Mike Crawford

Mike Crawford asked about Ducommun's capacity to grow within its optimized footprint without significant growth CapEx, following the restructuring. He also inquired about the company's involvement in hypersonics and counter-hypersonic programs, specifically whether it's more on the structural or electronics side.

Answer

Stephen Oswald, Chairman, President, and CEO, estimated at least 30% room in current factories for missile increases, citing the Joplin, Missouri plant as an example with potential to double revenue. Suman Mookerji, SVP and CFO, confirmed that additional CapEx for capacity expansion is not significant and can be accommodated within the regular budget. Regarding hypersonics, Suman Mookerji and Stephen Oswald clarified that Ducommun's involvement is primarily on the electronics side, with ruggedized interconnects and cables.

Mike Crawford inquired about Ducommun's capacity to grow within its optimized footprint without significant growth CapEx, particularly in light of the completed restructuring. He also asked about the nature of Ducommun's partnership with primes on hypersonics and counter-hypersonic programs, specifically whether it's more structural or electronic.

Answer

Stephen Oswald, Chairman, President, and CEO, estimated at least 30% room for growth in existing factories, citing the Joplin, Missouri plant's potential to double revenue. Suman Mookerji, SVP and CFO, added that incremental CapEx for capacity expansion is not significant and can be accommodated within the regular budget. Suman Mookerji clarified that involvement in hypersonics is primarily on the electronics side, focusing on interconnects, with Stephen Oswald adding 'a lot of cables.'

Mike Crawford questioned the strategy for the engineered and aftermarket products business, asking if its current ~$200M run rate provides enough scale to be a standalone entity and how difficult a separation would be. He also asked for an update on the company's progress in the space and unmanned systems markets.

Answer

SVP & CFO Suman Mookerji highlighted the synergies between the engineered products business and the core contract manufacturing operations, noting they share the same customer base. Chairman, President & CEO Stephen Oswald added that building scale in that segment is a top priority and advised to 'stay tuned' on its long-term structure. Regarding space, Oswald described the market as opportunistic for Ducommun, which supplies key components but remains more strategically focused on defense and commercial aerospace due to high development costs.

Mike Crawford inquired about Kratos' offerings in small drones, particularly in the context of the Gauntlet competition, and their capabilities in the counter-UAS area. He also asked for more details on the capabilities gained with the Nomad Global Communication Solutions acquisition and its potential LTM revenue.

Answer

Eric DeMarco, President and CEO, stated that Kratos has a family of Class 1 and Class 2 small drones, primarily developed with the U.S. Army, and they were successful in the initial phase of the Drone Dominance Program, focusing on offensive capabilities. He mentioned Kratos' involvement in other counter-UAS programs, building hardware and tethered drones. DeMarco described Nomad Global Communication Solutions as a '1 plus 1 equals 4' acquisition, bringing mobile command and control, counter-UAS, and offensive UAV control systems. Deanna Lund, EVP and CFO, confirmed Nomad's LTM fiscal year revenue was approximately $75 million.

Mike Crawford inquired about Kratos' offerings in small drones, particularly in the context of the Gauntlet competition, and if the company has capabilities in the counter-UAS area. He also asked for details on the capabilities gained through the Nomad acquisition and its LTM revenue.

Answer

Eric DeMarco, President and CEO, Kratos Defense & Security Solutions, stated that Kratos has a family of Class 1 and Class 2 offensive small drones, primarily developed with the U.S. Army, and is progressing in the Drone Dominance program. He confirmed Kratos' involvement in other counter-UAS programs, building hardware and utilizing tethered drones. He described Nomad as a '1 plus 1 equals 4' acquisition, bringing mobile command and control, counter-UAS, and offensive UAV control systems. Deanna Lund, EVP and CFO, Kratos Defense & Security Solutions, added that Nomad's LTM fiscal year revenue was approximately $75 million.

Mike Crawford asked about other providers using Kratos's systems for hypersonics testing and Kratos's opportunities in next-generation command and control.

Answer

Eric DeMarco, President and CEO of Kratos, confirmed that other companies are launching systems on Kratos's platforms, citing Hypersonix's Dart hypersonic drone being launched on Kratos's Zeus. He declined to provide details on next-generation command and control opportunities due to classification.

Mike Crawford inquired about Kratos' involvement in other providers' hypersonic missile testing, specifically mentioning Castellian's Blackbeard, and asked about opportunities in next-generation command and control.

Answer

Eric DeMarco, Kratos' President and CEO, confirmed that Kratos' systems are used for launching third-party hypersonic drones, citing Hypersonix's Dart hypersonic drone being launched on Kratos' Zeus. He stated that he could not discuss classified information regarding next-generation command and control opportunities.

Mike Crawford from B. Riley Securities inquired about the ranking of key missile programs, the status of new facility constructions, and whether Kratos would begin another Valkyrie production run before securing a new award.

Answer

CEO Eric DeMarco confirmed involvement in numerous key missile and radar programs without ranking them. CFO Deanna Lund stated that facility build-outs are mostly on track, though some construction schedules could slip into 2026. Mr. DeMarco declined to comment on future Valkyrie production plans to avoid getting ahead of customers.

Mike Crawford asked about specific missile programs supporting turbojet engine production and how Valkyrie manufacturing impacts financials upon contract award, plus Prometheus reporting.

Answer

CEO Eric DeMarco mentioned missile programs like JDAM and Mace. CFO Deanna Lund explained revenue recognition upon contract. Prometheus will be below the line.

Mike Crawford from B. Riley Securities asked about Anterix's strategic steps following the anticipated favorable FCC report and order for 5x5 MHz spectrum, specifically inquiring about spectrum concentrations across the U.S. and potential costs associated with acquiring additional spectrum in certain markets.

Answer

Scott Lang, President and CEO, expressed cautious optimism for the February 18th FCC decision, stating that Anterix would provide detailed plans soon after the order is finalized. Chris Guttman-McCabe, Chief Regulatory and Communications Officer, added that Anterix's strong balance sheet allows flexibility in product offerings and meeting utility customers' spectrum and capital allocation needs, with clearing costs and unjust enrichment payments factored into their pricing model.

Mike Crawford from B. Riley Securities asked about Anterix's strategic steps and spectrum concentration across the U.S. in anticipation of a favorable FCC report and order for 5x5 MHz broadband deployment, specifically inquiring about how they would manage varying spectrum availability and potential clearing costs in different markets.

Answer

Scott Lang, President and CEO of Anterix, expressed cautious optimism for the upcoming February 18th FCC decision and stated that detailed plans for leveraging the 10 MHz spectrum would be shared shortly after. Chris Guttman-McCabe, Chief Regulatory and Communications Officer, clarified that spectrum clearing realities and incumbent situations differ market-to-market. He emphasized that Anterix's strong balance sheet allows flexibility in tailoring product offerings and delivery timelines to meet specific utility needs and capital allocation strategies, with clearing costs and unjust enrichment payments factored into their pricing.

Mike Crawford inquired about the potential gain from remaining narrowband-to-broadband license exchanges, the timing for these conversions, and the company's strategy for spectrum in regions where a utility has dropped out of the pipeline.

Answer

CFO Timothy Gray explained that while Anterix can apply for broadband licenses in 90% of U.S. counties, only 10% have been granted, with over $1 billion in potential gains expected over time. He declined to provide specific timing guidance due to the variability of the FCC approval process. COO Ryan Gerbrandt clarified that the utility mentioned did not fall out of the pipeline; rather, its executive sponsor changed roles, and Anterix remains confident in the opportunity.

Mike Crawford of B.Riley Securities asked for an update on new members of the Anterix Active Ecosystem, questioned the potential impact of a competitor acquiring 800 MHz spectrum, and inquired about the company's goals for new contract signings over the next 12-18 months.

Answer

COO Ryan Gerbrandt noted the ecosystem has grown to over 140 participants, highlighting a recent product offering from Digi International. CEO & President Scott Lang addressed the competitive landscape, stating Anterix is well-positioned with proven deployments, strong economics, and a clear path to 5x5 MHz, making it the preferred choice for utilities. CFO Timothy Gray stated that Anterix aims to significantly grow its contracted proceeds in fiscal 2026, surpassing the $116 million achieved in fiscal 2025.

Mike Crawford from B. Riley Financial, Inc. asked about the ongoing evaluation of Viasat's government assets, specifically requesting potential scenarios for managing key dependencies of satellite assets if the Defense and Advanced Technologies (DAT) business were to be separated from the rest of Viasat. He also inquired about Viasat's competitive position in information security, particularly concerning quantum-resistant cryptography, asking if it remains the same, stronger, or threatened by emerging competitors.

Answer

Mark Dankberg, Chairman and CEO of Viasat, stated that the issues regarding capital structure, technology, and potential licensing or other agreements are precisely what the strategic review is addressing, but he would not speculate on specific scenarios at this point. He emphasized the focus on shareholder value and ensuring a strong competitive position in growth markets. Regarding information security and quantum-resistant cryptography, Dankberg indicated that Viasat is experiencing good growth in that business and believes its competitive position has likely improved due to the urgency and increased market size of the problem, making him bullish on the area.

Mike Crawford asked about potential scenarios for managing key dependencies of satellite assets if Viasat's Defense and Advanced Technologies (DAP) business were to be separated. He also inquired about Viasat's competitive position in information security, particularly with the global refresh driven by quantum-resistant cryptography and the emergence of new competitors.

Answer

Mark Dankberg, Chairman and CEO, acknowledged that issues like capital structure, technology, licensing, and agreements are part of the ongoing thorough evaluation for a potential separation, but he refrained from speculating on specific outcomes, emphasizing a focus on shareholder value and competitive positioning. Regarding information security, Mr. Dankberg stated that Viasat's competitive position has likely improved due to the urgency of the problem, and the market size has significantly expanded, making the company bullish on this area.

Mike Crawford inquired about the HaloNet system, its timeline, and specific applications such as launch telemetry, LEO to GEO relay for sensor data, and tasking/command and control. He also asked about the impact of quantum computing on Viasat's cryptographic and encryption franchises and how the company is accounting for the $420 million cash received from Ligado on Halloween and the additional $100 million expected on March 31st.

Answer

Mark Dankberg, Chairman and CEO, explained that HaloNet targets several markets, including launch telemetry and space relay for sensor data and command/control, aiming to reduce latency and address bottlenecks in government assets. He noted that quantum computing drives demand for quantum-resistant cryptography, leading to a refresh in secure systems, and also fuels demand for data center cryptos due to computationally intensive applications like AI. Shawn Duffy, Chief Accounting Officer, stated that most of the Ligado lump sum proceeds would go to deferred revenue and be recognized over the contract life, with interest income being EBITDA neutral. Gary Chase, CFO, added that a chunk would also appear in operating cash flow.

Mike Crawford from B. Riley Securities inquired about Nexteer's revenue contribution to Kimball Electronics in the December quarter, the broader drivers of automotive recovery beyond Nexteer's steer-by-wire, the capacity and ramp-up expectations for the new Indianapolis medical facility, and the specific value-added CMO applications, including plastic injection molding, that are driving the fastest growth.

Answer

Jana Croom, Chief Financial Officer, confirmed Nexteer represented 20% of revenue in December and noted that steering and braking programs with major automotive customers like Nexteer, ZF, and HL Mando are contributing to recovery. She detailed the new Indianapolis facility as 300,000 sq ft, offering significant growth potential for new medical customers, not primarily Philips. Ric Phillips, CEO, added that the facility would focus on single-use surgical instruments, auto-injectors, and substantial plastic injection molding capacity.

Mike Crawford inquired about Nexteer's revenue contribution as Kimball Electronics' largest automotive customer in the December quarter, and whether other automotive customers are also driving steer-by-wire and braking growth. He also asked about the capacity and ramp-up expectations for the new Indianapolis medical facility, its target customer base (new/emerging vs. existing like Philips), and the fastest-growing value-added CMO applications.

Answer

CFO Jana Croom stated that Nexteer accounted for 20% of revenue in December and confirmed that other major automotive customers like ZF and HL Mando are also expanding in steering and braking. Regarding the Indianapolis facility, Ms. Croom mentioned it is 300,000 sq ft, offering significant growth opportunities. CEO Ric Phillips added that it would house single-use surgical instruments, drug delivery devices (like auto-injectors), and significant plastic injection molding capacity, primarily for new and emerging medical customers.

Mike Crawford of B. Riley Securities inquired about the new Indianapolis facility's timing and revenue capacity, the company's capital allocation focus between the Medical CMO and other areas like industrial, and the general impact of tariffs on its global operations.

Answer

CEO Richard Phillips stated the Indianapolis facility will have its grand opening in November and can handle "hundreds of millions of dollars" in business. He confirmed a primary focus on the Medical CMO but noted opportunities exist across all verticals. Regarding tariffs, he explained that Kimball is often not the importer of record, considers tariffs a pass-through cost, and takes "no regrets moves" like qualifying alternative supply sources. CFO Jana Croom added the new facility's capacity could be "well in excess of $500,000,000".

Mike Crawford, Senior Managing Director at B. Riley Securities, inquired about the strategy for porting advanced printed circuit board processes, such as those for 78-layer asymmetric designs, from Dongguan to other facilities in China to support additional data center capacity, and the timeline for this transfer. He also asked about TTM Technologies' current involvement and future opportunities in the space market, particularly concerning the requirements for printed circuit boards in low Earth orbit satellites.

Answer

President and CEO Edwin Roks confirmed that TTM is working on boards beyond 60 layers, including 78 layers, and sees demand for over 100 layers due to increasing system compactness. EVP and CFO Dan Bailey clarified that the capital expenditures for data center capacity are for additional equipment and optimization within existing Dongguan and Guangzhou factories, not new facilities, ensuring efficient capacity ramp-up. Roks added that space is a strategic direction, with TTM already working on technologies for radiation-hard integrated modules and PCBs for this market, viewing it as both a current and future opportunity.

Mike Crawford asked for more details on the additional data center capacity in China, specifically whether advanced PCB processes, such as those for 78-layer boards, are being ported to other facilities and the timeline for such transfers. He also explored the opportunity in the space segment, particularly for low Earth orbit satellites, and if TTM is developing specific PCB properties for this market.

Answer

President and CEO Edwin Roks confirmed TTM is working on boards beyond 60 layers, including 78 layers, and sees demand for over 100 layers due to increasing system compactness. EVP and CFO Dan Bailey clarified that the capital expenditures are for optimizing and adding equipment to existing Dongguan and Guangzhou factories, not building new ones, ensuring efficient capacity ramp-up. Edwin Roks also stated that space is a strategic direction for TTM, requiring advanced PCBs and integrated, radiation-hard modules, and that the company is actively working on these solutions.

Mike Crawford of B.Riley Securities inquired about the capacity expansion plans in Penang, the project timeline for the Syracuse facility, capital plans for the new Wisconsin site, and the current environment for potential M&A in the defense and RF sectors.

Answer

President & CEO Thomas Edman detailed that Penang's Phase 1 has ~$200M in revenue capacity, with a potential 20% increase in Phase 2, and the new land purchase secures long-term options. He confirmed the Syracuse facility is on track for production in H2 2026, while capital plans for Wisconsin are undefined pending customer commitments. On M&A, Edman noted a recent pause but expects more opportunities in the microelectronics and RF microwave space to emerge over the next 12-18 months.

Mike Crawford asked about the timing of the $130 million new bookings flowing into backlog, the company's strategy for achieving top-line growth amidst product mix changes, and any updated plans for addressing the PIK preferred stock obligation.

Answer

Ken Traub, Chairman, President, and CEO, clarified that a portion of the $130 million booking occurred in Q1, with the majority anticipated in Q2. He emphasized Comtech's focus on optimizing cash flow, having strategically downsized to position for future regrowth, and expressed confidence in reaching an inflection point for improved margins and attractive growth opportunities by shifting away from low-margin products. Regarding the PIK preferred stock obligation, Mr. Traub stated the company is exploring various options to enhance its capital structure but is not ready to announce specific plans.

Mike Crawford from B. Riley Securities inquired about the timing of the $130 million new bookings flowing into backlog, the company's strategy for returning to top-line growth given product mix changes, and potential options for managing the PIK preferred stock obligation.

Answer

Chairman, President, and CEO Ken Traub clarified that the majority of the $130 million booking would be recognized in the second quarter. He emphasized Comtech's focus on optimizing cash flow, having strategically reduced low-margin business to position for future growth with higher-margin opportunities. Regarding the PIK preferred stock, Mr. Traub stated the company is exploring options to improve its capital structure but was not ready to provide specific details.

Mike Crawford of B. Riley Securities inquired about the development and production status of next-generation digital backend modems, including the EDEM program. He also asked about any outstanding competitions for the 911 business and the booking trends for the current quarter.

Answer

Daniel Gizinski, President of Satellite & Space Communications, reported good progress on the EDEM program, with certification expected by the end of the calendar year, and noted that other product variants are already in early production. Jeff Robertson, President of Terrestrial & Wireless Networks, confirmed the company is awaiting decisions on several compelling bids for its 911 business but declined to provide specifics. CEO Kenneth Traub stated that the company is not providing guidance and would not comment on current quarter bookings.

Mike Crawford from B. Riley Securities asked about AST SpaceMobile's plans for manufacturing L-band satellites, specifically if L-band and S-band would be integrated onto the same satellites, and if FCC approval was a prerequisite. He also inquired about the Saudi Telecom agreement's commercial service launch in Q4 2026, the spectrum to be used, and if there were additional service revenue commitments beyond the $175 million prepayment.

Answer

Scott Wisniewski, President and Chief Strategy Officer, and Abel Avellan, Chairman and CEO, confirmed plans to interleave L-band and S-band with 3GPP frequencies on satellites, with mid-band satellite launches by end of next year. They stated that commercial services with STC and other partners would primarily use operator spectrum available in devices. Scott Wisniewski clarified that the over $1 billion in revenue commitments are hard commitments, with STC's agreement including both a prepayment and a long-term revenue commitment.

Mike Crawford asked if AST SpaceMobile intends to integrate L-band and S-band capabilities on the same satellites during manufacturing, whether FCC approval was a prerequisite for L-band satellite production, and sought clarification on the spectrum used for the Saudi Telecom agreement and additional service revenue commitments.

Answer

Scott Wisniewski, President and Chief Strategy Officer, and Abel Avellan, Chairman and CEO, confirmed that satellites will include all 3GPP frequencies (low-band and mid-band), including acquired L and S-bands, with mid-band satellite launches planned by the end of next year. They stated that the Saudi Telecom agreement, like others, will start with operator spectrum available in devices, and reiterated that the over $1 billion in revenue commitments are hard commitments, not soft, and include the STC prepayment and long-term revenue commitment.

Mike Crawford of B. Riley Securities requested specifics on the improvements in on-time delivery, the revenue potential of the 60 dedicated medical machines, the expected timing of the CARES Act tax refund, and the execution plan for entering the electrical harness market.

Answer

SVP & COO Tim French detailed the operational turnaround, moving from 'red' to 'green' scorecards with all customers over the past 18 months. CEO Harold Bevis and French estimated the current medical machine footprint provides about $40 million in available annual capacity. CFO Christopher Bohnert confirmed the tax refund is imminent, expecting it within weeks. Bevis explained the electrical harness entry is a lower-cost initiative than medical, enabled by a newly hired, experienced team.

Mike Crawford of B. Riley asked for metrics on on-time delivery performance, whether there was a correlation between improved deliveries and new business wins, and for a breakdown of products from the China JV that are exported versus those that remain in China.

Answer

COO Tim French explained that while a formal on-time delivery metric isn't tracked, past-due backlogs have dropped significantly, leading to 'green scorecards' from all customers. Both French and Executive Harold Bevis confirmed a direct correlation between this improved performance and new wins, with Bevis noting 77% of new business came from customers who previously had them on 'new business hold.' Bevis also confirmed that parts from the China JV are increasingly exported as end customers like BYD expand globally, and that overall demand in China is increasing as European Tier 1s shift production there.

Mike Crawford of B. Riley Securities asked about NextNav's next steps in the FCC process toward a Notice of Proposed Rulemaking (NPRM) and for an update on potential partnerships with space-based PNT providers.

Answer

CEO Mariam Sorond stated that NextNav has submitted a complete and robust technical record to the FCC, which she believes is sufficient for the agency to proceed with an NPRM. Regarding partnerships, Sorond confirmed the company's belief in a 'system of systems' approach and continues discussions with satellite players, but had no specific updates to share at this time.

The analyst inquired about the potential for securing more than the forecasted EUR 200 million from Bpifrance and asked for clarification on the timelines for both the KfW due diligence and the Bpifrance funding process.

Answer

The EUR 200 million from Bpifrance is the current best guidance based on the project's spend and eligibility. The 6-to-8-week timeline for KfW due diligence is from the present time. The company declined to speculate on the specific timing for the French (Bpifrance) process to respect the ongoing procedures.

Mike Crawford of B. Riley Securities asked about the amount of capital needed to complete the ODM transition, the specifics of the D&O insurance deductible for ongoing legal expenses, and the revenue recognition policy for the new channel distribution strategy with partners like SYNNEX.

Answer

CEO Tom Wilkinson and CFO Bob Tirva clarified that they are shoring up the balance sheet as a precautionary measure against uncertain legal costs and the gap between legacy and new product cycles, rather than for a specific capital need. Tom Wilkinson confirmed the legal costs relate to an SEC matter with a $7.5 million D&O deductible. Bob Tirva explained that revenue from distributors is now recognized upon shipment, with a reserve for returns.

Mike Crawford of B. Riley inquired about Sonim's channel business model, specifically regarding revenue recognition for new tablets and revenue expectations for the latter half of the year. He also asked about the proprietary nature and recurring revenue potential of Sonim Scan software, and whether the disruptive pricing for new products is a long-term strategy.

Answer

CEO Tom Wilkinson explained that the goal is to recognize revenue upon shipment to channel partners. While declining to provide future guidance, he noted strong Q1 sales for the RS80. Wilkinson clarified that basic Sonim Scan functionality is integrated into the new hardware and is not a separate recurring revenue stream, but part of the broader SonimWare suite which drives customer loyalty. He confirmed that the company's price-differentiated strategy is intended to be permanent and long-term, not just an introductory offer.