Such operating income reflects higher net sales reported during the quarter, as well as the benefits from profit improvement and lean initiatives implemented during the second half of fiscal 2023. This marks our first quarter of GAAP operating income since Q4 of fiscal 2021. And the more impressive part is that we achieved this all while still incurring incremental expenses associated with our One Comtech transformation and restructuring activities. We think it is important to take a quick second out to thank all of our customers, suppliers, and most importantly, employees who made this happen. As explained in more detail and reconciled in our Form 10-K filed earlier today, we utilize a non-GAAP measure that we refer to as adjusted EBITDA. During Q4 fiscal 2023, adjusted EBITDA was $18.9 million, a 51.2% sequential increase from Q3 fiscal 2023.
As a percentage of net sales, adjusted EBITDA was 12.7%, an improvement from the 9.2% we achieved in Q3 fiscal 2023. For the full year, adjusted EBITDA was 9.7%, an increase from the 8.1% we achieved last year. Adjusted EBITDA margin in the more recent period reflects higher net sales and the benefit of our One Comtech lean initiatives implemented in the second half of fiscal 2023, offset in part by a lower gross profit percentage due to shifts in the mix of solutions delivered in 2023. Overall, our consolidated Q4 net sales and adjusted EBITDA were ahead of our guidance provided last quarter and we’re pleased to have well exceeded our targets 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.
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 first quarter of fiscal 2024, we are targeting consolidated net sales to sequentially increase approximately 1% to 4% and for our consolidated adjusted EBITDA margin to range between 11% and 13%. Such targets reflect our assumptions regarding the timing of and performance on orders from the U.S. Army for VSAT equipment, as well as the timing of and our performance on our recently awarded $544 million GFSR contract, which as Ken mentioned earlier, has been protested by the prior service provider. And while we expect a near-term close, such targets also do not assume any divestiture at this time due to the uncertain closing date of the transaction.
Now, let me return the call back over to Ken. Ken?
Ken Peterman: Thanks, Mike. Before we take your questions, I want to say that I’m excited about the momentum we are building as we progress on our One Comtech journey. Going forward, I’m excited that we’re already realizing significant strategic wins and material results that stem directly from our actions. Our implementation of standard tools, procedures and process discipline across the enterprise have been a key driving factor in the improvements we are seeing in our balance sheet and our performance. We have examined everything from supply chains to contract terms and the outcomes are evident in the results you’re seeing today. The impact of our cost reduction actions cannot be overemphasized and as difficult as those actions were, they have resulted in a leaner, more agile organization where we are able to identify opportunities and prosecute them in a much faster and more efficient manner than ever before.
Our ability to draw from all parts of the business to gather talent and expertise is one of the many advantages of our One Comtech transformation, advantages that will further increase shareholder value as we hone these abilities over the coming months and years. Customers as well are also already benefiting from these actions as we are increasingly able to turn our attention to more thoughtful and comprehensive customer engagement and collaboration strategies to win new business as valued partners with innovative, more comprehensive solutions. Our new business capture processes will continue to improve and enable us to enter new markets by combining technologies from within our existing portfolio as well as engaging with EVOKE partners to create truly cutting-edge innovative capabilities where the end solution is a far greater customer value than any of the individual parts.
