CPS Technologies (CPSH) 31 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Ralph Norwood	CFO
Tom Breen	SVP, Sales and Marketing
Grant Bennett	CEO
Walter Schenker	MAZ Capital Advisors
Warren Silver	Wells Fargo
Lenny Dunn	Mutual Trust Company
Greg Weaver	Invicta Capital

Call transcript

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Operator

Good afternoon. My name is Bernard and I will be your operator today. At this time, I would like to welcome everyone to the CPS Technologies Corporation’s Third Quarter 2018 Investor Conference Call. [Operator Instructions] Thank you. Mr. Norwood. Ralph

your begin conference. may You

Ralph Norwood

and you, good joined President to CEO. Marketing; I’m and today’s Thank for call and Vice afternoon on Senior by everyone. Our our operator, Tom Bennett, Grant Sales Breen,

of meaning should as operations uncertainties environment. Before conditions, considered Litigation strictly and actual that like point differ statements from exist factors. historical statements These economic would results many XXXX in are to the cause we call, materially conference Reform competitive those be subject call include you factors the and all in and to begin forward-looking market of out business in could to the of statement. the Such that Securities any I of CPS’ this demands, uncertainties to Act the forward-looking that Private portion are within not

to the on turn would the I for call the results perspective Now, to quarter. third over offer his Grant

Grant Bennett

joining Thank and Ralph welcome you, for Thank this of to you. Halloween. you us all on

We’re European cases responsibility embarked ago, baseplate. This $X.X the of tow-year million very of for a many highest plated assuming million, in most XX% a the Company baseplates quarterly of year quarter the versus of third modules. aggressive Revenues represent an modules. year. voltage in founded. to year increase to we a high increase of case revenues power versus rather of in of and some These XX% agreements, XXXX providing strategy in pricing, product on largest quarter our become baseplates quarter and revenues an families the unplated was $X.X a second ago increase quarter, large report for the increased dominant the in this since customer, same pleased strategy sourcing revenues A the nickel for for power involved than the in player was

share up gained revenues of As and we’ve sharply. a these actions, were market result

market of share, growth growing. in is gains the to some the the result itself market the addition In of

our of believe market below behind These and some are levels will in also Forecast We parts growth our remain This by But in and our dynamics, accounts improving. completed revenues. demand world achieve second recent strategic of remainder we markets in the we plan. continued the immediate market past. strategy incurred their margins and had It working some XXXX. in operations. number of receivable. in our has expected, for and XXXX strong some growth This in believe, reducing investment competitive of assessing resulted costs potential hiring update is this a impact increased manufacturing five-year in now involved Earlier inefficiencies the recently to has major increasing customers process suggest for had the and significant is also, the what current declined as capital, in condition, temporary the particular nonrecurring that year, paths us. associated and in with identifying growth employees and prices Due and training and we to throughout of are sustainable share. market the

the that period. actions lead confident rates margins during increasing growth flowed process planning from compounded the to We’re will double-digit which have and this five-year

in the hired Coast that we is West on who stationed to One the elements contractors. excellent reported a progress in more end, to of And salesman is contractors. Los We’ve in that May the made senior area in area. Angeles penetrate defense plan deeply we very U.S. defense that focusing

Defining a this out back of that we With or a Ralph business the nine done year business time three a an whom element never turn is summary, new was To key detail. have customer is results that have generated with existing new before. months through first in of let in a business, of quarter more the me to on we quotations flavor you whom new of to plan Another one our customer. give we comment done let our Armor. emphasis me with review new division the customer to company a third not of financial either every the

Ralph Norwood

the at course current large in totaled every to that This increasing with in compared to up cost you, about of were same Recognize key this Thank customers. quarter Selling, XX% XX% we $X.XX of This add reflects earned revenues the X% the success This Gross last XX%. which totaled business share $X.X revenue. of the been amounted year. from for Revenues additional first $XXX,XXX for Grant. quarter revenues. due of sale the quarter increases, European of has administrative dollar our customers. to quarter, for our capture baseplates strategy million. an third prices, successive XX% the was of second quarter revenue quarter for to our general and the the quarter Even margin with compares and the in year. up for part

in of Act. the The gain result line Difficulty] for we down on used was the note, equipment. This last commissions effective operating to And not $XXX,XXX third $XX,XXX, fact XX%, revenue So, that surprising. last [Technical rate XX% was with income of quarter an compares sale of in which associated credit other loss will was this half the the profit of of this to reflected is in quarter as increase. Company with borrowed. earned market we And the the The operating Jobs the sales associated with you of a increase swing the nearly that increase year due from of incurred due the $XX,XXX. an tax a recorded also borrowing $XX,XXX year,

the our to the credit quarter We with borrowings sheet. ended of of $XX,XXX balance Turning on of cash $XXX,XXX. and line

the because with $XXX,XXX. quarter, by in the primarily revenues. our was second in Although borrowings the unchanged increase balance receivables cash remained from This of declined associated increase

quarter, trends. with DSOs, the end at receivables day of sales which consistent XX the of representing Our totaled historical outstanding, million is $X.X

was the compared end expenditures of $XX,XXX amount. Our capital the with equipment quarter plant, down and depreciation as second exceeded by this property

deferred million of and $XX will taxes ended to of Finally, us asset income. with million $XX next September which pretax paying million taxes on the the on from side. asset $X.X We shield

Turning flat to the totals ratio long-term had we’re the of Payables quarter. current the with and the which totaled and side. the At time, At this liabilities. operator, of X.X, questions. of is end ready at quarter, accruals liability we the $X.X no third first same million, and almost end at take some was the our the quarter second to end

Operator

[Operator Instructions] me. Excuse

from a question Schenker. We have Walter

open. now is line Your

Walter Schenker

cut made greater Of to soon pretty business, you produce. a Good of of competitive What number is a what or a reaction course, so is to afternoon. effectively, price price there cutting share the Having baseplate are slope. sometimes competitors this? of some who that buy reaction, sort about the have Have decision to produce you materially can slippery too to tell? limited far you seen

Grant Bennett

prices lots fundamentally, dissect and decline. I’m indicate fact opinion, I’m the we is anxious anxious prices are that of evidence -- a are competitive in that stabilizing believe that are But, -- way. price we that to dynamics the positive they a war not just there in in But, more the in that we and contracts, but our most here. some really very did recent can opposite, in there’s

short, slippery slope. believe a we’re So, we don’t in on

Walter Schenker

have currency? cut I worked do against price to your actually thought would much would’ve Because you. or somewhat that And anything with to have ability

Ralph Norwood

dollar particular really No, the competitors the case. the that’s no is factor. been think yen the we really it’s Since is frame, And currency people time and yen, was this the an don’t But euro, relationship in interestingly, currency issue. relative it’s think, not to

Walter Schenker

thing. Okay. One other

You have many previously, you you period largely litigation. now or Japan, talked What in your for in situation lengthy behind of Asian you. what success the and about having years, increasing That’s in markets? sales competitive a are

Grant Bennett

this is me speaking. Let Grant --

sustainable was the with very of no link previous were -- some just me where dynamics some there essentially that Let the case, now that And say kept longer that’s we that return basis. and competitive out interesting playing on question that Japan. question the other a factor returned is just level want comment worldwide to a I to competition helping to level In more a another much that’s prices to more field. which has words,

we suppliers at every the been you of in things almost shipping price one modules our if prototypes Japan. progressing although qualification in list Japan, faster week, hope of IGBT several have as as we, players. are We would major move customers, this to And recently those

anything wish most cases, us serial there’s are can production. on not are that, in players, But, absolutely But opposed it acceptance in to products dependent upon how So, that means fast on making say Tom? sales qualifying and parts qualifying existing new in as major say, faster. I currently products. new qualified. us progress more all simply growth the about And be you our in Do being product there to they we’re anything short, the marketplace. I with want that will were gains their

Tom Breen

Just to European some is is a accounts thing our Japan existing one portfolio that we noticing pursuing, one is key little in all reiterate the different bit the business there that I it for activity think of them. been customer. risk have we’re of of And than with target every in comparatively is

Europe remain we are viable willingness production Asia-Pacific products, So, that seeing of for for ongoing having to weigh versus are part of in new through that do their to board end we as the in in second bullish into and us they on bringing we a source Japan major reliable, a XXXX. presently. options risk more will for Japan But, particular than production growth area the in existing be seeing general XXXX

Walter Schenker

million the given we progress increased the so And toward quarter $X you’re multiyear in of a base? differently, that Stated should sort quarter, expect million lastly, that brush share new new $X is as was broad isn’t… normal the some making sort and a very contracts in unusual and other the something there market of customers,

Ralph Norwood

with think XXXX, you is not unusual. we believe XXXX. into will expect that give this that But, Walter, the is And business guidance. as And I we year strong; look a customers, specific don’t we cases in we know, we strong as comfortable noticeably are be all above in quarter. saying our fourth No,

Operator

have Warren [Operator from Silver. Instructions] a question We

Your line is open.

Warren Silver

First the the plating nickel-based had that like question concerning ask plating of is, adjudication there we litigation year? last would any I to is

Grant Bennett

we of number that plated certain relating in the with answer financial very statements. And investigating on was way. to resolved they’ve have claim not and this satisfactorily This we’re be impact very customer. our will any customer the through to that and claim customer a will positive on and vendor this insurance shipped a And made provider were a our our good is parts insurance progress that constructive -- data, plating confident collecting the our is twice short from

Warren Silver

Santander Banco growth the And line, that constrained please? last of seems of credit thing, you Ralph utilized that by that we have on It is sales. our that, Would to $X,XXX,XXX. I working mentioned capital being comment lack believe $XXX,XXX was expand the

Ralph Norwood

Yes. on I’ll it. comment

to We let are for a credit not the line going sales limit growing. opportunity

You’re right.

end in we are over added have we quarter, modest We with talking receivables And our in beginning banks, $XXX,XXX. of $X million very the inventory capital year fact, growth of discussions. payables. positive of in borrowed But, with form the third the and working a forward, until from the to going

sales midyear within expect our We over don’t weeks. of is that through the of think we done this line going have couple until the expect XXXX. we but to next it’s growth. have signed, extended It’s to And not to current limit the end

Operator

Mutual from Next Company. Dunn question is from Lenny Trust

Your line is open.

Lenny Dunn

of I ago. last the asked tie questions couple months from I three a of serious could up lessons

next mentioned been have from we will that you? announcements your more had limited. Is announcements months but hear have the still few expected more in expectation to that You you they

Tom Breen

Due to events, there or philosophy release activities Our and to of with not is significant which only we to to hold allowed is relationships to type not comment customers, substitute aren’t say we’re our provide on. But, information. going. that proprietary newsworthy are on press not going make announce on that back

this Board is for at time we of with we on the existing can of cadence what both appropriate the be the substantive think share and types the relationships that But, for looking that we we’re internally our those customers. have at cadence proper amount releases. We’re information outside of would that evaluating with and constantly the

Lenny Dunn

more ago with expectation announcements there was did got answer which three you you’d Yes. be that more substantive that months That happy because meant me maybe you clearly me indicate the your have announcements. that would gave but

guess, the the I time. I’m second So, asking same question

Grant Bennett

other This appreciate is feedback speaking. that Grant and us. We the you investors our give

preserving that suggestions some just even And increase about we press the enough investors confidentiality let made kinds of me reiterate releases number while like to of talking kind would announcements. to the that customers have could And been send be of require.

substantial. announce, to indicated, We’re frequently be word could I use that important able things Tom as skill, only going that are comment trying to more quite if projects. being to to we’re gain on candid, But of

is So, the here, that trying that line working all we’re course, on and it’s substantive walk it’s of we’re that to of it. desire And making again, in accurate. sure cases

Lenny Dunn

desire I to I become IR no have guy. understand. And your

doing I doing that take indicated that purpose are referring the what Wall I this fall things But, you to don’t not mentioned call. exactly would notes the the there But, that you’re last that’s the of think. had second thing when So, call, to I’m you from what have memory, and I showing you could -- this believe Street. start you on on And asked.

-- do you there set conferences have up now? So, is

Ralph Norwood

it in ago, first investor I chance, quite call, with we the we’ll Sidoti conference. in a similar group. to be it’s you we We haven’t did there Tom good Sidoti the going the to first we Grant the impressed we travel as years what because on in that fall. quite decided were to conference the Asia, more is of think That to were due And participated in say some a We not considering there. it. be European pass if Sidoti and than that. and say is found will committed, and And helpful. quarter, I actually it likely but participate next we last The was and the quarter few recall considering Sidoti we Frankly we in are in

Lenny Dunn

that they for a to pay I don’t pay Sidoti is you legitimate can’t assuming everybody’s conference and is you the too go all good. want But, of where things, you want go conferences to many to these fee do food. ones

not regular basis. saying you interest I’m are that conferences do. there in that So, legitimate But on a go

Ralph Norwood

it I’m singing you. might the say be We’ve companies associated sophisticated to, you because had you interesting to because cost fee conferences investors you could this, go careful you associated get you It’s of say don’t be kinds want Lenny, along but with. just with with which not

might you I we you So, to give thoughts conferences jingle mind offline, in a that some have consider. should of get

Lenny Dunn

Okay.

You number? still my phone have

Ralph Norwood

I do. know I Milwaukee. where in your is home

Lenny Dunn

afraid and to we a it’s volume I we it And dried also. Street. under But, didn’t hide moved kept be But, big it chunk and we’re up best desk. a stock on investors. the little, has don’t secret started the we been. holding up Okay. long-term bought and move mean, back where up to drifted of I and I the peak we’re the want Wall won’t that’s has we I’m

large one the So, selling that threw from I fairly in that it looked have just saw you me it the or two towel. in investors to that

they who of asking not who I’m were? aware are So, they you but were,

Ralph Norwood

be probably a a have surprised significant order block say, or shares. get And I’d went compare couple We to notes. We have, we a No. XXX,XXX magnitude, of that let’s south. that just list that a dozen more investors year of a those about times had

three have that X%. know than we changed. more You have haven’t that three Those

So…

Lenny Dunn

indication, it more [Ph] a hundred name. thousand My one all account. it’s but one person’s into couple not We than goes have shares, in of

Ralph Norwood

aware could your It to not we’re answer of question. be any, --

Lenny Dunn

they that by hadn’t, would I will they it and Yes. believe a time. we frankly can I it’s now, little we’re disappointed But, but have that you. We thought eventually long any, didn’t eventually tell sell woken and

but to can So, people own… so when appreciate -- up, go go we’d we we up it they smile it like don’t sell, I want so

Ralph Norwood

you of offline. call give those thoughts a on Sure. some We’ll

Lenny Dunn

beyond any which definite conference, legitimate plans a -- but Sidoti the place doesn’t they you then, And which conference, is months because don’t three take by just it… have Okay. had

Ralph Norwood

quarter seems That’s and a the are right. first in like number second fair quarter. It there some in the

So, one two the I’m possibly do year. confident and next quite we’ll half in first

Lenny Dunn

And… can too Again, do think if you don’t I are many. they legitimate,

Ralph Norwood

balancing a It’s act.

We’re out ROTH, and It’s go week schedule you the almost time for to in take your and we week. a you’re every CEO a a talking that’s small big of investment you CFO and a if time. out go -- company time

So…

Lenny Dunn

have are is, see have I people with for a as And and nothing problem ROTH guys investment don’t to generally I going The banking. Yes. that. want they that be to against you candidate ROTH doing [ph]

ideal an not conference. that’s So,

Ralph Norwood

mentioned I Right. commitment, of just them in the terms time but…

Lenny Dunn

now. There’s one in to somebody’s need conferences, black frankly are quarter, but And that to early in small I other that number I be. be takes microcap would that as I on whether cap the with certainly be be indicate of thing then, and radar place usually problem. rate, by There’s you we in next going you is, should little in or characterize, Florida would January. And of the we a the million the we part black disappointed because run the thought in but know $X can’t the legitimate

Ralph Norwood

give you and Listen, call we’ll chat. I’ll

Operator

from question Sledback Next is [ph]. Randall

Your open. line is

Unidentified Analyst

going the how Could us with an China update you traction market, especially things on rail? are give

Grant Bennett

Sure.

Tom as in are grid, growing. and there not comment number And of time, the caused that either we occasional Brexit total, we’re market. a market in or expand market pleased the very growing. look shocks, for back are worldwide in get that Europe going segment. I’ll But, me market The as And are to and module kind are Modules of players to seeking back electrical in in the is is seize Brexit, time but really in while. there power that the the Let increasingly used turbines, even and well. comment trains The market market in is wind all and the then are they have high-end though the itself traction just if well. used of

for to looking any product And targeted many their we’re and China. right those China, well Cree them the tariffs affecting that’s had other And with political [ph] just to we’re good in that through last means. here customer We in as in ago that die of with actively slapped silicon others. In that for climate but they’re is on carbide Wolfspeed really certainly And want we’ve go market. U.S. the involved hope completing going very on division, into progress our current at For example, China process comment, the as qualification us, traction weeks the clearest the customers. our manifestation XX% in real in away, just the retaliatory what tariffs Do aspects And become a market? issue of our Tom, an targeted two weeks. now cost discussion that them issue. says added XX% understand two you

Tom Breen

Sure.

of quarters sort think announcements, one are in announcement value, traction, markets, of tying not multiyear. quantity excuse that upside of exercising back already prior have the only on of contracts. met announcements orders those we -- comments to last the and But in built some me. several new and customers into those substantive contracts haven’t couple made dollar But growth half about the these particularly potential in those of Lenny’s are in I that’s the second

additional early addition into grow in seeing indicate discussions their uptick, customers with that the a rate, So, to and represents to renewal that in and these consistently continuing also board, are healthy heading several very us they XXXX. for of at XXXX which businesses growth key across

transition want qualification production XXXX, of reality, see are fruition. options, a with on and said, revenue As a bump. see particular exempted. for But, units country come customers that And we that relates if from that make is material to this can working qualification, China, In find successful our to unfortunate. of component way short-term in ways which that was our investigating speed as keep major early that is a and are We those we’re growth. it we our to part plan. sure to Grant in political there process There if to be is can a was not Hopefully, track. to try that be in to China

Unidentified Analyst

Great.

Transport How trends in, of production and the are does got sort Massachusetts Bay got related producing And since has that Authority like rail I a play be to guess plans that some looks It U.S. capabilities U.S. the it? some all CRRC. from question. in in that’s

Ralph Norwood

$X subway initially been take CRRC And since cars the me for baseplates, years on been was expanded a to been a Let Commonwealth time. knew that modules, company that China that in was large this consume quite Commonwealth cars. When the a be The business doing announced because with happy CPS you with has on, billion. in company sure with ago, the if although that some do going they numbers few called contract And subway to cars so this supply to $XXX delivered are have wanted to keep that we far. It’s Commonwealth. realized want to good contract with this we million. has of CRRC is don’t business almost the

So, base expand we trains, But, subway time with making and the we’re it’s provided meet our flag are we consume friends taking our said, assembly the and high-speed a to subway representatives. of of going U.S. a letter on them. we waive in plant locomotive of unlike baseplates, cars that front Springfield that in Commonwealth meetings to their cars, and home of by in to the them be that, has The and the sure advantage that CRRC China. every great number have going I MBTA to been themselves a the Chairman state with that helpful as in in we train. they a have made kind talked behalf of fact We not who supported with

Operator

Your Weaver. question is next Greg from

Your line open. is now

Greg Weaver

point, your was XXX. gross profit sequentially, Last up through dollar on is XXX,XXX I profit gross you dollar here. what it the job quarter, and revenue you are And asked Ralph, flow margin Nice about incremental was. XX%, the to up

sustainable continue the we that’s increase, another, see Do we’ll should through? good. $XXX,XXX that whatever, you revenue very or see to kind So, flow same think of

Ralph Norwood

Yes.

Greg Weaver

Okay.

Ralph Norwood

to we pretty -- would of had million, point it the where a function you but a that will in XX%. another if close to be There next terms have come $X step

Greg Weaver

And when your And that’s going be, the that’s scenario. [Indiscernible] we need going revenue a of cash profitability a why good are think color there that in needs is function of growth? excellent. some any you cash consumption, terms because Okay, to of --

Ralph Norwood

up increase increase a -- for the in revenue use because we it A be we But, big will the be red. is of we the working of function we’ll But, part be sales, when capital. growth of extra if because working not in by black, will to it now, were some that paid sets margin will capital.

So, I’m going from. can we now, happy time for -- to you have, Right to the banks banks you get from as positive. a EBITDA past CFO, get positive the several And were and wherever imagine those need EBITDA sales continue be we whether up, to make expect we’ll it it’s first or the get funding, we those in quarters. prices sure up this to have quarter, forward,

Greg Weaver

you the kind got And broadly? capacity or there receivables here have of -- how feature is how some bank big, an that’s off your much accordion running

Ralph Norwood

based have formula the potential And the on be is at the line $X.X million, about The we although is million. to of current the quarter, receivables. end only $X

But, extra business, economic which is So, of a because well-known. don’t side there’s really extended, the line help. until on bit an important isn’t me expand receivables this our those let

built and a specific our receivables blueprint. purchase Our -- inventory to is order

six-weeks becoming the down receivable So, our are roughly to the on way road. a inventories

collateral leverage so cash. only have, they And our So, inventory, And not discussions point we on our make the with unlike shelf, sale way that with going it’s lenders. the on have to of receivable receivables our fact necessary, it’s the bank, a that to we we’re companies’ inventory. if the as future that have most but also they not to to

Greg Weaver

Right.

your cycle a weeks [Ph] time following it’s six WIP? So,

Ralph Norwood

Yes.

times six You can inventory see turn year. our a

So, fast. very

Greg Weaver

Thanks. Okay.

Ralph Norwood

if these at The a WIP filings. look of as you -- WIP in base plate SEC most plating. our without cases in our described Most is is

not the our -- but So, in has not is WIP done almost all sitting and not it’s is route the to it or been the has at in either occurred, almost customer warehouse. customer, the final step

Greg Weaver

hand… there key your client little of for time I plating increase a you then assume adding that bit your just cycle So out the a

Ralph Norwood

Yes, by about a month.

Greg Weaver

this of So, cash… that’s part

Ralph Norwood

Because leaves a we the here, in that here, or own when plater it; a the a the baseplate way that occurs. two, in takes it still That particular when The was on client plated, it. particular extra it client, it days on goes Today, still customer from inventory. Europe, Greg, plater a previously left week plane, baseplate sale to puts a it. its the plater, gets -- we still inventory then we for then And then, adds own our the finally XX own it to sale.

Greg Weaver

understand. I

Ralph Norwood

But competitive to come discussions. to and to in for us be when have relies there’s we customer sure us European that do, that that major to going work a that to is relationship, contract, gets that this. the The they that a strengthens that fact us bond so benefit up subtle plating expects and next done, the we now think to on that make helpful that used bond extra

Greg Weaver

there? do do want why problems, to aspect you the or issues or you of hassle And of yield plating get it, it was rid any

Ralph Norwood

Did No, Did didn’t I say rid of get rid get say it. I I… of it?

Greg Weaver

handle to wanted client it… The you No.

Ralph Norwood

a assume and and It’s to that have them. Yes. They used responsibility. of that do we now help care to that logistics to big take

Grant Bennett

It’s essentially with your rather prefer the Yes. just really broad suppliers reducing a to secondly, what’s deal to than high-performance And number the they as part this trend get of going they And product. on. one have product. custom final of two as company is then, of

Greg Weaver

been you’ve same before? dealing customers with But the it’s

Grant Bennett

Yes.

Greg Weaver

plater. The

silicon with but activity higher traction for traction if maybe are guess a generally areas on, moving around Okay. guys a general? where lot what’s you growth space EV of and you power the beginning color is been you or carbide, little us there And positioned like? I give just there in could just on opportunity of Grant, like for You’ve talked, you some the

Grant Bennett

Sure.

expansion the about a at We that provides material, matched into but carbide penetration need it And a temperature. silicon do. carbide thermal the silicon hotter increases die, performance, power power to module die business. And the coefficient are we run excited the is what for has of of which it much higher

-- tracking than may every with that who are engaged around user - we die making carbide tracking, be we’re So, the world. modules silicon more wherever

the a business that company doing Cree, that in here So, we’re Wolfspeed U.S. with. is

firm U.S. little call. Another Ixys. IXYS. Ixys fuse Littelfuse Excuse British we bought me, should recently -- firm a I go, There Ixys

Here International also Infineon. has Rectifier very in is been by U.S., GE active; the purchased which

all dealing those companies. of We’re with

be as explodes critical. -- to different the automotive many, cost where continue there On the it many be business side, no many, standards there is EV are many continues cost and environment to an ways, architectures, in

many cases aluminum carbide because in in cases do customers the that that, at hey with the other mismatch too believe aluminum or on And even could’ve CTE some cases And so, they when aluminum cost, went use costs. through we’ve some to baseplates total realize you are silicon and baseplates. they who means. whenever aluminum. seen cases where they have using silicon copper cases customers some was cost carbide in -- the move then that other been many to address But would’ve even expensive look copper lower And system t countervailing avoided

really significant large very some very we’re opportunity in is different of of us. number a confident meaningful, engaged think So, very, generate programs them we And we’re long-term for revenue. this that will and a

Operator

We question from David another have Birnie.

line now open. Your is

UnidentifiedAnalyst

and in the I’m terms to a better dismayed time about the comment down Company last when my doing regards a much really of say, than price, have in by I talking action action the the volume have right been couple I years. to guess comment in kind price caller He I of and a is really at previous stock recently. have was has question. they is,

I So, electric exposure to of Company question could oil now remedy really that be if prices. I business. is something update an the on about months now the seen We’ve the get you think needs. sort that My here can few in and last uptick hope that done car the in

as status any You to curious in comment And whether that business. electric the I’m lot you there read on a And growing about be an is? a to it what progress there of awful seems can cars. just newspapers or is

Grant Bennett

years customers the if for but days, or program at niche retroactive just those times we’ve believers we’ve But, we X, volume X, and the succeed to in at or them vehicles. the end firm are the asked shortly. program quotations vehicle high It we growing they’re last and we’ve make XX cases to looking electric to -- I is let to yet talked X and predict think several call will be do been their some high actually electric faster had are units that accelerating is words, are a believer, to a that, for rate that’s comment. Well, building they’re we volumes can market a going here in X relatively said X-year everyone we or Continental vehicle having anyway, the baseplates qualification analysis, quote samples very come is provider But of volumes the the a with not In an counting most customer the though, shipped planning. a who about can’t are Automotive, than stay that hybrid not. specialty that when we’ve firm on in we has. me that hybrid high coming for haven’t long the Today, into I I’m where to some -- to to other a us, year it only interesting providing fruition. term XXX,XXX XXX,XXX fairly rapidly.

So, we’re there.

And some that. fiscal some on these to are are Any going come not. comments of to and opportunities pass

Tom Breen

market of with working key and on silicon components looking in for with and into our that I I at applications U.S. it broadly key are for automotive applications all regions we product carbide will all guess of customers But, to I generally delivering entry working Asia Pacific well. Europe, are think that you space. and offer as touched the

our market And easy our consequently, don’t that with customers. sales central So, focus market cost it be an But is our competitive. at level increase in a key play it the set management, on to But king. always technology it’s on side unique the the automotive all industry we as the where in not But area bank advances dynamics projections. is silicon of and makes the it die project. requirements to of power for of us more will at heavily

Operator

time. continue. questions no are further this Please There at

Ralph Norwood

person Peoria Operator, would the Paso time? you investors wants in or another talk. more there’s poll that Usually one El to

chance more come to seconds, So, one forth. more another them just give XX

Operator

Randall sir. has question. Sledback a Yes, [ph]

Unidentified Analyst

trade you would in give I Question was Armor. color Any about what’s a there there can new And know show recently. be appreciated.

Tom Breen

Thank you, Randle.

So, HybridTech the are reaching that all performed the are indications Navy our U.S. after without and the the past about sea Armor sea issues. And a year conclusion. Armor generally, CPS flawlessly the trials we talked their at in

continued additional installation our their fourth to the deliver we the Navy During configuration. customer to quarter, preferred as finalizes panels

provides, initiative in some revenue production is Navy at that as there significant again funding progress we XXXX, And demand points in vehicles that but other continuing Armor prototype customers QX Armor, ground ballistic of for new cost remain beyond we and really samples unique navies and QX. capabilities the that U.S. application. feedback Naval well HybridTech potential fully mentioned. as funded a and as the presently of Navy, the progress, the you for begin our not echoed with week upon represents Navy. opportunity the that bullish forward is upon the a late as the last could the and based not the mimicked this and Navy leads by and vehicles, Naval the performance program are the towards are that and both have early international show Euronaval funded collected contacts provide for stream was integrators from exists we as if That record, Interestingly, existing or from that naval Paris vehicles the high-end do to this good looking it for geared believe both capabilities protection. broad U.S. revenue evaluation Armor CPS, for results weight combat by along just we and at Show manufacturers just Although additional today that And depending significant the in and production evidenced from end-user by we the orders naval

Operator

questions. further no are There

Grant Bennett

in in and visit; example. And are the to each Thank Rhode Providence or inviting for We we operator. you, done area that. who interest Island call. of a have that thanks each the appreciate Technologies. do come couple joining We to your we for again, Boston CPS as recently, And you quarter, of Randall appreciate you you

Halloween. to And say very indicated, you. good is expect we internally. for with significantly we we compared XXXX hope real be And XXXX. As can night certainly And we and a to value trajectory, it generate exciting to that, up think which we’ll we’re enjoy on us

Ralph Norwood

Go Red Sox.

Grant Bennett

That’s right.

Ralph Norwood

you, Warren. for That’s

Grant Bennett

much. very Thanks

Operator

gentleman, this and today’s call. concludes Ladies conference

You disconnect. may now

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