Good afternoon. Thank you for standing by. And welcome to Mobix Labs Inc. Fiscal Fourth Quarter and 2024 Financial Results Conference Call. Please be advised today's conference is being recorded and a replay will be available on Mobix's Investor Relations website. I would now like to turn the conference over to Lori Barker, Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone. I'm Lori Barker, Investor Relations for Mobix Labs. And I'd like to thank you for joining us today as we report Mobix fiscal fourth quarter and 2024 financial results for the period ending September 30th. With me on the call today are Fabian Battaglia, Mobix's Chief Executive Officer; and Keyvan Samini, President and Chief Financial Officer. This call is simultaneously being webcast on the Investor Relations section of our Web site at mobiclabs.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 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 such forward-looking statements except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including on 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 fourth quarter earnings release posted on the Investor Relations section of our Web site. With that, I will turn the call over to Fabian Battaglia. Fabian, please go ahead.

Thank you, Lori. I am pleased to announce a successful fourth quarter that caps off Mobix Labs' results as we approach our first fiscal year as a public company. It is an exciting time as we unleash the performance of next generation wireless sensing and connectivity solutions. I'm proud of our team's execution as we quickly grow the breadth of our offerings through organic growth and synergistic accretive acquisitions. Integrating employees and technologies is part of our core DNA and shaping tomorrow's connectivity is front and center for all Mobix employees. In the fourth quarter, we executed on our plan and we grew revenues sequentially by 44% for a full year fiscal growth rate of 426%. Also, gross margins increased as we integrated RaGE Systems and continued working on synergies in a more favorable mix of products and engineering services. We closed out the fiscal year with strong bookings, which position us well for our next fiscal year and mergers, and acquisitions at Mobix Labs will continue to be in the news as we diversify our technology portfolio. Our recent announced letter of intent to acquire Spacecraft Components is an excellent example of our accretive funnel of M&A opportunities. Spacecraft is a leader in high precision mission critical components for aerospace, defense and commercial applications. Also, they are recognized for their cutting edge engineering and manufacturing capabilities. These electrical connector components and accessories are vital to critical missile technology, submarines, naval ships, oil rigs, railcars, military and commercial jet aircraft and many other applications. Notably, these components are utilized in the Patriot missile, the US Army's primary missile defense system and in tactical manned and autonomous vehicles. Additionally, Spacecraft supplies key components for railcar systems in major metropolitan areas, such as Chicago and New York. As a long-standing supplier to…

Thank you, Fabian. I'm excited to walk you through the financial highlights of our fourth fiscal quarter ending September 30th as well as our full fiscal year ending September 30, 2024 and to share our outlook for the first fiscal quarter of 2025. Unless otherwise stated, the figures I'll discuss today are on a non-GAAP basis. Before discussing the numbers, I want to underscore the significant milestone Fabian mentioned earlier. Our letter of intent to acquire Spacecraft Components. If completed, this strategic acquisition is expected to be transformative for Mobix Labs, expanding our reach into high demand sectors, including military, defense, aerospace and rail. Spacecraft is a well-established business and its acquisition is expected to be immediately accretive. In addition to delivering immediate financial benefits, we believe this acquisition will enhance our sales strategy, strengthen our position in critical markets and significantly accelerate revenue growth for fiscal year 2025. Upon closing, we expect the transaction to materially increase Mobix Labs' revenue compared to fiscal 2024 while driving synergies that boost operational efficiency and long term scalability. Now let's look at our financial results for the fourth quarter and full fiscal year 2024. We delivered revenues of $2.95 million, surpassing the midpoint of our guidance range and representing a robust 44% sequential increase over the prior quarter. For the full fiscal year 2024, annual revenue grew by $6.44 million, marking an exceptional 426% increase over fiscal 2023. Turning to gross margin. Our fourth quarter adjusted gross margin improved 16.3 percentage points sequentially to 56.6%. This impressive growth was driven by a favorable product mix, pricing strength and operational efficiencies. On a full year basis, our fiscal 2024 adjusted gross margin reached 45%, a dramatic turnaround from fiscal 2023. We also made substantial progress reducing our adjusted loss from operations. For the…

[Operator Instructions] Our first question will come from the line of Kevin Cassidy of Rosenblatt Securities.

You had mentioned that EMI interconnect solutions having increased bookings. Can you go into a little more details on that? Is it the market getting better or are there things you're doing that are increasing the bookings?

As you likely know the geopolitical [stripe] that exists today unfortunately is not calming down. So we're getting increased opportunities or increased request for, uh, products in that area. And as you know, EMI fits in that space. So aerospace and defense is a key driver for EMI and that's why we're seeing the increases that we see.

Can you say what the visibility is? Is it out one quarter, two quarters?

Typically, it's out to two quarters is what we see.

And then just one other question with the Spacecraft Components, 150 employees is impressive. But will you be able to get some leverage with those employees, like you'll be able to take over more of the say SG&A portion of the spending?

Yes, like all acquisitions, we look at the synergies and that's something that we're very experienced in doing. So we would take a company like Spacecraft who's got great technology, great capability, especially manufacturing capability and you match that with our go-to-market strategy and our experience in that space. We feel that that will be a great benefit when we combine forces.

And maybe could you say what percentage of those employees are engineers?

I would say it's less than 5%.

And our next question will be coming from the line of [Martyn Lucas].

Thank you very much for allowing me on your call today. I represent the investor family known as the [Lucas Ades] who watch my YouTube TV show and follow Mobix with great enthusiasm. I have two questions for you. The first one is, what specific strategies or initiatives is Mobix Labs prioritizing to drive shareholder value and ensure consistent stock price growth in both the short and long term?

Our strategy has been consistent from day one. So it's in two parts, the organic growth and then an M&A strategy to accelerate that growth. On the organic side, we focus on connectivity, wireless communications, security imaging and detection. Those are our primary focuses. And then on the M&A side, we have a well defined process and we're looking at areas in aerospace and defense, transportation, medical, wireless communications. So it's a combination, both short term what we have in front of us will drive the organic growth and then over the longer term, our M&A strategy will accelerate that growth.

My follow-up question. As we all know, investors around the world are extremely passionate and excited about where NVIDIA is going. So my viewers have asked me to ask this question. As NVIDIA is so popular now with retail investors and there are -- are there any ways that you could introduce your technology to them for a strategic partnership, this would surely be a great move?

Yes, we agree with that. Well, first, we applaud NVIDIA in their great success. We are a believer of GPU accelerated solutions and of course AI is driving that. And I think, we're seeing more AI end use cases, right? So we expect that that will continue to grow. Now we believe that Mobix IP is applicable in the same ecosystem. So we're excited to be attached to applications that live alongside where NVIDIA lives. Now what we expect, as of course with their success, we're going to see use cases, which we think are going to require increased expectations for things like higher demand rate and higher bandwidth type applications and we feel that that fits really well in the areas that we're developing.

Well, thank you very much for that, and giving us the chance to ask a question a few questions. And congratulations today on your call from all of the [Lucas Ades], thank you very much.

Thank you so much for participating in today's conference call. This now concludes today's meeting. You may all disconnect.