TechPrecision Corporation

Welcome to the Tech Precision Corporation fiscal year 2025 second quarter 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, Brett Moss, managing partner of Hayden IR. You may begin.

Thank you. On the call today is Alex Shen, Chief Executive Officer, and Richard Romberg, Chief Financial Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of a safe harbor for forward-looking statements as contained in the private securities litigation reformed after 1995. Actual results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of risks and uncertainties in the company's financial findings with SEC. In addition, projections as to the company's future performance represents management's estimates as of today, January 21st, 2025. Tech Precision assumes no obligation to revise or update these forward-looking statements. With that out of the way, I'd like to turn the call over to Alex Shen, Chief Executive Officer, to provide opening remarks. Alex, the floor is yours.

Alex Shen Thank you, Brett. Good afternoon to everyone. And thank you for joining us. As previously disclosed, the company held its annual meeting of stockholders on December 19, 2024. And as a result, six directors were elected. Andy Levy, John Moore, Walter Schenker, Alex Shen, General Jean Renoir, and Rob Strauss. On December 23, 2024, the board, appointed by unanimous vote, General Jean Renoir to serve as chair of the board and Rob Strauss to serve as vice chair of the board. Effective January 13, 2025, John Moore resigned as a member of the board of directors to focus on his other responsibilities. The board has decided not to fill the vacancy created by Mr. Moore's resignation at this time. The composition of committees of the board is as follows. The audit committee members are Andy Levy, General Gene Renoir, and Walter Schenker. Walter Schenker is the chair. The compensation committee members are Andy Levy and Rob Strauss. Andy Levy is the compensation committee chair. The nominating and governance committee members are General Gene Renoir, Walter Schenker and Rob Strauss. Rob Strauss is the Chair of the Nominating and Governance Committee. I would like to share some remarks from our Board Chair, General Jean Renoir, and our Board Vice Chair, Rob Strauss. The Board of Directors is committed to improve transparency for its stockholders, including the return to timely SEC filings, enhanced accountability policies, should drive better financial performance. A renewed focus on existing operations is an immediate priority, especially at STATCO, but also at Raynor. All directors are working constructively together to maximize stockholder value. As for myself as the CEO and the board director, I'm looking forward to forging ahead. constructively and with alignment. As a matter of fact, General Jean Renoir and Rob Strauss will both be onsite at STATCO on February 10 for an in-person eyeball review of the operations to help establish a firm understanding and to enable a fact-based operations focus. One item additionally, on January 15, 2025, Richard Rundberg, Chief Financial Officer of the company notified the company that he will resign from all roles with the company and its subsidiaries effective as of February 14, 2025. Mr. Rundberg's resignation is not due to any disagreement with the company on any matter related to the company's operations, policies, or practices. Mr. Rundberg's replacement will be announced in due course. Okay, next we return to our earnings call format. We're starting off with second quarter at Stadco. Revenue was $4.2 million or a 17% increase compared to the same period a year ago. Second quarter Raynor revenue was $4.8 million compared to $4.5 million a year ago. The second quarter consolidated revenue was $8.9 million or 12% higher when compared to revenue of $8 million for the same period one year ago. Consolidated gross profit was 2% lower when compared to the same period a year ago. Second quarter STADCO operating loss of $0.8 million resulted from unexpected higher manufacturing costs on one-off projects, legacy pricing problems on core business, machine breakdowns in the quarter that disrupted expected throughput, and underabsorbed overhead costs. Raynor had operating profit of $1 million in the second quarter, primarily due to favorable project mix. Customer confidence remained high, as our consolidated backlog was $48.6 million at September 30, 2024. We expect to deliver. strong backlog over the course of the next one to three fiscal years with gross margin expansion we remain highly focused on cash management a critical piece of risk mitigation and continue to manage and control expenses capital expenditures customer advances progress billings and final invoicing at shipment. And now I would like to turn the call over to our CFO, Richard Rundberg, to continue with the review of our second quarter results. Richard?