Mike Bondi: Thanks, Ken. For Q1 fiscal 2024, we recorded $151.9 million of consolidated net sales. of which $102 million were reported in our Satellite and Space Communications segment and $49.5 million were reported in our Terrestrial and Wireless Network segment. Consolidated first quarter sales represented a 2.1% increase over last quarter and our eighth consecutive quarterly increase. Compared to the year ago quarter, our consolidated Q1 fiscal 2024 net sales increased $20.8 million or 15.9%, reflecting higher net sales in our Satellite and Space Communications segment. Consolidated gross margins for Q1 were 31.5% and 35.7% in the comparable period of the prior year. Such changes reflect an increase in net sales and overall product mix changes, including significantly higher net sales of our troposcatter and SATCOM solutions to U.S. government customers.
Gross profit in the comparable period of the prior year also reflects the benefit of higher net sales of our beyond line-of-sight communications terminals and upgrades to the Ukrainian government’s existing systems as part of an FMS contract awarded to us during that quarter. Operating income in Q1 fiscal 2024 was $2.1 million compared to an operating loss of $9.7 million in Q1 of last year. Such operating income this quarter reflects higher net sales reported as well as the benefits from profit improvement and lean initiatives implemented through October 31, 2023. This marks our second quarter of GAAP operating income since Q4 of fiscal 2021. This is not a small accomplishment when considering that we achieved this all while still incurring incremental expenses associated with our One Comtech transformation that Maria just discussed, along with our restructuring activities.
Of importance, too, we believe this provides a stronger foundation for sustainable and profitable growth in the future. As explained in more detail and reconciled in our Form 10-Q filed earlier today, we utilized a non-GAAP measure that we refer to as adjusted EBITDA. During Q1 fiscal 2024 adjusted EBITDA was $18.4 million or 72% increase from Q1 fiscal 2023. Also, as a percentage of net sales, adjusted EBITDA was 12.1%, an improvement from the 8.2% we achieved in Q1 fiscal 2023. Adjusted EBITDA margin in the more recent period reflects higher gross profit from higher net sales in our Satellite and Space segment and the benefit of our One Comtech lean initiatives. Overall, our consolidated Q1 net sales and adjusted EBITDA were within our guidance provided last quarter and we are pleased with our continued strong results, particularly in light of a macro environment that remains challenging and all while undergoing one of the most comprehensive transformations in this company’s history.
In addition to optimizing our cost structure, securing key contract wins and expanding our pipeline of opportunities, we have also been very busy addressing strategic questions about the composition of our business and the strength of our balance sheet. First and foremost, we made some important liquidity and going concern disclosures in our SEC filings today and we strongly urge you to read those disclosures carefully. Now with that as context, we discussed in October following a careful review of our current business and product lines, we saw an opportunity to divest our Solid-State Power Amplifier product line. As disclosed in our Form 10-Q filed today, we successfully completed this divestiture on November 7, 2023. We are also simultaneously addressing the need to refinance our credit facility, which expires in October of 2024, and is now current.
In anticipation of this maturity, we have engaged with third-party financial advisors to assist us in our discussions and negotiations with our existing lenders and holders of convertible preferred stock to extend or refinance the credit facility and/or amend or restructure our convertible preferred stock. We’ve also engaged with our advisors to assist us with seeking other sources of credit or outside capital. During our Q&A session, we will do our best to respond to your questions regarding our refinancing efforts as well as our disclosures in our SEC filings today. But due to the ongoing nature of our discussions and negotiations with various parties, we may be limited in what we can or will say. As we enter the second quarter of fiscal 2024, business conditions continue to be challenging and the operating environment is largely unpredictable, including factors such as inflation, rising interest rates, the repercussions of the military conflicts in Russia and Ukraine and the Middle East and a potential global recession.
Order and production delays, disruptions in component availability, increased pricing for labor and parts, lower levels of factory utilization and higher logistics and operational costs have in the past and could impact our business in the future. Despite these business conditions and resulting challenges and although we anticipate some variability from time to time as we move through our One Comtech transformational change, for our second quarter of fiscal 2024, subject to the risks highlighted in our Form 10-Q and other filings with the SEC, we are targeting consolidated net sales to increase approximately 1% to 3% and for our consolidated adjusted EBITDA margin to range between 11% and 13%. As an important reminder, net sales in future periods will no longer include high-powered Solid-State Power Amplifiers and Switches due to the divestiture of this product line on November 7, 2023.
With that, now let me return the call back over to Ken.
