Revenue for the quarter was primarily impacted by two factors. The first was supply chain constraints associated with the Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program. This constraint has since been resolved, and the Company expects the order to be completed in its fiscal fourth quarter. The second was a deliberate pause in execution of the Puerto Rico Dams Early Warning System (EWS) project pending receipt of customer payments. After the end of the fiscal third quarter, the Company began receiving those payments. Accordingly, the Company has remobilized on the island and expects work to accelerate throughout its fiscal fourth quarter. Backlog exiting the quarter was approximately $69 million.

For the fiscal third quarter, gross margins are expected to range from 55% to 58%, and adjusted EBITDA loss is expected to range between ($3.0) and ($3.3) million.

Complete financial results for the fiscal third quarter ended June 30, 2026, will be released after the market close on August 13, 2026. A conference call to discuss the results will follow.