Q4 2025 Comtech Telecommunications Corp Earnings Call

As a reminder, this conference call is being recorded.

I would now like to turn the call over to Maria Ciriello Senior director of F. P&I of Comtech. Please go ahead Maria.

Speaker #3: To all locations on hold, we do appreciate your patience, and please continue to stand by. Welcome. To COMTECH TELECOMMUNICATIONS CORP /DE/ Conference Call for the fourth quarter and full year of fiscal 2025.

Thank you operator, and thanks, everyone for joining us today I'm here with Ken job context, Chairman, President and CEO and Mike Bondi our CFO.

After Ken and Mike's remarks they.

They will be available for questions together with Daniel Kaczynski, President of our satellite and space Communications segment, and Jeff Robertson President of <unk>, formerly known as the terrestrial and wireless segment.

Before we get started please note we have a detailed discussion of the quarter and year in the press release and 10-K, we issued this afternoon, which is available on our website as well as the SEC website.

Certain information presented in this call will include but not be limited to information relating to the future performance and financial condition of the company.

Kenneth Traub: In fiscal 2024 and early in fiscal 2025, Comtech's satellite and space business performed poorly and was a drain on the company's financial results and liquidity. Daniel was promoted to president of the business in the second quarter of fiscal 2025 and has done a very impressive job of identifying the issues that gave rise to the previous underperformance, executing a remediation plan to address those issues, and positioning the satellite and space segment for margin improvement, cash flow generation, and long-term growth. As Daniel took the reins of the satellite and space business, he and the team identified several factors that contributed to the prior underperformance of that segment. Let me explain six of those factors. First, the company suffered from a failure to respond effectively to industry trends. Secondly, the company had a product portfolio that included some aging and obsolete products. Third, we had poor cost management.

The company's plans objectives and business outlook, and the plans objectives and business outlook of the company's management.

The company's assumptions regarding such performance business outlook and plans are forward looking in nature and always involve significant risks and uncertainties.

Actual results could differ materially from such forward looking information.

Any forward looking statements are qualified in their entirety by cautionary statements contained in the company's SEC filings.

With that I will turn it over to Ken Ken.

Thank you Maria and good afternoon, everyone. I appreciate you joining us today.

I am proud to report how much stronger comtech has today financially operationally and strategically.

This is the result of the ongoing successful execution of the transformation initiatives that we announced when I started as CEO in January 2025.

Kenneth Traub: Fourth, the company had poor procurement approval disciplines and related excessive inventory buildup. Fifth, the company had poorly negotiated contractual terms. Sixth, we had a lack of skilled program managers, resulting in poor change control management. Over the course of the past year, Daniel and our leadership team addressed these issues with decisive actions, which yielded immediate improvements and positioned the business for long-term success. Let me explain some of these actions. First, we recruited a strong segment leadership team, specifically Steve Black as Chief Operating Officer, Brent Norman as Chief Financial Officer, Mark Dale as Chief Technology Officer, Bob Pescator as General Manager, as well as other key contributors under Daniel's direction. Second, we developed a new product roadmap featuring differentiated technologies aligned with customer needs.

As a testament to our improving financial health the company no longer has uncertainties regarding its ability to continue as a going concern and this disclosure has been removed from our financial statements.

We've executed a successful turnaround of our satellite and space business, which is now revitalized and our Larian business, formerly known as terrestrial and wireless has continued to deepen our presence in the public safety market, while securing long term customer partnerships.

We expect the company's significantly improved operational and financial health to be reassuring to our current and prospective customers vendors and employees investors and partners.

The early success of our transformation initiatives and the positive trajectory of the business are evident across numerous key metrics. Let me provide some examples.

Kenneth Traub: Third, we've eliminated over 50% of slow-moving products, which enabled us to have a tighter focus on a differentiated, value-driven product line. Fourth, we restored operational discipline. Fifth, we implemented productivity enhancements and cost reduction initiatives. Sixth, we implemented a disciplined approach to procurement and inventory management. Seventh, we improved customer relations and contractual terms. Finally, we established best practices in program management, ensuring improved reliability and performance. These initiatives are already having a significant impact. For instance, in the fourth quarter of fiscal 2025, satellite and space generated over $20 million of operating cash flow. This compares to a negative cash flow of $1 million in the first quarter of fiscal 2025 and approximately $23 million of negative cash flow in fiscal 2024. The significant improvement in satellite and space cash flow in the fourth quarter reflects the early impact of the operational improvements I just described.

Speaker #3: As a reminder, this conference call is being recorded. I would now like to turn the call over to Maria Ceriello, Senior Director of FP&I of COMTECH.

First operating cash flow, we reported $11 4 million of positive operating cash flow in the fourth quarter, which follows the $2 3 million of.

Speaker #3: Please go ahead, Thank you,

Positive operating cash flow in the third quarter.

Speaker #3: Maria.

The first quarters of positive operating cash flow for Comtech since fiscal 2023.

Speaker #4: Operator, and thanks everyone for joining us today. I'm here with Kenneth Traub, COMTECH Chairman, Mike Bondi, our CFO. After Kenneth and Mike's remarks, they will be available for questions together with Daniel Gazinski, President of our satellite and space communications segment, and Jeff Robertson, President of Valerium, formerly known as the Terrestrial and Wireless segment.

These operating cash flow numbers are after taking into account the payment of cash interest expense and fees on our debt as well as restructuring activities, including payments to resolve legacy issues, we inherited from former management <unk>.

The significant improvement in operating cash flow as a result of a cultural shift emphasizing optimizing cash flow improve process disciplines, better working capital management as well as the timing of and progress of completion on contracts that enabled us to build customers and collect accounts receivable.

Speaker #4: Before we get started, please note we have a detailed discussion of the quarter and year in the press release and 10-K we issued this afternoon.

Speaker #4: Which is available on our website, as well as the SEC's website. Certain information presented in this call will include but not be limited to information relating to the future performance and financial condition of the company, the company's plans, objectives, and business outlook, and the plans, objectives, and business outlook of the company's management.

Second liquidity, we concluded the fiscal year with $47 million of liquidity that includes qualified cash as well as undrawn availability under our revolving credit facility. This is the highest level of liquidity that Comtech has had in recent history compares to 27 million.

Kenneth Traub: Additionally, in the fourth quarter, satellite and space benefited from earlier than anticipated orders and related cash collections. Now that these improvements have been implemented, the satellite and space business is better positioned to pursue growth opportunities in our markets. We are prepared to meet increasing demand for technology to support 5G non-terrestrial networks and sovereign defense networks with the launch of our next-generation platforms. We are already seeing traction from the launch of our Digital Common Ground Platform, including additional early production prototype order agreements. In the fourth quarter, the satellite and space business completed initial deliveries of our small form factor TropoScatter system, referred to as our Multipath Radio, or MPR, to an international Air Force customer. We believe the small form factor TropoScatter capabilities align closely with the modern defense demands, and we believe there will be increasing demand for the unique features and capabilities we offer.

Speaker #4: The company's assumptions regarding such performance, business outlook, and plans are forward-looking in nature and always involve significant risks and uncertainties. Actual results could differ materially from such forward-looking information.

<unk> disclosed as recently as March 2025.

This is the result of the generation of operating cash flow that I, just described as well as improved terms with our lenders the increase liquidity gives us comfort to continue executing on our improvement initiatives as well as the ammunition to prudently invest and building sustainable long term value.

Speaker #4: Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's SEC filings. With that, I will turn it over to Kenneth.

Speaker #4: Kenneth?

Third accounts payable to vendors the cash flow and liquidity improvements that I. Just discussed were achieved while we also paid accounts payable down to the lowest level Comtech has had in years. We finished the fiscal year with accounts payable of just $26 million, which is down from $43 million.

Speaker #5: Thank you, Maria. And good afternoon, everyone. I appreciate you joining us today. I am proud to report how much stronger COMTECH is today financially, operationally, and strategically.

Speaker #5: This is the result of the ongoing successful execution of the transformation initiatives that we announced when I started as CEO in January 2025. As a testament to our improving financial health, the company no longer has uncertainties regarding its ability to continue as a going concern, and this disclosure has been removed from our financial statements.

As of January 31, we are now building stronger and healthier relationships with key vendors and partners.

Kenneth Traub: When you hear me discuss shifting our focus toward opportunities in which we can provide a more differentiated solution at higher margins, MPR is one such type of opportunity. During fiscal 2025, we began delivery of initial production units to our prime contractor in support of a next-generation satellite modem contract. We'll be transitioning into full production during fiscal 2026 as the program transitions from a multi-year development period into a production-oriented stage. A second next-generation product with the same prime contractor has also significantly progressed in development and is also expected to begin production deliveries in fiscal 2026. This is an important milestone, as it signifies the long-awaited migration from low-margin, non-recurring engineering efforts to higher volume production with improved operating margins and faster cash conversion cycles.

Fourth.

Our revenue increase and improved mix.

Quarterly revenue increased 13% from the first quarter to the fourth quarter of fiscal 2025, despite the anticipated wind down of certain legacy contracts, a deliberate shift away from a number of low margin contracts and the elimination of other revenue contracts that is unsatisfactory operating margins or <unk>.

Speaker #5: We have executed a successful turnaround of our satellite and space business, which is now revitalized. Our Valerium business, formerly known as Terrestrial and Wireless, has continued to deepen our presence in the public safety market while securing long-term customer partnerships.

<unk> demand on working capital.

This increase in quarterly net sales reflects improvements in both of our operating segments, including a shift back to high rate production orders and our satellite ground infrastructure solutions product line, which is expected to produce a more favorable revenue mix going forward.

Speaker #5: We expect the company's significantly improved operational and financial health to be reassuring to our current and prospective customers, vendors, employees, investors, and partners. The early success of our transformation initiatives and the positive trajectory of the business are evident across numerous key metrics.

Fifth improved gross margins.

Gross margins improved from 12, 5% in the first quarter to 31, 2% in the fourth quarter of fiscal 2025 gross margins are improving as a result of the revenue discipline I just described resulting in a more favorable revenue mix as well as the implementation of operational efficiencies and.

Kenneth Traub: We continue to support key space initiatives, including NASA's Artemis Project, with bookings in support of this project of approximately $10 million during the fourth quarter. Additionally, satellite and space was awarded over $7 million for its work supporting a US government cybersecurity training program. All of the initiatives that we have been executing under Daniel's leadership in our satellite and space business have resulted in a comprehensive turnaround, with significantly improved operating performance. This has helped to reinvigorate employee morale, partner commitments, and customer trust. The durable differentiation in our product portfolio, as well as the new products that we have been developing, positions satellite and space to capitalize on the growing demand for the innovative, secure communication solutions we provide to our target markets. Now I will provide commentary on our Elerium segment, formerly known as our terrestrial and wireless network segment.

Speaker #5: Let me provide some examples. First, operating cash flow. We reported $11.4 million of positive operating cash flow in the fourth quarter, which follows the $2.3 million of positive operating cash flow in the third quarter.

Cost savings measures.

Six.

We've improved the bottom line, our adjusted EBITDA, a non-GAAP measure improved sequentially in each quarter of the year. We went from a negative $30 8 million in the first quarter to positive $2 9 million in the second quarter to $12 $6 million in the third quarter and $13 3 million in the fourth quarter.

Speaker #5: These are the first quarters of positive operating cash flow for COMTECH since fiscal 2023. These operating cash flow numbers are after taking into account the payment of cash interest expense and fees on our debt, as well as restructuring activities including payments to resolve legacy issues we inherited from former management.

Our adjusted EBITDA gains stemmed from our improved gross margins as well as further savings in corporate overhead and operating expenses. Adjusted EBITDA is now more closely correlated with operating cash flows that it has been in the past.

Speaker #5: The significant improvement in operating cash flow is the result of a cultural shift emphasizing optimizing cash flow improved process disciplines, better working capital management, as well as the timing of and progressive completion on contracts that enabled us to build customers and collect accounts receivable.

<unk> improved credit facility terms as previously reported we succeeded in negotiating significantly improved terms with context creditors. These negotiations were facilitated by both the operational and financial improvements I just discussed as well as a relationship of trust and a spirit of cooperation.

Kenneth Traub: Our Elerium segment, led by Jeff Robertson, delivered a strong fourth quarter with adjusted EBITDA growing 37% to $13.7 million from $10 million in the same period last year. This performance was driven by higher net sales and gross profit related to our location-based and next-generation 911 call handling solutions, offset in part by increased research and development activities geared toward further solidifying our role as a trusted provider of innovative emergency communication and location-based technologies. During the fourth quarter, Elerium was awarded multiple orders across each of its three product areas, reflecting confidence in Elerium's performance and the strong collaboration with customers that defines these relationships. In total, bookings for the fourth quarter aggregated about $50 million. Taken together, we believe these awards validate Elerium's role as a market leader in emergency communication and location-based solutions. This momentum is underscored by a significant achievement that we reported today.

Speaker #5: Second, liquidity. We concluded the fiscal year with $47 million of liquidity, which includes qualified cash as well as undrawn availability under our revolving credit facility.

We have developed with our lenders as a result, comtech now has significantly enhanced financial flexibility.

Speaker #5: This is the highest level of liquidity that COMTECH has had in recent history, compared to $27 million disclosed as recently as March 2025. This is the result of the generation of operating cash flow that I just described as well as improved terms with our lenders.

Eighth.

Progress in repeating and Remediated our material weaknesses, we have been implementing improved control systems and working with external experts to remediate. The previously disclosed material weaknesses and the companys internal controls, while we have more to do in this regard we have made significant progress the revised engineering.

Speaker #5: The increased liquidity gives us comfort to continue executing on our improvement initiatives, as well as the ammunition to prudently invest in building sustainable long-term value.

<unk> estimates that we made recently on a development project with an international customer are manifestations of this progress while I was disappointed that the revisions to later report on all of the accomplishments that we are discussing today I am also encouraged that our enhanced bottom up bottoms up analysis have led to an overall improvement.

Speaker #5: Third, accounts payable to vendors. The cash flow and liquidity improvements that I just discussed were achieved while we also paid accounts payable down to the lowest level COMTECH has had in years.

Speaker #5: We finished the fiscal year with accounts payable of just $26 million, which is down from $43 million as of January 31. We are now building stronger and healthier relationships with key vendors and partners.

Our processes and quality of our reports.

The metrics that I, just described highlight the significant improvements and achievements in the second half of fiscal 2025. However, we recognize that we still have legacy challenges to address and fluctuations in our quarterly results are inevitable now I would like to share with you just some of the initiatives that made these.

Kenneth Traub: After year-end, we have secured a multi-year contract extension from Elerium's largest customer, a leading telecommunications company in the US, known for its network reliability and security. This contract award is valued in excess of $130 million and is for a scalable service. The agreement reinforces Elerium's commitment to helping carriers and public safety organizations modernize critical infrastructure, and optimize service reliability with confidence. This also highlights a core strength of this business. Regardless of broader economic conditions, emergency response has a history of consistent funding. As the world becomes more complex and riskier, governments, as well as commercial entities, are increasing their investment in public safety and precise location-based technologies, which provides Elerium with a durable tailwind and enhances our long-term revenue opportunities. The Elerium rebrand reflects a new unified go-to-market strategy that consolidates this segment's product lines under the single Elerium name.

Treatment as possible.

Improved corporate governance.

I've always believed that strong corporate governance and a healthy dynamic.

Both within the board of directors and between the Board and Executive management is fundamental to corporate success the corporate board.

Comtech is well informed and is working diligently collaboratively and constructively and their evaluation and support of corporate priorities. The strong governance and alignment between the board and management has enabled the focused execution of the transformation initiatives that I will describe in more detail.

Secondly, strengthens executive leadership, the Comtech leadership team is now strong and capable both at the corporate level and the operating segment level. Our executives are rising to the occasion and performing at a high level as they are aligned around key priorities and core values. We have also recruited additional.

Key members of the team that are helping to drive continuous improvement I will discuss this in more detail when I move into the discussion of developments at the segment level later in this call. The strengthened the executive leadership team as fostering an improved dynamic and is energized by the positive momentum, resulting from the successful execution.

Kenneth Traub: It marks a fresh new chapter, elevating our name in the markets we serve. Internally, it has served as a rallying cry for our teams, renewing focus on innovation, and strengthening both employee engagement and recruitment as we drive the next generation of public safety technology. To support and accelerate this strategy, we have opened a new Elerium Innovation Lab in Broomfield, Colorado. This facility will be a center of excellence, focusing on next-generation R&D, and attracting the best talent in public safety technology. A cornerstone of this strategy is Elerium Mira, our next-generation public safety-grade cloud-native call handling solution. Mira simplifies complex emergency call handling operations by allowing public safety answering points to manage voice, text, video, and alerts through a single interface, unlocking smarter routing and deeper integration. Elerium Mira is also the engine for our broader service expansion.

<unk> of our transformation initiatives.

Third is accountability, we've empowered key contributors throughout this organization, while implementing new disciplines to foster Accountability. For example, we've initiated a revised delegation of authority program that clearly defines lines of responsibility authority and accountability we have.

Also improved the systems, we use to manage approve and monitor critical activities, including capital expenditures research and development initiatives purchasing contract execution employee hiring and incentives.

<unk> cash flow optimization I've seen companies in my career used various metrics as their primary focus such as revenue growth revenue per employee adjusted EBITDA and others. These metrics can get companies into trouble, particularly if they are misaligned with cash flow or inconsistent with ease.

Kenneth Traub: We are moving beyond traditional 911 calls to handle many other forms of information for a wide array of originating service providers. This includes data from wearables, connected cameras, fire panels, vehicles, and traffic cameras. By integrating these inputs with next-generation software tools, we provide critical situation awareness to ensure first responders are prepared to deliver the emergency services the public needs. This strategy is proving successful both domestically and abroad. As I stated last quarter, some of our key growth drivers include cloud-based products like Elerium Mira, next-generation call handling solutions, and 5G location-based technologies for international customers. We are already executing on this global strategy and expanding our international footprint, as I can confirm that during the fourth quarter, Elerium secured over $6.5 million in new contracts for work in South Australia and Canada.

The short or long term shareholder equity value maximization. The principle that we're currently focusing on here Comtech is optimizing for cash flow not revenue a return to positive cash flow enables us to strengthen our short and long term financial operational and strategic position.

<unk>.

Fifth improving working capital management.

A key component of cash optimization is alignment of the organization around understanding and managing the balance sheet, and particularly working capital our strengthened financial position coupled with enhanced disciplines will anchor further initiatives to optimize working capital management as a source of cash for further improvements.

Disappointed that the revisions delayed a report on all of the accomplishments that we are discussing today. I am also encouraged that our enhanced Bottom-Up analysis has led to an overall improvement in our processes and the quality of our reports.

And our capital structure as well as investments in value accretive opportunities.

Sixth strong customer focus and support we are dedicated to meeting and exceeding our customers' current and future needs and expectations. We've already seen how our efforts are enhancing customer satisfaction. Our team is focused not only providing excellent customer service and support today.

Kenneth Traub: This entire vision is underpinned by Elerium's competitive advantage, the combination of our industry-leading, statewide, innovative next-generation 911 networks with decades of experience in dispatch centers around the world. As agency expands beyond voice to multimodal, data-rich requests for help, this integration of network and dispatch technology gives us a distinct ability to help them manage complex emergencies. As previously disclosed, the company has been reviewing strategic alternatives with the assistance of nationally recognized investment bankers. We will only be providing updates on these processes if and when we have something specific to share. At this point, there is nothing to share. With that, I'll turn the call over to Mike to walk through the financials. Mike. Thank you, Ken, and good afternoon, everyone. Before getting into the detailed results, I would like to first summarize this past quarter.

The metrics that I just described highlight the significant improvements and achievements in the second half of fiscal 2025 however we recognize that we still have Legacy challenges to address and fluctuations in our quarterly results are inevitable. Now I would like to share with you just some of the initiatives that made these achievements possible.

First improved corporate governance.

We're also developing innovative next generation solutions to address the growing needs of our customers in each segment of our business.

Seventh and.

Enhanced operational efficiency, we have.

<unk> been implementing new processes to improve reliability quality on time delivery and capacity utilization as well as streamlining product lines and operations to reduce complexity and cost and the eighth initiative as it reduced cost structure. In addition to savings from operational efficiencies we are.

I have always believed that strong corporate governance and a healthy dynamic, both within the board of directors and between the board and executive management, are fundamental to corporate success. The corporate board, in this context, is well-informed and is working diligently, collaboratively, and constructively in their evaluation and support of corporate priorities. This strong governance and alignment between the board and management have enabled the focused execution of the transformation initiatives that I will describe in more detail.

Secondly.

Identifying opportunities to lower the cost structure with less internal labor and reduced use of external consultants and expensive professional service firms.

Kenneth Traub: Sequentially, our consolidated GAAP operating results were better than our third quarter of fiscal 2025. We continued to grow net sales and improve gross margins, further reduced our operating expenses, generated positive GAAP operating income for the first time in over five quarters, further increased our adjusted EBITDA, and achieved our second consecutive quarter of positive cash flows from operations. The Elerium segment continues to perform well, securing several large, multi-year contract extensions from key customers. Our Satellite and Space Communications segment has been rejuvenated, and improvements are evident with sequential growth in net sales, gross profit, operating income, adjusted EBITDA, and operating cash flows. We were also successful in reducing corporate unallocated operating expenses during the more recent fiscal quarter.

And finally the.

As a revitalized corporate culture. The final major initiative I would like to mention is centered around corporate culture.

I save this for last because it is the most important we've been reinvigorating the corporate culture here at Comtech by emphasizing transparency empowerment and accountability on a personal note. It is particularly gratifying for me see how our employees are increasingly taking pride in contributing to our success.

Strengthens executive leadership. The context leadership team is now strong and capable both at the corporate level. And the operating segment level, our executives are rising to the occasion and performing at a high level. As they are aligned around key priorities and core values. We've also recruited additional key members of the team that are helping to drive continuous Improvement. I will discuss this in more detail. When I move into the discussion of developments at the segment level later in the call, the strengthened executive leadership team has fostered. An improved Dynamic and is energized by the positive momentum. Resulting from the successful execution of our transformation initiatives?

Which is also enhanced morale retention and performance the initiatives I. Just described not only helped to drive context significantly improved financial performance, but also enabled us to improve relationships with current and prospective employees customers vendors and creditors. This lead.

Signatures research and development initiatives, purchasing contract, execution, employee hiring and incentives.

Two a flywheel effect in my opinion, and which improves relationships create a healthier dynamic for the business going forward and ultimately further improvements in operational and financial performance.

Forth.

Kenneth Traub: While there are always opportunities for greater efficiency, the transformation plans that Ken described earlier have not only stabilized our business, but have also strengthened our financial condition and opportunities for further growth. I'm going to review our financial results for fiscal 2025 first, then discuss results for the fourth quarter. In fiscal 2025, Comtech had consolidated net sales of $499.5 million, compared to $540.4 million in fiscal 2024. The change in sales reflects the anticipated winddown of certain legacy TropoScatter contracts, lower sales of EEE space components and antennas, including those related to the CGC divestiture that we initiated in our fourth quarter of fiscal 2024, and the divestiture of our high-powered solid-state amplifiers product line in November of 2023.

Cash flow optimization.

Now I'll provide some commentary on our business units.

Under Daniel Kaczynski's leadership, our satellite and space Communications business has been executing a successful turnaround in fiscal 2024 and early in fiscal 2025, Comtech satellite and space business performed poorly.

<unk> was a drain on the Companys financial results and liquidity Daniel was promoted to president of the business in the second quarter of fiscal 2025 has done a very impressive job identifying the issues that gave rise to that previous underperformance executing a remediation plan to address those issues and positioning the satellite and <unk>.

I've seen companies in my career use various metrics as their primary focus, such as revenue, growth, revenue per employee, adjusted EBITDA, and others. These metrics can get companies into trouble, particularly if they are misaligned with cash flow or inconsistent with either short or long-term shareholder equity value maximization. The principle that we're currently focused on here at Comtech is optimizing for cash flow, not revenue. A return to positive cash flow enables us to strengthen our short- and long-term financial, operational, and strategic positions.

Fifth.

<unk> segment for margin improvement cash flow generation and long term growth.

As Daniel took the reins of the satellite and space business. He and the team identified several factors that contributed to the prior on the performance of that segment. Let me explained six of those factors first.

Kenneth Traub: These items were offset in part by higher sales of our Elerium's NG911 emergency communication, call handling, and location-based solutions, and SATCOM solutions in our satellite and space segment, primarily satellite ground infrastructure solutions and VSAT and similar equipment sales to the US Army. Gross margin as a percentage of net sales was 25.6% for fiscal 2025, compared to 29.1% in fiscal 2024. Fiscal 2025 margins reflect an $11.4 million non-cash charge in our first quarter from inventory write-downs related to restructuring within our satellite and space segment. Our quarterly gross profit, both in dollars and as a percentage of consolidated net sales, improved sequentially throughout fiscal 2025. Over the course of the fiscal year, we improved our quarterly consolidated GAAP operating income from a loss of $129.2 million in the first quarter to income of $1.9 million in the fourth quarter.

Improving working Capital Management. A key component of cache optimization is alignment of the organization around understanding and managing the balance sheet and particularly working capital. Our strengthened financial position. Coupled with enhanced disciplines will anchor further initiatives to optimize working Capital Management as a source of cash for further improvements in our capital structure as well as Investments and value accretive opportunities.

6.

The company has suffered from a failure to respond effectively to IND.

<unk> trends secondly.

The company had a product portfolio that included some aging and obsolete products.

Third we had poor cost management.

Fourth the company had poor procurement approval disciplines and related excessive inventory buildup.

Fifth the company had poorly negotiated contractual terms and six.

Strong customer, focus, and support. We are dedicated to meeting and exceeding. Our customers current and future needs and expectations, we've already seen how our efforts are enhancing customer satisfaction. Our team is focused, not only providing excellent customer service and support today but we also developing Innovative Next Generation solutions to address the growing needs of our customers in each segment of our business.

<unk> had a lack of skilled program managers, resulting in poor change control management over the course of the past year, Daniel and our leadership team addressed these issues with decisive actions, which yielded immediate improvements and are positioning the business for long term success.

7th.

Let me explain some of these actions first we recruited a strong segment leadership team specifically, Steve Black as Chief operating Officer, Brent Norman as Chief Financial Officer, Mark Dao, as Chief Technology Officer, Bob <unk> General manager as well as other key contributors under Daniel's direction.

Kenneth Traub: Reductions in quarterly expenditures for SG&A expenses contributed to this improvement. As outlined in the company's annual report on Form 10-K for fiscal 2025, net loss attributable to common shareholders was $204.3 million, compared to $135.4 million in fiscal 2024. In aggregate, fiscal 2025 results were impacted by $187.5 million of net charges, of which $167.1 million were non-cash. Our net loss attributable to common shareholders improved sequentially throughout fiscal 2025 due primarily to improved operational and financial performance, as Ken just explained. Adjusted EBITDA loss for Comtech in fiscal 2025 was $2 million, compared to adjusted EBITDA income of $45.7 million in fiscal 2024.

And the eighth initiative is a reduced cost structure. In addition to savings from operational efficiencies, we are identifying opportunities to lower. The cost structure with less internal labor and reduce use of external consultants and expensive. Professional Service firms.

Second we developed a new product roadmap featuring differentiated technologies aligned with customer needs.

Third we've eliminated over 50% of slow moving products, which enabled us to have a tighter focus on a differentiated value driven product line.

Fourth we restored operational discipline.

And finally, the um, is a revitalized corporate culture, the final major initiative. I would like to mention is centered around corporate culture. I say I saved this for last because it is the most important. We've been reinvigorating. The corporate culture here at comptech by emphasizing transparency empowerment and accountability.

We implemented productivity enhancements and cost reduction initiatives six we implemented a disciplined approach to procurement and inventory management.

Seventh we improved customer relations and contractual terms and finally, we establish best practices and program management, showing improved reliability and performance. These.

On a personal note, it is particularly gratifying for me. See how our employees are increasingly taking pride in contributing to Our Success which has also enhanced morale retention and performance.

These initiatives are already having a significant impact for instance in the fourth quarter of fiscal 2025 satellite and space generated over $20 million of operating cash flow. This compares to a negative cash flow of $1 million in the first quarter of fiscal 2025 and approximately 20.

Kenneth Traub: This change primarily reflects the anticipated lower consolidated net sales and gross profit in fiscal 2025, both in dollars and as a percentage of consolidated net sales, including an $11.4 million non-cash charge in our first quarter related to the write-down of inventory, and higher selling, general, and administrative expenses driven by a $16.1 million non-cash charge in our first quarter related to the allowance for doubtful accounts, offset in part by lower company-funded research and development expenses in light of increased levels of customer-funded initiatives. Overall, we experienced sequential quarterly improvements in adjusted EBITDA throughout fiscal 2025, with improvements ranging from negative $30.8 million in our first quarter to positive $13.3 million in our fourth quarter. Net bookings in fiscal 2025 were $372.7 million, compared to $700.6 million in fiscal 2024.

The initiatives I just described not only helped to drive context significantly, improved financial performance, but also enabled us to improve relationships with current and prospective employees, customers vendors and creditors, this leads to a flywheel effect, in my opinion, in which improves relationships, create a healthier Dynamic for the business going forward. And ultimately further improvements in operational and financial performance.

$3 million of negative cash flow in fiscal 2020 for the.

Now, I will provide some commentary on our business units.

<unk> improvement in satellite and space cash flow in the fourth quarter reflects the early impact of the operational improvements I. Just described additionally in the fourth quarter satellite and space benefited from earlier than anticipated orders and related cash collections.

Under Daniel Guzinski's leadership, our Satellite and Space Communications business has been executing a successful turnaround.

Now that these improvements have been implemented the satellite and space business is better positioned to pursue growth opportunities in our markets. We are prepared to meet increasing demand for technology to support five G. Non terrestrial networks and sovereign defense networks with the launch of our next generation platforms. We are already.

Seeing traction from the launch of our digital common ground platform, including additional early production prototype order agreements in the fourth quarter, the satellite and space business completed initial deliveries of our small form factor Troper scatter system referred to as our multi path radio or MPR to an international Air Force.

Kenneth Traub: Bookings in fiscal 2025 were impacted by a $36.4 million debooking in the third quarter, following the award of a protested low-margin US Army field services contract to the incumbent provider. Bookings in the prior year included a large multi-year contract awarded to us from an NG911 customer in the northeastern region of the US. Comtech's funded backlog as of 31 July 2025 was $672.1 million, compared to $798.9 million as of 31 July 2024, and $708.1 million as of 30 April 2025. For clarity, such backlog does not yet include the $130 million plus multi-year contract extension just recently awarded to Elerium. Fiscal 2025 GAAP cash flows used in operations were $8.3 million, a significant improvement from the $54.5 million of cash flows used in operations last year.

In fiscal 2024, and early in fiscal 2025, the satellite and space business performed poorly and was a drain on the company's financial results and liquidity. Daniel was promoted to president of the business, and the second quarter of fiscal 2025 is done. He has done a very impressive job of identifying the issues that gave rise to the previous underperformance, executing a remediation plan to address those issues, and positioning the satellite and space segment for margin improvement, cash flow generation, and long-term growth.

Customer, we believe the small form factor Copa scatter capabilities align closely with our modern defence demands and we believe there will be increasing demand for the unique features and capabilities. We offer when you hear me discuss shifting our focus toward opportunities in which we can provide a more differentiated solution has higher margins.

As Daniel took the reins of the satellite and space business, he and the team identified several factors that contributed to the prior runs of performance of that segment. Let me explain six of those factors first. A: the company suffered from a failure to respond effectively to industry trends.

Third. We had poor cost management.

Forth. The company had poor procurement approval disciplines and related, excessive inventory, buildup.

MPR is one such type of opportunity during fiscal 2025, we began delivery of initial production units to a prime contractor support of our next generation satellite modem contract, we will be transitioning into full production during fiscal 2026 as the program transitions for.

I poorly negotiated contractual terms and 6. It, we had a lack of skilled program managers resulting in poor Change, Control Management.

A multi year development period into a production oriented stage.

Over the course of the past year. Daniel and our leadership team, addressed these issues with decisive actions which yielded immediate improvements and a position the business for long-term success.

A second next generation product with the same prime contractor is also significantly progressed in development and is also expected to begin production deliveries in fiscal 2026. This is an important milestone as it signifies the long awaited migration from low margin nonrecurring engineering efforts too high.

Kenneth Traub: Fiscal 2025 cash flows include $23 million in aggregate payments for restructuring costs, including severance, proxy solicitation costs, and CEO transition costs. This compares to $16 million in fiscal 2024. Fiscal 2025 also includes cash payments for interest and taxes of $29.6 million, as compared to $23 million in fiscal 2024. Throughout fiscal 2025, Comtech had sequential quarterly improvements in operating cash flows, improving from negative $21.8 million of operating cash flow in our first quarter to positive $11.4 million in our fourth quarter. Pivoting now to our results for the fourth quarter of fiscal 2025, consolidated net sales were $130.4 million, compared to $126.2 million in the fourth quarter a year ago, and $126.8 million in the third quarter of fiscal 2025.

Let me explain some of these actions first. We recruited a strong segment leadership team specifically, Steve black as Chief Operating Officer. Brent Norman as Chief Financial Officer Mark, Dale, as Chief technology officer Bob pescatore's general manager as well as other key contributors under Daniel's Direction.

Second.

The new product roadmap.

Your volume production with improved operating margins and faster cash conversion cycles, we continue to support key space initiatives, including Nasa's Artemis project with bookings in support of this project of approximately $10 million during the fourth quarter. Additionally, satellite and space was awarded over 7 million.

Featuring different.

With customer needs.

Third, we've eliminated over 50% of slow-moving products, which enabled us to, uh, to have a tighter, focus on a differentiated value, driven, product line.

For its work supporting a U S government cyber security training program.

All of the initiatives that we have been executing under Daniels leadership.

<unk> and space business have resulted in a comprehensive turnaround with significantly improved operating performance. This has helped to reinvigorate employee morale partner commitments and customer trust the durable differentiation in our product portfolio as well as the new products that we have been developing physician sat.

We restored, operational discipline fifth, we implemented productivity, enhancements, and cost reduction initiatives. 6, we implemented a discipline approach to procurement and inventory management. 7th, we improved customer relations and contractual terms. And finally, we established best practices and program, management, ensuring improved, reliability and performance.

Kenneth Traub: The fourth quarter benefited from earlier-than-anticipated orders in both segments, offset in part by a $3.5 million charge in our fourth quarter due to higher-than-expected cost at completion on a non-recurring development project within our satellite and space segment. Gross profit in the fourth quarter of fiscal 2025 was $40.7 million, or 31.2% of net sales, representing a substantial 50.2% increase from the $27.1 million, or 21.5% of net sales in the fourth quarter last year. Gross profit in the more recent quarter also represents a 4.6% sequential increase from the $38.9 million, or 30.7% of net sales in our third quarter of fiscal 2025. We continue to make progress in improving our product mix, including our ongoing shift back to higher volume production orders in our satellite ground infrastructure solutions product line, as certain legacy low or no-margin non-recurring engineering contracts draw nearer to completion.

Alight in space to capitalize on the growing demand for the innovative secure communication solutions, we provide to our target markets now I will provide commentary on our <unk> segment, formerly known as our terrestrial and wireless network segment.

Our <unk> segment led by Jeff Robertson delivered a strong fourth quarter with adjusted EBITDA growing 37% to $13 $7 million from $10 million in the same period last year. This performance was driven by higher net sales and gross profit related to our location.

These initiatives are already having a significant impact. For instance, in the fourth quarter of fiscal 2025 satellite and space generated over twenty million dollars of operating cash flow, this compares to a negative cash flow of 1 million dollars in the first quarter of fiscal 2025, and approximately 23 million of negative cash flow in fiscal 2024. The significant Improvement in satellite and space cash flow in the fourth quarter, reflects the early impact of the operational improvements. I just described additionally in the fourth quarter satellite and space benefited from earlier than anticipated orders and related cash collections.

Based.

Next generation 911 call handling solutions offset in part by increased research and development activities geared towards further solidifying our role as a trusted provider of innovative emergency communication and location location based technologies during the fourth quarter <unk> was awarded multiple order.

Now that these improvements have been implemented, the satellite and space business is better positioned.

To pursue growth opportunity.

Our crews across each of its three product areas, reflecting confidence in our <unk> performance and the strong collaboration with customers that defines these relationships and total bookings for <unk>.

Kenneth Traub: In our fourth quarter of fiscal 2025, we continued our trend of lowering GAAP operating expense, in particular, SG&A. Such reduction resulted in our ability to report positive operating income in our fourth quarter of $1.9 million, which compares to an operating loss of $1.5 million in the prior quarter and an operating loss of $81.5 million in the fourth quarter of fiscal 2024. These improvements in our financial performance also resulted in consolidated adjusted EBITDA for the fourth quarter to increase to $13.3 million, compared to $0.3 million in the fourth quarter of last year and $12.6 million in the third quarter of this year.

For the fourth quarter aggregated about $50 million taken together, we believe these awards validate <unk> role as a market leader in emergency communication and location based solutions. This momentum is underscored by a significant achievement that we reported today after year end.

We are prepared to meet increasing demand for technology to support 5G non-terrestrial networks and Sovereign. Defence networks with a launch of our next Generation platforms. We are already seeing traction from the launch of our digital Common Ground platform, including additional early production. Prototype order agreements in the fourth quarter, the satellite and space business completed, initial deliveries of our, small form factor troposcatter system referred to as our multi-path radio or MPR to an international Air Force customer. We believe the small form factor troposcatter capabilities, align closely with the modern defense.

We have secured a multi year contract extension from <unk> largest customer a leading telecommunications company in the U S known for its network reliability and security. This contract award is valued in excess of $130 million and is for a scalable service the agreement reinforces.

Demands, and we believe there will be increasing demand for the unique features and capabilities we offer. When you hear me discuss shifting our focus toward opportunities in which we can provide a more differentiated solution at higher margins, MPR is one such opportunity.

Kenneth Traub: As mentioned, in the fourth quarter of fiscal 2025, cash flows provided by operations were $11.4 million, a substantial improvement from the $9.5 million of cash flows used in operations in the fourth quarter of 2024, and the $2.3 million of cash flows provided by operations in the third quarter of this year. The improvement in this metric is due to operational enhancements and our revitalized culture, with aligned focus on optimizing cash flow, which in part contributed to earlier-than-anticipated collections in our fourth quarter of fiscal 2025. Now, turning to the balance sheet, and as discussed in more detail in our SEC filings, we recently amended our credit facilities.

<unk> commitment to helping carriers and public safety organizations modernize critical infrastructure and optimize service reliability with confidence. This also highlights a core strength of this business regardless of broader economic conditions Emergency response has a history of <unk>.

During fiscal 2025, we began delivery of initial production units to our prime contractor support of a Next Generation satellite modem contract and we'll be transitioning into full production during fiscal 2026 as the program transitions from a multi-year development period into a production-oriented stage.

<unk> funding as the world becomes more complex and riskier governments as well as commercial entities are increasing their investment in public safety and precise location based technologies, which provides <unk> with a durable tailwind and enhances our long term revenue opportunities.

A second Next Generation product with the same prime. Contractor has also significantly progressed in development and it's also expected to begin production, deliveries in fiscal 2026. This is an important Milestone as it signifies, the long, awaited migration from low margin non-recurring, engineering efforts to higher volume production with improved, operating margins and faster cash conversion Cycles.

Kenneth Traub: These amendments, among other things, provided for the incurrence of a $35 million incremental subordinated priority term loan, the net proceeds of which were used to prepay without premium $28.5 million of outstanding term loans and $5.8 million of the outstanding revolver loan under the credit facility. Importantly, it suspends until the four-quarter period ending 31 January 2027, testing of the net leverage ratio, the fixed charge coverage ratio, and the minimum EBITDA covenants. They altered the interest rates applicable to term loans under the credit facilities. It delayed the scheduled repayment of a portion of the principal on the term loans and fees due, pursuant to the Second Amendment to the credit facility.

Delirium rebrand reflects a new unified go to market strategy that consolidates. This segment's product lines under the single Larry I'm name. It marks a fresh new chapter elevating our name in the markets. We serve internally. It has served as a rallying cry for our teams renewing.

We continue to support key space and initiatives, including NASA's Artemis project with bookings and support of this project of approximately $10 million during the fourth quarter. Additionally, Satellite and Space was awarded over $7 million for its work supporting a U.S. government cyber security training program.

Focus on innovation and strengthening both employee engagement and recruitment as we drive the next generation public safety technology.

To support and accelerate this strategy, we've opened a new <unk> innovation lab in Broomfield, Colorado. This facility will be a center of excellence focusing on next generation R&D and attracting the best talent in public safety technology, a cornerstone of this strategy is a larian mirror our.

Kenneth Traub: The amendments reduced the minimum EBITDA requirements, reduced the minimum quarterly average liquidity requirements from $17.5 million to $15 million, permanently reduced commitments under the credit facility's revolver loan by $2.1 million, and obligated the company to enter into management incentive and retention arrangements for its key personnel. Such amendments also permit us to engage in the sale or disposition of certain properties and assets approved by the administrative agents, subject to the conditions to use net cash proceeds from such sale to repay outstanding principal amounts of the obligations under our credit facilities. Collectively, these amendments provide Comtech with enhanced financial flexibility. In terms of our liquidity and outstanding debt obligations, at 31 July 2025, our available sources of liquidity totaled $47 million. Total outstanding borrowings under our credit facility were $133.9 million, of which $17.6 million was drawn on the revolver.

Next generation public safety grade cloud native coal handling solution mirrors simplifies complex emergency call handling operations by allowing public safety answering points to manage voice text video and alerts through a single interface unlocking unlocking smart.

We provide to our Target markets. Now, I will provide commentary on our yium, segment formerly known as our terrestrial and wireless network segment.

Order routing and deeper integration Alarie Amira is also the engine for our broader service expansion, we're moving beyond traditional 911 calls to handle many other forms of information for a wide array of originating service providers. This includes data from Wearables connected cameras.

Higher panels vehicles and traffic cameras by integrating these inputs with next generation software tools, we provide critical situation awareness to ensure first responders are prepared to deliver the emergency services. The public needs. This strategy is proving successful both domestically and abroad.

Kenneth Traub: Total outstanding borrowings under our subordinated credit facility were $100.1 million, excluding the $25.7 million make-hole amount associated with the $65 million portion of such facility through 31 July 2025. The liquidation preference of our outstanding convertible preferred stock was $204.2 million, excluding potential increases that could be triggered by, among other things, asset sales and/or changes in control of the company. Before turning it back over to Ken, I will now provide a brief update on our consolidated performance for the first quarter of fiscal 2026. While we currently have a policy of not providing guidance or full-year targets, given the unique situation of having our fiscal 2025 earnings call after the end of our first quarter of fiscal 2026, we felt an update in this instance, albeit preliminary, would be appropriate.

Rod as I stated last quarter some of our key growth drivers include cloud based products like alluring Meera next generation call handling solutions and five G location based technologies for international customers.

Our yium segment led by Jeff Robertson delivered. A strong fourth quarter with adjusted. Eva growing 37% to 13.7 million from 10 million in the same period last year. This performance was driven by higher net, sales and gross profit related to our location based and Next Generation, 911 call handling Solutions offset in part by increased research and development activities, geared, toward further solidifying, our role as a trusted provider of innovative emergency communication and location location-based Technologies. During the fourth quarter, illyrian was awarded multiple orders across each of its 3 product, areas reflecting, confidence, in Yan's performance. And the strong collaboration with customers that defines these relationships in total bookings for the for the fourth quarter. Aggregated about 50 million dollars taken together. We

We believe these Awards validate, Aaron's role as a market leader in emergency, communication, and location-based Solutions.

Already executing on this global strategy and expanding our international footprint as I can confirm that during the fourth quarter <unk> secured over $6 $5 million in new contracts for work in South Australia, and Canada. This entire vision is underpinned by a <unk> competitive advantage.

The combination of our industry, leading statewide innovative next generation 911 networks with decades of experience and dispatch centers around the world as agency expand beyond voice to multi modal data rich requests for help this integration of network and dispatch.

Kenneth Traub: For the fiscal quarter ended 31 October 2025, we are currently estimating the following consolidated results: net sales to approximate a range of $107 million to $113 million, compared to $115.8 million in the first quarter of fiscal 2025, cash flow provided by operating activities to approximate a range of $6 million to $7 million, compared to cash flow used in operating activities of $21.8 million in the first quarter of fiscal 2025, and liquidity defined as our qualified cash and cash equivalents and available portion of our revolver loan under our credit facility as of 31 October 2025 was $51 million. Performance in the first quarter of fiscal 2026 is expected to reflect, among other things, the impacts of earlier-than-anticipated orders, net sales, and cash collections that we just discussed, as well as certain contracts nearing completion in the fourth quarter of fiscal 2025.

Technology gives us a distinct ability to help them manage complex emergencies.

As previously disclosed the company has been reviewing strategic alternatives with the assistance of nationally recognized investment bankers, we will only be providing updates on these processes, if and when we have something specific to share at this point there is nothing to share with that ill turn the call over to Mark.

This momentum is underscored by a significant report that we issued today. After year-end, we secured a multi-year contract extension from Marian's largest customer, a leading telecommunications company in the U.S. known for its network reliability and security. This contract award is valued at more than $130 million and is for a scalable service. The agreement reinforces our commitment to helping carriers and public safety organizations modernize critical infrastructure and optimize service reliability with confidence. This also highlights a core strength of this business: regardless of broader economic conditions, emergency response has a history of consistent funding. As the world becomes more complex and riskier, governments, as well as commercial entities, are increasing their investments in public safety.

Location-based technologies provide Arium with a durable tailwind and enhance our long-term revenue opportunities.

To walk through the financials Mike.

Thank you Ken and good afternoon, everyone before getting into the detailed results I would like to first summarize this past quarter sequentially. Our consolidated GAAP operating results were better than our third quarter of fiscal 2025, we.

We continue to grow net sales and improved gross margins.

Further reduced our operating expenses.

Generated positive GAAP operating income for the first time in over five quarters.

Delirium Rebrand reflects a new unified, go to market strategy. That consolidates, this segment's product lines under the single Arium name. It marks a fresh new chapter, elevating our name, in the markets, we serve internally. It has served as a rallying cry for our teams. Renewing focus on Innovation and strengthening both Employee Engagement and recruitment as we drive the next generation of Public Safety technology.

Kenneth Traub: Additionally, performance in the first quarter of fiscal 2026, particularly in our S&S segment, is expected to reflect the impacts of timing delays in orders, net sales, and cash collections as a result of the US government shutdown, as well as the decision to phase out and eliminate certain low-margin revenue. While not providing full-year guidance or specific targets, we do expect performance to improve in subsequent quarters of fiscal 2026. Additional details will be provided when we file our Form 10Q for the first quarter of fiscal 2026. Also, as a reminder, statements about our anticipated results are subject to the questionnaire language on forward-looking statements included at the start of this call, as well as in our various SEC filings. Now, let me turn the call back over to Ken. Ken. Thank you, Mike.

Further increased our adjusted EBITDA and achieved our second consecutive quarter of positive cash flows from operations.

The <unk> segment continues to perform well secured several large multi year contract extensions from key customers are.

Our satellite and space Communications segment has been rejuvenated and improvements are evident with sequential growth in net sales gross profit operating income adjusted EBITDA and operating cash flows.

We were also successful in reducing corporate unallocated operating expenses during the more recent fiscal year quarter.

While there are always opportunities for greater efficiency.

Transformation plans that Ken described earlier have not only stabilized our business, but have also strengthened our financial condition and opportunities for further growth.

Kenneth Traub: To sum up briefly, Comtech has been successfully executing the transformation plan that I announced in January, which has not only helped to drive Comtech's significantly improved operating and financial performance, but also has enabled us to improve relationships with current and prospective employees, customers, vendors, and creditors. I believe this leads to a flywheel effect in which improved relationships create a healthier dynamic for the business going forward and, ultimately, further improvements in operating and financial performance. As a reminder, Jeff and Daniel will be joining us for the Q&A. With that, operator, please open the call to any questions. Thank you. At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may withdraw your question by pressing star two. Once again, to ask a question, please press the star and one on your telephone keypad.

I'm going to review our financial results for fiscal 2025 first then discuss results for the fourth quarter.

To support and accelerate this strategy, we have opened a new Arium, Innovation lab in Broomfield Colorado. This facility will be a center of excellence, focusing on Next Generation R&D and attracting the best talent in public safety. Technology. A Cornerstone of this strategy is a lariam mirror. Our next Generation, Public Safety grade, Cloud native, call handling solution mirror, simplifies complex, emergency call handling operations by allowing Public Safety answering points to manage voice, text video and alerts through a single interface unlocking, unlocking, smarter routing and deeper. Integration allaria is also the engine for our broader service expansion. We are moving beyond, traditional 911 calls to handle, many other forms of information for a wide array of originating service providers. This includes data from wearables connect.

In fiscal 2025, Comtech had consolidated net sales of $499 5 million compared to $544 million in fiscal 'twenty four.

The change in sales reflects the anticipated wind down of certain legacy triple scatter contracts lower sales of Tripoli space components antennas, including those related to the CGC divestiture that we initiated in our fourth quarter of fiscal 'twenty four.

And the divestiture of our high powered solid state amplifiers product line in November of 2023.

These items were offset in part by higher sales of our <unk> and <unk> 91, emergency communication coal handling and location based solutions and Satcom solutions in our satellite in space segment, primarily satellite ground infrastructure solutions, and VSAT and similar equipment sales to the U S Army.

Cameras, fire panels vehicles, and traffic cameras by integrating. These inputs with Next Generation software tools. We provide critical situation awareness to ensure. First Responders are prepared to deliver the Emergency Services. The public needs. This strategy is proving successful, both domestically and abroad. As I stated last quarter, some of our key growth drivers include cloud-based products like a luring mea Next Generation. Call handling Solutions and 5G location-based Technologies for international customers. We are already executing on This Global strategy and expanding our International footprint. As I can confirm that during the fourth quarter yium secured over 6.5 million, in new contracts for work in South, Australia and Canada.

Kenneth Traub: One moment while we queue. We'll take our first question from Matthew Maus with B. Riley. Please go ahead. Your line is open. Matthew, I'm from Mike Crawford. Thanks for taking my questions. I guess to start off, regarding the $130 million carrier contract, I'm assuming it hits Q2 2026 bookings. Can you help us model some of the economics in terms of the contract duration, how the revenue is expected to ramp, and whether you think it kind of represents a meaningful step up in Elerium's growth trajectory? Thanks for the question, Matthew. We're not going to give a lot more specifics for commercial and competitive reasons. We'll say that it's at least a $130 million contract. It is a long-term commitment with a major customer, and we believe it gives us an opportunity to build significantly around that. Jeff Robertson's on the call.

Gross margin as a percentage of net sales was 25, 6% for fiscal 2025 compared to 29, 1% in fiscal 2024.

Fiscal 2025 margins reflect an $11 $4 million noncash charge in our first quarter from inventory write downs related to restructuring within our satellite and space segment.

Our quarterly gross profit both in dollars and as a percentage of consolidated net sales improved sequentially throughout fiscal 2025.

Statewide innovative next-generation 911 networks, with decades of experience in dispatch centers around the world, enable our agency to expand beyond voice to multimodal, data-rich requests for help. This integration of network and dispatch technology gives us a distinct ability to help them manage complex emergencies.

Over the course of the fiscal year, we improved our quarterly consolidated GAAP operating income from a loss of $129 2 million in the first quarter to income of $1 9 million in the fourth quarter.

As previously disclosed, the company has been reviewing strategic alternatives with the assistance of nationally recognized investment bankers. We will only be providing updates on these processes if and when we have something specific to share. At this point, there is nothing to share with that. I'll turn the call over to Mike to walk through the financials. Mike.

Reductions in quarterly expenditures for SG&A expenses contributed to this improvement.

Thank you, Ken, and good afternoon, everyone.

As outlined in the company's annual report on Form 10-K for fiscal 2025.

Net loss attributable to common shareholders was $204 3 million compared.

Before getting into the detailed results, I would like to first summarize this past quarter. Sequentially, our consolidated GAAP operating results were better than our third quarter of fiscal 2025.

Compared to a $135 4 million in fiscal 2024.

Further reduced our operating expenses.

In aggregate fiscal 2025 results were impacted by a $187 5 million of net charges.

Kenneth Traub: Jeff, do you want to add anything? No, Ken, I think you covered it well. We're just encouraged by this customer, and the long-term backlog that it represents gives us some confidence in the future. That's all I would add to that. Got it. Thanks. I guess I do want to clarify, Matthew, that this is an existing customer that is making a going-forward long-term commitment. It's a very significant milestone for us, right? This locks in one of our most important customers in the Elerium business, and it's an anchor of stability that we will be building around. Got it. Thank you for that. You provided some preliminary first quarter 2026 guidance. I guess given the government shutdown impact and the pull forward you mentioned, how should we think about the quarterly cadence through fiscal 2026? Okay. We're a company that doesn't give guidance.

Generated positive gap operating income for the first time in over five quarters.

Of which $167 1 million were noncash.

Further increased our adjusted EBITDA and achieved our second consecutive quarter of positive cash flows from operations.

Our net loss attributable to common shareholders improved sequentially throughout fiscal 2025, due primarily to improved operational and financial performance as Ken just explained.

The Aerium segment continues to perform well, securing several large multi-year contract extensions from key customers.

Adjusted EBITDA loss for Comtech in fiscal 2025 was $2 million compared to adjusted EBITDA income of $45 7 million.

Our satellite and space communication segment has been rejuvenated, and improvements are evident with sequential growth in net sales, gross profit, operating income, adjusted EBITDA, and operating cash flows.

In fiscal 2024.

This change primarily reflects the anticipated lower consolidated net sales and gross profit in fiscal 2025, both in dollars and as a percentage of consolidated net sales and including an $11 $4 million noncash charge in our first quarter related to the write down of inventory.

We were also successful in reducing corporate unallocated operating expenses during the more recent fiscal year quarter.

And higher selling general and administrative expenses, driven by a $16 $1 million noncash charge in our first quarter related to the allowance for doubtful accounts.

While there are always opportunities for greater efficiency, the transformation plans at Ken described earlier, have not only stabilized our business, but have also strengthened our financial condition and opportunities for further growth.

Offset in part by lower company funded research and development expenses in light of increased levels of customer funded initiatives.

I'm going to review our financial results for fiscal 2025 first, then discuss results for the fourth quarter.

Overall, we experienced sequential quarterly improvements in adjusted EBITDA throughout fiscal 2025 with improvements ranging from negative $30 $8 million in our first quarter to positive $13 3 million and our fourth quarter.

In fiscal 2025, comtech had Consolidated net sales of 499.5 million compared to 5 4, 0. 4,

Kenneth Traub: We did for Q1 because Q1 is already complete. What we can tell you is we do believe that business will continue to improve throughout fiscal 2026 and beyond. We've achieved a lot of improvements that I've detailed in my remarks, and we do anticipate improvements in the quarters following Q1. Got it. All right. Bookings and the book-to-bill ratio both improved sequentially. I'm just wondering if you can lay that out one more time. What's kind of driving that improvement towards getting that above one in fiscal 2026? At which segment specifically do you see the most strength for that? Mike, do you want to handle that question? Sure, Ken. In terms of our book-to-bill ratio, just always keep in mind that, as you just heard us announce today, we had a very large contract, a multi-year contract award that was booked in November.

Net bookings in fiscal 2025 were $372 7 million compared.

The change in sales, reflects the anticipated windown of certain Legacy, troposcatter contracts, lower sales of triple e space components and antennas, including those related to the cgc devices that we initiated in our fourth quarter of fiscal 24.

Compared to $700 6 million in fiscal 2024.

Bookings in fiscal 2025 were impacted by a $36 4 million deep booking in the third quarter. Following the award of a protested low margin U S Army field services contract to the income provider.

These items were offset in part by higher sales of our alums NG 911, emergency communication call, handling and location-based Solutions.

Bookings in the prior year included a large multi year contract awarded to us from an N. G 91 customer in the northeastern region of the U S.

And Satcom Solutions in our satellite and space segment, primarily satellite ground infrastructure solutions and related equipment sales to the U.S. Army.

Context funded backlog as of July 31, 2025, with $672 1 million.

Compared to $798 9 million as of July 31, 2024, and $708 $1 million as of April 32025.

Gross margin as a percentage of net sales was 25.6% for fiscal 2025, compared to 29.1% in fiscal 2024.

For clarity such backlog does not yet include the $130 million plus multi year contract extension just recently awarded to malaria.

Fiscal 2025 margins, reflect an 11.4 million non-cash charge in our first quarter from inventory, right? Downs related to restructuring within our satellite in space segment.

Fiscal 2025, GAAP cash flows used in operations were $8 3 million a significant improvement from the $54 5 million of cash flows used in operations last year.

Our quarterly growth profit both in dollars and as a percentage of Consolidated net sales improved sequentially throughout fiscal 2025.

Kenneth Traub: That's something that we would not expect to repeat. Overall, I think we're very excited about our progress in Elerium's success in international markets. That's been a focus of ours, and it's nice to see that we're getting some bookings there as well. I think working through the government shutdown, we don't think it's going to be permanent. I would think that the cadence will pick up once we get past this shutdown period. Thank you. Last one for me, just quickly on, I think previously you mentioned the EDIM certification was expected prior to calendar year-end. I'm just wondering where things stand now. Are you through the certification, and what would the ramp look like? Matthew, could you clarify your question? What was it that you were asking about, a certification?

Fiscal 2025 cash flows include $23 million in aggregate payments for restructuring costs, including severance proxy solicitation costs and CEO transition costs.

Over the course of the fiscal year. We improved our quarterly Consolidated Gap operating income from a loss of 129.2 million in the first quarter to income of 1.9 million in the fourth quarter.

Reductions in quarterly expenditures for sgna expenses, contributed to this Improvement.

This compares to $16 million in fiscal 2024.

As outlined in the company's annual report on form, 10K for fiscal 2025.

Fiscal 2025 also includes cash payments for interest and taxes of $29 6 million as compared to 23 million in fiscal 'twenty four.

Net loss attributable to Common shareholders was 204.3 Million. Compared to 1 3, 5. 4, 2 4.

Throughout fiscal 2025, Comtech had sequential quarterly improvements in operating cash flows improving from negative $21 8 million of operating cash flow and our first quarter, two positive $11 $4 million in our fourth quarter.

In aggregate fiscal 2025 results were impacted by 187.5 million of net charges of which 167.1 million were non-cash.

Pivoting now to our results for the fourth quarter of fiscal 2025 consolidated net sales were $134 million compared to $126 2 million in.

Our net loss attributable to Common shareholders. Improved sequentially throughout fiscal 2025 due primarily to improved operational and financial performance as Ken just explained.

In the fourth quarter, a year ago, and $126 8 million in the third quarter of fiscal 2025.

Kenneth Traub: Yeah, the EDIM certification in terms of it being, it was previously expected prior to year-end. I'm wondering if there's an update on that. Okay. I think you're referencing the EDIM program. We reference it as EDIM. Right, EDIM. Yes. Maybe that's a question best answered by Dan Guzinski. Yes, I'll start off by saying that that program has been progressing. We definitely are excited that we're getting towards the tail end of our non-recurring engineering phase and moving to production, which is in our wheelhouse. I'll turn it over to Daniel. Yeah, thanks for the question. High level on the EDIM program, I think the expectation that we had communicated is that we would be delivering initial prototype equivalent products to begin the certification process prior to calendar year-end.

The fourth quarter benefited from earlier than anticipated orders in both segments offset in part by a $3 $5 million charge in our fourth quarter due to higher than expected cost at completion on a nonrecurring development project within our satellite in space segment.

In fiscal 2024.

Gross profit in the fourth quarter of fiscal 2025 was $40 7 million.

This change primarily reflects the anticipated, lower Consolidated, net sales, and gross profit in fiscal 2025 both in dollars. And as a percentage of Consolidated in it sales and including an 11.4 million, non-cash charge in our first quarter related to the right down of inventory.

Or 31, 2% of net sales representing a substantial 52% increase from the $27 1 million or 21, 5% of net sales in the fourth quarter last year.

And higher selling General and administrative expenses driven by a 16.1 million non-cash charge in our first quarter related to the allowance for de accounts.

Gross profit in the more recent quarter also represents a four 6% sequential increase from the $38 9 million or 37% of net sales in our third quarter of fiscal 2025.

We continue to make progress in improving our product mix, including our ongoing shift back to higher volume production orders in our satellite ground infrastructure solutions product line as certain legacy low or no margin nonrecurring engineering contracts, drawing nearer to completion.

Kenneth Traub: We are still expecting to see that final certification phase that we're going to work through collaboratively with the US government. It certainly will be dependent on the delivery of those units as well as coordination with various different government entities to conduct that final certification. That will take place over the earlier parts of calendar 2026, with, I think, some flexibility in that schedule. We are continuing to make good progress and are still expecting to have those units delivered in place to begin the certification process prior to our calendar year-end. Got it. Great. Thanks for taking my questions. I'll have that continue. Thank you, Mike. Thank you. Thanks for the questions. Thank you. Once again, that is star and one on your telephone keypad if you would like to join the queue. We'll pause a moment to allow any further questions to queue.

Overall, we experienced sequential quarterly improvements in adjusted. EBA throughout fiscal 2025 with improvements ranging from negative -30.8 million in our first quarter to positive 13.3 million, in our fourth quarter.

Net bookings. In fiscal 2025 were 372.7 million compared to 700.6 million in fiscal 2024.

And our fourth quarter of fiscal 2025, we continued our trend of lowering GAAP operating expense in particular SG&A such reduction resulted in our ability to report positive operating income in our fourth quarter of $1 9 million, which compares to an operating loss of $1 5 million in the prior quarter and in <unk>.

Bookings in fiscal 2025 were impacted by a 36.4 million D booking. In the third quarter, following the award of a protested low margin US, Army Field Services contract to the incumbent provider. Also bookings in the prior year, included a large multi-year contract, awarded to us from an NG 911 customer in the northeastern region of the US.

Operating loss of $81 5 million in the fourth quarter of fiscal 2024.

These improvements in our financial performance also resulted in consolidated adjusted EBITDA for the fourth quarter to increase to $13 3 million compared to $3 million in the fourth quarter of last year and $12 6 million in the third quarter of this year.

Context funded backlog, as of July 31st, 2025 with 672.1 million compared to 798.9 million. As of July, 31st, 2024 and 708.1 million as of April 30th 2025

As mentioned fourth quarter fiscal 2025 cash flows provided by operations were $11 4 million a substantial improvement from the $9 $5 million of cash flows used in operations in the fourth quarter of 2024.

For clarity such backlog does not yet include the 130 million plus multi-year contract extension just recently awarded to Arium.

Kenneth Traub: I wish you no further questions at this time. I will now turn the call over to Ken Traub for closing remarks. Well, I'd like to thank you all for joining us today. As a final message, in anticipation of Veterans Day tomorrow, I would like to express our gratitude to all those who have served our country. Thank you all very much. Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time. Thank you.

And the $2 3 million of cash flows provided by operations in the third quarter of this year.

Fiscal, 2025 Gap. Cash flows used in operations. Were 8.3 million. A significant improvement from the 54.5% operations last year.

The improvement in this metric is due to operational enhancements and a revitalized culture with aligned focus on optimizing cash flow, which in part contributed to earlier than anticipated collections in our fourth quarter of fiscal 2025.

Fiscal 2025 cash, flows include 23 million in aggregate payments for restructuring costs, including Severance proxy solicitation costs and CEO transition costs.

This compares to 16 million dollars in fiscal 2024.

Now turning to the balance sheet and as discussed in more detail in our SEC filings. We recently amended our credit facilities. These amendments among other things provided for the occurrence of a $35 million incremental subordinated priority term loan. The net proceeds of which were used to prepay without premium $28 5 million.

Fiscal 2025 also includes cash payments for interest and taxes of 29.6 million has compared to 23 million in fiscal 24.

Of outstanding term loans and $5 8 million.

Of the outstanding revolver loan under the credit facility.

Throughout fiscal 2025 comp had sequential quarterly improvements in operating cash flows, improving from negative -21.8 million of operating cash flow in our first quarter to positive 11.4 million in our fourth quarter.

Importantly, it suspends until the four quarter period, ending January 31, 2027 testing of a net leverage ratio the fixed charge coverage ratio and the minimum EBITDA covenants.

They alter the interest rates applicable to term loans under the credit facilities.

Pivoting. Now to our results for the fourth quarter of uh, fiscal 2025 Consolidated, net sales were 130.4 million compared to 126.2 million in the fourth quarter a year ago and 126.8 million in the third quarter of fiscal 2025.

Delayed the scheduled repayment of a portion of the principal on the term loans and fees due pursuant to the second amendment to the credit facility.

The amendment reduced the minimum EBITDA requirements reduce the minimum quarterly average liquidity requirements from $17 $5 million to $15 million.

Permanently reduced commitments under the credit facilities revolver loan by $2 1 million and obligated the company to enter into management incentive and retention arrangements for its key personnel.

Such amendments also permit us to engage in the sale or disposition of certain properties and assets.

Gross profit in the fourth quarter of fiscal 2025 was 40.7 million or 31.2% of net sales representing a substantial 50.2%, increase from the 27.12% of net sales in the fourth quarter last year.

<unk> by the administrative agents subject to the conditions to use net cash proceeds proceeds from such sale to repay outstanding principal amounts of the obligations under our credit facilities.

Gross profit in the more recent quarter also represents a 4.6% sequential increase from the 38.930% of net sales in our third quarter of fiscal 2025.

<unk> these amendments provide contact with enhanced financial flexibility.

In terms of our liquidity and outstanding debt obligations at July 31, 2025, our available sources of liquidity totaled $47 million.

Total outstanding borrowings under our credit facility were $133 9 million of which $17 6 million was drawn on the revolver.

We continue to make progress in improving our product mix, including our ongoing shift back to higher-volume production orders in our Satellite Ground Infrastructure Solutions product line, as certain legacy low or no margin non-recurring engineering contracts draw nearer to completion.

Total outstanding borrowings under our subordinated credit facility were $100 1 million exclude.

in our fourth quarter of fiscal 2025, we continued our trend of lowering Gap operating expense in particular sgna,

Excluding the $25 $7 million make whole amount associated with the $65 million portion of such facility through July 31, 2025, and the liquidation preference of our outstanding convertible preferred stock was $204 $2 million, excluding potential increases that could be triggered by among other things asset sales and.

Such reduction resulted in our ability to report positive operating income in our fourth quarter of $1.9 million, which compares to an operating loss of $1.5 million in the prior quarter and an operating loss of $81.5 million in the fourth quarter of fiscal 2024.

There are changes in control of the company.

Before turning it back over to Ken I will now provide a brief update on our consolidated performance for the first quarter of fiscal 2026.

3 million compared to 3 million in the fourth quarter of last year, and 12.6 million in the third quarter of this year.

While we currently have a policy of not providing guidance our full year targets given the unique situation of having our fiscal 2025 earnings call. After the end of our first quarter of fiscal 2026, we felt that an update in this instance, albeit preliminary would be appropriate.

As mentioned, fourth quarter fiscal 2025, cash flows. Provided by operations were 11.4 million, a substantial improvement from the 9 and a half million dollars of cash flows used in operations in the fourth quarter of 2024.

And the $2.3 million of cash flows provided by operations in the third quarter of this year.

For the fiscal quarter ended October 31, 2025, we are currently estimating the following consolidated results net sales to approximate a range of $107 million to $113 million.

Compared to $115 $8 million in the first quarter of fiscal 'twenty five.

The Improvement in this metric is due to operational, enhancements and are revitalized culture with aligned focus on optimizing cash flow, which in part contributed to earlier than anticipated collections in our fourth quarter of fiscal 2025.

Cash flow provided by operating activities to approximate a range of 6 million to $7 million.

Compared to cash flow used in operating activities of $21 8 million in the first quarter of fiscal 'twenty five.

And liquidity defined as our qualified cash and cash equivalents and available portion of our revolver loan under our credit facility as of October 31, 2025 was $51 million.

Performance in the first quarter of fiscal 2026 is expected to reflect among other things the impacts of earlier than anticipated orders net sales and cash collections that we just discussed as well as certain contracts nearing completion in the fourth quarter of fiscal 2025.

Now turning to the balance sheet and as discussed in more detail in our SEC filings, we recently amended our credit facilities. These amendments among other things provided for the incurrence of a 35 million incremental. Subordinated priority Term Loan, the net proceeds of which were used to prepay without premium 28 and a half million dollars of outstanding term loans and 5.8 million of the outstanding revolver loan under the credit facility.

Importantly, it suspends until the 4 quarter period ending. January, 31st 2027, testing of the net, leverage ratio, the fixed charge coverage ratio and the minimum Eva Covenants.

Additionally performance in the first quarter of fiscal 2026, particularly in our SNF segment is expected to reflect the impacts of timing delays and orders net sales and cash collections as a result of the U S government shutdown as well as the decision to phase out and eliminate certain low margin revenue.

They altered the interest rates applicable to term loans under the credit facilities.

It was delayed. The scheduled repayment of a portion of the principal on the term loans and fees due pursuant to the Second Amendment to the credit facility. The amendments reduced the minimum EBITDA requirements and lowered the minimum quarterly average liquidity requirements from $17.5 million and $1.5 million to $15 million.

While not providing full year guidance or specific targets, we do expect performance to improve in subsequent quarters of fiscal 2026.

Additional details will be provided when we file our Form 10-Q for the first quarter of fiscal 2026.

Permanently reduced commitments under the credit facilities, revolving loan by $2.1 million, and obligated the company to enter into management incentive and retention arrangements for its key personnel.

Also as a reminder, statements about our anticipated results are subject to the cautionary language on forward looking statements forward looking statements included at the start of this call as well as in our various SEC filings now.

Let me turn the call back over to Ken Ken.

Such amendments also permit us to engage in the sale or disposition of certain properties and assets approved by the administrative agents, subject to the conditions to use net cash proceeds from such sale to repay outstanding principal amounts of the obligations under our credit facilities.

Thank you Mike to sum up briefly.

Collectively, these amendments provide contact with enhanced financial flexibility.

Comtech has been successfully executing the transformation plan that I announced in January which has not only helped to drive context significantly improved operating and financial performance, but also has enabled us to improve relationships with current and prospective employees customers vendors and creditors.

In terms of our liquidity and outstanding debt obligations at July 31st, 2025 our available sources of liquidity, total 47 million.

Total outstanding borrowings under our credit facility were 133.9 million of which 17.6 million was drawn on the revolver.

I believe this leads to a flywheel effect and which improved relationships create healthier dynamic for the business going forward and ultimately further improvements in operating and financial performance.

As a reminder, Jeff and Daniel will be joining us for the Q&A with that operator, please open the call to any questions.

Thank you.

And at this time I would like to ask a question. Please press star one on your telephone keypad.

Total outstanding borrowings under our subordinated. Credit facility were 100.1 million excluding The 25.7 Million May call amount associated with the 65 million portion of such facility through July, 31st 2025 and the liquidation preference of our outstanding convertible. Preferred stock was 204.2 Million. Excluding potential increases, that could be triggered by among other things, asset sales, and or changes in control of the company.

We draw your question Mike.

Star two.

Once again to ask a question. Please press the star and one on your telephone keypad, one moment, while we queue.

Before turning it back over to Ken, I will now provide a brief update on our Consolidated performance for the first quarter of fiscal 2026.

And we'll take our first question from Matthew <unk> with B Riley. Please go ahead.

Dan.

As Matthew on for Mike Crawford, Thanks for taking my questions.

While we currently have a policy of not providing, guidance or full year targets, given the unique situation of having our fiscal 2025 earnings call. After the end of our first quarter of fiscal 2026, we felt that an update in this instance will be a preliminary, would be appropriate.

Just to start off regarding the $130 million of carrier contract on.

I'm assuming it is.

<unk> 26 bookings.

This model some of the economics in terms of the contract duration.

Other revenues are expected to ramp in.

For the fiscal quarter ended October 31st 2025, we are currently estimating the following Consolidated results, net sales to approximate a range of 107 million to 113 million compared to 115.8% of fiscal 25.

And whether you think it kind of represents a meaningful step up in <unk> growth trajectory.

Victory.

Yeah.

Thanks for the question Matthew So.

Cash flow provided by operating activities to approximate a range of 6 million to 7 million compared to cash flow used in operating activities of 21.8 million in the first quarter of fiscal 25.

<unk>.

We're not going to give a lot more specifics.

For commercial and competitive reasons.

I will say that.

It's at least $130 million contract. It is a long term commitment with a <unk>.

And liquidity defined as our qualified cash and cash equivalents and available portion of our revolver. Loan under our credit facility as of October, 31st, 2025 was 51 million.

A major customer.

And we believe it gives us an opportunity to build significantly around that.

Jeff Robertson is on the call Jeff do you want to add anything.

Performance in the first quarter of fiscal 2026 is expected to reflect among other things. The impacts of earlier than anticipated orders, net sales and cash collections that we just discussed as well as certain contracts nearing completion in the fourth quarter of fiscal 2025.

No I think you've covered it well, we're just encouraged by this customer and its.

Yes.

Long term backlog that represents.

Some confidence in the future.

That's all I would add to that.

Got it thanks.

The U.S. government shutdown, as well as the decision to phase out and eliminate certain low-margin revenue.

So I do want to clarify Matthew.

This.

This is an existing customer.

While not providing full guidance or specific targets, we do expect performance to improve in subsequent quarters of fiscal 2026.

Making a going forward.

Long term commitment.

But as it is it's a very significant milestone for US right. This locks in a along.

Additional details will be provided when we file our form, 10 Q for the first quarter of fiscal 2026.

One of our most important customers in the malaria business.

Also, as a reminder, statements about our anticipated results are subject to the questionnaire language on forward-looking statements included at the start of this call, as well as in our various SEC filings. Now,

It's an anchor of stability.

Let me turn the call back over to Ken Ken.

That we will be building around.

Thank you. Mike to sum up briefly.

Got it thank you for that and you provided some of that.

First quarter of 2006 guidance I guess, given the government shutdown impact and the pull forward and you mentioned how should we think about the quarterly cadence through fiscal 'twenty six.

Okay. So we're a company that doesn't give guidance we did for Q1.

Because.

Q1 is already complete so.

What we can tell you is we.

We do believe that.

Comtech has been successfully executing the transformation plan that I announced in January, which is not only helped to drive context significantly, improved operating and financial performance, but also has enabled us to improve relationships with current and prospective employees, customers vendors and creditors. I believe this leads to a flywheel effect in which improved relationships, create a healthier Dynamic for the business going forward, and ultimately further improvements and operating and financial performance.

Business will continue to improve throughout.

Fiscal 2026 and beyond we've now.

As a reminder Jeff and Daniel will be joining us for the Q&A. With that operator, please open the call to any questions.

We've achieved a lot of improvements that I detailed in my remarks and we.

To ask a question, please press the star and 1 on your telephone keypad.

We do.

Anticipate.

You may withdraw your question by pressing *2.

Improvements in.

The quarters following Q1.

Got it alright, and so bookings bookings and book to Bill ratio, both improved sequentially I'm. Just wondering if you can lay that out one more time, what's kind of driving that improvement towards getting that above above one and fiscal 'twenty six.

Once again to ask a question, please press the star and 1 on your telephone keypad 1 moment, while we queue.

And we'll take our first question from Matthew Mouse with B. Riley, please go ahead, open.

I'm Matthew on from Mike. Crawford, thanks for taking my questions.

Where which segment specifically do you see the most strength of that.

Mike do you want to handle that question.

Sure Ken.

In terms of our book to Bill ratio, just always keep in mind that.

<unk>.

As you just heard us announce today and we had a very large contract a multiyear contract award that was booked in November. So that's something that we would not expect to repeat but overall I think we're very excited about our progress in.

I guess to start off regarding the 130 million carrier contract. I'm assuming it hits 2 Q 26, bookings, can you help us model? Some of the economics in terms of the contractor duration, how it's How the revenue is expected to ramp and, and whether you think it kind of represents a meaningful step up in a Liam's, growth trajectory

Uh, thanks for the question, Matthew. So it's

<unk> success in international markets, that's been a focus of ours and it's nice to see that we're getting some bookings there as well.

And I think working through the government shutdown, we don't think it's going to be permanent and I would think that the cadence.

We will pick up once we get past the shutdown period.

Yeah.

We're not going to give a lot more specifics, uh, for, you know, commercial and competitive reasons. We'll we'll say that. It's, it's a it's at least $130 million contract. It is a long-term commitment with a uh a major customer and uh we believe it gives us an opportunity to build significantly around that. Um Jeff Roberts is on the call. Uh Jeff, do you want to add anything?

Thank you and last one for me just quickly on I think previously you mentioned the EAM certification was expected prior to calendar year end, just wondering where things stand now through the certification.

No, Ken, I think I think you covered it. Well, we're just, uh,

encouraged by this customer and it's

The ramp look like.

Long-term backlog that it represents, we can just some confidence in the future.

That's all I would add to that.

Could you clarify your question what was it that you were.

Asking about a certification.

Got it. Thanks. And I guess so, what I do want to clarify, Matthew, is that this, um,

Yes.

Certification in terms of it being industry with expected prior to year end I'm wondering if there's any update on that.

Okay, I think youre referencing the Ido program, we referenced it is with them.

Right.

Yes, maybe that's a question best answered by Dan Kaczynski.

Yes, I'll start off by saying that that program has been progressing.

This is is an existing customer that is making a going forward long-term commitment, uh, and, uh, but it is, it's it's a very significant milestone for us, right? This locks in a, a, a long, a a very 1 of our most important uh customers and the yin business, um and it's an anchor of stability uh, that we will be building around.

Currently are.

Excited that we're getting towards the tail end of our non recurring engineering phase and moving to production, which is in our wheelhouse, but I'll turn it over to Daniel.

Yes. Thanks for the question so high level on the <unk> program I think the expectation that we had communicated is that we would be delivering initial prototype equivalent.

Got it. Thank you for that. You provided some preliminary first quarter 2026 guidance. Given the government shutdown impact and the pull forward you mentioned, how should we think about the quarterly cadence through fiscal 2026?

<unk> to begin the certification process prior to calendar year end, we are still expecting to see that.

Final certification phase that we're going to working collaboratively with the us government.

Certainly will be dependent on the <unk>.

Delivery of those units as well as coordination with various different.

And entities to conduct that final certification and that will take place over.

Yes, the earlier parts of calendar 'twenty six with I think some flexibility on that schedule, we are continuing to make good progress.

And are still expecting to have those.

Okay. So we're we're a company that doesn't give guidance. We did for q1, uh, uh, because it, you know, the q1 is already complete. So, uh, what we can tell you is, uh, we we do believe that, uh, business will continue to improve throughout, uh, fiscal 2026 and Beyond we've. Now, um, we've achieved a lot of improvements that I've detailed in my remarks and, uh, we do anticipate, uh, improvements in the, the, uh, the quarters following q1.

<unk>.

Delivered in place to begin the certification process prior to our calendar year end.

Got it great. Thanks for taking my questions and I'll hop back in the queue.

Thank you Matthew Thanks for the questions.

Thank you and once again that is star one on your telephone keypad, if you would like to join the queue.

Got it. All right. And so, booking from the book, the bill ratio both improved sequentially. I'm just wondering if you can lay that out one more time. What's kind of driving that improvement towards getting that above 1 in fiscal 2026? And like, where and which segment specifically do you see the most strength for that?

One woman to allow any further questions to queue.

Mike, you want to handle that question.

We show no further questions at this time I will now turn the call over to Ken <unk> for closing remarks.

Well I'd like to thank you all for joining us today and as a final.

Message in anticipation of Veterans day Tomorrow, I would like to express our gratitude to all of those who have served our country. Thank you all very much.

Thank you.

This does conclude today's program.

Thank you for your participation you may disconnect at any time.

Thank you.

Uh, sure Ken uh, in terms of our book to Bill ratio, just always keep in mind that, uh, as you just heard us announced today, you know, we had a very large contract, a multi-year contract award that was, uh, booked in November. So that's something that we would not expect to repeat, but overall, I think we're, uh, very excited about our progress in. Uh, polarium success and international markets. That's been a focus of ours and it's nice to see that we're getting some bookings there as well. Uh, and I think, uh, working through the government shutdown of, you know, we don't think it's going to be permanent and I would think that the Cadence, uh, we'll pick up once we get past the, the shutdown period.

Thank you. And last 1 for me just quickly on. I I think previously you mentioned the eim certification was expected prior to calendar year end. I'm just wondering where things stand now. Like, are you through the certification and and what was the ramp look like

Matthew? Could you clarify your question? What was it that you were, uh, asking about a certification?

Yeah, the EDI certification in terms of it being it was previously expected. Prior to year end, I'm wondering if there's an update on that.

Okay, I think you're referencing the Eden program. We reference it as Edom.

Right Edom.

Yes, uh, maybe that's a question best answered by Dan Guzinski. Um, but yes, I'll start off by saying that that program has been progressing. We definitely are excited that we're getting towards the tail end of our non-recurring engineering phase and moving to production, which is in our wheelhouse. Uh, but I'll turn it over to Daniel.

Yeah, thank thanks for the question. So, uh, high level on the Eden program. I think the, uh, the expectation that we had communicated is that we would, um, be delivering initial prototype equivalent, uh, products to begin the certification process prior to calendar year end. We are still expecting to see that that um, final certification phase that we're going to work through collaboratively with the US government. Um, certainly will be dependent on, you know, the delivery of those units as well as coordination with various different. Um, government entities to conduct that final certification and that will take place over

Um, yeah, the earlier part of calendar 26 with, uh, I think some flexibility in the schedule. We are continuing to make good progress. Uh, and are still expecting to have uh, those units, uh, delivered in place to begin the certification process, prior to our calendar year end

All right. Great. Thanks for taking my questions. I'll have back. Thank you.

Thank you. Thank you. Thanks for the questions.

Thank you. And once again,

And 1, are you?

A woman to allow any further questions to queue.

I wish you. No further questions at this time. I will now turn the call over to Ken trout for closing remarks.

Well I I'd like to thank you all for for joining us today and uh and it's a final message in anticipation of Veterans Day tomorrow. I would like to express our gratitude to all those who have served our country. Thank you all very much.

Thank you. And this does conclude today's program.

Thank you for your participation. You may disconnect at any time.

Thank you.