Projected Sales Growth

Management expects Q4 sales to be roughly the same or above record Q3 levels, supported by a backlog of $19.8 million. The Direct Air Cooling (DAC) business is projected to exceed $10 million in annual sales, serving as a growth engine for edge data center and AI infrastructure applications. Accelerated momentum in the small cell market is anticipated moving into fiscal 2027. Net debt improved during the quarter, with a $1.1 million increase in cash and a $400 thousand reduction in revolver borrowings. Inventory management remains a priority, with levels decreasing to balance liquidity with customer demand.