RF Industries, Ltd.

Greetings and welcome to RF Industries' first quarter fiscal 2025 financial results conference call. At this time, all participants are in a listen-only mode. 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, Donnie Case, Investor Relations at RF Industries. You may begin.

Thank you, Paul, and good afternoon, everyone, and welcome to RF Industries' first quarter 2025 earnings conference call. With me today are RFI's Chief Executive Officer, Rob Dawson, President and COO, Ray Babisi, and CFO, Peter Yin. We issued our press release after market today. That release is available on our website at rfindustries.com. I want to remind everyone that during today's call, management will make forward-looking statements. that involve risk and uncertainties. Please note that information on this call today may constitute forward-looking statements under the securities exchange laws. When used, the words anticipate, believe, expect, intend, future, and other similar expressions identified forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risk and uncertainties. Actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that could cause these forward-looking statements to differ from actual results include the risk and uncertainties discussed in the company's reports on Form 10-K and 10-Q and other filings with the SEC. RF industry undertakes no obligation to update or revise any forward-looking statements. Additionally, throughout this call, we will be discussing certain non-GAAP financial measures. Today's earnings release and related current report on Form 8K describe the differences between our GAAP and non-GAAP reporting. With that, I'll now turn the conference over to Rob Dawson, Chief Executive Officer. Go ahead, Rob.

Thank you, Johnny, and welcome to our first quarter fiscal 2025 conference call. I'll start with our first quarter highlights and some comments on our market opportunity. Our President and COO, Ray Labisi, will provide an update on sales and operations, And our CFO, Peter Yin, will cover our financials before we open the call to your questions. Our team delivered a strong performance in the first quarter. Net sales were $19.2 million, a significant increase of 42.7% over the $13.5 million reported in the first quarter of last year. While the first quarter is typically our seasonally slowest quarter, revenue was up 4% sequentially and a little better than the guidance we provided on our fourth quarter calls. Our gross profit margin for the first quarter was 29.8%, in line with our target of 30%. For the second quarter in a row, we delivered an operating profit, which reflects our ongoing commitment to driving improved profitability, even with some challenging and persistent market conditions. Non-GAAP earnings per share came in at 4 cents, and our adjusted EBITDA was $867,000. We ended the quarter with a backlog of $15.2 million. As I've said before, we have significant leverage in our P&L that will have a favorable impact as the market improves, and this quarter's financial results validate the strength and scalability of our model and our continuing transformation from a product company to a solutions provider. Sales increased by $5.7 million compared to Q1 last year, and that leverage translated into a $2 million positive swing for Adjecta Vita that delivered the $867,000 dollar adjusted EBITDA for the quarter that I just mentioned. Our first quarter mix skewed more favorably toward higher value offerings, including increased shipments of DATCH thermal cooling systems and integrated small cell solutions. Our custom cables, wire harnesses, and core distribution-centric RF products also made solid contributions to the quarter. From a customer diversification standpoint, we're moving in the right direction toward a more balanced contribution beyond the large tier one wireless carriers. Our focus on diversifying our customer base is gaining traction with a growing portion of our product revenue coming from customers outside of the wireless carrier space. Make no mistake, we would still love to see the carriers turn on the CapEx spigot to address densification and other opportunities. And as I've indicated before, our technology forward solutions have moved us up the food chain to deal more directly with key decision makers. That said, broadening our customer base and increasing our exposure to new end markets opens up our opportunity set while making RFI more resilient to cyclical downturns in carrier capex. As an example of new end markets, in the first quarter we won a large interconnect opportunity from a leading aerospace company. This is exciting on several levels. First, aerospace is a high-growth industry that requires the utmost degree of mission-critical components. This win, among others, further validates that our products and solutions meet the highest standard for exceptional quality. This builds RFI's credibility and reputation for high quality across all of our target markets, including our distribution partners. To be clear, we see plenty of opportunities to continue to grow within the Tier 1 wireless carrier ecosystem while we're also making meaningful headway in these new market segments. We expect wireless network densification to accelerate throughout 2025 with improved spending on small cell deployments. We also anticipate an increase in stadium and venue projects. RFI is well positioned to benefit from these trends. We've refined our go-to-market strategy and attracted veteran relationship managers who are accelerating our business development efforts. From a product perspective, we're leveraging our strong offering in interconnect while further transforming into a solutions provider with our state-of-the-art small cell solutions and DAC thermal cooling systems. And our team continues to innovate with new products and solutions that will add to our growing portfolio of high-value offerings. We anticipate announcing and showcasing some of these innovations at upcoming industry events and will keep you informed of these developments. On the operations side, we continue to streamline our infrastructure to allow us to scale more quickly and deliver sustainable profitability with an adjusted EBITDA goal of 10% of sales or greater. Finally, I want to comment on a current hot topic, tariffs. As with most companies, we're closely monitoring the various tariff proposals being discussed and enacted by the U.S. government, as well as those coming from other countries and regions. We're working to determine any impact on our procurement and supply chain activities and on the sales of the products we export. In Q1, roughly 6% of our revenue came from export sales, and all of our production facilities are based in the United States. As such, we currently don't anticipate a significant impact from the new tariffs, although we are making updates to our pricing and supply chain as needed. Overall, it's still too early to offer final guidance on this topic based on the fluid nature of the situation. We'll continue to evaluate potential impacts on RFI and our customers and communicate any changes we anticipate. Our momentum continues to build, and our visibility is improving. Our first quarter sales came in higher than expected when we spoke to you in January. This was directly related to the timing of customer shipment requests. And while quarter-to-quarter timing of shipments like this can move our results around, we're anticipating fiscal 2025 revenue to be significantly higher than fiscal 2024. And as I mentioned, we have a heavy focus on improving profitability. Our team's hard work, strategic execution, and ability to adapt have positioned us for success. And we're excited about what's ahead and how this can translate into long-term value creation for our stakeholders. With that, I'll turn the call over to Ray for further commentary on sales and operations.