Good morning, ladies and gentlemen, and welcome to the Nortech Systems, Inc. Second 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 Andrew LaFrence.

Thank you, Jenny. I would also like to welcome everyone to today's conference call. Jay will begin the call with a review of our operations, recent developments and business outlook. Then I will review Nortech's second quarter 2025 financial results before turning it back over 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 conference call are made based upon information known by Nortech as of the date and time of this call, and we assume no obligation to update the information in today's call. You will find Nortech's complete safe harbor statements in our SEC filings. And with that, I will turn it over to Jay for his opening comments. Jay?

Thank you, Andy, and good morning, everyone. We're glad you could join us today. Our second quarter results are testament to the dedication, resilience and execution of our entire team. Despite lower revenue compared with the second quarter of 2024, we delivered improved earnings and positive EBITDA this quarter, near-term clear evidence that our restructuring efforts and cost discipline are paying off. Increased plant utilization and improved manufacturing efficiencies across transfer programs are building the operational foundation we need for sustained performance improvement. Operationally, we have also made strategic inventory shifts, reducing raw materials while investing in finished goods to support key customer stocking programs. Further, we are starting to see improvements in our manufacturing efficiencies as our teams are gaining experience manufacturing transfer production between plants on a recurring basis. As previously noted, the first half of 2025 and the fourth quarter of 2024 revenues in our aerospace and defense market were negatively impacted by our closure of our Blue Earth facility and the transfer of customer programs to Bemidji due to unexpected delays as a result of slow customer approvals. We have made significant headway with our customers' approvals over the past quarter, and we fully expect our Aerospace and Defense business to get back to normal in the second half of 2025. The team at Bemidji has been working very hard, and we're very encouraged by the progress of the Bemidji team has made. Regarding our cost structure, we also continue to be very diligent in managing operating costs. Over the past 3 quarters, we have undertaken significant actions to reduce our cost structure with the Blue Earth facility closure, a reduction of our headquarters lease space, along with other actions during the first quarter of 2025, to further manage our headcount based on our current operating…

Thank you, Jay. In the next few minutes, I will provide certain details of our financial performance in the second quarter of 2025. I would encourage you to review our Form 8-K containing our press release and non-GAAP measures as well as our quarterly report on Form 10-Q filed earlier this morning with the U.S. Securities and Exchange Commission. As a continued theme, we have historically noted, 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 these could materially impact a particular quarter either positively or negatively. Consequently, we believe it's more important to review our business on a 12-month basis rather than focusing on quarterly performance. This approach will help normalize these potential anomalies and offer a better gauge of our strategy's long-term success. So today, while I'll focus most of my comments on our second quarter results, I will spend some time reviewing trailing 12 months results for the business. Net sales for the second quarter of 2025 totaled $30.7 million. This represents a 9.5% decrease from the net sales of $33.9 million in the second quarter of 2024. Net sales in the second 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 inefficiencies related to the movement of various production between plants. As Jay noted, we made significant headway with the transfer of these customer programs in the first half of 2025. Our customer backlog at the end of the second quarter of 2025 grew approximately $10 million from March 31, 2025, to $78.4 million. Second quarter 2025 gross profit totaled $4.8 million or 15.8% 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 focused on enhanced manufacturability, serviceability, 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 adopt 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 expanded Beam Extreme fiber optic technology, or EBX, that we announced in January. EBX is designed for digital data transmission through the very complex custom cable systems we manufacture and offers improved speed, reliability and security when compared to traditional copper. We're also excited about our Active Optical Extreme, or AOX, hybrid power plus data fiber optic technology that works in sophisticated magnetic environments, 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 to 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 turn enable IoT…

[Operator Instructions] I'm not seeing any questions come into the queue just at this moment, but we can hang on a second just in case. Okay. I'm not seeing any questions in the queue. So I will hand back over to Jay for any further comments.

Very good. Thank you, Jenny, and thanks, everyone, for joining us today. We look forward to talking with you in November when we report our third quarter 2025 results. Again, thank you, and goodbye.

Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a lovely day. We thank you for your participation.