Good afternoon, ladies and gentlemen, and welcome to the Nortech Systems Inc. First Quarter 2025 Earnings Conference Call. With me on the line today are Jay Miller, President and Chief Executive Officer; and Andrew LaFrence, Chief Financial Officer and Senior Vice President of Finance. [Operator Instructions] At this time, it is my pleasure to turn the call over to Andy LaFrence.

Thank you, Tom. I would also like to welcome everyone to today's call. Jay will begin the call with a review of our operations, recent developments and business outlook. Then I will review Nortech's first quarter 2025 financial results before turning it back to Jay for his closing comments. Then we will open up the call for your questions. Before we continue, please note that statements made during this call may be forward-looking regarding expected net sales, operating results, future plans, opportunities and other company expectations. These estimates, plans and other forward-looking statements involve unknown and known risks and uncertainties that may cause actual results to differ materially from those expressed or implied on this call. These risks, including those that are detailed in our most recent SEC filings may be amended or supplemented. The statements made during this call are based upon information known by Nortech as of the date and the time of this call, and we assume no obligation to update the information in today's call. You can find Nortech's complete safe harbor statements in our SEC filings. And with that, I'll turn it over to Jay for his opening comments.

Thank you, Andy, and good afternoon, everyone. We're glad you can join us today. In our last several earnings calls, we noted customer order headwinds at Nortech and across our industry, which we expect to impact our near-term orders and revenue. While net sales over past several quarters were impacted by continued pattern of customers delaying product purchases, reducing their on-hand inventories and shortening order -- to fulfillment time lines. We are very encouraged with the stabilization of our customer backlog as of March 31, 2025, as compared with the end of 2024 and a robust pipeline of customer quote opportunities. Additionally, first quarter 2025 and fourth quarter 2024 revenues in our aerospace and defense market were negatively impacted by closure of our Blue Earth facility and the transfer of customer programs to Bemidji, Minnesota, as we experienced unexpected delays due to slow customer approvals. While we fully expect our aerospace and defense business to get back to normal in the second half of 2025, we do expect this headwind to continue to impact revenues to a decreasing level in the second quarter of 2025. The team in Bemidji has been working very hard, and we're very encouraged by the progress the Bemidji team has made in this area. Meanwhile, the on again, off again imposition of tariffs may significantly impact contract manufacturers with facilities in China and Mexico, including Nortech. While the tariffs with Mexico are currently somewhat uncertain, it's important to note that Nortech is not the importer of record into the United States for goods produced in Mexico as we operate under a maquiladora structure for our customers. This reduces our direct exposure to these tariffs. Throughout this period of uncertainty, we remain vigilant and hand-in-hand with our customers, we're closely monitoring any potential changes that could…

Thank you, Jay. In the next few minutes, I will provide certain details of our financial performance for the first quarter of 2025. I would encourage you to review our Form 8-K filing containing our press release and non-GAAP measures as well as our quarterly report on Form 10-Q filed earlier this afternoon with the U.S. Securities and Exchange Commission. As a continued theme, we have historically noted that our individual quarterly performance can be affected by outside factors. These might include timing fluctuations, including seasonal fluctuations, customer shipments and supply chain issues, any of which could materially impact a particular quarter either positively or negatively. Consequently, we believe it's more important and appropriate to review our business on a 12-month basis rather than focusing entirely on quarterly performance. This approach will help normalize its potential anomalies and offer a better gauge of our strategy's long-term success. So today, while I will focus most of my comments on our first quarter results, I will spend some time reviewing trailing 12-month results for the business. Net sales for the first quarter of 2025 totaled $26.9 million. This represents a 21.4% decrease from net sales of $34.2 million in the first quarter of 2024. Net sales in the first quarter of 2025 were negatively impacted by delays in aerospace and defense customers approvals of products transferred from our Blue Earth facility to our Bemidji facility as well as manufacturing and plant utilization efficiencies related to the movement of various production between our plans. We expect these managed to be positively resolved over the next 2 quarters. Our customer backlog in the first quarter of 2025 has stabilized and is consistent with the year-end 2024 backlog. Several of our aerospace and defense customers are delaying orders now until they approve the move of…

Thanks, Andy. Before we open the call to your questions, I want to highlight, once again, 3 related areas that together serve our customers and help advance Nortech's corporate stewardship, Nortech's engineering expertise, product innovation focus and sustainability plans. As for engineering expertise, we have a dedicated engineering services team that is focused on enhancing manufacturability, serviceability and supply chain risk mitigation and cost efficiency for our customers. Our 3-tier cost structure across the U.S., Mexico and China allows us to quickly adapt our global engineering resources to fit our customers' changing needs. A core goal of our long-term strategic plan focuses on unique innovation. This is somewhat unusual for most contract manufacturers. Nortech's engineering capabilities and innovation skills further our research and development activities with advancements like the Expanded Beam Xtreme fiber optic technology, or EBX that we announced in January. EBX is designed for digital data transmission through the very complex custom cables we manufacture and offers improved speed, reliability and security when compared with traditional copper. We're also excited about our Active Optical Xtreme or AOX hybrid power plus data fiber optic technology that works in sophisticated magnetic environment, a testament to our team's dedication to innovation, hard work and excellence in the field of digital connectivity solutions. AOX represents a significant advancement in our product offerings and underscores our commitment to providing state-of-the-art solutions that meet the evolving needs of our clients to deliver products that offer lighter weight, lower cost and ruggedized solutions sustainably. At the simplest level, the vast majority of Nortech's products provide complex custom digital connectivity solutions that transmit data and power in various applications. As you may know, the Internet of Things, or IoT, integrates a variety of electronic components such as microcontrollers, sensors, actuators and connectivity modules. These components in…

Thank you, Tom, and thanks, everyone, for joining us today. We look forward to talking to you in August when we report our second quarter 2025 results. Again, thank you, and goodbye.

Thank you. This does conclude today's conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.