Mobix Labs, Inc.

Good afternoon. Thank you for standing by and welcome to MobX Labs Inc. Second Fiscal Quarter 2024 Financial Results Conference Call. Please be advised today's conference is being recorded and a replay will be available on MobX's Investor Relations website. In addition, this call includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our second quarter earnings release posted on the Investor Relations section of our website. I would now like to hand the conference over to Lori Barker, Investor Relations. Please go ahead. Thank you.

Good afternoon, everyone. I'm Lori Barker, Investor Relations for MobX Labs, and I'd like to thank you for joining us today as we report MobX Second, fiscal quarter 2024 financial results for the period ending March 31st. With me on the call today are Fabian Battaglia, Mobix's Chief Executive Officer, and Kayvon Samini, President and Chief Financial Officer. This call is simultaneously being webcast on the investor relations section of our website at mobixlabs.com. Before we get started, I would like to remind everyone of our safe harbor policy. Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections, future market conditions, or future product enhancements or development, is a forward-looking statement. MOBIX's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in our SEC filings. MOBIX assumes no obligation to update any forward-looking statements, except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including our Form 10-Q for the quarter ended December 31, 2023, and the section titled Risk Factors in our Form S-1 Amendment filed on May 2, 2024. With that, I will turn the call over to Fabian Battaglia. Fabian, please go ahead.

Thank you, Lori. Today, we are excited to host our first earnings call as a public company. We have had several exciting developments so far in 2024, and today I'll review the March quarter and share our overarching strategy with you. Kayvon, our president and CFO, will follow with financial comments. In the March quarter, we grew revenue sequentially by more than 300%, and it was a record quarter for product revenue. This confirms that our acquisition strategy is successfully expanding our portfolio of innovative products and extending our customer base and related SAM. In the first few months as a public company, we've already executed foundational milestones. We signed a committed equity facility that provides for up to $100 million, which we believe positions us well for acquisitions, including the recently announced acquisition of Rage Systems. Rage Systems is a provider of joint design and manufacturing services for the development of radio frequency technologies for a variety of customers in the fields of millimeter-wave 5G communications, radar sensors, and imaging sensors. Tremendous synergies exist between our products and those that Rage brings to us, and we believe customers from both companies will benefit substantially from our expanded offering. As a past customer of Mobics Labs, we know the team at Rage well. We are excited to have Russell Sear and Jeff Daw, RAGE's co-founders, and their team join Mobics Labs as we accelerate our comprehensive, industry-leading tech portfolio in next-generation wireless communications. This RAGE acquisition follows quickly on the heels of the acquisition of EMI in late December. Integration of EMI is completed, and we have announced several critical contracts for electromagnetic interference filtering products to defense and aerospace customers, serving well-known companies like BAE, General Dynamics, Raytheon, and Lockheed Martin. Most recently, we announced the delivery of EMI solutions to the U.S. military for the Tomahawk missile systems, and we are awarded contracts for the M1 Abrams tank and the Javelin missile system. We are excited about what the EMI and RAGE acquisitions bring to Movix Labs, and along with the up to $100 million equity facility, we feel confident that we are rapidly and efficiently assembling the foundational elements necessary to execute our strategy. Also, we have announced the addition of Arrow Electronics as our global distribution partner to support our growing business. In this first call as a public company, I'll discuss our history, our strategy, markets, and products. We were founded to simplify development, reduce costs, and maximize performance of wireless millimeter wave 5G products used primarily for infrastructure applications. Innovation is at our core, and we already have over 40 patents issued or pending. Like past transformations from 1G through 4G, demand continues to expand for both bandwidth and coverage, and infrastructure gets built over many years as it becomes economically viable. With the advancements in the areas of AI, autonomous vehicles, remote surgery, and other high bandwidth data intensive applications, the need for innovative solutions at the component level, like our IP rich solutions, will contribute to the deployment of advanced wireless infrastructure. But today, while the 5G millimeter wave market is nascent, we are leveraging these early investments and diversifying into other synergistic applications. We believe that, along with our acquisitions, these synergistic products will fuel our revenue growth and help build deeper customer relationships which, when combined with our continued innovation, will be instrumental to Mobics Labs' growth as the 5G market emerges. Today, we are proud to be doing business with more than 200 customers. We anticipate this number to grow as we introduce more products like the recently announced high-power RF switches focused on the land and mobile radio, or LMR, market. The LMR market is going through a transition from the current push to talk to utilizing a higher frequency spectrum and providing data and video. This allows first responders, firefighters, police, and military personnel to send secure data or still photos over standard wireless radio. This development validates our strategy to continue developing state-of-the-art solutions for infrastructure and wireless markets. Our innovative products provide the necessary technology to enhance future devices in the field. Since our inception, as part of our commitment to enhancing communication services, our corporate strategy has evolved to encompass the pursuit of synergistic product acquisitions in diverse industry sectors, including aerospace, defense, medical, and automotive. This strategy not only expands our customer base, but also extends our current customer footprint, making Mobics Labs a key partner in allowing our customers to reduce their number of suppliers. Each acquisition must meet strict criteria to help accelerate Mobics Labs' growth and cash generation, and Rage System is an excellent example of a company expected to grow by more than 40% in the remainder of our fiscal year. Also, the acquisition is projected to be immediately accretive. Earlier in my remarks, you heard how both EMI and the RAGE acquisitions during the last few months continued to add to our scale and accelerate our innovative offerings. This has led to expanding our end markets and diversifying our offerings, which in turn added to the stability of our business. Also in 2021, we acquired CoSemi, a global supplier of high speed connectivity solutions, including a broad range of AOCs and optical engines. This acquisition was an earlier validation of our ability to acquire and integrate teams and technology. Our leadership has a solid track record of identifying the right assets and integrating the teams and technologies. You might have seen our recent announcement of the appointment of Mike Long, former CEO of Arrow Electronics, to our board of directors. Mike is an excellent example of the board's impressive track record, including several of us who are instrumental in growing well-known companies such as MicroSemi, Skyworks, and Broadcom. Another unique part of our strategy is how we go to market. We believe our strategy is highly scalable and allows us to quickly integrate acquisitions using manufacturing reps and distributors as extended resources. We believe this model enables us to blanket wide geographies and can help support high growth. It is made possible by leveraging the strong relationships developed over multiple decades. Through our acquisitions and go-to-market strategy, we have amassed four product lines. First, wireless components. Demand for data has exploded to enable many current and future data-intensive applications, including alternative reality, virtual reality, autonomous vehicles, and the Internet of Things, or IoT sensors. All of these and others in development will impose added strain on existing wireless networks. The next generation of wireless networks, including 5G millimeter wave and beyond, is expected to revolutionize the way data is transferred worldwide. Due to the complexities of 5G millimeter wave, substantially more complicated systems will be required, needing multiple antennas and RF front-end devices. RF front ends for wireless enabled products and infrastructure will be driven by cost and power efficiency and they need to be highly integrated and manufactured in high volumes utilizing low cost and readily available manufacturing such as CMOS technology to reduce per unit cost. Our second product line is EM filters. Electromagnetic filtering market is experiencing significant growth due to increased demand for noise reduction and signal integrity in electronic devices. Our filtering devices are designed to reduce electromagnetic interference. Our high reliability filters are designed to consistently meet or exceed performance requirements and are vitally important to any industry with a high cost of failure. Currently, our filtering products from the EMI acquisition are widely used in various applications and industries, including aerospace, military, defense, and healthcare. In the summary of the March quarter, you heard me mention several key wins, particularly in military and defense. The third product line, wireless systems. This is our exciting new offering mentioned earlier from the acquisition of Rage Systems. These are specialized products for 5G communications, millimeter wave imaging, and software-defined radios. Our wireless systems offerings are targeted at a number of markets, including physical security, defense, industrial, and communications. Typical products designed and manufactured include 2, 3, 4, and 5G O-RAN systems and subsystems, millimeter wave modules for threat scanning, and highly integrated systems for multiple aerospace and defense applications. Fourth is AOC, or Active Optical Connectors. Connectivity demand for high bandwidth and low latency connections is necessary for both wireless and optical connections for many applications. For example, professional audio video or pro AV systems, such as video conferencing, are capitalizing on the advantages of AOC connections to provide high bandwidth and uncompressed high definition signal with low latency over greater distances. These four product lines combine to serve diverse end markets, infrastructure, automotive, consumer premise equipment, high reliability, military, aerospace, satellite communications, medical, and security. In the future, I will tell you more about these markets. In addition to these diversified markets and products and our strong leadership team focused on acquisitions, I want to tell you more about our other competitive strengths. Our millimeter-wave 5G chip designs are based on a CMOS process, which enables higher levels of integration, leading to more cost-effective solutions that accelerate our customers' time to market. Another competitive strength and customer benefit is that we are a U.S.-based supplier. Many of our customers produce mission-critical applications in the wireless communications, defense, and medical markets with domestic manufacturing preferred. Nearly all of our offerings are proprietary in nature. Our customer engagements are directly with their development teams where we work side by side to help solve technical challenges. It's this design-centric methodology that leads to technology breakthroughs and creates value for our customers and Mobics Labs. In future calls, I will be highlighting key design wins as it is core to our operating strategy. In summary, I'm excited about March quarter's execution on fundamental milestones and our recent synergistic product acquisition of Rage Systems. Looking ahead, we believe we have set the stage for MobX Labs' continued best-in-class innovative solutions to capture opportunities in wireless, connectivity, electromagnetic filtering industries, which we expect will create a versatile company that serves diverse end markets. Now, Kayvon, we'll take you through our financials. Kayvon.