Aug 13, 2026 earnings call — Backlog growth from defense and avionics orders
Backlog rose 37.2% to $84 million, driven by large aerospace, defense and space orders.
Revenue $0.0B (est $0.0B) · EPS $0.43 (est $0.53)
Key quotes
"Our backlog continues to increase with strong growth over the past year in aerospace and defense, and space orders, and we have now had 3 quarters in a row with very strong book to bill ratios."
"We saw a 1.1% impact on gross margins this past quarter, compared to 1.25% a year ago in Q2 25."
"During the quarter, for example, the company made an investment in an innovative dual use synchronization and timing systems company Skyline Instruments Corporation."
Analyst Q&A 2
M&A interest and company capacity
Q (John Bear · Ascend Wealth Advisors): The analyst asked how management sees M&A after the rights offering and whether deal activity is increasing. He also asked if the company can handle more deals and if rights offering cash might be used for increased production.
A: Management said deal flow has increased since the rights offering and more banks are giving them ideas. They hope to complete a deal this year and are hiring a corporate development team to formalize and accelerate the process. They also said bookings have been strong and they are investing to raise manufacturing capacity and scalability to meet customer needs.
"Since the, we completed the rights offering, we have had kind of an increase in deal flow." — Cameron Pforr (CEO)
Backlog conversion, margins, and strategic investment
Q (Anja Soderstrom · Sidoti): The analyst asked how much of the backlog will convert over the next 12 months and whether timing has changed. She also asked how gross margins should be thought of in H2 and into 2027 given new-program ramps, stock-based compensation and tariffs, and what benefits the Skyline Instruments investment brings.
A: Management said backlog is very strong with book-to-bill well above 1 and that backlog extends through 2028; they have more backlog than they can currently produce for the next 2 quarters and already have more than half of next year’s production in backlog. For margins, they said rapid expansion of new products will cause growing pains while they automate production and expect H2 gross margins around 41.5 to 43.5, maybe 44%, with modest improvement next year as production becomes more efficient. On Skyline, they said it could become a customer for oscillators and that they are learning from Skyline about using their RF products where GPS is fragile or denied.
"And we have, you know, more than half of next year's, production already in the backlog." — Cameron Pforr (CEO)