CSP Inc.

day, everyone. Welcome to CSPI's second quarter fiscal year 2026 conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Michael Polyview. The floor is yours.

Hello, everyone, and Kelly, thank you for joining us to review CSPI's financial results for the fiscal 2026 second quarter, which ended on March 31, 2026, as well as recent operating developments. Today with me on the call 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'll then open the call for questions. During the Q&A session, we asked participants to limit themselves to one question and one follow-up question, then please re-key if you have additional questions. And in advance, thank you for your cooperation with this process. Statements made by CSPI's management on today's call regarding the company's business that are not historical facts may be follow-up statements as those identified in Federal Securities Law. Or it may, you'll expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions or intended to identify follow-up statements. A look at statements should not be meant as a guarantee of future performance or results. The company cautions that these statements reflect the current expectations about the company's future 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 statements and the projections upon which the segment and 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 in Form 10-K and quarterly report in Form 10-Q filed with the Securities and Exchange Commission. Follow-up and statements are based on the information available at the time those statements are made and management's good faith believe as of the time with respect to future events. All follow-up and statements are qualified in entirety by this cautionary statement and CSPI undertakes no obligation to publicly revise or update They need any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date they're up. With that, I'll turn the call over to Mr. DeLobo, Chief Executive Officer. Victor, please go ahead.

Thank you, Michael, and good morning, everyone. CSPI returned to growth during our fiscal second quarter as our product sales grew 30% and our service business grew 7% over the prior fiscal year quarter. Our top-line growth and bottom-line improvement was driven by our U.S. technology solution business and some large customer purchase orders. We did see an increased pickup in the AZT Protect orders during the quarter with more than 10 of what we call land and expand orders with new customers. This was double the amount of AZT Protect orders we signed in Q2 2025. Typically, these orders are used as a test at a single site by a customer to make sure AZT Protect meets our claims. It works within the customer's existing cybersecurity infrastructure, which I am happy to report has been the case every time. Then our team goes to work to expand our relationship with the customer through deployment at other sites. This phase of the process has taken longer than anticipated, largely due to evolving stakeholders alignment, and internal review requirements. For example, change within customer teams often require us to re-engage and re-establish momentum, while some organizations seek additional validation from initial deployment sites. In other cases, IT teams initially assesses the existing infrastructure, addresses OT security needs, creating an opportunity for us to provide further education on distinct requirements of the OT environments. We view these dynamics as a natural part of the sales cycle in a complex and evolving market, and they continue to present opportunities for deeper engagement in long-term value creation. We are, however, making progress within the land and expand strategy. For example, AZP Protect is now deployed at the fourth plant in a major raw material manufacturer. to approach each plant separately, but with AZT Protect's track record is taking less and less time to add each site. We are seeing similar expansion at other customers where we deployed at a single site in 2025 and now slowly expanding to additional sites within the organizations. Our most exciting AZT Protect land and expand relationship to date was signed in April. It is a three-year agreement for more than two dozen US sites of a global cement manufacturer. The six-figure annual revenue value of this contract will be recorded in the fiscal third quarter. This agreement took approximately 13 months to get across the finish line, but now puts us in a position to pursue the manufacturer's other sites, which number more than 100 around the world. In late March, we entered into an agreement with a leader in the cloud-based commercial content automation service to deploy AZT in our ARIA ADR across the company's production infrastructure. And in early March, we deployed AZT Protect at a leading pet food producer. These are examples of how we are consistently evolving our approach to the OT market to shrink time between the initial land and expand. What's helped our effort in the growing awareness by the market of the increasingly threats generated by AI and the so-called friendly fire attacks generated by internal sources. Cybersecurity solutions tend to use patches to address cybersecurity threats. but continuous patches are largely ineffective in the OT operating realm. In a friendly fire attack, IT mistakenly sends a faulty update to manufacturing, which can be even more devastating than the attack's impact to OT production. With AZT Protect, no patches are needed, and to date, no breaches have occurred. At the same time, we continue to pursue strategic OEM relationships, most notably with Acronis. as they work to embed AZT Protect into their platform. While these integrations require time to mature, they represent highly scalable opportunities with substantial long-term potential, and we are hoping to begin generating revenue from the Acronis relationship by the end of the current fiscal year. AZT Protect continues to have little in the way of effective competition. However, the unique procurement process and development criteria for each customer and even and even each site within the customer has resulted in various timing delays. Our team is relentless when it comes to realizing the AZT Protect opportunity, and we continue to work through each challenge as it occurs. And we are definitely moving the needle. After a month into their fiscal third quarter, we are encouraged by the progress we are making with the AZT Protect deployments. During the second quarter, Once again, the technology solution business was the primary generator of our top-line growth. Our offerings increased the efficiency and effectiveness of our customers' IT investment in network, wireless and mobility, unified communication and collaboration, data center and advanced technology security. A managed cloud and managed service practice continued to perform well and grew 11% over last year's comparable period. We continue to benefit from the ever-expanding business and organizational migration to the cloud and the increasing trends for enterprises of all sizes to acquire operation support required once the migration is complete. A primary factor behind this market driver is the growing complexity of the cloud and the unique and specific needs of each enterprise. In Q1, we signed a new MSP customer that was generating nearly six figures in monthly revenue that commenced during the second quarter. And as we mentioned in the press release a week ago, one of the top 15 landscaping companies in the U.S. is engaging us to provide comprehensive managed services. As we look out over the remainder of the year, we believe our service segment momentum can continue. Meanwhile, based on our best-in-class services, our customer retention rate remains extremely high, contributing to our expanding gross margins in the service segment. During the quarter, service gross margins increased more than 100 basis points over the last year's comparable period. Overall, our fiscal second quarter results reinforce our confidence in the fiscal 2026 is shaping up to be a growth year for CSPI. After being in the market with AZT Protect for just a short amount of time, We have gained more than 60 unique customers, some of whom, as I noted earlier, have multi-site installations underway and additional expansion opportunities. These customers span a broad range of verticals, including steel, energy, manufacturing, water utilities, pharmaceuticals, food, and telecommunications. At the same time, we are dedicated to maintain momentum in our service business, and we are pleased with the margin expansion realized from these operations during the quarter, as well as the profitability we achieved during the quarter. Overall, we are hopeful of sustained top and bottom line growth during the second half of the year and generating full fiscal year growth over the last year. With that, I will turn the call over to Gary to discuss our recent financial results in more detail. Gary.