Thank you, John. Good afternoon, everyone, welcome to Evertz Technologies conference call for our 2026 fourth quarter and year-ended April 30th.

With Doug Moore, Evertz Chief Financial Officer, and myself, Brian Campbell. Our financial press release and MD&A will be available on SEDAR and on the company's investor website.

Doug and I will comment on the financial results, then open the call to your questions. Turning to Evertz results, I'll begin with a few highlights.

First, we had record annual sales in excess of a half a billion dollars, coming in at CAD 515.8 million for the year. This includes revenue in the international region of CAD 148 million, up 16% from the prior year.

Recurring software, services, and other software revenue increased 8% year-over-year, totaling CAD 240.7 million for the year. Margin rates remain consistently strong at 59.3% versus 59.5% prior year and 58.8% two years ago.

Total margin dollars were CAD 306 million. Net earnings were CAD 64.4 million, resulting in fully diluted earnings per share of CAD 0.83.

Our sales base is well diversified, with the top 10 customers accounting for approximately 44% of sales, with no single customer accounting for more than 10% on a full-year basis. We had 87 customer orders of over CAD 200,000.

Turning to the fourth quarter, sales were up 3% year-over-year to CAD 131.6 million. Recurring software, services, and other software was CAD 55.8 million, an increase of 17% from the prior year.

Gross margin in the quarter was CAD 78.1 million versus CAD 78.9 million in the fourth quarter of the previous year. Net earnings in the quarter were CAD 15.2 million as compared to CAD 13 million in the corresponding period last year.

Fully diluted earnings per share were CAD 0.20, up from CAD 0.17 in the previous fourth quarter. Operational highlights for the quarter included Evertz's presence at the NAB Show in Las Vegas, where Evertz won prestigious Future Best of Show Awards.

TV Technology recognized our BRAVO for expanding multi-program live production capabilities for single events, our ENX for being an innovative media core for hybrid IP and SDI facilities, and our X-CALIBER as a high-density encoding platform engineered for scalable media transport. The MMA and NUCLEUS product won in the AV technology area for IPMX certified IP gateway solutions bridging pro AV and broadcast environments.

At the end of May, Evertz's purchase order backlog was more than CAD 237 million, and shipments during the month of May were CAD 33 million. We attribute the strong financial performance and robust backlog to channel and video services proliferation, increased global demand for high-quality video anywhere and any time, the ongoing technical transition to IP, IT, and cloud-based architectures, and specifically to the growing adoption of Evertz IP-based software-defined video networking solutions, IT and cloud solutions, immersive 4K and 8K ultra high-definition solutions, and our DreamCatcher IP replay and live production with BRAVO Studio.

Today, Evertz's Board of Directors declared a regular quarterly dividend of CAD 0.205 per share, payable on or about July 13th. I'll now hand over to Doug Moore to cover our results in greater detail.

Thanks, Brian, and good afternoon. Looking at revenues, despite a relatively slow start to the quarter, sales were CAD 131.6 million in the fourth quarter of fiscal 2026, a 3% increase compared to CAD 127.8 million in the fourth quarter of fiscal 2025.

For the year ending April 30th, 2026, sales were CAD 515 million, up CAD 14.2 million or 2.8% from the prior year. Quarterly hardware revenue was CAD 65.7 million, a decrease from CAD 71.7 million the prior year, while software and services revenue increased to CAD 65.8 million from CAD 56.1 million in the prior year.

Software and services represented approximately 50% of total revenue in the quarter. For the year, hardware revenue declined 1% to CAD 275.1 million, while revenues from software and services increased 8% to CAD 240.7 million from CAD 222.6 million in the prior year.

Annually, software and services revenue represented 47% of total revenue versus 44% in the prior year. Looking at regional revenues, quarterly revenues in the U.S.-Canadian region were CAD 94.2 million, a decline compared to CAD 106.5 million in the prior year.

However, this was more than offset by a CAD 16 million increase in quarterly revenues in the international region, which were CAD 37.4 million compared to CAD 21.3 million in the prior year fourth quarter. The international segment represented 28% of total sales in the quarter, compared to 17% in the same period last year.

For the year ended April 30th, revenues in the Canadian-U.S. region were down 2% to CAD 367.8 million, while international revenues increased CAD 20.8 million or 16% to CAD 148 million, driven by increased project deliveries in Western Europe in particular.

For the year, international sales represented 29% of total sales, compared to 25% in the same period last year. Gross margin for the quarter was 59.3% compared to 61.7% in the prior year.

It is worth noting the prior year comparative quarter was higher than typical, and the current quarter is more in line with our target range of 56% to 60%. For the year, gross margin was 59.3%, also within that target range.

S&A was CAD 20.7 million in the fourth quarter, relatively consistent with the same period last year. S&A expenses as a percentage of revenue were approximately 15.7% compared to 16.2% for the same period last year.

Sequentially, selling and admin expenses were up approximately CAD 2 million from Q3, driven by increased trade show and travel costs associated with our participation at the NAB Trade Show. For the year ending April 30th, selling and admin expenses were CAD 77 million, or 14.9% of sales, compared to CAD 75.9 million or 15.1% of sales in the prior year.

R&D expenses were CAD 37.7 million for the fourth quarter, an increase of CAD 1.2 million from the prior year. As a percentage of revenue, R&D expenses were 28.7% compared to 28.6% in the prior year.

For the year, R&D expenses were CAD 148.1 million or 28.7% of sales, an increase of approximately 1% year-over-year. Foreign exchange for the fourth quarter resulted in a gain of CAD 400,000, compared to a loss of CAD 4.5 million in the fourth quarter last year.

For the year, foreign exchange resulted in a loss of CAD 0.4 million compared to a gain of CAD 0.2 million last year. Turning to liquidity — cash as of April 30th was CAD 19.1 million, a decline compared to CAD 111.7 million as of April 30th, 2025.

The decline was primarily driven by the CAD 136 million in dividends distributed during the year, including CAD 75.5 million in special dividends paid during the third quarter. Working capital was CAD 131.7 million as of April 30th, 2026, compared to CAD 206.9 million at the end of April 30th, 2025.

For the three months ended April 30th, cash from operations were CAD 18.4 million, compared to CAD 33.3 million generated during the three months last year. Excluding changes in non-cash working capital and current taxes, cash from operations were CAD 19.1 million for the fourth quarter this year, compared to CAD 17.7 million for the same period last year.

In the quarter, the company used CAD 3.9 million for investing activities and CAD 17.1 million for financing activities, of which CAD 15.4 million was for the payment of dividends. For the year, the company generated CAD 76.2 million in cash from operations.

Excluding the effect of CAD 10.2 million in non-cash working capital and current taxes, the company generated CAD 86.4 million in cash from operations during the year. The company used CAD 17.8 million for investing activities, principally driven by acquisition of property, plant, and equipment of CAD 18.7 million, including the land and building purchased outside Pennsylvania.

The company used CAD 147.1 million in financing activities, principally driven by dividends paid. As of April 30th, 2026, shares outstanding were approximately 75.6 million, and options and RSUs outstanding were approximately 4.2 million.

Weighted average shares outstanding were 75.5 million, and weighted average fully diluted shares were 76.8 million. This concludes the review of our financial results.

Brian, back to yourself.

Thanks, Doug. John, we're now ready to open the call to questions.

There was a nice acceleration in the growth rate for your software business this quarter. Is there anything in particular you would call out, or is this just the ongoing trends we've discussed in prior quarters?

There were a couple of larger project milestones that we met in the quarter that would have caused CAD 7 million to CAD 8 million of additional software and services revenue to be released from deferred revenue. There are ongoing releases and deferrals throughout the year, but that was a bit more substantial than typical.

Would that be one-time revenue or recurring revenue now coming online?

It would be more of a project-based one-time milestone.

On the hardware side, there's a lot of component price inflation happening. How should we think about your ability to pass through those costs and maintain margins going forward?

We are seeing some challenges in bringing in parts and the increased costs, especially with memory in particular. The target range remains the same at 56% to 60%.

We manage pricing as needed, but I can't say everything would be passed along. Our target range remains the same and we're doing our best to mitigate those cost increases.

Any update on your government and defense opportunities?

We are very encouraged by the U.S. and international opportunities we see for Evertz.

Much of it is dual-purpose technology where we have decades of domain knowledge and expertise demonstrated in live news and sports at the highest level. Our technologies are common criteria certified and NIAP-listed for installation in secure facilities.

We have routing platforms that can handle top secret and other classification levels. We have significant experience in some high-profile locations that we can't necessarily speak to publicly.

We have increased our emphasis domestically and internationally, opened an office in Colorado Springs, and have one in Ottawa as well. We recently participated with a Canadian delegation including the Canadian Secretary of State for Defence Procurement and CEO of DIA at the SAHA Defence and Aerospace Exposition in Istanbul.

Those initiatives are continuing very strongly.

From a quantification perspective, sales to government and military aerospace customers combined to be over CAD 50 million in the year, representing over 10% of revenue, just to give some context for the scope.

Could you go a bit deeper on the defense sector and talk about how you're going to market? Are you doing that with a partner, and are you pursuing specific opportunities with partners?

Yes to all of the above. In the past, many of our large installations in the U.S.

or NATO areas have been through large prime contractors, with Evertz providing very meaningful subsystems and solutions in secure environments. More recently, Evertz joined ATHORA as a foundational partner advancing sovereign Canadian defense interoperability, led by Calian, where Evertz brings real-time operational infrastructure, secure networking, and data transport expertise to next-generation defense modernization opportunities domestically.

Evertz has also joined Babcock's Team INSPIRE to provide next-generation strategic communications for the Canadian Armed Forces. Those are a couple of the recent public domain relationships that we are very much leaning into and that are significantly contributing to these opportunities.

That CAD 50 million revenue number — how would that compare with the last five years? Are you seeing a meaningful increase in opportunities or deal sizes?

That would be roughly a 12% increase over the prior year. It has been lumpy because of big projects in the past, and we would foresee that to continue.

We are looking at large programs, which don't happen instantaneously — they typically go through an RFI stage, RFP, and then contracting. It definitely takes time, but we are really encouraged by the opportunities in front of us.

On CUSMA renegotiations — you still manufacture the bulk of your product in Canada. What have you done to prepare for any change, and is the decline in North American revenue related to that?

We continue to ramp up capacity outside Pittsburgh in Indiana. During the year we spent between CAD 7 million and CAD 8 million there, of which CAD 3 million to CAD 4 million was associated with land and building, plus additional equipment and leasehold improvements to ramp up our manufacturing capability in the U.S.

Currently the vast majority of what we're selling is USMCA compliant and not being subjected to tariffs. It's something we'll continue to monitor.

As of this time, it's not creating a clear significant impact.

If the agreement were to end, we will have to add additional capacity to our United States facility. We will have six months to fully address those plans properly.

On defense revenue — is it skewed more towards hardware or recurring software, or does it match the mix of the entire company?

It would be more skewed towards hardware. Software is a component of the modernization work and is part of those sales, but we don't have the analysis to share on the product mix breakdown at this time.

On the international revenue growth — were those two project milestones that hit in the quarter located in Europe?

No, actually they were in North America. The international revenue growth and those two project milestones are not correlated.

The international growth was project deliveries that happened to be in Q4 in international regions.

Looking forward to international, do you see that momentum sustained? Is that segment going through a period of stronger growth?

We did see significant improvement in Western Europe. There's still a fair amount of political unrest in certain jurisdictions, but year-over-year there was definite improvement in the U.K.

and in Western Europe.

During the quarter there was the conflict in the Middle East and the World Cup in North America. Did the conflict impact procurement discussions, and was there a benefit from the World Cup?

Any benefit from the World Cup would have happened in prior quarters, as infrastructure upgrades happen well in advance of the actual events — similar to how the Olympics and other events work. There was no direct Q4 benefit from the World Cup, and no late catch-up of those deployments.

Thank you, John. I'd like to thank participants for the questions and add that we are pleased with the company's performance during fiscal 2026, which saw record sales of CAD 515.8 million, including CAD 240.7 million in software and services revenue, solid gross margins of 59.3% for the year, and earnings per share of CAD 0.85.

We are entering fiscal 2027 with significant momentum, fueled by over CAD 33 million of shipments in May, with combined purchase order backlog plus shipments totaling in excess of CAD 270 million. The continued adoption of Evertz IP-based software-defined video networking and cloud solutions by the largest broadcast and new media service providers in the industry, the continuing success of DreamCatcher BRAVO and our IP replay suite, and very encouraging opportunities in the government, defense, and aerospace sector all position us well.

With Evertz's significant investments in software-defined IP, IT, and cloud technologies, over 600 industry-leading SDN deployments, and the capabilities of our staff, Evertz is poised to build upon our leadership position in the sector. Thank you and good night.