Welcome to Comtech's Fiscal Q2 2024 Earnings Conference Call. As a reminder, this conference is being recorded today, Monday, March 18, 2024. I would now like to turn the conference over to Ms. Maria Ceriello of Comtech. Please go ahead, Maria.

Thank you, operator, and thanks to our investors for taking the time to dial in today. Welcome to Comtech Telecommunications Corp.'s conference call for the second quarter of fiscal year 2024. Today, I'm here with Comtech's Chief Executive Officer, John Ratigan. We're also joined today by Mike Bondi, Comtech's CFO. Before we get started today, please note we have a detailed discussion for the quarter in our shareholder letter available on our website. Certain information presented in this call will include, but not be limited to, information relating to the future performance and financial condition of the company, the company's plans, objectives, and business outlook, and the plans, objectives, and business outlook of the company's management. The company's assumptions regarding such performance, business outlook, and plans are forward-looking in nature and always involve significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's SEC filings. Due to a number of factors, including our ongoing refinancing efforts and changes in leadership, we will limit today's call to prepared remarks from management. Now, I'm pleased to introduce Comtech's CEO, John Ratigan. John?

Thanks, Maria, and thanks, everyone, for dialing in. Today's format will be more compact than usual, which I think everyone can appreciate given that I've only been in my new role since Wednesday of last week. Today, I want to accomplish two things. First, I want to properly introduce myself. Second, and before Mike discusses our financial performance in more detail, I want to provide some context for our investors, customers, employees and vendors as it relates to what I expect is the market's single biggest focus regarding the company, strengthening our balance sheet by refinancing our existing credit facility, which matures in October 2024. As I said in our investor letter, while I'm new in the role of Comtech's CEO, I'm not new to Comtech, our strategy, our markets, or our customers, and I'm not new to being a CEO. Before Comtech, I served as CEO and President of iDirect Government for 20 years, a company delivering secure satellite-based voice, video and data applications with anytime and anywhere connectivity in the air, at sea, and on land. At iDirect Government, I led the team that built the business from the ground up to over $100 million in annual revenue and led the acquisition of GlowLink Communications. I have been involved in network technologies and satellite communications for the majority of my career, and I know what it takes to both lead and grow a business. And while I joined as Comtech's Chief Corporate Development Officer last fall, my roots here run deeper. I spent 10 years at EF Data Corporation prior to its acquisition by Comtech in July of 2000. It's fair to say a lot has changed at Comtech since then, and that's exactly why I chose to return. As Chief Corporate Development Officer, I have already spent…

Thanks, John. Before discussing the status of our refinancing efforts, let me cover our recent results for Q2. Consolidated net sales were $134.2 million compared to $151.9 million in the first quarter of fiscal 2024 and $133.7 million in the second quarter of fiscal 2023. Although higher than last year, net sales during our second quarter of fiscal 2024, primarily in our Satellite and Space Communications segment, reflect delays in the timing of our receipt of and performance on orders, principally a result of the challenging business conditions, which we believe temporarily slowed down our receipt of orders from customers as well as components from suppliers. While we have worked to resolve such conditions, for example, by substantially reducing the level of accounts payable around quarter-end, such challenging business conditions during December 2023 and January of 2024 resulted in our performance on orders shifting to the third quarter and, in some cases, fourth quarter of fiscal 2024. Also, as John referenced, net sales in our Satellite and Space Communications segment for the second quarter of fiscal 2024 reflect the PST divestiture completed on November 7th, basically the start of our second quarter. For the three months ended January 31, 2024, net sales in our Satellite and Space Communications segment primarily reflect higher net sales of our troposcatter and SATCOM solutions to U.S. Government and customers, including progress toward delivering next-generation troposcatter terminals to both the Marine Corps and Army, more than offset by lower net sales resulting from the PST divestiture and of satellite ground station solutions, including our X/Y steerable antennas. Our book-to-bill ratio, a measure defined as bookings divided by net sales, in this segment for the three months ended January 31, 2024 was 0.86 times. In the second quarter of fiscal 2024, this segment was awarded over…

Thanks, Mike. Before we end the call and get back to work, I'll offer a final thought. As I said at the top of the call, I take seriously my commitment to the company, employees, customers, vendors, and investors. You can expect me to be direct in my communications and clear about my priorities. Our top priority right now is strengthening our balance sheet. We completed the first step toward this objective with a strategic growth investment announced in January. We are working diligently to complete the final step of refinancing in the near term. When I joined Comtech, I was enthusiastic about the opportunities that lay ahead for the company. Today, I am proud to lead this talented organization. We have end markets that are changing and growing, the best people and products in the industry and in our growing sales and visible revenues, a vote of confidence and appreciation from our customers that Comtech is the right partner to help them navigate a challenging landscape. Thank you again for your time today. I look forward to getting to know many of you in the days and weeks ahead. And operator, that ends our call for today.

Thank you, sir. This does conclude today's program. Thank you for your participation. You may disconnect at any time.