CSP Inc.

Good day, everyone, and welcome to the CSPI's fiscal fourth quarter and full year 2025 conference call. At this time, all participants are placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Michael Poliview. Sir, the floor is yours.

Thank you, Matthew. And hello, everyone. And thank you for joining us to review CSPI's financial results for the fiscal 2025 fourth quarter and full year-end of September 30, 2025, as well as recent operating developments. Today, with me on the call is Victor DeLogo, CSPI's Chief Executive Officer, and Gary Levine, CSPI's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. During the Q&A session, we asked participants to limit themselves So one question and one follow-up question, then re-queue if you have additional questions. Statements made by CSPI's management on today's call regarding the company's business that are not historical facts may be photo-looking statements as those identified in Federal Securities Law. The words may, you will expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions or intendance to identify photo-looking statements. Faultless statements should not be met as a guarantee of performance or results. The company cautions you that these statements reflect the current expectations about the company's performance or events and are subject to several uncertainties, risks, and other influences, many of which are beyond the company's control that may influence the accuracy of the statement and the projections upon which the segment and 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 factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Follow-up statements are based on the information available at the time those statements are made and managed with good faithfully as of the time with respect to future events. All follow-up statements are qualified in entirety by this cautionary statement and CSPI undertakes no obligation to publicly revise or update any forward statements, whether as a result of new information, future events, or otherwise after the date they're on. With that, I'll turn the call over to Victor DeLobo, Chief Executive Officer. Victor, please go ahead.

Thanks, Michael, and good morning, everyone. We had a strong finish to the fiscal year. Overall fourth quarter revenue increased 11%. while our overall gross margins increased by more than 800 basis points to 37%. We significantly increased our profitability during the fiscal fourth quarter from the same prior fiscal quarter, while continuing to invest in building the deal pipeline and new customers of our highly differentiated and award-winning AZT Protect cybersecurity offering. For the full fiscal year, maintained our strong balance sheet and positioned ourselves for increased momentum and growth in fiscal 2026. Once again, our technology solution business drove our fourth quarter and four-year growth. We expanded relationships with existing customers while gaining new customers due in large part by the exceptional customer retention track record we have earned in a wide variety of industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunication, and maritime. Technology solution increases the efficiency and effectiveness of our customers' IT investment in networking, wireless, mobility, unified communication and collaboration, data center, and advanced technology security, and continues to be a major driver of our service business growth. During the fourth quarter, our service revenue grew 63% over the same prior year quarter and represented approximately 44% of our total revenue. During the year-ago fourth quarter, service revenue represented approximately 30% of total revenue. For the full year 2025, service revenue represented 36% of total revenue as compared to 33% a year ago. Managed cloud and MSP services are an increasingly important part of our offering. And during the fiscal 2025, this business grew a healthy double-digit rate. One of our key objectives in fiscal 2026 is to build on that growth rate. To achieve this, we are allocating more resources to these opportunities, including adding more sales reps. Our MSP slash cloud service strategy has been especially positively effective in the maritime industry, where we are expanding installations during the fiscal 2025 and then gain contracts to service these installations, the result of which will begin in realized in fiscal 2026. In addition, we entered our fiscal 2026 with backlog for cruise ships, installs and upgrades, which we hope to convert revenue over the next 12 months. Growing our service business benefits our shareholders in two important ways. First, the revenue tends to be very sticky given our strong service track record with customers and our unique position in the marketplace. Second, our service revenue earns higher gross margins than our product revenue. We are quite excited about the results generated from our service segment during the fiscal 2025 and are even more excited about our potential entering the fiscal 2026. Turning to the HP segment, we continue to gain traction with our strategic partners and distributors and their customers for AZT Protect cybersecurity offerings. Over the course of the past fiscal year, our go-to-market strategy led to dozens of new AZT customer installations, as well as a continuously expanded pipeline for our new customers. Working through our Gold Star resellers, including the Rockwell Automation's largest North American distributors, our strategy is to successfully implement our solution at an individual site with the customer's operations, then pursue other installation opportunities within the organization. We have recently executed this sales approach with several customers as we speak and are actively working on purchase orders with our partners to deploy ACQ Protect at additional sites. To date, we have customers in the steel, energy, manufacturing, water utilities, pharmaceutical, food, telecommunication, and other industries, all with multiple installation potential. many of these potentials to become a six- or seven-figure dollar relation for our company. We have deployed case studies of the results achieved by AZT Protect within most of these industries, and Rockwell distribution channels are aggressively taking these results to market. We believe this approach is working as we exit the year with significant increase in the number of AZT Protect deployment deals in the works. In addition, in the fall of 2024, we participated in the Rockwell Automation Fair in Anaheim, which was the first step into the Rockwell Automation Channel. We participated again this year at the Rockwell Fair in Chicago that was held a few weeks ago. And it isn't an exaggeration to say the booth was busy throughout the entire fair. Operational technology customers continue to lack the effective cybersecurity protection at the level AZT Protect provides. We continue to believe we have a strong competitive advantage in this space and also believe that the market now sees us as a substantial resource. Our objective is to convert this building momentum into sizable AZT Protect sales in fiscal 2026. We are quite excited about the direction in the fiscal year 2026 prospects for our business as we expand our focus to protecting industrial IoT devices. The devices in this space have traditionally been difficult to protect due to the types of processors used and limited resources available that typically don't support conventional IT-based endpoint protection solutions. ADT Protect has had an initial success in being selected and deployed in such environments. We are optimistic that This opens a new market for the product. Many AZT Protect installations require an approach to simplify mass deployments. That means our team has had to enhance our software to allow for easy integration into the industrial IoT products supplied by other vendors. Today, we have overcome these integration challenges without exception. There is still more work to be done to streamline the approach, however, This ability to integrate the deployment of ACT Protect into the industrial IoT company's existing systems is a major driver behind our growing pipeline into this large, unserved industrial edge compute market. In summary, our service business exited the year on an extremely strong note, and our product business is gaining momentum. We believe we are on a trajectory to generate consistent profitability improvements for the fiscal full year 2026 as we built the infrastructure and made the investment required to support significant expansion of our business. As a result, we believe that we are in a position to significantly leverage revenue growth going forward. With that, I'm going to turn the call over to Gary to provide you with some more details about our recent financial performance. Gary?