Mobix Labs, Inc.

Thank you for standing by and welcome to the Mobics Labs third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Shio Delalloy of the Blue Shirt Group. Please go ahead, sir.

Thank you. Good afternoon, everyone. I'm Shio Delalloy, Investor Relations for Mobix Labs, and I'd like to thank you for joining us today as we report Mobix's third fiscal quarter 2024 financial results for the period ending June 30th. With me on the call today are Fabian Battaglia, Mobics 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 mobicslabs.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 enhancements or development is a forward-looking statement. MOBICS actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in our SEC filings. MOBICS assumes no obligation to update any such 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 June 30, 2024, and the section entitled Risk Factors in the Form S-1 filed on August 12, 2024. 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 third quarter earnings release posted on the investor relations section of our website. With that, I will turn the call over to Fabian Battaglia. Fabian, please go ahead.

Thank you, Shio. Today, I'll review the June quarter and share with you highlights of our successful acquisition strategy to build Mobics Labs into an increasingly diversified, leading-edge tech pioneer. We are unleashing the performance of next-generation product lines like EMI interconnect solutions, wireless systems, active optical cables, and 5G IC solutions that will leverage and enhance our 5G portfolio for future growth. Kayvon Cimini, our president and CFO, will follow up with financial comments. In the June quarter, I'm pleased to announce sequential revenue growth of 80% to $2.1 million. We are also happy to announce we received $4 million in July as part of a private placement, and we look forward to additional financing to fuel our acquisition strategy and provide for our working capital needs. Increasing demand and exciting request proposals prove that customers with high reliability needs want to do business with Mobics Labs and our expanded offering. We have long-term relationships with our manufacturers, reps, and distributors, and they are happy to offer additional products to their customers. A key element of our strategy is expansion through synergistic product acquisitions in diverse industry sectors which will broaden our customer base and allow our customers to reduce the number of suppliers. As part of our ongoing strategy to enhance our market position and deliver sustainable growth, I am pleased to announce we have entered into an agreement to acquire J-Mark Connectors, Inc. This acquisition strengthens our presence in the military, aerospace, and defense sectors. By integrating JMARC's proven expertise in EMI interconnect solutions, we will be expanding our customer base and product offerings to better meet the stringent requirements in aerospace, military, and medical markets. This acquisition will drive revenue growth, improve our gross margins, and set the stage for long-term value creation for our customers and stakeholders. The integration of JMARC's Expertise in EMI interconnect solutions will significantly enhance MobX Labs' product portfolio, enabling us to meet the most demanding filtering, grounding, and transient suppression requirements in aerospace, military, and medical sectors. We look forward to capitalizing on the acquisition of JMARC as we continue to execute our growth strategy. Additionally, I am pleased to report the successful close and significant June quarter revenue contribution of Rage Systems in May. Now, Mobics Labs and Rage Systems together provide breakthrough joint design and manufacturing services for the development of RF technologies for a variety of customers in the field of 5G millimeter wave communications, radar sensors, and imaging sensors. One new example of product innovation from this acquisition is our new SmartEdge device product line. In early August, we announced our participation at the 2024 Leidos Supplier Innovation and Technology Symposium. At the conference, we showcased this new product line, which is a software-manageable autonomous radio transceiver and an innovative appliance deployed at the network edge. It is programmable for a variety of applications such as RF spectrum analysis, RF broadcast node, micro-ORAN RU2, 3, and 4G transition base stations, and many other custom applications. SmartEdge is a good example of next-generation product developed by Rage Wireless Systems team, and I'm proud to say that we have retained all of their staff. They are excited to join MobX Labs team as they continue to work on next generation technology while leveraging our expanding customer and product footprint. We are continuing to run fast as we consider other future transactions. Our robust expanding M&A pipeline of potential targets is expected to continue driving diversification of our offerings and adding scale. To this pipeline of opportunities, we are applying a disciplined approach as we focus on synergistic M&A opportunities in diverse industries to further expand our customer base. Our focus is on strategic tech additions, cash generation, and accretion within two quarters. We are serving very large and rapidly growing markets. On our investor relations website, you can view a slide with our projected SAM and growth by markets. In aggregate, the markets we are addressing are projected to have a 50% CAGR growing to nearly 4 billion by 2028. I'd like to highlight four of our solution groups today. EMI interconnect solutions, wireless system solutions from Rage Systems, active optical cables, and IC solutions for our 5G portfolio. Revenue for our EMI interconnect solutions was record in the June quarter. These filtering products from our previous EMI acquisitions are widely used in an industry with a high cost of failure. Mission-critical customers know they can rely on Mobics Labs connectors for predictable performance. Among our customers are Fortune 500 companies such as Honeywell, General Dynamics, GE Healthcare, Lockheed Martin, BAE Systems, Northrop Grumman, Raytheon, and Gulfstream. A good testimonial to how customers rely on Mobics Labs is our recent announcement that we are now delivering products for the Navy's Standard Missile 6 program. Our products met the Navy's rigorous standards to withstand high shock, vibration, and extreme temperatures. We look forward to more orders from this important U.S. defense program. Also, we have other large bids we are working on right now, including with a global defense aerospace and security company and another bid for an international aviation service company with a broad portfolio of aerospace and defense systems and components. The EMI team has been running fast to innovate, and this includes a recently announced filtered A-ring connectors which are setting a new standard in price, performance, and customization. The new connectors are designed to deliver exceptional performance and reliability, featuring advanced EMI filtering options to ensure optimal signal integrity and minimal resonance. We also introduced a new family of filtered D-sub connectors designed to eliminate unwanted electromagnetic interference in defense, aerospace, medical, and commercial applications. These connectors feature robust construction and superior EMI filtering capabilities, ensuring optimal performance and reliability in the most demanding environments. These EMI interconnect solution products and our exceptional performance and contributions to the supply chain were recognized in May when we were honored to receive the Gold Tier Supplier Award from our long-term partner, BAE Systems. Also, as I mentioned earlier, We are very excited to have the new team from Rage Systems on board this quarter as our wireless system solutions product group. These products are specialized for 5G communications, millimeter wave imaging, and software-defined radios. In addition to our participation at the Leidos Supplier Symposium and the new SmartEdge device radio transceiver, we signed a strategic partnership with Talking Heads Wireless to develop and produce a new generation of cost-effective, energy-efficient 5G base stations. These 5G radio solutions use AI technology to optimize tower energy consumption, while Mobics Labs' broad portfolio of products, including ICs and antennas, delivers significant advantage in performance, efficiency, cost, and size for 5G base stations. Our mission is to help develop solutions that significantly reduced the power consumption of base stations, cutting the energy cost of 5G towers in half. We are in the early stages of growing the wireless system solutions business. Our combined system-level knowledge and IC design capabilities gives us a unique advantage in partnering with our customers. The team looks forward to telling you more in the coming quarters about our growing revenue, our expanding pipeline of opportunities, and exciting developments and product wins with key customers in the aerospace and defense, wireless, industrial, and security marketplace. The RAGE system team is also now augmenting Mobics Labs' past work for our product group IC Solutions for the 5G millimeter wave market. While it was early days for 5G, we are excited about the size of this emerging market opportunity and using our 5G developments for our wireless systems products and solutions for future growth. Active optical cable solutions is a more mature part of MobX Labs. It provides connectivity for high bandwidth and low latency connections such as professional audio video systems. HP Poly products are a good example of a customer we have been serving for several years. These four innovative product lines that I've outlined for you provide compelling solutions, and our leadership team's solid track record is another key element of our scalable strategy to become the supplier of choice for next-generation connectivity solutions. It is an exciting time to be at MobX Labs given our quickly expanding pipeline of opportunities, especially in high reliability markets such as EMI interconnect solutions and wireless system solutions. Requests for proposals are at an all-time high. In summary, our goal is to unleash the performance of next generation EMI interconnect solutions, wireless system solutions, and leading edge 5G millimeter wave. I'm happy to say customer demand for our solutions is strong and our customer pipeline is growing. As an experienced team, we knew when we founded Mobics Labs that it wouldn't be easy, but I can tell you that we have demand and an incredible team of people ready to execute and is a very exciting chapter of growth for this industry and for Mobics Labs. Kayvon will now tell you more about the financials and how we are working hard to garner working capital needed to fund those opportunities. Kayvon.