the power consumption, of base stations, cutting the energy cost of 5G-towers and half.

Fabian Bataglia: We are in the early stages of growing the wireless system solutions business. Our combined system level knowledge and IC design capabilities gives us a unique advantage, in partnering with our customers. The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities and exciting developments and product wins with key customers in the aerospace and defense, wireless, industrial, and security marketplace. The Rage System team is also now augmenting Mobix Labs' past work for our product group IC, solutions for the 5G-millimeter wave market.

Fabian Battaglia: The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities and exciting developments and product wins, with key customers in the aerospace and defense, wireless, industrial, and security marketplace. The RagE System team is also now augmenting Mobix Labs' past work for our product group IC, solutions for the 5G-millimeter wave market. While as early days for 5G, we are excited about the size of this emerging market opportunity, and using our 5G developments for our wireless systems products and solutions for future growth. Active optical cable solutions is a more mature part of Mobix Labs, it provides connectivity for high bandwidth and low latency connections such as professional audio video systems, HP Poly products are a good example of a customer we have been serving for several years. These four innovative product lines that I have outlined for you, provide compelling solutions, and our leadership team's solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions. It is an exciting time to be at Mobix Labs, given our quickly expanding pipeline of opportunities, especially in high reliability markets such as EMI interconnect solutions and wireless system solutions.

Fabian Battaglia: The RagE System team is also now augmenting Mobix Labs' past work for our product group IC, solutions for the 5G-millimeter wave market. While as early days for 5G, we are excited about the size of this emerging market opportunity, and using our 5G developments for our wireless systems products and solutions for future growth.

Fabian Bataglia: While as early days for 5G, we are excited about the size of this emerging market opportunity, and using our 5G developments for our wireless systems products and solutions for future growth. Active optical cable solutions is a more mature part of Mobix Labs. It provides connectivity for high bandwidth and low latency connections such as professional audio video systems.

Fabian Battaglia: Active optical cable solutions is a more mature part of Mobix Labs, it provides connectivity for high bandwidth and low latency connections such as professional audio video systems, HP Poly products are a good example of a customer we have been serving for several years. These four innovative product lines that I have outlined for you, provide compelling solutions, and our leadership team's solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions. It is an exciting time to be at Mobix Labs, given our quickly expanding pipeline of opportunities, especially in high reliability markets such as EMI interconnect solutions and wireless system solutions.

Fabian Bataglia: HP Poly products are a good example of a customer we have been serving for several years. These four innovative product lines that I have outlined for you provide compelling solutions, and our leadership team's solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions. It is an exciting time to be at Mobix Labs given our quickly expanding pipeline of opportunities, especially in high reliability markets such as EMI interconnect solutions and wireless system solutions.

Fabian Battaglia: These four innovative product lines that I have outlined for you, provide compelling solutions, and our leadership team's solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions. It is an exciting time to be at Mobix Labs, given our quickly expanding pipeline of opportunities, especially in high reliability markets such as EMI interconnect solutions and wireless system solutions.

Fabian Battaglia: Request for proposals are at an all-time high. In summary, our goal is to unleash the performance of next-generation EMI interconnect solutions, wireless system solutions and leading-edge 5G-millimeter wave. I am happy to say custard demand for our solutions is strong, and our customer pipeline is growing. As an experienced team, we knew when we founded Mobix Labs that it wouldn't be easy, but I can tell you, that we have demand and an incredible team of people ready to execute, and is a very exciting chapter of growth for this industry and for Mobix Labs. Keyvan will now tell you more about the financials, and how we are working hard to garner working capital needed to fund those opportunities. Keyvan.

Fabian Battaglia: Keyvan will now tell you more about the financials, and how we are working hard to garner working capital needed to fund those opportunities. Keyvan.

Kavon Semeni: Kavon. Thank you, Kavon. In my comments today, I will discuss the financial highlights of our 3rd fiscal quarter ending, June 30th and provide our outlook for the 4th fiscal quarter. Unless otherwise stated the numbers, I will discuss our non-gap. Before we dive into our financial results, I would like to highlight the exciting development, reference by Kavon.

Kavon.

Keyvan Samini: Thank you, Fabian. In my comments today, I will discuss the financial highlights of our 3rd fiscal quarter, ending June 30th, and provide our outlook for the 4th fiscal quarter. Unless otherwise stated the numbers, I will discuss our non-gap. Before we dive into our financial results, I would like to highlight the exciting development, reference by Fabian. As we disclose yesterday, Mobix Labs has entered into an agreement to acquire a J-Mark, a strategic move that will significantly enhance our sales strategy and bolster our revenue, particularly in the high demand military aerospace and defense sectors. J-Mark's expertise will increase revenue and our growth margins, positioning us for continued success in the quarters ahead. On the closing of the J-Mark transaction, Mobix Labs will have completed it's public listing, on NASDAQ, and close 3 accretive acquisitions, all in the span of 9 months, proving the team's ability to increase revenue and margin by executing on it's mission to grow through strategic acquisitions. Moving on to our financial results. During the 3rd quarter of 2024, we achieved revenues of $2.1 million dollars, which exceeded the midpoint of our guidance range. This represents a strong sequential increase of 80%, compared to the prior quarter. Adjusted gross margin was up to 660 basis points, sequentially to 40.3% in large part to favorable product mix and pricing, as well as operational efficiencies. Total adjusted loss from operations for the 3rd quarter was $4.1 million, mirroring the, prior 2 quarters.

Keyvan Samini: Before we dive into our financial results, I would like to highlight the exciting development, reference by Fabian. As we disclose yesterday, Mobix Labs has entered into an agreement to acquire a J-Mark, a strategic move that will significantly enhance our sales strategy and bolster our revenue, particularly in the high demand military aerospace and defense sectors.

Kavon Semeni: As we disclose yesterday, Mobix Labs has entered into an agreement to acquire a J-Mark, a strategic move that will significantly enhance our sales strategy and bolster our revenue, particularly in the high demand military aerospace and defense sectors. J-Mark's expertise will increase revenue and our growth margins, positioning us for continued success in the quarters ahead. On the closing of the J-Mark transaction, Mobix Labs will have completed its public listing, on NASDAQ and close 3 accretive acquisitions all in the span of 9 months, proving the team's ability to increase revenue and margin by executing on its mission to grow through strategic

Keyvan Samini: J-Mark's expertise will increase revenue and our growth margins, positioning us for continued success in the quarters ahead. On the closing of the J-Mark transaction, Mobix Labs will have completed it's public listing, on NASDAQ, and close 3 accretive acquisitions, all in the span of 9 months, proving the team's ability to increase revenue and margin by executing on it's mission to grow through strategic acquisitions. Moving on to our financial results. During the 3rd quarter of 2024, we achieved revenues of $2.1 million dollars, which exceeded the midpoint of our guidance range. This represents a strong sequential increase of 80%, compared to the prior quarter. Adjusted gross margin was up to 660 basis points, sequentially to 40.3% in large part to favorable product mix and pricing, as well as operational efficiencies. Total adjusted loss from operations for the 3rd quarter was $4.1 million, mirroring the, prior 2 quarters.

Keyvan Samini: Adjusted gross margin was up to 660 basis points, sequentially to 40.3% in large part to favorable product mix and pricing, as well as operational efficiencies. Total adjusted loss from operations for the 3rd quarter was $4.1 million dollars, mirroring the prior 2 quarters. Looking at our balance sheet, we ended the quarter with $205,000 dollars in cash, compared to $3 million dollars at the end of our prior quarter. In late July, we received an investment of $4 million dollars, the terms of this new financing, included the issuance of warrants which could deliver up to an additional $8 million dollars in cash to Mobix Labs over the next 5 years. We are pursuing additional financing to fuel our acquisition strategy, and to provide working capital, to fulfill our strong customer demand. For the 4th fiscal quarter of 2024, we are reaffirming our prior guidance and forecast, consolidated revenues between $2.6 million and $3.2 million dollars. In the long term, we are committed to achieving a 60% adjusted gross margin and a 30% adjusted, operating margin. In addition to the expanding gross margin, the business will scale and we plan to ramp our R&D and SG&A expenses more slowly than the build-in revenue. In summary, I am pleased with the June quarter results, and our successful closing of the, RaGE Systems acquisition which is making an immediate contribution to building Mobix Labs and increasing profit. Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent proof points we are on the path to our scalable growth plan. As the operator prepares us for Q&A, I would like to mention that we look forward to seeing some of you in September at the upcoming HC Wainwright Conference in New York. Operator, we are now ready to take questions.

Kavon Semeni: acquisitions, moving on to our financial results. During the 3rd quarter of 2024, we achieved revenues of $2.1 million, which exceeded the, midpoint of our guidance range. This represents a strong sequential increase of 80% compared to the prior quarter. Adjusted gross margin was up to 660 basis points, sequentially to 40.3% in large part to, favorable product mix and pricing, as well as operational efficiencies. Total adjusted loss from operations for the 3rd quarter was $4.1 million, mirroring the, prior 2 quarters.

Kavon Semeni: Looking at our balance sheet, we ended the quarter with $205,000 in cash compared to $3 million at the end of our prior quarter. In late July, we received an investment of $4 million. The terms of this new financing, included the issuance of warrants which could deliver up to an additional $8 million in cash to Mobix Labs over the next 5 years. We are pursuing additional financing to fuel our acquisition strategy and to provide, working capital to fulfill our strong customer demand.

Keyvan Samini: Looking at our balance sheet, we ended the quarter with $205,000 dollars in cash, compared to $3 million dollars at the end of our prior quarter. In late July, we received an investment of $4 million dollars, the terms of this new financing, included the issuance of warrants which could deliver up to an additional $8 million dollars in cash to Mobix Labs over the next 5 years.

Keyvan Samini: We are pursuing additional financing to fuel our acquisition strategy, and to provide working capital, to fulfill our strong customer demand. For the 4th fiscal quarter of 2024, we are reaffirming our prior guidance and forecast, consolidated revenues between $2.6 million and $3.2 million dollars. In the long term, we are committed to achieving a 60% adjusted gross margin and a 30% adjusted, operating margin. In addition to the expanding gross margin, the business will scale and we plan to ramp our R&D and SG&A expenses more slowly than the build-in revenue. In summary, I am pleased with the June quarter results, and our successful closing of the, RaGE Systems acquisition which is making an immediate contribution to building Mobix Labs and increasing profit. Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent proof points we are on the path to our scalable growth plan. As the operator prepares us for Q&A, I would like to mention that we look forward to seeing some of you in September at the upcoming HC Wainwright Conference in New York. Operator, we are now ready to take questions.

Kavon Semeni: For the 4th fiscal quarter of 2024, we are reaffirming our prior guidance and forecast, consolidated revenues between $2.6 million and $3.2 million. In the long term, we are committed to achieving a 60% adjusted gross margin and a 30% adjusted, operating margin. In addition to the expanding gross margin, the business will scale and we plan to ramp our R&D and SGNA expenses more slowly than the build-in revenue. In summary, I am pleased with the June quarter results and our successful closing of the, Rage Systems acquisition which is making an immediate contribution to building Mobix Labs and increasing profit. Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent proof points we are on the path to our scalable growth plan.

Operator: As the operator prepares us for Q&A, I would like to mention that we look forward to seeing some of you in September at the upcoming HC Wainwright Conference in New York.

Keyvan Samini: In addition to the expanding gross margin, the business will scale and we plan to ramp our R&D and SG&A expenses more slowly than the build-in revenue.

Keyvan Samini: In summary, I am pleased with the June quarter results, and our successful closing of the, RaGE Systems acquisition which is making an immediate contribution to building Mobix Labs and increasing profit. Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent proof points we are on the path to our scalable growth plan. As the operator prepares us for Q&A, I would like to mention that we look forward to seeing some of you in September at the upcoming HC Wainwright Conference in New York. Operator, we are now ready to take questions.

Keyvan Samini: As the operator prepares us for Q&A, I would like to mention that we look forward to seeing some of you in September at the upcoming HC Wainwright Conference in New York. Operator, we are now ready to take questions.

Operator: Operator, we are now ready to take questions. Certainly, and as a reminder, if you do have a question at this time, please press star

Operator, we are now ready to take questions.

Operator: Certainly, and as a reminder, if you do have a question at this time, please press star 1-1 on your telephone. And our first question comes from the line of Craig Ellis from B. Riley Securities. Your question, please.

Craig Ellis: 1-1 on your telephone, and our first question comes from the line of Craig Ellis from B. Riley Securities. Your question, please.

Craig Ellis: Yeah, thanks for taking the question, and congratulations on the nice growth in the quarter. Fabian, I'm going to start off with a higher-level question, and it relates to something we heard, from one of the bigger analog companies out there that reported this morning. They talked about increased confidence that an order correction in the industrial and markets for which they're a very broad-based supplier, including defense, is in the rear view mirror. Can you just comment on the tenor of interaction you're hearing with your conversations, with your customers, CEOs, and CFOs, how are they feeling about order intensity? And what's the tone of business out there today? Sure. Well, hi, Craig.

Fabian Battaglia: Sure. Well, hi, Craig, thanks for the question. I would answer that with the way we measure that activity from a CRM perspective around our pipelines. So like we've mentioned earlier, we're seeing growth, we're seeing nice increases in that area, and we anticipate that to continue in the quarters to come, so, and we're seeing it across all sectors that we're involved in. So we're very pleased with that activity, and I would agree with the reference that you made, as far as seeing increases in that area. We see it as well.

Fabian Bataglia: Thanks for the question. I would answer that with the way we measure that activity from a CRM perspective or our pipeline. So like we've mentioned earlier, we're seeing growth, we're seeing nice increases in that area, and we anticipate that to continue in the quarters to come. And we're seeing it across all sectors that we're involved in. So we're very pleased with that activity, and I would agree with the reference that you, made as far as seeing increases in that area. We see it as well.

Craig Ellis: All right, that's helpful, and then the second question, is more of a strategic question before, I go on to one for Keyvan. So strategically, as we look at the companies continued inorganic growth, you said there's, a nice M&A panel that you see. We've had acquisitions recently and proposed now in two of your four strategic segments. Given that, how should we think about where you would be more interested in M&A activity, from here?

Fabian Battaglia: Well, first, let me say that, like our product opportunity pipeline, the pipeline in the M&A side is equally robust. We will continue to look in areas where we are involved in today, and we'll look at areas outside of the markets that we're serving today. But primarily, aerospace and defense, it is our primary focus right now, and we're seeing plenty of opportunities for M&A in that space. That's great. Thank you, and then Kevon, before I go back into the queue, real nice guide for third quarter revenue up. I think it's 38% sequentially.

Craig Ellis: That's great. Thank you, and then Keyvan, before I go back into the queue. Real nice guide for third quarter revenue up, I think it's 38% sequentially. Can you just talk about some of the things that you'd expect to continue to do the sequential growth? Thank you. Yes, so we expect to see additional growth in our military product lines, and we also expect to see additional growth in our filter connector product lines. And as Fabian indicated, we're pursuing a pretty strong M&A strategy, and so it's possible that you would see some additional revenue coming in from some strategic relationships.

Kavon Semeni: Can you just talk about some of the things that you'd expect to continue to do the sequential growth? Thank you. Yes, so we expect to see additional growth in our military product lines, and we also expect to see additional growth in our filter connector product lines. And as Fabian indicated, we're pursuing a pretty strong M&A strategy, and so it's possible that you would see some additional revenue coming in from some strategic relationships.

Keyvan Samini: Yes, so we expect to see additional growth in our military product lines, and we also expect to see additional growth in our filter connector product lines. And as Fabian indicated, we're pursuing a pretty strong M&A strategy, and so it's possible that you would see some additional revenue coming in from some strategic relationships.

Kavon Semeni: So are you saying that there is some benefit from as yet an announced M&E and the guys? No, there's nothing in the guidance as it relates to that M&A. So anything that would come in that might come in with any kind of strategic relationship would be additive.

Craig Ellis: So are you saying that there is some benefit from as yet an unannounced M&E and [inaudible] guides?

No, there's nothing in the guidance, as it relates to that M&A. So anything that would come in, that might come in, with any kind of strategic relationship would be additive.

Unnamed Speaker: Got it. Thanks guys. Good luck. Thank you. Thank you. Thank you.

Got it. Thanks guys. Good luck.

Multiple: Thank you. Thank you. Thank you.

Kevin Cassidy: And our next question comes from the line of Kevin Cassidy from Rosenblatt Securities. Your question please. Yeah, thanks for letting me ask a question and congratulations on the progress on your strategy. My questions around Jay Mark. Are these fully custom connectors or are they catalog connectors? Hi, Kevin.

Operator: And our next question comes from the line of Kevin Cassidy from Rosenblatt Securities. Your question please.

Kevin Cassidy: Yeah, thanks for letting me ask a question and congratulations on the progress on your strategy. My question is around J-Mark. Are these fully custom connectors or are they catalog connectors? Hi, Kevin.

Fabian Battaglia: Hi, Kevin, thanks for the question. It's a combination of both custom and standard.

Fabian Bataglia: Thanks for the question. It's a combination of both custom and standard. Okay. I see. And how much does it add to your sales force? Or is it more of a rep network that you're at? Well, actually both.

Thanks for the question. It's a combination of both custom and standard.

Okay. I see. And how much does it add to your sales force? Or is it more of a rep network that you're at? Well, actually both.

Kevin Cassidy: Okay. I see. And how much does it add to your sales force? Or is it more of a rep network that you're at?

Fabian Battaglia: Well, actually both. So we'll be adding sales resources when we close that acquisition, as well as, you know, go to market, the go to market in a similar way that we do. Yeah, there is an existing relationship and that's what makes this acquisition very strategic for us. So they were very familiar with them. They we have been working the EMI group has been working with Jay Mark. And so we're really excited about what the opportunities are going to be presented to us going forward. Okay, great. Congratulations again. Thank you.

Fabian Battaglia: Well, actually both. So we'll be adding sales resources when we close that acquisition, as well as, you know, go to market, the go to market in a similar way that we do.

Fabian Bataglia: So we'll be adding sales resources when we close that acquisition as well as, you know, go to market the go to market in a similar way that we do. Yeah, there is an existing relationship and that's what makes this acquisition very strategic for us. So they were very familiar with them. They we have been working the EMI group has been working with Jay Mark. And so we're really excited about what the opportunities are going to be presented to us going forward. Okay, great. Congratulations again. Thank you.

Kevin Cassidy: Yeah and I should also add, there is an existing relationship and that's what makes this acquisition very strategic for us. So they were very familiar with them, they we have been working, the EMI group has been working with J-Mark, and so we're really excited about what the opportunities are going to be presented to us going forward. Okay, great. Congratulations again. Thank you.

Keyvan Samini: Yeah and I should also add, there is an existing relationship and that's what makes this acquisition very strategic for us. So they were very familiar with them, they we have been working, the EMI group has been working with J-Mark, and so we're really excited about what the opportunities are going to be presented to us going forward.

Kevin Cassidy: Okay, great. Congratulations again. Thank you.

Kevin Cassidy: Okay, great. Congratulations again.

Fabian Battaglia: Thank you.

Operator: Thank you. And this does conclude the question and answer session as well as today's program. Thank you ladies and gentlemen for your participation. You may now disconnect. Good day.

Unnamed Speaker: That was easy.

Speaker Change: they for standing by and welcome to the moi'slabs thirdquarter two thousand and twenty four earnings conference call at this time all participants our allist and only mode after this speaker's presentation there will be a question and answer session to ask a question during this session you'll need to press star one one on your telephone

Operator: call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session.

Operator: To ask a question during this session you'll need to press star 1 1 on your telephone.

Operator: If your question has been answered and you'd like to remove yourself from the queue simply press star 1 1 again.

Operator: As a reminder today's program is being

sho dellois: if your question has been answered and you'd like to remove yourself from the queue simply pressed arear one one again as a reigning to here today's program is being recorded and now i'd like to introduce your host for today's program sho dellois of the blue shirt group please go ahead sir

Operator: recorded and now I'd like to introduce your host for today's program Shio

Operator: Delaloy of the Blue Shirt Group.

sho dellois: thank you good afternoon everyone i'm shoted in lawy investor relations for mobile labs and id like to thank you for joining us today as we report mo third fiscal arter two thousand and twenty four financial results for the period end in june thirtieth

Shio Delaloy: Please go ahead sir.

Shio Delaloy: Thank you.

Shio Delaloy: Good afternoon everyone.

Speaker Change: with the call today our pfvian btaglia move achief executive officer and save ar presidentents's chief financial officer

Shio Delaloy: I'm Shio Delaloy Investor Relations for Mobix Labs and I'd like to thank you for joining us today as we report Mobix's third fiscal quarter 2024 financial results for the period ending June 30th.

Speaker Change: this call sim asultaneously being webcast on the investor relation section of our website atmobx laps dot com

Shio Delaloy: With me on the call today are Fabian Battaglia, Mobix's Chief Executive Officer, and Savon Samini, President's, Chief Financial Officer. This call is simultaneously being webcast on the Investor Relations section of our website at MobixLabs.com.

Shio Delaloy: Before we get, started I would like to remind everyone of our safe harbor policy.

Speaker Change: before we get started i'would like to remind everyone of our safe harbor policy commments made during this conference call and webcast contained forward-looking statements within the meaning of the private securities litigation reform act of one thousandnine hundred ninety five and our subject to risks and uncertainties

Shio Delaloy: Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events including financial projections, future market conditions, or future enhancements or development is a forward-looking statement.

Speaker Change: any statement are refirsters expectations projections or other characterizations of future events including financial projections future market conditions or future enhancements or development is a forward-looking statement

Shio Delaloy: Mobix's actual future results could differ materially from those expressed in such forward-looking statements for any reason including those listed in our SEC filings. Mobix assumes no obligation to update any such forward-looking statements except as required by law.

Speaker Change: mo's actual future results could differ materially from those expressed in suchse forward-looking statements for any reason including those listed in our sec filings

Speaker Change: movingx assumes no obligation to update any such forward-looking statements except as required by law

Shio Delaloy: For greater detail about risks and uncertainties please see our SEC filings including our Form 10-Q for the quarter ended June 30, 2024, and the section entitled Risk Factors in the Form S-1 filed on August 12, 2024.

Speaker Change: for greater detail about risk and uncertainties please see our sec filings including our form ten -q for the quarter ended june thirty two thousand and twenty four and the section entitled risk factors in the formates one od on august twelve two thousand and twenty four

Shio Delaloy: In addition, this call includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our third quarter earnings release posted on the

Speaker Change: in addition this call includes non-gaap financial measures reconciliations of these non-gaap financial measures with the most directly comparable gaap measures are included in our third quarter earnings release posted on investor relation section of our website

Shio Delaloy: Investor Relations section of our website.

Shio Delaloy: With that, I will turn the call

Speaker Change: with that i would turn the call over to saabian bataga don please go ahead

Speaker Change: thank you shy

Speaker Change: today i'll review the june quarter and share with you highlights of our successful acquisition strategy to build mobx' labs into an increasingly diversified leaning edge tech pioneer

Speaker Change: we are onunleashing the performance of next-generation product lines like emi interconnect solutions wireless systems active optical cables in five gic solutions that will leverage and enhance our fiveg portfolio for future growth

Shio Delaloy: over to Fabian Battaglia.

Fabian Battaglia: Fabian, please go ahead.

Speaker Change: k on sini our president cfo will follow up with financial comments

Fabian Battaglia: Thank you, Shio.

Speaker Change: in the june quarter i'm pleased to announce sequential revenue growth of eighty percent to two point one million

Speaker Change: we are also happy to announce we received four million in july as part of a private placement and we look forward to additional financing to fuel our acquisition strategy and provide for our working capital needs

Speaker Change: increasing demand and exciting request for proposals proved that customers with high reliability needs want to do business with mobvx labs and our expanded offering

Speaker Change: we have long-term relationships with our manufacturers reps and distributors and they are happy to offer additional products to their customers

Fabian Battaglia: Today I'll review the June quarter and share with you highlights of our successful acquisition strategy to build Mobix Labs into an increasingly diversified leading-edge tech pioneer. We are unleashing the performance of next generation product lines like EMI interconnect solutions, wireless systems, active optical cables, and 5G IC solutions that will leverage and enhance

Speaker Change: a key element of our strategy is expansion through synergistic product acquisitions and diverse industry sectors which will broaden our customer base and allow our customers to reduce the number of suppliers

Fabian Battaglia: our 5G portfolio for future growth.

Fabian Battaglia: Kavan Samini, our President and CFO, will follow up with financial comments.

Fabian Battaglia: In the June quarter, I'm pleased to announce sequential revenue growth of 80% to $2.1 million.

Fabian Battaglia: We are also happy to announce we received $4 million in July as part of a private placement and we look forward to additional financing to fuel our acquisition strategy and provide for our working capital needs.

Speaker Change: as part of our ongoing strategy to enhance our market position and deliver sustainable growth i am pleased to announce we have entered into an agreement to acquire jr connectors inkc

Speaker Change: this acquisition strengthens our presence in a military aerospace and defense sectors

Speaker Change: by integrating jmark' proven expertise in emi interconnect solutions we will be expanding our customer base and product offerings to better meet the stringent requirements in aerospace military and medical markets

Speaker Change: this acquisition will drive revenue growth improve our gross margins and set the states for long-term value creation for our customers and stakeholders

Speaker Change: the integration of jmark expertise and emi interconnect solutions will significantly enhance mobvx slaps product portfolio enabling us to meet the most demanding filtering grounding and transient suppression requirements and aerospace military and medical sectors

Speaker Change: we look forward to capitalizing on the acquisition of jmark as we continue to execute our growth strategy

Speaker Change: additionally i am pleased to report the successful close and significant june quarter revenue contribution of rate systems in may

Speaker Change: now mobix labs and rage systems together provide breakthrough joint designed and manufacturing services for the development of rf technologies for a variety of customers in the field of five g millimeter wave communications rate ar sensors and imaging sensors

Speaker Change: one new example of product innovation from this acquisition is our new smart-edged device product line

Speaker Change: in early august we announced our participation at the two thousand and twenty-four lightle supplier innovation at technology symposium

Speaker Change: at the conference we showcased this new product line which is a software manageable autonomous radio transceiver and an innovative appliance deployed at the network edge

Speaker Change: it is programmable for a variety of applications such as rf spectrum analysis rf broadcast node microoran areu two three and four g transition base stations and many other custom applications

Speaker Change: smart edge is a good example of next-generation product developed by rage wireless systems team and i'm proud to say that we have retained all of their staff

Speaker Change: they are excited the joint mobics's labs team as they continue to work on next-generation technology while leveraging our expanding customer and product footprint

Speaker Change: we are continuing to run fast as we consider other future transactions

Speaker Change: our robust expanding na pipeline of potential targets is expected to continue driving diversification of our offerings and adding scale

Speaker Change: to this pipeline of opportunities we are applying a disciplined approachesas we focus on synergistic mina opportunities and diverse industries to further expand our customer base

Speaker Change: our focus is on strategic tech additions cash generation and accretion within two quarters

Speaker Change: we are serving very large and rapidly growing markets

Speaker Change: on our investor relations website you can view a slide with our projected sam and growth by markets

Speaker Change: in aggregate the markets we are addressing are projected to have a fifty percent cagger growing to nearly four billion by two thousand and twenty eight

Speaker Change: i'd like to highlight four of our solution groups today emi interconnect solutions wireless system solutions from rage systems active optical cables and ic solutions for our five g portfolio

Speaker Change: revenue for our ei interconnect solutions was record in the june quarter the east filtering products from our previous emi acquisitions are widely used in an industry with a high cost of failure

Speaker Change: mission critical customers know they can rely on mobic slabs connectors for predictable performance

Speaker Change: among our customers are fortune five hundred companies such as honeywell general dynamics g health care locky martin ba systems northrod german ron and goldstream

Speaker Change: a good testimonial to how customers rely on mob'slabs is our recent announcement that we are now delivering products for the navy's standard missile six program

Speaker Change: our products met the navy's rigorous standards to withstand hi shock vibration and extreme temperatures

Speaker Change: we look forward to more orders from this important u s defense program

Speaker Change: also we have other large bids we are working on right now including with a global defense aerospace and security company and another bid for an international aviation service company with a broad portfolio of aerospace and defense systems and components

Speaker Change: the amit team has been running fast to innovate and this includes a recently announced filtered arink connectors which are setting a new standard in price performance and customization

Speaker Change: the new connectors are designed to deliver exceptional performance and reliability featuring advanced emi filtering options to ensure optimal signal integrity and minimal resonidents

Speaker Change: we also introduced a new family of filter desubconnectors designed to eliminate unwanted electromagnetic interference and defense aerospace medical and commercial applications

Speaker Change: these connectors feature robust construction and superior emi filtering capabilities ensuring optimal performance and reliability in the most demanding environments

Speaker Change: these emi interconnect solution products and our exceptional performance and contributions to the supply chain were recognized in may when we were honor to receive a goldtier supplier award from our long-term partner ba systems

Speaker Change: also as i mentioned earlier we are very excited to have the new team from rid systems on board this quarter as our wireless system solutions product group

Speaker Change: these products are specialized for five g communications millimeter wave imaging and software defined radios

Speaker Change: in addition to our participation at the lighto suppliers symposium and the new smart edge device radio transceiver we signed a strategic partnership with talking heads wireless to develop and produce a new generation of cost effective energy efficient five g-base stations

Speaker Change: these five g radio solutions use ai technology to optimize power energy consumption while mobics labs broad portfolio of products including ics and antenas deliver significant advantage and performance efficiency cost and size for five g base stations

Speaker Change: our mission is to help develop solutions that significantly reduced the power consumption of base stations cutting the energy cost of five g towers in half

Speaker Change: we are in the early stages of growing the wireless system solutions business

Speaker Change: our combined system level knowledge and icsee design capabilities gives us a unique advantage in partnering with our customers

Speaker Change: the team looks forward to telling you more in the coming quarters about our growing revenue our expanding pipeline of opportunities and exciting developments and product wins with key customers in the aerospace and defense wireless industrial and security marketplace

Speaker Change: the rage system team is also now augmenting mobic labs passwork for our product group ic solutions for the five g millimeter wave market

Speaker Change: while early days for five g we are excited about the size of this emerging market opportunity and using our fiveg developments for our wireless systems products and solutions for future growth

Speaker Change: active optical cable solutions is a more mature part of mobile labs it provides connectivity for high bandwidthand low latency connections such as professional audio video systems

Speaker Change: hp poly products are a good example of a customer we have been serving for several years

Speaker Change: these four innovative product lines that i've outlined for you provide compelling solutions in our leadershipps team solid track record is another key element of our scalable strategy to become the supplier of choice for next generation connectivity solutions

Speaker Change: there's an exciting time to be at mobic slabs given our quickly expanding pipeline of opportunities especially in high reliability markets such as emi interconnect solutions and wireless system solutions

Fabian Battaglia: Increasing demand and exciting request proposals prove that customers with high reliability needs want to do business with Mobix Labs and our expanded offering.

Fabian Battaglia: We have long-term relationships with our manufacturers, reps, and distributors, and they are happy to offer additional products to their customers.

Speaker Change: request for proposals are at an all time high

Speaker Change: in summary our goal is to unlease the performance of next generation emi interconnect solutions wireless system solutions and leading edge five g millimeter wave

Speaker Change: i am happy to say customer demand for our solutions is strong and our customer pipeline is growing

Speaker Change: as an experienced team we knew when we found in mobic's labs that it wouldn't be easy but i can tell you that we have demand and an incredible team of people ready to execute and is a very exciting chapter of growth for this industry and for mobile's labs

Kven: kvon will'll now tell you more about the financials and how we are working hard to garner working capital needed to fund those opportunities kven

Kven: thank you fabian in my comments today i will discuss the financial highlights of our third fiscal quarter ending fuune thirtieth and provide our outlook for the fourth fiscal quarter unless otherwise state of the numbers i will discuss our non-gaap

Speaker Change: before we ddiive into our financial results i would like to highlight the exciting development reference by favian

Fabian Battaglia: A key element of our strategy is expansion through synergistic product acquisitions in diverse industry sectors, which will broaden our customer base and allow our customers to reduce the number of suppliers.

Speaker Change: as we discloseed yesterday mob' slabs has entered into an agreement to acqured jmark a strategic momove that will significantly enhance our sales strategy and bolster our revenue particularly in the high demand military aerospace and defense sectors

Fabian Battaglia: As part of our ongoing strategy to enhance our market position and deliver sustainable growth, I am pleased to announce we have entered into an agreement to acquire JMAR Connectors, Inc. This acquisition strengthens our presence in the military, aerospace, and defense sectors. By integrating JMAR's proven expertise in EMI Interconnect Solutions, we will be expanding our customer base and product, offerings to better meet the stringent requirements in aerospace, military, and medical markets. This acquisition will drive revenue growth, improve our gross margins, and set the stage for a long-term value creation for our customers and stakeholders. The integration of JMAR's expertise in EMI Interconnect Solutions will significantly enhance Mobix Labs product, portfolio, enabling us to meet the most demanding filtering, grounding, and transient suppression requirements in aerospace, military, and medical sectors.

Fabian Battaglia: We look forward to capitalizing on the acquisition of JMAR as we continue to, execute our growth strategy.

Speaker Change: gmemark's expertise will increase revenue and our gross margins positioning us for continued success in the quarters ahead

Speaker Change: on the closing of the jmark transaction mobile labs will have completed its' public listing on nasdaq and close three accretive acquisitions all in the span of nine months

Speaker Change: proving the team's ability to increase revenue and margin by executing on its mission to grow through strategic acquisitions

Speaker Change: moving on to our financial results

Speaker Change: during the third quarter of two thousand and twenty four we achieved revenues of two point one million dollars which exceed the midpoint of our guidance range this represents a strong sequential increase of eighty percent compared to the prior quarter

Speaker Change: adjusted gross margin was up six hundred sixty basis points sequentially to forty point three percent in large part to favorable product mix and pricing as well as operational efficiencies

Speaker Change: total adjusted loss from operations for the third quarter was four point one million dollars mirring the prior two quarters

Speaker Change: looking at our balance sheet we ended the quarter with two hundred and five thousand dollars and cash compared to three million dollars at the end of our prior quarter

Speaker Change: in late july we received an investment of four million dollars the terms of this new financing included the issuance of warrants which could deliver up to an additional eight million dollars in cash to mobile slabs over the next five years

Speaker Change: we are pursuing additional financing to fuel our acquisition strategy and to provide working capital to fulfill our strong customer demand

Speaker Change: for the fourth fiscal quarter of two thousand and twenty four we are reaffirming our prior guidance in forecast consolidated to revenues between two point six million and three point two million dollars

Speaker Change: in the long term we are committed to achieving a sixty percent adjusted ghoross margin and a thirty percent adjusted operating margin

Speaker Change: in addition to the expanding gross margin the business will scale and we plan to ramp our rnd and sdna expenses more slowly than the building revenue

Fabian Battaglia: Additionally, I am pleased to report the successful close and significant June quarter revenue contribution of Rage Systems in May. Now, Mobix Labs and Rage Systems together provide breakthrough joint, design and manufacturing services for the development of RF technologies for a variety of customers in the field of 5G millimeter-wave communications, radar sensors, and imaging sensors.

Fabian Battaglia: One new example of product innovation from this acquisition is our new SmartEdge device product line.

Speaker Change: in summaryi am pleased with the june quarter results in our successful closing of the rage systems acquisition which is making an immediate contribution to building mbage slabs and increasing profit

Speaker Change: our robust pipeline of ma opportunities and quickly increasing customer demand our excellent proofpoints we are on the path to our scalable growth plan

Fabian Battaglia: In early August, we announced our participation at the 2024 Leidos Supplier Innovation and Technology Symposium. At the conference, we showcased this new product line, which, is a software-manageable autonomous radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast node, micro O-RAN, RU2, 3, and 4G transition base stations, and many other custom applications.

Fabian Battaglia: SmartEdge is a good example of next-generation product developed by, Rage Wireless Systems team, and I'm proud to say that we have retained all of their staff.

Fabian Battaglia: They are excited to join Mobix Labs team as they continue to work on next-generation technology while leveraging our expanding customer and product footprint.

Fabian Battaglia: We are continuing to run fast as we consider other future transactions.

Fabian Battaglia: Our robust expanding M&A pipeline of potential targets is expected to continue driving diversification of our offerings and adding scale.

Fabian Battaglia: Our focus is on strategic tech additions, cash generation, and accretion within two quarters.

Fabian Battaglia: To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic M&A opportunities in diverse industries to further expand our customer base.

Speaker Change: as the operator prepares us for q a i would like to mention that we look forward to seeing some of you in september at the upcoming hc wneright conference in new york operator we are now ready to take questions

Fabian Battaglia: We are serving very large and rapidly growing markets. On our investor relations website, you can view a slide with our projected SAM and growth by markets.

Fabian Battaglia: In aggregate, the markets we are addressing are projected to have a 50% CAGR growing to nearly $4 billion by 2028.

Fabian Battaglia: I'd like to highlight four of our solution groups today.

Fabian Battaglia: EMI interconnect solutions, wireless system solutions from Rage Systems, active optical cables, and IC solutions for our, 5G portfolio.

Fabian Battaglia: Revenue for our EMI interconnect solutions was a record in the June quarter. These filtering products from our previous EMI acquisitions are widely used in an industry, with a high cost of failure.

Fabian Battaglia: Mission-critical customers know they can rely on Mobix Labs connectors for predictable performance. Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon, and Gulfstream.

Fabian Battaglia: A good testimonial to how customers rely on Mobix Labs, is our recent announcement that we are now delivering products for the Navy's Standard Missile 6 program. Our products met the Navy's rigorous standards to withstand, high shock, vibration, and extreme temperatures.

Speaker Change: certainly and that has a reminder if you do have a question at this time please press star one one on your telephone and our first question comes from line of craig alis from b riley securities your question please

Craig Alis: yeah thanks for taking the question and congratulations on the nice growth in the quarter baby and i'm going to start off with higher level question

Speaker Change: and it relates to something we heard from one of the bigger analog companies out there that reported this morning may talked about increased confidence that in order correction in the industrial end markets for which there are a very broad-based supplier including

Fabian Battaglia: We look forward to more orders from this important U.S. defense program.

Fabian Battaglia: Also, we have other large bids we are working on right now, including with a global defense, aerospace, and security company, and another bid for an international aviation service company with a broad portfolio of aerospace and defense systems and components.

Fabian Battaglia: The EMI team has been running fast to innovate, and this includes our recently announced filtered A-Rank connectors, which are setting a new standard in price, performance, and customization. The new connectors are designed to deliver exceptional performance and reliability, featuring advanced EMI filtering options to ensure optimal signal integrity and minimal resonance.

Fabian Battaglia: We also introduced a new family of filtered D-sub connectors designed to eliminate unwanted electromagnetic interference in defense, aerospace, medical, and commercial applications. These connectors feature robust construction and superior EMI filtering capabilities, ensuring, optimal performance and reliability in the most demanding environments.

Fabian Battaglia: These EMI interconnect solution products and our exceptional performance and contributions to the supply chain were recognized in May when we were honored to receive the Gold Tier Supplier Award from our long-term partner BAE Systems.

Fabian Battaglia: Also, as I mentioned earlier, we are very excited to have the new team from RAID Systems on board this quarter as our wireless system solutions product group. These products are, specialized for 5G communications, millimeter wave imaging, and software-defined radios.

Fabian Battaglia: In addition to our participation at the Lighthouse Supplier Symposium and the, new SmartEdge device radio transceiver, we signed a strategic partnership with Talking Heads Wireless to develop and produce a new generation of cost, effective energy efficient 5G base stations.

Fabian Battaglia: These 5G radio solutions use AI technology to optimize power energy consumption while Mobix Labs broad portfolio of products including ICs and antennas deliver significant advantage in performance, efficiency, cost, and size for 5G base stations.

Fabian Battaglia: Our mission is to help develop solutions that significantly reduce the power consumption of base stations, cutting the energy cost of 5G towers in half.

Fabian Battaglia: We are in the early stages of growing the wireless system solutions business. Our combined system level knowledge and IC design capabilities gives us a unique advantage in partnering with our customers.

Fabian Battaglia: The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities, and exciting developments and product wins with key customers in the aerospace and defense, wireless, industrial, and security marketplace.

Fabian Battaglia: The RAGE system team is also now augmenting Mobix Labs past work for our product group IC solutions for the 5G millimeter wave market.

Fabian Battaglia: While it's early days for 5G, we are excited about the size of this emerging market opportunity and using our 5G developments for our wireless systems products and solutions for future growth.

Fabian Battaglia: Active optical cable solutions is a more mature part of Mobix Labs. It provides connectivity for high bandwidth and low latency connections such as professional audio video systems.

Speaker Change: defense is in the rear view mirror can you just comment onthe

Speaker Change: tenor of interaction you're hearing with your conversations with your custommer ce os and cffo how are they feeling about order intensity and what's the what's the on a business out there today

Fabian Battaglia: HP Poly products are a good example of a customer we have been serving for, several years.

Fabian Battaglia: These four innovative product lines that I've outlined for you provide compelling solutions and our leadership team solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions.

Fabian Battaglia: It is an exciting time to be at Mobix Labs given our quickly expanding pipeline of opportunities, especially in, high reliability markets such as EMI interconnect solutions and wireless system solutions.

Speaker Change: sure we' hide cra thanks for the question

Speaker Change: i would answer that with the way we measure that activity from a crm perspective our pipeline

Fabian Battaglia: Requests for proposals are at an all-time high.

Fabian Battaglia: In summary, our goal is to unleash the performance of next-generation EMI interconnect solutions, wireless system solutions, and leading-edge 5G millimeter wave.

so like we've mentioned earlier we're seeing growth we're seeing nice increases in that area and we anticipate that to continue in the quarters to come so and we're seeing it across all sectors that that we're involved in

Fabian Battaglia: I am happy to say customer demand for our solutions is strong and our customer pipeline is growing.

Fabian Battaglia: As an experienced team, we knew when we founded Mobix Labs that it wouldn't be easy, but I can tell you that we have demand and an incredible team of people ready to execute and is a very exciting chapter of growth for this industry and for Mobix Labs.

Speaker Change: so we're very pleased with that activity and i would agree with the reference that you made as far as seeing increases in that area so we see it as well

Fabian Battaglia: Kayvon will now tell you more about the financials and how we are working hard to garner working capital

Speaker Change: all right that's helpful and then the second question is more of a strategic question before i go on to one for came on so

Fabian Battaglia: needed to fund those opportunities.

Fabian Battaglia: Our robust expanding M&A pipeline of potential targets is expected to continue driving diversification of our offerings and adding scale.

Speaker Change: strategically is as we look at the companiess continued inorganic growth you said there's a nice emanate final that you see what we've had acquisitions recently and proposed now in two of your four strategic segments

Speaker Change: given that how should we think about where you would be more interested in immina activity from here

Fabian Battaglia: To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic M&A opportunities in diverse industries to further expand our customer base.

Fabian Battaglia: Our focus is on strategic tech additions, cash generation, and accretion within two quarters.

Fabian Battaglia: We are serving very large and rapidly growing markets. On our investor relations website, you can view a slide with our projected SAM and growth by markets.

Fabian Battaglia: In aggregate, the markets we are addressing are projected to have a 50% CAGR growing to nearly $4 billion by 2028.

Speaker Change: well well first let me let me say that like our product opportunity pipeline the pipeline in the m side is is equally robust

Fabian Battaglia: I'd like to highlight four of our solution groups today.

Fabian Battaglia: EMI interconnect solutions, wireless system solutions from Rage Systems, active optical cables, and IC solutions for our, 5G portfolio.

Speaker Change: we will continue to look in areas where we are involved in today

Speaker Change: and it we'll look at areas outside of the markets that we're serving today but primarily aerospace and defense is our primary focus right now and we're seeing plenty of opportunities for a in that space

Fabian Battaglia: Kayvon.

Speaker Change: that's great thank you and then came on before i go back into the q real nice guide for third quarter revenue up i think it's thirty eight percent sequentially can you just talk about some of the things that you had expect to continue to the sequential growth thank you

Kayvon Samini: Thank you, Fabian.

Kayvon Samini: In my comments today, I will discuss the financial highlights of our third fiscal quarter ending June 30th and provide our outlook for the fourth fiscal quarter. Unless otherwise stated, the numbers I will discuss are non-GAAP.

Kayvon Samini: Before we dive into our financial results, I would like to highlight the exciting development, referenced by Fabian. As we disclosed yesterday, Mobix Labs has entered into an agreement to acquire JMARC, a strategic move that will significantly enhance our sales strategy and bolster our revenue, particularly in the high-demand military, aerospace, and defense sectors.

Speaker Change: yes so we expect to see additional growth in our in our military product lines and we also expect to see additional growth in our

Fabian Battaglia: We look forward to more orders from this important U.S. defense program.

Fabian Battaglia: The RAGE system team is also now augmenting Mobix Labs past work for our product group IC solutions for the 5G millimeter wave market.

Speaker Change: builter connector product lines

pian: and as pian indicated we have we're pursuing a pretty strong immina strategy and so it' s know it's possible that you would see some additional revenue coming in from some strategic relationships

Fabian Battaglia: Our mission is to help develop solutions that significantly reduce the power consumption of base stations, cutting the energy cost of 5G towers in half.

Fabian Battaglia: HP Poly products are a good example of a customer we have been serving for, several years.

Fabian Battaglia: Requests for proposals are at an all-time high.

Fabian Battaglia: In summary, our goal is to unleash the performance of next-generation EMI interconnect solutions, wireless system solutions, and leading-edge 5G millimeter wave.

Fabian Battaglia: I am happy to say customer demand for our solutions is strong and our customer pipeline is growing.

Speaker Change: so are you saying that there is some benefit from az announced any in the guy

Fabian Battaglia: Kayvon will now tell you

Speaker Change: no there's nothing in the guidance as it relates to that emina so anything that would come in that might come in with any kind of strategic relationship would be additive

Kayvon Samini: more about the financials and how we are working hard to garner working capital

Kayvon Samini: needed to fund those opportunities.

Cabet: cabet thanks guys' good lck thank you dover

Speaker Change: thank you

Speaker Change: and our next question comes from the line of kevin cacy from rosenen blod securities your question please

kevin cacy: yes thanks for let me ask a question and gratulations on the progress on your strategy my questions around j mark you are these fully custom connectors or are they catalogue connectctors

Kayvon Samini: JMARC's expertise will increase revenue and our gross margins, positioning us for continued, success in the quarters ahead.

Kayvon Samini: On the closing of the JMARC transaction, Mobix Labs will have completed its public listing, on NASDAQ and closed three accretive acquisitions, all in the span of nine months, proving the team's ability to increase revenue and margin by executing on its mission to grow through strategic acquisitions.

Kayvon Samini: Moving on to our financial results, during the third quarter of 2024, we achieved revenues, of $2.1 million, which exceeded the midpoint of our guidance range. This represents a strong sequential increase of 80% compared to the prior quarter. Adjusted gross margin was up 660 basis points sequentially to 40.3%, in large part to favorable, product mix and pricing, as well as operational efficiencies.

Kayvon Samini: Total adjusted loss from operations for the third quarter was $4.1 million, mirroring, the prior two quarters.

Kayvon Samini: Kayvon.

Kayvon Samini: Looking at our balance sheet, we ended the quarter with $205,000 in cash compared to, $3 million at the end of our prior quarter. In late July, we received an investment of $4 million. The terms of this new financing included the issuance of warrants, which could deliver, up to an additional $8 million in cash to Mobix Labs over the next five years.

Kayvon Samini: Thank you, Fabian.

Kayvon Samini: We are pursuing additional financing to fuel our acquisition strategy and to provide working, capital to fulfill our strong customer demand.

Kayvon Samini: For the fourth fiscal quarter of 2024, we are reaffirming our prior guidance and forecast, consolidated revenues of between $2.6 million and $3.2 million. In the long term, we are committed to achieving a 60% adjusted gross margin and a 30% adjusted, operating margin. In addition to the expanding gross margin, the business will scale, and we plan to ramp, our R&D and SG&A expenses more slowly than the build-in revenue.

Speaker Change: hi kevin thanks for the question itifs a combination of both a custom and standard

Kayvon Samini: In summary, I am pleased with the June quarter results and our successful closing of the, Rage Systems acquisition, which is making an immediate contribution to building Mobix, Labs and increasing profit.

Kayvon Samini: Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent, proof points we are on the path to our scalable growth plan.

Kayvon Samini: JMARC's expertise will increase revenue and our gross margins, positioning us for continued, success in the quarters ahead.

Kayvon Samini: As the operator prepares us for Q&A, I would like to mention that we look forward to seeing, some of you in September at the upcoming HC Wainwright Conference in New York.

Speaker Change: okay and how much is it ad for your sales force or is it more of a a re network that you add

Operator: Operator, we are now ready to take questions.

Operator: Certainly.

Operator: And as a reminder, if you do have a question at this time, please press star 11 on your, telephone.

Operator: And our first question comes from the line of Craig Ellis from B Reilly Securities.

Speaker Change: well actually both so we'll be adding sales resources when we close that acquisition as well as go to market the go to market in a similar way that we do

Craig Ellis: Your question, please.

Craig Ellis: Yeah, thanks for taking the question and congratulations on the nice growth in the quarter.

Speaker Change: now there as i should also there is an existing relationship and that's what makes this acquisition

Fabian Battaglia: Fabian, I'm going to start off with a higher level question, and it relates to something, we heard from one of the bigger analog companies out there that reported this morning.

Craig Ellis: They talked about increased confidence that an order correction in the industrial end, markets for which they're a very broad-based supplier, including defense, is in the rear-view mirror.

Craig Ellis: Can you just comment on the tenor of interaction you're hearing with your conversations with, your customer CEOs and CFOs?

Craig Ellis: How are they feeling about order intensity, and what's the tone of business out there, today?

Fabian Battaglia: Sure.

Fabian Battaglia: Well, hi, Craig.

Speaker Change: very strategic fllous so there work we're very familiar with them we have been working the emi group has been working with jmark and so we're really excited about what the opportunities they're going to be presented to us going forward

Fabian Battaglia: Thanks for the question.

Kayvon Samini: Total adjusted loss from operations for the third quarter was $4.1 million, mirroring, the prior two quarters.

Kayvon Samini: We are pursuing additional financing to fuel our acquisition strategy and to provide working, capital to fulfill our strong customer demand.

Fabian Battaglia: I would answer that with the way we measure that activity from a CRM perspective around, our pipeline.

Operator: Operator, we are now ready to take questions.

Fabian Battaglia: So, like we've mentioned earlier, we're seeing growth, we're seeing nice increases in that, area, and we anticipate that to continue in the quarters to come.

Fabian Battaglia: And we're seeing it across all sectors that we're involved in, so we're very pleased with, that activity, and I would agree with the reference that you made as far as seeing increases in that area.

Kayvon Samini: Our robust pipeline of M&A opportunities and quickly increasing customer demand are excellent, proof points we are on the path to our scalable growth plan.

Kayvon Samini: As the operator prepares us for Q&A, I would like to mention that we look forward to seeing, some of you in September at the upcoming HC Wainwright Conference in New York.

Fabian Battaglia: So, we see it as well.

Operator: Certainly.

Operator: And as a reminder, if you do have a question at this time, please press star 11 on your, telephone.

Craig Ellis: All right.

Operator: And our first question comes from the line of Craig Ellis from B Reilly Securities.

Craig Ellis: That's helpful.

Craig Ellis: Your question, please.

Craig Ellis: Yeah, thanks for taking the question and congratulations on the nice growth in the quarter.

Fabian Battaglia: Fabian, I'm going to start off with a higher level question, and it relates to something, we heard from one of the bigger analog companies out there that reported this morning.

Craig Ellis: And then the second question is more of a strategic question before I go on to one for, Kayvon.

Craig Ellis: Can you just comment on the tenor of interaction you're hearing with your conversations with, your customer CEOs and CFOs?

Fabian Battaglia: Sure.

Speaker Change: i

Craig Ellis: So, strategically, as we look at the company's continued inorganic growth, you said there's, a nice M&A funnel that you see. We've had acquisitions recently and proposed now in two of your four strategic segments.

Craig Ellis: How are they feeling about order intensity, and what's the tone of business out there, today?

Fabian Battaglia: Well, hi, Craig.

Speaker Change: okay great congratulations again

Craig Ellis: Given that, how should we think about where you would be more interested in M&A activity, from here?

Fabian Battaglia: Well, first, let me say that, like our product opportunity pipeline, the pipeline in the, M&A side is equally robust.

Fabian Battaglia: We will continue to look in areas where we are involved in today, and we'll look at areas, outside of the markets that we're serving today, but primarily aerospace and defense is our primary focus right now, and we're seeing plenty of opportunities for M&A in that space.

Speaker Change: thank you

Craig Ellis: That's great.

Fabian Battaglia: Thanks for the question.

Speaker Change: and this does conclude the question answer session as well as today's program thank you ladies and gentlemen with your participation you may now disconnect good day

Fabian Battaglia: I would answer that with the way we measure that activity from a CRM perspective around, our pipeline.

Fabian Battaglia: So, like we've mentioned earlier, we're seeing growth, we're seeing nice increases in that, area, and we anticipate that to continue in the quarters to come.

Fabian Battaglia: So, we see it as well.

Fabian Battaglia: All right.

Craig Ellis: That's helpful.

Craig Ellis: Thank you.

Craig Ellis: And then the second question is more of a strategic question before I go on to one for, Kayvon.

Craig Ellis: And then, Kayvon, before I go back into the queue, real nice guide for third quarter revenue.

Kayvon Samini: Thank you.

Craig Ellis: And then, Kayvon, before I go back into the queue, real nice guide for third quarter revenue.

Kayvon Samini: Thank you.

Craig Ellis: I think it's 38% sequentially.

Kayvon Samini: Yeah.

Craig Ellis: Thank you.

Craig Ellis: I think it's 38% sequentially.

Kayvon Samini: Yeah.

Operator: Thank you.

Fabian Battaglia: Given that, how should we think about where you would be more interested in M&A activity, from here?

Craig Ellis: Can you just talk about some of the things that you'd expect to continue to the sequential, growth?

Kayvon Samini: So, we expect to see additional growth in our military product lines, and we also expect, to see additional growth in our filter connector product lines.

Operator: And our next question comes from the line of Kevin Cassidy from Rosenblatt Securities.

Operator: Thank you.

Craig Ellis: Can you just talk about some of the things that you'd expect to continue to the sequential, growth?

Kayvon Samini: So, we expect to see additional growth in our military product lines, and we also expect, to see additional growth in our filter connector product lines.

Operator: And our next question comes from the line of Kevin Cassidy from Rosenblatt Securities.

Fabian Battaglia: Well, first, let me say that, like our product opportunity pipeline, the pipeline in the, M&A side is equally robust.

Kayvon Samini: And as Fabian indicated, we have, you know, we're pursuing a pretty strong M&A strategy, and so it's, you know, it's possible that you would see some additional revenue coming in from some strategic relationships.

Kevin Cassidy: Your question, please.

Operator: And this does conclude the question-and-answer session, as well as today's program.

Operator: Thank you, ladies and gentlemen, for your participation.

Kevin Cassidy: Your question, please.

Kevin Cassidy: Thank you.

Speaker Change: what was you go istan

Craig Ellis: So, are you saying that there is some benefit from, as yet, an announced M&A in the guidance?

Kevin Cassidy: Yeah.

Operator: You may now disconnect.

Operator: Thank you.

Craig Ellis: So, are you saying that there is some benefit from, as yet, an announced M&A in the guidance?

Kevin Cassidy: Yeah.

Operator: And this does conclude the question and answer session, as well as today's program.

Operator: Thank you, ladies and gentlemen, for your participation.

Craig Ellis: That's great.

Kayvon Samini: No, there's nothing in the guidance as it relates to that M&A.

Kevin Cassidy: Thanks for letting me ask the question, and congratulations on the progress on your strategy.

Operator: Good day.

Kayvon Samini: No, there's nothing in the guidance as it relates to that M&A.

Kevin Cassidy: Thanks for letting me ask the question, and congratulations on the progress on your strategy.

Operator: You may now disconnect.

Shio Delaloy: Thank you.

Kayvon Samini: So, anything that would come in, that might come in, with any kind of strategic relationship, would be additive.

Kevin Cassidy: My question's around JMARC.

Operator: That was easy.

Craig Ellis: So, anything that would come in, that might come in, with any kind of strategic relationship, would be additive.

Kevin Cassidy: My question's around JMARC.

Operator: Good day.

Craig Ellis: Got it.

Kevin Cassidy: Are these fully custom connectors, or are they catalog connectors?

Operator: Yes, sir.

Craig Ellis: Got it.

Kevin Cassidy: Are these fully custom connectors, or are they catalog connectors?

Shio Delaloy: That was easy.

Craig Ellis: Thanks, guys.

Fabian Battaglia: Hi, Kevin.

Craig Ellis: Thanks, guys.

Fabian Battaglia: Hi, Kevin.

Shio Delaloy: Yes, sir.

Craig Ellis: Good luck.

Fabian Battaglia: Thanks for the question.

Operator: Good luck.

Fabian Battaglia: Thanks for the question.

Fabian Battaglia: It's a combination of both custom and standard.

Kevin Cassidy: Okay.

Fabian Battaglia: Okay.

Kevin Cassidy: I see.

Kevin Cassidy: And how much does this add to your sales force, or is it more of a rep network that you're, at?

Fabian Battaglia: Well, actually, both.

Fabian Battaglia: So, we'll be adding sales resources when we close that acquisition, as well as go-to-market.

Fabian Battaglia: They go to market in a similar way that we do.

Fabian Battaglia: Now, there is, I should also add, there is an existing relationship, and that's what, makes this acquisition very strategic for us.

Fabian Battaglia: So, we're very familiar with them.

Fabian Battaglia: We have been working, the EMI group has been working with JMARC.

Fabian Battaglia: And so, we're really excited about what the opportunities that are going to be presented, to us going forward.

Kevin Cassidy: Okay.

Kevin Cassidy: Great.

Kevin Cassidy: Congratulations, again.

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