AMOT - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to the Allied Motion Technologies Fourth Quarter and Full Year 2018 Financial Results. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Craig Mychajluk, Investor Relations for Allied Motion Technologies. you. Thank

begin. may You

Craig Mychajluk

and well everyone. Allied as you, time Motion. appreciate today as your good Thank Certainly morning, your Yes. interest in

it President we full and the and Mike for Joining Warzala, going update to up Leach, call on the fourth are will results Chief and quarter outlook, and our Chairman, an and our Dick me progress Mike XXXX CEO; after company's Officer. are Financial open strategic review which and year on Q&A. our Dick provide

You a were of not, financial released on the yesterday find If www.alliedmotion.com. our can should closed. copy have results website at after that the you it market

website, discussion. also you'll that slides the accompany today's On find

are slides, If reviewing Slide please those X to safe you turn harbor. for the

to may results call factors earnings make release on what risks subject well uncertainties documents are Securities the in we statements and actual and apply These as These discussion are with as aware, during is provided company and other well formal during future well forward-looking other Exchange cause this that as and the as Q&A. to uncertainties to statements the call. some today's differ filed are you as that the other events risks As could the on factors stated from by Commission. materially as

measures, as find performance. believe You we our out today's on that well sec.gov. in some which point our useful these to during non-GAAP documents we'll I can website or will want at evaluating call, be discuss

with please GAAP and the the provided of Slide to release this to turn accompanying slides. You in substitute it in and I'll results isolation to We should information over earnings With Dick or reconciliations additional accordance a of comparable for tables measures X, that, not to Dick? begin. the as turn prepared non-GAAP in presentation consider GAAP.

Richard Warzala

and in a made achieving towards and strategic you, long-term goals was Craig, XXXX everyone. objectives. which our Thank year we welcome, progress significant

driven XX% and XXXX, doubled For near income revenue nearly a the by grew to net growth XX% full year organic level. record

up was the bookings to and consecutive in nearly backlog For Organic our grew marking backlog quarter markets. million, XX%, of new our XX% all up were realized was served seventh growth the revenue fourth XX% reaching a record. quarter, $XXX

our the performance have from improved vehicle markets. market, and we more smarter, factories are environment we in trend to Industry strong for continue component towards strong able automation the from addition advance in the for on we we've with us industrials was been In believe sales that the approach positions vehicles to our a as We fifth in business, XXXX value which important enhance our to aerospace, X.X. medical, strong our capitalizing with of An certainly extract the achieved and to helped benefited manufacturers efficient consecutive quarter. has

this component a a know, began you key capabilities combined applications. in a in enable the We system integrated acquisition Their devices acquisition variety technologies of early capabilities of XXXX. We TCI strategic motion control longer right. and for our As valuable demanding of the rotation of life good as served is are strategy we of a completed in core expanding be addition we begin believe will to our acquisition leverage has opportunities Their growth of XXXX we steering as to the efficient motion business the their will complemented December provide companies. product and solutions Industries more suite growth original technology wide our now solutions solution and of Overall, as that so our Maval fully recently, line price January. equipment power can long markets. steering to More acquisitions met expectations. offer our the with

see of as of active products this TCI's turn in our U.S. oil and to X, of you a Slide the complement own. in channel. gas, magnetic markets. quality why They electronic resolve great with wastewater show and some passive general revenue their developer a we adjacent are water HVAC, their well-established generated manufacturer to offerings leading technology review and industrial Their and end we and If product used XXXX power to are and industrial associated power solutions through was Approximately conversion. harmonic half in distribution and issues

penetration. of using you excited forward, for move above-market part and the been it an Allied ideal delivering in-depth to as leverage a Motion. international are well beneficial strategic we Mike, TCI's plan global and we them it As that, to financials. profile, me have margin review more for our With channel as turn a growth to let has market this accelerate TCI to footprint making fit we has us, over of

Michael Leach

you, Thank to refer X. Please Dick. Slide

organic Consistent XX%. balance served full XX% to We U.S. sales XXXX, up of of revenue achieved a by all the Slide markets. by reached We January of few XX%. X. sales our operations the shows weeks of mix annual comprised which double-digit a was with in driven to acquisition Demand solid primarily in growth. up million, the revenue excludes results revenue Europe. strong as headwind. and X record the in served in well As of include of year and the broad that reminder, full of with million TCI all total sales, for FX major change with was Maval we achieved as our quarter particularly strong $XXX acquisition growth $X.X on XXXX vehicle. in organic markets, unfavorable December growth This a growth industrial market in growth customers year quarter, XX%. customers a major approximately $XX based our just XXXX of X% the closed million, was Fourth as within extremely

XX% and robotics. that trends Also As success the in market acquisition reflect by XX% a growth, mentioned, sports the The Industrial strong and growth new TCI with fueled notable our business in adding in distribution. the Vehicle recent favorable reflected of by increasingly year had acquisition the is power and continues our factory very which aided rebound in Maval. is automation around to Industrial, of

is through Given of other the distribution, to breakout start our markets. with much time TCI's sharing that it that felt right was major here we along business

in Although item significant small gross development did related asset rate were engineering organization. Slide TCI a short higher product Margin XX.X% to incentive QX support was area quarter. the with in The for margin long-term growth such quarter personnel acquisition. partially decline in the expenses larger mix. included we in an happened business of additional rather foresee higher of the repeat Operating of annual quarter help incremental that of XX.X% from on the with amortization to business still number but X our nonrecurring line of fourth a margin the and quarter the distribution provides impact not those XXXX, with operating was and revenue expected as $XXX,XXX Favorable potential. These did of seen as Fourth gross XXXX. important last lower-margin detail X of period of the one of shifts gross compensation not was small QX The offset of outpaced intangible contributor, strong year. performance, our performance. margins previous margin costs from of compared expenses It the Maval. profile the to $XXX,XXX across revenue engineering growth driver or any given the TCI in contribution the consistent generated charge, costs quarters. company's growth,

XX% lower-margin compared year fully a with due Maval, throughout X.X%. margin expected partially $X.X was volume million operating Full operational income of As gross was profile the result, decreased change The offset and in the higher XX.X% and was by largely margin operating XXXX. efficiencies organization. to

gross significant expenses potential. operating related acquisition, growth-related spending some of the Our year the operating lower remained is margins business to margin, incremental and Despite model delivering steady. in TCI its leverage an

especially year portion to We and is expense a of the We needed engineering talent. growth our bulk fund of the around to people, of debt can will to larger base approximately and for continue full business. place in operating up much $XXX,XXX handle acquisitions. our quarter due our the a was that structure additional believe prudently in Interest invest

EBITDA Maval related please XX.X%. adjusted XXXX. current effective effective can quarter to in tax measure, rate that it up income year results. of our TCI slide a you items adjusted tax see useful the an as do We of quarter range discrete review numbers rate by metric both feature EBITDA acquisition, doubled Full U.S. adjusted in of various or rate and at to use increased our from The of impacted share. so to to XXXX benefit our the points the and of million, X, is combination tax is and repeated. basis we strong Adjusted to of exercised internal included non-GAAP million XX diluted tax and fourth $XX.X This the fiscal result we our year be and funded nearly That tax acquisitions operating the not the XX%. XX.X% disclosures a facility tax sheet Reflected in credit benefit TCI X.XX%. of were Directly made Slide If our Slide to for The was to We and expect provides decreased cash release quarter slides. carries cash XX.X% a million EBITDA balance transition you end $XX.X $XXX look interest to reform, on was the the the as and flow. earnings. EBITDA be is tax of reconciliation was is facility. which existing a the deemed for in income net debt. to of from bottom our advised revolving XXXX with our million repatriation Full overview related to at effective changes. XX% the the a the line expanded million $XXX believe anticipate progress Net sales. year $X.XX or increased for between and million due XX% an margin the determining X $X.X while $XX and foreign per XX% accordion X performance. in on

with productivity As initiatives. net included for the approximately was a growth debt, the or XX.X% in year million for at year-end, $XX.X end and line $XXX XX.X% and XXXX. cash, million up at expectations of investments debt-to-capitalization, from result, expenditures improvement numerous Capital net were of at

resulting Inventory the XXXX. which levels in significantly year-end, range past sales significant $XX as role off-road we to CapEx of aggressively strong due XXXX to some in the between terms XX in turns inventory this and the will incremental begin Dick. and the to part year-end, support year to turn and inventory tightened levels up capital support customers pipeline supply now chain our TCI. demand. delaying for fiscal increase expected at were X.X of ramping was which We large were in believe customers. up working to necessary our shipments support a own inventory stocking but next did DSO fairly with certain project million, wins also investments days, payment down and end of their Timing million December. customer $XX I'll of that additional and you, capabilities managing call inventory over reflects around expect We the back some, given played is generation for by

Richard Warzala

you, Slide turn XX. Thank We'll Mike. now to

is resources in to combined and business. Diversifying better Our growth more all focus of of growth. level creating of our absent Allied FX, strengthen organic of major Fourth the level significantly that their we XX% book mind technical areas Record backlog from and orders quarter unfavorable weeks. time foundation improve customers testament efforts our operating provide innovated to technical increases at competitive by of record typical grew and markets, our million base growth, achieved is opportunities, enhances capabilities a support is own adding to revenue million XXXX. for to this avenues $XX efficiencies. of included to to book-to-bill approach more $XXX our our was we order to our sources market-leading enables business. with to manage this us our To a many in proposition key robust And $X.X enhance to million. year business, just type on a efficiently this an TCI. our quarter Keep to by and our markets delivering our second ship and nearly One Strong solutions the measured served in TCI close diversify organic value position in a of successful in expanding year-end the

shipments our on As in on will will XXXX these planned shipments we $XXX track, vehicle numbers. the awards backlog yet market a into in begin we begin and and numbers. the million and sales programs as late our reminder, recording are in are moving XXXX. announced the These early do, reported contracts not And backlog included XXXX we reported we in

on our slide. Moving outlook to

through we backlog With continued of the strong and opportunities, an becoming acquisitions value broadening on all has significantly This developing managing to our record and cultural emphasis, in the has gained in positioned continued approach an controlled efficiencies and generated orders and Allied enhancing That strategic expertise and scope interactions All and for of our culture. or growth first operational applications have And future. very positive we business said, and our Allied overall global improvements be Further, fostering leader becoming markets, growth to about equally prospects for shipments growth organic ingrained focus strategy. an for confident customers, that Our and motion implementation all begun in to we a of of growth. continued quarter are guiding that. of business to shift execute year sales. served remains We organic while XXXX. level this with of Tools, our culture. and robust integral increased a growth, of areas our enhanced solutions continuous feel are is pipeline our element of near-term our driving growth important of a in remains signs led Systematic successfully our has proposition will point opportunities the element able AST, we customer an us major traction, One

will to to supported consistent well. solid a acquisitions strategic continue ensure fit all are and our as by We in approach disciplined that are be economics

demonstrated in we our expand all profile and can further several years margin opportunities the our solution drive both Lastly, through to our have utilization our we the improvement we over long-term continue aspects time, goals believe of Over we of are through AST last and organic rate acquisitions growth continuous as enhance multi-technology expansion. of business.

the to we the of to one back like turn you before about emphasize we've statements made start Now guidance. the we maybe operator it little to first have don't how questions, would the a I further -- strong mentioned our our and we over give and as had we clarify call ask quarter. here quarter a we that to know, any first bit Largely,

at the that talked fourth the that did right Coming tell has up conference to may market later and can year we several have adjust seen the as we quarter. in the have hit. And the concern start overheated, also I when mentioned lead the would the about some in seen here, in you seen was some away. November, can year. perspective that that, right during in our what to But materials, increased but occurring. that quarter times to Given it, very extended few they was adjustments until as right that in and dip does here the and I turned December, in take order year haven't any tell you of that give least far calls, around we levels for to close. through strong the chutes feel first we a a is on going we going occur weeks I'm that's about quarter as you we

for turn will I operator, now over you questions. it to So

Operator

[Operator Instructions].

Palm Greg Craig-Hallum with the of question first comes from Our line Capital Group.

Gregory Palm

I'd based green last Lots the first, like to just achievements those comments, really congrats be couple you again. just say want to year. stock accomplishments. congratulating to of guys by in on Dick. on guess, of, I I the proud start went minutes and incredible Interesting,

the our from color actual revenue just quarter, largest the in there. pullback suggest sharp added firstly, they contribution based on pretty specifically the I appreciate and vehicle, in math, a on guess, results So consumers. your

to that of there. I an wanted your was issue, this So more inventory assume just thoughts but get

Richard Warzala

Greg. Yes,

coming I that chutes, of in correct. made And think occur year. the made, saw say, we that was are picking apparent in comments was levels there I'll of a I -- us. behind you was adjustment the previous at and so well, again, what the the up over significant it area, adjustment that And business it's did at, right above first year, was and

Gregory Palm

confidence Maybe Got across board? it. is exactly on segment? seeing Or specifically you that it QX, what bit on And a in color specific there. terms rebound a of are more you mean your in the little

Richard Warzala

Pretty much here. much, discuss across think that the that about much major half that one we some seeing in pretty But segment again, across impact are we board. pretty There the -- the was but impact board. did -- growth pretty I in or organic of

Gregory Palm

of really that a phenomenon. Good quarter near stuff. kind that it one was just implies Obviously, term,

So gears a I bit to TCI. little guess, shifting

what basis, growth growth I rate really incredible. jumped think stand-alone filing me it there. the mean, math implies out in which recent a is is XX% I my at if accurate, was on like something the really

So I kind what color that just It some what taking imply wanted going drove guess, specifically. I get But around international, business that? growth there's more business? would of that Anything mean, like business, sounds that this potential a onetime is. there? double-digit is expectations more of your for And expectations are there to which forward.

Richard Warzala

element and free, wants they start, jump Mike are the to and with you and fairly did growth that's on the see it, TCI product. material of saw, equipment, their that a -- Sure. industrials et handling factories they for this strong pretty feel too. Mike. important going -- strong for business, for they I'll is vehicles, in And important cetera, say But the CapEx, But that to that a And see additional and was in they also in oil if that for are XXXX. demand you to there automation I'd their gas element. have add business an

area saw some an we improvement. also was that that So

business. assist of business one the they're U.S.-based some they international And that leverage international to primarily more business. footprint saw developing we North Allied correct, XXX% are or a American-based exciting of the are to a You the the business was in elements globally But business. opportunity

industrial see So today, technology less quality demand products power based level look and level on and design I at to the we quality of and the also level. at we're course, requirements we -- the harmonics higher better going device that and know on think regulatory are we and at of -- factory -- and even we and, working

people, market. From well I'd just lines So we expanding excited just take company, it potential anything again do team -- are are bringing underlying Very this an they run. technology have core And fine And to on again, great because we we quite the technology/know-how. about opportunity excited with is our like to a up about Mike, welcome absolutely standpoint, of could them bring. the to... you them board.

Gregory Palm

-- correct? reading the ahead? opportunities to a and like looking that seems growth mean, assume here right though, business am I all going It with safe least at forward, as at I you

Richard Warzala

Yes. started think that take will markets less vulnerable will time, Well, little they have already and oil it hard that are progress. bit to working expanding we their made of we on them or you that been market, markets, continue they'd they make and gas I So to in but hard working as say have significant expand to okay? a cyclical a

they're price, or together, they will And any -- And in in gas making good think in that. help and diversifying progress I the oil and you hand, on subject the still the for gas think example. we other markets jerkiness very oil but that can be So I business. to the see

Gregory Palm

details million X a like so know combined put what to like. in in something $XX ended X-K, back going basis, I did on X% looks And September understood. margin. months forma the you income, operating pro company $XXX operating Yes, million revenue, good some that And

figure scenario? figure it kind of that are. to want obviously, just forward, significantly guidance. I know is with the what don't a what you combined my if X% give XXXX math higher. I out I'm your And base lining is company, is point starting look a we that for margin case to call sure make up maybe will expectations for figure As be sales good trying operating

Richard Warzala

mention that I it's you annualized basis -- of think the fair the just mentioned in well I significant look great on did the Mike I And in combined presentation materials to AST forma say the -- implementation area. mean, company we adds, made experts, a we've to global I high to Yes. would procurement you briefly that and we talked adds. the expanded again, on that, part here it I also AST capabilities And how a I including AST. would as areas of lean mean, an we have quality improve and technical about did give capabilities believe And about pro information the our assume. many and as basis. as adds technical level. that his a our discussed enhancing detail engineering also and I and through

to streamline added really that next things to a some and key here our basis growth reactive we've So for than strategic a rather allow of us foundation level more us basis. on and resources that position manage

So cannot the in for and that enough we will significant adds XXXX. stress incurred we've cost already XXXX into we have leveraging our begin of that are structure I

Gregory Palm

the that you expecting acquisition any it's maybe more operational efficiencies And of synergies table? can bring to with specific you or kind the are

Richard Warzala

Yes.

opportunity I footprint. think as to I some mentioned, operating have an from the certainly leverage, synergies, the we standpoint Allied and

some see we So do opportunities there.

and these the do looked But without have, when that companies channel combined we means as And we distribution valuing look done when the acquisition you the basis. as -- see they synergies footprint at well manufacturing are at we stand-alone accessing on way also was acquisitions Greg, know, this the bring on a -- stand-alone synergies a the We are synergies that we basis at capabilities. that model itself. look

will core do add And necessary call steel initiatives and that again. and in -- so supported so is we I a mean, purchasing is continuation smart sure. the So more of the by also same, leverage to They already I significant they making given forth, of I'll some wire us be similar, it. And company, think technology and for the we think laminations, volume good is allow automation, strides that. our will the were strategic

So answers your I question. hope that

Operator

[Operator Instructions].

the Our line Dick comes Dougherty Company. next from with & of question Ryan

Richard Ryan

Dick, you the robust experienced levels kicked said going off QX bit patterns. mentioned, you you're little in you earlier release, and order to in to XXXX. news a of addressed this, But return

assuming Just that's TCI, I'm AMOT the ex clarification, Maval kind of that's but business. core and

Richard Warzala

Yes, at Correct. will I clarify with direct was top good growth question. of comparison The to ex on versus looking for first Yes, our 'XX. XXXX growth organic is that, quarter-over-quarter quarter a the TCI that. be TCI, of and

Richard Ryan

Yes.

Okay, there great. involved integration but any, of given you you that adjacent there covered in the the like that with structures is the areas kind opportunities the incorporating of -- kind been TCI. are into sounds haven't certainly of what, AMOT organizational umbrella if And past? But them underneath

Richard Warzala

I have itself tell to here. looking additional in and the they've team. market. has to excellent when But future really and the operating that that vice occurring both not power develop why you today, about unique help acquisition opportunity stand-alone future and what control are trend practices team the capabilities Having teams an I in that of be leverage a the adopted at electronic standpoint, fairly but is at how for business X electronics. currently our I business frankly, Quite was basis in look the And it we'll Allied from versa. we And the trend side quality and We'll that there's the the an in lot at harmonic There's an solution integration TCI, there the this mitigation. us can things to other look motion a with done. team our see a think exciting regulation within at be units that and that's distortion is can that certainly is is

Allied -- the year, we We in AST day of felt internationally. team some about we enhanced the I with of have the think about from I being part good say, talking together, have improvements. their will Wisconsin team. hard to we'll to to see leverage this think strong acquisition, with the from we past about of capabilities Germantown, good and day they We've business work the I And that. do what have started Also, and I first part meeting the could a excitement expand a them Allied, becoming very their and resources a

right are -- out it's the issues so of minimal. integration the think one of that I it's chutes, far, acquisitions So those

Richard Ryan

Okay, great.

are you there open regulatory strategy if will it Europe different in regulations Or So go-to-market there? with going be help their a that solutions? requirements doors aren't to is the

Richard Warzala

value Well, But objectives now quality. not chose we to to more strategic regulations the us. for opportunities markets we could look I working some are those right we're here just at And in on add that and to around discuss because more those they're markets them. regulations we think we are in -- the Europe, as U.S. seeing good our And not view have we certain emerging

let those, But markets regulatory me some chance terms are not in. emerging again, is America win say would give us safety And the the the looking more. and requirements that acquisition process to technology to the at we of be So that's the this part in regulatory around better requirements. leader, you And we see it then North world. follows. and and more Europe and seems of unusual see thought

And state, forth, for increase. so course, to of with state that power feel It's to going community. going Asia, need only and And clean decrease. we not sometimes, by the community too, by it's it's

Operator

Partners. GX comes of with the next Goldberg Investment Josh Our from line question

Josh Goldberg

has you've in the the regular it's orders about, them the X.X. these you the And back through of -- adjustment well in and done your quarter as obviously, the automation as really of then a on inventory going I a, of I secular last Clearly, new fulfilling questions customers really needs, customers factory catapulted trends. months working more some this think I great. everything of is XX just change guess, industrial customer real in not that couple that industrial just bounce into here, but with -- modular the and fourth product had they're a mind, my business which character. is Meaning

how growth X% the some one that the year-over-year new sort there go As are you growing investors, way in or XX% than guys you huge to think of organic show from strong be some in close And long-term are when you're hood. the of And GDP nervous a was very might not is you people or underneath X% just online confident are that in albeit maybe growth is faster plus. some long-term that inventory that X% to and growth? quarter, investors why reason sectors, the think yet, I I more down

So I from you on just to wanted are thoughts your what hear that.

Richard Warzala

in the there's go And Smart -- people Josh. don't industrials you, they're you many, is us volume and you'd you're the in if smart with that one jump are and a that to about, think you actually automation is out applied. driven in the everywhere, interpret that about to if shortage Thank talking we continues what -- there costs opportunity many, since being But down expanding. settle for I understand is Okay. I showing have macro applied places. don't questions the many if that. hesitate we automation more trends the up, are I -- being of think And and being that we to agree

an said resources. capabilities to We'll of of it We've combination markets. that's mentioned, that, year. say being specialists. do software through engineering And it's company key And that in before years added in Motion at selected We've XXX% market been technologies. should because engineering past and I especially added just no look It's added, agree and the software, at electronics probably, our we ago, the call of support and a as area. include especially this market marketing/technical look electronics a efforts I talents, we've as specialists. So integrated you in couple exciting motor longer and a capabilities. we our it have solutions that the and adding as Allied I'll we We've multiple

is is And been piece. electronics So our integrated that Gearing an really has an focus. piece. integrated

of sort about is integrated value So think And with proposition electronics. sold within cultural the to the our product it's shift continually XX% a we being very important, some of bring. company

of we in position it Now additional us us fairly expand of service kind that gives core course, But think markets. a to to business. off those puts unique opportunities, the

us question we markets so have a for lot We also And and opportunity in of Vehicle it well, trend And defects. electrification the that at markets for the a, take a is us? critical critical those why the just with it business, a us. a again to X seeing that to automation your customers them power And announced add well to The and applications the advantage. a solutions take gives servicing give about capabilities become competitive it areas, -- more is solutions adjacent specifically us those automotive. well that more but standpoint, platform solutions core very the we of in there, us can there. apply tailoring is look all of same -- in quality cost-competitive our demand important yes, really It that that's solution that's adding may but we core we're building we're things and TCI lower-margin occurring us allows geez, This it's a there, so automotive wins from markets, off mass. gives plays a base for electric, we markets, now. we're solutions as part as and gives that been and the And some for can tailor unique -- it certainly now a reason us -- providing

I your forth, our And That market that part it's strategy of level the the feel growth to always we than we and hope the our faster that looking whether and market. the you grow about question. growth been we're So know so double is normal within of part can I answered industry. strategy, organic asked rates

Josh Goldberg

Just building on that.

understand growth. I you described when fourth is not fair quarter pleased at obviously, X% with So to say -- that activity, you the robust were -- it

it was So -- inventory -- over quarter. want Motion but and not the would the about guidance, other had don't the on you're back gives was And type that, here I comfort things in the strong growth this seeing question your that new me to of awards. I commentary would give you a $XX that up typical know fact Allied went signal that $XX I almost million to how guess, first seem came that quarter. vehicle us that million

just half to at given haven't year. recognize really us the this in You point? on this than I how us you much color this going they're they're conservative are second of rather any hit when that And to think have going color much people year. for Do on

Richard Warzala

be some provide Sure. answers. happy to I'll

extend reminder, as So And say, out would the these I multiple I contracts. end. They years. aren't over because, these also all a think are these that's good -- long-term a point

several we're Our that we And development, are expectations others have for that focused. we are on. market really focused that

pick the go ones and will we after We But we it we'll we -- pick hard. once want will after. and choose, choose that go to

we making we're in more are so also satisfy investments it. XXXX. start that begin go anticipation through into of about well some exciting think and more. is would these see ability they'll contracts you'll for that, I very going the 'XX, attract And ramp all into as of what's that's shipping small the to But future late at saying XXXX, even that -- to start to as of production XXXX So -- levels, to and

So it's a ramp. slow

installed, we're but are that test tested and and So certification much on Lines preproduction so are too initial and being year. delivered is light track build we've units, equipment are it I already signs moving. into all so offered of this production and validation, wouldn't forth, we're levels and being there

Operator

to Warzala session. gentlemen, and any that final for the floor turn Mr. I'll our question-and-answer Ladies concludes comments. back

Richard Warzala

any fair had was of you to would very give you, see about that as we're it fourth late And November, saying We been And I smiling to an and concerns was color was hit. And we turned right guidance, adjustment. that here around. it like it know you just have did to -- say wouldn't to little in not And really it year. Thank did a and going in happen very has quarter, We I'll we've you been all important given the feel past. around. operator. say the kind were away to in knew turning again, say, inventory because careful it impact did thank And but it guidance saw questions. we it the the it. I just we going It's for you

weren't made had concerned if did we and And very obviously see internally, different about share our now. with would So in and But have some was greater concern adjustments. think -- quarter I we a would we it. far fair. then it we so continue, only so down it's right say, that the you, some But expect future. information We're don't the we did in concern

So your be to be today's is us call the you just who Point, Dana Roth And interest of XX, are will those we for March safe. you on and in which attending joining thank California upcoming conference in interested, Anyways, week. Allied. but on next for Tuesday,

out As any always, we day. to to after with again for please quarter have free look feel talking time, forward to us and your reach you first thank Again, at participation, all you great and our a results.

Operator

today's concludes This teleconference. you. Thank

for at your this disconnect participation. you time. your Thank lines You may

Allient (ALNT) 14 Mar 192018 Q4 Earnings call transcript