ADDvantage Technologies Group, Inc.

Good day, and welcome to the Advantage Technologies Fiscal 2022 Third Quarter Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Brett Moss, Hayden IR. Please go ahead, sir.

Thank you, Operator. We are joined today by Joe Hart, President and CEO, as well as Michael Rutledge, the company's Chief Financial Officer. Before we begin today's call, I'd like to remind you that this conference call may contain certain forward-looking statements which are subject to Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events, such as the ability of Advantage Technologies and its subsidiaries to maintain strategic relationships and agreements with certain original equipment manufacturers and multiple system operators, as well as future financial performance of Advantage Technologies. These statements involve a number of risks and uncertainties. Participants are cautioned that these forward-looking statements are only predictions and may materially differ from the actual future events or results due to a variety of factors such as those contained in Advantage Technologies' most recent report on Form 10-K on file of the Securities and Exchange Commission. Financial information presented on this conference call should be considered in conjunction with the consolidated financial statements and notes included in the company's press release issued earlier today and included in Advantage Technologies' most recent report on Form 10-K. The guidance regarding anticipated future results on this call is based on limited information currently available on Advantage Technologies, which is subject to change. Although any such guidance and factors influencing it may change, Advantage Technologies will not necessarily update the information. As the company will only provide guidance at certain points during the year, such information speaks as only of the date of today's call. During this call, we may also present certain non-GAAP financial measures, such as non-GAAP net income and certain ratios that are used with these measures. In our press release and in the financial table issued earlier today, which are located at our website at advantagetechnologies.com, we will find a reconciliation of these non-GAAP financial measures, the closest GAAP financials, and discussion about why we believe these non-GAAP financial measures are relevant. These financial measures are included for the benefit of investors and should be considered in addition to, not instead of, GAAP measures. With that out of the way, I'd like to announce on the call Joe Hart, President and Chief Executive Officer of Advantage Technologies. Joe, please go ahead.

Thank you, Brett, and thank you to everyone joining us on the call today. This was another record quarter for us with positive net income of $875,000 and a 63% increase in revenue compared to last year and 17% over the previous quarter. To put our improved financial performance into context, through nine months of fiscal 2022, we have surpassed revenue for all 12 months of fiscal 2021. by more than $8 million or about 13%. Perhaps more importantly, we achieved GAAP profitability in the quarter with earnings per share of 7 cents per share. This was the fourth quarter in a row with wireless revenue over $7 million and continued growth in 5G tower work for our wireless division. We also benefited from continued strong growth in our telco business reflecting continued demand for our optical transport, switch, router, and enterprise network offerings. Both sides of our business are performing well, with double-digit revenue growth and increasing gross margins. The result is total company revenue of nearly $28 million for the quarter, more than we generated in the first two quarters last year, and up 63% year over year. Our telco segment delivered a historical record for both revenue and margin for the quarter. NAVE Communications reported almost as much revenue this quarter as they did for all of fiscal year 2020. Triton Datacom's revenues for Q3 were almost half of last year's total revenue. We expect this encouraging revenue trend to continue for some time into fiscal 2023. Telco has been helped somewhat by the global supply chain and chip shortage issues that continue. But more importantly, the shift in focus to optical and wireless products and change in business unit leadership has driven the success in Telco. The wireless cost reduction initiatives we introduced during the second fiscal quarter and that continued into the third fiscal quarter drove a significant improvement in gross margins and lower expenses helped lead to GAAP profitability in the third quarter. This contributed to our first quarter of GAAP profitability since the third quarter of fiscal 2020. We have targeted approximately $2.4 million in reduced wireless expenses on an annual basis, and we are on track to see those annual savings over the next several quarters. Wireless revenue related to tower work and other aspects of the 5G rollout has already increased by 61% year-to-date compared to last year. Year over year, we expect that it will continue to grow throughout this fiscal year and into fiscal 2023. Our growth continues to be broad-based, involving all four carriers. including both longstanding customers and new players in the market. The work touches all the regions we service, spread across the center of the United States. Our pipeline of new projects, meaning work we have been awarded where we are waiting for purchase orders as permitting is complete, gives us significant confidence that the growth will continue in the near term. The 5G opportunity represents a multi-year growth opportunity for tower work across all four of the major wireless carriers. Each of those carriers are investing billions of dollars in the expansion, and the CapEx plans of carriers are public and widely discussed. Our telco segment had a great quarter. And while the global supply chain and ship shortage issues were the original catalyst for the growth in our NAV and Triton businesses, The revenues and margin growth primarily have been caused by a pivot in focus by the new leaders of those business units, more heavily towards the optical transport, switch, router, and enterprise network offerings to the optical fiber network providers. This was the fifth consecutive quarter of revenue over $11 million for telco. And in fact, the $21 million in Q3 for the telco segment was an all-time record, the second quarterly record in a row. Our telco segment continues to generate solid and positive contribution margin to our company. There may be a leveling off of demand at some point in future quarters, albeit at a somewhat elevated level relative to the recent past. But we really believe that the change in focus on product strategy And the change in business unit leadership has positioned this segment nicely for continued success. I would like to close my remarks by giving a shout out to all of our management and staff for all of their hard work and long hours in keeping our customers happy and delivering a great quarter to our shareholders. I would also like to thank those investors that have remained with us through these past few years. We appreciate your support. With that, I'll now turn the call over to Michael Rutledge, our CFO, to provide a more detailed review of our financial results. Michael, please go ahead.