CSP Inc.

fourth quarter and fiscal year 2023 conference call. At this time all participants are on a listen-only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Michael Poliview, IR at EVC Group. Sir, the floor is yours.

Thank you, Alex. Hello, everyone, and thank you for joining us to review CSPI's fiscal 2023 full-year results, which ended September 30, 2023. With me on the call today is Victor DeLobo, CSPI's Chief Executive Officer, and Gary Levine, CSPI's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we will then open the call for questions. Statements made by CSPI's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as the term is identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events in our subject. Several uncertainties, risks, and other influences, many of which are beyond the company's control, that may influence the accuracy of the statements and projections upon which the statements are based. Factors that may affect the company's results include, but are not limited, to the risks and uncertainties discussed in the risk factor section of the annual report on Form 10-K and the quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Forward-look at statements are based on the information available at the time those statements are made and management's good faith to lead as of the time with respect to future events. All forward-look at statements are qualified in their entirety by this cautionary statement and CSPI takes no obligation to publicly revise or update any forward-look at statements whether as a result of new information, future events, or otherwise, after the date thereof. With that, I'll turn it over to Victor DeLobo, Chief Executive Officer. Please go ahead.

Thanks, Michael, and good morning, everyone. Earlier this morning, we announced our fiscal 2023 four-year results, and I'm pleased to report we achieved revenue growth of 19% compared to fiscal 2020. I believe our strong performance is due to several factors, including the sustained contribution of the technology solution business, our ability to successfully convert a sizable portion of our backlog to revenue, and our proactive decision to leverage our strong balance sheet to finance large customer orders. Furthermore, we reported gross margin percentage of 34% and grew EPS well over 100% from prior year. All significant accomplishments that raises our confidence level that we can continue executing our strategy of transitioning the business to higher margin products and services. Moreover, we are continuing to experience positive momentum to kick off the 2020-2024 as we already achieved significant achievements in the technology solution in high performance product businesses. First, let me address the backlog issue. and then I will provide an overview of the TS business and then spend a few minutes highlighting some of our recent and exciting developments within the HPP business. As many of you already know, we entered fiscal 2023 with a level of uncertainty due to well-documented supply chain issues that impacted global economies. Specific to CSPI, the inability to receive key components from suppliers kept us from shipping orders to our new customers, raising our backlog to near record levels and dampening our revenue opportunities. However, as the supply chain issue began to ease up during the year, we started receiving some of these key components that were able to ship finished goods and reduce the backlog to a more normalized pre-pandemic level of approximately 7.6 million. I applaud the team's ability to remain engaged with the customers throughout this period. I believe our clients Loyalty demonstrates the value we bring to them because they recognize that the products and solutions are the most effective, cost-efficient answers to their critical needs. Our performance throughout the fiscal 2023 was driven by continued performance of our technology solution, or TS business, which grew compared to fiscal 2022. The success continues to be driven by our customers' increased use of implementation, installation, and training capabilities. Regarding the UCAS, it turned a corner in the second half of fiscal 2023, and it is now a profitable business. We believe we'll continue to see positive developments within the UCAS as we move forward through fiscal 2024. Now turning to our high-performance products and HPP business. We recorded total revenue of $6.9 million for the fiscal year compared to $3.8 million in fiscal 2022. The results were within our expectations. However, the level of optimism within the business is high and increasingly growing following the recent launch of AZT Protect. AZT's advancement allows us to offer our customers a giant leap forward in the evolution of cybersecurity solutions. AZT's performance surpasses what's available on the market today, and it's a new generation of endpoint application cybersecurity protection designed for both critical operational technology and IT environments. The unique patent solution protects a line of organizations' endpoints from a full spectrum of cyberattacks and intrusion techniques, including most advanced zero-day attacks, malware, ransomware, supply chain vulnerabilities, even those threats that are completely unknown to security teams. By deploying artificial intelligence capabilities, AZT halts attacks before damage occurs, ensuring seamless operations without disruption or downtimes. It lowers the risk code base of security vulnerabilities exploits on endpoints devices applications to near zero without the need of constant patching updates. Developed internally, we knew AZT was going to be a game changer for the HTTP business, so the team has significantly targeted several high profile conferences and seminars to raise awareness of AZT, including The 18th Annual API Cybersecurity Conference, which was held in Houston earlier this month for oil and natural gas industry. The Rockwell Automation Conference, which was also held last month in Boston, was the world's premier industrial automation and digital transformation event. The ICS Cybersecurity Conference, which was held in Atlanta in October, is the largest, longest-running event series focused on industrial cybersecurity. Since 2000, the conference has gathered ICS cybersecurity stakeholders across various industries and attracts operational and control engineers, IT, government, vendors, and academics. And then finally, the MANUSEC U.S. Summit, which was held in October in Chicago. MANUSEC is the premier conference for cybersecurity and manufacturing. addressing sectors' drives towards digital and automation and how imperative it is to balance it with security. We know this is a crowded field, so a visible on-site presence at these and other events was critical and allowed the team to engage and communicate with key influences and prospective clients, including Fortune 500 companies. The in-person feedback is quite positive. And the comment we often hear from them is, we see the need. for something like AZT. Subsequent to the end of fiscal 2023, we received orders from a Fortune 500 chemical manufacturing to protect its critical production application from all forms of attack, enabling production lines to continue running without disruption. We also received an order from a Western Intelligent Agency to protect its critical intelligence gathering and analysis operations from cybersecurity attacks. This new contract bills on ARIA cybersecurity, proven track record, and proven security solutions for military and intelligence agencies around the world. Additionally, we launched our AZT Protect solution in Australia via partnership with Logitech, a leading local managed security service provider. By adding AZT Protect to its portfolio, Logitech can offer a groundbreaking service protecting critical applications in operational technology and IT environments, such as manufacturing, mining, and government. To summarize, we gathered strong growth in our fiscal 2023 and positioned the company for even greater success in the coming years. Although the TS business has been the growth driver over the past few years, the emergence of AZT offering has changed the dynamics and gives us two businesses that can grow side by side and provide consistent growth with significant upside potential. With that, I will now ask Gary to provide a brief overview of the fiscal year's financial performance.