BK Technologies Corporation

Good morning, ladies and gentlemen, and welcome to the BK Technologies Corporation conference call for the second quarter of 2025. This call is being recorded. All participants have been placed on a listen-only mode. Following management's remarks, the call will be open for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is my pleasure to turn the floor over to your host for today, Jen Belladeau of IMS Investor Relations. Please go ahead.

Thank you, Holly. Good morning, and welcome to our conference call to discuss BK Technologies' results for second quarter 2025. On the call today are John Suzuki, Chief Executive Officer, and Scott Mellinger, Chief Financial Officer. I will take a moment to read the Safe Harbor statements. Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenue and profits. These statements are subject to known and unknown factors and risks. The company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements, and some of the factors and risks that could cause or contribute to such material differences have been described in this morning's press release and in B-case filings of the U.S. Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements. With that out of the way, I'll turn the call over to John Suzuki, CEO of BK Technologies. Please go ahead, John.

Thank you, Jen. Good morning. Thank you, everyone, for joining today. I'll start by reviewing some of the highlights of our operations and financial results during the second quarter, and then I'll turn over to our Chief Financial Officer, Scott Malmanger, for a deeper dive into our financial results. We'll conclude by opening the call for a brief Q&A. This was a strong quarter for us. Our BKR product line is being well received in the marketplace, and we're seeing the benefits of the strategic initiatives we have put in place to enhance and grow long-term profitability for shareholders. The strong operational execution is evidenced by continued revenue growth, significantly enhanced gross margin, and profitability. Second quarter revenue increased 4.5% to 21.2 million, consistent with the single-digit revenue growth we previously targeted for 2025. As I will address later in the presentation, it is now our expectation that revenue growth will be high single digits for 2025. Gross margin in the quarter improved significantly to 47.4% compared to 37.3% in the second quarter of 2024. Fully diluted GAAP EPS was 96 cents compared with 47 cents in the second quarter of 2024. On a non-GAAP basis, fully diluted adjusted EPS of $1.30 in the second quarter, meaningfully outpaced non-GAAP fully diluted adjusted EPS of 55 cents in the second quarter of 2024. During the second quarter, we launched RelayOne, a rapidly deployed portable repeater kit designed to extend range and facilitate interoperability among different types of public safety and military radios. RelayOne is a newly branded BK1 family of offerings focused on developing innovative interoperable communication solutions for first responders. In conjunction with the launch, we received a purchase order from Larimer County Sheriff's Office, based in Fort Collins, Colorado, for Relay 1, which will be used by their search and rescue team. Larimer County is a population of around 360,000, and Fort Collins is their most populous city and the county seat. Federal order activity began to pick up just after the close of the quarter, and during the month of July, we received several purchase orders from the USDA Forest Service totaling $12.9 million. The orders included the largest single purchase of the BKR 5000 since its debut and underscore our position as a leading communications provider in the federal wide land space. We also received orders from various federal, state, and local government agencies bringing the total order value to $17.8 million for the month of July alone. It appears that while Dodge, the Department of Government Efficiency, may have delayed the timing of the federal orders, federal budget money is now flowing. Slide four. Slide four illustrates our successful efforts to drive improved gross margins through the diversification of our product mix, our cost savings outsource manufacturing model, and discipline expense management. The 47.4% gross margin we achieved in the quarter is a significant improvement over last year and also improved on a sequential basis from 47 percent in the first quarter of 2025. With our visibility today and the U.S. tariff uncertainty mostly behind us, we increased our full-year margin target to at least 47 percent, reflecting our confidence in the trajectory of our business and improved operating model. Strong market demand for our VKR series radios has driven solid revenue growth. agencies at the local, state, and federal levels are choosing our advanced public safety communication solutions for their radio fleets. As I mentioned a moment ago, we saw significant federal order activity in the month of July, and we expect this to continue through the third quarter as wildland fire activity intensifies and the federal fiscal year comes to an end. We view the order activity we're seeing as validation of our high reliability and performance of our radios in mission-critical situations where there is zero margin for error. With that, I'll turn it over to Scott Malmanger, CFO, to give a more detailed overview of our second quarter financial performance. Go ahead, Scott.